Public Notice 3-10-20...Mt. Crested Butte Water & Sanitation District (“The District”), Gunnison...

Public Notice

Mt. Crested Butte Water & Sanitation District Regular Board Meeting Agenda

Tuesday, March 10, 2020 5:00 p.m.

100 Gothic Road, Mt. Crested Butte CO 81225

1. Call to Order

2. Citizens Comment Period• Citizens may make comments on items NOT scheduled on the agenda. Per Colorado

Open Meetings Law, no Board discussion or action will take place until a later date, ifnecessary. You must sign in before speaking. Comments are limited to three minutes.

3. Cancel Election and Declare Candidates Elected. Resolution 2020-2

4. Election Updates

5. Water Treatment Plant Expansion Project Update

6. Wastewater Enterprise. Resolution 2020-3

7. WTP Expansion Project 90% Design Review

8. Water Committee Update

9. District Manager Report

10. February 2020 Financial Report

11. Approve Meeting Minutes• February 11, 2020

12. Legals

13. New/Old Business Before the Board

14. Executive Session pursuant to C.R.S. § 24-6-402(4)(b), which allows conferences with theDistrict’s attorney for the purposes of receiving legal advice on specific legal questions. Thepurpose of the executive session will be to discuss with the District’s attorney the process forconsidering the Hunter Ridge Petition for Inclusion.

15. Adjourn

The Board may address individual agenda items at their discretion as necessary to accommodate the needs of the Board and audience.

Resolution No. 2020-2

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MT. CRESTED BUTTE WATER AND SANITATION DISTRICT

CANCELING ELECTION and DECLARING CANDIDATES ELECTED

WHEREAS:

A. The Board of Directors of the District is authorized to cancel the election by resolution and declare

candidates elected at the close of business on the sixty-third day before the election to be conducted on May 5th,

2020; and

B. The Board of Directors has duly certified that there were not more candidates for director than offices to

be filled, including candidates filing affidavits of intent to be write-in candidates,

NOW, THEREFORE, pursuant to 1-13.5-513 & 1-11-103(3), C.R.S., the Board HEREBY cancels the regular

election to be conducted on the 5th day of May 2020 by formal resolution and

THE BOARD DECLARES THE FOLLOWING CANDIDATES ELECTED BY ACCLAMATION FOR THE

FOLLOWING TERMS OF OFFICE:

Carlos Velado 2 Year Term until May 2022 Nicholas Kempin 3 Year Term until May 2023 Nancy Woolf 3 Year Term until May 2023

APPROVED AND ADOPTED by the Board of Directors of the District on this 10th day of March 2020.

MT. CRESTED BUTTE WATER AND SANITATION DISTRICT, A Colorado Special District

BY: Chairperson: Brian Brown

ATTEST: Board Secretary: Perry W. Solheim

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NOTICE OF CANCELLATION AND

CERTIFIED STATEMENT OF RESULTS

NOTICE IS HEREBY GIVEN by the Mt. Crested Butte Water and Sanitation District, Gunnison County,

Colorado, that at the close of business on the sixty-third day before the election, there were not more candidates

for director than offices to be filled, including candidates filing affidavits of intent to be write-in candidates;

therefore, the election to be held on May 5th, 2020 is hereby canceled pursuant to section 1-13.5-513(6) C.R.S.

The following candidates are hereby declared elected:

Carlos Velado 2 Year Term until May 2022 Nicholas Kempin 3 Year Term until May 2023 Nancy Woolf 3 Year Term until May 2023

ATTEST: Designated Election Official: Perry W. Solheim [email protected] 970-349-7575100 Gothic RoadMt. Crested Butte, CO 81230

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mailto:[email protected]

M E M O R A N D U M March 2, 2020

TO: Project Finance Committee and Karl Ohlsen

FROM: Jim Griffiths, Finance Director Beth Williams, Financial Analyst Austin Reichel, Financial Analyst

RE: Review of the Mt. Crested Butte Water and Sanitation District and the Parkville Water District Drinking Water Revolving Fund (“DWRF”)

The Division of Local Government has forwarded to the DWRF Committee its analyses of the above listed projects. The DWRF Committee, composed of representatives from the Division of Local Government, the Water Quality Control Division, and the Authority, has reviewed the technical and financial aspects of the proposed projects and agreed to forward the requests to the Authority’s Project Finance Committee with the following recommendations:

Mt. Crested Butte Water and Sanitation District Mt. Crested Butte Water and Sanitation District (the “District”), located in Gunnison County, is seeking a leveraged loan through the DWRF loan program in the amount of $23,175,000 plus cost of issuance. The project consists of constructing a new water treatment plant with a capacity of 1.5 MGD, a new pump station facility at the existing East River location, a new raw water pipeline connecting the two facilities, and associated appurtenances. The District’s project was authorized by HJR 17-1003.

Recommendation Based on the attached credit report, staff recommends that the Project Finance Committee forward to the Board a recommendation authorizing staff to begin negotiating a DWRF leveraged loan with the District in the amount of $23,175,000 plus cost of issuance. The loan will be for a term of 20 years plus construction, at an interest rate of 70% of the market rate on the Authority’s 2020 Series A State Revolving Fund Revenue Bonds, subject to the District increasing user rates, if necessary, sufficiently to meet the Authority’s rate covenant prior to loan execution. The Board will consider this request on March 6, 2020.

Parkville Water District The Parkville Water District (the “District”), located in Lake County, is seeking a Disadvantaged Communities direct loan through the DWRF loan program in the amount of $2,000,000. The project consists of numerous improvements throughout the District’s existing water treatment facility, including: installation of new filter underdrains; replacement of current adsorption clarifiers and filter media; rehabilitation of modular tanks; and replacement or upgrades to existing controls, valves, piping, meters, and other associated appurtenances. The project will also install a new emergency power generator. The District’s project will be authorized by SJR 20-003.

Recommendation Based on the attached credit report, staff recommends that the Project Finance Committee forward to the Board a recommendation authorizing staff to begin negotiating a DWRF Disadvantaged Communities direct loan with the District in the amount of $2,000,000. The loan will be for a term of 20 years, at an interest rate of 1.5%, subject to inclusion of the Project on the Drinking Water Revolving Fund Project Eligibility List, and adoption of such list, by a Joint Resolution of both houses of the General Assembly presented to the Governor, prior to loan execution. The Board will consider this request on March 6, 2020.

COLORADO WATER RESOURCES & POWER DEVELOPMENT AUTHORITYLogan Tower Bldg - Suite 620, 1580 Logan Street, Denver, Colorado 80203-1942

303/830-1550 · Fax 303/832-8205 · [email protected]

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mailto:[email protected]

Note: A telephone conference call has been scheduled for 9:00 a.m. Monday, March 2, 2020. The call-in number is: 1-866-550-4230. You will be prompted to enter conference code: 108787# followed by the PIN: 976#. Please say your name, followed by # and you will be connected to the conference call.

Attachments: Mt. Crested Butte Water and Sanitation District 2020 DWRF Credit Report Parkville Water District 2020 DWRF Credit Report

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DWRF LEVERAGED LOAN CREDIT REPORT Mt. Crested Butte Water & Sanitation District (“The District”), Gunnison County

1

Recommendation: CONDITIONAL APPROVAL Project Budget Loan Request: $23,175,000 DWRF Loan: $23,175,000 Est. Interest Rate & Term: 2.0%, 20 years Total: $23,175,000 Est. Annual Debt Service: $1,411,617 Pledge: Water & Sewer Revenue Current Rate: $58.49 (W), $47.07 (S) Estimated Rate Increase: $26.57

PROJECT DESCRIPTION: This project consists of constructing a new water treatment plant with a capacity of 1.5 MGD, a new pump station facility at the existing East River location, a new raw water pipeline connecting the two facilities and associated appurtenances.

COMMUNITY PROFILE: Mt. Crested Butte W&S District 2015 2016 2017 2018 2019 2020

Avg. Annual Change

District Population 2,301 2,313 2,323 2,346 2,346 2,380 0.57%Gunnison County Population 16,131 16,448 16,884 17,173 1.58%Gunnison County Jobs 11,104 11,368 11,940 12,149 2.27%Number of Water Taps 924 929 933 942 942 956 0.57%Number of Sewer Taps 775 782 790 800 800 812 0.78%Assessed Value ($000) 85,930 107,317 100,264 102,102 102,357 125,402 6.50%Actual Value ($000) 970,887 960,358 1,059,977 1,076,838 1,317,877 6.30%

BORROWER BRIEF: The District is located in Gunnison County, about 31 miles north of the City of Gunnison and just north of the Town of Crested Butte.

RECOMMENDATION: The District serves a mountain community in Gunnison County. This proposed loan is necessary to build a new water treatment plant, pump, and main. The loan amount is large on a per tap basis, however, the high assessed value, commitment to increased user fees, and past success in the SRF program make the District a strong potential borrower. We therefore recommend the DWRF Committee approve a $23,175,000 leveraged loan to the Mount Crested Butte Water & Sanitation District on the condition that user fees are increased sufficiently to meet coverage ratio requirements.

