The Board thanked the gentlemen for their time and presentation then Mr. Gallagher and Mr. Wadsworth left the meeting.

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1 RECORD OF PROCEEDINGS MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE CRESTVIEW WATER AND SANITATION DISTRICT ADAMS COUNTY, COLORADO December 10, 2014 The regular 7:00 P.M. meeting of the Board of Directors of the Crestview Water and Sanitation District was held December 10, 2014 at the office of the District, 7145 Mariposa Street, Adams County, Colorado. The meeting was presided over by President Lee Tomsick. Secretary Martin was present to record the minutes. Members Present: Lee Tomsick President Mike Doak Vice-President Jill Martin Secretary/Treasurer Henry Dietz Director Lori Sakowicz Director Also Present: Mitch Terry District Manager Tania Arnold Office Manager John Gallagher Raftelis Financial Consultants Robert Wadsworth Raftelis Financial Consultants Absent: Ron Forman Attorney The Pledge of Allegiance was recited. Robert Wadsworth and John Gallagher presented the rate study for the 2015 Crestview Water and Sanitation District s rate structure. Their recommendation is a minimum increase of 1.0 percent water rate increase and a 6.2 percent sewer rate increase. Mr. Gallagher and Mr. Wadsworth answered all inquiries made by the Board. After all inquiries were made, the Board agreed to vote on the new rate design later in the meeting. The Board thanked the gentlemen for their time and presentation then Mr. Gallagher and Mr. Wadsworth left the meeting. MINUTES FOR APPROVAL, November 12, 2014 Director Tomsick asked if there were any corrections, deletions, or additions to the Minutes for the November 12, 2014 Board Meeting. There being no corrections, deletions, or additions, the Minutes for the November 12, 2014 Board Meeting are accepted as presented. DECEMBER BIRTHDAYS Mr. Terry recognized Board Vice President, Mike Doak, Director, Henry Dietz, Nina Baer, office clerk and Eddie Torgersen in maintenance for their December birthdays FINAL ASSESSED VALUATION The Crestview Water & Sanitation District has received the Final 2014 Certified Valuation of the District from the Adams County Assessor s office. After being supplied this information, Charlie Poysti of Poysti & Adams completed the calculations for the 2015 Mill Levy and determined that the water & sewer mill levy will be mills and the sewer only mill levy will be mills. The total combined property taxes to be paid to the District will be $551, in The 2014 mill levies being paid to the District total $515, will see an increase of $35, The Crestview Water & Sanitation District 2015 Budget was adopted at the November 12, 2014 Regular meeting of the Board of Directors. The final mill levy amounts will be inserted into the 2015 Budget. The Budget will be sent out to the Division of Local Governments, Adams County Commissioners and Adams County Clerk and Recorder on December 11, 2014 as required by state statute. Page 1

