Board Meeting
Transcript
Describer:
AGENDA
Board of Directors Meeting
Monday, June 15, 2020, at 6:00 p.m.
7404 Yorkshire Drive, Castle Pines, CO 80108
1. Call to order the regular meeting/pledge of allegiance.
2. Roll call/announcement of quorum/disclosure of potential conflicts.
3. Consider approving June 15,2020 board meeting agenda.
4. Consider May 18, 2020 board meeting minutes.
5. Opening public comment period (3-minute maximum per person).
6. Directors’ matters.
A.Status of CPNMD’s board's commitment, on a one-time-only basis, to fund the uniform painting of the exterior (north facing) length of fencing that lies in a periodic state of disrepair on the south side of Castle Pines Parkway, between Shoreham and Yorkshire Drives.
B. Consider clarifying and restating BOARD RESOLUTION 2019-01(A), which the board originally approved on November 18,2019,regarding certain fence ownership, maintenance,replacement, and liability responsibilities within CPNMD.
C.Final consideration of BOARD RESOLUTION 2020-06-15-001 regarding the proposed dissolution of the Master Association and the equitable distribution of hundreds-of-thousands of dollars in excess revenues to Castle Pines property owners west of I-25.
D.Prevention/mitigation strategy for combating graffiti,vandalism,and destruction of CPNMD property.
7. Finance Director’s report.
8. Review draft 2019 financial audit prepared by CPA firm of Rubin Brown.
9. Consider approving and/or ratifying May 2020 payables (check numbers 25238-25259).
General Fund and the Debt Service Ratify $121,230.34
The Enterprise Fund Ratify $23,855.92
Electronic payments Ratify $523,604.35
Total Expenditures Ratify $668,690.61
10. Consider approving financial report and items from Finance Director.
11. Open Space Manager’s report.
12. Legal Counsel’s report.
13. District Manager’s report.
14. Closing public comment period (3-minute maximum per person).
15. Adjourn
Describer: The video starts on graphic with a white background and forest green letters which says “Castle Pines North Metropolitan District June 15, 2020”. The meeting opens on a shot of all board members present.
Board President David McEntire:
Good evening everyone online. Good evening colleagues, consultants, the audience. Huge crowd this evening. For those that aren't able to see the crowd behind our manager, it's made up of of Tina Hansen, who is from the Chamber of Commerce. We're going to hear from her later, but thank you for coming. Otherwise, the masses are generally online and just thought I'd share. If you would please, consider this meeting being called to order and join me in the Pledge of Allegiance.
Describer: The board members and the audience rise from their seats and recite the Pledge of Allegiance, as the camera pans from left to right from the board to management staff to the audience and back to the board. When they are done, they sit down again.
All Speak:
I pledge of allegiance to the flag of the United States of America, and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all.
David:
Thank you. I'm going to conduct roll call. Upon doing so, please announce your presence and disclose any potential conflicts, if any.
Board Member Director Robert Merritt:
Director Merritt. Present. No conflicts.
Board Member Director Denise Crew:
Director Crew. Present. No conflict.
Board Member Director Chuck Lowen:
Director Lowen. Present. No conflicts.
Board Member Director Chris Lewis:
And Director Lewis. Present. No conflicts.
David:
Director McEntire is present and has no conflicts.
David:
Item number three is consideration of the June 15th border. Excuse me. The June 15th, 2020 board meeting agenda, which we are considering tonight, as well as the May 18th, 2020 board meeting minutes. We can combine the two if you like. Anyone having any. Well, I would entertain a motion to approve both items three and four at this point.
Robert:
I'd like to make a motion to approve the minutes for June 15th, 2020 board meeting agenda as well as the May 18th, 2020 board meeting agenda minutes.
Chris:
I second it.
David:
Got a motion on the floor and a second by Director Merritt and Director Lewis to approve the meeting agenda for this evening as well as a board meeting minutes of May 18th. Although or is there any other comments, questions or concerns of the board at this time? Hearing none as it relates to items three and four. All those in favor, please indicate by saying yay. And those when called upon that do not agree comment by saying nay. All those in favor. Yay. Yay. Yay. Any opposed? Hearing none. Motion carries.
Item number five is our open public meeting. Again, we have a young lady in attendance, Miss Tina Hanson. She's from the Chamber of Commerce. We're not sure what. Castle Pines Chamber of Commerce and and, we're not sure what your official title is but when you introduce yourself, feel free to do so. You.
Describer:
Tina Hanson, Executive Director of Castle Pines Chamber of Commerce, rises and comes to podium facing the board to the right of audience seating and to the left side of the board, near staff seating which is adjacent 90 degrees to the board and to the audience.
Executive Director of Castle Pines Chamber of Commerce, Tina Hanson:
Okay, there we go. Sorry about that.
David:
You have the floor. Thank You.
Tina:
Thank you so much. Yes. My name is Tina Hanson. I'm the executive director, actually, of the Castle Pines Chamber of Commerce. Recently took the position that Amy Shanahan left. I think some of you know, knew Amy. So she left her position in November, and I became the acting executive director of the Castle Pines chamber. And I'm thankful for that role. Tonight, I know I have three minutes, and I like tend to talk a lot, so I'm just going to keep it keep it concise. I just first want to thank you all. You have been longstanding supporters of the Castle Pines chamber. In fact, you've been a patron member of the Chamber since 2016. And we are extremely, extremely grateful for your generosity.
Truly, I'm also very thankful, just to present my case for membership here to you this evening. I, we we I know it's kind of been a long time coming. I was supposed to come in January and then there were conflicts and then Covid. And so I'm thankful to be standing in front of human beings to, to give my case for membership. I ask this evening that you consider your continued support of the Castle Pines Chamber as a patron level member, as a partner with the chamber. And I mean partnership in the true sense of the word. What we would do for you is that we would promote you throughout the community and help you foster a continue your positive image within Castle Pines.
We market you, through many marketing outlets, including social media and all sorts of different print media. I actually have an ad coming out in the Castle Pines connection that I would like to promote our patron members in. So we do things like that in the, in the connection and other media as well. And basically we want to be a partner with you to help promote your voice in the community and and that you are standing by your chamber, which helps not only businesses, but obviously the residents that benefit from the success of their businesses. So I ask that what we do for you is basically partner with you to keep your logo on everything that we, that we do.
We are still doing virtual events, we're still doing a lot of newsletters, tons of outreach to our members and the community. And basically your logo, as it has always will go on everything. I just kind of want to direct you to the second page here behind the first page in your packet. So in addition to other things that we can do for you, your logo is right now listed on every E newsletter that we send out twice a week. So over 100 newsletters go out to more than 3000 people in the Castle Pines, and surrounding areas. It's on the front page of our website, large and very visible.
So any any visitors, which there have been many lately because of the Covid crisis, we've seen more traction to our website than ever from small businesses looking for help. A member spotlight in the Chamber Insider, which is our chamber newsletter where we would just spotlight what basically would probably would be a thank you to the Castle Pines, North Metro Association for your support.
An email that goes to 3000 people, anything you would want it to be and all sorts of marketing and promotion and then credibility. You, you know, you are a long standing entity, obviously in Castle Pines and we just want to help partner with you to keep your reputation positive, to the community by showing that you're partnering with us. And then events, we're doing virtual events and soon to be in-person events hopefully. And so, we would have the opportunity to host a business after hours here or a virtual business after hours or something that shows you're reaching out to the community.
And then right now we have six patron sponsors. It's right now the Castle Pines North Metropolitan District. I've kept your sponsorship, going throughout this kind of time of of, what I want to say transition, Covid and all of that. But Castle Pines North, the canyons, which is a development here obviously. The canyons, Castle Pines so that's Shea Homes, the Castle Pines connection, Castle Rock at Venice Hospital and the city of Castle Pines. So right now we have six. Sorry, I'm probably going over, so I'll I'll wrap it up. Six patron sponsors that are really the bread and butter. So what that's kind of what we do for you. Just real quickly what your support would mean to us.
Truly and I told Jim that the Castle Pines chamber is experiencing quite a hardship during this crisis. In fact, I'm the only acting employee of the Castle Pines chamber right now. I had to furlough all three of the other women that were working part time with me to help save on our budget. We have enough reserves for 6 to 8 months in our in our budget. But we wanted to be diligent with our funds and so we did furlough everyone back on April 10th. So that being said, I'm the sole and acting employee and with your support, truly I mean, it would equate me being able to bring someone back on from Castle Pines. Our membership director, Shannon Goedel, lives in Castle Pines, and with your support, I would be able to bring her back part time to help me with membership.
There are members that want to join, but I'm just not able with two small children at home and other, I do marketing and I do executive dir, I'm wearing all the hats, as you all know, happens. And I would love to bring someone back on so your support would help me add to my staff. Also help us continue to help small businesses. Mimi's Carpet Care and a few others trestles they have said that our our support has kept their doors open during this time, and that means that's food on their table and and their families are supported because of the help from the chamber. So your support would help us continue our mission immensely.
And truly I guess I can only just humbly ask that you really I guess now we need your support more than ever unfortunately, in this, in this world that we're in. So I just hope that I can humbly ask you to remain a patron sponsor for the Castle Pines Chamber. And if I would love any questions, or I know I went over time so I'm sorry. I do that.
Denise:
I have a quick question. Sure. You said we've been a patron sponsor. Since 2016. What did we do before that? Do you know?
Tina:
I don't have a record. I'm sorry. I, I don't have a record of that, actually. I'm sorry. I could ill have to.
Denise:
Just wondering what our history is.
Tina:
Right. I've seen and unfortunately, I'm sorry I'm new to the role a little bit too. But I did see since 2016 is when, I don't believe that's when you obviously started your membership. But I know that's when you started the patron level. I'll have, I can let Jim know. I can look that up.
Denise:
Be great. Thank you.
Tina:
Sorry. Any other questions?
Chris:
So nots, thank you for being here. Sure. What was on your agenda for this year? So I guess you're lacking some funding. And I like the fact that we're number one on your entrance funds. I think I don't know if it means anything that we're not bolded. So if we fund this, then we will be bolded and stand out. It's just kind of life.
Tina:
Oh, I think it's maybe I need a better logo. Yes.
Chris:
Just giving you a hard time.
Tina:
That's okay. I can definitely put fireworks around it if you want or anything you want. Yes, yes I can I can make it a little bigger.
Chris:
But what's on the agenda for this year that you guys have that, would be really beneficial to the community or the business community?
Tina:
So our board of directors meets every quarter, and we're still looking to hopefully do some big community events in the fall. We have a race through the Pines event that draws a couple thousand people. We canceled our food truck frenzy event, I'm sorry, postponed our Food Truck Frenzy event, which is in Elk Ridge Park. That usually has about 3000 people to hopefully do a fall food truck frenzy, which would be a beer fest, Oktoberfest kind of an event.
