Special Board Meeting re: Proposed Inclusion w/ Parker
Transcript
SPECIAL BOARD MEETING AGENDA
Board of Directors Meeting
Monday, February 8, 2021, at 6:00 p.m.
7404 Yorkshire Drive, Castle Pines, CO 80108
Due to COVID-19 restrictions, CPNMD residents and property owners will need to Zoom in to participate in this special board meeting. To Zoom in, sign up any time before 10:00 a.m. on the morning of the board meeting and follow the step-by-step instructions at cpnmd.org/cpnmd-zoom-meeting-sign-up.
- Welcome. Call meeting to order. Pledge of Allegiance.
- Roll call. Determination of quorum. Disclosure of potential conflicts.
- Presentation of the proposed Inclusion (merger) of CPNMD’s water & wastewater utilities with those of the Parker Water & Sanitation District.
- Directors’ questions and comments.
- Public comment period via Zoom (three-minute maximum per person).
- Directors’ questions, comments, and consideration of proposed Inclusion.
- Adjourn.
Describer:
The video starts on graphic with a white background and forest green letters which says “Castle Pines North Metro District Board Meeting February 8, 2021”. The meeting opens on a shot of all board members present. There is also a T.V. screen showing the Zoom meeting for people joining the meeting via Zoom.
Board President David McEntire:
Good evening everybody and welcome to the special board meeting. At this time I would like to call this meeting or hearing to order and ask that you all join me in the Pledge of Allegiance.
All Speak:
I Pledge allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all.
David:
Thank you for that. I'm going to conduct roll call. And as I call your name if you would please indicate your presence and disclose any potential conflicts if any. Director Lewis. Chris, we can see you. Can you hear us, Director Lewis?
Describer:
Chris Lewis is joining the meeting via Zoom, but he seems to be having microphone issues because he is silent.
David:
Let's keep going.
Board President Chuck Lowen:
Director Lowen. Present. No conflicts.
Board Member Director Denise Crew:
Director Crew. Present. No conflicts.
David:
Director Robert Merritt. Robert. Well, Director McEntire is here. That establishes a quorum. No conflicts. Tonight's presentation is of and concerning the proposed inclusion of Castle Pines North Metro District water and wastewater utilities with those of Parker Water and Sanitation District. At this point we have two presenters that are going to make a presentation first. Legal counsel for Castle Pines North Metro District. Kim Seter, Kim are you online?
Legal Counsel Kim Seter, Esq.:
I am Mr. Chairman.
David:
Thank you very much for joining us. If you would please bring us up to speed on this inclusion. You have the floor.
Kim:
All right, board. you know we've been working on this for a very long time. And I sent over to you last week a near final inclusion agreement. Which is required as part of the process of consolidating the systems. The purpose of that agreement is to provide the processes and the timing and the intended conclusions that we hope to reach at the end of the process.
Section one of that agreement that you hopefully have in front of you contains Parker Water and Sanitation District's promise to consolidate the systems if the voters in the district approve. And to thereafter operate the water and sanitation systems. Section B one through six contains. Conclusion. I'm sorry, conditions of inclusion. And most of those are practical matters like conveying the water pipes, the wells, the sewer lines and other things required by law. Including conveying over the permits to Parker Water and Sanitation District so that they can operate the system.
Section one C is very important to the people listening because that's the section that requires an election. None of this will move forward unless the voters in Castle Pines North Metropolitan District approve of doing so. Then section D talks about that there will be no consolidation without voter approval. But we'll continue to try to work together to come up with some other arrangement for consolidating if that's possible.
Section Roman numeral two of the agreement talks about financial matters. As you can imagine it's costly and difficult to combine these systems in that they have to be repiped and connected to one another. So that section confirms that Parker Water and Sanitation District will serve Castle Pines North customers on the same basis as it serves its own customers.
