Directors: District Manager: Bill Szmyd, President Amber ......Nov 14, 2019 · Bill Szmyd,...

Directors: Bill Szmyd, President Steve Brandenburg Larry Brandt Paul Bukowski Kathy Gallivan-Crist Ed Martens Emily McMurtrey

District Manager: Amber Kauffman

835 E Highway 56 Berthoud, CO 80513

P: 970-532-2096 F: 970-532-3734 www.LTWD.org

Regular Board Meeting Agenda November 14, 2019 - 5:00 P.M.

1. Call to Order - Pledge of Allegiance

2. Roll Call:

3. Agenda Review and Approval:

4. Public Comment on Non-Agenda Items:

5. Consent Items:5.1. Minutes of the October 10, 2019 Regular Board Meeting ........................ Page 4 5.2. Tap List 646 .............................................................................................. Page 11 5.3. October 2019 Disbursements Report ........................................................ Page 12 5.4. October 2019 Financial Report ................................................................. Page 17 5.5. Griep Farm Lease Renewal ....................................................................... Page 23 5.6. Proposed 2020 Board Meeting Schedule .................................................. Page 29 5.7. 2019 Audit Engagement Approval ............................................................ Page 30 5.8. Windy Gap 2020 5th Amendment to the 5th Interim Agreement ............... Page 47 5.9. Minutes of the October 24, 2019 Joint Board Meeting ............................. Page 56

6. Discussion Items:6.1. Public Hearing: Action Item:

2020 Budget Review and 5-year Financial Plan ....................................... Page 60 Motion to Approve: A. Resolution No. 2019-15 Adopt BudgetB. Resolution No. 2019-16 Funds AppropriationC. Resolution No. 2019-17 Certify Mill Levy

6.2. Public Hearing: Action Item: Updated Rates and Fees ............................. Page 79 Motion to Approve: A. Section 1501.1 Schedule A – Tap FeesB. Section 1502.1 Schedule B – Water Rate ScheduleC. Section 1502.2 Schedule C – Miscellaneous Fees

6.3. Carter Lake Filter Plant ............................................................................. Page 836.4. St. Vrain Water Authority ......................................................................... Page 84 6.5. Central Weld County Water District Dry Creek Lease ............................. Page 85 6.6. Year-End Employee Bonus ....................................................................... Page 107 6.7. Public Hearing: Resolution 2019-18, Water Efficiency Plan .................... Page 108

7. Staff Reports7.1. District Manager’s Report ......................................................................... Page 112 7.2. District Engineer’s Report ......................................................................... Page 114 7.3. Water Resources Manager’s Report .......................................................... Page 118 7.4. Operations Manager’s Report and Water Quality Update ........................ Page 121

8. Director Reports:

9. Adjournment.11

http://www.ltwd.org/

Big Picture Future Capital Projects: Campion line replacement program. Alps Line replacement / upgrade. Additional CLFP storage tank. Additional Treatment Capacity. Raw water infrastructure needs.

2018 strategic plan, priority summary:1. Second use water.2. Dry Creek expand/treatment/

hydro/recreation...3. Mead / Longs Peak service area.4. Limited Water Resources5. Technology - Beacon Meters.6. Age/type of infrastructure.7. Heavy competition for water.8. Windy Gap water opportunities.9. Good financial Condition.10. Reliability of system.

The next few on the list:1. Boom and bust planning.2. More Storage.3. Longer term Financial planning.4. Dependence on CBT (Colorado River)5. Appropriate Staffing levels.

"Serving our customers with safe, reliable and good tasting water at a fair price"

UPDATED 1/28/2019

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Agenda Item Summary Little Thompson Water District

Date: November 14, 2019

Item: 5.1

Staff: Amber Kauffman, District Manager

Subject: Minutes of the October 10, 2019 Regular Board Meeting StaffRecommendation:Staff recommends approval.

Discussion:

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MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS

OF LITTLE THOMPSON WATER DISTRICT The Board of Directors of Little Thompson Water District (LTWD) met in regular session on Thursday, October 10, 2019 at the District office. Attendance was as follows: Board of Directors: Bill Szmyd, President Steven Brandenburg Larry Brandt Paul Bukowski Kathy Gallivan-Crist Ed Martens Emily McMurtrey

Present Present Present Present Present Present Present

Staff in Attendance: Amber Kauffman, District Manager Judy Dahl, Business Manager Brad E. Eaton, District Engineer Nancy Koch, Water Resources Manager Ken Lambrecht, Operations Manager Angela Diekhoff, District Accountant Judy O’Malley, Recording Secretary

Other Attendees: Josh Cook, PE of NoCo Engineering Bob Reed, Consultant to NoCo Engineering Cyndie Meisner, Compensation Consulting Services for Employers Council Rick Whittet, Manager of Carter Lake Filter Plant Linda Cain, Registered Agent of GGRV, LLC Chris Cain, Member of GGRV, LLC Jose Ramirez, Project Engineer II of Rocky Ridge Civil Engineering CALL TO ORDER President Szmyd called the meeting to order at 5:04 p.m. followed by recitation of the Pledge of Allegiance. ROLL CALL Roll call was taken. All Directors were present. AGENDA REVIEW President Szmyd requested the order of the Discussion Items be changed to allow GGRV, LLC to complete their business first. PUBLIC COMMENTS ON NON-AGENDA ITEMS There were no public comments. CONSENT AGENDA It was moved by Director Martens, seconded by Director Brandt, to approve the Consent Agenda including:

• Minutes of the September 12, 2019 Regular Board Meeting, • Tap List 645, • September 2019 Disbursements in the amount $1,114,217.98:

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o Operating Account: $739,167.28: ACH Manual Check Numbers 2194 to 2232 – $264,637.15, Bank Bill Paycheck Numbers 5001 to 5001 - $5,945.80, Check Numbers 9462 to 9516 – $468,584.33,

o Payroll Account: (Two Bi-weekly payroll periods in September) for $375,050.70: ACH Transmittal Vouchers – O-1699 to O-1714 – $167,988.01, Manual Checks 1951 to 1953 - $508.10 ACH Direct Deposit Numbers N-9117 to N-9191 – $206,554.59,

• September 2019 Financial Report. Motion carried unanimously. DISCUSSION ITEMS GGRV, LLC Main Line Water Extension Agreement: Installation of the supporting infrastructure for the Gopher Gulch RV Park will be the responsibility of the developer, GGRV, LLC. In the case of Gopher Gulch the construction of water main lines will be required to support the project with domestic service and fire flow. In addition to providing service to Gopher Gulch the main lines will be required to support domestic service and fire flow for various planned developments in the Mead and Firestone areas, however, the main lines required of the developer will be larger than required for the Gopher Gulch development alone. GGRV, LLC intends to enter into a Main Line Water Extension Agreement with the District to recover costs associated with the construction of these main lines according to the Rules and Regulation of the District. GGRV, LLC requested consideration from the Board of an amended reimbursement percentage (line connection fee) of 25% of actual construction costs, along with an amended rebate time period of 10 years. It was moved by Director Bukowski, seconded by Director Martens, to adopt the Main Line Extension Agreement as written by GGRV, LLC. Motion carried unanimously. Carter Lake Filter Plant (CLFP): The following items were discussed:

• The State approved plans of the 7 million-gallon (MG) tank on September 20, 2019. • The package for construction of the 7 MG tank had not yet been let to bid due to changes to the

drawings. Updates were being completed based on a cost savings suggestion by a contractor. • The submittal to the Bureau of Reclamation (BOR) was waiting approval subject to reviews by the

Regional Archeologist/Office Archeologist, State Historic Preservation Office (SHPO), and a formal National Environmental Policy Act (NEPA) document being issued.

• CLFP manager, Rick Whittet, submitted the 2020 budget proposal. The LTWD Board held a discussion regarding the details of the budget. Further discussion would follow at the Joint Board meeting with Central Weld County Water District (CWCWD) scheduled for October 24, 2019.

• Northern Colorado Water Conservancy District (NCWCD) anticipated shutting down the canal January 14-17, 2020, reducing the capacity from Carter Lake to 4 million gallons per day (MGD). CLFP will offset flows with water from Dry Creek Reservoir.

• There was an issue with the existing fluoride source. Naturally occurring fluoride at CLFP is 0.3, however the goal at the filter plant is 0.7. If CLFP would want to change the amount of fluoride in the water both LTWD and CWCWD would need to determine if the current level of fluoride was decided by board votes or public votes.

• Manager Whittet had provided the CLFP Board with information regarding the additional costs of treating water from Dry Creek Reservoir.

