Nestlé Waters North America: 2020 Annual Report PresentationCHAFFEE COUNTY BOARD OF COMMISSIONERSMARCH 9, 2021

• Annual Report Contents• Summary of Operations• Surface Water and Groundwater Monitoring• Land Management• Local Investments and Expenditures• Summary and Conclusion• County Contributions & Investments: A Decade Review

Overview

NWNA 2020 Annual Report

Annual Withdrawal: 71.9 acre-feet (AF)Permit Limit: 196 AF

Augmentation water: 85.4 AF * includes transit loss along the Arkansas River of 1.7 AF

* all water released from Twin Lakes

* 15% net gain to the Arkansas River

2020 Operations in Chaffee County

• Local DriversTotal trips by Chaffee drivers: 1,080

Total compensation: $493,296 (average of $75,000 per driver)

• Driver recruitment effortsAdvertisements in local media (Radio, Print, Internet, etc.)

Referral and relocation bonuses offered for all successful hires.

15 applications, 13 unqualified or unresponsive, 2 hires• Load Station manager (local, BV resident)

2020 Operations in Chaffee County

2020 Water Resource MonitoringSurface and Groundwater Monitoring Report – Exhibit 3*Reporting for the Water Year (November 2019 through October 2020)

• Snowpack (Snow Water Equivalent, SWE) above average, Precipitation below average compared to normal

• Irrigation diversions below average compared to period of record (since 2008)

• Seasonal trend consistent with historical observations

• Surface water flow observations

- Average conditions Nov-Apr; drier conditions May-Oct

• Groundwater observations

- Minimum seasonal water levels increased driven by above average SWE; peak water levels decreased compared to 2019 water year primarily driven by the decrease in diversion for irrigation in 2020

Spring Water SourceRuby Mountain Springs Recharge • The major portion comes from underflow from the mountains

to the east.• A portion of the recharge is from the Pinedale Alluvium aquifer

(from the north)• Precipitation provides a negligible amount in this very arid climate

Geochemical Evaluation• Geochemical characteristics of the spring water and water produced

from boreholes are the same

• The diagram to the right expresses a water chemistry match with Ruby Mountain Springs, Arnolds Gulch and the eastern mountains.

Snow WaterEquivalent

Precipitation

Groundwater LevelsDiversions(irrigation)

Rain Year:Nov 2019 – Oct 2020

Groundwater Levels

Well Locations

~4.75 miles

Minimum permitted water Level, measured in RMBH-3.

Average daily pumping in 2020 water year is 0.20 Acre-feet0.5

0.75

0.25

2020 Hydro Summary

Precipitation and snowpack during the 2020 water year was within the range of the past decade of observations.

The estimated spring flow of Ruby Mountain Springs in the 2020 water year was within the range of observation since monitoring began.

2010-2012: Restoration/ Reclamation Project at Ruby Mountain Springs

November 2020

Land Management – Bighorn SpringsBighorn Springs Grazing Management Plan – Exhibit 1- Grazing agreement with McMurry Land & Livestock (May 2019 – May 2024)

- No grazing in 2020 due to difficulties of mobilizing livestock at the necessary time

- Plan to review viability of grazing in 2021 this spring (sufficient vegetation and livestock dependent)

Bighorn Springs Wetland Monitoring Report – Exhibit 4- Similar vegetation conditions to previous years

- Observations of raptors, geese, ducks, bighorn sheep and deer

Land Management - Ruby Mountain SpringsRuby Mountain Springs Monitoring Report – Exhibit 2- Vegetation conditions similar to previous years

- Observations of raptors, geese, ducks, kingfisher, beaver, deer, bighorn sheep, bobcat, snakes and various life stages of trout

- Substantial willow clearing efforts to promote growth of native species and reduce overly dense vegetation around ponds

Land Management – Plans for 2021Committed to continuing long-term monitoring• Continue monitoring in accordance with the Surface and Groundwater Monitoring and

Mitigation Plan

• Currently exploring options for new wetland biologist and grazing expert (local desired)

• Continuing discussions with Colorado Mountain College about providing student field experiences on the Ruby Mountain Springs site

Conservation Easement – 2020 updateContinued commitment to the conservation of the Ruby Mountain Springs property with a permanent Conservation Easement

• Colorado Parks & Wildlife (CPW) has been determined as the proper entity to hold the easement

• Lot line adjustments completed (2019)

• Comprehensive baseline environmental study completed (December 2020)

Next steps:- Approval of donation by CPW

- Final approval from the Capital Development Committee of the Colorado General Assembly

2020 Local Investments and Expenditures

Utilities and Service Providers: $51,900

Property Taxes $20,000

Augmentation Payment: $152,174

Local Truck Driver Wages $493,296

Local Contractors/Supplies $83,300

Charitable Giving $62,900

Total Investment in 2020: $863,570

NWNA Educational Endowment Fund

Summary of BVCEAF Endowment Fund

Beginning fund balance 2020 $288,592

Investment earnings $37,897

less Denver foundation admin fee $2,734

less disbursement to the BVCEAF $14,081

Ending fund balance 2020 $309,734

Summary of SOSS Endowment Fund

Beginning fund balance 2020 $290,906

Investment earnings $36,479

less Denver foundation admin fee $2,714

less disbursement to the SOSS $16,168

Ending fund balance 2020 $308,503

2020 Philanthropic SupportOrganization/Event AmountChaffee County Community Foundation – Chaffee County COVID-19 Relief Fund $15,000