Once this consolidation is completed. It also talks about how we will convert the revenues of Castle Pines north over to Parker Water and Sanitation so that they have funds to provide those services. And then finally you'll hear later on from Mr. Steve Hellman from Parker Water and San who will discuss some of the benefits that the people in Castle Pines North will receive financial benefits from this process.
Section three of the agreement is entitled Inclusion Fee. We utilize that nomenclature to come up with a way to deal with the financial costs of combining the systems. That includes construction and many other items. So many costs and expenses that are going to be incurred of connecting the systems will be provided, that are. So they can be provided by Parker.
Water and San have to be covered by the two entities, but mostly by Castle Pines North to make the system work. The inclusion fee consists of two parts. The first one is design and construction costs to actually physically connect the systems. And the second is the cost to obtain a portion of Parker Water and Sanitation District's renewable water supply for the benefit of Castle Pines North.
And then finally we have Roman numeral section four. Which is simply addressing Castle Pines North's employees. And ensuring that they will have the opportunity to continue to hold their jobs only now under a new entity Parker Water and Sanitation District. And with that Mr. Chairman that's an overview of the agreement. And I can feel the questions if you'd like for we can move on to Mr. Hellman.
David:
Thank you Council. I don't have any additional questions for you. The report is, and the draft inclusion. All 56 pages look to be in order. And as we get closer to the election if there's anything substantive that would. Change and be sufficient grounds to communicate with the residents. I know that our communications team is prepared to do that with your direction. Colleagues, Director Crew, Director Lowen. Any questions for council? Hearing none from my colleagues. Hearing.
Describer:
Chris is briefly speaking on Zoom, but it is inaudible.
David:
Hearing none. Chris, do you have a question for council?
Board Member Director Chris Lewis:
No, I'm good. Thanks David.
David:
Okay Jim. Anything?
District Manager Jim Worley:
No sir. Thank you.
David:
You're good to go Kim, I know that you're going to hang with us. Should there be something that we come across that you can help us with? And we sure appreciate you being here this evening. At this time I would like to introduce Parker Water and Sanitation District. We have Steve Hellman who is the CFO of Parker Water and Sanitation District and the district manager Ron Redd, who are joining us this evening gentlemen.
Steve Hellman Parker Water and Sanitation District:
Thank you, David. Can everybody hear me? Yes. Yes. Okay, I'm gonna share my screen now.
Describer:
On screen.
There is a white screen that says “Parker Water & Sanitation District” to the left side of the screen. The right side of the screen says “Castle Pines North Metropolitan District.” And underneath that it says "February 2021 Board of Directors.”
David:
Hold that mic close, please.
Steve:
Okay. So thank you for having us here tonight. In addition to myself and Ron Red we're also joined by Maleia Good. She is our administration manager. And she's been a key part of this study from the very beginning. So just to give her a little kudo there. We will go through this presentation tonight and then turn it back over to Mr. Chairman. And take it from there. But we believe that we've developed a good plan which provides benefits to both utilities.
Describer:
On screen.
UNIFICATION STUDY | GOALS & OBJECTIVES
Two columns compare the goals of the Castle Pines North Metropolitan District Board and the Parker Water and Sanitation District.
CPNMD BOARD OBJECTIVES
Core Objective Number 1: Securing our community's renewable water future wisely and at less cost than the voter-rejected plans of 2016 and 2018.
Core Objective Number 2: Ensuring that the people of Castle Pines will continue to enjoy clean, safe, reliable, on-demand drinking water and wastewater treatment services in perpetuity at the lowest possible cost.
Core Objective Number 3: Ensuring the people of Castle Pines will continue to enjoy clean, safe, reliable stormwater, parks, trails, and open space services in perpetuity and at the lowest possible cost.
Core Objective Number 4: Maximizing efficiencies and economies of scale in all service areas.
PWSD GOALS
Transparency and community outreach throughout the process.
Benefits of any final agreement are clearly demonstrated and identified risks are mitigated.
There should not be a net cost to PWSD customers for the inclusion or consolidation.
