Trustees Appoint Justin Hill to Fill Vacancy at BOT Meeting Dec. 6

At the regular Town of Lake City Board of Trustees meeting December 6, Trustees Woods, Whinnery, Horn, Kendall, Mayor Pro-Tem Bruce and Mayor Roberts selected CEO and Brewmaster of Lake City Brewing Company, Justin Hill, as new trustee to replace outgoing trustee and former Mayor Pro-Tem Doug Hamel.
In a letter addressing the Board of Trustees, Hill stated that it was his belief that he is uniquely qualified to bring a distinct voice to the Board given his previous experience in corporate oil, his substantial involvement in small business, and his strong passion for the local community of Lake City.
Hill went on in his letter to give details of his personal and professional background, detailing what life decisions brought him to Lake City; namely, that the corporate environment of Houston felt hopeless, and that what he craved was small business, tight-knit communities and a mountain lifestyle.
Hill says in his letter that he instantly fell in love with Lake City’s natural beauty, people and community. The first weekend he was introduced to Lake City, the Lake City Brewing Company was for sale, and with the approval of his parents, Hill knew his future was here in Lake City.
The motion to appoint Hill as Trustee until the next regular election in April, 2024, came from Trustee Trip Horn, and was seconded by Trustee Whinnery; the motion passed unanimously.
Also in workshop, Lake City property and business owners Steve and Beth Ryals and Chillin’s Jeff Heaton addressed the trustees regarding a recurring sewer service issue occurring at 311 North Silver Street. Heaton wished to be a part of the conversation, as he has had similar trouble at his business location on Gunnison Avenue.

Heaton and the Ryals explained to the Board that several business and homeowners throughout town are beginning to experience problems at the location of their sewer tap where it ties into the main service line.
According to Heaton and Ryals, when the sewerline was replaced several years ago in 2016, everything worked properly for a number of years, but that each year, as the soil around the connection from the sewerline at the tap continues to settle, and when the ground gets extremely cold in the winter months, the taps back up and overflow.
Ryals stated that the issue has plagued his property for the past three years. Beth Ryals reported that while everything is fine in the warmer weather, this is not the case come winter, and the problem is costing people a lot of money. “Last year it took us three days to thaw it,” she said, “and it cost us $3,000, $2,500 the year before that, $1,500 the year before that.”
Public Works Director Jameson Johnston explained that the town staff have just begun to understand why the backups are happening because they now have a camera system they can use to run down into the service line to see what’s happening.
Mayor Dave Roberts asked the Board for recommendations; Trustee Landon Whinnery offered to do his homework regarding the Town’s liability in the matter, Mayor Roberts said he would consult with attorney Dan Krob, who was atended the meeting via zoom, Krob replying that he would reach out Colorado Intergovernmental Risk Sharing Agency (CIRSA) and see what their recommendations are moving forward.
During the employee reports segment of the meeting, Town Manager Lex Mulhall explained that water and sewer rates will be increased for 2024, and he ran through the reasons why.
His report states, “Staff is recommending water and sewer rates be increased in 2024 for the following reasons: to be able to pay for the additional annual debt service of $131,162 (20 yrs) from the $2,116,500 Water Pollution Control Revolving Fund (WPCRF) loan that we received from the Colorado Water Resources and Power Development Authority (CWRPDA) to help pay for the required expansion and upgrades to the Wastewater Treatment Plant (WWTP). The total WWTP renovations project is estimated to cost over $4.5 million. The Environmental Protection Agency (EPA) and the CWRPDA are requiring the WWTP expansion and upgrades because we have reached and even exceeded the treatment capacity of the plant during the peak summer season and likely will not be able to consistently meet the more stringent ammonia limits that go into place in 2025. The upgrades are not optional, and are required for us to continue the operation of the WWTP.”
His full report can be viewed in the meeting packet or at town offices, and goes on to give a further breakdown of the financial reasons for the rate increases. Water rates will increase 6 percent from the in- town base rate — $42.50 to $45 per month — and this is to help cover the cost of inflation. There will be a 20 percent increase in the out-of-town base rate over in- town base rate — $45 to $54 per month. Sewer rates will increase 11.65 percent in town — $51.50 to $57.50 per month — with out-of-town base rates increasing 20 percent over the in-town base rate $57.50 to $69 per month. With these increases, the Water and Sewer budget will have around a $17,000 surplus which puts the Town of Lake City into compliance with the 110 percent rate covenant for the WPCRF Loan.
Further in his report, Mulhall detailed the amended budget schedule for adoption of the 2024 Town budget. The former deadline for the County Assessor to certify final valuation of property to local governments was December 10, 2023, but it has been now been moved to January 3, 2024. The former deadline to certify the mill levy after approval of the 2024 budget by the governing body of the local government was December 15, 2023, but has now been moved to January 10, 2024, and the deadline to adopt the 2024 budget was December 31, 2023, but is now changed to January 10, 2024.
Mulhall proposes that the 2024 budget be adopted at the January 6 regular Town of Lake City Board of Trustees meeting, to give staff more time to receive feedback from the trustees regarding the water and sewer rate structure and to finalize the numbers in the budget.
After the budget adoption in January, there will be a workshop held structured, as Town Engineer Joanne Fagan stated during the December 6 meeting, “to get into the weeds” of WWTP upgrades and additional surcharges for Lake City businesses that generate stronger waste.
There was an open house scheduled for Monday, December 11 to receive public feedback and comments on the Lake Fork Housing Project Design and Site Plan, but it was cancelled. The town’s development partner in this project, Belmont Development Corporation, intended to apply for funding under the Low Income Housing and Finance Authority.
According to Town Consultant Michelle Pierce, Belmont submitted its letter of intent to apply for that funding and was informed that the Town of Lake City project would not be considered due to the tremendous demand for workforce housing in larger communities. With this information in mind, Belmont decided to withdraw its application at this time.
Pierce stated, “to be honest, we got a late start on this process and may have had better success given time to demonstrate our need and significant community support.”
Town of Lake City and Belmont Development Corporation can re-apply in next year’s round, and the Planning Commission will be discussing that at its Thursday, December 28, meeting, to be held at 5 p.m. in the Armory multi-purpose room.
And finally, representatives for the San Juan Solstice race committee were in attendance during the workshop portion of the meeting, including Lily Virden, Martha Reinhardt and Jerry Gray. They came to request assistance from the Trustees, and anyone else who would like to get involved in the annual 50-mile Solstice run, particularly to solicit extra hands for the breakfast event.
While trustees were non-committal so far in advance — the breakfast takes place Sunday, June 23, 2024 — they did promise to consider the matter and try to get the word out as much as possible to the Lake City community.
The breakfast event has in the past been handled by Hinsdale County EMS staff, but because the town is so busy that time of year, EMS already has too much on their plate and having to run the Solstice breakfast event was creating a hardship for them. Mayor Roberts suggested contacting the Boy and Girl Scouts and seeing if they would be willing to volunteer.
Hinsdale County Commissioners were enthusiastic, pledging county volunteer support for the breakfast at their meeting December 6