2 Director Doak made a motion to adopt the following resolution: RES. #34-14 BE IT RESOLVED AND CERTIFIED to the County Commissioners of Adams County, Colorado that the tax levies to be assessed upon property within the limits of the Crestview Water and Sanitation District, excluding the Park Terrace Subdivision, for the year 2015 as determined and fixed by the Board of Directors of said District on December 10, 2014 are: General Operating Expense: mills AND BE IT FURTHER RESOLVED AND CERTIFIED to the County Commissioners of Adams County, Colorado that the tax levies to be assessed upon property within the Park Terrace Subdivision and other sewer only customers of the Crestview Water and Sanitation District for the year 2015 as determined and fixed by the Board of Directors of said District on December 10, 2014 are: General Operating Expense mills AND BE IT FURTHER RESOLVED that the appropriate authorities are hereby authorized and directed to extend said levies upon their tax list. Director Martin seconded the motion RUTH WAY On June 18, 2013, Crestview had a water main break that was severe enough to damage the sanitary sewer service for 7160 Ruth Way. After the sewer was damaged, the water and mud from the water break was forced into the home and flooded the basement with six inches of muddy water. Clean-up was offered by Crestview but the homeowner s insurance declined the offer and had their restoration service perform the clean-up. As the clean-up continued, it was discovered that the home had asbestos drywall and flooring that was damaged and needed replaced. The homeowner s insurance and Crestview s insurance both denied responsibility for the asbestos abatement. The homeowner s insurance company, American Family Insurance covered the repairs and is seeking damages against Crestview Water and Sanitation District for the cost of the asbestos remediation. Crestview filed a motion to dismiss pursuant to C.R.C.P. 12(b)(1) alleging that the Colorado Governmental Immunity Act (CGIA) precluded the negligence claim because there was no waiver of immunity for the claimed loss, and thus the Court lacked jurisdiction. The Court ordered that a hearing be held to determine whether the loss was recoverable based on a waiver of governmental immunity. Plaintiff claimed that there was a waiver of immunity based on C.R.S (1)(e)and (1)(f). A trinity hearing was held at the Adams County courthouse on October 28, 2014 to determine if Crestview had waived its governmental immunity status by not maintaining its water distribution system, causing it to be unsafe. The hearing went from 9:00AM to 4:30 PM. The Judge s findings were to be announced by year s end. On November 20, 2014, Crestview s attorney Ron Forman, the attorneys representing Crestview s insurance company and Crestview and I were notified that a judgment had been handed down and that The Court finds that plaintiff has not proven by a preponderance of the evidence that Crestview waived governmental immunity pursuant to either C.R.S (e) or (f). The Court grants Crestview s motion to dismiss the action against Crestview with prejudice. No additional legal actions can be taken against Crestview regarding this claim. NORTHWEST COMMUTER RAIL PROJECT As part of the Northwest Commuter Rail system project, Crestview will have six different sites that have either water mains, sewer mains or both relocated to make room for the rail project. Denver Transit Partners is the contractor that will be making the relocations for RTD. Crestview s 20 inch transmission main that runs along the BNSF railroad tracks from Pecos Street to 64 th Avenue will be relocated to Pecos Street and will run north to 64 th Avenue then west to Little Dry Creek. This portion is currently in design. Both water and sewer mains in 64 th Avenue at the BNSF railroad tracks are being relocated currently. The sewer main is approximately 90% complete. The 20 inch water main will have its relocations begin within the month. Crestview has two 14 inch water mains that cross Little Dry Creek at 65 th Place and Page 2

3 each will be replace with a 20 inch main within the next two months. Crestview s 15 inch sanitary sewer main running parallel to the BNSF tracks from 66 th Place northwest to Federal Blvd. will begin relocation within the next month. The final utility relocation is the 6 inch water main paralleling Federal Blvd. at 69 th avenue which will be abandoned as part of the Federal View IGA with Westminster. Denver Transit Partners is working with Crestview and Westminster engineers on designing a PRV (pressure reducing valve) assembly at 71 st and Grove to allow Westminster to supply water to the Federal View subdivision. SHADOW RIDGE LIFT STATION INTERGOVERNMENTAL AGREEMENT (IGA) The City of Westminster and Crestview Water have been working on finalizing an Intergovernmental Agreement (IGA) to have Crestview accept the sewer flows from the Shadow Ridge subdivision located at 80 th Avenue and Clay Street. In return for Crestview accepting the sewer flows, at the City s expense, Westminster has agreed to make improvements to Crestview s sanitary sewer collection system that will be impacted by the additional flows. As of December 5, 2014, the City of Westminster has decided to halt the progress of the Shadow Ridge IGA until further notice. With that said, there is a second part of the IGA that details the transfer of part of the Crestview water distribution system, Federal View, to Westminster. The Federal View subdivision is currently being supplied water through only one six inch water main from 67 th Place and Federal Boulevard. At this time, the IGA has been separated into two parts in order to allow for the Federal View transfer of service to occur within the next three months to facilitate the abandonment of the existing 6 inch water main that supplies water to the Federal View subdivision as part of the Northwest Commuter Rail Project mentioned in the portion of my report regarding the Northwest Commuter Rail Project. Westminster City Council met Monday, December 8, 2014 and accepted the Federal View IGA as provided in your packet. At tonight s meeting, Mr. Terry recommended that the Board also accept the IGA to allow Crestview and Westminster to proceed with the changes proposed in the agreement. A copy of the IGA is provided in your packet. DENVER WATER PURCHASE FOR NOVEMBER ,721,000 gallons for a daily average of 1.22 MGD Average November usage since 2006 is 36,060,000 gallons BILLS - Director Martin made a motion to adopt the following resolution: RES #35-14 BE IT RESOLVED THAT the Bills be paid. Director Doak seconded the motion. The Board resumed the voting on the 2015 water and sewer rates. Director Doak made a motion to adopt the following resolution: RES. #36-14 WHEREAS THE BOARD OF DIRECTORS has determined that present revenues are not adequate to provide for the financial needs of the District, and; WHEREAS an increase in revenue can only be accomplished by increasing rates for water service, and; WHEREAS, the Board has determined that it is desirable to establish conservation rates, and; WHEREAS, the Board of Directors has determined the following to be a reasonable charge and necessary in order to provide the District with needed revenue and conservation incentive. NOW, THEREFORE, BE IT RESOLVED THAT effective January 1, 2015, (regardless of the delivery date of the service) Appendix B, Sections, (A), (B), and (C), of the Rules and Regulation of the District be amended as follows: Page 3