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Carter Lake Filter Plant (CLFP) Utility Plan: Josh Cook, PE presented the Carter Lake Filter Plant Utility Plan Amendment and Work Session. Objectives of the plan were as follows:

• Improve water quality. • Increase treatment at the North and South plants. • Increase CLFP treatment capacity through the addition of pretreatment. • Allow treatment of Colorado-Big Thompson Project (C-BT), Windy Gap, high-quality native, Dry

Creek and NISP waters. • Increase cost effectiveness. • Decrease system vulnerabilities and increase redundancies. • Have the plan be effective in a short timeframe. • Minimize operation costs.

Discussion ensued regarding different types of treatment options comparing capacity, costs for each, and the length of time before expected capacity would be reached. Mr. Cook advised it would be important to use a Pilot Plant to test whatever treatment system LTWD and CWCWD decided to use at CLFP. Further discussion was to be held at the Joint Board Meeting scheduled for October 24, 2019. President Szmyd called for a five-minute recess at 6:55 p.m. The meeting was resumed at 7:03 p.m. St. Vrain Water Authority (SVWA): SVWA was not discussed. The following information was provided in the Board Packet: • The third meeting of the organization was scheduled for October 14, 2019 at Firestone Town Hall. • The purpose of the meeting was to continue to progress the organization and make some general

decisions about structure. • On the agenda was an interview with Tim Flynn of the law firm Collins, Cockrel & Cole, a potential

candidate for legal counsel. • The LTWD Board should consider deal points for consideration in the Intergovernmental Agreements

(IGAs).

Compensation Plan Update & Benefit Programs Review: Cyndie Meisner, of the Employers Council presented an update to the District Compensation Plan and Benefit Programs based on the following: • A Compensation Plan Update Methodology Report. • The Proposed 2020 Salary Ranges. • A graph representing Years of Service in comparison to the number below and above the 100%

midpoint. • The District added several Position Titles that better represented current staff. • Job descriptions for all positions had been updated. • District staff will be reassessing position titles during the 2020 performance evaluation period and

reclassifying some positions to new titles. • The Benefit Programs report gave an overview of District benefits compared to both public and private

sector employers. • On average the level and mix of LTWD’s benefits remains competitive. Review of 2020 Budget: District Business Manager Dahl presented the 2020 Proposed Budget to the Board for discussion and input. No official action was requested at the meeting.

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The 2020 recommended budget, with consideration of the input from the Board at the August Board Meeting and review of capital projects at the September Board Meeting, was presented based on the following parameters: • Base Fee to be increased by 2.4% and will be adjusted 3% for new tap growth. • Water rates to be increased 2.4% for Residential and Non-Residential customers. • Retail water sales to be adjusted by 3% for Residential and Non-Residential Standard taps and 5% for

Urban taps to account for new tap growth. • Wholesale Rates to be increased based within the guidelines of each entity’s IGA. • Bulk water sales estimated based on historical data. • Sale of 270 taps (12 standard and 258 urban) – 10 Cash in Lieu (2 Standard and 8 Urban). • Wages - Merit increase of 3.1%. • Total Employee Costs increase of 2.52%. • Operating expenses to remain the same compared to the 2019 Approved Budget. • Capital and non-operating costs to increase by 18%. • Treatment costs of $.14 per 1,000 gallons and $70,000 per month for fixed operating costs.

The draft Proposed Budget accomplished the following: • All legally restricted and Board designated reserves to be fully funded. • A continuation of maintenance activities to ensure long term reliability. • A projected operating loss of $409,736. • A projected overall decrease in working capital of $6,131,696. • Projected working capital year end would be $13,925,880; which would be $3,104,046 more than

budgeted in 2019.

The following information was to be presented at the November Board Meeting: • The 2020 Proposed Budget, once final direction and recommendation is received from the Board. • A public hearing would be held on the Proposed Budget along with any recommended rate increases. • Staff to present the District’s five-year financial plan. • Final adoption of the 2020 Budget could occur at the November meeting, unless the board were to

choose to defer adoption to the December Board Meeting. Following discussion, it was requested of staff to bring the 2020 Proposed Budget and Rates/Fees to the Board at the November 14, 2019 meeting, based on an increase of 4.8% to the Base Fee and 2.4% to the Tier Rates. STAFF REPORTS District Manager’s Report: District Manager Kauffman reported on the following:

• A Joint Board Meeting was scheduled with Central Weld County Water District (CWCWD) at Kenny’s Steak House on October 24, 2019.

• The District Employee and Board Member outing was scheduled for October 25, 2019 at the Summit Center.

• Ms. Kauffman had been meeting with Loveland staff to advance an Intergovernmental Agreement (IGA) for the LTWD Board’s approval. Loveland’s attorney was to forward a draft the week of October 7, 2019. Ms. Kauffman expected to have a copy to bring before the board by the January 2020 Board Meeting.

District Engineer’s Report: District Engineer Eaton reported on the following: • There were 11 Commitment requests in September 2019.

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• The Capital Project list had been updated.• The Taft Avenue project was expected to begin in late November 2019. Bid requests were to be

sent out shortly.• Bids for the Weld County Road 50 project were to go out shortly.• Barefoot Lakes Filing 4 and Filing 1, 3rd Replat construction had begun. Filing 5 was submitted to

the District for review.• Colorado Department of Transportation’s (CDOT) work at State Highway 56 and I-25 had begun.

Pipe for the relocation of the 42-inch waterline at the intersection was expected to arrive shortly.• Details for the shutdown of the 42-inch waterline were being worked on.• The GIS project had become more detail oriented. The project will never be complete as new

equipment will need to be added and mapping of older equipment will need to be refined.

Water Resources Manager’s Report: District Water Resources Manager Koch reported on the following: • 2019 continued to be wetter than normal and water usage for the month of September remained

low.• The Windy Gap water allotment had been delivered into Dry Creek Reservoir.• The Colorado Big-Thompson water allotment was delivered into Dry Creek Reservoir.• The ArborRain Tower Tree Hydrator bags had been well received by customers. Ms. Koch planned

to purchase additional bags.• Winter weather predictions called for slightly higher precipitation, and slightly warmer than normal

temperatures with the possibility of an intense cold snap.

Operations Manager’s Report and Water Quality Update: Operations Manager Lambrecht reported on the following:

• Water quality samples were within acceptable parameters.• The next sampling period would be November 2019.• The District would need to start sampling for UCMR4 (Unregulated Contaminant Monitoring

Rule). The Environmental Protection Agency (EPA) has a mandate that every so many years testingneeds to be done on a new set of contaminants in the water.

• The modular office project was continuing to progress.• The valve exerciser had taken approximately one month to repair. The repairs were covered by the

warranty.

DIRECTOR REPORTS

Director Brandenburg mentioned a ballot in favor of sports betting, Proposition DD, that if it were to pass would redirect revenue from sports betting to the Colorado Water Plan.

Director McMurtrey advised she will not be attending the November 14, 2019 Board Meeting.

Director Bukowski thanked District Manager Kauffman and Mr. Cook for the work they put in to the CLFP Utility Plan Update.

Director Martens noted his agreement with Mr. Bukowski.

President Szmyd advised the board of highlights from the recent South Platte Basin Roundtable (SPBR): • At the current rate of population growth, 160,000 acres of farmland in Weld County will be dried

up by 2050.• Agriculture was still the dominate type of water use, followed by municipal and recreational.

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• Mr. Szmyd reminded District staff about a grant that is available to be used solely for the increase of water supply.

Mr. Szmyd’s comments were followed by additional discussion regarding the participation in the M36 study by river basins, as well as if the District would want to consider additional tap sizes. There being no further business, President Szmyd adjourned the meeting at 8:46 p.m. Respectfully submitted,

Amber Kauffman

1010



Item: 5.2

Staff: Amber Kauffman, District Manager; Holly Suess, Customer Service Supervisor; Judy O’Malley, Administrative Assistant II

Subject: Tap List 646StaffRecommendation:Staff recommends approval.

