September 23, 2025 Regular Meeting

Upper Thompson Sanitation District
Regular Meeting of the Board of Directors
District Administrative Conference Room

Pursuant to C.R.S., §32-1-903, notice is hereby given to the members of the Upper Thompson Sanitation District Board of Directors and to the general public that the Board will hold its regular meeting, which is open to the public, at 4:00 p.m. on Tuesday, September 23, 2025, at the Upper Thompson Sanitation District Administrative Office, 2196 Mall Road, Estes Park, CO, 80517. Individuals who wish to address the Board via public participation may do so “in-person,” via telephone, or virtually through online participation, facilitated by the Zoom platform. Members of the public wishing to join the meeting via online or telephone participation, please email a request for the meeting link or telephone number to Ms. Gina Moore, Financial Officer, at gina@utsd.org by 2:00 p.m. on September 23, 2025.

Revised Agenda

1. Call to Order.
2. Pledge of Allegiance.
3. Roll Call, Absences Excused.
4. Next Meeting Date: Special Board Meeting, Tuesday, October 14, 2025.
   Regular Board Meeting, Tuesday, October 21, 2025.
5. Agenda: Correction and Approval.
6. Disclosure of Potential Conflicts of Interest.
7. 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.
   All public commentary must be made at the podium or offered virtually via Zoom Chat.
8. Minutes: Correction and Approval: Regular Board Meeting, August 19, 2025.
9. New Business and Special Orders:
   1. Petition for Inclusion: Stephen and Karin Wende, Larimer County Parcel 2531309012, 641 Longs Drive, Estes Park, Colorado – presented by Ms. Ponzer.
   2. Update: Phase II - Water Reclamation Facility (WRF) and Lift Station Improvements Project – presented by Mr. Ravel, P.E., Senior Project Manager, AE2S.
   3. Discussion: Consideration of 2026 service rates and fees – facilitated by Mr. Ravel, P.E., Senior Project Manager, AE2S.
   4. Consideration for Adoption: Resolution No. 2025-09-01: A Resolution Setting Rates and Fees for the 2026
      Budget Year – presented by Ms. Jurgens.
10. Reports from Officers, Committees, and Staff: Questions, Comments, Correction and Approval:
    1. Treasurer’s Report.
    2. Plant Report.
    3. System Development Fee Allocation and Connection Report.
    4. Collection System Report.
    5. Operations Manager’s Report.
    6. District Manager’s Report.
11. Adjournment.

Agenda

1. Call to Order.
2. Pledge of Allegiance.
3. Roll Call, Absences Excused.
4. Next Meeting Date: Special Board Meeting, Tuesday, October 14, 2025.
   Regular Board Meeting, Tuesday, October 21, 2025.
5. Agenda: Correction and Approval.
6. Disclosure of Potential Conflicts of Interest.
7. 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.
   All public commentary must be made at the podium or offered virtually via Zoom Chat.
8. Minutes: Correction and Approval: Regular Board Meeting, August 19, 2025.
9. New Business and Special Orders:
   1. Petition for Inclusion: Stephen and Karin Wende, Larimer County Parcel 2531309012, 641 Longs Drive, Estes Park, Colorado – presented by Ms. Ponzer.
   2. Update: Phase II - Water Reclamation Facility (WRF) and Lift Station Improvements Project – presented by Mr. Ravel, P.E., Senior Project Manager, AE2S.
   3. Discussion: Consideration of 2026 service rates and fees – facilitated by Mr. Ravel, P.E., Senior Project Manager, AE2S.
10. Reports from Officers, Committees, and Staff: Questions, Comments, Correction and Approval:
    1. Treasurer’s Report.
    2. Plant Report.
    3. System Development Fee Allocation and Connection Report.
    4. Collection System Report.
    5. Operations Manager’s Report.
    6. District Manager’s Report.
11. Adjournment.

Upper Thompson Sanitation District (District) prohibits discrimination against its customers, employees, and applicants for employment on the basis of race (including traits historically associated with race, such as hair texture and length, protective hairstyles), color, ethnic or national origin, ancestry, age, disability, sex, gender, sexual orientation, gender identity and expression, religion, creed, political beliefs, marital status, familial or parental status 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, Ms. Suzanne Jurgens, three days before the event via email at suzanne@utsd.org, or telephone at 970-586-4544, or dial 711 to connect with Relay Colorado.