Chaffee County Waste Audit Study (Chaffee County Community Foundation) $10,000

Boys & Girls Clubs of Chaffee $16,000

Greater Arkansas River Water Basin Forum $5,000

Chaffee County Economic Development Corporation $5,000

Quilts of Valor Foundation $4,500

Friends of Browns Canyon $2,000

Denver Foundation $2,000

Buena Vista Heritage $1,900

GARNA $1,000

Salida Community Center $500TOTAL $62,900

2020 Bottle Donations• Blue Bottle Donation Program: outreach to local distilleries for hand

sanitizer production.

• J&L Distillers in Boulder, CO (22,500 bottles)

• Outreach to Elevation Beer Company, Wood’s High Mountain Distillery, Pursell Manufacturing and Pure Greens; sample bottles were sent for testing with their equipment

• Bottled water donations: 279,620 to Chaffee County and Denver Metro area organizations

Summary and Q&AAppreciate the opportunity to present today

More than a decade of operations in Chaffee County, proud to be a contributing partner in this community

Questions?

Economic Activity in Chaffee: 2010-2020• Total expended dollars in Chaffee County (local contractors): $11,358,480

• Chaffee County driver wages: $5,108,839

• Local professional service contractors: $1,108,069

• Property taxes: $348,818

• Local utilities/waste mgmt./telecomms: $325,856

• Direct estimated wages, local site management: $396,000

• Payments to Upper Ark Water Conservancy District $914,897

• Charitable Giving: $778,449

• Total local investment: $20,339,408

NWNA Endowment Summary: 2010-2020• Initial contribution $500,000

• Growth in/added to endowment $118,237

• Endowment distributions to SOSS $153,072

• Endowment distributions to BVCEAF $147,735

• Additional direct contributions to Endowment: $56,000

• SOSS Fund Balance EOY 2020 $308,503

• BVCEAF Fund Balance EOY 2020: $309,734

Charitable Giving: 2010-2020• $778,449 since 2010

• $500,000 Educational Endowment, which has grown every year since its inception

• $278,449 in charitable contributions to the Chaffee County community ($62,900 in 2020)

• 288,618+ bottles of water donated exclusively to Chaffee County, with a substantive quantity to emergency services in Chaffee County.

• Blue Bottle Donation Program: outreach to local distilleries for hand sanitizer production

From Chaffee County residents…• As for the economic value to the community, they have donated far more than any other

national corporation in our county, including companies like Kroger, Safeway, Checker Auto, McDonalds, Xcel Energy, Sonic, and Walmart. Since 2013, they have donated $23,000 to Boys & Girls Clubs alone and took the time to actually tour the Salida facility. Their $16,000 donation to BGCCC last year was particularly important since so many foundations from whom our local non-profits historically received funds turned their funding towards more direct COVID relief. -- Karen Dils, longtime resident of Buena Vista and educator, Emeritus Board Member, Boys & Girls Clubs of Chaffee County and Secretary, Collegiate Peaks Chapter of Trout Unlimited

From Chaffee County residents…Nestlé Waters has supported Chaffee County Quilts of Valor for several years. They began with a grant to the group in the amount of $750.00 and have increased it every year, last year being in the amount of $2,000. With their grants, it has allowed Chaffee County Quilts of Valor to continue to make quilts for our veterans and wounded veterans. To date, 1,138 quilts have been made.

Nestlé Waters' grants have allowed the group to purchase fabric, mail quilts to long arm quilters and mail quilts to veterans or to the V A Hospital in Denver to be presented to graduates of the PTSD (Post Traumatic Stress Disorder) Program. In 2019, a recipient of a Quilt of Valor wrote to the group and thanked us for the quilt. He was a Vietnam veteran and told the group that was the nicest gesture he ever received and informed his daughter that he wanted to be buried with that quilt.

This project is a labor of love for each of us which we would not be able to do without the help of Nestlé Waters. -- Linda Lafford, Quilts of Valor, Chaffee County

Added Value• “Since Nestle installed their monitoring well network in Trout Creek Park they have shared the

data collected with the Upper Arkansas Water Conservancy District. The District evaluated the feasibility of aquifer storage in Trout Creek Park relying in part upon this data. Data from these wells is invaluable to that evaluation and also for the future monitoring of ground water levels and the changes of levels through time. Once infiltration of water into the aquifer begins and continuing throughout the life of the storage project, knowledge of the changes in terms of timing and magnitude is indispensable for calculating the volume, timing and direction of water flow to the Arkansas River. Water storage in the Arkansas Basin and in Colorado generally is necessary for any conservation programs, augmentation of stream depletions and for meeting the future needs of the Basin and Colorado. Aquifer storage is important today and in the future will be of increased importance to all water entities in Colorado.” --Terry ScangaGeneral Manager, Upper Arkansas Water Conservancy District