Discussion:TAP LIST 646 ~ NEW AND AMENDED CONTRACTS

Tap Commitments BalanceTaps with Water Rights Satisfied /Water Dedications 103Dormant Taps 7

Total Other Tap Commitments 110

TAP # NAME 5/8” URBAN

5/8” STANDARD

OTHER WATER RIGHTS

CIL

6778 Daniel & Karen Ambler X .70 AF6782 William Scott Davis X .70 AF7515 Jeffrey & Teresa Stamp X .70 AF7516 Jeffrey & Teresa Stamp X .70 AF8723 Ralph & Barbara Bond X .70 AF8724 Lennar X .35 AF8725 Lennar X .35 AF8726 Lennar X .35 AF8727 Lennar X .35 AF8728 New Vision Development X .35 AF8729 Sunlight Builders X .35 AF8730 Richmond American Homes X .35 AF8731 Richmond American Homes X .35 AF 8732 Mead 66 Flex 1” 1.5 AF .30 AF 8733 Eat 1908 LLC 1” 1.5 AF .30 AF

5/8” URBAN

5/8” STANDARD

OTHER WATER RIGHTS

CIL

OCTOBER 2019 TOTALS 8 5 2 8.60 AF 1.3 AF YEAR-TO-DATE 2019 TOTALS 182 17 5 76.55 AF 9.05 AF

TAPS BUDGETED 2019 200 50

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Item: 5.3 Disbursements

Staff: Angela Diekhoff, District Accountant & Judy Dahl, Business Manager

Subject: October 2019 Disbursements

Staff Recommendation: Approval

October 2019 Disbursements

Request approval of the October 2019 Cash Disbursements in the amount of $865,755.71.

Operating Account: $494,045.65

ACH Manual Check Numbers 2233 to 2265 – $273,509.53 Check Numbers 9517 to 9575– $220,536.12

Payroll Account: $371,710.06 (Three bi-weekly payroll periods in October)

ACH Transmittal Vouchers 1715 to 1737 – $185,102.20 ACH Direct Deposit Numbers 9192 to 9298– $186,607.86

Discussion:

All expenses are for normal operating costs, with the exception of $160,590.08 for Office Expansion, and $69,667.25 for Capital Projects-District.

1212

Employee Related Expenses 371,710.06$ Office Expansion 160,590.08$ Filter Plant Ops Expenses 99,658.79$ Capital Projects-District 69,667.25$

Inventory 42,875.46$ Credit Card-Computer-$2,228; Educ/Training-$1,371; Eng-$222; O&M-$208; Office Exp-$318; Office Expansion-$7,586; Vehicle Exp-$4572; Water Conserv-$4,068

20,573.35$

System Repairs & Maintenance 15,908.75$

Water Rights Adjudication 15,193.93$

Small Line Abandonment 9,850.00$

Vehicle Expenses 9,157.10$

Office Expenses 7,073.81$

Operations - Utilities 6,399.12$

Vehicles & Equipment 4,665.00$

Insurance-Worker Compensation 4,055.00$

Memberships & Subscriptions 3,525.00$

Service Contracts 3,305.22$

Locate Expenses 3,172.94$

Customer Refund Overpayments 2,639.23$

Communications Expenses 2,584.15$

Safety Expenses 2,178.20$

Uniforms 1,517.36$

Bldg & Grnds Expenses 1,219.92$

Water Quality Expenses 1,216.84$

Capital Projects-Joint 1,166.00$

Dry Creek Reservoir Expenses 1,097.50$

Fire Hyd Meter Deposits-Refund 974.00$

Assessment Fees 900.00$

Purchased Water Expenses 849.61$

Operations and Maintenance 807.04$

PRV Routine Repairs 685.00$

Water Conservation 540.00$

Total 865,755.71$

Little Thompson Water DistrictCash Disbursements Summary

Check Issue Dates: 10/01/2019-10/31/2019

1313

Check No Date Payee Description Amount

Operations

Check Number Check Issue Date Payee Description Amount

2252 10/15/2019 Carter Lake Filter Plant Filter Plant Ops Expenses 99,658.79

2237 10/4/2019 Ferguson Waterworks #1116 Capital Projects-District 61,720.15

9533 10/12/2019 Gopher Excavation Inc Office Expansion 37,543.50

9520 10/10/2019 NeuMark Commercial Builders LLC Office Expansion 36,533.70

9519 10/10/2019 Nero Landscaping Services Office Expansion 31,215.00

2233 10/3/2019 Adams Bank MasterCard Office Expansion 20,573.35

2236 10/4/2019 Dana Kepner Company Inc Inventory 17,057.20

9517 10/3/2019 Berthoud Flooring Office Expansion 13,886.28

9565 10/25/2019 Nero Landscaping Services Office Expansion 13,690.00

2262 10/28/2019 White Sands Water Engineers Inc. Water Rights Adjudication 12,185.00

2237 10/4/2019 Ferguson Waterworks #1116 Inventory 11,122.58

9556 10/25/2019 Chambers Plumbing & Heating Office Expansion 10,513.41

9521 10/10/2019 RCC Construction Office Expansion 10,481.25

9543 10/12/2019 Orback Construction Tap Relocations 9,850.00

9552 10/25/2019 Ag Equipment Inc. System Repairs & Maintenance 9,000.00

2261 10/28/2019 National Meter & Automation Inventory 8,930.48

2260 10/28/2019 Core & Main LP Inventory 5,765.20

2255 10/23/2019 Wright Express Fleet Services Vehicle Expense 5,273.92

9569 10/25/2019 Recreational Electrical LLC Ops Equipment Replacement 4,665.00

2254 10/22/2019 PINNACOL Insurance-Worker Compensation 4,055.00

2266 10/29/2019 Foothills Civil Design LLC Taft-County Road 17 4,020.00

9542 10/12/2019 Northern Engineering Cty Rd Improvements 3,553.50

9531 10/12/2019 Employers Council Services Inc Memberships & Subscriptions 3,525.00

9529 10/12/2019 DLT Solutions LLC Service Contracts 3,305.22

2259 10/28/2019 Southwest Direct Inc Office Expenses 3,013.96

9522 10/12/2019 Ag Equipment Inc. System Repairs & Maintenance 3,000.00

9524 10/12/2019 Alpine Cabinet Co. Office Expansion 2,971.26

2234 10/31/2019 Poudre Valley REA Operations - Utilities 2,865.63

9550 10/12/2019 Starr & Westbrook PC Office Expenses 2,726.00

9526 10/12/2019 BOND, RALPH & BARBARA Customer Refund Overpayments 2,550.00

9555 10/25/2019 Brand X Hydrovac Services System Repairs & Maintenance 2,425.00

2242 10/10/2019 Poudre Valley REA Operations - Utilities 1,957.05

9528 10/12/2019 Ditch Witch of the Rockies Vehicle Expenses 1,896.35

2265 10/29/2019 Carlson Hammond & Paddock Water Rights Adjudication 1,688.93

2251 10/15/2019 UNCC Locate Expenses 1,571.94

9527 10/12/2019 Cote's Vehicle Expenses 1,354.79

2240 10/22/2019 AT&T Mobility Communications Expenses 1,346.30

2264 10/29/2019 Carlson Hammond & Paddock Water Rights Adjudication 1,320.00

9544 10/12/2019 Otis, Bedingfield & Peters, LLC Dry Creek Feasibility Study 1,166.00

9518 10/10/2019 Custom Coatings Locate Expenses 1,143.06

9538 10/12/2019 Kenney Lee Architecture Group Inc Office Expansion 1,122.50

2246 10/11/2019 Cintas Corporation #737 Bldg & Grnds Expenses 1,052.57

2256 10/25/2019 Sam's Club Office Expense 1,040.25

9575 10/30/2019 LIGHTWORKS FIBER & CONSULTING Fire Hyd Meter Deposits 974.00

2245 10/11/2019 Home Depot Credit Services Office Expansion 969.11

2241 10/18/2019 XCEL Energy Operations - Utilities 913.58

9571 10/25/2019 Safety Services Safety Expenses 825.00

Little Thompson Water DistrictCash Disbursements Detail


1414




9547 10/12/2019 Running R LLC Dry Creek Reservoir Expenses 812.50

9548 10/12/2019 S & S Sanitation Office Expansion 724.07

9563 10/25/2019 Kenney Lee Architecture Group Inc Office Expansion 690.00

9530 10/12/2019 Eggers Electric PRV Routine Repairs 685.00

2244 10/29/2019 United Power Inc Operations - Utilities 662.86

9562 10/25/2019 Jax Outdoor Gear Operations and Maintenance 623.12

9557 10/25/2019 City of Longmont Water Quality Expenses 585.00

2237 10/4/2019 Ferguson Waterworks #1116 System Repairs & Maintenance 569.45

2235 10/21/2019 COMCAST Communications Expenses 568.76

9564 10/25/2019 Mobile Lab Safety Expenses 565.00

9535 10/12/2019 Jax Outdoor Gear Uniforms - Engineering 549.97

9546 10/12/2019 Resource Central Water Conservation 540.00

9560 10/25/2019 HACH Company Water Quality Expenses 518.96

9553 10/25/2019 Berthoud Ace Hardware Fire Systems(Hydrants)Exp 467.16

2237 10/4/2019 Ferguson Waterworks #1116 Locate Expenses 457.94

2243 10/10/2019 John Deere Financial Uniforms - Distribution 451.80

2253 10/28/2019 City of Loveland Water & Power Purchased Water Expenses 450.74

2238 10/30/2019 Verizon Wireless Communications Expenses 441.51

9554 10/25/2019 Bomgaars Supply PRV Routine Repairs 433.41

2250 10/15/2019 Central Weld County Water District Purchased Water Expenses 398.87