Record of Proceedings 

Minutes Of a Regular Meeting of the Board of Directors Of 
Upper Thompson Sanitation District 
Held: September 23, 2025, at 4:00 p.m., at the 
District Office, 2196 Mall Road, Estes Park, Colorado 

Call to Order

A regular meeting of the Board of Directors of the Upper Thompson Sanitation District, Estes Park, Colorado, was called to order at 4:02 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: 
Christopher Eshelman, Chairman 
Susan Doylen, Vice-Chairman/Secretary 
Michael Morton, Treasurer 
Kent Bosch, Assistant Treasurer/Secretary 
Andrew Kessler, Assistant Secretary/Treasurer 

Staff: 
Suzanne Jurgens, District Manager 
Gina Moore, Financial Officer 
Matt Allen, Operations Manager 
Nathanael Romig, Collection Superintendent 
Henry Newhouse, Plant Superintendent 
Sheryl Ponzer, Customer Accounts Manager 
Cristie Rambeau, Customer Accounts Specialist (at 4:09 p.m., joined via web conference call, at 5:15 p.m., arrived at the meeting in person)

Invited Guests: 
Steve Ravel, P.E., Senior Project Manager, Advanced Engineering and Environmental Services (AE2S) Jeff Hruby, P.E., Business Development Director, Advanced Engineering and Environmental Services (AE2S) 

Next Meeting Date 

A special meeting of the Board of Directors will be held on October 14, 2025, at 4:00 p.m. 

A regular meeting of the Board of Directors will be held on October 21, 2025, at 4:00 p.m. 

Approval of Revised Agenda 

The Board reviewed the revised Agenda, which includes an additional item regarding a resolution prepared by the District's legal counsel, Ms. Linda Glesne of CEGR Law. Item 9d has been added: "Consideration for Adoption: Resolution No. 2025-09-01 A Resolution Setting Rates and Fees for the 2026 Budget Year - presented by Ms. Jurgens." 

It was moved by Ms. Doylen and seconded by Mr. Bosch to approve the Revised Agenda as discussed. 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. Eshelman opened the meeting for public comment. 

Mr. Eshelman 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. He further explained the Board cannot take action on non-agenda items but may direct staff to include the item on a future agenda. 

Regarding public comment on Agenda Items, Mr. Eshelman 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 stand at the podium, 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. 

In attendance was Mr. Kevin McClure, of 1535 Raven Circle, Unit I, Estes Park. Mr. McClure is the President of Ranch Meadow Homeowner Association. 

In attendance was Ms. Stefanie Thornton, of 1455 Raven Circle, Unit D, Estes Park. Ms. Thornton is the Treasurer of Ranch Meadow Homeowner Association. 

Mr. McClure and Ms. Thornton indicated they were in attendance of the meeting to hear the Board's discussion about 2026 service rates. They did not offer comment on a non-agenda item. 

Joining the meeting at 4:21 p.m., via web conference call, was Mr. Stewart Squires, of 618 Park River Place, Estes Park. Mr. Squires did not offer comment on a non-agenda item. 

Approve Minutes from Prior Meeting: 

The Board reviewed and discussed the Minutes of the August 19, 2025, Regular Board Meeting. 

It was moved by Ms. Doylen and seconded by Mr. Morton to approve the Minutes of the August 19, 2025, Regular Board Meeting as presented. Motion carried unanimously. 

New Business and Special Orders: 

Petition for Inclusion: Stephen and Karin Wende, Larimer County Parcel 2531309012, 641 Longs Drive, Estes Park, Colorado - presented by Ms. Ponzer: 

At 4:06 p.m., Mr. Eshelman opened the Public Hearing on the Petition for Inclusion. 

Ms. Ponzer reported to the Board that Stephen and Karin Wende have submitted a Petition for Inclusion into the District for their property described as 641 Longs Drive, Larimer County Parcel 2531309012, in Estes Park, Colorado. 

Ms. Ponzer explained Stephen and Karin Wende recently petitioned for this property to be included in the Upper Thompson Sanitation District boundary because they recently purchased a single-family dwelling with a 50+ year old septic system. The Wende's are uncertain about the longevity of their septic system and want to be prepared to switch to sewer service with Upper Thompson Sanitation District when necessary. 

Ms. Ponzer stated the inclusion fees have been paid in full and all necessary documents have been executed by Stephen and Karin Wende. 

Ms. Ponzer further explained a site inspection by UTSD Collection's Department confirms that the Wend e's property can be serviced by the District. 