So we're hoping still to do community outreach through those big events in the fall. If not, we are still doing virtual ribbon. We're doing a virtual Ziggy's ribbon cutting, which of course, we mentioned all of our patron sponsors at every ribbon cutting that we do in every event that we do. But we're doing virtual ribbon cuttings, virtual luncheon learns. But basically for the community too we and taking ads out in the paper to thank our sponsors. But for the community, our main community events right now are are pushed back to the fall, September and then October. And you, of course, will be splashed all over those if and when they're held.
Chris:
And, have you guys now that, you know, there's a big initiative to essentially dissolve the Masters Association. Have you guys had any type of conversation with them in terms of picking up any of their type of activities or anything like that?
Tina:
That's a really good question. And they actually, I know they held like a, what I want to say yard, not yard go garage sale or a big community sale I don't know if that actually happened or not. But no, we have not been asked to take up any of their activities that they've done prior. Partially, I think, because I have no event person really right now and so it's just kind of like they're not putting more on the chamber as of right now.
Chuck:
Tina. Yes. How many members does the chamber have right now?
Tina:
246 members. About lets see, about 2 or 3 years ago, we were at about 130, 135. So Amy Shanahan, all credit to Amy, really increased our membership the last three years. We're at 246 currently, and one just came in today. I think a new auto shop or something just opened down the street here like foreign auto. I forget what I don't know, but they just joined today. And then when the East side opens, of course, you know, there'll be more development and more members that will come from there. 246 right now, which is a huge increase a large increase from it was 100 . I want to say 138, maybe three years ago.
Chuck:
So those are all businesses?
Tina:
Yes. Some home based businesses. And some from Parker, some from Lone Tree. They're not all brick and mortar in Castle Pines, but they are all businesses. No individuals.
Chuck:
Thank you. Yeah.
David:
What would the percentage of the Castle Pines businesses be of that membership?
Tina:
I would say, it's probably about 60% of the Castle Pines businesses.
David:
And their annual dues is, on a calendar year?
Tina:
There. Yes. So if they join in January to January, February to February.
David:
Fiscal year.
Tina:
Yes. Correct. Okay. Join data. Sorry.
David:
And we haven't seen any drop off or significant drop off per se. Everyone is is holding on right?
Tina:
A lot of people are treading water and what we're doing right now is saying if they can't pay, we'll just keep their membership until they can. So, we've had about a 25% increase of dues that are due, accounts receivable. People that haven't paid more than 25% more people this year than last year. But we haven't dropped them as members, we're just working with them to I'll keep them until they, you know, until they can hopefully get back on their feet. We're not dropping people.
David:
But they're 60% of our local business. Folks that are members. Correct. What do you tell them besides what you have shared with us? What what do you what do you tell them is your number one goal or them individually? I have to believe it's a common goal. Yeah. And what is that tagline or that promise?
Tina:
You know, it's interesting. Everyone wants business, and they want help with their business they want clients. So I tell them that I'll connect them with potential clients, and that's all that it that's all we do is introduce them, make the introductions. Whether it's with a handshake or now with a virtual virtual in a virtual meeting. We're introducing them to potential clients, which they then turns into revenue for their business.
David:
And so the events are not only revenue generating for yourself. Hugely. But also a means to introduce clients to businesses.
Tina:
That's the reason. That's, the reason we do those events, because they're very mission focused, because that is a chance for people to get a booth shake, go out, give out their business cards, hand out their marketing materials, and do business and meet potential clients.
That's the sole, not the sole reason, but it's a large reason we do those big community events and also, of course, to bring the community to community together and have a sense of camaraderie with businesses and residents. But anyway, yes, that's why we hold those events. Now, that being said, because we canceled Food Truck Frenzy and the Vino in the village event in August, our budget took an enormous hit. So that's another reason why I'm really hoping you'll support us.
David:
I'm just wondering what the opportunities are out there and what kind of success you would have in, asking a, an existing business that's either in the business of events or an individual that you might know that is competent in running these things, if they would be, inclined to be compensated along with and based on the success of that event. So on a you know what I'm talking about? Okay. What what as opposed to having somebody on that could certainly be busy doing other things.
But if we couldn't afford to do that for now, can we, as Chris said, pick up some of those ideas from the Master Association that is is dissolving. Pick up some of the slack from the city where they have a half time person that is. Jolene. Working on some of those things as well. But then a lot of your ideas, which are soul and separate of what their edict or their goals were, but more specific to the goals of the chamber. Which is to introduce clients to businesses, and businesses to businesses, so that they're successful. Do you think there would be an opportunity for an individual or an entity out there that would take on the task for a fee for each one of those?
Tina
Kind of like a contract almost contract work, maybe, but.
David:
With commission. Yes. Of some sort.
Tina:
I think there is. I think that's something to discuss with my board of directors. Kind of it's a staff shift of what we have currently in place. But I'm very open to, to figure to discussing new ideas and strategies regarding staff. Yes. I mean, I actually was an executive director of a chamber in Omaha, Nebraska, 15 years ago. And that's how we ran our events, was that there was an outside event company that really ran all of our events. I was the executive director, and we hired a company to do the events. So I've done it before and it is there is an opportunity.
David:
If you could, run that up the flagpole and let us know what your feelings and thoughts are in that regard. We know you're overwhelmed by yourself now, but I believe there's some real benefit in in those events. And if you would allow us then to, get that response from you and anything else that you may have missed in a follow up to this board, that would be great. What we can do for you is, is, take that under advisement upon receipt, hoping it would be with maybe within the week. Of course, yeah. And, and and, see if we couldn't get back to you as timely as our next meeting. Would that work for you?
Tina:
That would be wonderful. Yes, that would be very timely and seems feasible. My question then is what is your what is the reasoning that you would think we would need an outside entity or a company, rather than hiring back the current part time person that we have?
David:
Didn't know they were part time. Yeah. And and if they are, and it makes sense to call it what you want. Yeah. But I know that my interest is, is more focused, a little more laser focused than the broader opinions of some folks on what chambers do or don't do. I think that when you're generating revenue for yourself and you're generating clients for the business, it couldn't be a better combination. If that one person can put on or you can commit to a half a dozen or a dozen or a dozen and a half before the end of the year really gets us, gets me excited.
I don't know about my colleagues, but more is more. We'd like to participate in that if you think that you can pull it off. Tough spot. That's the ask.
Tina:
I. I. I like your laser focus, I appreciate it. And yes so my, the staff that is furloughed is Whitney Shank and she's a Castle Pines resident. She's an event professional. Whitney S-h-a-n-k. And she is dynamic when it comes to events. I've never seen anyone do them better. So my preference would be is to bring her back on once we get the okay.
The only stopping point I have is when is it going to be okay for communities to hold large community events, and then no one seems to have an answer. If I were given the answer that we can go ahead today, I would just full speed ahead and do as many as we could feasibly do, properly of course and executed well.
I mean, I've executed parades, I mean, a long list of things that I've done for other communities, that are within tens of thousands of people, that are really, really great for the community and the businesses. It's funny, a parade is so funny. You think it's just a parade, but businesses hand out their stuff and, you know, thousands of people come and kids perform, and it's such a great thing. And I've executed those. And so, I mean, I see big, I have big, a big picture of what, what we can do in Castle Pines and if taking some of the Masters Association's events over, if that's part of the the big picture, too, I'm willing to consider, I would just say I would definitely bring Whitney back.
It would be the smartest move in my organization as soon as I'm given the okay from the governor. I that's the hard part you know, that's the hard reality if there's going to be a second wave. I, I meet with my chamber peers every Monday, from all over Colorado, all the other executive directors, and they were all in the same boat. We're ready to do these big community events and get back to business but I just we just we don't know when it's going to be okay to do so.
David:
How about this. Time is uncertain. Correct. The amount of the participation contribution is uncertain. Can you bring back to this board a more certain outlook in writing what you propose? Yes. Can it as it were. Something that we could pull the trigger on. Yes. When the governor and Tri-County health, etc. are allowing us to move forward. That makes sense. So that we can put a number and a time frame to it, but we're getting ready to enter into our budget season as well, etc.. So all of that is very fruitful for us, if you would. Yes that's. We'll wait on you. Okay?
Tina:
Yeah, you wait on me. No problem.
David:
All right thank you Tina.
Tina:
On a side note, I was Miss Nebraska too, so I had an interview just like this, at Miss America. I really did. All the judges fired questions at me about Tom Osborne and you name it, so I can handle it. Thank you. Thank you very much.
David:
Thank you again, Tina. And if there's any any questions, call Jim. Thanks, Jim. I'm going to close item number four which is or item number five, which is our public comment period. And move expeditiously here on to director's matters. Director's matter A is a status of the Castle Pines North Metro District's board commitment on a one time basis to fund the uniform painting of the exterior, or the north facing length of fencing that lies in periodic state of disrepair, or did, on the south side of Castle Pines Parkway between Shoreham and Yorkshire Drive. I'm pleased to announce Jim's latest report to, late today that that has been accomplished.
In driving to the meeting tonight, it looks better than I've ever seen. Job well done. If there's any comments, we can take them now or when there's a motion made to approve the resolution that is, before you. As you received into your board package, we have a clarified and restated resolution specifically for the purposes of separating the needs of our homeowners, as it relates to maintenance and and not replacement. What I mean by that is that the replacement, any future replacement, should and would be required to be placed on their property so that there's no ambiguity with respect to the ownership and the general responsibilities of, of, owning a structure like that. Are there any other comments or questions, pertaining to either the, the condition of the fence, what's taking place to this moment or the resolution before we contemplate a motion to adopt the resolution as stated, clarified and restated resolution number 2019-01A.
Chuck:
I have a question of Jim. I drove by it this morning. I drive by it every morning. The fence. But I noticed this morning how good it looked and I thought, wow, they're they're really getting on with it. But I did notice up on this East end, there were still a couple of branches hanging over it and forcing the fence out a little bit. It was bowed where the branches were. You've probably gone by today and checked it or I don't know if anybody else's inspected it.
District Manager Jim Worley:
I went by, probably about noon with the the people that did the work for us, and we walked the fence on that. I'll go back and look for that. It might be one or two. We went through before last week we went through and and shaved a bunch of it off as much as we could. But I'll go take a look at that.
Chuck:
*inaudible speaking* Anytime you have the wind with a branch on the fence, it's going to damage it again. And it wasn't serious, but it was hanging over and it looked like a dead branch. Oh. But when I'm driving along, I'm trying to miss everybody else maybe I'm wrong. But I think it takes it would take another look. I will. Toward this I guess the south end with the, your east end.
Jim:
Which be closer to this way.
Chuck:
Closer this way.
Jim:
Yeah. I'll go out there morning walk it for you. You bet.
Chris:
The branch that I think you're referring to, Chuck is on the split rail fence. It's over the split rail fence. It's just like. Oh. And it's huge.
Jim:
I see what you're saying.
Chuck:
It's not huge. It's just. But you can see it bowing the fence out so.
