Notice of Special Meeting Upper Thompson Sanitation District
Public notice is hereby given that a special meeting of the Board of Directors of Upper Thompson Sanitation District, Larimer County, Colorado, will be held on Wednesday, the 12th day of October, 2022, at 4:00 p.m. This will be an in-person meeting with the option to join virtually either by telephone (conference call-in) or online via the Microsoft Teams platform. At this meeting the Board will receive the 2023 Proposed Budget.
This meeting is open to the public and will be conducted both in-person and virtually to facilitate attendance of the Board, UTSD staff, and the public. To join by telephone (conference call-in) or online through Microsoft Teams please email a request for the meeting link or telephone number to Ms. Gina Moore, Secretary to the Board/Budget Officer, at gina@utsd.org, by 2:00 p.m. on October 12, 2022.
Comments regarding these matters may be emailed to chris@utsd.org, delivered to the District's Administration office, or mailed to the District Manager at P.O. Box 568, Estes Park, Colorado 80517. Questions or requests for additional information may be directed to the District Manager at 970.586.4544.
Upper Thompson Sanitation District By: Gina Moore, Secretary to the Board
I hereby ce1tify that a copy of the foregoing Notice of Special Meeting was, posted at least twenty-four (24) hours prior to the meeting on the Upper Thompson Sanitation District website at www.utsd.org and at the District Administration Office at 2196 Mall Road, Estes Park, Colorado.
Upper Thompson Sanitation District By: Gina Moore, Secretary to the Board
Upper Thompson Sanitation District {District) prohibits discrimination against its customers, employees, and applicants for employment on the basis of disability, race, creed, color, religion, sex, sexual orientation, gender identity, gender expression, marital status, familial status, national origin, or ancestry, and in employment or in any program or activity conducted by the District. The District will make reasonable accommodations for qualified individuals with known disabilities. If any person has a disability and requires a reasonable accommodation to fully participate in this event, please contact District Manager, Mr. Chris Bieker, three days before the event via email at chris@utsd.org, or telephone at 970.586.4544, or dial 711 to connect with Relay Colorado.
Agenda
- Call to Order.
- Pledge of Allegiance.
- Roll Call, Absences Excused.
- Next Meeting Date - Regular Board Meeting, Tuesday, October 18, 2022.
- Agenda: Correction and Approval.
- Disclosure of Potential Conflicts of Interest.
- Public Forum: An opportunity for presentation by the public to provide information to the Board of Directors on any non-agenda item. Note: The Board cannot take any action on non-agenda items but may direct staff to include the item on a future agenda.
Public Comment on Agenda Items: Public comments will be heard by the Board at the conclusion of the presentation of the agenda item. Persons addressing the Board shall first be recognized by the District Manager or Board Chairman and may speak only one time per agenda item. Speakers shall state their name and address for the official minutes, address comments to the Board as a Body, and shall be allotted three (3) minutes for public comment. - Proposed 2023 Budget-presented by Mr. Bieker, Ms. Jurgens, and Ms. Moore.
- Adjournment.
Upper Thompson Sanitation District (District) prohibits discrimination against its customers, employees, and applicants for employment on the basis of disability, race, creed, color, religion, sex, sexual orientation, gender identity, gender expression, marital status, familial status, national origin, or ancestry, and in employment or in any program or activity conducted by the District. The District will make reasonable accommodations for qualified individuals ·with known disabilities. If any person has a disability and requires a reasonable accommodation to fully participate in this event, please contact District Manager, Mr. Chris Bieker, three days before the event via email at chris@utsd.org, or telephone at 970.586.4544, or dial 711 to connect with Relay Colorado.
Record of Proceedings
Call to Order
A special meeting of the Board of Directors of the Upper Thompson Sanitation District, Estes Park, Colorado, was called to order at 4:01 p.m. and held as shown above and in accordance with the applicable statutes of the State of Colorado with the following Directors present and acting:
Pledge of Allegiance
The Pledge of Allegiance was recited.
Attendance
Board of Directors:
Jack Reed, Chairman
Susan Doylen, Vice-Chairman/Secretary
Ronald I. Duell, Treasurer/ Assistant Secretary
*Kent Bosch, Assistant Secretary/Treasurer
Absent:
It was moved by Ms. Doylen and seconded by Mr. Duell to excuse the absence of Director Eshelman. Motion carried unanimously.
Staff:
Chris Bieker, District Manager
Suzanne Jurgens, Assistant District Manager
Gina Moore, Financial Officer
Matt Allen, Operations Manager
Sheryl Ponzer, Customer Accounts Manager
Nathanael Romig, Collection Superintendent
Henry Newhouse, Plant Superintendent
* Joined via web conference call
Notice of Special Meeting
The Notice of Special Meeting and Agenda for this meeting were posted, as statutorily required (no less than twenty-four hours prior to holding the meeting), on the District's website at UTSD.org, and at the UTSD administration office.
Next Meeting Date
The next regular meeting of the Board of Directors will be held on October 18, 2022.