68,811

0

20

40

60

80

100

120

Mt. Crested Butte (Town)MHI $56,2932014‐2018 ACS

Households

State MHI

Income in thousands

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PROJECT SUMMARY: System summary: The current system operates with one water treatment plant built in 1985. The East River pump house, built in 1976, supplies most of the raw water through a single pipeline up 600 vertical feet through avalanche terrain to a pre-sedimentation pond. The raw water is then gravity-fed to the water treatment plant with an actual capacity of 0.7 MGD. Reason/need: The current water treatment plant is unable to reliably meet peak day demands and has reached the end of its useful life. The East River pump house currently has no back up electrical supply and electrical service limitations only allow two of the three pumps to operate at a time. The existing raw water transmission line has no redundancy and is undersized for the buildout demand. System Compliance: The system is in compliance with the Colorado Primary Drinking Water Regulations.

CURRENT INDICATORS: 2016 2017 2018 Weak Average Strong Total Debt per Capita ($): 699 566 435 >$2,000 $1,000 - 2,000 X <$1,000Total + New Debt/Capita ($): 10,315 X >$2,000 $1,000 - 2,000 <$1,000Total Debt/Tap ($): 1,740 1,408 1,082 >$5,000 $2,500-5,000 X <$2,500Total Debt + New Debt/Tap ($): 25,684 X >$5,000 $2,500-5,000 <$2,500Current W&S Debt/Tap ($): 0 0 0 >$2,000 $1,000 - 2,000 X <$1,000Current W&S + New W&S Debt/Tap ($): 24,602 X >2,000 $1,000 - 2,000 <$1,000Total Debt/Assessed Value: 1.62% 1.30% 1.00% >50% 25-50% X <25%Total Debt + New W&S Debt/Assessed Value: 24% >50% 25-50% X <25%Total Debt/Actual Value: 0.17% 0.13% 0.09% >10% 5-10% X <5%Total Debt + New W&S Debt/Actual Value: 2.25% >10% 5-10% X <5%Curr. W&S Debt + New Debt/Tap/MHI: 46% X >20% 10-20% <10%W&S Fund Current Ratio (CA/CL): 948% 1,426% 7,635% <100% 100-200% X >200%W&S Fund Reserves/Current Expense: 294% 262% 332% <50% 50-100% X >100%W&S Operating Ratio (OR/OE): 82% 75% 123% <100% 100-120% X >120%Coverage Ratio (TR-OE)/DS: N/A N/A N/A <110% 110-125% X >125%Coverage Ratio (TR-OE)/DS Excluding Tap Fees: N/A N/A N/A <110% 110-125% X >125%Coverage Ratio with New Loan: 60% X <110% 110-125% >125%Coverage Ratio with New Loan Excluding Tap Fees: 35% X <110% 110-125% >125%Current Annual W&S Rates/MHI: 0.91% >3.0% 1.5-3.0% X <1.5%Current Water Rates + New Water Debt Service/MHI: 3.70% X >3.0% 1.5-3.0% <1.5%Operation and Maintenance Reserve: 332% <25% 25-50% X >50%

TOTAL: 7 0 14 FINANCIAL ANALYSIS: Of the twenty-one current indicators calculated, fourteen are rated strong, and seven are considered weak. Overall, the indicators illustrate that the proposed debt is large in proportion to the number of taps, but the assessed and actual value of district properties demonstrate high total financial capacity.

The District had been using a single fund for all revenue up until 2018. For consistency in analysis, property tax revenue was removed for all years previous to the 2018 audit year, as were AOS fee revenue and debt service. Operations and maintenance expenditures are not expected to increase as a result of this project. Based on 2018 financial information, the coverage ratio with the proposed loan is 60%. Additional annual revenue of about $710,876, or $62.89 per tap per month, would increase the coverage ratio to 110%. The District has increased monthly water user rates by approximately 43% since 2018, from an estimated $40.54 to $58.49. The District also increased sewer fees by 8% since 2018, from $43.52 to $47.07. This will generate $240,481 in additional revenue, bringing the coverage ratio up to 77%. The District charges availability of service (AOS) fees that may only be dedicated to debt service. It is partially repaying the existing 2001 WPCRF loan (described below) with these fees. The existing debt will be retired at roughly the same time this proposed debt would be incurred, and fully available by 2022. By counting the $170,097 AOS revenue collected in 2018 as revenue available for the new debt, and including the projected additional revenue from user fee increases, coverage ratio increases to 89% and additional revenue of $300,298 or $26.57 per tap per month to meet 110% coverage ratio. The District plans to increase water rates by 17% ($9.94) and sewer rates another 3% ($1.41) in 2021, according to its cash-flow projection submittal. These increases would bring the water user fees to $68.43 and sewer to $48.48 which would bring in an additional $126,153, coverage ratio to 90%, and a user fee increase of $15.41 per tap per month to meet 110% coverage ratio. The District reports it is saving its reserves for the projects discussed in the capital improvement section below.

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DESCRIPTION OF THE LOAN: A $23,175,000 leveraged loan with a twenty year term, two payments annually at an estimated interest rate of 2.0% results in an annual debt service of approximately $1,411,617. ECONOMIC ANALYSIS: Based on the State Demographer’s estimate of 2.49 persons per household, the District has a 2018 population estimated at 2,346, and has grown at an average annual rate of 0.6% since 2015. Gunnison County has experienced an increase of 1.6% in population since 2015 to 17,173 in 2018. The state population increased at an average annual rate estimated at 1.2% during the years 2015 to 2018. Gunnison County’s economy is fairly varied. Tourism is a strong component with abundant mountain activities such as mountain biking, hiking, nordic skiing, ice skating, and the Crested Butte Mountain Resort alpine ski area. The District is especially dependent upon the tourist economy, as it lies at the base of said resort’s ski lifts and serves much of the base area. The City of Gunnison is an important center for government administration while also serving as the location for Western Colorado University. A hospital is also located within the City. Employment is concentrated in accommodative services related to tourism and hospitality, while government and regional services are also important employment sectors. Residents and employees generally commute to or for employment within the Town of Mount Crested Butte; very few people both live and work in the Town. The District reports the region’s largest employers consist of Western Colorado University with 311 employees, Crested Butte Mountain Resort with 250 employees, Gunnison Valley Health with 215 employees, Gunnison Watershed School District with 210 employees, and Gunnison County with 200 employees. The District reports that no single customer represents more than 3% of revenue. ORGANIZATIONAL ANALYSIS: Bond Rating The District’s debt has not been rated by Fitch, Moody's, or Standard & Poor’s in the last five years. Section 37-60-126(2) C.R.S. (Water Conservation Planning) The District does not sell more than 2,000 acre-feet of water per year. Organizational Structure The District is a Title 32-Article 1 special district governed by a 5-member board of directors and was organized in 1963. The District provides water and wastewater services. Approximately 15 full-time employees staff the water and sewer utilities, including administrative staff. The water utility is overseen by the District Manager, who reports to the Board.

• The District has generally been in compliance with Colorado statutory budgeting and auditing requirements for the past five years. • The District maintains general liability insurance coverage through the Colorado Special Districts Property & Liability Pool. • There are currently no pending lawsuits against the District. • There have been no recall elections in the last ten years.

Technical/Managerial/Financial (TMF) The WQCD and DLG conducted a review of the District’s technical, managerial and financial capacity to operate the water system. The review resulted in the following mandatory recommendation:

•DLG found that the District’s revenues were insufficient to meet coverage ratio requirements.

Capital Improvement Plan As part of the application process, the District submitted a capital improvement schedule, which anticipates several maintenance projects over the next five years, with larger projects in the 2026-2030 timeframe. Excluding this proposed project, capital outlay of $1,603,000 is projected through 2025 to be paid for with existing reserves or revenue. Larger projects from 2026 to 2030 may be paid with a combination of grants, loans, and reserves, and are estimated at $6,100,000 for water projects and $3,050,000 for sewer projects. Intergovernmental There is an amended Memorandum of Understanding between the District and Meridian Lake Park Corporation (MLPC). MLPC is a homeowners association of about 180 homes, and is included in the tap count. The MLPC is included in the District but has a stand-alone water treatment and distribution system. The agreement clarifies the proportions of reservoir use for the MLPC & District; pro rata use of

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MLPC water, if necessary in the future; requires the District to notify MLPC members if the District charges them for capital improvements that occur outside the MLCP; requires the District to develop annual accounting for water stored in Meridian Lake Reservoir No. 1; finally, that the assessment of capital costs associated with repair or replacement of the reservoir be proportionate to the MLPC’s storage rights. The MOU may be further amended, if necessary. REVENUE ANALYSIS: The District had collected all revenue in a single fund up until the 2017 audit. In 2018, the District began collecting all property tax in a separate (“Government”) fund. To control for this, property tax revenue was removed from Total Revenue through 2017. As a result, net operating income is negatively affected for the years 2014 through 2017. The District’s existing SRF debt was repaid partially with a bond mill levy and partially by AOS fees during the period examined. Debt service repaid by property tax has been excluded from the Trends and Indicators. AOS revenue and the corresponding AOS debt service portion are also excluded because they may only be used for debt repayment. Reserves have declined as the result of $6,775,899 in capital outlay since 2014.