Chris:
No, it was actually a huge branch. It's almost a tree.
David:
*inaudible speaking* Going to get with, Craig on that. I did. To get the board understanding of our M.O. in that regard.
Jim:
What we normally do in those cases. Because that tree, if it's the one we're talking about and hopefully it's the one you're thinking of Chuck. If they fall over like that, which happens, then we usually kind of knock on the door of the homeowner and say, would you mind taking care of that? So we haven't done that yet. We're not staying in that area remember, that's the split rail section down there. But, if we don't see any action next day so we'll go knock on the door, give them a call and ask them to remove it. We have been we have been known to go and do that ourselves if it's going to damage some of our stuff. That one while it looks terrible, it's not damaging our stuff. And so but we'll get we'll get ahold of them and say.
Chuck:
I don't think that's the one, but okay.
Jim:
Okay but I'll also look at the solid part. That's probably where you're talking about.
Chuck:
It's the solid brand new stain that I was looking at.
Jim:
I'll look at both of those tomorrow. You bet.
Chris:
Okay. Well, I do want to, essentially interject and commend the district for the job well done in there. And, this is closer to me in that I'm on the HOA for CPN too. So when I see that, you know, the metro district is doing a very outstanding job painting the privacy fence, which I am currently doing on the CPN too and it's costing me a whole lot of money you know. What what that tells me is, you know, we are doing our duty as a community relations organization here. We're supporting the district by doing something that should have been done for multiple years now. And what is important about this is one, you know, it looks better and it benefits the whole community.
But two, it also gives that area, specifically HOA one, an opportunity to revisit that area and the fence maintenance. Due to all the contractors that went through there, you know, my first, you know, I called you this week and I spoke to David. I my first reaction was, why are we painting the fence when there's it still needs to be maintained? I mean, I'm replacing pickets. I'm replacing one inch pickets, I'm replacing six inch pickets on my CPN fence. And we're going out there painting it. So, you know, my understanding is the fence is since it hasn't been maintained, its livelihood is so small that it doesn't even worth it for us to go fix the the portions that are wrong.
And when I say we, I'm essentially referring to the homeowners because they're the ones that are responsible for fixing their fence. So I would like to take this opportunity to make sure that the community understands that what the metro district did is essentially give them a little more time to have conversations with their homeowner association, who happens to own all the rest of the fences for HO HOA one. And we have these 12 or 13 homeowners that are left out on an island to essentially maintain and fix their own fence.
So that would be what I would suggest. Take the opportunity that the metro district had stepped up for you. Take the time that you have and you don't have a lot of time because something is going to happen to that fence, and if it falls down, well, the metro district will do our fiduciary duty. So take the time to work with your HOA and get them to spread the cost out, or at least take ownership of that like they own the rest of the fence. So good job and getting that done. I do appreciate that. Thank you.
David:
Thanks, Chris. I want to echo your comments in regard to the opportunity that that staining has provided, not only the community, to clearly define who's responsibility that fence is, today, but but who's it whose responsibility that fence is from this point forward. And, we will be doing that with a, a maintenance easement that will we be recorded, shortly on the individual adjacent owner's property, just to make sure that never again are any of them surprised of the responsibility that they have or taken off guard as it relates to their purchasing decisions or the subsequent budgets that we all, embrace as a part of, just getting through each year, as a family.
So, a lot of detail has gone into, resolving this once and for all. HOA one, I agree, needs to step up and take the opportunity to pick up that additional fencing and include it in their budget more specifically, and help those folks, to maintain that, all 450 of the of the members there, as they do the rest of that community and like all other communities within the city.
That being said, if there is any other comments, make them now. Or if anyone is inclined to make a motion to adopt that resolution I think we're there. Hearing no more conversation, I'd like to make a motion that this board of directors approve the Clarified and Restated resolution number 2019-01A having clarified the certain unauthorized fence ownership, maintenance and replacement liability responsibilities within the Castle Pines North Metro District, Douglas County, Colorado. Is there a second second?
Denise:
Second.
David:
We’ve got a second from Director Crew. Any further conversations, comments or concerns?
Might take the opportunity to ask, Council, I know that you have weighed in daily on preparing these documents. Are you comfortable?
Legal Counsel Kim Seter:
I am.
Board Voting All Speak:
Very good. We've got a motion, we've got a second on the floor for approving this resolution. When called upon, please indicate your approval or disapproval. Director Merritt. Yay. Director Crew. Yay. Director Lowen. Yay. Yay. And Director Lewis. Yay. Director McEntire is a yay. The resolution passes unanimously.
David:
Move on to directors matter 6B. This is a consideration, clarifying and excuse me, that was B, this is 6C. Final consideration of the board resolution numbers 2020-6-15-001. Regarding the proposed dissolution of the master association, the equitable distribution of the hundreds of thousands of dollars in excess revenues to the Castle Pines property owners west of I-25.
Comments, questions from the board?
Chuck:
Can I ask Chris a question? You seem to have some knowledge at the last meeting, about what the Master Association was doing moving forward. Are they closer to what the plan is, or are they still deciding, or do we know where we are in this fluff?
Chris:
So the Masters Association, the Castle Pines North Masters Association are a lot closer to where they plan to dissolve the Masters Association and then reorganize it to support Huntington Hill and Claremont Estates. The essentially the meeting was held last week. I think it's June, June 10th, maybe where they outlined the plans to the delegates. So now all the delegates have packages and hands and we're all have to vote on the dissolution. And then essentially they have a list of covenants that are going to be in place for those two community, and we have to vote on those.
And the vote is due on the 26th. So they're closer. So what I would say is that, you know, this process was supposed to be done in May, May the whole process right. And when, when we first talked about this and, you know, went through the whole process, you know, it was going to take, you know, 30 days to the most, maybe 45 days to get the resolution through, draft all the documents and out to the delegates to essentially vote on this plan that's going forward. You know, I think I was a little hesitant in terms of voting on the resolution that we have here to give them the leeway and the opportunity to essentially execute on the commitment that they made. I'm also, confident that the current board of directors, so they had a vote, a couple of months ago, the current board of board of directors, I think they got three, maybe four new board of directors, along with the existing board, you know, are fully in agreement that and the desire to to close the Masters association.
So they voted last week and it was unanimous 6-0 on each one of the resolutions, which is great. And I'd like to take this opportunity to thank them for doing that, because I think that's very good for the community because once this is dissolved, essentially we've reduced another layer of government within the community of the masters association. And as we just were, spoken to by Tina here from the, commerce, you know, some of the things that they do that can be picked up very easily and that's good. So we have that conversation going. But at the same time, I think from the home, from the Masters Asso from the the Metro district's position, I think I am fully, 100% in favor now of going forward with our resolution, because I think we need to essentially keep the pressure on.
Not that we have any skin in the game. But we need to keep the pressure on from a community perspective. We've we've done surveys, we've had feedback. The community overwhelmingly told us, yeah, they're in full agreement that we need to dissolve the Masters Association. And I think it's probably we've given, Masters, Masters Association, the leeway they needed to execute on this. I understand there's Covid, but I think the metro district needs to essentially go ahead and and go forward with the resolution, essentially telling them, okay, this is our position and here's where we stand. I don't know if I answered your question.
Chuck:
You did very well. Thank you.
David:
I was just taking a look at the file that I have. And while it's chronological in order, I've almost reached the end. And to say that it was something that they had in mind and made a commitment to finish by April or May, is is, I’ve either skipped over a page or didn't get that one because mine was, conversation that had been memorialized, to be, in effect or that dissolution contemplated and, and executed by the end of the year. So you're very kind in allowing all of the reasons that they brought to the table and all the nuances.
And this board has been extremely reasonable and I thank my colleagues sincerely for their patience in this regard. I'd just like to read what our resolution is for the record, before asking for a vote. Number one, dissolve the Master Association and equitably distribute to the Castle Pines North Metro District property owners the hundreds of thousands of dollars in excess revenue that the Master Association has collected over the years from Castle Pines property owners.
And number two retain the services of a professional election firm, a designated election official, or the Douglas County Clerk and Recorder to responsible, responsibly and transparently manage every facet of the Master Association pending dissolution, election and associated voting. That's the resolution. That's the vote that is up this evening. But in closing, before I ask for the vote, I just want to reiterate that we support Claremont Estates and Huntington Ridge homeowners.
We desire to secure continued HOA oversight and services with the provider of their choice. As long as doing so is in no way as long as doing so in no way encumberes by the overwhelming majority of property owners or neighborhoods in the existing Castle Pines North Metro District that seek to terminate their respective relationships with the Master Association. Do I hear a motion?
Chuck:
I'll make that motion that we accept Resolution 2020-06-15-001 concerning the dissolution of the Castle Pines North Master Association.
Chris
I second it.
David:
Thank you. We have a motion, and a second to approve this resolution as presented. Are there any other comments, questions or concerns from the board?
Chuck:
Just again I have I have a quick, quick I'm sorry. Go ahead Robert. Not to belabor the point, but on the, resolution number two, to involve professional firms or the clerk and recorder. Kim, can you clarify, is that something that the association, Master association would pay for if they had to? Is it normal? Is it customary? Is it appropriate? I'm not. I've never seen a dissolution before.
And I know there needs to be some watchdogs, but isn't that what they would be?
Kim:
Yeah. Typically in Colorado elections. So this is not a governmental election so it's not required. But typically, elections by small governments are run by a designated election official. And the larger governments that turns out to be the clerk of recorders most of the time. So the language that's in there is suggesting that they follow the same kind of procedure that you would follow in the district.
Chuck:
They then would be responsible for hiring the clerk and recorder per se. Correct. Would they have to?
Kim:
Pursuant to the resolution? Yes. Well, your resolution is really stating your position. So they're they don't have to follow it. You're just stating that you want you want to see a good, fair election and you want to see it controlled by professionals. Thank you.
Chris:
And on that point, because as a recipient of the package to actually vote on one of the, the statements in the package does say that, well, they're not going to use a court recorder and so forth. But one of the statement does says that it is transparent and it's open to any of the homeowners or anyone to come and review it, review any of the records and anything else. So that's one of the statements.
Robert:
Additionally, I just wanted to bring to attention, and highlight the last and new paragraph, which says that in closing, that we support the Claremont Estate's and Huntington Ridge homeowners and their desire to continue the HOA oversight and services of a provider of their choice, they did add a new part to that, and I hope that helps as well.
Board Voting All Speak:
If there's no further discussion, comments, questions, concerns, I'll ask for the vote. We have a we have a motion. We have a second. When called upon, if you'll indicate your approval with a yay or disapproval with a nay. Director Lewis. Yay, I approve. Director Crew. Yay. Director Merritt. Finally yay. Director Lowen. Yay, approved. Director McEntire is a yay. Motion carries unanimously. Thank you.
Chuck:
I think we ought to thank Chris for bringing us some good knowledge. More than we typically find if we're not in that environment. So, Chris, thank you for sharing.
