November 10, 2017
Commissioner Rose Pugliese
Mesa County Board of County Commissioners
Department 5010
P.O. Box 20,000
Grand Junction, CO 81502
Commissioner Pugliese:
Following our meeting in your office last Thursday, you emailed me the questions that you have
after looking into the River District and its finances. I want to thank you for sharing the list with
me and opening the opportunity to address your questions and concerns.
The following is at least an initial response to each of your questions, acknowledging that the
water world in which we operate is technically and politically complex and may require
additional conversation, which I would welcome.
Subsequent to my receiving your email, I learned that you shared your questions with other River
District Commissioners. Accordingly, I will cc them on this response. I welcome and encourage
follow-up from any who have concerns.
Questions:
River District has 25 staffers! Do they really need all of those people and
what
do
they
all
do?
The River District has a staff of 25 for 2018, 23 full-time positions and two
part-time positions.
The 25 staff members are in the following departments:
1 – General Manager. As we discussed, the Board recently hired Andy Mueller as the District’s
new GM to succeed Eric Kuhn, after his 36 years of service and 21 years as General Manager.
We’re phasing out the full-time Deputy Manager position in early 2018.
10 – Engineering and operations (one part-time). The River District operates and maintains two
major reservoirs and has contractual interests for water in two other storage projects (Ruedi and
Eagle Park). We use these resources to manage a water marketing program with numerous
contracts. This program is one of the only sources of new water for growth and development
available on the West Slope.
Additionally, two of the engineering staff are actively engaged in managing and coordinating a
program to leverage the recently awarded federal $8 million Regional Conservation Partnership
Project grant with $40-50 million from state and other federal sources for improvements to

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existing Reclamation projects within the District. The River District also provides engineering,
legal and administrative support to the Kobe Pipeline Project, which provides water for energy
and irrigation needs in eastern Mesa County.
3 – Legal Staff. The River District has two in-house attorneys and a paralegal. In early 1981, the
River District Board chose to move legal staff in-house (primarily due to conflict issues). Given
the complexity of the cases and workload of the legal staff, it proved a wise financial move. The
District’s General Counsel heads the Legal Department and is hired by and reports directly to the
Board. One of the long standing roles of both the legal and external affairs staff is to protect
existing water rights, both those held in trust by the District and others’ water rights, throughout
the District.
4 – External Affairs. In 2016 the Board identified improving the River District’s public outreach
as a strategic goal, so we added one position in mid-2017. The external affairs staff conducts the
outward-looking mission of the District that includes lobbying efforts in Denver and D.C., local
governmental relations, and broad education and outreach responsibilities to the District’s
constituents and beyond.
5 – Administrative Staff. The River District has a five member staff that covers human resource
management, property management, contract administration (we have numerous water marketing
and administrative contracts), management of a complex records storage program, board and
management support, daily office operations, fleet vehicle management, and other support
functions as needed.
2 – Financial Resources and Accounting (one position vacant). The River District’s outside
auditor has repeatedly advised the Board that proper financial controls require more than one
accounting position (in addition to an actively engaged treasurer). We hope to hire a part-time
employee to fill the vacant position before yearend.
River District staff is getting a 3.2% inflationary pay increase in 2018. Must
be nice.
The River District Board has a salary policy that it implemented in 1995 to ensure fairness and
equity. The goals of the policy are to be competitive with similar organizations including those
on the Front Range (actually a slight pay leader at the 65th percentile of similar organizations), to
reward performance, and to avoid any claim of arbitrariness.
The River District Board engages an outside consultant to conduct a salary survey every three
years. The next one will be conducted in the summer of 2018. In the intervening years, we rely
principally on Mountain State’s Employers Council (MDEC) data. For 2018, MSEC’s average
salary increase is 3.2%. For 2018, the Board agreed to fully fund (3.2%) the recommended salary
pool because we will be conducting the salary survey during the year and all indications are that
we’re experiencing a very competitive job market for water professionals. While the budget
reflects a salary pool increase of 3.2%, individual salary increases are awarded based on
performance and the individual’s position within the salary range. The previous two years the
salary pool increase was less than MSEC’s reported increase: for 2017 the budgeted increase was