TRENDS 2014 2015 2016 2017 2018 2019 2020 Monthly Water Rate ($) 32.15 33.15 34.50 35.88 40.54 49.14 58.49Monthly Sewer Rate ($) 36.15 37.25 38.75 40.30 43.52 45.26 47.07Residential Water Tap Fee ($) 5,710 5,882 6,117 6,362 6,566 6,697 6,965Residential Sewer Tap Fee ($) 10,530 10,846 11,280 11,731 12,106 12,348 12,842Total W&S Revenue ($) 2,158,613 2,202,066 2,717,696 2,552,723 2,693,903 Tap/Development Fees ($) 266,696 116,558 502,915 449,844 344,878 W&S Operating Revenue ($) 1,846,295 1,885,624 2,002,597 2,062,705 2,282,195 W&S Operating Expenses ($) 2,065,368 2,226,080 2,432,364 2,767,111 1,852,000 W&S Net Operating Income ($) -219,073 -340,456 -429,767 -704,406 229,156 W&S Debt ($) 0 0 0 0 0 Total Debt ($) 2,189,760 1,909,814 1,623,443 1,326,801 1,019,372 W&S Fund Reserves ($) 10,237,279 9,791,813 7,160,743 7,262,927 6,147,611

Ratios 2014 2015 2016 2017 2018 Average Operating Revenue as % of Total Revenue 87% 93% 80% 82% 86% 86% Operating Revenue as % of Expenses 98% 92% 89% 81% 112% 94% Tap Fee Revenue as % of Total Revenue 11% 5.29% 19% 17% 12% 13%

‐$1,000,000

‐$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2014 2015 2016 2017 2018

W&SOperatingRevenue ($)

W&SOperatingExpenses ($)

W&S NetOperatingIncome ($)

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Recent Rate Increases The District’s most recent water user fee increase of $9.35 to $58.49 was implemented on January 1, 2020. The sewer user fee was also increased by $1.81 to $47.07. User Charges The District’s current monthly water rate is estimated at $58.49 compared to the 2018 estimated state median of $47.14. The District’s average monthly water rate is based on typical residential consumption of 5,200 gallons per month. Residential users pay a $52.72 base rate up to 4,000 gallons and a volume charge of $4.81 per 1,000 gallons for consumption from 4,001 to 11,000 gallons. There is also a charge of $6.01 per 1,000 gallons for consumption of 11,001 to 20,000 gallons and $8.41 for consumption of over 20,001 gallons. The District’s current monthly residential sewer rate is a flat $47.07 compared to the 2018 estimated state median of $33.35. Users in Meridian Lake Park pay an additional surcharge of $36.27 per month for water services. The District assesses availability of service fees (AOS) for unconnected properties within 100 feet of a water or sewer main. These fees may only be dedicated to principal and interest. Contributed Capital Revenue from tap fees has ranged from $116,558 to $502,915 and has averaged 13% of total revenue during the last five years. The District’s most recent water tap fee rate increase occurred in 2020.

Residential water tap fees are $6,965. Residential sewer tap fees are $12,842.

DEBT as of December 31, 2018

Executed Lender Term End Pledge Outstanding Interest Rate Annual payment

2001 WPCRF 2021 General Obligation $1,019,371 4% $388,799

LOAN COVENANTS: The District will have to meet the Authority’s 110% rate covenant, 3-month operations and maintenance reserve fund covenant and the 110% additional bonds test (if applicable) on an annual basis.

The District has met the Loan Covenants on its WPCRF leveraged loan dated 2001 with the Authority and has had no debt service payment issues.

Prepared by: Joseph McConnell

Date: February 18, 2020

Current System Utilization Current Fee Summary Usage Revenue Tap size Water user/tap fees Sewer user/tap fees Residential 63% 73% ¾” $58.49/$6,965 $47.07/$12,842 Non-residential (per EQR) 37% 27% ¾” $58.49/$6,965 $47.07/$12,842

Project # Project No. 170271D-Q Cost Categories: 152 Treatment: 50%

153 Transmission Lines: 20% 154 Source: 30%

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2018 Population (Estimated) 2,346

Number of W&S Taps (or customers) - 2018 942

Total 2018 Assessed Valuation $102,357,000

Actual Value of all Real Property (2018) $1,076,838,000

Median Household Income (MHI) $53,654

Monthly Water Rate (2018) $40.54

W&S Operating Revenue (2018) $2,282,195W&S Total Revenue (2018) [May include non-operating revenue, such as contributed capital, tap & system development fees, interest income, S.O. tax and property tax. Excludes one-time capital grants.] $2,693,903

W&S Tap and System Development Fee Revenue (2018) $344,878

W&S Operating Expense (2018) $1,852,000

W&S Current Expense (2018) $1,852,000

W&S Debt (2018) $0

Total Debt (2018) $1,019,372

W&S Reserves [2018 current assets minus current liabilities] $6,147,611

All Fund Reserves [2018 current assets minus current liabilities] $5,758,812

W&S Debt Service (2018) $0

New W&S Debt (requested DWRF loan amount) $23,175,000

Requested DWRF Loan Term 20

Requested DWRF Loan Interest Rate 2.00%

New Loan's Annual W&S Debt Service [two payments annually] $1,411,617

February 18, 2020

DWRF Credit ReportMt. Crested Butte Water & Sanitation District, Gunnison County, CO

Using most recent data available(Census, audits, local records)

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1 Total Debt $1,019,372 ÷ Population 2,346 = $435

New Debt $23,175,000 ÷ Population 2,346 = $9,880

Total Debt + New Debt $24,194,372 ÷ Population 2,346 = $10,315

2 Total Debt $1,019,372 ÷ Number of Taps 942 = $1,082

New Debt $23,175,000 ÷ Number of Taps 942 = $24,602

Total Debt + New Debt $24,194,372 ÷ Number of Taps 942 = $25,684

3 Total Debt $1,019,372 ÷ Assessed Value $102,357,000 = 1.00%

New Debt $23,175,000 ÷ Assessed Value $102,357,000 = 22.64%

Total Debt + New Debt $24,194,372 ÷ Assessed Value $102,357,000 = 23.64%

4 Total Debt $1,019,372 ÷ Actual Value $1,076,838,000 = 0.09%

New Debt $23,175,000 ÷ Actual Value $1,076,838,000 = 2.15%

Total Debt + New Debt $24,194,372 ÷ Actual Value $1,076,838,000 = 2.25%

5 Current Water Debt $0 ÷ Number of Taps 942 = $0

(Current Water Debt + NewWater Debt)/Number of Taps $24,602 ÷ MHI $53,654 = 45.85%

6 Current Ratio [CA/CL]

Current Assets $6,229,198 ÷ Current Liabilities $81,587 = 7635%

7 Reserve/Expense Ratio

Reserves $6,147,611 ÷ Current Expenses $1,852,000 = 332%

8 Operating Ratio [OR÷OE]

Operating Revenues $2,282,195 ÷ Operating Expenses $1,852,000 = 123%

CurrentIndicators(2018)

Mt.CrestedButteWater&SanitationDistrict

(Water&Sewer)

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9 Coverage Ratio [(TR - OE)/DS]