David:
I join Director Lowen in that in thanking you for your insight and your, more than anything, your participation in that whole process both as an individual, a homeowner, a sub HOA member, a sub HOA director, and a delegate to the Master Association and now a director of the Castle Pines North Metro District, a reservist. Shall I go on? A husband. A father. And by the way, early happy Father's Day to the fathers here and those that act as fathers when the father isn't there.
Anyway, thank you, Chris. And, yeah, it's unfortunate that we didn't have the opportunity to forego this resolution. It is my opinion that the voting, the delegate voting, which is to have reflected the residents purely, could have been anytime from call it the end of the year until the middle of this year could have taken place before this meeting, no doubt in my mind. But, again, that's just me saying and, I appreciate, the progress that we've made, the progress that you've been keeping us apprised of.
And I applaud the work of the, previous management company, the previous directors, for all of their hard work over the years and implore them, implore them to finish, this last chapter of that book and allow us to move on, within this community free of, another government layer or quasi government layer and the fees, associated with it. With that, I want to move to item number seven or I'm sorry, let's do, item 6D the last one under Director's matter, matters, which is a prevention or mitigation strategy for combating the graffiti and vandalism and the destruction of the Castle Pines North Metro District property.
I was advised today, that the website has now been charged with the appropriate information. A more succinctly, instead of the $250 reward, a $1,000 reward offered to anyone and everyone, that shares with us, that leads to the arrest and conviction of the perpetrators that are either damaging or destroying our our property. It's all on the website. It's now official thousand dollar reward. Thank you Director Lowen, Merritt, Lewis and Crew for that update and and and clarification. Any other comments, questions about that matter?
Denise:
Has there been any update in the last month? Anything, any new graffiti, any problems? It's been good?
Jim:
There hasn't been, which is the good news. We we had a big rash of it about a month and a half ago, and it was when everything was shut down. And we were having a significant problem with, with teenagers that went out to the skate park and damage the damaged our signs. We spent $3,000 on a gate that we put up and and shut to damage that.
Probably frustration and, not a lot of smarts, but the last month or so, it's been okay. We haven't seen any issues on it. We keep an eye on it because we see that park all the time and and hopefully it's behind us, be honest with you. But it's very frustrating to see that damage that was done. And we even got a picture of a guy doing it, but he had a mask on so we couldn't tell who he was aside. And so not lately and I hope it continues that way. To be honest with you. Yeah.
David:
Anyone else? Again, thank you for your support. We're live. Let's hope that we can stem the activity of the vandals and the vandalism. I know that's our heartfelt and sincere goal. Again, thank you. With that, I'd like to move on to item seven, which is, finance director's report. Eric, would you be so kind as to bring the board up to speed with, not just the contents of your report, of which we've had now for some time, and there may be some questions about it, but anything else that has happened over the course of the week, that you want to, convey, now's the time, buddy thank you.
Financial Director Eric Harris:
Certainly. Good evening. In front of you have the financial report and the include inclusive of that is the May 31st, 2020 financial statements. I will make one comment. We do have several accruals in this report. This is the earliest time you can have. We're having the board meeting, on the 15th of this month.
This is now the third Monday of the month. So we did bring in as much invoice active we can, but there are still numerous vendors that are submitting and processing invoices and getting to the district. So May activity may be slightly out of date, but like I said, we do review for accruals on a monthly basis and put those into these financial statements.
We the district does process accounts payable every two weeks. So they did that this past Wednesday. And then we'll do it in two weeks from that date. On this report, numerous updates as we're getting in through the year, you will see, I will continue to update you on collections to date based on prior year and including the present events of Covid 19.
Great news so far this year, we are ahead of property tax collections at approximately 75-76% compared to the prior year of 69% collected. So great news there. There are numerous items. Yes, there is new numerous items. The state assembly, the governor are considering amongst those is the delay in property taxes for residential and commercial users to pay those without penalty or little penalty.
So it's not so much an issue here because we do have a lot of residential assessed valuation within this community. So we will continue to monitor that and including, the accounts receivable associated with the districts, enterprises and utilities. Under the enterprises, during May 2020, the district billed approximately $346,000 in water service charges. That is just charges for that rate.
One thing, looking at that graph below, you have the total billable usage this for the month of May and, usage to date, it's been the highest it's been over the last four years looking at that. This is billable usage. So numerous items come into play here. You have, rate, rate impact over the, compared to prior years, usage impact and including the month of May was significantly higher.
So you have users who are hitting those higher tiers. So that's one item last year, this time, the district billed $192,000 in water service charges. There is a component of that is based upon higher usage within the district usage or users excuse me. So you have Lagae Ranch in that area. So as we continue to add those, single family unit equivalent, taps on to the system, you will see a lot higher usage associated with that.
As the district continues to optimize their system, they will see what parts of those systems use those charges and further isolate those commercial users as well, so we can identify and be responsive to their needs. So that that is a usage impact. Item 2B I am currently working with, Jim on numerous updates to projections.
You will notice that there are some employment updates that are listed here. We did have a there was an employee that resigned and his last day was in May, late May of May 2020. And then we also removed the budgeted hire that was split within the water and wastewater activity funds as well. So you'll see some significant changes in employment.
But to compensate for that, one employee and Jim will speak to this later and I think it was addressed in the last board meeting, there is an IGA for shared resources between Castle Pines North Metro District and Parker Water and Sanitation District. So that's the, there's some high level items and some items we addressed in the prior months.
I will come to you in the next couple months, for the necessity of a possible budget amendment, in the water fund, which is mere impact the present events related to Covid 19. The local, many local government investment pools and, saw dramatic drops in returns on their investments over the last 90 days, 120 days.
So, for example, the district does maintain, one moment let me get there, its funds in a few different, local government investment pools. The highest rated one is now returning 0.72%, but that same fund was returning 1.8%, 1.87% at the end of the year last this last calendar year. The district does have a lot of cash on hand.
So you will see those investments, returns drop a little bit. And so with that, I worked with Jim, and other other people to identify certain expenses that need to be moved to account for that. And we all agreed that we made those adjustments in this budget. So that's the high level item. And that will very well impact the budget amendment and the water fund, if not in the wastewater fund.
But we will continue to monitor those projections in the upcoming months and bring that forward to you as necessary. Overall, that your balance sheet is strong. There is approximately $47 million in restricted and unrestricted monies that the district has on hand. Many of these is as a result of development activity as well as the district works and continues to work on its water plan.
There are some restricted monies in those funds. And those are held in the appropriate accounts. But we are continuing to monitor the liquidity and, also, the necessary funds to fund working capital to maximize those investment earnings in this environment. There are numerous items in my memo, that we are continuing to update, and I will continue, continue to, monitor the Covid 19.
We are just wrapping up the district's audit, which I will present to you shortly after this presentation. The district has confirmed and made all its required debt service payments as of 6/1. And we are continuing to work on upcoming, 2021 budget. I know it just happened. It just seems like we entered 2020, but it is time to do our due diligence and work through with the departments on compiling the 2021 budget.
So, further information that come on that, and we'll bring that forward as, as necessary.
Are there any questions on the financial report?
David:
Sure. Eric, thank you for that. I do have just a couple questions. Initially an observation I, I'm, had the opportunity and thank you for providing us with the annual cumulative, revenue and gallons, water chart, requested from last month. This month, however, pleasantly not to slap a gift horse in the mouth, the difference between the two, meaning our manager's report and the accounting.
You guys, well, would be happy to know that that difference is about 4%, which everyone in the room knows is within the realm of acceptability as it relates to transport of water and the water loss during transport and evaporation. And, those unnamed folks that get exorbitant fees and percentages of our water, etc..
I was very happy to see that we're hovering around 3 to 4% as opposed to last year's numbers about this time, north of 11%. And while when doing that math, I thought to myself, I wonder if the difference was the golf course. Because Jim, I'm not certain, but this is, a question for you guys, are we are you telling the acre feet of use by the golf course net of or gross, including the effluent or no effluent whatsoever? Is this all freshwater?
Jim:
It's all effluent. All effluent? Yeah. The golf course we we the only time it's not effluent we have one well and I don't remember the number right off the top of my head but we have one well that will supplement. Yep. And that's not treated. So effluent yeah effluent that's pumped up through the pipes up there does most of the water in for the golf course. Again if Corey needs to kick on a little bit more he kicks on well number whatever and that goes directly to the golf course also.
David:
What's interesting about that, Eric, is that while we are billing them for that water and they're paying us it shows up in our revenue, it shows up in your report as being a water resource.
And, and and I guess then we're, we're talking apples and apples. There's, there's, in our projections on an annual basis, we're including the affluent water for our revenues. Correct? Correct. Okay. All right. I, I didn't know if I had figured it out.
Eric:
So, if I may add sir? So, this is billable usage. So this is billable usage that goes through the district's billing system. There are numerous uses that are not billed, if you will, between physical usage and billed usage. We have, one major item is the district's irrigation of its open space space tracks. And that revenue is an I mean, that, we recognize that revenue in the enterprise funds, but we recognize it as a significant expense in the open space general fund, open space funds.
That's one major item. Other item is as we draw, draw on those resources to fill up our system filling up our system could account for more water in the district's water tank. That would be one use. So not necessarily gallon in, gallon out, but and a shrinkage, as you mentioned. One significant item that changed over the last couple of years was the bulk water sales, hydro watersheds, sales.
As part of our rate resolution, we do bill that for all the earthmoving that was occurring in Lagae Ranch. And so that is not inclusive of this item right here. So, numerous items. And as a result of that request by you.
David:
It is or is not? It is not. Revenue or usage?
Eric:
Usage not in physical usage on this report, but revenue we do count it as revenue and bill those folks.
David:
Okay. All right. And it's significantly up. Well, we're going to continue to watch it. Right. Not to cut you off short. I, we're going to figure it out at some point, if we're within industry norms or not. It sounds like we're accounting for all of the ins and outs and the nuances, except for, we've never quantified, really, the use of and and, it'll come up in our open space, report and Q&A, the amount of water that we spend on the city owned medians, as well as the HOA owned or the non-HOA owned entryways. Significant amount of water.
And so, we're back to what I thought it might be and what we're working on. That was the observation. But quickly, besides that, the increase that you indicated on item B for professional services, I was not aware that we were making any adjustments there. We did during budget period, but nothing, on an interim basis. Eric, are you suggesting that somebody’s needing wanting asking?
Eric:
One, I am not aware of the commitments, and I don't delegate those resources. However, I was looking at on page 15, water rights associated with the water attorney. This, through May, and we probably did not even receive the May invoice. We had 150, 115- $114,000 expense, had a budget of $150,000 there. We grossed up because that trend is continuing even though we are approaching our water court date. Now, this is not a change in the budget. This is merely to project out, from your management perspective, we can certainly decrease that if you feel it's necessary.
David:
Which, line item or combination of line items, the ditch land and right expense?