Identify and consider strategic opportunities for regional solutions.
Document the process and establish a roadmap so it can be used for potential future opportunities.
The Parker Water and Sanitation District logo and the Castle Pines North Metropolitan District logo appear at the bottom of the slide.
Steve:
The joint effort began in December of 2018. And was meant to explore the possibility of Parker assuming responsibility for providing water and wastewater services to the Castle Pines North Metro District Service Area. The first step in our process identifying goals and objectives of the study were developed by each of the utilities and approved by the respective boards. You'll see Castle Pines North's objectives on the left side and Parker Water’s on the right.
We actually believe the study addresses all the goals and objectives tasked to us by the respective boards related to the water and sewer services. And since December of 2018, routine progress updates have been provided throughout the process to both boards.
Describer:
On screen.
THE STUDY LOOKED AT...
Joint Districts' review and analysis of the following items:
Legal.
Water Rights, Water Demands.
Water and Wastewater Treatment, Distribution and Collection.
Water Quality.
Financial – assets, liabilities, debt, utility billing and collections.
Engineering and Hydrology.
PWSD's Renewable Water Project.
CPNMD Water and Wastewater Condition Assessment.
A color-coded map of the Castle Pines area appears on the right side of the slide, showing the boundaries of multiple surrounding water districts and municipalities, including Castle Pines, Castle Rock, Lone Tree, and Parker. Major highways are also labeled on the map.
Steve:
So early on we detailed some of the critical issues the project would have to, have to address including, but not limited to what you see on the page here. Legal review of the preferred method of combining the utilities and the legal requirements needed to get there. For example, would this be a merger and inclusion or some other method to combine the utilities?
We needed to review existing contractual agreements and determine if the current agreements could be assigned or would they be, need to be renegotiated? Both boards came to the conclusion pretty early on that the inclusion process with Parker Water would be the preferred method moving forward. And actually the inclusion process is something that we do on a regular basis. And actually provides the residents of the area to be included with an actual choice or vote in the decision.
So that's a good thing. We had several discussions around the water rights owned by Castle Pines North. And the reliance on them as well as the use of those water rights for hydraulic modeling purposes. We then took that and did engineering reviews. And determined a few options of providing service. And an actual plan was developed from that. We also did a condition assessment of Castle Pines North existing infrastructure. And built those results into the plan from a financial standpoint.
We looked at the improvements needed, needed to interconnect to systems participation in Parker Waters long term renewable water project purification capacity at house water purification facility. And actual continued reinvestment into the Castle Pines North system. All current debt and liabilities of Castle Pines North are extinguished. And the remaining cash is transferred to Parker on day one. Those are the things we looked at and happy to say that none of them presented us with any game stoppers. So let's look at some of the details now.
Describer:
On screen.
POTABLE WATER SYSTEM INTERCONNECT(S)
Primary Interconnection.
2-miles of new 18-inch pipe.
1 new 4.5 MGD pump station.
Piping to RH Reservoir.
A map of the Castle Pines service area appears on the right side of the slide. Existing potable water lines, proposed pipelines, pressure zones, roads, district boundaries, treatment plants, water pump stations, and pressure reducing valves are identified using a color-coded legend. The map also labels the Rueter-Hess Reservoir, the optional backup PWSD system connection, the PWSD system connection option, and the proposed 4.5 MGD pump station.
Steve:
Castle Pines North current demands are satisfied by a water treatment agreement with Centennial Water and utilizing their Denver Basin wells to meet supplemental demands. Wastewater flows are treated at Plum Creek. With some of that return flow being sent to the golf course for irrigation, and the remainder discharged Plum Creek and recaptured in Chatfield. Parker's water intent is to continue to utilize the agreements. With Centennial and Plum Creek in both the short term and long term.
Parker water will begin engineering design and construction of a new pump station and interconnect piping actually under, under Interstate 25. The pump station and multidirectional pipe would allow for finished water from Centennial when it's available to be used on either side of the highway and also allow the delivery of finished water from Parker Waters purification Purification Facility back to meet Castle Pines North demands when it was needed.