22 $2,693,903 -

minus Operating Expenses $1,852,000

= $841,903 ÷ Current Debt Service $0 = N/A

10Coverage Ratio Excluding Tap & Development Fee Revenue $841,903

minus Tap and Dev. Fee Revenue $344,878

= $497,025 ÷ Current Debt Service $0 = N/A

11 Projected Coverage Ratio

Total Revenues $2,693,903

minus Operating Expenses $1,852,000

= $841,903Total Debt Service (with new loan) $1,411,617 = 60%

12Projected Coverage Excluding Tap & Dev. Fee Revenue $841,903

minus Tap & Dev. Fee Rev. $344,878

= $497,025 ÷Total Debt Service (with new loan) $1,411,617 = 35%

13 Current Debt Service $0 ÷ Number of Taps 942 = $0.00

Annual New Water Debt Service $1,411,617 ÷ Number of Taps 942 = $1,498.53

142018 Annual Water Rate (monthly rate x 12) $486.48 ÷ MHI $53,654 = 0.91%

2018 Annual Water Rate + New Annual Debt Service per Tap $1,985.01 ÷ MHI $53,654 = 3.70%

15 Current 2018 Monthly User Charge $40.54

Debt Service on DWRF/2018 Taps/month $124.88

Total $165.42

16 Operation and Maintenance Reserve

Reserves $6,147,611 ÷ Operating Expenses $1,852,000 = 332%

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Resolution No. 2020-3

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MT. CRESTED BUTTE WATER AND SANITATION DISTRICT

ESTABLISHING WASTEWATER ENTERPRISE

WHEREAS: A. The Mt. Crested Butte Water & Sanitation District (the “District”), in the County of Gunnison, State of Colorado, is a quasi-municipal corporation and political subdivision of the State of Colorado, duly organized and existing under the Constitution and the laws of the State of Colorado, particularly the Special District Act, Title 32, Article 1, Colorado Revised Statutes (C.R.S.); and B. The District is a “district” as that term is used in C.R.S. § 37-45.1-102, and is authorized to establish a water activity enterprise pursuant to Title 37, Article 45.1, C.R.S.; and C. The Board of Directors of the District has determined it to be in the interests of the District and of the public to establish such a water activity enterprise, to be called the “Mt. Crested Butte Wastewater Enterprise,” for purposes of providing wastewater services to the citizens of the District. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Mt. Crested Butte Water & Sanitation District that: 1. The District hereby establishes the Mt. Crested Butte Wastewater Enterprise (the “Enterprise”) for the purpose of carrying out a business separate and distinct from the District’s governmental activities. The Enterprise shall be a business wholly owned by the Mt. Crested Butte Water & Sanitation District. 2. The business of the Enterprise is to conduct any water activity, as defined in C.R.S. § 37-45.1-102(3), including but not limited to the provision of wastewater services within the District and pursuant to such agreements for extra-territorial service as the Board may deem proper, the acquisition, construction, operation, repair, and replacement of such wastewater projects or facilities, and other property rights, as may be necessary or convenient for the purpose of conducting such water activities. 3. The Board of Directors of the District shall be the governing body of the Enterprise. 4. The Enterprise shall be entitled to exercise all legal authority of a water activity enterprise as set forth in Title 37, Article 45.1, C.R.S., or any other applicable law. The Enterprise is authorized to contract with any other person or entity, including other districts or water activity enterprises. 5. The Enterprise may exercise the District’s legal authority relating to water activities in accordance with CRS § 37-45.1-103(4) and other applicable law. 6. The Enterprise is authorized to issue its own revenue bonds, and to incur other obligations to be paid or repaid solely from Enterprise revenues, in accordance with C.R.S. § 37-45.1-104. 7. The Enterprise shall have no power to levy any tax subject to Section 20(4) of Article X of the Colorado Constitution, nor to enter into any general obligation of District revenues or funds without a vote of the District’s taxpayers authorizing such general obligation.

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8. The Enterprise shall receive less than ten percent of its annual revenue in “grants” (as that term is defined in C.R.S. § 37-45.1-102(2)) from Colorado state and local governments combined. The Enterprise may enter into contracts with the District or with any other state or local government to provide services to them through the Enterprise’s activities. Payments to the Enterprise for such services do not constitute “grants” within the meaning of the statute. 9. The Enterprise shall derive its revenues from any sources authorized by law, including, but not limited to, revenues from wastewater usage fees, tap fees, and availability of service fees charged by the District for wastewater service. Such revenues shall be collected and deposited to the Mt. Crested Butte Wastewater Enterprise Fund (“Enterprise Fund”), which is hereby established, to be expended for activities and obligations of the Enterprise. 10. All revenue, expenditures, assets, and liabilities of the Enterprise shall be accounted for in the Enterprise Fund, which shall be kept and maintained separately from general funds and reserve accounts of the District, and any other District enterprise which may hereafter be established. 11. The District’s staff, accountants, agents, and other consultants are directed to implement and maintain accounting and budgeting procedures for the Enterprise, in accordance with generally accepted accounting and budgeting principles, which are necessary and proper to maintain and operate the Enterprise in a manner consistent with this Resolution, including procedures for allocating shared staff salaries, benefits, and wages between the District and the Enterprise. 12. The District may authorize the transfer of assets, liabilities, and contractual rights to the Enterprise in accordance with Article 45.1 of Title 37 of the Colorado Revised Statutes. 13. The Enterprise shall commence operation immediately upon adoption of this Resolution. 14. The officers of the District are authorized and directed to take all action necessary or appropriate to effectuate the provisions of this Resolution. 15. All orders, bylaws, and resolutions, or parts thereof, in conflict with this Resolution are hereby repealed to the extent of the conflict. APPROVED AND ADOPTED by the Board of Directors of the District on this 10th day of March 2020. MT. CRESTED BUTTE WATER AND SANITATION DISTRICT, A Colorado Special District BY: Chairperson: Brian Brown ATTEST: Board Secretary: Perry W. Solheim

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MEMORANDUM

To: Mt. Crested Butte Water & Sanitation District Board of Directors

From: Mike Fabbre, District Manager

Date: March 5, 2020

Subject: District Manager Report

(3-WW-C) Paradise Lift Station Enclosure A secondary sub-contractor still has not been paid by the sub-contractor. The statutory 90 day filing timeframe has passed and releases the District from any future claims. We are making arrangements to release the 5% retainage amount the District has been withholding and close out the project. As-builts for the construction project have been red-lined and the final set has been issued by the engineer.

(202001) Clarifier Building Significant progress has been made over the last month but the project is still behind schedule. The District has been negotiating with the contractor over the additional costs due to weather and equipment issues versus the potential deductions from liquidated damages due to the project falling behind schedule. We still anticipate having the clarifier on-line for spring run-off.

North Village Reservoir The District owns a 700-acre foot conditional water right decreed in 1983. The dam structure for this water right would be located directly West, Northwest of Mt. Crested Butte Town Hall. The maximum water level for this reservoir would encumber portions of the potential North Village development project.

WWTF Draft Discharge Permit The Water Quality Division notice bulletin now includes the MCBWSD request for an adjudicatory hearing, but does not indicate any timeframe. The District’s legal counsel has had a few follow up conversations, but we are in a wait and see mode until a timeframe has been established. The District has moved forward and installed additional flow measuring equipment for low flow conditions on Woods Creek. A Parshall flume was installed on the Creek and a flow sensor was installed on the effluent discharge pipe. A mass balance equation between the two readings will be used to validate the flow measurements that can be physically witnessed on Woods Creek.

(102001) WTP Expansion Project The CWRPDA loan has been placed on the consent agenda for their 3/6/20 meeting and details of the loan application are contained earlier in this packet. JVA engineers will be conducting a 90% design presentation during the District’s March Board meeting.

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General Operations Water Operations February 2020

MCB WTP Production for February 7.44 MG MCB WTP Production for January 7.48 MG Peak day of Month: 2/16/2020 0.366 MG Average Daily Plant Run Times 6.8 hours/day Average Daily Flow Total 0.256 MG/day MLP WTP Production for February 0.391 MG MLP WTP Production for January 0.413 MG Peak Day for Month: 2/4/2019 0.026 MG Average Daily Plant Run Times 3.0 hours/day Average Daily Flow Total 0.013 MG/day

Significant / Unusual Activities: • MLP Lead & Copper compliance samples analyzed, all well within compliance.• CDPHE had a site visit at the MLP WTP for a DOVE (Disinfection Outreach and Verification Effort)

inspection. Through this process the District can adopt a new method for reporting 4-Log virus removaland reduce our chlorine residual leaving the WTP.

• Snowcat is back online with a repaired fuel tank• A water leak was called in on Anthracite Drive, and was discovered to be coming from a home. The

mechanical room door was left open, freezing the plumbing• Illegal plumbing was discovered by operators in a home in the Goldlink Subdivision during an MXU

replacement. Homeowner will replumb the meter ASAP• EcoLab performed jar testing for a coagulant option at the new WTP

Major Problem(s): • A faulted filtrate flow sensor shut down a skid at the MLP WTP. Operators did an excellent job

troubleshooting, installing a new transmitter, and placing skid back online. The redundant skid allows usto make water during an unexpected shutdown. (photo #1)

• A frozen fire hydrant was discovered in MLP. It was quickly thawed out and put back in service, thanks toour new Steam Chief! (photo #2)

Next Month’s Major activities: • SCADA Windows 10 updates• MCB Lead and Copper sampling• MCB and MLP yearly compliance sampling• Snow removal on storage tank roofs, and quarter tank inspections• Instrument calibration, MXU installation, and BPCCC work

Photo #1 Photo #2Kyle Koelliker will be at the meeting to answer any questions

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Wastewater Operations February 2020

Gallons Wastewater Treated February 5.9 MG Gallons Wastewater Treated January 5.9 MG Average Treated Wastewater Flow 0.20 MGD Peak Treated Wastewater Flow 0.32 MGD Peak Treated Wastewater Date February 15 Gallons Sludge Hauled to Town of CB 27,000 gal.