Eric:
Second from the bottom you have.
David:
Well and that's the same thing. In all honesty, Jim, correct me if you feel otherwise the reason for that increase in it will only happen once this year best we know, had everything to do with the, a an agreement that we crafted, with Austin's help to ensure that our water rights were not diminished or the value of them were not diminished. When we crafted an agreement with an oil and gas company to provide them with an easement, we also would have seen a significant increase to revenue for that negotiation or that agreement. I think we've taken receipt of that money, have we not? We have. So there is an offset on that. I don't think we need an adjustment. Let's see how it works out.
Eric:
Understood. And I will review the invoices as well as a result of this conversation. Susan, person that processes our AP, and other employees of the district do code these, including, different matters under those folks, particularly the legal invoices. So I will make sure that gets charged to the appropriate account.
David:
Okay. Item 4C. Working with the manager and Austin, analysis of revenue district, much the same thing. I'm guessing yeah? Yes. Okay, good. And, item D then, updated the manager and Mr. Seter, regarding the foundation, what did you find out about that foundation?
Eric:
So, not too much more than what's available on the Secretary of State's website. The foundation was established in 1997 under three people. I I am not familiar with a Tom Anderson or Tom Weldon and a DJ Calling. Of those folks, there was a status of, inactive for a year or two, but then it was active at some point in the early 2000’s.
At that time, the district manager of Castle Pines North filed the annual compliance required. There's any business, any legal entity, within the state of Colorado has to file an annual report. However, you know, I am short and would not want to comment on who has right to those funds in the bank account of greater than $10,000.
For since pinnacle has been engaged with the district for quite some time, we have not seen any activity within that account. So I would have to defer on who is the legal board of directors for that entity. But beyond that, I do not know or cannot provide any further clarification.
David:
I'm certain that Jim and Council will work on clearing that matter up. I mean, as you all recall it, just a matter of our being notified, by address, that this was the home of the what was it? Castle Pines North Foundation. And not knowing anything about it, I thought we should. So, let's get in touch with one of those names, sounds familiar. Let's get in touch with them and see if we can't, satisfy any curiosity that the board may have.
Eric:
Most certainly follow up with that.
David:
Also item 4E, can can we strike the word outstanding? This is something that we worked on, in detail over the course of the last 30 days. While any outstanding balance with PERA is just a timing issue. Correct. And there is no significant, there's nothing 30 days or more that is outstanding. It's just a a desire on our part to use actuals then cut a check and it surpasses the cutoff date. Right?
Eric:
Correct. So there are, I believe, two items that you are asking about, one being the district is caught up on its payroll liabilities. We have there's many state, you know, IRS, regulations that require payroll liabilities remitted in a timely matter or else you, of course, penalize including rules that we have with PERA. What the district does recognize on its balance sheet, just like any other, you know, any other business, any other entity that's the part of a defined benefit plan, is there proportion, unit, proportion, obligation related to that.
And, Jim, Mr. Seter and I have been working on that, but, and I can't believe he, he, he will, comment on that further. But, whether that true obligation is due immediately or if there is other fees that are assessed in lieu of that in the district, or in the employees cease to become members of PERA in that circumstance. So there's two different things, but we're we're will we will address those.
David:
Understood. But again, this has specific, this has a specific reference to the liabilities, on our balance sheet and that one, the latter has not shown up yet. Correct. Because we none of us know who's on third. Great news is we're getting close to third.
Yes. And, so thank you with that, if, if, if we can restate that. Of course. In the next report. Of course. To make sure there's no misunderstanding. And then lastly, item F, that age receivable, I'm guessing based on your explanation there, that there may have been a chance here looking at my notes from last month that I mis-categorized credit, for debits and and, but I don't think so.
But without getting into specifics, I just want to make sure for the record, that the aging receivable policy that the district has that, is, given to you to shoulder is in upstanding shape. There's no comments, concerns, questions about, their, those receivables and where you would report them specifically.
Eric:
Correct. Correct. There's no, no issue with these. We are monitoring this. This time last year we had approximately, I can't recall its about 810, $810,000 this time last year. And, now we have $948,000 in enterprise receivables. These are customer balances that go through the district's utility billing system. We haven't, one an increase in accounts, two the report on page 26 is by charge type.
And what the district's billing manager CRS does, in accordance with fee billing resolution and collection policy, as has been done for years, is bill and apply charges. And so what you have is many people, especially if you look at the 100 accounts that are in greater than 240 days on this report. Open accounts could be a positive or negative, about, balances.
And those charges if one person pays for the entire year that is just allocated, and reapplied monthly. And so if there's nothing to apply to it, of course it just hangs out there as a credit balance.
David:
Understood. But 100 clients or customers that finds themselves 240 days behind, using your example would culminate in what kind of action by this board?
Eric:
100 accounts. This would be 100. It could be a couple cents on account, it could be the way that the billing is applied. But I will certainly follow up with that and make sure, with the district's billing manager, that is, and, taken care of, so that those charges, even though cumulatively are cumulatively, are fine we, closed down on that, as well.
The one comment I will make is the utility, under state statute, does charge rates and fees that are perpetually against the property. So there is essentially no bad debts allowance that the district carries. So if the district does not, we would always collect. However, if we can't collect, they'll hang out as long as we can, and we'll account for that in our revenue. Fair enough. But I will follow up with that.
David:
You can appreciate that. Sure. You can appreciate that while the number of ratepayers may not be significant to some, they certainly add up very quickly when you're not anticipating them, the most and, and the dollars that we're talking about, just short of $1 million at times, is important. But thank you again for that reassurance.
I know that you're working with, as you mentioned, with Mr. Worley and, Mr. Seter on the local government and, and, PPE and security and crowd control and temporary the all the Covid expenses. And Jim, got your email today on, on how up to date you truly are on that. And I, I'm hoping that if there's a deadline in filing that that not only we make it, but, if we can advance or prepay any of that to, qualify.
And if that's something we can consider. Yes. I would implore you to get with Jim on that and make sure it's okay with with Mr. Seter as well. Lastly, the schedule that you had for our upcoming budget of last year looked as pretty as a Christmas tree. I was hoping that to make sure everybody plans their summer vacations accordingly, as well as their fall time hunting schedules. Yeah. We we get a new calendar sooner than later.
Eric:
Yes, sir. I will, get that out, and, I will send it to you and, and the rest of the board before the next packet so that you have it. We are is just coordinating there's numerous items. One on one is, and there was, I believe, an executive order that delayed the assessor's office from releasing preliminary assessed valuations.
It was used to be in August, and now it is, just before, around October 10th or thereabouts, just before we are required as management to submit to you a draft budget by the October 15th deadline. So there will be a is that's just one of the items we're looking at, but we will update our calendar and get that to you.
David:
I suspect that the unknown is difficult enough to deal with to add into these delays or opportunities to recapture the ground that we lost. As it creeps into the holidays it's just going to create chaos. So the sooner you can get something out to give to my colleagues and I and staff, the better. Yes, sir. Thank you. Anybody else on that director's report? Hearing none. Item eight. You want to review the draft 2019 financial audit? Eric please?
Eric:
Yes, sir. So, this document right here, which is the Castle Pines North, Metro District 2019 draft audit. The engagement, the firm that completed this was the firm, Rubin Brown, which is a third year. As you may recall, last year, they stood up and gave you a quick presentation.
I spoke with Jim and I said, don't worry about coming all things considered. And so you have me for another, several minutes. So this is a 60 page document that was compiled between March and June of this year and final tweaks over the next couple of weeks as a result of final meetings and discussions, including this meeting. Numerous work by Jim and his employees, other consultants in review.
So one of the main reasons is why do we have an audit? Well, a couple different reasons. One, we're required under state statute simply. We submit this annually by the end of July, to the office of the state auditor that it's available for public record. We also put it on the district's website once it is final.
Two, we have debt covenants that require us to have an audit to, to post to, out to the marketplace so that they know about us, and what we do and what our operations and our financial, well-being. Two and thirdly, of course, kind of what I mentioned first is just for transparency reasons. The work that was done was, culminated on pages three through five.
And this is the audit opinion, what you would what you should know of this is this is an unmodified opinion. As in prior years this is the, this is the best opinion you can get. This is from an independent, certified public accountant. They have reviewed all transactions, numerous line items, sampled, tested, conducted inquiries and to present these financial statements in front of you.
What a couple of different comments I would broadly make is, number, the statement of net position that you have, which is, page four of the audit, this is the first kind of financial statement you have. This is the long term health of the organization, Castle Pines North Metro District. What you see is the total position down at the bottom.
You see a pos you know, it is a positive $136 million, last year was $123 million. What that means is we are in great financial shape. So I will, that is one general comment I will make on this. Your fund's financial statements, which are on pages six, this is the general fund and the special revenue fund associated with the COP’s.
This is your short term outlook. This is what we look at for, you know, basically, your current if you think about current things that happen within the next year, can we fund working capital? Once again, we are in great financial shape. Another item to look at is on page 13. This is your cash flows related to the district's enterprise funds.
One huge contributing factor year over year was a significant increase in cash as a result of impact fees associated with the development as I was reporting, many prior financial reports last year, just in the enterprise funds. And these are in the district's utilities, the water, wastewater and storm drainage funds. You're in 2018 excuse me we had $23.4 million, year in 2019 and $35.4 million. As a result of that you can see many of these are a result of what is classified under GAAP as operating activities. And then a few other items associated with the financing, investment activities. So this is a very good system, a very good, excuse me, metric to look at. So our net position increased as a result of investments that the district made into the future.
So that was one significant item to report. On pages 14 through 42 what you have, the difference here is you have the financial statement notes. These are also required to report in the, the auditor does required to present an opinion on the financial statement notes. The notes provide a story to the district. This provides the history.
This is these are things that can be provided that are not within the numbers. A lot of these are associated with, you know, kind of risk that the district may have or may not have, may need to be considered of. Required footnotes on its capital assets, its cash, its investment and credit risk. And so, the auditor has reviewed those and made those that opinion on the district's financial statement notes as well.
Additionally, towards the back of the audit, we have what's called the RSI section. This is the required supplementary information. This is what is required to submit under state statute or under GAAP as well. Another item they require just kind of points out a specific question. Mainly what it does, it confirms that the district did maintain and spend within its appropriations that was set by its governance, which is you all and the district did.
And that is, that is a great thing to report. If the district did not, you would be out of the district would be out of compliance, and the auditor would have to make that note within the audit report. On page 50 and I'll go quick there are, required section of continuing disclosures that the district does have to submit to, and attest to. These are unaudited there are required to be submitted within 270 days, after the end of the calendar year. A lot of this is what is, and this is what's required in the 2015 COP’s that were issued and find informative, for the holders of those certificates.
