NEDERLAND - The Nederland Board of Trustees (BOT) voted on a major step towards the Town’s plan to acquire Eldora Mountain Resort during their meeting on Tuesday, January 21, 2025.

Ordinance 873 involves establishing a Mountain Recreation Enterprise Fund as the primary financial structure for managing the mountain.

Town Administrator Jonathan Cain, within the Agenda Information Memorandum, specified that an enterprise fund will help the Town operate Eldora as a “self-sustaining entity,” allow for the utilization of revenue bonds to finance the acquisition, and to ensure that “any excess revenues can support other Town initiatives.” 

The enterprise fund is proposed as the ideal structure for managing the business’ revenue, and can be used to cover operational expenses, feasibility studies, and future development.

Trustee Luke Miller asked about a hypothetical scenario where the Town is unable to close the deal after having created an enterprise fund and pursuing revenue bonds. 

Cain assured those present that there was no scenario where the enterprise fund can go into debt and impact the Town’s general fund. He also confirmed that there was not only a path for reimbursing some of the costs of this attempted acquisition, but that the enterprise fund could be dissolved into the general fund in the event that Nederland loses the bid. 

The BOT voted unanimously to approve Ordinance 873, officially “establishing an enterprise fund for ski recreation to support the Town's strategic efforts regarding the potential acquisition and operation of the Eldora Ski Area.”

Trustees received an informational update regarding the ending of the Nederland CarShare Program and the Town’s decision not to renew it. Though the first year was free, it would cost $10,000 to continue with the program for another year.

According to Sustainability Coordinator Cass Grady, the cost of hosting a car is not justifiable due to the low number of reservations from the community during the course of the pilot program.

The Sustainability Advisory Board recommended discontinuing the program, and promoted the Nederland RTD EcoPass Program, the Mountain Rides shuttle, and an upcoming Mobility-For-All Mountain Driver Program from Boulder County. 

As for why usage was so low, Cain stated that members of the public expressed that the sign-up process was too complicated. 

Nederland Utilities Manager Andrew Bliss, along with Andrew Rheem of Raftelis, led the Board through a presentation on the most recent Water and Wastewater Rate Study.

Bliss detailed in the Agenda Information Memorandum that this update “extends the financial planning horizon through 2034, incorporating recent data on operational expenses, capital improvement needs, and customer usage patterns.” 

The main areas of focus for the study included developing financial plans for both Water and Sewer; researching funding options for capital projects; and updating Plant Investment Fees (PIF) while also developing ways to lower their costs in the future.

PIF fees are expected to increase by 5% in 2025, as are both Water and Sewer rates. According to the rate study, a typical water bill will run $46 in 2025, and will be $95 by 2034. A typical sewer bill will be $89 in 2025, and $141 by 2034. 

As PIF fees are typically based on meter size, a ¾-inch meter would result in a Water PIF of $46,285 in 2025, and a Sewer PIF of $21,511. A 1-1/2-inch meter results in a Water PIF of $154,284, and a Sewer PIF of $71,703.

A 4-inch meter launches the fees up to $771, 427 for Water PIF, and $358,517 for Sewer PIF. 

There was discussion of potentially creating a policy to penalize property owners who buy into PIF fees at an earlier stage, and therefore cheaper rate, and then do not develop those properties within a reasonable amount of time.  

Factors contributing to the rate and PIF increases include an update to the Water and Wastewater Capital Improvement Plans, which involves the $3.8 million cost of a proposed Nederland Reservoir. 

Other factors include inflation, debt obligations, and “slower-than-expected” growth for the Town resulting in reduced PIF revenue. Trustee Tania Corvalan pointed out the Catch-22: the lack of development causing a hike in PIF fees, while the high cost of those fees also negatively affecting development.  

Rheem also presented hypothetical examples of scalable residential PIF assessment options. The goal of such options is to balance the “complexity of the calculation and administrative requirements with sustainable assessment practices to equitably recover the impacts of new development.” 

Bliss and Rheem recommended that the Town and BOT assess such options, as they may present opportunities for lowering rates and fees. 

The BOT approved Ordinance 871, placing a moratorium on the use of “natural medicine” (specifically, psilocybin) and the establishment of natural medicine services in Nederland until December of this year. The purpose of the moratorium is to allow for study and review before developing proper regulation and setting an effective date. 

On October 23, 2024, the Planning Commission had reviewed the Natural Medicine Health Act (NMHA), approved by the State of Colorado in 2022, which allows for psilocybin to be administered at registered clinics. At that time, Commissioners recommended placing a moratorium on such services.  

Only four people in the Denver Metro area have applied for licenses to run such a registered clinic since the application process was opened on December 31. Town Attorney Jennifer Madsen noted that, due to the regulatory process surrounding such natural medicines, clinics most likely will not be prepared to open until April of this year. 

Trustees reiterated that the moratorium should not prohibit any Nederland resident interested in operating such a venture from approaching the Town, as discussion on permitting such clinics for particular land uses will come to the Planning Commission’s agenda soon. 

The Board also approved Resolution 2025-05, a Resolution of Appreciation for Barbara Hardt for her years of service on the Nederland Downtown Development Authority (NDDA). 

The Resolution reads: “Barb Hardt has been a vital member of the Nederland and Peak to Peak community since 1986, dedicating 38 years of unwavering commitment, selflessly giving her time, energy, and expertise to countless endeavors that have enriched the lives of residents, strengthened local businesses, and fostered a deep sense of connection and belonging.”

Hardt’s six years on the NDDA was highlighted, as were her 19 years of work with The Mountain-Ear, and her time volunteering on the Peak-to-Peak Healthy Communities Project, Nederland Area Historical Society, Nederland Area Seniors, Panther Parents, and Friends of Nederland.

“The Town of Nederland hereby expresses its deepest gratitude to Barb Hardt for her extraordinary service and dedication. Barb exemplifies the values of our community, and we are proud to honor her immeasurable contributions.”

The Nederland Board of Trustees meets on the first and third Tuesday of every month. The next meeting is scheduled for Tuesday, February 4, 2025, at 7 p.m. and can be attended either online or in person at the Nederland Community Center. 

For more information go to: https://townofnederland.colorado.gov/board-of-trustees.