2258 10/28/2019 Landmark Engineering WCR 34/WCR 13 373.60

9566 10/25/2019 Northern Co Water Cons Dist Assessment Fees 300.00



2249 10/15/2019 Carter Lake Filter Plant Dry Creek Reservoir Expense 285.00

9570 10/25/2019 Rocky Mtn Quick Lube Vehicle Expenses 275.91

9551 10/12/2019 Whiteside's Boots Safety Expenses 260.96

9532 10/12/2019 EngeryLogic Office Expansion 250.00

9574 10/25/2019 Whiteside's Boots Safety Expenses 244.99

2239 10/7/2019 CenturyLink Communications Expenses 227.58

9572 10/25/2019 Sportsmans Warehouse Uniforms - Distribution 199.99

9549 10/12/2019 Sportsmans Warehouse Safety Expenses 199.97

9525 10/12/2019 BidNet Office Expenses 195.00

2248 10/15/2019 Napa Auto Parts Operations and Maintenance 183.92

9558 10/25/2019 Cote's Vehicle Expenses 152.63

2257 10/25/2019 Tractor Supply Credit Plan Uniforms - Distribution 150.94

9561 10/25/2019 IDEXX Water Quality Expenses 112.88

9534 10/12/2019 Green Hills Sod Farm Inc System Repairs & Maintenance 107.73

9540 10/12/2019 Mac Equipment Inc Vehicle Expenses 107.53

9545 10/12/2019 PMM Advertising Elections, Hearings & Public 98.60

2247 10/15/2019 Cintas Corporation - First Aid Supplies Safety Expenses 93.22

2263 10/29/2019 Town of Berthoud Bldg & Grnds Expenses 92.35

9541 10/12/2019 NEW, JOHN & VICKI Customer Refund Overpayments 89.23

9523 10/12/2019 AJ's Backflow Testing LLC Bldg & Grnds Expenses 75.00

9536 10/12/2019 Jiffy Lube #86 Vehicle Expenses 55.97

9537 10/12/2019 Johnstown Clothing Uniforms - Distribution 47.75

9573 10/25/2019 T & T OK Tire Vehicle Expenses 40.00

9559 10/25/2019 Green Hills Sod Farm Inc System Repairs & Maintenance 11.97

9539 10/30/2019 LIGHTWORKS FIBER & CONSULTING Void -

Total Operations 494,045.65

1515




Payroll

Check No Check Date Payee Description Amount

1715 10/3/2019 EFTPS FICA/FWH Tax Deposit Pay Period: 9/29/2019 23,031.35

1716 10/3/2019 CDOR CO Withholding Tax Pay Period: 9/29/2019 3,335.00

1717 10/3/2019 COLONIAL LIFE INSURANCE Voluntary Life Pay Period: 9/29/2019 335.70

1718 10/3/2019 CCOERA 401 401 Contributions Pay Period: 9/29/2019 10,586.01

1719 10/3/2019 CCOERA 457 457 Contributions 457 ROTH Pay Period: 9/29/2019 7,967.68

1720 10/3/2019 TASC FSA FLEX DEPENDENT CARE Pay Period: 9/29/2019 299.99

1721 10/3/2019 TASC HSA HEALTH SAVINGS ACCOUNT Pay Period: 9/29/2019 1,701.78

1722 10/3/2019 FAMILY SUPPORT REGISTRY Child Support Remittance Pay Period: 9/29/2019 223.99


1724 10/17/2019 CDOR CO Withholding Tax Pay Period: 10/13/2019 3,391.00

1725 10/17/2019 CEBT Employee Insurance Pay Period: 10/13/2019 42,592.85


1727 10/17/2019 CCOERA 457 457 Contributions 457 ROTH Pay Period: 10/13/2019 8,078.01





1732 10/29/2019 CDOR CO State Withholding Tax Pay Period: 10/27/2019 3,418.00






9192-9225 10/3/2019 Direct Deposit Pay Period 9/16/2019-9/29/2019 61,384.58

9226 10/3/2019 Gallivan, Kathleen M September Board Meeting 110.33

9227 10/3/2019 Bukowski, Paul H September Board Meeting 98.49

9228 10/3/2019 Szmyd, William R September Board Meeting 103.71

9229 10/3/2019 Martens, Edward M September Board Meeting 105.11

9230 10/3/2019 Brandt, Larry R September Board Meeting 109.05

9231 10/3/2019 Brandenburg, Steven T September Board Meeting 92.35

9232 10/3/2019 McMurtrey, Emily J September Board Meeting 102.31

9233-9265 10/17/2019 Direct Deposit Pay Period 9/30/2019-10/13/2019 63,147.68

9266-9298 10/31/2019 Direct Deposit Pay Period 10/14/2019-10/27/2019 61,354.25 Total Payroll 371,710.06

Total Cash Disbursements 865,755.71

1616



Item Number: 5.4

Staff: Judy Dahl, Business Manager

Subject: Discussion of the Financial Reports.

Staff Recommendation: Staff recommends acceptance of the October Financial Reports.

Discussion:

OPERATING FUND:

Operating Revenue – We have collected $7,718,719 which is $489,999 less than budgeted, mainly due to more rain than anticipated.

Operating Costs – We have spent $6,094,441 which is $377,192 less than budgeted.

Operating Gain (Loss) – We have an operating gain of $1,624,278 which is $112,807 less than the YTD budget and $283,136 less than the annual adopted budget.

NON-OPERATING FUND:

Non-Operating Revenue – We have collected $8,545,515 which is $5,402,015 more than budgeted. We have received $5,236,000 for the PRPA Water Sale.

Capital Costs – District – We have spent $8,010,886 which is $1,117,185 more than budgeted. The $5,200,000 for the PRPA Water Rights Purchase.

Detail of the year to date District Capital Project Expenses:

Capital Project Expense Actual YTD

Annual Budget

Arkins Tank $303,270 $95,000 Beacon Meter Upgrade Project $11,315 $3,050,000 Campion Water Line Replacement $0 $110,000 County Road Improvements $24,658 $150,000 Dry Creek Feasibility $37,100 $85,000 Service Connection Expense $116,412 $138,000 Small Line Abandonment $361 $72,000 Taft & County Rd 17 $27,258 $170,000 WCR 34/WCR13 $119,359 $400,000 WCR 54/WCR17 $1,918 $200,000 West First Street $56,219 $641,000 Vehicle Replacement Program $212,630 $267,517 Furniture & Equipment $19,510 $45,200 Miscellaneous Equipment $8,845 $24,000 Operations Equipment $97,075 $105,784 Office Expansion $481,850 $150,000 Water Rights – CBT $872,814 $762,240 PRPA Windy Gap Water Shares $5,000,000 $0 Water Rights – Windy Gap $538,889 $540,000 Water Rights Adjudication $81,403 $300,000 Total Capital Projects – District $8,010,886 $7,305,741 1717

Agenda Item Summary 5.4 2 Capital Expenses - Joint: We have spent $485,881 which is $114,881 more than budgeted. Detail of the year-to-date Joint Capital Project Expenses: Non-Operating Gain (Loss) – We have a net non-operating gain of $48,748 which is $4,169,949 more than budgeted. We anticipated a YTD loss of $4,121,201.