You can see from this slide the approximate location of the interconnect on the east side of the service area with the dotted blue lines. And then there's also a new pump station that would be part of that. We also have to construct a new pipe along Hess Road from Parker Water's purification facility, as well as expand the capacity of that plant.
But that would be constructed and we already have those included in our water capital improvement program moving forward. Additionally, on the north side of the current service area there's a second interconnect that isn't built into the numbers as of right now, but it could provide future additional redundancy. This would be more critical with the interconnection with Centennial Water. We're no longer available. But again, we have talked to Centennial Water and they are willing to continue the agreement if this inclusion is approved by the voters.
Describer:
On screen.
PARTICIPATION WITH THE PWSD FARMS PROJECT
11,100 AF project.
Total cost of base project: 603 million dollars, in 2020 dollars.
Potential additional partners.
A map appears on the right side of the slide showing the proposed PWSD Farms Project pipeline route extending across multiple counties. The map includes a legend identifying the proposed pipeline, reservoir locations, county boundaries, existing water districts, roads, rivers, and municipal boundaries. An inset map highlights the overall project area. The Jacobs and Parker Water logos appear in the lower right corner.
Steve:
So another thing that's part of this inclusion is the long term renewable water project that Parker Water currently has. Basically we already own the water rights. And have identified a project to annually move over 11000 acre feet of renewable water from Logan County in northeast Colorado back to our reservoir. This plan supports Parker Waters goal of a 75% renewable supply by build out. Property infrastructure and permitting required to get the water to Rueter-Hess it’s currently estimated to cost about $600 million and is currently scheduled to be online in 2040.
Based on our hydraulic modeling as part of this project, Castle Pines would need about 10% of that total yield to serve their requirements. While there is limited capacity currently available in this project for additional partners. We are actively seeking additional partners during the planning phase. This allows us the ability to upsize the project and help reduce the overall cost to all Parker Water customers going forward.
Describer:
On screen.
FINANCIAL ANALYSIS – RATES/FEES/CAPITAL
ASSUMPTIONS FOR FULL INCLUSION SCENARIO
PWSD rates and fees implemented in 2022.
Payment in lieu for CPNMD Mill Levy revenues to be used in 2022 through PWSD Mill Levy 2023 and thereafter.
Capital reinvestment is paid in cash every year.
CPNMD current debt is paid off prior to the inclusion.
Annual revenue increases of 2.75 percent through 2029 and 3 percent thereafter.
34.8 million dollar inclusion fee in the form of cash or surcharge from CPNMD.
Steve:
As part of the financial analysis we looked at a cash in cash out approach. When considering this inclusion it was important to ensure that Castle Pines North customers were covering the projected cost of a possible inclusion. And also that Parker Water customers were not subsidizing this agreement if it were to move forward. It's also important to Castle Pines North customers in that Parker Water is able to provide lower bills on day one for the majority of customers while maintaining its existing infrastructure, providing access to a long term renewable water supply, and establishing the interconnect and additional treatment capacity that will be required. All with what we consider reasonable annual increase is to ensure sustainability.
Some of the assumptions is that Parker Water’s rates, fees and mill levies will go into effect on day one. We have the model which has an annual increases of between 2.75% to 3% included in the analysis. It's important to know that this is in line with Parker Water's history over the last several years. And also match our current projections going forward. As we stated previously all of Castle Pines existing debt and liabilities are settled prior to the inclusion. And approximately $34.8 million in cash reserves would be turned over to Parker Water on day one.
Describer:
On screen.
FINANCIAL ANALYSIS – CAPITAL
INVESTMENT IN THE CPNMD'S SERVICE AREA
A table lists proposed capital investments in the CPNMD service area. Columns include Project, Entity, Source, Cost, Description, and Time Frame.
Projects listed include:
AMI Meters and Communication Tower.