Ms. Ponzer said a "Notice of Open Meeting for Hearing on Petition for Inclusion" was published, in accordance with statutory requirements, in the Estes Park Trail Gazette on Wednesday, September 10, 2025. 

Ms. Ponzer informed the Board that this parcel of land does not have a UTSD tap and will require the purchase of new System Development Fee(s) prior to any connections to the UTSD collection system. 

The Board discussed the Petition for Inclusion. 

There were no public comments, objections, or agreements; therefore, at 4:09 p.m. Mr. Eshelman closed the Public Hearing. 

It was moved by Ms. Doylen and seconded by Mr. Bosch to approve the Petition for Inclusion for 641 Longs Drive, Larimer County Parcel 2531309012, in Estes Park, owned by Stephen and Karin Wende. Motion carried unanimously. 

Update: Phase II - Water Reclamation Facility (WRF) and Lift Station Improvements Project - presented by Mr. Ravel, P.E., Senior Project Manager, AE2S: 

Mr. Ravel provided an update regarding the value engineering and 20% design progress for the Water Reclamation Facility and Lift Station Improvements Project (Project). He stated that the design team has been working in collaboration with the contractor, RN Civil Construction, to assess potential modifications to the design, including changes to the biological process, chemical storage requirements, and sizing of the biological basin. Additional Project considerations include the incorporation of a third train for the biological nutrient removal process, adjustments to dual pressure pipeline sizes, and evaluation of system hydraulics for the transfer of flow from the existing wastewater treatment facility to the new water reclamation facility. Mr. Ravel reported that this design modification phase is approximately one week behind schedule. 

Mr. Ravel noted that the engineering design team has prepared a draft technical memorandum, 20% design and value engineering sketches, a decision log, and a list of value engineering items. Mr. Ravel further explained that these documents will be provided to the contractor to support the development of a preliminary Project cost estimate. Additionally, the team has identified applicable regulatory and permitting requirements for Project modifications based on the current design and value engineering efforts. 

Upon receipt of the preliminary Project cost estimate, the District will work collaboratively with the engineering design team and the contractor to further refine both the Project design and its associated costs. The objective is to develop a comprehensive final estimate for submission to the Board in November, where it will be reviewed and considered for authorization to proceed to final design. Once the final design phase is complete, the contractor will prepare a construction bid for the project. The Board will evaluate this bid to determine whether to approve construction of the new water reclamation facility. 

Mr. Ravel then shared Project sketch plans and explained details on those drawings that have been developed through the value engineering and 20% design process. 

The Board offered comments about the Project and asked Mr. Ravel questions about the sketch plans and notable changes to the original Project design. 

Concluding the Project update, Mr. Ravel noted that a meeting will be scheduled with the Project team to discuss the draft technical memorandum and other documents with the contractor. 

Mr. Ravel indicated that the District would submit a written project update to the Colorado Department of Public Health and Environment (CDPHE) and will provide a copy of this correspondence to the Colorado Water Resources and Power Development Authority (CWRPDA), the District's lending partner for the Project. 

The Board thanked Mr. Ravel for the Project Update. 

Discussion: Consideration of 2026 Service Rates and Fees - Facilitated by Mr. Ravel, P.E., Senior Project Manager, AE2S: 

Ms. Jurgens reported to the Board that the District provided at least thirty days' notice of the Board's discussion and action to increase rates and fees. Notice of discussion at the August 19, 2025, and September 23, 2025, regular board meetings were posted on the District's website, in the District's transparency notice on the Special District Association of Colorado website and published in the Estes Park News and the Estes Park Trail Gazette on July 18, 2025. Additionally, the notice was posted at the District administration building on July 14, 2025. All notices regarding the Board's discussion of rates and fees were published and posted as statutorily required. 

Ms. Jurgens noted that at the August 19, 2025, regular board meeting Steve Ravel offered a PowerPoint presentation which outlined various rate and fee scenarios for the Board's consideration to set 2026 service fees and system development fees. Following that presentation, the Board discussed the District's capital projects, including the construction of a new water reclamation facility and associated improvements to existing facilities, the District's financial obligations related to development of that Project, the District's 2023 wastewater rate study, and financial proformas developed by the District's financial advisor. 

Ms. Jurgens stated that Steve Ravel has been invited to facilitate further rate discussion and has prepared an updated PowerPoint presentation for the Board's consideration of setting 2026 rates and fees. After the presentation, Ms. Jurgens invited the Board to ask questions about proposed 2026 rates and fees. 

