August 20, 2018
Transcript
CASTLE PINES NORTH METROPOLITAN DISTRICT
BOARD OF DIRECTORS REGULAR BOARD MEETING
August 20, 2018 @ 6:00 PM
7404 Yorkshire Dr. Castle Pines, CO 80108
Dave McEntire – President Term Expires May 2022
Robert Merritt – Vice President Term Expires May 2022
Denise Crew – Treasurer Term Expires May 2020
Kathy Rosenkrans – Director Term Expires May 2020
Norman Froman - Director Term Expires May 2020
1. Call to Order Regular Meeting/Pledge of Allegiance.
2. Roll Call/Announcement of Quorum/Disclosure of Potential Conflicts of Interest.
3. Approval of Agenda.
4. Public Comments.
5. Action Items.
A. Approve Minutes for the regular meeting of July 16, 2018.
B. Approve Minutes for the Special meeting of July 19, 2018.
C. Accept Financial Report and Items from Finance Director.
D. Approve/Ratify Current Payables For the Month of July (Checks # 23739-23802)
General Fund/Debt Service Approve $78,623.00 Ratify $84,851.99
Enterprise Fund Approve $124,848.81 Ratify $231,177.70
Electronic Payments (all funds) Approve $0 Ratify $96,809.94
Total Expenditures Approve $203,471.81 Ratify $412,839.63
E. Consider Landscape Offer from Esperanza HOA.
F. Consider PCWRA Expansion Project Escrow Agreement.
G. Consider Taylor Morrison Inclusion.
6. Communications Report.
7. Open Space Manager’s Report.
8. Manager’s Report.
9. Legal Counsel Report.
10. Directors’ Matters.
11. Public Comments.
12. Adjournment.
Board President David McEntire:
Good evening everybody. Without further ado, if you'll join me in the Pledge of Allegiance.
Describer:
The board members and the audience rise from their seats and recite the Pledge of Allegiance.
All:
I pledge allegiance to the flag of the United States of America, an to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all.
David:
I appreciate that, and as a part of the agenda for the regular board meeting of August 20th, 2018, I now call it to order. I'm going to call roll and, as you indicate, your presence, if you will disclose any potential conflicts at the same time, it would be appreciated.
Board Member Director Norm Froman:
Norm Froman. Present no conflicts.
Board Member Director Denise Crew:
Denise Crew. Present, no conflicts.
Board Member Director Robert Merritt:
Robert Merritt. Present, no conflicts.
David:
I am here, and we were given notice by Kathy that she was not going to be able to make it this evening.
With that, I will be looking for one of the directors to make a motion to approve the agenda as written. Please take a moment again, to look at both sides. It's at least a few more items more than we had, before. If there's any comments, questions, concerns or conversations that we want to have before that motion, certainly and of course, as a part of the action, hearing none. Is there a motion on the is there a motion to approve the agenda?
Robert:
I motion to approve the agenda.
David:
Is there a second.
Board Voting All Speak:
Norm. Yes. Robert. Yes. Denise. Yes. David: McEntire has yes, as well.
David:
Item number four on the agenda for those of us that are..for those of you that are following the agenda, we couldn't do it without the instructions either. Um.. it's a public comment section, item number four. Is there We have a large sign in sheet... and we have a lucky winner. We have Lisa Kane that is going to join us for public comment.
Lisa, would you like to introduce yourself at the podium please, by stating your name and address for the record and we'll listen in.
Lisa Kane, Castle Pines Resident:
Oh, hi. I'm Lisa Kane, and I live at 12660 Esperanza Court in the Esperanza neighborhood and, I and a few of our neighbors came, to the board meeting tonight because I know we had an agenda item addressing one of our, proposals for the Esperanza neighborhood. And, I know you're going to talk about it later, but, this is an area that, has been a concern of our neighborhood for a while, and, I just wanted to, reiterate to the group that, this is the only area that opens up into our neighborhood. These trailheads open directly up into our neighborhood and in our estimation, we look at it maybe a little bit differently. It's a lot of weeds, and we've had some issues there. In the past, we've had two areas that, the metro district has agreed for us to enhance, one was our back gate entry. Our gate entrance was pretty shabby and so they given us permission in the past to enhance one side of it. And then previously, we had enhanced an open space track within the middle part of our neighborhood. So these two areas that we're talking about in this proposal, are the only areas that are left. And, we're willing to cover the cost of enhancing it. And then we also in the letter, I think we mentioned that we would be willing to sign a restrictive covenant agreement, which basically would be recorded and it would, it would maintain, I mean, it would have us maintain the area in the future. So it wouldn't become a problem of the metro district. It would continue to be a problem of the Esperanza HOA. So that's the only reason I was here.
David:
Thank you Kathy. Let me take the opportunity to just ask you, if I may, in the past, you said that you have, made, like, arrangements with the district. And in those cases, were the terms the same where you made the improvements and you conducted or kept up the maintenance?
Lisa:
That was prior to me being the president of the board. And so I'm not sure about the S-curve. and I'm not certain about the landscaping at our back gate entry, because our management company was different then, and they may not have, added that, but we have a new management company now. And, in talking with her, we felt that that was the right thing to do and a fair thing to do to make sure that we were responsible for maintaining it. I don't know what we have in place for those other two, because one was back in like 2005 when we first moved in the neighborhood, and then the back entry gate was probably, I don't know, yeah, probably three years after that. So it was quite a long time ago. So we could look back in our records to see if we entered into that arrangement. I just don't know.
David:
I think staff, may have some insight, Jim?
Jim:
Yeah and looking through our records, it doesn't appear any of those improvements were ever documented as to what was agreed to. So that's one of the things we want to consider as we move forward, is that there are actual agreements in place that outlines who's responsible for what and who's going to maintain what when it comes to these areas.
Lisa:
And I think we're comfortable with that. I think we have in our past minutes about the S-curve, we call it the S-curve. It's in the central part of our neighborhood. That was that area where we put that patio area. I don't know if you guys are familiar with the neighborhood. we I think we have that in our past meeting minutes in terms of what was done.
But, and then on the landscaping, we also have what we what was done. And we paid for those projects. This project won't use water, any of the metro district water. Whereas the other areas, I think, the one area does have irrigation on the back gate entrance, and I think we do use metro district water for that, but this wouldn't require that.
David:
Would you be in favor of, as Jim expressed and maybe taking this, as an opportunity to clean up, the, parties of responsibility and outlining, again, the same responsibilities, moving forward for those areas an act to clean that hold issue up, something like that? For those areas? Certainly. Thank you.
All right we're on to item five. These are the action items. Action item A is the approval of the minutes of the regular meeting on July 16th, 2018 having received the minutes and reviewed them, does the directors or council, have any issue with, the minutes before we pursue a motion to approve same?
Okay, I'm looking for a motion from one of the directors to approve the minutes of the regular meeting of July 16th.
Norm:
I make a motion that we approve the minutes.
David:
Have a motion to approve the minutes meeting of July 16th. Do I hear a second?
Robert:
I'll second that motion.
David:
Seconded by Director Merritt. Is there any further discussion on the item? Hearing? No discussion. We're going to vote on the item. Please indicate your approval by saying yes or disapproval by indicating no.
Board Voting All Speak:
Director Crew. Yes. Did you speak into the mic? Yes. And Director Merritt. Yes. Director Froman. Yes. And Director McEntire is an approval or. Yes, as well.
David:
Item number 5B the approval of minutes of the special meeting of July 19th, 2018. Is there a motion that a director wants to make, before we seek a second and have discussion, if any, on that item 5B?
Denise:
I make a motion to approve the agenda of the special meeting.
David:
Motion on the floor by Director Crew. Is there a Second?
Robert:
I second that motion.
David:
We have a second to the motion 5B, approving the special meeting minutes of July 19th. Is there any discussion on that item from council or the directors? Since I have the mic, I do want to make one correction. iIf I may, this would be in the second paragraph of those minutes where we were discussing the authorization to engage COMEGA communications as a consultant. It was specific in that agreement that that consultant, signified a consultant for the board of directors, albeit there may be some additional work that may they may be engaged to participate in. I wanted to make sure that the minutes read as it was, as it was directed to me and authorized me to take action, with COMEGA. I don't have anything other than that. Anybody else?
Legal Counsel Kim Seter, Esq.:
No comments from counsel.
David:
All right. If there's no further discussion on the item, with that, minor amendment to those minutes, please indicate your approval of those minutes with that minor modification upon when called upon by signifying a yes or no.
Board Voting All Speak:
Director Merritt. Yes. And Director Crew. Yes. Director. Froman. Yes. McEntire is Yes as well. Motion carries action item number five.
David:
McEntire is a yes as well, motion carries. Action item number 5C is the acceptance of the financial report and items from the financial director. Amanda?
Describer:
On screen. The camera pans right to the podium with a shot of Amanda, who will explain the financial report.
District Finance Director, Amanda Castle:
Good evening. Thank you all for your time this evening. Tonight, for the board's review and approval. We have the financial statements as of July 31st, 2018. So we will begin on page two of the financial statements when reviewing the balance sheets for the district for the general fund and the enterprise fund, you will notice that the general fund, total liabilities and fund equity has decreased slightly from the prior year. That's simply a result of the property taxes receivable really becoming a receipt of the district.