Centennial Pump Upsizing.
Farms Water and Upsize Costs.
Water Treatment Facility.
Treated Water Pump Stations.
Castle Pines Parkway Water Main.
Wastewater Lift Stations.
Interconnect RHWP Capacity.
Farms "L" Water Project.
Capital Reinvestment.
At the bottom of the table, the total capital and reinvestment cost is listed as 192 million, 504 thousand dollars.
Steve:
Now I know that's a lot of money to turn over and we have a list here of projects that are intended to be a reinvestment or investment in Castle Pines service area. It's planned investment of $192 million included over the 30 year analysis and the $34.8 million is basically just used to initially set in motion. Our planned investment we're talking about installation of advanced metering infrastructure.
It's considered AMI meter technology for all of the customers. This technology actually allows customers online access, access to monitor their consumption history and also the ability to set alert notifications. It will help in the immediate buy-in to water rights that we already own in with the water in Logan County. It is buying into the ownership and Parker water system including capacity at the water purification facility.
The long term renewable water project and also the reservoir. Reinvestment is very important to us and we do show reinvestment in the existing infrastructure. Both what was identified needing maintenance and repair from our condition assessment report. As well as an ongoing annual investment, again to maintain the infrastructure in good working condition well into the future.
Describer:
On screen.
FINANCIAL ANALYSIS – REVENUE COMPARISON
2020 CPNMD'S WATER RATES COMPARED TO 2020 PWSD'S WATER RATES
A table compares 2020 revenue projections for CPNMD rates and PWSD rates. Columns include CPNMD Rates, PWSD Rates, Difference, and Percent Change.
Sewer Rate Revenues
CPNMD Rates: $1,970,537
PWSD Rates: $2,323,501
Difference: $352,964
Percent Change: 17.91%
Water Rate Revenues
CPNMD Rates: $6,164,367
PWSD Rates: $4,434,546
Difference: ($1,729,821)
Percent Change: -28.06%
Total Rate Revenues
CPNMD Rates: $8,134,904
PWSD Rates: $6,758,047
Difference: ($1,376,857)
Percent Change: -16.93%
Note: Revenue projections are based on 2018 CPNMD's actual billed consumption data.
Steve:
So when we put together this chart here which is revenue projections overall we were looking at 2018 Castle Pines North actual customer consumption and we applied this to the 2020 rates and fees for both utilities. The difference as you can see at the bottom there is nearly $1.4 million, or about 17% less will be collected under Parker Waters rates rather than what is being paid today by Castle Pines North.
Customers will generate less revenue primarily due to the elimination of Castle Pines North Renewable Water investment fee. And also the capital improvement fee. And that is if the inclusion is approved. Parker waters wastewater rates. As you can see on the, the slide there are slightly higher. And that is due to more stringent treatment and discharge regulations associated with utilities operating on Cherry Creek versus those utilities discharging into Plum Creek. But as you can see the water rates are less so a total of $1.4 million less. We will collect if this inclusion is approved.
Describer:
On screen.
FINANCIAL ANALYSIS – REVENUE COMPARISON
2020 CPNMD'S RATES COMPARED TO 2020 PWSD'S RATES – BILL IMPACTS
A table titled Water and Sewer Combined Bill Impacts compares the percentage of bills that increase or decrease across different customer groups.
Columns include All Bills, CPNMD Only, Residential, Residential – Out of District, and Commercial.
Increase
All Bills: 5.2%
CPNMD Only: 4.1%
Residential: 3.4%
Residential – Out of District: 18.4%
Commercial: 4.8%
Decrease
All Bills: 94.8%
CPNMD Only: 95.9%
Residential: 96.6%
Residential – Out of District: 81.6%
Commercial: 95.2%
Note: Revenue projections are based on 2018 CPNMD's actual billed consumption data.
Moving down, what does that mean to an individual bill? And I do say bill here and not customer account. So in a year one account receives 12 bills per year. And I want to remind everybody we base this on 2008 usage applied to the 2020 rates for both utilities.