CHANGE IN WORKING CAPITAL: Year-To-Date Change in Working Capital

YTD Actual YTD Budget YTD Comp

Budget/Actual 2019 Adopted

Annual Budget

Operating Gain (Loss) $1,624,278 $1,737,085 $(111,942)

$(395,943)

Non-Operating Fund Gain (Loss) $48,748 $(4,121,201) $4,166,206

$(4,019,901)

Total Gain (Loss) $ 1,673,026 $(2,384,116) $4,057,142

$(4,415,844)

Capital Project Expense Actual YTD

Annual Budget

CLFP Non-Budgeted Capital $0 $0 CLFP Membrane Replacement $319,370 $353,500 CLFP Drying Bed 1 Relocation $14,153 $0 CLFP Permanent Orthophosphate System $19,231 $0 CLFP North Plant Wall and HVAC $77,328 $0 7 MGD Water Tank $54,591 $0 Vehicles & Equipment – Joint $1,208 $17,500

Total CLFP Capital Project Expense $485,881 $371,000

1818

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

$5,500,000

$6,000,000

$6,500,000

$7,000,000

$7,500,000

$8,000,000

$8,500,000

$9,000,000

$9,500,000

$10,000,000

$10,500,000

$11,000,000

$11,500,000

$12,000,000

$12,500,000

$13,000,000

$13,500,000

$14,000,000

$14,500,000

$15,000,000

$15,500,000

$16,000,000

$16,500,000

$17,000,000

$17,500,000

$18,000,000

LITTLE THOMPSON WATER DISTRICT2019 WORKING CAPITAL GRAPHICAL COMPARISON

1919

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

2019 OPERATING REVENUE & EXPENSE CUMULATIVE

BUDGETED REVENUE BUDGETED EXPENSE ACTUAL REVENUE ACTUAL EXPENSE

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

2019 NON OPERATING REVENUE & EXPENSE CUMULATIVE

BUDGETED REVENUE BUDGETED EXPENSE ACTUAL REVENUE ACTUAL EXPENSE

2020

Current Current Month 2019 2019 YTD 2019Month Month Comp YTD YTD Comp AdoptedActual Budget Bud/Act Actual Budget Bud/Act Budget

OPERATING REVENUEWater Revenue - Base Fee 231,153 229,239 1,914 2,272,090 2,286,808 (14,718) 2,746,912 Water Revenue - Tier I 115,951 107,484 8,467 971,496 992,879 (21,383) 1,159,642 Water Revenue - Tier II 225,890 188,761 37,129 1,558,771 1,679,860 (121,089) 1,783,016 Water Revenue - Tier III 117,406 88,177 29,229 949,309 1,008,717 (59,408) 1,049,259 Water Revenue - Tier IV 130,786 106,666 24,120 1,384,196 1,375,604 8,592 1,527,695 Wholesale Water Revenue 10,340 34,998 (24,658) 175,739 430,363 (254,624) 519,224 Water Rental Revenue 7,670 - 7,670 53,751 20,000 33,751 20,000 Bulk Water Revenue 42,213 27,500 14,713 244,443 305,000 (60,557) 360,000 Other Revenue 5,502 5,075 427 44,732 51,375 (6,643) 61,650 Windy Gap Firming Passthrough - - - 64,194 58,112 6,082 58,112 Total Operating Revenue 886,911 787,900 99,011 7,718,719 8,208,718 (489,999) 9,285,510

OPERATING EXPENSESWater Treatment 85,117 116,826 (31,709) 960,859 945,473 15,386 1,153,779 Distribution System 113,930 59,125 54,805 734,149 735,750 (1,601) 855,100 General & Admin 44,544 41,530 3,014 547,367 548,325 (958) 631,360 Engineering 4,625 10,837 (6,212) 46,672 274,870 (228,198) 301,544 Assessments 1,750 300 1,450 513,833 683,339 (169,506) 683,939 Joint Operations 3,348 - 3,348 7,921 51,000 (43,079) 51,000 Employee costs 258,777 274,415 (15,638) 2,987,947 2,937,145 50,802 3,483,111 Debt Service - - - 295,692 295,731 (39) 2,521,620 Total Operating Expenses 512,089 503,033 40,765 6,094,441 6,471,633 (377,192) 9,681,453

Operating Gain(Loss) 374,822 284,867 58,246 1,624,278 1,737,085 (112,807) (395,943)

NON OPERATING REVENUETap Fees - Current Year 166,000 162,500 3,500 1,615,000 1,625,000 (10,000) 1,950,000 Cash In Lieu Water Rights 95,200 63,520 31,680 604,400 635,200 (30,800) 762,240 Tap Installation Revenue 12,950 11,500 1,450 141,725 115,000 26,725 138,000 Water Right Revenue - - - - - - Interest Income 13,780 12,500 1,280 239,471 125,000 114,471 150,000 Gain(Loss) Sales of Assets 8,710 - 8,710 21,897 - 21,897 - Native Water Dedication - - - 53,330 - 53,330 - Contrib Water Court Fees - - - - - - - Other Fees 11,926 8,850 3,076 94,803 103,300 (8,497) 115,600 PRPA Windy Gap Water Shares - - - 5,236,000 - 5,236,000 - Windy Gap Firming Project - - - 538,889 540,000 (1,111) 540,000 Total Non Operating Revenue 308,566 258,870 49,696 8,545,515 3,143,500 5,402,015 3,656,840

NON OPERATING EXPENSESCapital Projects - District 34,093 222,500 (188,407) 697,868 4,876,000 (4,178,132) 5,111,000 Vehicles and Equipment 111,293 - 111,293 819,911 592,501 227,410 592,501 Water Rights Purchase - 63,520 (63,520) 872,815 635,200 237,615 762,240 PRPA Windy Gap Shares - - - 5,000,000 - 5,000,000 - Windy Gap Firming Project - - - 538,889 540,000 (1,111) 540,000 Water Rights Adjudication 14,024 25,000 (10,976) 81,403 250,000 (168,597) 300,000

Total Capital District 159,410 311,020 (151,610) 8,010,886 6,893,701 1,117,185 7,305,741

Capital Projects - Joint 300 - 300 485,881 371,000 114,881 371,000

Total Non Operating Expenses 159,710 311,020 (151,310) 8,496,767 7,264,701 1,232,066 7,676,741

Non Operating Gain(Loss) 148,856 (52,150) 201,006 48,748 (4,121,201) 4,169,949 (4,019,901)

Net Gain(Loss) 523,678 232,717 259,252 1,673,026 (2,384,116) 4,057,142 (4,415,844)

LITTLE THOMPSON WATER DISTRICTINCOME AND EXPENSE SUMMARY

FOR MONTH ENDING October 31, 2018

11/6/2019 8:30 AM J:\csldata\Xcel\2019 Financial Statements Page 4 2121

Prior YTD ActualMonth 2019 2018

CURRENT ASSETSBoard Designated Reserves 13,347,655$ 13,990,771$ 12,569,436$ Legally Restricted Reserves 936,126$ 922,102$ 1,161,964$ Cash In Lieu of Water Rights 1,147,079$ 1,242,279$ 1,510,694$

Total Cash & Cash Equivalents 15,430,860$ 16,155,152$ 15,242,094$

ACCOUNTS RECEIVABLEA/R - Water Revenue 1,224,362$ 856,979$ 541,613$ A/R - Miscellaneous 101,805$ 143,110$ 26,192$ Tap Receivable -$ -$ 16,857$ Accrued Interest Receivable 31,074$ 34,961$ Reimbursable Expenses 9,274$ 10,188$ 15,000$

Total Accounts Receivable 1,366,516$ 1,045,237$ 599,662$

OTHER ASSETSInventory 214,540$ 217,035$ 229,918$ Prepaid Expenses 21,506$ 21,506$ 22,905$ Debt Issuance Costs (10,306)$ (10,306)$ (10,306)$

Total Other Assets 225,740$ 228,234$ 242,517$

CAPITAL ASSETSCLFP Plant Investment 3,625,039$ 3,625,039$ 3,625,039$ CLFP Equity Joint Venture 7,432,221$ 7,432,221$ 7,432,221$ Dry Creek Reservoir 6,508,922$ 6,508,922$ 6,508,922$ Distribution System 68,781,205$ 68,781,205$ 65,216,514$ Easement Rights 454,124$ 454,124$ 454,124$ District Land 1,052,341$ 1,052,341$ 1,052,341$ District Property 9,563,924$ 9,563,924$ 9,563,924$ Auto/Office/Ops Equipment 2,063,371$ 2,063,371$ 2,063,402$ Construction in Progress -$ 3,564,660$ Accumulated Depreciation (30,127,059)$ (30,127,059)$ (30,127,060)$ Water Rights 65,846,631$ 65,846,631$ 65,846,631$

Total Capital Assets 135,200,719$ 135,200,719$ 135,200,719$

TOTAL ASSETS 152,223,835$ 152,629,343$ 151,284,992$

CURRENT LIABILITIESAccounts Payable 213,816$ 206,723$ 539,387$ P/R, Taxes, Benefits Payable 392,312$ 281,235$ 277,247$ Bond/Loan Interest Payable 21,978$ 21,978$ 21,978$ Current Portion Long Term Debt 2,257,811$ 2,257,811$ -$

Total Current Liabilities 2,885,916$ 2,767,747$ 838,611$

LONG TERM LIABILITIES (1,489)$ Bond/Loan Principal 8,898,756$ 8,898,756$ 11,156,567$ Bond Deferred Loss (Premium/Discount) (127,659)$ (127,659)$ (127,659)$

Total Long Term Liabilities 8,771,097$ 8,771,097$ 11,028,908$

TOTAL LIABILITIES 11,657,013$ 11,538,843$ 11,867,519$

NET ASSETSNet Assets 139,417,473$ 139,417,473$ 128,150,304$ Net Gain(Loss) 1,149,348$ 1,673,026$ 11,267,169$

Total Net Assets 140,566,822$ 141,090,500$ 139,417,473$

TOTAL LIABILITIES & NET ASSETS 152,223,834$ 152,629,343$ 151,284,992$

LITTLE THOMPSON WATER DISTRICTBALANCE SHEET

October 31, 2019

11/6/2019 8:30 AM J:\csldata\Xcel\2019 Financial Statements Page 22222


Date: November 14, 2019 Item: 5.5

Staff: Amber Kauffman, District Manager

Subject: 2020 Griep Farm Lease Renewal StaffRecommendation:Staff recommends the Board authorize the District Manager to execute the Griep Farm Lease for 2020.