As the year comes to a close, and we recognize the property tax receivable for 2019, or that will be received in 2019 rather, that balance will increase again. So you'll see along those same lines that the cash balances increase through the year, as we use those funds that balance will decrease and we'll see those changes as the year progresses. So I always just like to point that out, that change as we move forward. In looking at the enterprise funds, you'll notice that the enterprise fund cash balances in total went from about $17 million at 12-31-2017 to just over $9.5 million, as of 7-31-2018, a majority of that cash is sitting in the water fund to be used for projects within that fund, we have about $2 million in the wastewater fund for capital projects and additional projects that may be required there, and then about $500,000 in the stormwater fund. So I know you don't readily see that delineation, but I just wanted to point that out. as that becomes important when we're making decisions about those funds. Moving on to page four, the statement of revenues and expenditures. So within the general fund, well, within all funds in total property tax revenue recognized by the district through June 2018 totaled just over 3 million, which accounts for 99% of our property tax revenue. That's exactly what I would expect to date and I'm pleased to see those collections.
DIFFICULTY HEARING - David:
Are those through June or July?
Amanda:
That's probably truly through June I can look at that sheet and see, it's always a little bit of an anomaly because we collect July in August. So, but we…
DIFFICULTY HEARING - David:
Can I pay August in July?
Amanda:
You you pay August in July? So we have, a bit of a trickle there. So we've actually got collections.. You're right through July, the majority of which were collected in June of that three point, nearly $3.1 million. When we look at our total interest earnings to date, interest earnings continue to trend well over budget, which is great. We have increased the interest earnings in the general fund from the $36,000 that was adopted to $50,000. We will continue to monitor that to see if we need to increase throughout the year as we spend those cash balances, obviously interest earnings decrease. So we just start to really monitor that on a monthly basis and adjust as necessary. Additionally, in the general fund, oil royalty revenues are trending well above budget. But beyond that, you'll notice that the projected balance was increased from the $20,000 that was adopted to a projected balance of $260,000. This is twofold, one it accounts for the increase in oil royalty revenues that we're seeing to date. But two the district revised projections upwards, by $160,000, because we entered into an access agreement with Anadarko whereby, and we received notice that Anadarko anticipated proceeding or moving through on that. So that will actually produce $10,000 per well, and we've 16 wells, so we anticipate $160,000 in revenue attributable to those wells this year. So we did go ahead and increase that and I feel confident with that number as it stands.
Finally, in, the revenue section of the general fund, you'll notice that cell phone lease revenue was increased slightly above the adopted budget of $65,981 to $74,441 we had some changes to those contract amounts, which allowed the district to collect more than the original contract, which is great. Those contracts have, stipulations that allow for increases in the revenue revenue. So we get a monthly amount, but that that increases over the years. So we've been seeing an increase in those revenues and as such, increase the projected balance for that. Beyond that, we have revised some of the projections within the expense category. The first that we revised was the director compensation line item. So director compensation was budgeted originally at $8,600. We bumped that to just over $15,000. The reason being twofold. One, the district is allowed to pay each director, it has up to, $2,400 per year. So with the change in board, obviously comes an increase in those costs. But beyond that, those amounts allow for special meetings, regular meetings, all of that. So the board, as it stands to date, is allowed to collect $2,400 per year per board member. So we went ahead and anticipated the remainder of the meetings for the year and the cost attributable to those. Additionally, we increased the budget for legal expense. This was twofold one, with the change in legal counsel, but two with increased costs that we were seeing relative to legal counsel. So we'll continue to monitor that and obviously work with the new attorneys moving forward to get those projections in line as the year progresses. But that will be a moving target, I would anticipate as the air moves forward.
Additionally, consulting services for communication was revised upward, for the change in that contract. But consulting services, public relations, as you know, was revised downward. So we've we've had some ebbs and flows in that. And even with the change in consulting services for communications, the total is still less than the original budget that was adopted by the district so we're seeing cost savings there. Did you question?
David:
Your item B-4, where you increase that legal, from 12750 to 165 as a result of new general counsel retained by the district being party to, those, that business. I don't recall there being any guaranteed money, or downstroke or fee charged by counsel. The question would be, is it just been y'all's experience that that ramp up time and in billings associated with that is going to increase that or, I mean, how would we get from 130 to 165?
Amanda:
So it's twofold. We've actually seen an increase in legal expenses, for the past few months. So that was a portion of it. But beyond that we've got, a change in the contract, which, correct me if I'm wrong, allows for an hourly billing as well. And so just an effort to, be proactive and, conservative with our estimates, we went ahead and tried to project where we anticipated the remainder of the year to go.
But right now that's really just a projection. And we'll continue to work on that number and refine it as we move along. So it's not a definite either way, but it's something that we wanted to make sure we were including in our projections in an effort to be conservative.
David:
Item B-5. The consulting services, you've indicated an increase to 131. As a result, a new communication consultant retained by the district, what was the from number?
Amanda:
You know, I'm going to have to check in on that for you. We had originally, like I said, had a budget of $147,000 that was revised downward midway through the year, but simply for the fact that we didn't know where that contract was going. Now that we have a contract in place and have a price attributable to that, we were able to align those projections with closer to reality, I'll say so.
David:
INAUDIBLE QUESTION - NO MIC
Amanda:
No, yes and no. So the from in this situation is from what it was last month. So I can look back on the packet last month and see where we were. But we had originally revised that number down when, we had the loss of our last firm in an effort to see kind of where the district was going. And then when we retained, a new communications consultant, we went ahead and increased that budget from the original.
David:
INAUDIBLE QUESTION - NO MIC
Amanda:
Sure, absolutely. Yep. I'll make sure to get that for you. No problem. Moving onward onto page five, the district did recognize some cost savings associated with the election. We anticipated at a budget of $40,000, that came in slightly under budget at just over $33,000. Because the election has obviously ended, we went ahead and matched the projection to the actual and we don't anticipate any additional changes there.
Moving onward to page seven, the district did receive the second quarter of the lottery proceeds. We anticipate $12,000 per quarter right now. We're trending spot on with that. So to date, we've collected $24,331 and we anticipate to collect roughly $48,000 throughout the year and those, CTF funds can be used for, parks, and open space additions.
Beyond that, the COP revenue fund continues at, status quo. We did have the interest payment in June of 2018. So you'll notice that we've recognized one half of the interest for the year at $411,000. Additionally, we've got some trustee fees in there for total expenses to date of 414,000, of which, is offset by base rental revenue and interest on our COP's.
Moving onward to page ten, the Water Enterprise Fund. So water service revenues do continue to trend over budget. Total billed usage for July year to date was just over 345 million gallons, compared to 319,000,000 in 2017 and 266,000,000 in 2016. So you can see that usage has continued to spike, through the year, which has allowed us to increase that water service revenue projection.
So currently we are anticipating those projected balances to be, just over 2.7 million from the 2.6 million that was originally adopted. We will continue to monitor that. And as we approach the fall, we'll have a much clearer, expectation as to where those projections will come in. Beyond that golf course, water delivery also continues to trend over budget. So we revised that upward from 182,000 in the original budget to 191,000 from a projected standpoint, just like the water service revenue, we'll continue to monitor that and adjust as necessary. The inspection fees and miscellaneous income both are trending over budget. So we went ahead and increased those, just by conservative amount to try and estimate where we would expect the year to come in.
And in total, our projected balance for revenues, is anticipated at almost 3.6 million from the 3.3 million that was originally adopted. So that's really great to see that trend in revenue and I hope to see that that continues. Beyond that looking at page 12, you'll notice that water resource fees and water connect fees are also trending over budget.
We're collecting those fees faster than anticipated. And as such, we've increased the projected balance attributable to those. We'll continue to monitor those fees, but we've tried to come up with really clear projections on those. And I feel very confident with where we've got those projections to date. Beyond that, the, wastewater fund and the Storm Drainage Activity Fund are trending within budget. Expenditures are aligning with our expectations, and there are no major items of note for the board. Moving on in the packet, to page, I apologize, page 19 the cash balances in the General and Debt service fund to date, all cash balances are just under $26 million, of which nearly 16 million is restricted for future capital and then we've got some restrictions for debt, and other items within the district. So the total that the district has available to spend is about 7 million, which is exactly what I would anticipate. As I've explained before, we like to see about a quarter of expenses available for, future years spending or within the current year as the year comes to a close and we're trending right where I would anticipate.
All right. So beyond that, I don't have any other items within the packet, but we have begun work on the 2019 budget. So we've actually got the first draft of the budget complete, Jim and I are both in the review process of that budget. So we're walking through it, trying to make sure it aligns with our expectations for next year and we'll bring that to the board in October, I believe. So if we look at the memo that was prepared, you'll see the, budget calendar within that memo and so currently we have the draft due on, September 19th. We're currently preparing to send that to Bartle Wells, who performs our rate study. So we've worked very closely with Erik at Bartle Wells to get that tied up so that he can make sure he's got his deliverables done, and then on 9-26 we will distribute the first draft of the budget to the board of directors and then we'll have our rate case presentation at the regular meeting in October for the board.
So we'll walk through that process and continue to go through that as we go through work sessions. But I wanted to draw those dates for you.
David:
Amanda, is a byproduct of some of the earlier discussions, with the board there was some targets or recommendations or both, for these kinds of, budget work sessions a couple months ago and, as you can imagine, trying to get everybody on the same page to participate in that is a challenge, to say the least. That being said, I'm wondering if we can make some adjustments to your schedule to, lineate, the board of directors work or study sessions and, and and work there in to occur both on the 24th of September as well as the 8th of October. The majority of the board is is already blocked that out, staff has been party to some of those conversations. I believe, at least in the forefront of, of my effort to get those dates locked in, I'm hoping that they'll, it looks like it'll flow.
Amanda:
Okay, so just to make sure there's clarity.
David:
That's not in lieu of any regular meetings, that's in addition to, yes ma'am.
Amanda:
Correct. So we are requesting budget work session on both September 24th and October 8?
David:
Yes, ma'am.