Ms. Jurgens explained that it is the staff's desire to know 2026 rates and fees as they work to develop the 2026 budget and also convey rate information to customers during the remaining months of 2025. 

Ms. Jurgens said that Agenda Item 9d. presents Resolution No. 2025-09-01: A Resolution Setting Rates and Fees for the 2026 Budget Year for the Board's consideration of adoption. 

Ms. Jurgens noted that if the Board determines that further discussion regarding rate issues beyond this meeting would be beneficial and adoption of the resolution at this meeting would not be beneficial, the District will advertise that the Board will discuss rates and fees at the November 18, 2025, regular board meeting allowing the District to provide thirty days' notice as statutorily required. 

Mr. Ravel delivered an updated PowerPoint presentation that outlined the definition of a system development fee (SDF), reviewed the District's SDF history, provided recent updates, identified key factors influencing the 2026 service fee rates, and presented a proposal for determining those rates. 

Mr. Ravel began his presentation by explaining that a system development fee is a one-time payment used to cover capital costs associated with the expansion of wastewater collection, conveyance, and treatment facilities due to growth. The amount of the fee depends on the number of single-family equivalents (SFEs), and it grants the payer permission to connect to a District sewer line. The District periodically reviews the SDF, which may be adjusted over time. 

Mr. Ravel provided the Board with an overview of the history of the System Development Fee, including details about three previous rate studies that updated the District's SDF cost models. The District applied an equity buy-in approach, using asset unit costs for SDFs, which Raftelis advised in 2014 and reaffirmed in 2020, incorporating updates based on the Engineering News Record Construction Cost Index (ENR CCI). In 2023, Willdan Financial Services recommended reassessing the equity buy-in approach and suggested adjusting unit costs to account for inflationary cost increases that had exceeded the ENR CCI. 

Mr. Ravel stated that, following the 2023 Willdan Study, the System Development Fee (SDF) was revised to reflect accurate data obtained from the District's GIS and collection system initiatives, including updated pipeline measurements. The current SFE system development fee is $18,100. He clarified that SDF costs are determined by multiplying unit costs by quantities, adding administrative fees, and revising figures in accordance with the ENR Construction Cost Index (CCI). By dividing the total system value by the number of SFEs the proposed System Development Fee totals $18,655, representing an increase of $555 compared to the previous year. Of this increase, approximately $70 results from adjustments in pipeline lengths, while about $450 is attributed to changes in the ENR CCI. Mr. Ravel noted that District staff recommends rounding the 2026 System Development Fee up to $18,700. 

Mr. Ravel stated that the District imposes service fees for wastewater services as well as waste hauling charges. Mr. Ravel stated that factors affecting the determination of the 2026 service fee rates include the annual review of rates and the execution of capital improvements, such as the WRF and Lift Station Improvements Project. He then presented a spreadsheet illustrating rate increases for non-metered and metered rates at an 8.5% increase over 2025 service rates. He also noted that the financial proforma, developed by the District's financial advisor, illustrates a minimum rate increase of 8.5% in 2026 to facilitate the District meeting the debt service ratio required by the District's loan agreements with the Colorado Water Resources Power Development Authority (CWRPDA) Water Pollution Control Fund (WPCF) and the Environmental Protection Agency (EPA) Water Infrastructure Finance and Innovation Act (WIFIA). 

Mr. Ravel then provided proposed 2026 minimum rate increases for Board consideration. For 2026 service fees, including non-metered, metered, data collection fees, and base fees, the financial proforma model recommends a minimal 8.5% rate increase for next year. 

The Board asked questions of Mr. Ravel regarding scheduled debt service payments and the District's loan covenants to maintain minimum debt service ratios. 

The Board thanked Mr. Ravel for leading the discussion on 2026 system development and service fees. 

Mr. Eshelman invited public comments about service rates and fees. 

Mr. McClure stated he was aware that other sanitation departments' service rates were rising 3-5% next year. He also expressed his understanding that the Upper Thompson Sanitation District was implementing higher rate increases to finance the construction of the new water reclamation facility and to expedite repayment of loan obligations. 

The District Board and staff provided Mr. McClure with further details regarding the District's infrastructure, planned capital improvement projects, projected debt related to the Project and its financial obligations, as well as their intention to enable the District to accelerate loan repayment to achieve long-term cost savings. 