Discussion:

As a part of a water acquisition deal, the District purchased a farm near Weld County Roads 3 and 48. After removing the Colorado-Big Thompson water, much of the farm was then subsequently sold without water rights. The District retains ownership of approximately 60 acres, with a few shares of native ditch water still attached for a possible future satellite treatment plant. In the meantime, the District leases the land for farming. The current tenant is Mr. Matt Kiehn. Mr. Kiehn’s family has been farming the Griep Farm for many years. The preference would be to continue to lease the farm to the Kiehn family. The lease rate for 2019 was $100 per farmable acre. There are 55 farmable acres resulting in revenue to the District of $5,500. The terms of the recommended lease are the same as last year. There have been no negative impacts to the District resulting from the lease of this land in the past and none are anticipated in 2020.

2323

FARM LEASE

THIS FARM LEASE, made and entered into this day of 2019, by and between LITTLE THOMPSON WATER DISTRICT, of 835 East Highway 56, Berthoud,

Colorado 80513, hereinafter referred to as Landlord, and Matt Kiehn, of 19158 Weld County

Road 1, Berthoud, Colorado 80513, hereinafter referred to as Tenant, is upon the following terms

and conditions, to-wit:

1. In Consideration of the mutual agreements as hereinafter set forth, Landlord hereby leases to Tenant the property described on Exhibit "A" attached hereto and by this

reference made a part hereof containing 55 acres, together with all improvements located thereon

in their present condition located in the County of Weld and State of Colorado.

2. This Lease shall commence at Midnight the date of execution of this lease, and

shall terminate on Midnight December 31, 2020, without further notice.

3. Tenant agrees to pay to Landlord $2,750.00 on or before March 15, 2020 and$2,750.00 on or before December 15, 20120 for a total rent of $5,500.00.

4. Except when mutually agreed otherwise, the land use and cropping plan shall be as shown in the following table:

USE OF LAND ACRES FIELDS

Not Applicable 55 Not Applicable

Tenant agrees to furnish and provide adequate farming equipment, tools and labor to farm the

above-described property in a good workmanlike manner. Tenant agrees to control noxious

weeds growing or accumulating on the premises. Tenant hereby agrees that he will properly and

in due season irrigate all ground necessary to prepare the same for the kind and type of crop to be

grown, also irrigate all growing crops to the full extent of which his water supply shall permit

and as often as required to secure the very best results; shall in due and proper season perform all

work required and essential in a good, first-class and workmanlike manner, such as will be

conducive to the very best results to be had and obtained by a first-class system of farming.

Tenant agrees to clean out and maintain all laterals ditches leading from the main canal to and

upon the premises and all sub-laterals, and joint with others jointly using the same to the full

extent of his proportionate share of such work; shall construct all distributing ditches; shall not

hold Landlord responsible for any shortage or an excess of water for irrigation purposes; shall

cultivate all irrigated land leased, and in preparation of the ground for crops shall plow and level

down all distributing ditches and make new ones in lieu thereof (except the laterals used by other

are for their use and shall not be interfered with.) Tenant promises and agrees to preserve and

protect all flumes, siphons, checks, dividing boxes, and underground tile or drainage systems, if

any, on said premises; and from time to time and as often as conditions may require, to clean out

the same in order that water may flow uninterruptedly. Landlord agrees to pay all irrigation

water assessments for seven (7) shares of Consolidated Home Supply Ditch and Reservoir

2424

Company Stock and a one-third (1/3) share of Big Thompson Ditch and Manufacturing

Company stock currently associated with the farm and this lease. Tenant agrees to rent all

necessary additional water and to pay all costs of such additional water.

5. All buildings, improvements and other grain storing facilities, if any, may be used

for crops grown under the terms of this Lease. Tenant shall be responsible for the improvements

to the premises, and any expenses of maintenance or upkeep shall be borne by Tenant. The

Tenant will maintain the farm during the tenancy in as good condition as at the beginning,

normal wear and depreciation and damage from causes beyond the Tenant's control excepted.

The tenant will not, without oral consent of the Landlord, (a) plow permanent pasture or

meadowland, (b) cut live trees for sale or personal uses, but will take for fuel or use on the farm

only death or unmarketable timber designated by the Landlord, (c) allow livestock other than the

Tenant's own on stalk fields or stubble fields, (d) burn or remove corncobs, straw, or other crop

residues grown on the farm, (e) pasture new seedings of legumes or grasses in the year they are

seeded, and (f) plant legumes on land not known to be thoroughly inoculated without first

inoculating the seed. The Tenant will prevent tramping of fields by stock and rooting by hogs

when injury to the farm will be done. The Tenant will not commit waste on, or damage to, the

farm and will use due care to prevent others from so doing. The tenant will not, without written

consent of the Landlord, house automobiles, motortrucks, or tractors in barns, or otherwise

violate restrictions in the Landlord's insurance policy which restrictions the Landlord shall make

known to the Tenant. The Landlord will replace or repair as promptly as possible the dwelling or

any other building that may be destroyed or damaged by fire, flood, or other cause beyond the

control of the Tenant or make rental adjustments in lieu of replacements. The Tenant will

control soil erosion as completely as practicable by stripcropping and contouring, and by filling

in or otherwise controlling small washes or ditches that may form. The Tenant will keep in good

repair all terraces, open ditches, and inlets and outlets of the drains, preserve all established

watercourses or ditches including grass waterways when seed and fertilizer are furnished by the

Landlord, and refrain from any operation or practice that will injure them.

6. Tenant shall not sublease this property without the prior written consent of

Landlord.

7. The Landlord reserves the right to enter the farm at any reasonable time for

purposes (a) of consultation with the Tenant; (b) of making repairs, improvements, and

inspections; (c) of developing mineral resources; and (d) after notice of termination of the lease

is given, of plowing, seeding, fertilizing, and such customary seasonal work, none of which is to

interfere with the Tenant in carrying out regular farm operations. This right is also reserved to

the Landlord's agents, employees, and assigns. In the event that any drilling, boring, research or

other activities are conducting pursuant to any oil, gas, mineral or other lease arrangement, then

Tenant shall not be compensated by Landlord for its actual damages incurred by such activities

by the Tenant under any mineral lease. Tenant may be so compensated by the mineral owner, or

the owner's lessee.

8. In the event either of the parties fail to make any of the payments or perform any

of the terms or conditions or covenants herein provided, the non-defaulting party may, at its

election, upon giving 60 days notice of the default under the terms of this Lease describing the

2525

matters in which the defaulting party is in default, at the option of the non-defaulting party, the

non-defaulting party may (1) elect to specifically enforce this Lease in law or in equity, or (2)

elect to declare this Lease terminated and forfeited. Should the defaulting party within such

sixty-day period, make such payment or payments, or perform such covenant or covenants in

which it may be in default; then this Lease is to be reinstated as though no breach hereof had

occurred. Provided that if Tenant fails to pay any amount due to Landlord under the terms of

this Lease, Landlord may give three days' notice to pay or quit the premises; and if the amount

due is not paid within such three-day period, it shall be lawful for Landlord, at its election, to

declare Tenant's right of possession ended without terminating the remaining obligations of

Tenant under the Lease.

9. In the event either of the respective parties hereto shall default in any of their

covenants or obligations herein provided so as to require the party not in default to commence

legal or equitable action against the defaulting party, the defaulting party expressly agrees to pay

all reasonable expenses of said litigation, including a reasonable sum for attorney's fees. It is

expressly understood and agreed by and between the parties hereto that this Lease shall be

governed by and its terms construed under the laws of the State of Colorado. Any notice under

this Lease may be given to the parties at their addresses hereinabove given, except that Tenant's

address may be the address of any successor personal representative or successor in interest,

which address shall be substituted for all purposes hereunder. Such change of address of

Landlord shall be given to Tenant in writing prior to its effectiveness. All notices may be served

as provided by law, or may be personally delivered or sent by registered or certified mail. Words

of the masculine gender shall also include the feminine and neuter genders and when the

sentence so indicates, words of the neutered gender shall refer to any gender; words in the

singular shall include the plural and vice versa. This Lease shall be construed according to its

fair meaning and as if prepared by both parties hereto, and shall be deemed to be and contain the

entire understanding and agreement between the parties. There should be deemed to be no other

terms, conditions, promises, understandings, statements or representatives, express or implied,

concerning this Lease unless set forth in writing and signed by both parties.