Amanda:
Okay, so I don't think that will be an issue I'll work with Erik at Bartle Wells to make sure that we've got deliverables timely for that and can pass those off to the board and then we'll review an initial draft on, the 24th and have any follow up there too, on the 8th as required.
David:
Super, Thank you.
Amanda:
I'll work with our team on that and then I do have one, final item of note for the board. So Pinnacle has a contract with the district for services and our scope of services currently has a budget of $125,000. That scope of services allows for 12 board meetings, monthly financial statements really our standard service of work but that as we moved forward through the year, that scope of service has changed. So we've got a change order to present to the board. So I'll hand that out to you. But I do want to just take a couple of minutes to go through that.
Describer:
Amanda leaves the podium and hands out her change order to the board. She then returns to the podium.
Amanda:
So, just to go through this, we are proposing an addendum to our contract of 226 hours for a total cost of $25,990. That includes, seven work sessions from the board. We did exclude the August work session, as we didn't have it. So we went ahead and removed that from the projections. Additional time spent just walking through the audit and reviewing that additional time that will be required during the budget to align, expectation and goals and all of that with the new board, and, and working with new attorneys and then additional financial management time just with requests and walking through things.
So in total, you can see that the majority of the time is really spent on additional meetings and we wanted to make sure that we had the time available to give to those meetings, prep accordingly, answer questions, all of that. As I said, our original scope of services allows for 12 meetings, so we wanted to make sure to get ahead of the board on that, and get that request in place.
So this is not a decision the board needs to make tonight. We just wanted to ask for your consideration in that addendum to our original contract. And the addendum itself does specify the date of our original contract, which was January 2nd, 2015. And then Jim, I know has the updates of when that contract was renewed annually and I've got specifics as to the scope of services outlined in those contracts as well.
So if there are any questions, I would be more than happy to answer those okay?
Denise:
I have a quick question. You, projected I understand, but you, bill, on actual?
Amanda:
We bill on an annualized basis, so we project based off of our, history and scope of services. So I know when I'm working with the district. Okay, meeting takes me this long, and I've been with the district for a long time, so this is actually quite simple for me to come up with the calculation, come up with that and then we annualize that number out. So the district actually pays a monthly fee to pinnacle.
District Manager Jim Nikkel:
Can can I restate your question in a different way? If there were not to be additional work sessions between now and the end of the year, would that change your dollar amount on the..?
Amanda:
Yes, it would.
David:
Did I hear you correctly that that 25,000 was for allocating 17 additional?
Amanda:
Seven, seven additional, seven, plus additional time on the audit budget and financial management.
David:
Man $3000 bucks a meeting?
Amanda:
Well we right now our current charges originally our scope of services for the district was 135,000 when we switched to an annualized bill, we lowered that to 125,000. But we're still trending at that $135,000 mark. But beyond that, when we look at where we are going with this, we're getting closer to to 150,000. And when we, analyze that and it's really it's not just the meeting itself, it's preparation answering questions, reviewing documents, really getting ourselves to a point of being the financial manager of the district.
David:
And I know that until somebody were to read through that contract, they wouldn't know or understand or have a have, the level of detail that you bring to each and every one of those meetings and we thank you. We also thank you for the quality of work, and the reception that you've given the new board and willingness to work with us, even on an additional basis, in some cases, charge for in other cases, not, Any other comments from the directors?
Amanda:
And just to give some light on that, we currently have budgeted about, 1050 hours and this is an increase of 230 hours to that budget. So relative to the overall budget, I know it's a high dollar amount, but it really does increase our budget that much to be able to be available and and provide the level of service required.
David:
The reason for my pause was, was was trying to articulate in my own mind how in the world can someone with your longevity and relationship and the wisdom, from same in working with the board, have been a party to rate and fee study and the adoption of a budget last year that didn't contemplate these extra expenses associated with new board members.
Amanda:
So we do we do have new boards often. We don't typically have new boards that are nearly a complete turnover, which which does add extra work. But beyond that, our scope of services is clearly dictated in our contract and our scope of services allowed for 12 board meetings, monthly financials and a certain level of financial management attributable to that.
We now have a special meeting and a monthly meeting, plus additional time required to walk through certain processes. For example, before when we had changes to the board, we still retained typically three board members. So walking through the budget we had assistance of board members that were historical to the district and could help really draw the picture, and help bring the new board up to par. This year we're without that. And so we're leaning in and trying to educate the board and make sure we're there to answer your questions and provide the level of detail necessary for decision making. You know, the decisions you're making are critical to the success of the district and the goals that you'd like to achieve. And we want to make sure that we're there to help you walk through that.
David:
Again nice job in that regard. However, that will draw you to what has struck me to be a nuance to this position and this district, for me anyway, and that is in the forefront of the agenda, ever since I've been a party to this has been an itemization of the board members and their expiration terms. So, again, not to beat a dead horse. You knew last year that there was going to be a majority of the board and that it was likely going to incur some additional charges. It would be with that disposition, that state of mind, that effort going through the budget in the next couple of months, that we want to do our darndest to make sure there are no extras in 2019.
Amanda:
Right. So let me let me state it this way. We have an annualized contract with the district that we negotiated this year. When we're looking at those, we want to be as responsible and conservative as possible while trying to make sure we understand what's coming.
Describer:
Technical difficulties interrupted Amanda’s speaking.
Amanda:
There we go. So when we have an annualized bill, we want to make sure we're conservative and fair to the district, which is exactly why we have a stipulation or a contract that should those terms change, we'll bring it to the board’s attention. I would hate to go the opposite and say we're going to anticipate all of these items and then not happen. And we're charging the district for a level of service that we're we're not providing. So instead, what we do is we say this is really based on our service.
Describer:
Amanda’s microphone battery was failing. Jim attends to it.
Amanda:
Thank you. So even in years where we've gone through changes, we've really got a strong history to know kind of what what status quo is. And so we budget at that with the knowledge that should that change we'll bring it to the board's attention. So that's exactly what we're doing.
David:
Thank you Amanda.
Amanda:
You're welcome.
David:
Having heard item 5-C which is the financial report and items for the finance director, I would look for the directors from I, I'd like I'm looking for a motion from the directors to accept the financial report as reported by Amanda. Do I hear a motion?
Norm:
I make a motion that we, adopt the, financial report by Pinnacle.
David:
Second, Do I hear a second?
Robert:
I second that motion.
David:
Having a motion on the floor by Norm Froman to accept the financial report and the items from finance director and the second from director Merritt. Is there any further discussion by the board? Hearing no further discussion by the board. Please signify by, saying yes, for approval of the motion or no, for disapproval when called upon.
Board Voting All Speak:
Director Crew. Yes. Director Merritt. Yes. Director Froman. Yes. Director McEntire says yes. Item number five D, which is the approval of ratification of the current payables, for the month of July.
These are checks number 23739 through 23802. We have, funds, from the general fund and debt service accounts, to approve of $78,623 and ratify those forthcoming of $84,851.99. We also have enterprise fund, approval amount of $124,848.81 and ratification of the $231,177.70. Lastly, the electronic payments, these are all funds to ratify the sum of $96,809.94 for total expenditures to approve of $203,471.81 and ratification of $412,839.63.
Do I hear a motion from and directors to accept, these approvals and ratifications of the payables?
Denise:
I make a motion to approve D.
David:
I have a motion to approve. Is there a second?
Robert:
I second the motion.
David:
A motion on the floor from Director Crew and a second from Director Merritt to approve and ratify the current payables for the month of July, those being checks 23739 through 23802.
Is there any further discussion? Hearing? No further discussion? Please signify your approval of same by, saying yes or no if it is not within your purview to approve.
Board Voting All Speak:
Director Crew. Yes. Director Merritt. Yes. And Director Froman. Yes. Director McEntire is in the affirmative with a yes. Motion passes.
David:
This is action item number E, a consideration of landscape offer from Esperanza HOA.
This is, the same item that one Miss Lisa Keen addressed in the public comment section of the meeting early on. The board has asked that staff, not only ensure that it made the agenda, which was the easy part, but to, diligently work through the issue and come to the board and those attending here with not only a report, but a recommendation.
Is that going to be handled by you, Jim, or you want or is Craig going to handle that or both?
Jim:
I can handle that or if you'd like Craig's opinion, that's fine. Also, I would say from staff's position, we have no issue with what, the HOA is proposing here. A few items to consider however, in what I will call the northern access, that's been referred to as a trailhead. There is actually no trail there, that access is to allow for utility or maintenance vehicles to enter into that section of open space, because there is no trail in that area. And also for South Metro Fire to be able to access the area in the event of, fire suppression. So whatever is to occur in that area, I would strongly suggest that we involve South Metro fire to get their blessing so that we're not clogging up an entryway, that they they're not no longer able to get back into that area. In regards to both of these areas, there is plantings shown. And as I've pointed out and as Miss Kane pointed out, there is no irrigation up in these areas so I'm not for sure what planting is anticipated. But whatever it is, it will take water to get it established. Even if it's Zurich, it will take water to establish that. The only other thing I would add is, I like the idea that they're willing to draft, through their attorney. The first agreement that for review. I'm not for sure if that's a restrictive covenant, as they've mentioned here or if it's more of a license agreement, I would refer to our attorney or defer to our attorney as to the best, methodology to handle this.
But again, as long as we've documented it, I say in the past I'm not finding any records. It could have been a verbal agreement. It could have been a handshake agreement, but just so that all parties are protected moving forward I would recommend we seriously document what we're what we're proposing here.
David:
Thank you. Jim, I think that, if I'm hearing you correctly, in addition to some of the items that I brought up, you're echoing the, the opportunity in in our responsibility, with this item to incorporate any of the, items that have slipped through the cracks or those that have some history beyond our knowledge or documentation, to address each one of those, including, as you mentioned, is there a trail or is there not a trail in that area? The fire access, etc. I would hope that every one of those, be addressed as a part of any kind of a communication in agreement moving forward.