And then finally there was another report, which is the report to governance. Which is it does look like a PowerPoint, but it is, it is the narrative prepared by the audit firm of conversations they had, things they, to consider from your perspective. Once this is finalized, will also include a representation letter signed by myself and District Manager Worley, as well as a legal representation letter that we gave all the appropriate facts to the auditor so that they could render an opinion. And in this case, so, of course, was unmodified.
That is the extent of my comments. But I would welcome any chance to sit down in person to dive into just a little bit in detail. It is a quite a complex document, but it is a good product and a good product to present to you this evening.
David:
Thank you Eric, congratulations to your firm. It was also mentioned in there that you were GAAP compliant. So as many kudos are going around the room, all of which are deserved given this organization, Jim, the way that you are operating it, Kim, you are ensuring that we remain lawful, Eric, direct our finances and my colleagues, participate, and make the hard decisions.
Nice job. It is a heck of a a good report. And we look forward to the finals. Anyone having any comments, questions or concerns again, even beyond this evening make sure you direct those to any of the three, but start with Eric before we get to a final draft, please.
Chris:
I do want to reiterate that I, I went through the document and I thought it was very well, positive. And so thank you to you and your staff for essentially executing very well on this and keeping us out of trouble, too. So that's really good.
Jim:
It's the reason I exist to keep you guys out of trouble. Well, not completely sorry.
David:
Thought it was about me.
Robert:
Some are more trouble than others.
David:
I just require more oversight don't I? That's Eric behind me in the boat, and he's paddling like the dickens to catch up, so. All right. Thank you very much again for the report. Eric. The review of the draft audit. Item number nine i'm going to jump in and read for the record, and, upon doing so, ask for a motion to, approve the report, the draft review of the audit, the ratification of the expenses, given to us tonight from the finance director, and then we'll have any additional come or, discussion at that point.
Item number nine is, where this board is asked to consider approving and or ratifying the May 2020 payables. Again, you'll notice that there aren't any approvals, that is, to reflect what Eric was sharing with us. This was an accelerated timeline and, and, so those numbers will be forthcoming. But in the meantime, the ones that we do have to work from and that we can act on are those that we’ll ratify tonight. From the general fund or reflecting check numbers 25238 and through 25259, from the general fund and the debt service, $121,230.34 from the Enterprise Fund, $23,855.92, and all electronic payments of all funds, $523,604.35. Asking for your ratification on a total of $668,000, or 68, $668,690.61, please. Is there a motion?
Robert:
Like to make a motion to consider and or ratifying the May 2020 payables and additionally, the draft review of the audit.
David:
Second?
Chuck:
I second it.
Board Voting All Speak:
We've got a motion to approve item seven, eight and nine. Of the from the finance director and his reporting. A second from Director Lowen. Any additional comments, questions, concerns from the board? Hearing none. When called upon, if you'll indicate your approval or disapproval with the yay or nay. Director Lowen. Approved. Director Lewis. Approve. Director Crew. Yay! Approved. Director Merritt. Approve. And Director McEntire also approves motion to approve those items seven, eight, and nine are unanimous.
David:
Item number ten is what we just handled. Excuse me. Item 11 is the Open Space Manager's report. I see that Craig is not here with us this evening. I assume then, Jim, you are in a position to accept the Q&A. We've got his report. We had plenty of time to review it. Colleagues, are there any comments, questions or concerns about the Open Space Manager's report that is before you?
Robert:
Just who takes care of the, said in here someplace, I read earlier about the removal, and they're marking the trees, the big dead trees. Do we do that in-house, or can you explain that a little bit? Because there are numerous out there, and there is probably a liability that goes along with that. And just one little further clarification on how that goes.
Jim:
We identify the trees. Actually, Craig goes out and looks at them and you'll see there's pink ribbons that are put around trees that are going to die. I, I hope that everybody understands from last fall through this spring, there were two significant events that really damaged a lot of trees all over this area, and not just here in Castle Pines.
And so you'll see more than normal, I believe, of dead trees, half dead. And so he's going through now and tagging those. One of the photos he put in here was the location right down here, just this side of Shoreham, where we've we've planted some more trees. And so we're trying to get those replaced but there are a lot this time. But we go out and tag them and then Craig contacts the company to get rid of them for us.
Robert:
Okay. We used that company before? I didn't see okay.
Jim:
Oh yeah. Yeah. That's. Yes. He's he's used companies very similar for a number of years that do a very good job. You bet. We, we trim some of our trees. We in-house staff we'll go trim some. They were here working at our, our office just the other day. So we'll take care of those that we can, but those that need to be removed and hauled away we hire someone to do that. But there's a lot this year.
Robert:
Yeah just wanted to clarify that, because some of them are next to the road and if they fall the wrong way and there's liability there. Absolutely. It's another company does it. I'm sure they're bonded and he is taking care of that. Absolutely. Okay. You bet.
Chuck:
Jim, I find that the work that the fiber optics crews are doing along Monarch and along Castle Pines Parkway is just abysmal. They are very, very bad and I think they need to be held accountable. Their work product is terrible, their finished product is terrible, where they've finished. They've killed a lot of sod, broken a lot of sprinkler heads and lines and they're not done yet. I know the city issued them a building permit to do their permit to do that. Who can we hold accountable? Because, this has been going on almost 60 days now.
Jim:
We're holding the city accountable for that. I had a conversation with Larry Nimmo probably six months ago, especially related to the coroner up here at Castle Pines and Monarch. I said, that is terrible looking over there. And you see, there's been some work done. It's kind of flattened out, but there's still work to do. Larry assured me that they are holding retainers on all of these contractors until we have the ability to go through and say, this looks good or this doesn't look good, and that's what we're doing right now.
Chuck:
So you're going to watch that?
Jim:
Yes, sir. We are. And our guys pay a lot of attention to it because now brown spots show up when you see a sprinkler has not working. And so but the city assured me that they will work with us to make sure we get all of that taken care of before they release any retainers to us.
Chuck:
They're the ones that repaired the sod along Castle Pines Parkway, along Castle Pines Parkway at the coffee shop that, I got calls on that the water was running over the curb and gutter for 24 hours. And everybody was pointing fingers, and it wasn't mine, but that sod died anyway. It did. No. And they've damaged controllers and irrigation lines on my property, and they still have the orange line sticking out of the ground.
And we've taken pictures and we've started to repair it, but it isn't going to be cheap. And that Larry said, give him the invoice. Well, I hope that he's a man of his word.
Jim:
So far, he is. Thank you. One other quick thing on the trees, and I get calls or emails from from people and residents who say there's been a dead tree over in this location for 100 years.
When are you going to do something about it? And so what I do with those initially is I go to Craig, say, Craig, is this our area where is? Let's make sure we're on the same page. And, and a fair amount of them are not our areas. And so we professionally and respectfully reply back or call them whatever the case may be and say you'll need to talk with your management company or whatever it is. Probably the lion's share wrong. Along the major streets are ours, but there are some that are not ours, so we just make sure the right entity deals with those.
David:
Jim, if Craig were here, I'd ask him to get out a tablet, a paper, and take some quick notes. So I guess what I'm saying is, is I want to share some of the thoughts that have culminated or accumulated over the last 30 days and, and, leave it to you as to whether or not you want to convey those to Craig for a more detailed report next week or next month.
Because I think one is due, whether we have a interim meeting with Craig or not, leave that to you. But but you know, as Director Lowen points out, Director Merritt points out, as you point out, it's my opinion that the district does a darn good job of stewarding its property ten months out of 12 to make my point. During high season, we are being currently we're being inundated.
And as you pointed out from emails and, and, requests through our website, a lot of good, good communication come in our direction. But as you pointed out, 60% of them are not, have to do with anything that the district is responsible for. But there's a lot of misinformation out there. Upward in including today, conversations with folks inquiring as to when the roads are going to be fixed, when the potholes are going to be done.
Why are you replacing curbs and gutters, when we've got other more important things to do? Kudos over the fence. Great job city of Las Vegas or Las Vegas. City city of Castle Pines. You know, the point is this is not about us being the good guys or anybody being the bad guys. We've got a system problem or a systemic problem that needs to be addressed.
And I would submit that as far back as the agreement that we uncovered, the two of us when this work was going on in the medians and when that stone structure out there was hit and remained unaddressed for many days, many weeks, maybe months and some lighting issues. Come to find out that there was an agreement way back when between the district and the city where, the district would take care of the landscaping and, in those areas, but would be notified by the city if and when anything was going to occur in those areas so that we could be prepared to address them.
Okay. I mentioned last time that I don't think that that has happened. Jim, you've concurred that that did not happen. Hence we have light poles that are up there in duplicate and still don't know anything about it, nor were we part and party to any conversation about all the irrigation, equipment that was potentially damaged, the plants that were damaged.
And all of this is coming from a budget that we didn't contemplate. I submit that while we need to relook at that agreement and maybe, improve that agreement with the city, moreover, the communication with the city and an understanding that if we are going to continue to provide maintenance, Who, what, why, how and where? Are we going to and for how much?
And if we're going to continue to provide that water. Who, what, why, how and where and for how much? And if we're going to continue to, repair after the contractors. How much? Now, I've noticed that when the city approved their half a million contract with the roads contractor last month, that in that budget, there is a $20,000 line item for landscaping.
I'm sure they didn't tell you that. I'm sure that you didn't know that but it's in there. And all I'm suggesting is it'd be really easy for those of us that are responsible for those areas to just go ahead and take receipt of those monies immediately. So that we can make sure that the and sundry of emails that we have, whether it's for dead trees over too long a period of time or the the damage associated with fiber optics for way too long, etc., is something that we can respond to, but we're stuck being in a position where we should be the first to know, and yet we're the last and oh, by the way, we've got to make up for, the shortfall in our budget. And I submit, it's coming out of our trees. Because that is, is a major, major focus on this district for the residents is to keep this canopy alive and, well, for more than the property value, quality of life and security reasons.
So, anyway, we need we need to dig a little bit deeper in regard to the agreements that we have currently with the city, and we need to improve upon those and would like to begin that process immediately. The dead trees I won't say it again, even though we were told by Craig that because of the amount and those two significant events, I mean, they're all over the place.
But that it would take him four additional weeks to get it all done. That was his report a month ago, and we still have a dozen of them down there on the on the intersection. We've got one outside here. I need not continue, but I know we're trying it maybe we bring more people on, but if we had the budget for it, we could get it done the same day.
But we don't have the budget and so we're trying to, to, to fix all these problems that we didn't budget for because we didn't know anything about it, and we don't have provisions for it. So I know that you would agree with me in that regard. Looking for an update from him on our on the, grading that was supposed to take place this year on our bio swales behind the gutters.
And, and, the update on the Equitable Entry Project instead of, PPPPPPPPP PPE. I call it the EEP. Yeah, whatever that was. The equitable entry project. And that, of course, is the one where currently the district is paying for almost half of the entries of our communities. The maintenance, all the repairs, all the replacements, all the water.