Steve:
It's a distinction that's important because Castle Pines North in their mailer to the residents actually use 2019 usage applied to the 2020 rates. So the numbers are similar, but they are slightly different than the ones that we're presenting here tonight. Based on the mailer that you received our results basically show that not including the out of district customers that the district currently serves that nearly 96% of the bills will be less under Parker Water's rate structure.
Describer:
On screen.
FINANCIAL ANALYSIS – BILL IMPACTS
2020 CPNMD'S RATES COMPARED TO 2020 PWSD'S RATES
COMBINED BILL IMPACTS
Two horizontal bar charts compare the percentage of customers whose combined water and sewer bills would change under PWSD rates. The chart on the left shows all customer classes. The chart on the right shows CPNMD customers only.
All Classes Customers Bill Impact
Increase of more than $20: 2.83%
Increase of $10 to $20: 1.25%
Increase of $0 to $10: 1.08%
Decrease of $0 to $10: 1.59%
Decrease of $10 to $20: 3.09%
Decrease of $20 to $30: 40.53%
Decrease of $40 to $50: 36.34%
Decrease of $50 to $60: 5.21%
Decrease of $70 to $80: 3.25%
Decrease of $75 to $90: 3.00%
Decrease of $100 to $150: 0.88%
Decrease of more than $200: 0.60%
CPNMD Customers Only Bill Impact
Increase of more than $20: 2.02%
Increase of $10 to $20: 1.11%
Increase of $0 to $10: 0.95%
Decrease of $0 to $10: 1.51%
Decrease of $10 to $20: 3.09%
Decrease of $20 to $30: 43.51%
Decrease of $40 to $50: 36.52%
Decrease of $50 to $60: 4.31%
Decrease of $70 to $80: 3.25%
Decrease of $75 to $90: 2.75%
Decrease of $100 to $150: 0.47%
Decrease of more than $200: 0.52%
Note: Based on CPNMD's 2018 Actual Consumption.
Steve:
Breaking that down a little bit farther. You can see that again the 2018 usage applied to 2020 rates not including the out of district customers. Basically what you're seeing right here is that 80% of the monthly bills would actually be between $20 and $40 less under Parker Water's rate structure. So we're not talking a couple of pennies. We're just a couple of dollars. But over $20 between $20 and $40 is where the vast majority of these bills will land for Castle Pines North.
Describer:
On screen.
UNIFICATION STUDY | RESULTS FOR CPNMD
With Castle Pines North Metro District's Inclusion into Parker Water and Sanitation District:
Total water and sewer rate revenue collected from CPNMD customers, without a surcharge, would be approximately 17% for CPNMD customers. Over 95% of the bills will be less than what CPNMD customers are paying today.
System development fees would be lower under PWSD's fee structure, approximately 30% lower.
CPNMD's customers would join a utility that owns sufficient water and has a plan to deliver that water to meet a goal of 75% renewable water supply by build-out.
With CPNMD's cash on hand, plus proceeds from selling CPNMD farm water and storage rights on the South Platte, all of CPNMD's current debt and liabilities would be settled.
PWSD would receive $34.8 million and all assets of the water and sewer enterprises.
During the first year of inclusion, all new PWSD accounts would have AMI meters installed and have access to a customer portal that allows residents to monitor their own water usage.
All infrastructure costs to interconnect the utilities, install AMI meters, buy-in capacity into the water plant, and provide a 75% renewable water supply by PWSD build-out can be accomplished with the $34.8 million and reasonable annual revenue increases of 2.75% to 3.0%.
A slight reduction to property tax rates for CPNMD customers. PWSD's levies would be approximately $363 annually, based on a $720,000 average home value.
Steve:
So if the, if the inclusion is approved nearly 96% of the monthly bills for Castle Pines North residents would be less moving forward. Castle Pines North residents would have a solution for their long term water supply needs. You would have new AMI meter technology installed within the first year. You would see no effect or a slight reduction to your overall property taxes.