Jim:
And, and as long as the HOA is willing to do the clean up on the other two areas, I think it's a great opportunity to just set the record straight for both parties.
Describer:
Lisa starts to speak off mic, but then moves to the podium.
Lisa:
Currently we have a landscape company that comes monthly into the neighborhood, and they maintain those other areas. Currently, the S-curve, that open space tract within the middle of the neighborhood and that, that gate entrance, they maintain it in terms of all of the, weeding, all of that. They do all of the repair everything.
Jim:
And again, just just so that it as time moves forward, there's not some new group ten years from now, going why is there why is there this encroachment into our open space? Documentation of all this will eliminate it, that as we move forward.
David:
Thank you. Lisa. Craig, you add some color to this tonight, and then, Kim, if you have any follow up.
Craig Miller, Supervisor, Parks, Trails, and Open Space, CPNMD:
Thank you. I did want to make a few points to be the devil's advocate here. On that North trailhead, quote unquote, that Jim was mentioning, which is a, maintenance and fire access. Improvements were made there before my time, somebody put in some landscape fabric and some mulch and everything like that. It had not been maintained very well. And in fact, my crews had to go in and clean some of that up last year. So I would disagree that, residents have done maintenance on that portion before. I also want to, establish, reinforce what Jim said. Nothing, including ornamental grass established without water and additional occasional water may be needed during periods of drought to keep a zero scape going. So without any kind of plan to irrigate or provide irrigation during periods of drought, landscapes will be lost. Point and two cases that, we're familiar with very much so my, my crew is, here in Castle Pines. On Berganot Trail four pines were planted with district commission over ten plus years ago. All of them died. We had to remove them because the new homeowner had come into the property and was not aware. He thought they were our trees, so took a complaint on that and had to had to, resolve it. And also on Bristle Wood Lane, a landscape was installed on our open space behind one of the houses by the developer back when that was built to try and sell the model home. And, that has become an annual maintenance nightmare for us.
We have to go in there and maintain it all the time because it just gets real overgrown with grasses. The resident that lives there doesn't like it. She's lived there since day one, so she insists that it be maintained because the prior parks manager maintained it for her. Again, it's it's time that my guys really don't need. So those are two examples of things that happen with these permissions on open space.
I'd also like to point out that there are no trailhead entries in Castle Pines North Metro District open space that are landscaped. All are native grass exactly like this is so we don't do anything special with any of our trailheads. This makes it easier for us to maintain the trails, easier to replace the trails, and do things along those lines rather than having to fight with landscaping on either side. So those are the points that I wanted to make.
David:
I appreciate those and, find them very insightful and valuable to consider as a part of. Again, as is, chairman and this board, I think, is in, in favor of and that is pursuing an agreement that would not only pick up all the aforementioned, issues and, interests that we all share. But, and experiences of the past, but also those moving forward, if they were to include, some, cooperation on the HOA's part to address this, landscape or by a developer to sell them model, having been there, done that, there's a real possibility they could help us in that regard. And we have the time to to construct this document as long as we're all on the same page moving together, not pointing fingers, but looking to come to some, long term resolution that benefits us both.
I would also add, I think, we would would all, agree that there needs to be some kind of accountability mechanism in, in something like that, where you have it in your contract with your landscaper, which you said you do, and we believe you and that they're doing a great job. But what if they got hit by the proverbial bus and and so who's to do what to who, and how are we going to get that done?
And so, with, Kim's help and, and your participation, Craig and Jim and and Lisa, your group, I think what a great opportunity. Thank you for bringing the item, to us. Is there any other comment, questions or concerns by the board?
All right. This is action item number 5E consideration of the landscape offer from Esperanza HOA. A having heard the
conversation, that ensued, upon introducing this item, is is there a director that is willing to move forward with a
motion to approve or disapprove this item as presented?
Denise:
I would like to make a motion to approve the consideration of landscaping for the Esperanza HOA.
David:
This motion again, if I characterized it and, would also in include a motion for approval upon reaching a mutual
agreement with the district to clean up all the previous items, all the current items, and address the the future
items as a part of a of a motion true?
Denise:
True, that's a lot to spit out, though.
David:
Thank you. And I and I may have said it before and and that was my intent, but I just wanted to make sure that counsel
is aware of the intent of the board, as he's going to be intimately involved with other counsel on the, on the
Esperanza side.
Denise:
Right and my understanding is by moving this forward, we're looking at a landscape offer, and we're going to be able to
see a little more detail and an agreement, an intergovernmental agreement between their HOA and the metro districts.
David:
Well, we could revisit the item or we could leave it to council and, and staff. With the direction that we've given
them tonight, to report to us upon consummation of that or if they run into trouble, that as well.
Denise:
So make sure that we're covered and they're covered is my only.
David:
Whatever you're comfortable with doctor or Director Crew.
Denise:
I guess from my perspective, I think it's a great idea and I have no problem with you proceeding with it, but B it's
on our property, so we need to be concerned with that. You said there was something with it, with a deed that was
passed before. If that's going to happen again, I just would like to see that paperwork and be a little, just a little
bit more educated.
Lisa:
The two areas that historically we got approval to improve, are the open space track. As I said in the middle of the neighborhood and our back gate entry, the area that Craig Miller was speaking of was the trailhead, by Mary Bess House.
And she had gotten permission because it was very much just weeds, to there's a little tiny opening in the fence and then two little areas, a plant of that had weeds in it, and she had gotten approval to, put bark over that area. But that wasn't an area that our landscaper has ever addressed, because we've never really been able to do anything with those areas.
And it has looked unsightly. so I think that, I just need direction. We can certainly have the landscaper. Before, when we submitted this proposal, it was, turned down. And, so we didn't have a formal landscape plan submitted because we wanted to get permission. And so we can certainly get, formal landscape plan taking everything into consideration.
And then I just need direction from you, as shall I have our property manager through our attorney put, you know, draw up this document that says and identifies these three areas, the two trailhead areas, the existing S-curve that's already has improvements, and our back entry gate and include that in if it is a covenant, a restrictive covenant agreement or not.
I just need to know what I need to submit other than the landscape proposal.
David:
Is there any reason on anybody's part that that believes, if we brought the item back for ratification next month that we could work out all the bugs in between? Is that enough time, do you think?
Lisa:
We were hoping we could. If we got approval, we could have it done before winter, but do you think?
Describer:
A resident speaking in the audience of mic.
Lisa:
And, in the past and it was before I was involved, and it was just my understanding, that they had, I don't know if it was, a verbal agreement for the area within the open space track. They had an agreement with the metro district to do that and for the metro district to provide the water and, the same with the the, you know, the gate entry.
There is water that is available, at the other trailhead entrance, the more traditional one, there is water there, but we're certain, you know, we're certainly willing just to try to put plant material and be responsible and, to water it until it gets mature or whatever we need to do without accessing metro district water.
Denise:
Right. I guess my point or where I'm going with this is I just need to know a little bit more. The idea and concept no problem with personally, but I'd like to see some agreements and what's going to happen. Just just so we all are super clear on who's responsible for what.
Lisa:
Sure, I understand, and that's why we tried to send pictures that. Yeah, I don't think it did it justice and we took pictures throughout the neighborhood to show, even though it's not the same kind of entry in some areas, but some areas are more landscaped as the inner neighborhoods, ours is just unique.
Denise:
Correct, I've walked through your neighborhoods.
Lisa:
You have. Yeah. You've seen it?
Denise:
Yeah. yeah. Pictures would be helpful.
Lisa:
Well, we sent some we but I don't know, we sent them with the letter. They were, They weren't good. I never saw them
afterwards.
Denise:
They were aerial and difficult to kind of figure out what was where.
Lisa:
Oh, I see, okay.
Denise:
Then we have these drawings here, and that's all.
Lisa:
And that was just something drawn up because we didn't have a formal, signature.
Denise:
That's all we've seen so far. Sure. Just a little muddy, in my opinion. That's all.
Lisa:
Okay. Well, we could certainly have, something drawn up and send it to the metro district to look at and to approve. And we can certainly contact the metro the fire, the south right. South metro. Yeah. South metro to come and look at it. I know it's very narrow opening, it's very narrow walkway.
Denise:
I think if you can get that together then we wouldn't have a problem moving forward to approve it. But to just say go ahead and get started right now, I don't think we have quite enough.
Lisa:
Oh that's fine. Okay.
Denise:
Thanks.
David:
Thank you Director Crew and Lisa again with that. I think that, staff council and the board are clear that we're going to take, this action under advisement and try to work through all of the, nuances that have been discovered even as early as tonight, come up with an agreement that has a mutual, approval and, do it expeditiously and bring it before the board as early as, our regular meeting next month.
If, that's everyone's understanding Director Crew, you will, withdraw the motion and we'll move on to item 6F.
Denise:
Okay, I will withdraw the motion.
David:
Thank you, item 6F is consideration of the Plum Creek Water resource PCWRA. Jim's going to bring that to us, it's the expansion project and the issue agreement that, he, council and others have been working on, I know that, in legals, report, he expounds on it from a legal point of view.
So I don't know that there's any reason to, take that on, Jim, as much as is, if you'll give us, reasons for consideration. You have the floor.
Jim:
Thank you, PCWRA by the way, is Plum Creek Water Reclamation Authority. They're the folks that treat all of our wastewater. We are a member and owner of the facility, along with the town of Castle Rock and Castle Pines Metro othe village.