Significant / Unusual Activities: • Snow removal at the facility and throughout the collection system• Installed new guide rail at Overlook lift station• Cleaned 128 UV light bulbs• Cleaned out aeration basin #3• Put aeration basin #3 on-line• EC Electric installed new 450-amp breaker for the UV building• Timberline Electrical Controls was on site to install Windows 10 upgrade to SCADA• Mock emergency exercise at Grey Fox lift station

Major Problem(s): • Screw pump at headworks got clogged and over flowed (Photo #1)

Next Month's Major Activities: • Install rebuilt odor scrubber fan• Install air release valve (ARV) on Saddle Ridge force main• Provide assistance as needed for the new clarifier construction project (Photo #2)

Photo #1 Photo#2

Bryan Burks will be at the meeting to answer any questions

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Stream Flow Information, Snow Pack, & Weather

Stream flows from the USGS water resources web interface Values below for March 3, 2020.

Stream & Location Current Flow (CFS) Mean Median EAST RIVER BELOW CEMENT CREEK NEAR CRESTED BUTTE, CO Ice 56.0 55.0

SLATE RIVER ABOVE BAXTER GULCH @HWY 135 NEAR CRESTED BUTTE, CO Ice --- ---

COAL CREEK ABOVE MCCORMICK DITCH AT CRESTED BUTTE, CO 3.69 --- ---

TAYLOR RIVER BELOW TAYLOR PARK RESERVOIR, CO. 97.9 67.0 65.0

OHIO CREEK NEAR BALDWIN, CO 18.1 15.0 16.0

GUNNISON RIVER NEAR GUNNISON, CO Ice 215 210

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Weather

The National Oceanic and Atmospheric Administration One-Month Outlook for MCBWSD is Indicating average temperatures and average precipitation for our region. Weather through the mid-month includes a mix of possible clouds, snow, and sun with temperatures ranging from -10 to 40 degrees Fahrenheit.

3/2/2020 Meridian Lake Park Reservoir No. 1 is currently at 89% of capacity. Meridian Lake Reservoir (Long Lake) is currently at 92% of capacity. Blue Mesa Reservoir is currently at 65% of capacity. Blue Mesa Reservoir is up 46.59 feet from one year ago, and 35.82 feet below full pool. Taylor Park Reservoir is currently at 68% of capacity. Lake Powell is currently at 50% of capacity. Lake Mead is currently at 44% of capacity.

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Colorado SNOTEL Snow/Precipitation Update Report Based on Mountain Data from NRCS SNOTEL Sites

**Provisional data, subject to revision** Data based on the first reading of the day (typically 00:00) for Monday, March 02, 2020

Basin Site Name

Elevation (ft)

Snow Depth

(in)

Snow Water Equivalent

Water Year-to-Date Precipitation

Current (in)

Median (in)

% of Median

Current (in)

Average (in)

% of Average

GUNNISON RIVER BASIN

Butte 10,160 45 10.4 11.0 95 9.5 13.1 73 Schofield Pass 10,700 75 23.4 25.4 92 16.9 26.0 65

Park Cone 9,600 35 8.4 8.4 100 9.4 9.7 97

Upper Taylor 10,640 44 10.5 N/A * 11.9 N/A *

Porphyry Creek 10,760 55 15.7 12.2 129 13.9 11.9 117

Basin Index (%) 94 79 * = Analysis may not provide valid measure of condition

GUNNISON RIVER BASIN consists of 16 SNOTEL sites. Top 5 representative MCBWSD sites listed above.

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www.jvajva.com

M E M O

TO: Mike Fabbre DATE: March 3, 2020

FIRM: Mt. Crested Butte Water and Sanitation District JOB NO. 1028e

ADDRESS: 100 Gothic Road PROJECT: MCBWSD Water Treatment Plant Expansion Project

Mt. Crested Butte, CO 81225 SUBJECT: March 2020 Monthly Project Update

The purpose of this memo is to update you and the District Board on the Water Treatment Plant (WTP) Expansion Project and activities completed in the month of February 2020. The summary below is intended to be brief and can be elaborated on if you or any of the Board members have specific questions or concerns.

The Environmental Report was finalized with agency correspondence letters and submitted to the Colorado Department of Public Health and Environment (CDPHE) on February 25, 2020. We anticipate receiving a Finding of No Significant Impact (FONSI) for the project from CDPHE in March.

JVA submitted the 90 percent drawings and specifications to the District and CMAR Contractor on February 28, 2020 for review and comment. Moltz Construction, the CMAR Contractor, will work throughout the month of March to develop their Guaranteed Maximum Price (GMP) for the project. A 90 percent design workshop is scheduled for March 10th to discuss comments and gather additional input from District staff and the CMAR Contractor. JVA will be submitting 90 percent documents to the Crested Butte Fire Protection District for review and approval in March.

JVA submitted the Basis of Design Report (BDR) to CDPHE on November 26th for review. We have provided responses to preliminary review comments and expect to receive an official Request for Information (RFI) response from CDPHE in March.

JVA and the District have been actively working with the Town of Mt. Crested Butte to vacate the lot line at the existing WTP and submit the Conditional Use Application and supporting materials for the new WTP and Administration building. At the upcoming March 17th Council meeting, the Town will consider approving the Lot Line Vacation. A Design Review meeting with the Planning Commission after the Conditional Use process is over is planned for late April or May.

Upcoming tasks include the Town of Mt. Crested Butte planning approval process, 90% design workshop to review the 90% drawings and specifications with the District and CMAR and reviewing the GMP from the CMAR contractor.

The project remains on schedule and within budget. We appreciate the opportunity to work with the District on this important project. District staff have been actively involved in weekly meetings and very responsive to our design questions and requests for direction. Please let me know if you or anyone from the District Board has any questions or concerns, we can assist with.

Sincerely,

Signed:

Cooper Best, Regional Manager

Boulder Fort Collins Winter Park Glenwood Springs Denver 1319 Spruce Street Boulder, CO 80302 303.444.1951

25 Old Town Square Suite 200 Fort Collins, CO 80524 970.225.9099

PO Box 1860 47 Cooper Creek Way Suite 328 Winter Park, CO 80482 970.722.7677

817 Colorado Ave Suite 301 Glenwood Springs, CO 81601 970.404.3100

1512 Larimer Street Suite 710 Denver, CO 80202 303.444.1951

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MT CRESTED BUTTE WATER & SANITATION DISTRICT Water Billing and Usage

2018 $ Billed

2019 $ Billed

2020 $ Billed

2018 (000) gallons

2019 (000) gallons

2020 (000) gallons

$ +/- 2018-2019

$ +/- 2019-2020

JAN 86,820.95$ 108,187.75$ 124,440.26$ 7,717 8,860 7,884 21,366.80$ 16,252.51$ FEB 87,196.25 106,780.66 120,200.86 7,004 7,374 6,021 19,584.41 13,420.20 MAR 86,569.77 103,409.02 6,531 7,172 16,839.25 APR 86,825.07 100,942.41 4,094 4,612 14,117.34 MAY 87,217.60 98,046.24 3,839 3,280 10,828.64 JUN 97,904.02 105,679.39 12,838 6,643 7,775.37 JUL 98,650.41 134,579.56 14,996 14,112 35,929.15

AUG 98,508.31 138,113.00 14,313 15,213 39,604.69 SEP 92,759.14 120,246.00 9,895 10,982 27,486.86 OCT 87,157.76 98,350.00 4,161 4,412 11,192.24 NOV 87,872.08 97,373.52 3,846 3,315 9,501.44 DEC 87,375.57 97,011.20 4,369 4,686 9,635.63

1,084,856.93$ 1,308,718.75$ 244,641.12$ 93,603 90,661 223,861.82$ 29,672.71$

0

5,000

10,000

15,000

20,000

25,000

30,000

$-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

$ Billed / _____________

2018 2019 2020 2018 2019 2020

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MT CRESTED BUTTE WATER & SANITATION DISTRICT2020 FINANCIAL RESULTS

PERCENTREVENUE Water Wastewater General Fund Total YEAR-TO-DATE Water Wastewater General Fund Total 2020 of Y-T-D

PROPERTY TAXES -$ -$ 19,675$ 19,675$ 27,690$ -$ -$ 1,153,684$ 1,153,684$ 2.40%TRANSFERS IN(OUT) - (0) 36,414 36,414 (72,828) - 0.00%TAP FEES 50 50 100 4,162 140,000 210,000 - 350,000 1.19%USER FEES 120,201 101,192 221,393 447,085 1,580,382 1,213,820 - 2,794,202 16.00%AVAIL SERVICE FEES - - - - 82,811 94,016 - 176,827 0.00%INTEREST INCOME - - 4,661 4,661 10,440 - - 60,000 60,000 17.40%MISC & OTHER INCOME 3,625 105 - 3,730 4,190 5,000 5,000 - 10,000 41.90%MLP SURCHARGE 85/15 4,099 - - 4,099 8,198 77,000 - - 77,000 10.65%