As a result of the inclusion, you would see future annual planned increases in the 2.75 to 3% range and also developers would see lower system development charges than what they currently pay. From the standpoint of Parker Water.
Describer:
On screen.
UNIFICATION STUDY | RESULTS FOR PWSD
With Castle Pines North Metro District's Inclusion into Parker Water and Sanitation District:
PWSD would receive a new revenue stream from approximately 3,400 accounts, generating in excess of $10 million annually to help hold down necessary rate increases for all customers.
PWSD would receive all the assets of CPNMD's water and sewer enterprises, including $34.8 million, which would fund participation in the long-term renewable water project, the interconnect, purification capacity at RHWPF, the AMI conversion, improvements identified in the condition assessment, and unexpected capital requirements.
No debt or current liabilities of CPNMD would be assumed by PWSD, as these will be paid off prior to inclusion.
Total gross property valuation of PWSD, based on budget year 2020 valuations, would increase approximately 19%, to $997,115,711.
PWSD could reduce the RH Reservoir mill levy by approximately 19%. Based on a $561,000 average home value, this would reduce property taxes by $54 per year.
The total cost per account of the farms project, in 2020 dollars, would decrease by approximately 16%, or $2,000.
New customers outside current CPNMD boundaries would go through PWSD's process of inclusion.
PWSD, after inclusion, would have access to Centennial Water and Sanitation District and own water rights in the South Platte River.
There is no net cost to PWSD customers over the 30-year study period.
Steve:
Our customers would see lower property taxes through a higher valuation. because there would be more property coming into the equation which would result in a lower millage. We would see economies of scale spreading out the cost of not only the long term renewable water project but other projects and other costs over a larger customer base. We would receive a payment of $34.8 million to offset some of the initial infrastructure cost incorporated with the plan. We would receive, as Ken said, all the existing infrastructure and water rights of Castle Plans North without any new debt. And we would receive a new revenue stream on over $3500 established accounts with no net cost to Parker Water customers. So both utilities get the share in the benefits if this inclusion is approved.
Describer:
On screen.
NEXT STEPS ASSUMING MAY ELECTION...
February
Public meeting of inclusion resolution and inclusion agreement.
File inclusion order and agreement with District Court.
March
District Court orders election date.
Publish the notice of election and certify ballot content. Mail ballot plan at DEO's Office.
Boards and Councils consider a resolution of support for the inclusion election.
Order registration records from County and property owner lists from County Assessor.
Send mail ballots to covered military and overseas electors.
April
Print and mail ballots. Post and publicize election notice.
Divide the District into election precincts and designate polling places. Appoint election judges.
May
May 4, 2021 — Tentative election date.
Steve:
This slide shows the next steps of the process including tonight's meeting. And ultimate final decision by the Castle Pines North residents as to whether or not to improve this inclusion. Right now the district court will declare the official date. But we're thinking a tentative date for the election would be May 4th.
Describer:
On screen.
QUESTIONS?
The Parker Water and Sanitation District logo and the Castle Pines North Metropolitan District logo are displayed side by side in the center of the slide, separated by a blue and green graphic.
THANK YOU.
Steve:
So Mr. Chairman that wraps up our part of the presentation. I'll turn it back over to you and we can move forward.
David:
Thank you. Thank you very much Steve, Ron and Maleia for your attendance and your leadership in this. Before we move forward, and what I'd like to do is entertain questions from those who have signed on this evening to participate, directed to you Steve. And those are the Parker Water and Sanitation District. Let me offer a few comments and notes.
On behalf of our board and the staff and the community. I want to thank Director Christopher Lewis for his exemplary community service as a fellow director. For those in viewing, in the viewing audience who don't know director Lewis is on active military duty overseas and wakes up in the wee hours of the morning to participate in our board meetings.