So under the establishing agreement, the agreement anticipates that over time, improvements to the plant as well as additional capacity would be needed. We have basically been operating underneath that establishing agreement, this district, since early in 2013, before I was even here, knew that this day would come. And this day is being driven by Legae. Basically new development Legae,
when that property was included in this district, it was never in the original calculations for how much capacity we would need for treatment. We had a service plan and a basic build out area. But I say with the inclusion of Legae, things changed, so we will need additional capacity. This additional capacity will also allow us to serve in the future any density increases such as what the town of our city of Castle
Pines has been talking about, may happen in the commercial area. We would be prepared for that. Without additional capacity, we will not be able to serve the build out at Legae. We would hit a point where we would hit 80% of our capacity, and that's as far as we'd be able to sell taps.
The way the state looks at this problem is that 80%, if you use 80% of your capacity, you've got to be under planning and at 90%, you've got to be under construction. So this is our opportunity to get, under construction, if you will. This is a 3 million gallons per day expansion of the wastewater treatment plant. It is driven primarily by the town of Castle Rock.
If you’ll see in the escrow agreement, they're taking 85% of the capacity. Our share is 13.68%. Again, in our budgeting process, we had anticipated this a year ago. We increased our sanitary sewer tap fees, to help offset these cost. We have been placing money into a reserve fund here on the wastewater side and like I say it's not that we did not know that this was coming.
What has accelerated a little bit, though, is this desire to fund the escrow agreement for work package one. This is in your documentation, and it lists everything here that's included in what the total amount is. What's driving this primarily is a desire to preorder treatment equipment before costs go up, or more importantly, before additional tariffs are potentially placed on this equipment.
There is no wastewater equipment that's being ordered here that is produced in this country. It all comes out of typically Japan, France or Australia. So there's potential for, tariffs on those. Additionally, to help facilitate the project and get it moving forward there's some preliminary earthwork as long as utility relocations that we want to fund in this first agreement.
What I have just discussed with the board previously, is the funding mechanism for this and have always suggested this be done in terms of a revenue bond with a pledge of fees and rates, because we will not be able to pledge tap fees. But really, the funding source for this prepayment is primarily tap fees. There's a small percentage that we will ask our customers to pick up to their rates.
And the reason for that is that not all of this expansion, not all of this project goes to new growth. There are items in this project that are replacement of worn out equipment or installation due to anticipation of future permitting requirements. We want to always be ahead of the permitting requirements. So that when we each time we get a renewal of a permit, we're not scrambling for funding to, to go out and put new equipment in.
That's the basis of the program. My recommendation would be, to the board that you allow me to begin working with bond counsel, and I would suggest that would be Christine Laich at Kutak Rock, along with Ellen Malts at George Kay Baum and Jim Harrington as our financial advisor. Yeah the bond request would be for $5 million.
And I say the pledge is fees and revenues of the district primarily paid for by tap fees. Bond holders did not like tap fees because they're not predictable. The other part of this is, that we would fund our initial $1.9 million in change from cash from the wastewater fund side. We have that in reserves, but we use the $5 million bond to pay back the 1.9 million so that we rebuild those reserves in the event of a catastrophic failure of some equipment here, because that's really what those current reserves are, would be earmarked for.
That's the program in a nutshell.
Robert:
I'd like to see a breakdown of what is, replacement versus allocated for the new Legae construction. You have all that?
Jim:
I do not, but it's been requested because all three members are looking at those exact same numbers. Because we will use those numbers to help set rates as well as tap fees moving forward. And our tap fees will probably need to be increased to somewhere in the neighborhood.
There's currently $6123 for single family equivalent on the wastewater side. Those tap fees are going to probably go up to the neighborhood of $7,000, or a little more than that. When I run my simple arithmetic. But Eric at Bartle Wells will do that calculation for us until I tell us exactly how that breaks down, as well as what the effect is on on our customers rates.
I say don't have that exact breakdown yet, but it's been requested of our engineer and staff at PCWRA.
Robert:
And when will those numbers come about?
Jim:
I expect to have those within the next two weeks.
Robert:
Thank you.
Norm:
Are we talking about another ditch down there, to an additional the three that's down there?
Jim:
No. The ditches are satisfactory they have sufficient capacity. That was anticipated, many years ago when that third ditch was installed. What we're really talking about is additional, treatment capacity in the front of the process as well as on the back end and disinfection. That's where we're really short. And then internally there's conveyance issues, trying to move this much additional water.
But the ditches are adequately sized things like air handling. We've got to have an increase in that because air is really what causes all of this to happen. If you notice, when you were out on our tour, everything's always bubbling somewhere until you hit a zone where you kill it off, kill the air off, sort the bugs, then die.
But for the most part, everything's air driven.
Norm:
When we were down there, there was one ditch that was way down and was under, I guess, construction or was it, just at that capacity?
Jim:
We had just finished doing the equipment installation into ditch three at that point in time, and then that allowed them to go back into ditch one drain it down and do cleaning process in there.
So that's one reason why that was down low.
Norm:
So that's not the normal?
Jim:
It is not, it's usually, normal operations is all three ditches are full.
Norm:
Okay thanks.
Denise:
I have a couple questions. Easy one, you said 80% planning, 90% construction - where are we at?
Jim:
And Capacity at the plant right now? About 85% to 87%.
Denise:
So we're at critical? Critical. Okay, all right.
Jim:
And that's not driven really by us. It's driven by our partner town of Castlerock in the amount of growth they're seeing.
Denise:
Okay, what affect when, Shea builds?
Jim:
None because that all goes to Parker water and sand.
Denise:
Okay, all right is there a way to fund this without doing bonds?
Jim:
We don't have the cash for it in the wastewater fund.
Denise:
This is package one of how many? Four?
Jim:
Two, two. The second escrow agreement will be for the balance of the funding.
Denise:
And do we know those numbers?
Jim:
Our total on this project is four point something million dollars is the total and that's why I say we would ask for 5 million in the revenue bond.
Denise:
Okay.
Jim:
And just so that there's some contingency in there, because we're still working with drawings that are only about 95% complete right now.
Denise:
Okay, great. Thank you.
David:
Jim, I'm trying to extrapolate, what is missing? In your presentation, we're talking about a revenue bond of $5 million dollars while we can cash flow it and then return those reserves, we're then talking about a $3 million down stroke which is, more than 13% of the 13 million, by twice. So this itemization that Robert is asking for is going to be beneficial but.
Jim:
The $13 million number here is just what's going to be escrowed for work package number one.
David:
And and so there's a second package of in a like number.
Jim:
That's right.
David:
How are you have known about this for a bit, you knew about it at least in 2017. The team knew about it in 2017. Correct. What was the preliminary guesstimate then do you recall?
Jim:
Yep. It was it was north of $40 million, and it's been reduced now to roughly 38 million and change.
David:
That's terrific news not only, the obvious, but I'm certain that as a part of much like along the conversations that I was having with Amanda, that last year, you would have been cooperative that, thinking and, that impact to the district in in adopting a 2018 budget, we're I'm having a problem connecting the dots then is if the costs have gone down and we knew it last year, how is it that, that we may have to increase, tap fees from 63 to 7000 bucks, per if I generally speaking.
Jim:
It's a fair question. That is simply without having Bartle Wells having run that rate model or that tap fee model. Okay. That's my gut feeling is those numbers are going to have to go up a little bit.
David:
And that would only have to, that would have to be the cost of money. It can't be hard cost as we know those have gone down.
Jim:
Well, and it also is a function of how things break out. How much goes to growth and how much goes to our current customers. And we had to make some assumptions a year ago because those numbers had not been run yet and I..
David:
They were based on the 40 million?
Jim:
They were based on our share of 40 million but we had to take a guess at that point in time to run that rate model as to how much would go to new growth versus how much goes to existing customers. I think what you're going to find is the amount that goes to existing customers has gone down, and the amount that goes to growth goes up.
David:
Well that may be the offset this year, but last year I would have suspected, given the fact that Legae was just coming out of the ground, that there was more of a planning, outlook to, lean on fees, during 17 than there than there is actually taking place with 18 coming on as it was reported earlier, with them with more speed.
So, I'm, I'm willing to wait for the math as well, but it seems like if we knew this in 17 and we began to take action rates and fees in 17 that we would be in pretty doggone good shape as those numbers come to fruition. As we're looking to consider the 19 budget, yeah?
Jim:
I don't don't disagree. But again, I think what really happened was we overestimated how much of this project would be in improvements that, existing customers would pay for versus how much would go to growth. And now, with the development of the plans and a breakdown of what these processes truly look like, we've been able to get a better handle on how much is existing customers cost versus.
David:
Now I understand your proposed adjustments for growth versus.
Jim:
We wanted to increase those tap fees so that we didn't have a big rate shock but we probably, like I say, underestimated how much is the development side versus how much is existing customer side.
David:
That's fair your adjustments are parallel to actual. And that's what I was looking for.
Jim:
At the end, the numbers are have actually reduced from what we were projecting the costs were going to be as we've gotten further into design, as we brought a contractor in as a partner to help make some modification to plans, say, here's a better way to do some of these things and work with our design engineers. That's how we've been able to drive costs down. But what we probably missed a year ago was what is the actual split? And probably put a little heavier on the rate side and not as heavy on the tap side.
David:
Very good. Amanda, did you want to add anything to that?
Amanda:
I was just going to say we're just to.
David:
Or just a yay amen?
Amanda:
Right? Woo-hoo! Yeah. No when we. So when you're looking at any impact fees on any level water district, fire district whatever that may be, impact fees for water district coming through your taps, your best guess is what you have to rely on. So when you're looking through that, you have to make it equitable to the true impact and so when you go through those nexus studies and look at that, when those impacts change, that's where you see that change come through on those tap fees. So to Jim's point, as that impact has changed, so too will the fees associated with it. So new growth will pay more in tap fees because the impact is greater toward that and fees to the residents will be less than, than the original anticipation. So that was that thank you.