4 (A) The following rates shall be paid monthly by consumers within the District who have facilities connected directly or indirectly to the water system of the District. A minimum service charge for each connection shall be paid each month dependent upon the size of the meter as follows: Meter Size Minimum Charge 1) 5/8 X3/4 $ ¾ $ $ ½ $ $ $ $ $ ) The volume Charge for all water consumed each month shall be as follows: a) Single Family Residential Customers Monthly Usage Charge 0 4,000 Gallons $6.13/1,000 Gallons 4,001 15,000 Gallons $7.66/1,000 Gallons Over 15,000 Gallons $9.58/1,000 Gallons b) Multi-Family Residential Customers Monthly Usage Charge 0 3,000 Gallons $6.13/1,000 Gallons 3,000 9,000 Gallons $7.66/1,000 Gallons Over 9,000 Gallons $9.58/1,000 Gallons c) Commercial, Industrial, Educational, Parks and Recreation and Other Customers: $6.97 (Six dollars, and ninety-seven cents) per thousand gallons or portion thereof. 3) CONSTRUCTION WATER: Water for construction purposes shall be provided only upon the approval of the District Manager to construction projects within the District through connections and meters furnished by the District or approved by the District Manager as follows: A basic charge, which includes the temporary connection fee of $50.00 for each construction project plus, $12.51 (Twelve dollars, and fifty-one cents) per thousand gallons for all water used. Meters and other devices furnished by the District for construction water connections shall remain the property of the District. A refundable damage deposit shall be held by the District until the meter and other devices are returned in good condition. (B) (C) The rates by consumers outside the District shall be two (2) times the Rates paid by consumers within the District. Private Fire Systems All water users within the District who have on their property unmetered fire protection sprinkler systems or other firefighting systems shall be charged a monthly rate dependent upon the size of the line servicing the said system as follows: 2 $ $ $ $ $ $ Page 4