10. This Lease shall be binding upon and inure to the benefit of the heirs, personal

representatives, successors and assigns of the parties hereto. Landlord warrants that it has full

right and authority to execute this Lease and warrants the title to the demised property. When

the Tenant leaves the farm, the Tenant will pay the Landlord reasonable compensation for any

damages to the farm for which the tenant is responsible, except ordinary wear and depreciation

and damages beyond the Tenant's control. The Tenant agrees to surrender possession and

occupancy of the premises peaceably at the terminations of the Lease. This Lease shall not be

deemed to give rise to a partnership relation, and neither party shall have authority to obligate the

other without written consent, except as specifically provided in this Lease. Each party agrees

that the other party shall in no way be responsible for the debts of, or liabilities for accidents or

damages caused by, the other party. Failure of Landlord to insist in any one instance, or more,

on the performance of any of the terms, conditions or covenants of this Lease, or on the exercise

of any privileges herein contained, shall not be construed as thereafter waiving any such or any

other covenants, conditions, rights or privileges, but the same shall continue and remain in full

force and effect.

2626

11. The additional terms and conditions of this Lease are contained within one or

more Addendums to this Lease.

IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year

first above written.

LANDLORD:

LITTLE THOMPSON WATER DISTRICT

By:________________________________

TENANT:

STATE OF COLORADO )

) ss.

COUNTY OF LARIMER )

The foregoing Farm Lease was subscribed to before me by Michael T. Cook, District Manager of Little

Thompson Water District, as Landlord, on this ______ day of ___________________, ______.

SEAL Notary Public

STATE OF COLORADO )

) ss.

COUNTY OF )

The foregoing Farm Lease was subscribed to before me by , as Tenant, on

this ____ day of ____________, ______.

Notary Public

2727



Item: 5.6

Staff: Judy O’Malley, Administrative Assistant II

Subject: 2020 Proposed Board Meeting Schedule StaffRecommendation:Staff recommends approval.

Discussion:

2929



Item Number: 5.7

Staff: Judy G. Dahl, Business Manager

Subject:

Audit Engagement Proposal for Calendar Year 2019

Staff Recommendation: Staff recommends approval of the Anton Collins Mitchell, LLP Audit Engagement Proposal for the calendar year 2019.

Discussion:

Anton Collins Mitchell, LLP (ACM) submitted their Audit Engagement Letter to perform the audit for the calendar year 2019.

The field work will be performed the week of February 10, 2020 with reports issued no later than the April 2019 Board Meeting.

The charges for the audit will be $17,325 plus out-of-pocket expenses, with the following payment schedule.

Upon execution of the engagement letter $4,325

At the start of final fieldwork $8,675

Prior to the issuance of our report

November 2019

February 2020

April 2020 Remainder

We have a good working relationship with ACM and have felt well supported throughout the years. The Audit Engagement Agreement is attached.

3030

November 12, 2019 William Szmyd Little Thompson Water District 835 E State Highway 56 Berthoud, CO 80513 [email protected] Dear Mr. Szmyd: We are pleased to continue as independent auditors for Little Thompson Water District. We look forward to continuing to provide you with the high quality services you expect from your professional service providers. Our commitment to delivering superior service means that we strive to demonstrate initiative, anticipate problems, propose solutions, and communicate effectively with you and other members of management throughout the year. In addition, during our audit we will be alert for opportunities to bring insightful and constructive suggestions for improving management information, operating and accounting procedures, and controls. Attached to this letter is an agreement describing our services. If you have questions about any of the matters discussed in that agreement, please give us a call. If you find the arrangements acceptable, please acknowledge your agreement to the understanding by signing and returning to us one of the two enclosed copies. The other copy is for your files. Again, it is a pleasure for us to continue to serve you. We look forward to many more years of pleasant association with you and Little Thompson Water District. Very truly yours, Randy Watkins Audit Partner Enclosure

Randy Watkins

Electronically Signed 2019-11-12 15:42:40 UTC - 174.209.32.60

AssureSign® 05ce027b-b5e2-4abd-8d6f-ab0301024eb2

3131

mailto:[email protected]

November 12, 2019 William Szmyd Little Thompson Water District 835 E State Highway 56 Berthoud, CO 80513 [email protected] Dear Mr. Szmyd:

Agreement to Provide Services This agreement to provide services (the “Agreement”) is intended to describe the nature and scope of our services. Objective and Scope of the Audit As agreed, ACM LLP (“ACM” or “we”) will audit the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information, including the related notes to the financial statements, which collectively comprise the basic financial statements of Little Thompson Water District (the “District” or “you”) as of and for the year ended December 31, 2019. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (“RSI”), such as management’s discussion and analysis (“MD&A”), to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate context. As part of our engagement, we will apply certain limited procedures to the District’s RSI in accordance with auditing standards generally accepted in the United States of America (“GAAS”). These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtain during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required and will be subjected to certain limited procedures, but will not be audited: 1) Management’s Discussion and Analysis. Also, the supplementary information accompanying the basic financial statements, as listed below, will be subjected to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly

3232

mailto:[email protected]

William Szmyd Little Thompson Water District Agreement to Provide Audit Services Page 2

L20GOVT: G200096.N001

to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, and our auditor’s report will provide an opinion on it in relation to the basic financial statements as a whole: 1) Schedule of Revenues and Expenditures - Budget and Actual Responsibilities of ACM We will conduct our audit in accordance with GAAS. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement, whether caused by error or fraud. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to error or fraud. Our work will be based primarily upon selected tests of evidence supporting the amounts and disclosures in the financial statements and, therefore, will not include a detailed check of all of the District’s transactions for the period. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements may not be detected exists, even though the audit is properly planned and performed in accordance with GAAS. Also, an audit is not designed to detect errors or fraud that are immaterial to the financial statements. However, we will inform you of any material errors or fraud that come to our attention. We will also inform you of possible illegal acts that come to our attention unless they are clearly inconsequential. In addition, during the course of our audit, financial statement misstatements relating to accounts or disclosures may be identified, either through our audit procedures or through communication by your employees to us, and we will bring these misstatements to your attention as proposed adjustments. At the conclusion of our audit we will communicate to those charged with governance (as defined below) all uncorrected misstatements. The term “those charged with governance” is defined as the person(s) with responsibility for overseeing the strategic direction of the District and obligations related to the accountability of the District, including overseeing the financial reporting process. For the District, we agree that the Board of Directors meets that definition. In making our risk assessments, we consider internal control relevant to the District’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we will express no such opinion. An

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audit is not designed to provide assurance on internal control or to identify significant deficiencies or material weaknesses in internal control. However, we will communicate to you and those charged with governance in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we identify during our audit. We are also responsible for communicating with those charged with governance what our responsibilities are under GAAS, an overview of the planned scope and timing of the audit, and significant findings from the audit. Responsibilities of Management and Identification of the Applicable Financial Reporting Framework Our audit will be conducted on the basis that you and those charged with governance acknowledge and understand that you and those charged with governance have responsibility (1) for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; (2) for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to error or fraud; (3) for identifying and ensuring that the District complies with the laws and regulations applicable to its activities; and (4) to provide us with access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements, such as records, documentation and other matters. Management is responsible for adjusting the financial statements to correct material misstatements relating to accounts or disclosures, after evaluating their propriety based on a review of both the applicable authoritative literature and the underlying supporting evidence from the District’s files; or otherwise concluding and confirming in a representation letter (as further described below) provided to us at the conclusion of our audit that the effects of any uncorrected misstatements are, both individually and in the aggregate, immaterial to the financial statements taken as a whole. As required by GAAS, we will request certain written representations from management at the close of our audit to confirm oral representations given to us and to indicate and document the continuing appropriateness of such representations and reduce the possibility of misunderstanding concerning matters that are the subject of the representations. Because of the importance of management’s representations to an effective audit, the District agrees, subject to prevailing laws and regulations, to release and indemnify ACM, and its partners, principals, employees, affiliates, contractors, agents, and Permitted Assignees (as defined herein under “Assignment”) (collectively the “ACM Group”), from and against any and all liability and costs relating to our services rendered under this Agreement attributable to any knowing misrepresentations by management.