David:
Thank you Jim, is there any questions, comments, concerns from the other directors?
Robert:
Just concern that we'll be looking at the growth impact and we should have planned for that. And they should have the burden and it shouldn't go back on the residents that are here. And if there was a plan going forward of the maintenance of that facility, that would have, let all the residents, receive the wastewater or, get rid of the wastewater that will be included in those numbers right?
Jim:
Would you restate the question, please?
Robert:
First, the first plan. I'd like to look at that. We'd like to look at the first plan, because it's the addition, the growth that this has to be done. We can talk about this later okay. And but yeah, there's a lot of questions that we'll have to get through on that because, you know, we're not a fan of, another revenue bond so we'll have to wade through it.
Jim:
I understand the beauty of a revenue bond, though, is it really allows that growth to pay for it as that growth comes on the line. So those those tap fees make those bond payments.
Robert:
But those dry up at the end the tap fees. But we'll discuss it later.
Jim:
They will dry up at the end. But if we structure the revenue bond correctly as we've if growth accelerates and money's coming in faster, we just want to set it so that they're call dates that we can pay off in advance. Is the way to set that up.
Robert:
Okay, we'll look at the details when they come in thank you.
Jim:
Okay.
David:
Very good. Jim, any any other comments from the directors hearing? None. Counsel?
Kim:
I just want to make sure that the board understands that there's going to be another agreement after this one. If you approve this one, there will be an agreement that will determine the percentage of the expansion capacity that you'll obtain. So that well, it may not be this figure for the expansion portion.
Jim:
What will change the 13.68% is set now the follow up agreement will have that same percentage in it. What will change between the two would be dollar amounts up or down as we get towards a guaranteed maximum price from our contractor. That's where the fluctuation could be.
Kim:
Right. Once you've approved this package, you you'll basically be committed because you're not going to get this money back. And there may be some fluctuation in the dollars.
David:
I was, in review of the package had the understanding that it was not in a form for the board to consider action on tonight was my takeaway incorrect? Is there an action required board to bring?
Kim:
I think I put in my report. If staff wanted to bring it to you, they could. And I don't know if Jim's asking you to consider it tonight. The original draft had some other language in it that I had commented on.
Then this came out with the red lines in it. As it's written, I don't have any big issues with it. It's pretty straightforward. so if you wanted to approve it, you could. But knowing this is currently in draft form, I think it's probably been commented on by everyone at this point, is that true Jim?
Jim:
That is correct.
Kim:
It's up to you if you want to approve it as is, or wait for the the one that's not redlined and see where it actually comes out. I don't have a preference.
David:
And Jim, you're asking for action by the board tonight?
Jim:
If if not tonight, we will definitely have to approve at the next meeting because PCWRA meeting will follow up, eight days after our next meeting. And at that point, the group wants to know if we're in or if we're out. And if we're out Castle Rock will take the balance of our capacity, and we'll have to figure out then, moving forward, what we do with the balance of Legae and any future development.
David:
If I heard you correctly, it would not, negatively impact, our current position with, that association or those members if we deferred action, of course so long as it was affirmative, would be the expectation in our next meeting is that correct?
Jim:
That's correct.
David:
All right.
Jim:
Our our drop dead date would be our next meeting.
David:
Directors hearing, the Q&A, with counsel and Jim, what would be your, your preference at this point? Would you like to take action? If so, I would entertain a motion. If not, if you'd rather take the time and, clean it up, get the numbers together. Clean up the language as Kim has outlined and and make sure it's on the agenda for the September meeting. What's the directors pleasure?
Jim:
And if I could just add to that, if you'd like to delay to the next meeting, I would suggest that we bring in the financial team bond council, bond salesman, if you will and our person that we've used, Jim Harrington, who we've used for a number of years as a financial advisor, let them put the numbers together. So just see what the $5 million revenue bond looks like, what the repayments look like, and they'll have all that ready to go with some assumptions, because you don't know until to actually go to the market what those bonds are going to look like. But they'll bracket the parameters on there for you.
Norm:
In the meantime, do you think you could put them on 2 or 3 pages on the front in this? That kind of indicated exactly what this entails?
Jim:
I can certainly do that.
Norm:
I mean, just then just, you know, an introduction and a description.
Jim:
I don't know if it'll be 2 or 3 pages, but I can give you a breakdown.
Norm:
Something that'll allow us to have something to go on and you know exactly what we're talking about here. Sure. Thanks.
David:
Yeah, project intro for us newbies would be appreciated. That being said, I don't, I don't guess I need, the other directors to, weigh in on on their druthers as much as I would. I think I speak for the rest of the directors. Said our preference would be to, take you up on your offer. Provide that intro for the package, work through the numbers, work through the language. Clean it up, if you will and adding the, nuance to some consultation with bond counsel would be just that much closer to a definitive number and a package that we could take action on in September. Certainly. Seeing the odds we'll look at that in September at the regular meeting. Thanks, Jim.
Jim:
Very good. Thank you.
David:
Moving on to item 5G - this is a consider to consider Taylor Morrison inclusion, Jim?
Jim:
And this will not be up for action tonight. we wanted to bring this to your attention. This is a cleanup matter over in Legae. The portion that needs to be included is the former Lagae Road right away. So when the Lagae folks came to the district in 2013 and petitioned for inclusion, there was a group that had controlled the property, brought it through and was accepted for inclusion, but they exempted, the Legae road right of way at that point in time because it was under control of the city, and it was just felt that it would be cleaner to deal with this once the right of way was vacated and turned back over to an owner. That owner is now Taylor Morrison, they own that property and fee title. And what we now want to do is clean up this area so that the entire piece of Lagae Ranch, as we previously know it, is included in the district.
So and you see the legal descriptions and the exhibits here, and notice that it's, looks just like a road. That's the portion that's being proposed for inclusion in the district right now. There will be no water coming with this. The water's already been dedicated, and Taylor Morrison has agreed to pay all cost and have deposited with the district $7,500 to that effect so far.
Our next steps in this, with your concurrence or acceptance, if you will, of the petition for inclusion, is we will schedule this for a public hearing. At the next meeting, we will advertise that public hearing and then you would open a hearing that night. Anybody can speak to this issue, typically nobody does speak. So then you then just close the public hearing and you can take action as you see fit on whether to include the property or not.
David:
Very good. I would move then that the board accept the petition of Taylor Morrison for the inclusion of the property into the district's boundaries to authorize the execution of the proposed inclusion agreement and schedule that public hearing on the petition, pursuant to CRS 32-1-401 PRINS 1B to be noticed for and conducted at the September 2018 board meeting.
Is there a second?
Robert:
I second that motion.
David:
There being a motion on the floor, as previously stated by McEntire, is taken by, Director Merritt. Is there any further discussion? Hearing no further discussion.
Board Voting All Speak:
Please indicate when called upon your approval with a yes or no on the motion Director Crew. Yes. Director Merritt. Yes. And Director Frohman. Yes.
Director McEntire. The affirmative with a yes, motion passes. Thank you Jim.
David:
Item number six, this is the, communications report from, COMEGA One, the, communications specialist. The board's retained, recently for those that don't know, this gentleman, first impressions. You know, he. Well, Ken Smith, you have the floor.
Ken Smith, Comega One, Communications consultant:
Thank you. good evening, directors. My name is Ken Smith of COMEGA ONE and for those of you who don't know, COMEGA ONE is an acronym for Community outreach, media, elections and Government Affairs and it is a pleasure for COMEGA ONE is an acronym for Community Outreach, media, elections, and Government Affairs under one umbrella. And there you have it.
So let me start by extending a warm and sincere thank you to the board for, calling me back to the metro district. As most of you, some of you know, some of you don't know, I was the communications director here for the period spanning 2009 through 2013.
It was a particularly tumultuous time in the district's history. And, long story short, I love the community. I love the people of this community. And, I'm really glad to be back. I in terms of my report, we have executed a series of refinements to the website, some content, some minor design refinements that hopefully increase transparency and make some documentation in terms of budget transparency notices, that sort of thing, available to the public that weren't previously posted.
Your respective, photoshoots have resulted in the business cards that you see before you. I apologize to, directors, Crew and Merritt, the printer has unfortunately printed your business cards a little lighter than they should be, and has graciously agreed to reprint them at no additional charge. So, for whatever that's worth, your bios and updated, photos, your photos and updated bios, I should say up here, in a new configuration on the Metro district's web, home page of the website.
We have launched the district's monthly videotaping of regularly scheduled, scheduled board meetings. This is the fourth month. All of the previous three board meeting videos are available for viewing on the Metro District's website via the board meeting page and before I forget, I want to introduce Terrence Lovett. It was the man behind the camera here. His colleague Corby Wise was not able to be with us, but I've known these guys for a long time, and we're really fortunate to have them with us.
For the first time in the district's history. Tonight serves as what I will call the soft launch of our live video streaming service. So these board meetings moving forward are live streamed and also available on the Metro district's homepage. So just a couple of things about that. From a technical perspective, everything works out tonight as I think it will.
We'll go for a formal, launch for the September board meeting. This is kind of a soft launch. We really haven't broadly advertised it or promoted it. Just want to make sure that all the technical glitches that could arise have been, preemptively solved before next for the next, next month's board meeting. Those, wishing to view the video stream or archived video of previously regulars previously, previous regularly scheduled board meetings,
may do so from a desktop or any other device, by visiting the Metro district's homepage. No scrolling required, you can click on the district's homepage that features a a, kind of a pale yellow or rust colored horizontal bar. You click on that and you immediately start watching the live stream.