Mr. McClure indicated that he would notify members of his homeowners' association about the projected increase in wastewater service costs for 2026. Additionally, he shared with the Board that the cost of wastewater service represents a significant annual expense for the homeowner's association. 

The Board expressed its appreciation to Mr. McClure and Ms. Thorton for attending the meeting. 

Consideration for Adoption: Resolution No. 2025-09-01 A Resolution Setting Rates and Fees for the 2026 Budget Year- presented by Ms. Jurgens: 

Ms. Jurgens presented Resolution No. 2025-09-01 A Resolution Setting Rates and Fees for the 2026 Budget Year (Resolution) for the Board's discussion and consideration. 

Ms. Jurgens noted the resolution has been prepared by the District's legal counsel, Ms. Linda Glesne, of CEGR Law. 

Ms. Jurgens noted that the Resolution states the following: 

The Board of Directors has previously adopted Rules and Regulations and methodology for setting forth rates and system development fees for various classes of customers and intends to continue to follow the methodology for setting rates for the 2026 budget year. 

It is in the best interest of the public health, welfare and safety of the District residents and visitors that the District collect adequate revenues as set forth in the 2023 Wastewater Rate Study and as adopted by the Board. 

Ms. Jurgens stated the Resolution resolves the following: 

The Board is adopting rates and fees for the year 2026. Those rates and fees will be incorporated into spreadsheets and will be included as Exhibit A of the Resolution. 
The Resolution supersedes any contrary provision contained in the District's Rules and Regu􀀉ations, which will be modified at the beginning of 2026 to conform with the provisions set forth in the resolution. 

The Board reviewed capital costs for expanding the wastewater infrastructure, as well as considerations for establishing the 2026 System Development Fee to reflect the cost of buying into the system. The Board also spoke about plans for constructing a new water reclamation facility, associated financial obligations, and service fees required to support loans obtained for the Project. The discussion covered a review of proposed service rate increases ranging from 8.5% to 10.5%, as well as the corresponding net changes to the base rate on a monthly and annual basis for each scenario compared to the 2025 service rate. The Board also stated the importance of strategically positioning the District's finances to enable early loan repayment, with the objective of achieving significant long-term cost savings. 

It was moved by Mr. Morton and seconded by Ms. Doylen to set the System Development Fee for the year 2026 to $18,700. 

It was moved by Mr. Morton and seconded by Mr. Bosch to increase service rates and fees by 10.5% for the year 2026. 

It was moved by Ms. Doylen and seconded by Mr. Morton to adopt Resolution No. 2025-09-01 Setting Rates and Fees for the 2026 Budget Year. The resolution includes spreadsheets that display the 2026 system development fee and service rates, previously approved by the Board of Directors, as Exhibit A. Motion carried unanimously. 

Mr. Squires excused himself from the meeting at 5:35 p.m. 

Reports of Officers, Committees, Professional Consultants, & Staff 

The Board considered the Reports of Officers, Committees, Professional Consultants, and District Staff. 

The Board asked the staff questions regarding the departmental reports. 

The Board did not have corrections to the departmental reports. 

The Board thanked District Staff for preparing the reports. 

Along with the Collection System Report, Collection Superintendent, Mr. Romig stated that he and Collection Operator, Mr. Garrett Johnson, met with Town of Estes Park Public Works Department representatives to demonstrate the District's closed circuit TV camera system as part of the Town's consideration for a similar system to support stormwater infrastructure management. 

Mr. Eshelman stated that it is commendable for the District to support other local utility partners. 

In addition to the District Manager's Report, Ms. Jurgens informed the Board that Plant Superintendent, Henry Newhouse, began his employment with the District as a wastewater treatment operator twelve years ago on this date. Ms. Jurgens thanked Mr. Newhouse for his valiant commitment and service to the District. 

The Board of Directors congratulated Mr. Newhouse on his employment anniversary and thanked him for his many commendable years of service to the District. 

It was moved by Ms. Doylen and seconded by Mr. Bosch to accept the Treasurer's Report, Plant Report, System Development Fee Allocation and Connection Report, Collection System Report, Operations Manager's Report, and District Manager's Report. Motion carried unanimously. 

Adjournment 

Having no further business, at 6:19 p.m. it was moved by Mr. Bosch and seconded by Mr. Morton to adjourn the meeting. Motion carried unanimously. 

Susan L. Doylen, Vice-Chairman/Secretary

Christopher L. Eshelman, Chairman

October 21, 2025