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Expected Form and Content of the Auditor’s Report At the conclusion of our audit, we will submit to you a report containing our opinion as to whether the financial statements, taken as a whole, are fairly presented based on accounting principles generally accepted in the United States of America. If, during the course of our work, it appears for any reason that we will not be in a position to render an unmodified opinion on the financial statements, or that our report will require an Emphasis of Matter or Other Matter paragraph, we will discuss this with you. It is possible that, because of unexpected circumstances, we may determine that we cannot render a report or otherwise complete the engagement. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of the engagement. If, in our professional judgment, the circumstances require, we may resign from the engagement prior to completion. Termination Upon notice to the District, ACM may terminate this Agreement if ACM reasonably determines that it is unable to perform the services described in this Agreement in accordance with applicable professional standards, laws, or regulations. If we elect to terminate our services for any reason provided for in this Agreement, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. If the Agreement is terminated, the District agrees to compensate ACM for the services performed and expenses incurred through the effective date of termination. Client Continuance Matters ACM is retaining the District as a client in reliance on information obtained during the course of our client continuance procedures. Randy Watkins has been assigned the role of engagement partner and is responsible for directing the engagement and issuing the appropriate report on the District’s financial statements. Email Communication ACM disclaims and waives, and you release ACM from, any and all liability for the interception or unintentional disclosure of email transmissions or for the unauthorized use or failed delivery of emails transmitted or received by ACM in connection with the services we are being engaged to perform under this Agreement.

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External Computing Options If, at the Company’s request, ACM agrees to use certain external commercial services, including but not limited to services for cloud storage, remote control, and/or file sharing options (collectively “External Computing Options”), that are outside of ACM’s standard security protocol, the Company acknowledges that such External Computing Options may be associated with heightened security and privacy risks. Accordingly, ACM disclaims and the Company agrees to release ACM from, and indemnify ACM for, all liability arising out of or related to the use of such External Computing Options. Ownership of Working Papers The working papers prepared in conjunction with our audit are the property of ACM, constitute confidential information, and will be retained by us in accordance with ACM’s policies and procedures. Reproduction of Audit Report If the District plans any reproduction or publication of a document that includes our report, or any portion of it, and that is assembled differently from any paper or electronic version that we have previously reviewed (e.g., by the addition of financial statements and/or accompanying information that you have produced), a copy of the entire document in its final form should be submitted to us in sufficient time for our review and written approval before printing. You also agree to provide us with a copy of the final reproduced material for our written approval before it is distributed. If, in our professional judgment, the circumstances require, we may withhold our written approval. Posting of Audit Report and Financial Statements on Your Website You agree that, if you plan to post an electronic version of the financial statements and audit report on your website, you will ensure that there are no differences in content between the electronic version of the financial statements and audit report on your website and the signed version of the financial statements and audit report provided to management by ACM. You also agree to indemnify ACM and its partners, principals, employees, affiliates, contractors, agents, and Permitted Assignees (as defined herein under “Assignment”) (collectively, “ACM”) from any and all claims that may arise from any differences between the electronic and signed versions.

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Review of Documents In Connection With Offering of Sale of Debt

The audited financial statements and our report thereon should not be provided or otherwise made available to lenders, other financial institutions or sources of financing, or others (including advisors to such parties) in connection with any document to be used in the process of obtaining capital, including, without limitation, by means of the sale of securities (including securities offerings on the Internet) without first submitting copies of the document to us in sufficient time for our review and written approval. If, in our professional judgment, the circumstances require, we may withhold or condition our written approval. Availability of Records and Personnel You agree that all records, documentation, and information we request in connection with our audit will be made available to us (including those pertaining to related parties), that all material information will be disclosed to us, and that we will have the full cooperation of, and unrestricted access to, your personnel during the course of the engagement. You also agree to ensure that any third party valuation reports that you provide to us to support amounts or disclosures in the financial statements (a) indicate the purpose for which they were intended, which is consistent with your actual use of such reports; and (b) do not contain any restrictive language that would preclude us from using such reports as audit evidence. Assistance by Your Personnel and Internet Access We also ask that your personnel prepare various schedules and analyses for our staff. However, except as otherwise noted by us, no personal information other than names related to District employees and/or customers should be provided to us. In addition, we ask that you provide high-speed Internet access to our engagement team, if practicable, while working on the District’s premises. This assistance will serve to facilitate the progress of our work and minimize costs to you. Other Services We are always available to meet with you and other executives at various times throughout the year to discuss current business, operational, accounting, and auditing matters affecting the District. Whenever you feel such meetings are desirable, please let us know. We are also prepared to provide services to assist you in any of these areas. We will also be pleased, at your request, to attend governing board meetings.

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In addition to the audit services described above, you have requested that we provide the following non-attest services:

We will assist the District in preparing the financial statements and related footnote disclosures for the year ended December 31, 2019, based on the District’s accounting records and other information that comes to our attention during the course of our engagement.

Independence Professional and certain regulatory standards require us to be independent, in both fact and appearance, with respect to the District in the performance of our services. Any discussions that you have with personnel of ACM regarding employment could pose a threat to our independence. Therefore, we request that you inform us prior to any such discussions so that we can implement appropriate safeguards to maintain our independence. In addition, if you hire one of our personnel, you agree to pay us a fee of 20% of that individual’s base compensation at the District 90 days from the first day of employment. In order for us to remain independent, professional standards require us to maintain certain respective roles and relationships with you with respect to the non-attest services described above. Prior to performing such services in conjunction with our audit, management must acknowledge its acceptance of certain responsibilities. We will not perform management functions or make management decisions on behalf of the District. However, we will provide advice and recommendations to assist management of the District in performing its functions and fulfilling its responsibilities. The District agrees to perform the following functions in connection with our performance of the non-attest services:

• Make all management decisions and perform all management functions with respect to the non-attest services provided by us.

• Assign a District representative with the suitable skill, knowledge and/or experience to oversee the non-attest services and evaluate the adequacy and results of the services.

• Accept responsibility for the results of the non-attest services. The services are limited to those outlined above. We, in our professional judgment, reserve the right to refuse to perform any procedure or take any action that could be construed as making management decisions or performing management functions. The District must make all decisions with regard to our recommendations. By signing this Agreement, you acknowledge your acceptance of these responsibilities.

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Limitation of Liability Except to the extent finally determined to have resulted from the fraud or intentional misconduct of any member of the ACM Group, the ACM Group’s liability to the District for any claims arising under this Agreement shall not exceed the aggregate amount of fees paid by the District to ACM during the 12 months preceding the date of the claim for the services giving rise to the claim, regardless of whether such liability arises in contract, statute, tort (including the negligence of any member of the ACM Group), or otherwise. In no event shall the ACM Group be liable for consequential, special, indirect, incidental, punitive, or exemplary losses or damages relating to this Agreement. Dispute Resolution Procedure Any dispute or claim between you and ACM arising out of or relating to the Agreement or a breach of the Agreement, including, without limitation, claims for breach of contract, professional negligence, breach of fiduciary duty, misrepresentation, fraud and disputes regarding attorney fees and/or costs charged under this Agreement (except to the extent provided below) shall be submitted to binding arbitration before the American Arbitration Association, and subject to the Commercial Arbitration Rules. The arbitration proceeding shall take place in the city in which the ACM office providing the majority of the services involved under this Agreement is located, unless the parties agree in writing to a different location. The arbitration shall be governed by the provisions of the laws of the State of Colorado (except if there is no applicable state law providing for such arbitration, then the Federal Arbitration Act shall apply) and the substantive law of such state shall be applied without reference to conflicts of law rules. The parties shall bear their own legal fees and costs for all claims. The arbitration proceedings shall be confidential. You acknowledge that by agreeing to this Arbitration provision, you are giving up the right to litigate claims against ACM, and important rights that would be available in litigation, including the right to trial by judge or jury, to extensive discovery and to appeal an adverse decision. You acknowledge that you have read and understand this arbitration provision, and that you voluntarily agree to binding arbitration. The District shall bring no claim or action arising out of or relating to this Agreement or the services provided under this Agreement more than one (1) year following the completion of the services provided under this Agreement to which the claim relates. This paragraph will shorten, but in no event extend, any otherwise legally applicable period of limitations on such claims.

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Fees Our charges to the Organization for the services described above for the year ending December 31, 2019, ar

Directors: District Manager: Bill Szmyd, President Amber ......Nov 14, 2019 · Bill Szmyd,...

Documents

Transcript of Directors: District Manager: Bill Szmyd, President Amber ......Nov 14, 2019 · Bill Szmyd,...