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2.5% versus 3.1% and for 2016, it was 2.3% versus 3.2%. It is also important to note that we
typically do not allocate 100% of the budgeted amount. Employees know that average salary
increases are less than the pool increase percentage.
River District invested $810,000 last year to buy additional space in their
building...1200 sq. ft. of which are for the sole purpose of giving the board a
place to hold their monthly meetings. Was this really necessary?
In 2017, the River District, acting through its Enterprise Fund, acquired office space on the first
floor of the building in which we own the second floor. We are currently finishing a conference
room that will accommodate a variety of larger meetings as well as Board meetings. The price
was $810,000 (within an independent appraised value). Please consider that about two-thirds of
the space we acquired came with a ten-year, existing lease. When we consider the rate of return
we get from the lease revenues, it far exceeds alternative investment options for our Capital
Fund. I suggest it was a sound investment. For perspective, the Board’s decision in the late 1990s
to purchase our current office space (the second floor) has saved a lot of public money over
renting or leasing and continues to represent an appreciating public asset.
Staff and salary budget (again, 25 staffers) in 2013 was $1,515,230.
Proposed for 2019 is $2,001,191...30+% increase. What accounts for this
substantial increase?
I fully appreciate that compensation is always a focus of public scrutiny and concern - and
rightly so. You noted that staff salaries covered by the General Fund have increased from
$1,515,230 in 2013 to a projected $2,001,191 in 2019. This deserves and demands a complete
understanding.
There are several important reasons for this seemingly outsized percentage increase. First, this
figure includes a change in total staff from 22 to 25 during that six-year period. Secondly and
significantly, it also reflects a change in 2014 in nearly all salary allocations from 70% General
Fund to 75% General Fund (the balance allocated to the Enterprise Fund). Additionally, one of
the new hires’ compensation is largely covered by a federal grant (but must still be shown as a
District expenditure). When we back out the increase in the percentage allocation to the General
Fund (to compare apples to apples) and adjust for the additional employees, the 2013-2019
increase totals 10% over the six year period. I would, of course, be happy to provide additional
detail.
They have a vehicle fleet line item. Just how many vehicles does the District
own -- and why?
The River District has a “fleet” of six cars and one truck in Glenwood Springs that may be
signed out by employees for work-related travel. As you know, the River District covers 28% of
the geographic area of the State of Colorado, and our employees have significant work-travel
requirements both within the River District and to the Front Range. Providing safe and reliable
vehicles has proven to be cost-effective to the District (the alternative being paying mileage for
personal vehicle use) and has been reported by employees as a valued alternative.
What is this Employee Home Ownership Program all about? The employees

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can get a $50,000 loan from the River District to buy a house and 60% of the
loan is forgiven if they work for the River District for 15 years. Why? Who
pays their employees to buy houses...with taxpayer money?
The River District adopted an Employee Home Ownership (assistance) Program in 2008. Our
program was specifically patterned after a similar program offered by the City of Glenwood
Springs.
Regarding what other organizations provide this program, the answer is numerous public and
private employers operating in smaller and expensive housing markets from Glenwood Springs
and east have found housing assistance critical for attracting and retaining quality employees.
Our housing program administrator is Funding Partners for Housing Solutions. Funding Partners
also services programs by the cities of Glenwood Springs, Carbondale, Eagle, and Vail, as well
as Eagle and Pitkin Counties and the Eagle River Water & Sanitation District. Further, other
entities administer their own programs – the City of Aspen and Summit County for example.
The River District’s Housing Assistance program is only for full-time employees making their
first home purchase in the Glenwood area since becoming a District employee. It is not for
purchase of larger homes or a move outside of the area. Less than one-half of the employees
receive housing assistance.
In addition to Chris Treese and now Zane Kessler, the River District also pays
a contract lobbyist $3k per month. Why? They cannot cover it with 25
staffers?
The River District recognizes that D.C. lobbying can be a significant money sink; at the same
time we respect Washington’s importance to western water and the consequence of ignoring. The
$3,000 monthly line item for lobbying represents our limited commitment to federal affairs in
Washington D.C. This is for a contract with Water Strategies, LLC and is considerably less (less
than half) what other Colorado water districts are paying from similar federal representation.
Commissioner, I genuinely appreciate the time you’ve taken to better understand the River
District, our mission and our finances. I hope my answers to your specific questions have added
to your understanding.
As always, if I can provide additional information, do not hesitate to contact me.
Sincerely,

Christopher J. Treese, Manager
External Affairs

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