I'll be coming back to you all in writing, with a series of recommendations on a range of, future communications issues that I think we need to tackle. We'll do that in writing this week, and we propose those for your consideration. With that, having been on the job for three weeks, that's all I have.
David:
Nice job Ken and welcome aboard. Thanks for the report tonight. Any comments from the board?
Robert:
I'd like to second that, welcome aboard. Appreciate all your hard work.
Ken:
Thank you.
David:
Very good, thanks. Item number seven. This is the Open space Manager's report, Craig?
Craig:
Thank you. I'm very happy to report that we fulfilled our irrigation audit contract with Resource Central. Those are the people that administer our Slow The Flow program. Demand for the service was the highest it's ever been and, we sold out of. I extended the contract for some additional audits. We sold out of those in less than a few days after we extended it.
We now have a waitlist of 49 residents for 2019, which is a great place to be in because we can enter into the contract with full knowledge that will be able to fulfill it. I think this year the weather patterns and high water bills as a result of the weather patterns got everybody's attention. So I thought that was just a great showing by
the community. HOA 2 is painting and repairing fences in the Bramble Ridge and Briarcliff neighborhoods. They've asked us to clear vegetation on our property from the fences to facilitate the operation. A lot of our open space, has not only, native grasses that need to be string trimmed along the base of the fences to access them, but also a lot of plant material.
So we're doing that in House and Bramble Ridge. But we're contracting out the work for Briarcliff, as there's a significant amount of gambling to prune back and the terrain is very steep. So it's a very challenging, 300 yard brush drag for the guys that we've contracted with. I've been working with the Castle Pines Library on ensuring proper maintenance of the Xeriscape Garden that was funded by the Parks Authority.
I meet with representatives of the library and the maintenance contractor several times a month to keep things on track, and I've included a picture in the report of that garden. You're looking in the foreground at Dog Tough Grass, which is, being touted as one of the best replacements for bluegrass, bar none. It's, a cold hardy, centipede grass.
And, I'm sorry Bermuda grass. And it's extremely, tolerant of traffic and drought. I've been growing this in my yard now for three years, and I water it 2 to 3 times a year and keep it that green. So it's a solution to a lot of water issues, especially with bluegrass. And it's being touted very heavily, within the green industry.
And, it was actually selected by the Colorado nursery associations and CSU as a plant select for 2017. It's that good a product, behind that on the hill is buffalo grass. So we've got two different turf alternatives that use hardly any water here. So that was the whole idea behind the Xeriscape garden. We've got a lot of interpretive signs out there showing you that, yes, you can have a zero scape that looks great and hardly uses any water.
Other than just to establish and minor maintenance, I've ordered a new replacement ladder for a piece of playground equipment in Coyote Ridge Park. It was discovered during routine inspection that the original part had become rusted unsafe. So we removed it, and we've roped off that section of that playground equipment while we await delivery. We should have that in the next couple of weeks.
Our account representative for our mowing maintenance contractor is given notices leaving Bright View after working with me for the last three seasons. Bright View is in the process of getting us a new account manager. I met with their branch manager manager last week to help facilitate the transition. I've been assured that, the quality of workmanship will remain at the level that it's at and even get a little bit better, because I pointed out a few things in the meeting that they've been missing
So hopefully we get those corrected. I'm currently working with the landscape architect on designs for the 2019 landscaping projects. these will include the entry to Tapestry Hills at Rock Crescent, Buffalo Trail, the entry islands at Stone Mount Drive and Stone Dale Drive at Monarch Boulevard, and a bit on the north end of Monarch Boulevard across from Cattle Rider way, which is just sort of declined over the years as you can see it right now, most of the plant trails dead, there were about five trees.
There's one left and some really old mulch. So, we're targeting that because it is a bit of an eyesore up there. And then other than that irrigation, maintenance and repairs, as well as in-house tree and shrub planting projects continue. I'd be happy to entertain any questions that you might have.
Denise:
I have one quick question. You talked about the grass, what was the the grass you only water twice?
Craig:
The Dog Tuff Grass, Dog Tuff, look it up online. Okay. You'll be fascinated. It only grows by plugs. You can't seed it. You can't sod it. So you have to buy a tray of plugs and plug them out. But one tray covers about 70 square feet. I started with one tray and then just made a whole bunch of cuttings.
And now I've got it covering about 300 square feet in my backyard and I just love this stuff. It's super soft, you don't have to mow it. Another bonus. So it's going to change landscape. What's that? It is. And it's actually been it was introduced over ten years ago by horticulturalist Kelly Grumman's up north. He worked with it for ten years, growing it in Denver, in a very, very harsh conditions, to be honest with you, clay soils, minimal irrigation.
It was actually, very successful there. And he, along with high Country gardeners.com, which is down in Santa Fe, have been pushing this product. And like I say, CSU in the garden centers of Colorado thought it was such a great thing that they decided to to bring it to the public's attention by making it a plant select last year.
So this is a game changer. It's a huge game changer. We just need to get people to start doing it. Interestingly enough, right on the corner of, Monarch and Yorkshire down at the south end there, you'll notice an area that's been roped off, that HOA is applying for a, Xeriscape landscape replacement rebate by doing a patch of dog tough grass of about 2000 square feet, and it's been plugged out about eight weeks ago, and it's coming in very nicely.
So it'll be a great demonstration site for the entire community to have one out in the open like that, that people can see, as well as at the library. Any other questions?
David:
I don't think there's any other questions, Thank you Craig.
Craig:
Thank you.
David:
Nice report, number eight manager's report Jim?
Jim:
Well, if you're if you're not tired of hearing from me yet, high service pump number two at the water plant. This is a pump that went down back over Memorial Day weekend. as I mentioned last month, we'd finally been able to get the pump out of the treatment plant. It had been sent off for repair.
Once they got the casing open, we were not able to repair that pump. there's a replacement on order. whatever land go in the system, it chewed up the impeller. It broke the volute. Motor is still good. But the pump itself is is shot. It's trash. So our contractor is back on site right now getting ready to start setting the draft.
Piping and anticipation of this pumped in coming in, if not the end of this week. First part of next week, our water production, while we still sold a lot of water, we were not hit hard like we were in June. there's nothing like rain in the middle to end of July and 70 degree days in August, to help us survive.
But as you can see. And what I'd like to point out is if you look at the June 1st versus August 16th, the exact same wells who are running these wells when they're turned on. While there is some fluctuation through the variable frequency drive, we tend to try to maximize the production out of these wells, because if we bring another well on mid-month, we get hit by IREA demand charges or Xcel demand charges.
Most of ours are in IREA, and you get dinged for that for the entire month. So my guys work diligently. They know when the billing cycle starts and when it ends. We try not to turn pumps on mid-month, but just see what happens to our production. Exact same five wells we're running June 1st, 2240 gallons per minute being produced August 16th, 1836 gallons -
Roughly 400 gallons a minute, or about one wells worth of production lost over that period of time. And this is this is what we struggle with year in and year out, as those production rates drop off from the first of the year till we get to the irrigation cycle, and then they're able to start to turn wells off and let them rest over the winter time.
So that next year we start to produce water out of them again. Chatfield reallocation project. we are well underway with the Platte River. Environmental mitigation. I listed out, a number of the items that are included in that. we call this the Platte River because it's typically or the last dam project was a low along Plum Creek.
This is really all along the channel that comes in and really produces the water into Chatfield. And this is almost all habitat mitigation. It's not down in the river itself. It is it's up on the banks. And I say it's mostly upland, revegetation and then our recreational components, September 5th, the day after Labor Day, the, Marina will be shut down for the season.
We'll just start, demolition of the existing Marina and the restaurant. All that's hauled up out of the water. There's a whole bunch of dredging that will take place. And then by next, before next Memorial Day, there will be a brand new Marina set in a new location. This project ended up requiring this new Marina because the Corps of Engineers would not sign off on the existing Marina, it considered it to be a dam safety hazard if it was to break loose from its moorings.
They wanted to see a whole new modern facility be installed, and so that's become part of those costs in the project. There's not additional cost, but it's an expensive portion. This is almost $8 million of the total project is rebuilding this Marina. Lagae development, filing to a town center, which is a centuries communities they continue to install wet utilities, water and sewer and then Meritage is there ready to start to go vertical with their building down there.
They've paid the tap fees for the first single family model home, and have indicated that we will very shortly see tap fees for the first two duplexes for those models going in. I suspect once they get models up, we'll start to see those tap fees come in fairly quickly. Development on the southwest corner of Lagae and Castle Pines.
As I mentioned last month, we've seen that first submittal through there. We've not seen any response to our review comments. I really have no update on that project. And on PCWRA, I think we fairly well walk through my report early on for the month of July, we did produce, 108 million gallons of water. Our well production was only 104, so we were taking some out of storage as well as our dates do not always match up exactly when you're producing 4 million gallons a day on hot days, 3 million gallons a day on average this time of year.
If the if the dates and times don't line up, the production versus the billing amount will not line up. So it's not that we've made water magically, it's just an accounting issue there. And then the golf course used $13 million, 13 million gallons of reused water. And our wastewater flows for the month of July total just over 17 million gallons.
And as you can see from my little graph, this July did not quite meet July of 2016, but it certainly outpaced the July of 2017. And both of those Julys were fairly wet. And, it'll be interesting to see how we come in and just see how dry August 2016 was. I suspect, this August will shoot somewhere between the top of that blue graph and the top of the green graph will outpace last year's, but not like we did in August of 2016.
And with that, if there are any additional questions, I'd be more than happy to answer them.
David:
Thank you. Jim. Director's, any additional comments questions? Concerns? No. Hearing none. Jim. Thanks. Item number nine is, legal counsel report. Mr. Seter.