TOTAL REVENUE 127,975 101,347 24,336 253,658 501,764 1,921,607 1,559,250 1,140,856 4,621,713 10.86%

EXPENDITURES PERCENTOperations Water Wastewater General Fund Total YEAR-TO-DATE Water Wastewater General Fund Total 2020 of Y-T-DChemicals - - - - - 50,000 8,000 - 58,000 0.00%Laboratory 433 1,861 - 2,294 6,217 50,000 100,000 - 150,000 4.14%Operating Equipment/Supplies 1,962 308 - 2,270 435 50,000 30,000 - 80,000 0.54%Safety Equipment 190 120 - 310 369 5,000 5,000 - 10,000 3.69%Uniforms - - - - 430 5,000 5,000 - 10,000 4.30%Outside Services 65 115 - 180 270 15,000 - - 15,000 1.80%Repairs & Maintenance 1,747 4,131 - 5,878 11,388 150,000 120,000 - 270,000 4.22%Utilities 8,967 13,164 - 22,131 22,131 120,000 140,000 - 260,000 8.51%ATAD Sludge TCB - - - - - 78,000 - 78,000 0.00%MLP Operations 3,370 - - 3,370 4,117 45,000 5,000 - 50,000 8.23%Legal 5,314 8,485 - 13,799 13,799 25,000 25,000 - 50,000 27.60%Consultants 3,326 9,132 - 12,458 12,458 80,000 115,000 - 195,000 6.39%Water Grant 2,000 - - 2,000 2,000 2,000 - - 2,000 100.00%Engineering - - - - - 25,000 25,000 - 50,000 0.00%Fuel/Vehicle Expense 1,064 854 - 1,918 8,269 25,000 25,000 - 50,000 16.54%Office Admin 8,534 1,067 4,959 14,561 95,030 45,000 45,000 282,000 372,000 25.55%Salaries, Taxes & Benefits 35,708 32,728 37,918 106,353 228,683 464,650 401,650 446,700 1,313,000 17.42%Bond Principal & Interest/Fees - - 188,828 188,828 188,828 - - 377,656 377,656 50.00%County Treasurer Fees - - 357 357 370 - - 34,500 34,500 1.07%

TOTAL OPERATIONS EXPENDITURES 72,680 71,965 232,062 376,707 594,791 1,156,650 1,127,650 1,140,856 3,425,156 17.37%

Net Operating Results (Excl. CapEx) 55,295 29,382 (207,726) (123,050) (93,027) 764,957 431,600 0 1,196,557

Capital Improvements 94,949 1,008 - 95,957 133,913 8,244,000 734,000 0 8,978,000CWRPDA Loan Draws - - - - - (7,800,000) - - (7,800,000) Net CapEx 94,949 1,008 - 95,957 133,913 444,000 734,000 - 1,178,000

TOTAL ALL EXPENDITURES 167,629 72,973 232,062 472,664 728,704 1,600,650 1,861,650 1,140,856 4,603,156

NET EXCESS(DEFICIT) OF REV/EXP (39,654)$ 28,374$ (207,726)$ (219,006)$ (226,940)$ 320,957$ (302,400)$ -$ 18,557$

17% Year Elapsed

February, 2020BUDGET 2020

BUDGET 2020

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Starting date Jan-20Cash balance alert minimum 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

2020 BUDGET Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 TotalUnrestricted Cash 3,067,438 3,067,438 3,067,438

REVENUE Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 TotalPROPERTY TAXES 952,945 8,015 19,675 27,690DEBT SERVICE TAXES 200,739 0TAP FEES 350,000 4,062 100 4,162USER FEES 2,794,202 225,692 221,393 447,085AVAIL SERVICE FEES 176,827 0 0 0INTEREST INCOME 60,000 5,779 4,661 10,440MISC INCOME 10,000 460 3,730 4,190MLP SURCHARGE 77,000 4,099 4,099 8,198CWRPDA Loan Draw 7,800,000 0 0 0TOTAL CASH RECEIPTS 12,421,713 248,107 253,658 0 0 0 0 0 0 0 0 0 0 501,765Total cash available 15,489,151 3,315,545 3,321,096 0 0 0 0 0 0 0 0 0 0

EXPENSES Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 TotalCHEMICALS 58,000 0 0 0LABORATORY 150,000 3,923 2,294 6,217OPERATING EQUIP / SUPPLIES 80,000 1,174 2,270 3,444SAFETY 10,000 59 310 369UNIFORMS 10,000 430 0 430OUTSIDE SERVICES 15,000 90 180 270R&M 270,000 5,510 5,878 11,388UTILITIES 260,000 0 22,131 22,131ATAD SLUDGE 78,000 0 0 0MLP OPERATIONS 50,000 746 3,370 4,116LEGAL 50,000 0 13,799 13,799WATER GRANT 2,000 0 2,000 2,000OFFICE ADMIN 372,000 80,469 14,561 95,030SALARIES / BENEFITS 1,313,000 122,329 106,353 228,682VEHICLES / FUEL 50,000 6,352 1,918 8,270CTY TREASURER FEES 34,500 13 357 370CONSULTANTS 195,000 0 12,458 12,458ENGINEERING 50,000 0 0 0

0SUBTOTAL CASH PAID OUT 3,047,500 221,095 187,879 0 0 0 0 0 0 0 0 0 0 408,974

00

BOND EXPENSES 377,656 0 188,828 0 0 0 0 0 0 0 0 0 188,828CAPITAL IMPROVEMENTS 8,978,000 37,956 95,957 133,913

0SUBTOTAL 9,355,656 37,956TOTAL CASH PAID OUT 12,403,156 259,051 472,664 0 0 0 0 0 0 0 0 0 0 731,715

Change in Cash (10,944) (219,006) - - - - - - - - - - (229,950)

Unrestricted Cash on hand (end of month) 3,085,995 3,056,494 2,848,432 0 0 0 0 0 0 0 0 0 0 2,837,488

Cash Flow ProjectionMT CRESTED BUTTE WATER & SANITATION DISTRICT

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CHECK REPORT - FEBRUARY 2020

Check Check

Date Number Payee or Description Amount

2/7/2020 1 Xfer NOW to DMMA 200,000.00$

2/7/2020 15286 TOWN OF MT. CRESTED BUTTE 500.00$ W CAP IMP (10200105)

2/7/2020 15287 CRESTED BUTTE ACE HARDWARE 556.47$

2/7/2020 15288 GUNNISON CO CLERK & RECORDER 13.00$

2/7/2020 15289 TOWN OF MT. CRESTED BUTTE 350.00$ W CAP IMP (10200105)

2/14/2020 15290 ACZ LABORATORIES, INC 273.00$

2/14/2020 15291 AIR COMPRESSOR SERVICE 310.96$

2/14/2020 15292 ALPHA MECHANICAL SOLUTIONS LLC 1,273.10$ REPAIR & MAINT - WW

2/14/2020 15293 ALPINE ENVIRONMENTAL CONSULTANTS LLC 2,835.00$ CONSULTANTS (102032/202032)

2/14/2020 15294 ALPINE OFFICE SYSTEMS, INC. 146.28$

2/14/2020 15295 AMAZON CAPITAL SERVICES 48.66$

2/14/2020 15296 ATMOS ENERGY 2,990.19$ UTILITIES

2/14/2020 15297 BUREAU OF RECLAMATION 3,148.74$ PERMITS - W

2/14/2020 15298 CASELLE, INC. 989.00$

2/14/2020 15299 CENTURYLINK 704.15$

2/14/2020 15300 CITY OF GUNNISON 88.00$

2/14/2020 15301 CRESTED BUTTE NEWS INC 421.15$ PUBLICATIONS ($152.55 10200105)

2/14/2020 15302 CRESTED BUTTE RENTAL CENTER 93.00$

2/14/2020 15303 EC ELECTRIC, INC. 4,248.75$ REPAIR & MAINT

2/14/2020 15304 ENERGY LABORATORIES, INC. 1,272.00$ LAB - SAMPLING

2/14/2020 15305 FASTENAL COMPANY 120.08$

2/14/2020 15306 GRAINGER 667.41$

2/14/2020 15307 GUNNISON COUNTY ELECTRIC ASSOC 20,759.27$ UTILITIES

2/14/2020 15308 HACH COMPANY 1,797.27$ LAB & OP SUPPLIES

2/14/2020 15309 JOHN ROBERTS MOTOR WORKS CO. 165.38$

2/14/2020 15310 KERN JR., SHAWN P. 13.10$

2/14/2020 15311 LAW OF THE ROCKIES, LLC 3,344.88$ LEGALS

2/14/2020 15312 LAWSON PRODUCTS, INC 831.07$

2/14/2020 15313 PAPER-CLIP LLC 395.89$

2/14/2020 15314 PARISH OIL CO., INC. 133.11$

2/14/2020 15315 PLUMMER 1,007.50$ WW CAP IMP (20200102)