Approval of Agenda
The Board Considered the Agenda.
It was moved by Ms. Doylen and seconded by Mr. Duell to approve the Agenda as presented. Motion carried unanimously.
Disclosure of Potential Conflicts of Interest
Disclosure of potential conflicts of interest is a topic of discussion at every Board meeting to address potential conflicts of interest that may arise as new agenda items are introduced. District Directors who have disclosed potential conflicts of interest can vote as issues arise.
Public Forum
Mr. Reed opened the meeting for public comment.
Ms. Doylen explained the Public Forum is an opportunity for presentation by the public to provide information to the Board of Directors on any non-agenda item. She further explained the Board cannot take action on non-agenda items but may direct staff to include the item on a future agenda.
No members of the public joined the meeting.
No members of the public offered comment on a non-agenda item.
Regarding public comment on Agenda Items, Ms. Doylen provided the following statement:
Public comments will be heard by the Board at the conclusion of the presentation of the agenda item. Persons addressing the Board shall first be recognized by the District Manager or Board Chairman and may speak only one time per agenda item. Speakers shall state their name and address for the official minutes, address comments to the Board as a Body, and shall be allotted three (3) minutes for public comment.
Proposed 2023 Budget
Proposed 2023 Budget - presented by Mr. Bieker, Ms. Jurgens and Ms. Moore:
Mr. Bieker, Ms. Jurgens and Ms. Moore presented the 2023 proposed budget to the Board.
Mr. Bieker stated the District is obligated by statutory law, §1-13.5-111, C.R.S., to submit the proposed budget to the Board of Directors no later than October 15, 2022. The board packet, containing the 2023 proposed budget, was distributed to the Board and staff on October 7, 2022.
Mr. Bieker encouraged the Board to ask questions of the staff, throughout his presentation, for further clarification about 2022 financial information and 2023 budgeted items.
Mr. Bieker said the first section of the 2023 budget document is the budget message which provides a review of District activity through September 30, 2022, and summarizes the basis of the 2023 budget. He noted the 2023 budget message identifies the District's operating philosophy and outlines the priorities for the year 2023 and beyond.
Mr. Bieker then highlighted the budget schedule and message and asked the Board and staff to review it and submit questions and comments regarding the message by October 31, 2022.
Mr. Bieker noted the budget message highlights the continued support from the District's professional service providers, the selection of Garney Construction, Inc. as the Construction Manager at Risk for the Water Reclamation Facility, ongoing rehabilitation and repair of the existing wastewater treatment facilities and collection infrastructure, continued administrative support to all customer classes, and the implementation of scheduled service rate increases and consideration of customer service rates to support future debt service.
Mr. Bieker added the budget message outlines the preparation and goals of budget development and an overview of the statutory requirements of the document. The budget message also reviews and delineates operation and capital activities as they relate to the revenue and expense budget.
Mr. Bieker commented regarding the Water Reclamation Facility and Lift Station Improvements Project, the focus for 2023 will be finalizing design, development of construction drawings and costs, determination of project funding, and the beginning of construction of portions of the treatment facility, lift stations, and interceptors.
Mr. Bieker explained the 2023 proposed budget prioritizes capital equipment purchases and satisfies ongoing operation and maintenance costs. The budget document includes operating and capital revenue projections, overhead, operational and capital expenses and ending fund balances. The budget incorporates planned capital improvement projects.
Mr. Bieker then commended the staff for their ongoing dedication to the mission and success of the District, demonstrated by their engagement and delivery of excellence each day. Mr. Bieker continued that the 2023 proposed employee compensation is reflective of the value the District places on the staff.
Ms. Moore then thanked the District staff for their contributions, quotes and estimates provided for the 2023 proposed budget. She rep01ied that the public notice of the budget hearing scheduled on November 15, 2022, will be posted on the District's website, UTSD.org, and at the District Office. Additionally, she stated that notice of the budget hearing will be published in the Estes Park News on October 14, 2022, and October 21, 2022.
Ms. Moore informed the Board the proposed budget is in compliance with legal requirements showing estimated beginning and ending fund balances, previous year audited figures, year-end estimated figures for the current year and figures for the year in which the budget will be adopted. She mentioned the 2023 proposed budget was emailed to legal counsel, Ms. Linda Glesne, of CEGR Law.
Ms. Moore stated the estimated figures for 2023 revenue and expenses were based on actual revenue and expenses through September 30, 2022, and anticipated expenditures were forecasted through the end of 2022. Ms. Moore noted that at the budget hearing in November 2022, the proposed budget will be updated to reflect estimated revenues and expenses through October 31, 2022.
Ms. Moore shared that Customer Accounts Manager, Ms. Ponzer, assisted in forecasting 2023 revenue. Ms. Moore referenced interest income is a conservative estimate for 2023. Ms. Moore explained the 2022 proposed budget projects revenues for access fees and metered usage based on 2022 estimated metered usage income with an 11 % rate increase. She stated the 2023 proposed budget sets non-metered revenue based on 2022' s estimated revenue with an 11 % rate increase.
