At their regular meeting on September 21, 2021, the Nederland Board of Trustees approved a rate study for water and sewer and approved marijuana cultivation regulations. The Board also discussed American Rescue Plan funds.

Water and Sewer Financial Plan

Nederland’s contracted rate consultants, Raftelis, had presented final recommendations for changes to the current utility rate structure and Plant Investment Fees (PIF) at a July 20, 2021, work session as part of the utility rate study they are performing. The final report has been prepared based on their final analysis and input from the Board.

The Board of Trustees approved a proposal to update the utility portion of the Master Infrastructure Plan (MIP) including a utility rate study. The Board received the MIP update in February 2021, which serves as the basis for the future needs and costs of Nederland’s aging utility system.

The update notes that “Evaluating the utility system helps to place an accurate value on the existing system and future needs.” In March, Raftelis provided information to the Trustees and received recommendations for rate structures.

On June 1, Raftelis presented three alternatives for a rate structure, which included recommended changes to PIFs. During a July 20 work session, the Trustees provided final input and recommended that Raftelis integrate into the rate study final draft a tiered rate structure that applies different rates based on the amount of water consumed. The Trustees accepted Raftelis’ recommendation that increases would be phased in over a three-year period starting in 2022.

Staff recommended accepting the final draft of the utility rate study. Public Works Manager Chris Pelletier told the Board that the rate study analysis will help make Nederland financially stable if the final plan is adopted.

Mayor Pro-Tem Jonathan Baumhover said he opposes raising rates, but he has to balance the needs of the town as a whole and put his personal beliefs on hold. He will reluctantly vote yes. Mayor Kristopher Larsen said the Board is voting on these rates, but the approval will be tied to the budget.

Trustee Eric Coombs-Esmail said he is hesitant to pass this until they have worked out the ordinance issues related to base fees for single family residences. Pelletier is currently working on that and will bring it back to the Board in October, suggesting that they should do the rate study first and then approve the ordinance.

The Board accepted the rate study with the new rates to be considered in the 2022 budget.

Marijuana zoning and licensing

Town Attorney Jennifer Madsen introduced two ordinances from the August 3 Board meeting. A Planning Commission subcommittee reviewed zoning regulations for marijuana businesses.

None of these businesses sell directly to consumers, but the committee recommended that they be approved through a special review use. The ordinance incorporates changes into the licensing table, Madsen said. Ordinance 819 removes the Forestry Zone district.

Emergency Ordinance 810, which was approved during a special Board session on August 11, 2020, imposes a temporary moratorium on the submission, acceptance, processing, and approval of any license application for all retail and medical marijuana establishments Following the moratorium, a Marijuana Ordinance Review Committee was formed to investigate, review, and analyze potential new Town regulations for marijuana-related businesses.

The Board of Trustees recommended that the ordinances be placed on an upcoming agenda with amendments to reflect that in the Neighborhood Commercial (NC) zone district, retail marijuana stores and medical marijuana centers are permitted with a special review use, approval pursuant to Chapter 16 of the Nederland Municipal Code.

The subcommittee recommended that applications for marijuana cultivation, product manufacturing, and testing facilities go through the special review use process for all zoning districts where those businesses are currently allowed. This would allow the Planning Commission and Board of Trustees to review and consider the request for the operation of these facilities, and require 500 feet between marijuana establishments.

After much discussion and public comment, the Board approved implementing the distance requirement for marijuana cultivation businesses and removing the forestry zone district, indicating that they are approved by special review at not use by right.

American Rescue Plan funds

The Town of Nederland will receive $385,319.17 in two payments, one this year and one next year, from American Rescue Plan funds. The amount for this first tranche is $192,659.59. The second tranche will come no sooner than 12 months later and will be for $192,659.58.

Town received the first tranche on June 23, 2021. The funds can be used to support public health expenditures by funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff; or to address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector.

At the August 3 Board meeting, Town staff provided financial information regarding utility bills for accounts in arrears, including how long residents have been in arrears and how much is owed per account.

The Board also requested that Town staff provide more information on how the Emergency Family Assistance Association (EFAA) could support the community by distributing funds to assist with bills. Kat McDonald, Utility Billing Specialist, prepared a report showing how many commercial and residential accounts are in arrears, the balance owed, and the date that each account had become delinquent.

Staff asked if the Board wants to pay off the accounts in arrears, and if so, how much. They also requested guidance as to whether the Board would work with EFAA to distribute funds to Nederland residents for bill assistance.

Trustees agreed that doing so would make sense. Miranda Fisher, Town Administrator, said that $100,000 is already committed for grit removal. Treasurer Rita Six said that leaves $92,000, and they will have more money coming in next year.

Board Members proposed going up to $60,000 for assistance. Mayor Larsen liked doubling the amount available by splitting it with EFAA. He proposed using the other half to help 60 residents get back to zero balance. Larsen received a nod of four from the Board to bring this back as an action item and a discussion item for the next meeting.

The Nederland Board of Trustees will conduct a work session on September 28, 2021, at 6 p.m. The next regular meeting will be October 5, 2021, at 7 p.m.