2/14/2020 15316 PORZAK BROWNING & BUSHONG LLP 8,485.00$ LEGALS - WW DRAFT PERMIT

2/14/2020 15317 POSTMASTER 240.00$

2/14/2020 15318 UPS 76.30$

2/14/2020 15319 USA BLUE BOOK 292.85$

2/14/2020 15320 UTILITY NOTIFICATION CNTR CO 4.47$

2/14/2020 15321 WASTE MANAGEMENT - GUNNISON/CB 175.66$

2/14/2020 15322 WESTERN SLOPE CONNECTION, INC. 42.50$

2/14/2020 15323 XTREAMINTERNET 159.00$

2/14/2020 15324 CO EMPLOYER BENEFIT TRUST 25,011.09$

2/14/2020 15324 CO EMPLOYER BENEFIT TRUST (560.06)$

2/18/2020 15325 PAYROLL CHECK 168.70$

2/18/2020 15326 PAYROLL CHECK 112.83$

2/21/2020 15327 PAYROLL CHECK 1,295.21$

2/24/2020 15328 GUNNISON COUNTY MOTOR VEHICLE OFFICE 1.89$

2/27/2020 15331 ACZ LABORATORIES, INC 273.00$

2/27/2020 15332 ALL SEASONS RENTAL 819.71$

2/27/2020 15333 AMAZON CAPITAL SERVICES 1,462.78$ OFFICE SUP & SAFETY

2/27/2020 15334 COLORADO ANALYTICAL LAB, INC. 310.00$

2/27/2020 15335 DETHLOFF, JOHN 780.40$

2/27/2020 15336 DUFFORD,WALDECK,MILBURN&KROHN 4,716.50$ LEGALS

2/27/2020 15337 JVA, INCORPORATED 94,099.27$ WATER CAP IMP (10200102)

2/27/2020 15338 MICRO MOTION INC 1,677.18$ REPAIR & MAINT - MLP

2/27/2020 15339 PARISH OIL CO., INC. 222.31$

2/27/2020 15340 PITNEY BOWES GLOBAL FINANCIAL SERV. 164.55$

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CHECK REPORT - FEBRUARY 2020

Check Check


2/27/2020 15341 RESOURCE ENGINEERING INC. 1,908.50$ CONSULTANTS (102031)

2/27/2020 15341 RESOURCE ENGINEERING INC. 7,714.01$ CONSULTANTS (202031)

2/27/2020 15342 STANFORD COMPUTER & TECHNICAL SERVICES 200.00$

2/27/2020 15343 TIMBER LINE ELECTRIC & CONTROL 3,150.00$ SUBSCRIPTIONS

2/27/2020 15344 UE COMPRESSION 62.15$

2/27/2020 15345 UGRWCD 2,000.00$ GRANTS - CLOUD SEEDING

2/27/2020 15346 USA BLUE BOOK 1,587.33$ OP SUPPLIES - W

2/27/2020 15347 WATER DISTRICT JOBS 145.00$

2/27/2020 15348 WRISLEY, KIM 91.40$

2/27/2020 15349 XEROX FINANCIAL SERVICES 167.43$

2/27/2020 15350 GUNNISON CO CLERK & RECORDER 13.00$

2/27/2020 15351 POSTMASTER 262.20$

2/4/2020 92201 DIRECT DEPOSIT TOTAL 26,276.05$

2/18/2020 92202 DIRECT DEPOSIT TOTAL 26,040.31$

2/3/2020 2032001 CCOERA 401K 3,673.02$

2/3/2020 2032002 CCOERA 457K 1,349.55$

2/3/2020 2032003 COLORADO STATE TAXES 2,551.00$

2/3/2020 2032004 CREDIT UNION OF COLORADO 100.00$

2/3/2020 2032005 FEDERAL WITHHOLDING TAXES 5,710.70$


2/14/2020 2142001 WRIGHT EXPRESS FLEET SVC 1,349.95$ FUEL

2/14/2020 2142002 OFFICE DEPOT CREDIT PLAN 89.97$

2/14/2020 2142003 BROWN, BRIAN 100.00$

2/14/2020 2142004 KEMPIN, NICHOLAS 100.00$

2/14/2020 2142005 MORGAN, SARA E. 100.00$

2/14/2020 2142006 VELADO, CARLOS 100.00$

2/21/2020 2212020 CCOERA 401K 271.61$

2/21/2020 2212021 FEDERAL WITHHOLDING TAXES 269.56$


2/15/2020 2212021 FEDERAL WITHHOLDING TAXES (269.56)$

2/15/2020 2212021 FEDERAL WITHHOLDING TAXES (159.80)$



2/27/2020 2272001 UPS 2.63$

2/27/2020 2272002 UPS 98.18$

2/27/2020 2272003 VERIZON WIRELESS 867.24$

2/18/2020 930201924 CCOERA 401K 3,609.83$

2/18/2020 930201925 CCOERA 457K 1,370.52$

2/18/2020 930201926 CREDIT UNION OF COLORADO 100.00$



493,936.22$

CHECK REPORT - YEAR END 2019 PAID IN FEBRUARY 2020

Check Check


2/19/2020 2192001 INTEGRATED WATER SERVICES, INC. 207,122.02$ WW CAP IMP

2/25/2020 15329 PINYON ENVIRONMENTAL, INC 3,522.75$ CONSULTANTS

2/25/2020 15330 TOWN OF CRESTED BUTTE 2,462.00$ OUTSIDE SERVICES - ATAD

213,106.77$

GRAND TOTAL PAID IN FEBRUARY 2020 707,042.99$

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Water Capital Projects Financial Summary

Activity# Project Name Division Start DateEstimated

Completion Date

102001 WTP Expansion Water 5/1/2020 6/1/2022

20-WF-1 Approved Project

Budget Total

Adjustments to Initial

Project Cost Estimate

Current Total Project

Estimate Project Costs Through 2019

January 2020 Costs Incurred

February 2020 Costs Incurred

2020 YTD Costs

2020 Project Budget Plus

2019 Carryover

2020 Project Remaining

Budget

Total Historical

Project Costs to Date

Estimated Costs to Complete

01 Project Management 750,000 650,000 1,400,000 - 350,000 350,000 - 1,400,000 02 Engineering 1,200,000 - 1,200,000 902,917 94,099 94,099 297,083 202,984 997,016 202,984 03 Construction 17,150,000 700,000 17,850,000 - 7,150,000 7,150,000 - 17,850,000 04 Contingencies 2,675,000 2,675,000 - - - - 2,675,000 05 Legal - 50,000 50,000 1,003 1,003 - (1,003) 1,003 48,997

Total Project: 19,100,000 4,075,000 23,175,000 902,917 - 95,102 95,102 7,800,000 7,701,981 998,019 22,176,981

Project Name Division Start DateEstimated

Completion Date

102002 Daisy Circle Water 1/1/2019 10/15/2020


Budget Total







2020 YTD Costs


2019 Carryover


Budget

Total Historical



01 Project Management 5,000 5,000 - 5,000 5,000 - 02 Engineering 24,000 - 24,000 - 24,000 24,000 - 24,000 03 Construction 120,000 120,000 - 120,000 120,000 - 120,000

Total Project: 149,000 - 149,000 - - - - 149,000 149,000 - 144,000


Completion Date

102003 1MG Tank Foundation-Timberland Water 6/1/2020 8/30/2020


Budget Total







2020 YTD Costs


2019 Carryover


Budget

Total Historical



01 Project Management 15,000 15,000 - 15,000 15,000 - 02 Engineering 35,000 - 35,000 - 35,000 35,000 - 35,000 03 Construction 150,000 150,000 - 150,000 150,000 - 150,000

Total Project: 200,000 - 200,000 - - - - 165,000 200,000 - 185,000 Note: Construction includes $10,000 for Small Tank Drainage Issue


Completion Date

102004 Backhoe Water 10/1/2019 1/10/2020


Budget Total







2020 YTD Costs


2019 Carryover


Budget

Total Historical



06 Lease Buyout and Purchase 167,500 - 37,956 37,956 37,956 129,544 91,588 75,912 (75,912)

Total Project: 167,500 - - 37,956 37,956 - 37,956 130,000 91,588 75,912 (75,912) Note: 2020 Budget would be offset by sale of existing backhoe for approx $100,000Total All Projects: 37,956$ 95,102$ 133,058$ 8,244,000$ TOTAL Water CAPEX

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WasteWater Capital Projects Financial Summary

Activity# Project Name Division Start DateEstimated

Completion Date

202001 Clarifier Project WasteWater 6/1/2019 3/1/2020

20-WWF-1 Approved Project

Budget Total







2020 YTD Costs


2019 Carryover


Budget

Total Historical



02 Engineering 87,900 - 87,900 57,379 1,008 1,008 30,521 29,514 58,387 29,514 03 Construction 2,695,600 404,760 2,600,360 1,654,521 - 1,041,079 1,041,079 1,654,521 945,839