Ms. Moore then explained that 2023 system development and permit revenue forecast the sale of20 new system development fees (SDF) at the proposed rate of $11,400 per SDF. A total of twenty-five permit fees were projected to be sold in 2023. She added that through September 30, 2022, 24 system development fees were sold.
Ms. Moore also informed the Board that many of the 2023 budgeted figures for overhead and operation expenses were based on 2022 estimated expenses and/or 2022 budgeted expenses. Ms. Moore also mentioned budgeted costs for computer maintenance, professional services, and equipment were based on vendor quotes received.
Ms. Moore noted the District received an economic perspective summary from the Employers Council for October 2022 which provided a consumer price index (CPI) forecast of up to 8.9 % for Colorado. Ms. Moore explained the information provided in the summary was considered when preparing the 2023 budget.
Ms. Moore stated the District and employees will experience an increase of 4.5% in medical insurance benefit expenses, and no increase in dental and vision insurance benefit expenses in 2023. An approximate 7.5% increase is anticipated for the District's life insurance premiums. The health insurance figures projected in the 2023 budget are based on 2022 employee selections and include the addition of a new hire in the collections department.
Ms. Moore stated the District's premiums for prope1ty and liability and worker's compensation insurance are yet to be determined. She explained the Colorado Special District Property and Liability Pool recently began the renewal process to determine worker's compensation and property and liability coverage for 2023. Ms. Moore indicated the proposed budget figures for prope1ty and liability and worker's compensation insurance are high to allow for premium increases, audit premium payments, deductibles, and additions of new equipment in 2023. A contribution increase for worker's compensation insurance is expected due to the increase in the experience modification from 1.07 to 1.65. This increase is limited to 25 percent. Ms. Moore continued stating, property and liability insurance is anticipated to increase as well with an expected rate increase ranging from 4% to 7% for year 2023. A 10% discount is anticipated due to 100% employee participation in Vector Solutions Training.
Ms. Moore said the 2023 proposed budget includes a $10,000 overhead contingency, a $50,000 operation and maintenance contingency, and a $500,000 capital contingency allowing the Board and District Manager to appropriate funds to unforeseen, yet essential, expenditures.
Ms. Moore then provided a summary review of information in the 2023 proposed budget spreadsheets, including the general fund budget summary, revenue and expenses, general fund summary budget notes, and the 2022 budget to actual forecast.
Ms. Moore stated she will revise the 2023 proposed budget after the Board, staff, and public have submitted questions and comments to Mr. Bieker. She restated that a hearing for public comment on the 2023 proposed budget is scheduled during the Regular Board Meeting on Tuesday, November 15, 2022, at 4:00 p.m.
Mr. Bieker then noted the 2023 budget incorporates several planned capital improvement projects outlined in the Capital Improvement Plan (CIP). The CIP allocates funds needed for high priority structural repairs and rehabilitation of critical equipment and includes ongoing expenses for development of the water reclamation facility and collection system. The 2023 proposed capital improvements expenditures total $3,715,000.
Mr. Bieker then reviewed proposed capital expenditures for 2023 through 2030 using the Capital Improvement Plan (CIP) spreadsheet dated October 12, 2022. Mr. Bieker stated capital expenditures were developed with input from Mr. Newhouse, Mr. Allen, Mr. Romig and Mr. Steve Ravel, P.E., of Merrick & Company.
The Board discussed the capital improvement plan (CIP) and asked questions of Mr. Bieker, and the staff about expenses listed in the proposed CIP and reserves and warranties available to replace future Project membrane cassettes as well as other current and fixed assets.
Mr. Bieker summarized the 2023 proposed budget highlighting that the expenditures exceed revenues primarily due to the 2023 capital improvement projects driving the operating/capital net position. These capital improvement projects are subject to approval by the Board of Directors and the District Manager. Mr. Bieker explained financing of approved 2023 capital improvement projects that are not funded by 2023 revenues, will be funded through use of the District's net position and appropriated reserves.
Ms. Jurgens added the figures in the 2023 budget will be refined in the next two months. Ms. Jurgens commended Ms. Moore for her efforts in preparing the budget document.
Mr. Allen then detailed for the Board the need and ordering process for the new jet truck and utility truck that is included in the 2023 capital expenditure budget.
Mr. Newhouse added that the two ammonia probes included in the 2023 capital expenditure budget will assist in process control and proper design of the new water reclamation facility.
Mr. Bieker, Mr. Allen, and Mr. Newhouse answered questions of the Board regarding the 2023 capital improvement plan.
The Board thanked Mr. Bieker, Ms. Jurgens and Ms. Moore for their preparation and presentation of the 2023 Proposed Budget.
Adjournment
Having no further business, at 5:14 p.m. it was moved by Ms. Doylen and seconded by Mr. Duell to adjourn the meeting. Motion carried unanimously.