And yet the other half are paying for their own. And while we have done significant work over the last 18 months in that regard, we know a lot about the dynamics of moving forward on that. Council's up to speed I believe we just need to really address that over the course of the next 30 days so that our report next month, please, from Craig, addresses these major items that were being inundated with, via email and contact, please.
Chuck:
David, not to belabor the point, but it would, I was pleased months ago when we when it appeared we had a much stronger relationship with the City of Castle Pines. I feel that of late we've we, Jim and and his crew have been working, in a vacuum, and we're not always certain when the city is going to tear up some of our property. We're not notified, we're not, told how long it's going to take or what it's for. I think that we probably should consider a meeting with the city and discuss some of our concerns so that we're not sitting here negotiating with ourselves. I think they're truly a partner, and we ought to treat them as such.
But we also ought to let them know that as of today, we're not happy with certain things that they've done. And I'd be happy to be in that meeting. Jim and anybody else would like to attend, but, if it isn't said it didn't hurt. So I think we should plan on something like that.
David:
Very well said Director Lowen. I will echo what Jim has already reported to you, and that is an ongoing relationship and conversation he has had with the Public Works Director. Is that Larry Nemo's title public works director? Yes. And and so, I think the line of communication is good. I just, I'm fearful, if I could put it this way, that the that the communication isn't good enough and that the right questions and the answers aren't forthcoming, as timely as we would like to make a difference had we had them.
Chuck:
But, with all due respect to, to Larry, he's, he's new, relatively new. I've had long conversations with him about our property. And he pretty much tells me the same thing he tells you, Jim, that he's holding their feet to the fire. I'm not sure what that means, because I see no action, I see no corrective measures. And I'm not blaming Larry Larry by any stretch of the imagination, but I think others in the city should be aware of it, that I don't think we're happy about it.
David:
Again, confirm your your sentiment and, and, as we unearth, as we have unearthed, via our due diligence, the documents reflecting our relationship, or at least those that are in writing, we're finding a number of things to talk about.
So if we have that meeting inside of this month, after which we've we've circled the wagons internally and made sure we've addressed all of the concerns that will come up as a part of our general fund review and, and, Craig's performance, report this for this summer. If we can get it inside of this month, that'd be great. Okay. The last thing on that report, Jim, you would have been in receipt of a of a letter from a coach. This was a coach that reserved Coyote Park field, and wrote a lengthy letter. And all of the things that this gentleman talked about, given his observations over the, the last 30, 60 days and his desire to follow the rules.
But upon doing so, can he just have the field? Couldn't agree with him more. However, the one point that he brought up that I think will you'll recall when we had conversation with the Douglas County Sheriff's Department was, you can call us any time, but unless we have the, scope guidelines, the the inclusive, hurdles in place in order to do something about it were ineffective, and there's nothing that we can do.
So I'm wondering if we take that correspondence and we reduce that to, potentially consider, signing our fields or anything that we have a reservation system with and, or for so that Douglas County can enforce our policies and procedures. Thoughts?
Jim:
First of all, that person you're talking about is a female. It's her name is Lane. And I know. You did, but that's okay. I'm sure she's heard that before, but she, she wrote a very nice email, to be honest with you. She praised Susan and the work that she does and getting it all done. The issue, and I have to admit, it's very frustrating. The issue is when someone goes out there like she did, had the permit in her hand.
We're taken care of, you know, she she paid for it. She goes out there and there's a couple of groups of of others out there, and they told her basically to go pound sand. That they weren't going to do anything, they were going to hang there as long as they want to. That's a real tough thing to handle, be honest with you.
And as you might have recalled in her email she said they did call the sheriff's department, they did show up. One thing that was incorrect is that they said there wasn't a sign there. Well, Craig took a picture of the sign this afternoon it's there. There's a sign that says permit and what have you and so. It was as you drive into it, it's in the parking lot.
Yeah. Where you and I were Thursday morning. It's right next to where you parked your vehicle. And so we have that. And so while she was frustrated, I think she realized that it's a challenge and it really is and we've seen that before. There was a group this morning at 7:00 this morning that was down at the basketball courts.
And actually Craig went down there. He usually gets there about seven, and he went down there and says, you can't have 40 people hanging around here you know, we're still under that order. And so while it's it's been frustrating to be able to get outdoors and do things, and now those that are getting outdoors, some of them are not, as we learned in kindergarten, play well with others. And so she she was right on point with that email. And, and, we're doing the best we can to try to make that right. You bet.
David:
If we've got signage, given the the relationship that we have with Douglas County and their performance, all's we need to do is make sure that Craig sends an email copying us, as we have done before, to make sure they know where the location of those signs are. A copy of that, and that'll sure help. I hate for our staff to be a party to any of the crowd control, and and, and Douglas County does a bang up job when they have the tools.
Jim:
They do and just so you know, I'm uncomfortable in staff going out there and confronting people. Yeah. We're not trained for that and we sure don't want anything to happen. Craig was chewed out with some bad four letter words a couple of months ago when he went out there and found some people doing some things at the height of all of this. And he was pretty much well put in his place and so I hesitate doing that. The sheriff's department does have they will respond. It's not quick.
It's not like a 911. And so we just have to continue to work through that. And I hope people, who are supposed to be adults in these situations act like adults and, and honor the fact that some people do reserve a spot. So we're keeping an eye on that.
David:
I apologize to Laney L A N E under the email address play, what was it, Castle Pines? Yeah, Play Castle Pines Athletic, and I won't finish it, but, I'm sorry, ma'am. For the record. I'm sure. I could have sworn it was a gentleman.
Jim:
Yeah she's a very nice lady. She does a very good job. You bet.
David:
I apologize. All right. If there's no more, no more comments, concerns, questions of our Open Space manager report for this month and next month forthcoming, we'll move on to item 12. Council.
Kim:
You have the legal status report. There aren't very many changes, if any at all, from last month. You'll have a couple new items next month. As of this morning, we have finally pinned down the process for determining whether there's any liability to PERA.
It looks like that's going to be a 2 or 3 month process. What I'll do is put that into the status report. How that process works, as well as the documents you'll have to address. And then the big question is going to be when do we pull the trigger on that? You know, you there's several options you might want to withdraw beginning of the year. At the time we get something worked out with USD, perhaps later. We'll, we'll just have to talk through that one. But we'll have recommendations for that and that'll be in the next month's report.
David:
Council, I'm going to I'm just going to give you a heads up. We Jim's, report is next and, Jim, you did not have in there, not that you needed it, to to speak to it, but, you did not have an update I don't recall on the Lagae lift station, but we have a, it is in your report, and we have a a, come to come to Jesus meeting tomorrow morning, 9 a.m., I believe.
And, so just a heads up, what what we have found, if I may, Jim, what we have found in I think that we don't differ not not even a little bit nor do our consultants. That the obligation, in short, is that of the developer. And there's a replacement that needs to take place in a yesterday way.
And, and, and while they sent us, everyone participating in the due diligence in the calls up through last week presented all their documentation and it it appears, from my perspective, to be a blatant, warranty issue on the on the builder developer's part. And while dragging their feet, what we said and this is the point of all of this, what we shared with them is, is that if that's how it truly comes out tomorrow morning, that if we don't get satisfaction quickly that we were going to, begin to hold issuing additional taps. Think about it. Counsel us now. But but, we really were prepared to apply the teeth fyi.
Kim:
Okay. Yep. Let me know how that comes in. It would be fun to be a fly on the wall.
Jim:
Yeah. You're welcome to come sit in my office and be more than a fly on the wall if you want to you know. That's at 10:00 tomorrow.
David:
Ten? Okay. Yeah. Thank you Jim. Thanks, Kim, for the report. Item number 13 on our agenda is a district manager's report. Jim, you have the floor.
Jim:
Thank you. I'll just point out a couple of things. Number one, most importantly is that the air conditioning will be fixed next month. So it's really strange. I'm finding out a lot about this building. This this area is warm in there you can hang meat. It's cold enough in that area, but they're separate. I understand we have an issue with our air conditioning in this segment of the building. So we'll have it better for you next. That's okay, I know, I actually I tried to make the meeting shorter because it's, you know, kind of hot.
So you get out, but that's okay. So we'll have that fixed. The only thing I want to point out on my report is, is to continue to talk about Chatfield. We are now storing water. At the last month's report, I told you that we we got the authority to store water. And as you saw in my report, as of June 11th, when I wrote this, this memo, we've already stored 21.79 acre feet of water in our 1006 acre feet.
So drop in the bucket, as they say in the business. But that is absolutely great and and, you know, we basically have two water rights that we put in there. We have the hot caulking water, which comes right down the South Platte, a great water right. And then our effluent that that is not used on the Ridge Golf Course continues to travel down Plum Creek, and we're able to store that.
And so it's been a very fun thing to work with. And just want to let you know that we're putting water in there. I'll keep you up to date every month on how much we put in there, but, that's a very positive thing. Back to the fence real quick. You have in your in your packet for proposal, and I want to thank all four of those entities that that took the time to meet with me.
And actually, Mr. McEntire joined me on one of them out there. They all responded pretty well. I only had one that said, I can get to scraping and painting last week. All the rest they'd have been about 2 or 3 weeks. And and this one said, no, we're ready we're going to get out there and take care of it.
And they did an excellent job on it. They use power tools basically to help knock some of that stuff off of the off of the old fence. But I walked it this afternoon, as I mentioned a little while ago, it looks very good and very proud of what they did. And this company jumped right up and took care of it for us. So I don't have any other items at this point unless you have questions for me.
David:
It was 326,000 gallons per acre foot. Next time, put it in gallons it's a whole lot more impressive and that's a lot of water regardless. I could not be happier that year round that effluent water is going to be stored there. And as well as the hot caulking water, that we don't use. It's what a what a great job and what a great asset for the district. It is. Do you mind if I give our residents an update on on, Parker?
Jim:
Oh. No problem at all. Go ahead.
David:
This is from the correspondence that we had from from from Steve on the completion of the assessment. Our asset review. Right. And, just for everyone's information, we got a little bit more definitive of a report. And he says that, that the assessed assets, forms and cost estimates, report by the experts will be finalized by June 26th. That there'll be an internal draft report that will be finalized July 3rd. Quality control and revised report will be finalized July 10. And a submittal to the Parker Water and Sand District from this group early the week of June 13th.
So, again, this is just a quick update that the condition assessment, at least the physical part has been completed and that we have a schedule for the reports forthcoming, which puts us, let's call it 85, almost 90% complete with our mutual study. And so that was fantastic news.
Thanks for allowing me to share that with everyone. Also, the I just want to make sure that council, Jim, you and the board are on the same page with regard to any and all future will serve commitments. Gemini and council have and our consultants Kennedy Jenks have been involved in this series of a variety of meetings having to do with folks that want service in district, out of district, folks that have been given will serve letters already.
But when I want to rezone and and while our will serve letter is very comprehensive in nature. I think that while we could reorganize that a little bit, given the request of the new development down south to require a report before anything like that would happen. Jim, the point is, is that, I would like to get out that form letter as you have sent around and add to it a signature from, a board representative from council and from Kennedy Jencks.