Total Project: 2,783,500 404,760 2,688,260 1,711,900 - 1,008 1,008 1,071,600 1,070,593 1,712,908 975,353


Completion Date

202002

Inflow & Infiltration (I&I) General-2020&Ongoing

to 5-year Rollout WasteWater 1/1/2020 1/1/2024


Budget Total







2020 YTD Costs


2019 Carryover


Budget

Total Historical



03 Construction 59,000 59,000 - 59,000 59,000 - 59,000 07 Study 65,000 65,000 - 65,000 65,000 - 65,000

Total Project: 124,000 - 124,000 - - - - 124,000 124,000 - 124,000


Completion Date

202003 Utility Bed Crew Cab Short Bed Wastewater 1/1/2020 1/31/2020


Budget Total







2020 YTD Costs


2019 Carryover


Budget

Total Historical



06 Purchase 40,000 40,000 - 40,000 40,000 - 40,000

Total Project: 40,000 - 40,000 - - - - 40,000 40,000 - 40,000


Completion Date

202004 ATAD IGA Share Wastewater 1/1/2020 12/31/2020


Budget Total







2020 YTD Costs


2019 Carryover


Budget

Total Historical



02 Engineering 50,000 - 50,000 - 50,000 50,000 - 50,000

Total Project: 50,000 - 50,000 - - - - 50,000 50,000 - 50,000

Total All Projects: -$ 1,008$ 1,008$ 1,285,600$ TOTAL WW CAPEX

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Activity# 2020 Budget Contractor January February March April YTDRemaining

Budget102030 25,000$ General -$ 25,000$ 102031 10,000 Resource Engineering 1,909 1,909 8,092 102032 35,000 Alpine Environmental (Water) 1,418 1,418 33,583 102033 10,000 Raftelis MLP - 10,000

80,000$ -$ 3,326$ -$ -$ 3,326$ 76,674$

Activity# 2020 Budget Contractor January February March April YTDRemaining

Budget202030 25,000$ General -$ 25,000 202031 10,000 Resource Engineering 7,714 7,714 2,286 202032 20,000 Alpine Env (Draft Discharge Permit) 1,418 1,418 18,583 202033 10,000 Raftelis MLP - 10,000 202034 50,000 Pinyon (Draft Discharge Permit) - 50,000

115,000$ -$ 9,132$ -$ -$ 9,132$ 105,868$

WasteWater Consulting Summary

Water Consulting Summary

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Mayberry & Company, LLC Certified Public Accountants

Member of the American Institute of Certified Public Accountants

Governmental Audit Quality Center and Private Company Practice Section

8310 South Valley Highway – 3rd Floor Voice (303) 993 – 2199 Englewood, Colorado 80112 Fax (720) 633 – 9763

March 5, 2020

To the Board of Directors Mt. Crested Butte Water & Sanitation District

We are engaged to audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Mt. Crested Butte Water & Sanitation District for the year ended December 31, 2019. Professional standards require that we provide you with the following information related to our audit. We would also appreciate the opportunity to meet with you to discuss this information further since a two-way dialogue can provide valuable information for the audit process. If you have any questions or concerns that you would like for us to include as part of our audit procedures, please feel free to contact us directly.

Our Responsibility under U.S. Generally Accepted Auditing Standards

As stated in our engagement letter dated December 12, 2019, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.

Other Information in Documents Containing Audited Financial Statements

Our responsibility for the supplementary information accompanying the financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole.

Planned Scope and Timing of the Audit

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested.

Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We will communicate our significant findings at the conclusion of the audit. We will also communicate any internal control related matters that are required to be communicated under professional standards.

We expect to begin our audit on approximately March 4, 2020 and issue our draft report no later than June 30, 2020.

This information is intended solely for the use of the Board of Directors and management of the Mt. Crested Butte Water & Sanitation District and is not intended to be and should not be used by anyone other than these specified parties.

Very truly yours,

Timothy P. Mayberry, Principal Holscher, Mayberry & Company, LLC (303) 906-0744 Direct [email protected]

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MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE

MT. CRESTED BUTTE WATER AND SANITATION DISTRICT FEBRUARY 11, 2020

Regular Meeting of the Mt. Crested Butte Water and Sanitation District (MCBWSD) Board of Directors was held at 5:00 pm on Tuesday, February 11, 2020, at the office of the District, 100 Gothic Road, Mt. Crested Butte, Gunnison County, Colorado. Members of the Board of Directors in attendance at the meeting were as follows:

Brian Brown Carlos Velado Nicholas Kempin Sara Morgan

Also present were: Mike Fabbre, District Manager Kim Wrisley, Admin Assistant Perry Solheim, Finance/Admin Manager Marcus Lock, District’s Attorney Kyle Koelliker, Water Plant Supervisor Jamie Watt, District Customer Bryan Burks, Wastewater Plant Supervisor Chuck McGinnis, District Customer Tracy Davenport, Admin Assistant Bob Mothershead, District Customer

REGULAR BOARD MEETING

1. Call to Order• The meeting was called to order by Brown at 5:00 pm.• Roger Cram was absent.

2. Citizens Comment Period• Watt was present to introduce the Hunter Ridge project and review the plot plan. Gunnison County has

approved the sketch plan consisting of 8 lots (4 single family and 4 tri-plex). An updated petition for inclusion forMCBWSD services is almost completed.

• No other citizens presented comments.

3. SDA Election Update• Discussion regarding seats and terms in relation to 5/5/20 election referencing board packet, page 2.• Self-nomination forms are available on the MCBWSD website and are due by 2/28/20.

4. Reimbursement Resolution for Water Treatment Plant (WTP) Expansion Project• The CWRPDA financing pursued by the District allows for reimbursement of design and project management

expenditures made by the District before the funding date of the loan. Expenditures for hard costs incurredbefore loan funding can only be reimbursed if the District resolves to specifically allow it.

• Resolution 2020-1 (attached) was submitted by staff and was adopted as follows:

MOTION by Velado and seconded by Morgan to approve Resolution 2020-1 of the Board of Directors of the Mt. Crested Butte Water and Sanitation District. Motion voted in favor.

5. Water Committee Update• Brown has informally met with McGinnis regarding MLPC issues.• Brown, Kempin, Solheim and Fabbre to meet soon to move forward with Meridian Lake Park (MLP) discussion.

6. District Manager Report• The adjudicatory hearing regarding the draft discharge permit has been granted.• Many of the provisions of the stay of the old permit have been denied.• Wastewater Operator, Phil Kern, resigned effective 2/15/20 to take another position in the valley.• The District is filing for an absolute water right on MLP Reservoir #1 after proving it had refilled following the

complete draining during the 2016 construction project.

7. WWTP Discharge Permit• There is no time frame for the adjudicatory hearing.• The District is in compliance with the 2020 permit while the hearing is pending.

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• MCBWSD actions taken with regard to past discharge permits has created tacit acceptance of certain termscontained therein.

8. January 2020 Financial Report• The new report format provides information segmented into General Fund, Water Fund and Wastewater Fund,

similar to presentation in the 2018 audit.• Solheim anticipates no net change to total fund balance through 2020, as per the approved 2020 Budget.

MOTION by Velado and seconded by Kempin to approve the January 2020 Financial Report. Motion voted in favor.

9. Approve Meeting Minutes• Velado suggested minor edits to the 1/14/20 minutes.• Cram’s 1/9/20 email will be acknowledged but not included in the minutes.

MOTION by Velado and seconded by Kempin to approve the 1/14/20 meeting minutes as amended and with the condition that the 1/9/20 email from Cram be removed but acknowledged for the discussion of items three (3) – seven (7). Morgan abstained. Motion voted in favor.

10. Legals• Charter Communications will be moving out of the exterior building.• Election discrepancies have been resolved.• As-built drawings are being prepared for the Johnson/Diaz Hillside sewer project.• The District will continue to withhold the retainage on the Paradise Lift Station Project. Final payment to the

contractor was advertised but has not been made pending resolution of issues between contractor andsubcontractors.

11. Board Room Layout• Staff presented plans for furniture additions and arrangements. Staff will move forward with the plan presented.

12. New/Old business Before the Board• Fabbre announced the District has assigned all board members an MCBWSD email address to be used for all

future communications.• Self-nomination forms are available on the District website and are due 2/28/20.• Discussion regarding Town of Mt. Crested Butte maintenance shop expenditures. The District has respectfully

declined to pay those expenditures as the standard procurement procedure for District capital investment wasnot followed. The District values a cooperative partnership with the town, but the Board affirmed thatrespectfully declining to pay this invoice is acceptable and that Fabbre and Lock may proceed as they seeappropriate.

13. Adjourn

MOTION by Morgan and seconded by Velado to adjourn the meeting at 6:42 pm. Motion voted in favor.

____________________________

Perry Solheim, Board Secretary

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Public Notice 3-10-20...Mt. Crested Butte Water & Sanitation District (“The District”), Gunnison...

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