5 Director Martin seconded the motion. Director Martin made a motion to adopt the following resolution: RES. #37-14 WHEREAS the Board of Directors has determined that present revenues are not adequate to provide for the financial needs of the District, and; WHEREAS, an increase in revenue can only be accomplished by increasing rates for sanitary sewer service, and; WHEREAS, the Board of Directors has determined the following to be a reasonable charge and necessary in order to provide the District with needed revenue. NOW, THEREFORE, BE IT RESOLVED THAT effective January 1, 2015, (regardless of delivery date of the service Appendix C, Section (A) of the Rules and Regulations of the District be amended as follows: (A) The following rates shall be paid monthly by consumers within the District who have facilities connected directly or indirectly to the sewer system of the District: 1) A minimum service charge for each connection shall be paid each month as follows: $6.90 (Six dollars and ninety cents). 2) The volume charge for all billable usage shall be $5.92 (Five dollars, ninety-two cents) for each 1,000 (one thousand) gallons or portion thereof. The billable usage shall be determined by the average monthly water usage billed during the four month period, December through March or other period as determined by the District. The average winter volume charge as determined will reflect volume and strength cost associated with normal domestic wastewater and eliminate non-sewer water usage such as irrigation. When determined, the volume charge will be applied uniformly each month. 3) The monthly charge for Hyland Hills Park and Recreation District seasonal parks with sanitary sewer connections shall be $ Director Doak seconded the motion. RES. #38-14 WHEREAS the Board of Directors has determined that present revenues are not adequate to provide for the financial needs of the District, and, WHEREAS, an increase in revenue can only be accomplished by an increase in annual charges for sanitary sewer service, and; WHEREAS, the Board has determined that the fair and reasonable annual charge for all customers within the Park Terrace Subdivision for sanitary sewer service provided by the District to be $ (Three hundred, seventy dollars, and zero cents). NOW, THEREFORE, BE IT RESOLVED THAT Appendix C, Section (B) of the Rules and Regulations be amended to read as follows: The quarterly charge for all residential customers within the Park Terrace Subdivision effective January 1, 2015, (regardless of delivery date of the service) shall be $92.50 (Ninety-two dollars, and fifty cents). Director Doak seconded the motion. Director Tomsick asked if there was any further discussion of the bills paid. Page 5

6 After all inquiries were addressed, the vote was as follows: Director Martin made a motion to adopt the following resolution: RES. #39-14 WHEREAS Crestview currently provides water supply to customers living in the Federal View Water Supply area, which is the area generally bounded by Federal Boulevard, Craft Way, Grove Street, Hooker Street, 71st Avenue, and 71st Way. All of this area is currently within Westminster city limits, and the City currently provides wastewater service to these residents, and WHEREAS Crestview would like Westminster to take over the perpetual responsibility for providing water service to these customers. Westminster is willing to commit to taking over this service no earlier than January 1, 2017, which will allow the City sufficient time to budget for the water line capital improvements necessary to add these customers to Westminster s water distribution system, and WHEREAS, between the Effective Date of this intergovernmental agreement and December 31, 2016, Westminster is willing to assist Crestview in providing potable water to the Federal View water supply area by providing water through Crestview s water distribution system at Crestview s request, and WHEREAS, the Parties have determined that it is in the best interests of their respective constituents to enter into this Agreement for the consolidation and cooperative delivery of certain water and sanitary sewer services within certain service areas of the Parties that are identified herein below; NOW, THEREFORE, BE IT RESOLVED THAT the Board of Directors, Crestview Water & Sanitation District accept and execute the Intergovernmental Agreement between Crestview Water & Sanitation District and the City of Westminster allowing the City of Westminster to provide temporary water service to the Crestview customers in the Federal View subdivision and to commit to perpetually take over both water and sewer service in the Federal View subdivision no later than January 1, Director Martin seconded the motion. OFFICE DATA AND FINANCIAL REPORT The Office Data and Financial Report were accepted as presented. UNFINISHED BUSINESS 1. Public Information The new website design is almost complete. 2. Metro Report No report. Page 6

7 Director Tomsick made a motion to adopt the following resolution: RES. #40-14 BE IT RESOLVED THAT the Crestview Water and Sanitation District employees be given an incentive award of 10 percent of their base monthly salary of December 2014, and; BE IT RESOLVED THAT the award is made in December 2014, in addition to the regular payroll, and; BE IT FURTHER RESOLVED THAT the award is not intended to set a precedent. It is given in recognition of the hard work and dedicated service of Crestview employees during the past year. Director Martin seconded the motion. AYES: Directors Tomsick, Doak, Martin, and Sakowicz. NAYS: Director Dietz The resolution was adopted with four ayes. NEW BUSINESS Mr. Terry informed the Board that he has been selected to the Special District Association (SDA) Leadership Academy. Mr. Terry also informed the Board he will be a distributor representative for the Denver Water Rate Structure Committee. There being no further new business to come before the Board, a motion was accepted to adjourn the meeting. Director Tomsick adjourned the meeting at 9:27 P.M. Respectfully submitted, Jill Martin, Secretary Page 7

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