CYA Jim, simply because, folks, we are just about, no one's surprise. We've just about filled every acre of land that we have within the city. We went through an exhaustive, and lengthy study to garner how many taps remain in the city. As a part of our great and fee analysis our budget last year. And albeit it's an easy compilation to subtract what we've used this year from it, if we don't make sure that we don't let something slip through or something more a demand for more than what we truly have, we could be in real trouble.
I think everything that everything that we are contemplating as a matter of business through this very moment and beyond, the September 26th will serve letters that were issued by you as long as everything moving forward had those folks reviewing each other's work and signing off before we give it to a customer. I, I think that we would be better served all of us keeping our individual fannies off the line should that happen.
We've maxed out on our sewer, we've maxed out on our sewer capacity, our treatment capacity. We've maxed out on our water. We've maxed out on our renewable water. No surprises. We just don't want any. No deficits that we didn't already know of, if any comma, if any, no surpluses that we didn't already know of, which we do have some. We just don't want things to change out of an abundance of, of, exuberance to serve folks that typically would come before the city and ask for zoning adjustments without contemplating any zoning from the district, because that's not happening. And and any additional will serves, whether it's in district or throughout a district. You good, good council? Yes. Fantastic.
Chuck:
Mr. President. Yes sir. Help me understand who have we recently given will serve letters to.
Are we talking. Yes. Commercial, mulit-family, residential?
David:
Yes. We have the ones that I have just copies of which were issued on September 26th to, Ventana Capital. Who are involved, as you know, in both all of the above plus multifamily. And we've got two of them, over the, spread of, of two different parcels.
There's also been an amendment that went through city council without any communication best I know. Amending, an amendment to the Legae Ranch plan development approved some additional single family attached homes. Okay. That would have been dated well, I pulled it off the it was a November 12th city council meeting, and we were part of our process is that I believe that some of these things are getting through the cracks because they're not having based on our will serve, they're not having to come back and get additional commitment for additional density.
And that's what I want to stop is is it we're just be aware of so that we can capture all the numbers so that we don't overcommit, underutilize and over forecast anything and, make sure that we're doing it lawfully, council. Does that answer? It was and that could have been more but that was the latest one.
Chuck:
How are you determining where future will services will come? And you say, we've almost been built out. There's quite a bit of vacant land.
David:
Upon application and we currently have one applicant, out of district. We have a commitment to, to, to serve sewer on one out of district. That was a commitment in the Lagae development agreement, including the First Amendment to that agreement.
I don't know that other than the ones that, again, were given prior to September 26th, which culminated in upwards to 812 additional taps. The things that I've written or that I've mentioned here, those will serves on the 26th of September in addition to this November 12th lineation of of a density increase from the city, we would have no, we wouldn't know anything about, because we don't we're currently correct me if I'm wrong.
We're currently not getting from any applicant that is received an initial will serve required to obtain an additional one if they're going to get additional density. So as a part of this four way team effort we want to look at that will serve letter. Jim will get it out to everybody tomorrow. Kennedy Jenks has been teed up to know it's coming.
They're going to write the one for the sewer commitment that we've already made. And then, Kim can take a look at it, put it in proper order, put our signatures on it, make sure we don't get ourselves in trouble.
Chuck:
Thank you.
David:
All right. Thank you for that. Thank you for your indulgence. Thank you Jim, nice job. Before we get into or I'm going to close the district manager's report unless there's any other of my colleagues that want to be heard on that matter. Seeing and hearing none close item number 13. And as a part of opening up, the public comment, we've had a, we've had a late attendee, that wants to be heard, but, I thought I'd just jump ahead and, and, acknowledge Comega One, Mr. Ken Smith, he is our communications director. And he has been as a byproduct of all of these resolutions and, and, the business that we have, been conducting over the course of the last 30 days that have taken us two hours to characterize, in summary, has been has been busting his tail this last month.
And I just want to give a shout out to, Ken Smith, Comega one communications director for the district. Nice job buddy. Nice job. Thanks for keeping yourself available. Thanks for communicating with the residents immediately if not yesterday. We we all appreciate you and your efforts and we just want to say thank you. All right. We have a, we have a late attendee.
His name is Robert, Robert Merritt. Do I have that right? And I mean, just join us, get, you know, warm and comfortable, but stay away.
Robert:
Number 14. Yeah. Go ahead. Are we there? Yeah we're there, please. Not to belabor it, but I think that we've established, since number 11 that there just needs to be more communication, I guess. And, at this time, I'd like to professionally and respectfully just extend our efforts that we can do, to the city at this time. There's been several things brought up, but I've been approached by more than several residents asking, information and details I just don't personally have. So I'm going to put it out to everyone here that they might have a lot more information than I have about the new $4.5 million city building.
And, I would just implore, more information, be distributed on that because I don't have any answers. And people look to us as people in the know, and, I think there needs to be, just more information out there, anything we can do to facilitate that information. But I know if we had our customary public here, that would be a question, because I've heard it just from about everybody I've talked to, from King Soopers, up until my driveway.
So if we could please have some more information out there for everybody and people watching online, hopefully be distributed to you because I'm sure, as a resident, we would have that question among us, this evening. So, and I like to open it up to anybody that has any more information that could allude and not misrepresent anything. If they have any information that could be announced here. Does anybody know anything?
Chuck:
Your, your your question and your comments are timely. I've requested a meeting today with the city planner, and the city manager to find out what they are doing. What's their square footage? Thank you. How many buildings are they going to have? When are they going to break ground? What are the estimated costs? Are is there going to be more retail? Is there going to be more just commercial office? It all affects what I do. And my owners are asking that question. But I also had several constituents call me because they saw it on, I think, next door door or something. And they're saying, how could the city build a new building when we've got $50 million worth of streets that are torn up?
I don't know if that's a fair comparison. I don't know if the city is going to come back and raise mill levies, in November, I don't know, but that's all the things I need to find out about from my own owners and I will certainly share that with you or Jim or David once I get information.
Robert:
I believe the property was donated. I don't want to speak out of turn. And but it was the maintenance and ongoing costs which we know as we're sweating here with our air condition, lack of air conditioning, that how those funds will be addressed, as well. So maybe they can put out something. And again, professionally and respectfully. Just laying it up so we can have some more communication and appreciate them as much as usual. And, I wish someone was here we had more discussion on it. Thank you.
David:
I'm sure that Covid has as much to do with our liaison as, as she put it not too many meetings ago, Miss Mulvey. Or she would be here and and so giving her a break in that regard, she's always been transparent and honest.
Given any line of questioning that, that we've had, we're just without that tool in our toolbox for today and as relevant as it's been for you, it has been for myself. Number of comments, questions, concerns. My understanding, to include some some not just costs forthcoming, but the costs, the current costs, that have been identified for, what has been characterized as a green light on the design of this structure and maybe construction drawings. But what we'll do is we'll, if, if Deborah's not able to join us, and or we can't get something in between meetings.
We'll reach out to them and, and, get something in writing or something, presented so that, if we don't catch up with them on some other business at the same time, we have something to do, a little bit more information that we don't have right now. Thank you. Robert, you exceeded your three minutes, but, I'm sorry watch it next time. One last thing, I just want to warn everyone, in a good way, that, come Thursday the 18th, the district who has endeavored to put into place since the previous district manager's report of August 9th, 2018, where, in the, last regular meeting at that point reported that we were in rather a severe hot condition and that water usage had increased significantly.
And he indicated that if the conditions continued, that CPMND would have to decrease the water flow that it uses for irrigation to the common areas and parks within the district. He also warned us that there would probably be a public outcry because of the browning that would occur in these areas. Again, remember, we were sworn in on, at the end of May.
This was the beginning of August, or late July that this statement was made. During this meeting, he did not indicate that there was a plan in place to mitigate this situation. When pressed on the issue, he said, that's because there has not been a plan. We are going to introduce the first of, a few steps, less than a handful of steps, that address the drought situation that is common to our area.
On Thursday morning, we are going to install two graphic pieces of of yard art, if I may, that will inform residents coming and going from the city on the, on Monarch Road where Monarch meets Quebec or entryway off of Quebec. We are going to install an information piece for the drivers leaving the city and for those coming back to the city.
Now, you've all seen the artwork. We've taken receipt of it, and, yes, it will be anchored, by our good friend Smokey the Bear. This is not a signal that we're concerned about the fire risk. While anyone with the same notion as I can connect the dots when we're in a drought, there is a fire risk awareness that we want to make sure everyone is given. Without having to surf the web, without having to look in the paper, without waiting for it to happen before it becomes news.
We want to provide this district with a drought plan, and it begins with the signage at the entryway to the city off of Monarch and Quebec. It will also be tagged. So not from a Vandal point, character. Yeah wrong word. It will also be piggybacked with a, with a very simple but direct Q and A and, and description of the plan on our website.
And, and, it's with that brief, FYI and heads up, I want to let you know that, to date, we have garnered, the, risk reduction specialists from, South Metro's, attention and, and interest, as well as, the recent public information officer, Connie West from South Metro Rescue, on what they call the national or or referencing from the National Center of Disaster Preparedness and need to communicate where we live. More succinctly, to the benefit of the, say, the the security and safety of our residents. And and that's what we're going to endeavor to do. And, invite everyone to take a look at that and share with us their comments, after Thursday's installation.
Chuck:
Is there going to be a formal installation where you'll be there, maybe dressed up like Smokey the Bear or anything that we can?
David:
You know, I was hoping to send an invitation somewhat confidential because I didn't want to embarrass or to the mayor. But, no, I’m only kidding. The no, it is, somewhat of a pilot, if you will, to ensure that we've got our our positioning and our messaging correct. We've been working on it for over a year as you're all well aware of and have all approved it.
We're going in the first one on Thursday. Our second site should be secured shortly hereafter. And then, with the help virtually with the help and and participation financially with South Metro, the third and fourth sites will be installed.
Robert:
Maybe we can get one of the fire trucks out there at the same time and so it's more noticeable.
David:
What size are you?
Robert:
And, I take a big hat a very big hat.
David:
We can put out about any fire. Yeah. All right. We can solve any drought.
Robert:
Since we've named a couple names from the city tonight, I would just like to cordially invite them to all of our meetings and maybe they can make a statement for everybody. Well, here again, respectfully and professionally, just need to come together and work as one team if, if we can and, invited all, open invitation at any time. So, thanks.
Board Voting All Speak:
I'm sure they reciprocate. Thank you Robert. I would look for a motion from one of my colleagues to adjourn. Chris. Motion made by Director Merritt, seconded by Chris. Chris Lewis. All in favor, say aye. Aye. Any opposed? Hearing none. Motion carries unanimously. Meeting adjourned. Thanks, everyone.
Describer:
Meeting adjourned. Thank you for watching.