Kim:
Thank you. Board. this is our first report to you, so it's kind of preliminary. We did meet with Joan and got a little bit of a download on the things that were in process, and that's where this status report comes from. You'll note that the report has matters listed in bold and then the status of that matter and then where it says action from here on out, we will recommend to you actions.
Most often it's going to say whatever the staff asks you to do, that's what you would be addressing. Because a lot of the things we do get completed and then they may not come to you for several months. But each one of these items will stay on here and the status will change until the matter is completed.
And then it will note that at the next board meeting, it's going to drop off. So you'll have a running list of all the legal work as it goes on and so will we. And the delays and whatever else happens. So with regard to this status report, and generally, I will not go over each of these items because it's in the report.
If you want me to go over them, you just tell me so. If you want us to change the way the reports are written, let me know we'll do that. I already have a request that on easements and things that have to do with real estate to provide maps. So next month, you'll have the maps of the easement.
You'll have a map of the inclusion area and I think that's about it. There may be one other map that will will include, but for today, the first item you note is the Legae sanitary sewer access easement that's now on hold. We did draft the easement, sent it out, and then discovered that the title work I was looking at was old.
And there's a brand new owner. So we'll bring that back next month when we have that new owners sign off on the document. The second item is the new director, Oaths of office. We followed up on that. All of your filings were completed and you're ready to go. The third is the Parks Authority representative. And we do ask that you ratify, Denise as the district representative and Mr. Merritt as the alternate tonight.
So when we do recommend action, I'll provide a proposed motion for you, you're welcome to use that motion or not. I know one was used tonight already, so that was nice to see many of you read the report. The next item on the report is the Plum Creek Water Reclamation Authority agreement that Jim has told you about, so that status will change next month as we bring you a final agreement.
The next item is the Taylor Morrison Legae right of way inclusion. Jim told you about that. Next month, we'll schedule the public hearing the status report will change to explain how to handle that hearing and what you're actually voting on, and then we'll complete that matter. The other three items on the list, I'm not up to speed on yet, but they're here.
And next month there will be something filled in there. If there's questions, I can answer them now, and if not, we'll address them next month.
David:
Thanks Kim, and thanks for bringing, to the attention of the entire doggone room that I missed that motion necessary to ratify, the, action taken on the park Authority board. With that, is there a motion, or would the directors be all right if I make a motion to ratify the recent appointment of Denise Crew and Robert Merritt as the alternate to the Park Authority board?
Is there a second?
Norm:
I second that.
Board Voting All Speak:
Hearing none. And, sending our or, appreciation to Director Crew and Director Merritt for offering to do that additional duty, signify your vote by a yes and to approve or no to disapprove. Director. Crew. Yes. Director. Merritt. Yes. And Director. Frohman. Yes. Director. McEntire. Yes. Motion passed. Thanks, counsel. Welcome.
Kim:
If there are no other questions, that's it from me?
David:
None. Thank you. Item ten. Director's matters. Are there any matters that we have not addressed as part of the regular meeting? any director would like to bring forward for discussion consideration at this point. Director Crew. Nothing. Thanks. Director Froman and
Norman:
Jim, have you, reviewed the, rebate program since the new types of clocks have, come out in the last 2 or 3 years? development that may be occurring.
Craig:
Actually, I can answer that. I have I keep up.
I keep up with the latest information on irrigation technology and our rebates, our current, everything, all the rebates. The office staff knows what we're rebating on and what we're not, especially when it comes to ET controllers, because that's the only thing we're rebating we're not rebating standard controllers. If they have any questions, they bring them to me and I verify that they are acceptable.
But we're rebating all the latest stuff out there, the Rocio, the sky drop, all that kind of stuff
Norm:
Is those are pretty significant. And water savings are
Craig:
Absolutely. Basically, for those of you who aren't familiar with air controllers, it's a it stands for Evapo Transpiration. What they do is they take a weather reading, either on your site or more likely, with Rocio and Sky drop from a weather station.
Weather stations are spaced out throughout the metro area, 6/10 of a mile apart, about a kilometer apart. And so it gets a fairly accurate reading of what's going on in the weather there. You dialed in a little bit more with rain sensor because you know, it could rain on one side of the street, not the other, but what it does.
You program into the controller. What kind of plant material watering, in other words, bluegrass lawn shrubs over here. Perennials over here. Drip irrigation sprays, pop ups, whatever. you you then put in the slope. It's 20 degree slope. 30 degree slope. It's flat itself facing north facing. Whatever. So you put in all the parameters that the clock needs to understand.
Then the clock will automatically replace the amount of water that it believes your plant material lost yesterday. So it's a very water conserving thing. Typically IT controllers can reflect depending upon how miserly you were to begin with, with your irrigation water, which most people aren't. You generally recognize about a 30 to 40% savings in your irrigation. So it's a significant thing.
We do get quite a bit of rebates, and which is nice to see. Thank you.
David:
And I don't have any any more to add to the matters of the Directors tonight. That being said, we'll move to item number 11. Item 11 is the final public comments, portion of our meeting. We have a attendee, Deborah Mulvey that has asked to speak, tonight, specifically on item five of the agenda, which was a consideration of the Plum Creek Water Reclamation Authority expansion project escrow agreement.
Deborah, you have the floor.
Deborah Mulvey, Castle Pines Resident:
Thank you, Mr. President. My name is Deborah Mulvey. I'm at 12390 Serena Court. I speak as a private resident. I'm also a member of city council. And in that regard, I do, tend to read a little bit more of the public documents than most people might. And the reason I wanted to rise and speak about this item was because I may have heard it wrong, but there is a reference to, some city action, perhaps some development that may be occurring.
And I wanted to clarify that it's my understanding at this juncture that there is no, economic development that's actually planned at this juncture, that the only development that's going on right now within the district boundaries would be the leg road area, and that's primarily known as town center. And that as, Mr. Nikkels astutely referenced with respect to Taylor Morrison, the process for that involves referral comments.
And so what occurs is during the plan development stage, when the developer wants to plan the entire area of Legae road from Happy Canyon all the way up to Castle Pines Parkway, there were referrals that were sent out to the district and that would have happened within the last five years. And then any time there was a site improvement plan or an, more refined plan, I won't get into the specific vernaculars of it.
But for example, when they put in the Lennar Homes or the Meritage Homes for the different planning areas such as six, seven, eight or Town Center, there are additional referral comments and the city council and Planning and Zoning Commission consider all of those each time they come up. Those are all public documents, and they're available online or by contacting Sam Bishop, the community development director, as part of those.
Then, I would urge you, if you're curious about going back, to know what was considered in terms of the water usage or the anticipated usage or the zoned usage for the different planning areas that are in that entire location between Castle Pines Parkway and Happy Canyon along Legae Road, whether it be zoned for commercial or residential or something else, that's all within those documents.
And the city at each juncture in the planning and development process would have reached out. And it did to the metro district for referral comments. And so for example, when the Lagae, south and Lagae north subdivisions came up, Castle Pines North Metro District responded, in late March of 2015 that there was sufficient supply. I actually had the letter on my phone.
Believe it or not, I didn't anticipate this would come up that, prior to approving the inclusion of that entire area within this district CPNMD determine that it is feasible to extend water and sanitary sewer service to the property using the public improvements proposed to be constructed by the applicant, which is the developers, pursuant to MDS rules and regulations, and then the letter went on to say that
Apart from the Denver Basin aquifer rates, which are loans sufficient to meet CPNMD’s demands, whatever renewable water rates there might be, would also supply the area. So there are documents like that that were considered by this board that may be relevant to your inquiry for whether or not the sanitary sewer system or the wastewater system that's being proposed was always considered to be a part of what's needed here, whether it's needed for the golf course, because that wastewater does supply the golf course.
So I just wanted to share that they are all public documents. I just happen to have access to them, perhaps more often than most, or I happen to read them more often than most. And in response to what Mr. Miller said about the dog turfgrass and your inquiry, if there's a rebate for it, I'm going for it. I just planted it this year, and it is as resilient and as cushy and nice looking as he says.
So if you have an opportunity to use it, I would totally encourage it. Thank you.
David:
Thank you. Deborah,
Jim:
Can I add just a little clarity? The letter that was quoted from is a will serve letter or a letter of availability, and it talks to extending services into the community. It does not address any shortages. There are two things that we need to, to tell the city is do we have inadequate water supply, which we highlighted that under our current water rights, we consider that to be adequate, doesn't mean that it doesn't need replacement in the future and that we could extend sewer service.
If we're going to refer back to documents, I would refer you back to, and I'm happy to provide you the inclusion documents for Lagae, where the issue of additional capacity PCWRA was addressed. And that goes clear back to 2013 early 2014 timeframe.
David:
Thank you. Jim. Alright. We don't have anybody else on the, sign in sheet that indicated that I may have met that wanted to speak.
It has been a bad habit of mine to offer up the opportunity. Last but not least, for anybody that may have changed your mind during the, process of this meeting to speak. Did we miss anybody or is there anybody that wants a few minutes at the podium? All right. Well, thank you all for coming. We appreciate your attendance.
We appreciate your support, your interest, the camaraderie that we have amongst ourselves and all the good things that we're going to accomplish together. with that being said, I close the public comment section and, looked through the board to, or your director to make a motion for adjournment. Do we have a director that wants to adjourn?
Denise:
I make a motion to adjourn.
Norman:
I second that.
Board Voting All Speak:
We've got a motion on the floor from Director Crew to adjourn, seconded by Director Froman. if there's no further discussion on the item, indicate your affirmation by saying yes when called upon. Director. Crew. Yes. Director. Merritt. Yes. And director Froman? Yes. McEntire has the affirmative. Yes as well. Motion passed.
Meeting adjourned.