Rio Blanco Water Conservancy District recovers Wolf Creek funds; public requests better access to meetings.
RBC | The Rio Blanco Water Conservancy District (RBWCD) board of directors met on Wednesday, Aug. 30, 2023, for their monthly meeting, giving more specifics on the theft and reported recovery of millions of dollars.
Notably, the board read a statement into the record highlighting the recovery of stolen County Capital Improvement Trust Funds (CCITF) after said funds had been deposited into investment accounts with ColoTrust. Funds were recouped in part during the investigation into the matter and also as a result of an insurance settlement.
In an audit of 2022 finances approved by the district board, ColoCPA notes the theft, with specific amounts lost to wire transfer fraud, as required disclosures. Page 50 of the audit states, “In early 2023, unauthorized transfers out occurred in one of the ColoTrust accounts for a total of $3,300,000. A total of $1,799,954 of those funds have been returned.”
The remaining $1.5 million was recovered via settlement with the district board, ColoTrust and insurance. RBWCD board of directors finished the process of fund recovery in an Aug. 7, 2023, Executive Session “to accept the terms and conditions relative to settlement negotiations with Colorado Local Government Liquid Asset Trust, a/k/a COLOTRUST and Public Trust Advisors authorizing the Board President and legal counsel to finalize the legal agreements.“
During public comment for the Rio Blanco Board of County Commissioners meeting, VandenBrink clarified and updated information listed in the district’s public statement about the loss. Among them he highlighted:
Funds were successfully transferred to the Rio Blanco Water Conservancy District from the BOCC
Funds were successfully deposited with public entity investment firm COLOTrust in the amount of $3.3 million
Funds were stolen after being deposited with COLOTrust.
Federal investigators are treating the theft as an act of domestic terrorism of critical infrastructure projects
RBWCD staff and board pursued the recovery of the funds adamantly
The district’s “progression of Wolf Creek Reservoir permitting” did not falter. RBWCD’s intergovernmental partners did not not incur any losses.
“Happy to move forward, and I hope we can put this behind us” said VandenBrink, who also commended the perseverance of the district in tackling the fund recovery process.
PUBLIC ENGAGEMENT
Members of the public who have attended RBWCD’s recent meetings have made inquiries regarding access to meeting minutes, agendas, and remote attendance options. During the August meeting, Deirdre MacNab requested increased access to meeting/board information. Colorado River District water commissioner Betty Kracht asked to receive meeting agendas by email ahead of the meeting. MacNab inquired about putting meeting minutes on the district’s website. The board responded noting that they would take the requests “under advisement” and made statements about how they did not use “electronics” as part of their meeting process and that they don’t interact with their website at all. During the July meeting, McNab inquired about how the public should engage with district directors. RBWCD President Tim Winkler said people wishing to engage with the board need to get onto the district’s agenda. Regularly scheduled RBWCD Board meetings are held on the last Wednesday of each month, the next meeting will be on Sept. 27 at 6:30 p.m. at the District’s office in Rangely, 2252 East Main St.
MAINTENANCE
Director Alden VandenBrink shared information about upcoming spillway maintenance plans that will include lowering the reservoir level beginning on Sept. 8 and lasting approximately two weeks. VandenBrink said the district’s call on the river will be lifted during that time “to maintain operational flexibility” and to allow for a follow-up on repairs made last year.
FINANCIAL AUDITS
The board approved the results of a 2022 financial audit performed by Marlo Coates, Certified Public Accountant, following a presentation by Coates. Among other highlights, hydroelectric fund revenues were down, and expenses were up in 2022.
RBWCD-2022-Audit