Christopher we honor we are honored to serve with you and thank you for your conscientious service to the people of Castle Pines and our nation. As you might imagine constituents have inundated us with comments and questions on the proposed inclusion. Though I am confident most of your questions will be answered during the presentation tonight. Please note constituents questions submitted and the corresponding answers will also serve as a basis of an FAQ that will be available on CPNMD's website in the coming days.
That FAQ of course will grow over time. Additionally we're working with our Parker Water and Sanitation District to develop and post a user friendly water and wastewater bill conversion calculator to our respective websites. Those, excuse me. Though early in the development stage as contemplated, this online tool, tool will allow each Castle Pines North resident customer to enter their 2020 and monthly water bill charge into the bill conversion calculator.
The bill conversion calculator would then display the monthly charge that CPNMD resident, residential customers would otherwise have paid. Had they been a Parker Water and Sanitation District customer in 2020. We hope to develop, test and post to both websites the bill conversion calculator by the end of the month. Now for a couple ground rules for tonight's special board meeting.
Number one we respectfully ask those zooming in tonight to please turn on and leave on your video and turn off your audio until we call on you at which time please turn on your audio. Number two when we call on you please state your name, water service address, and the name of the specific neighborhood you live in i.e. Greenbriar.
Stonecrop, Bristlecone, Winterberry, Forest Park, Knightbridge, Canterbury etc.. Number three please avoid redundancy. In other words please avoid repeating the same question a previous speaker has already asked. Number four please limit your comments and questions to the maximum of three minutes. Number five to keep us all fair, honest, transparent and in the realm of timekeeping. And to keep this meeting moving for the benefit of all participants including those watching from home.
We are using a iPhone with a timer. And when called your speaking time will commence. Immediately after you state your name, a water service address, and the neighborhood in which you live when your three minutes are up. Our district manager Mr. Worley will raise his hand and at that point please stop speaking. Many constituents want to participate tonight so please be respectful. And number six. It goes without saying that we will not tolerate personal attacks. And no interruptions. Again please be respectful.
Number seven though I firmly believe this board that our staff consultant team and that of our colleagues at Parker Water and Sanitation District has resulted in a proposed inclusion. This is most fairly and accurately characterized as more for less, more for less. More for less than our predecessor proposed in 2016. You may recall for a mere 50% of the community's renewable water more for less than our predecessors proposed in 2018.
Also for a mere 50% of our communities renewable water. More renewable water for less cost. Number eight that fact combined with the fact that the proposed inclusion also constitutes a win-win for the people of both Castle Pines and Parker Water are two of many reasons we are proud to bring this inclusion forward. Having said that we understand and appreciate the depth and diversity of the questions constituents have about the proposed inclusion.
We will continue responding to the constituent questions as quickly and honestly and transparently as possible. One final ground rule tonight. Tonight's special board meeting is about one and only one topic namely the proposed inclusion of CPNMD’s water and wastewater utilities with those of Parker Water Sanitation District. Please hold non inclusion specific comments and questions for one of our regular board meetings or alternatively please submit them. Non, those non-inclusion specific comments and questions to us via the email at the district on the home page found on the home page of the website.
Likewise you can expect that I will do the same. I respectfully ask my colleagues to help me stay on point as I'm going to take the lead on answering these questions. The synopsis that you were mailed and the, and the collateral material is a, is factual a byproduct of the study and includes no opinions. What are the changes? The changes are the monthly bills. As Steve pointed out, going down.
The amount of secure renewable water going up. Property taxes going down. And I can keep going. What are the costs? You heard from Parker and the presentation. $34.8 million coming from cash flow and the sale of a single asset that would remain our duty to convert inside of this year to meet the obligations of this inclusion agreement. No additional rates, no additional fees, no additional mill levies.
Out of pocket. That $34.8 million, as Steve indicated, is a byproduct of the conditional assessment findings. As, as well as the automated intelligent meters. The connectivity between the districts. Plus a makeup payment of approximately $6.4 million. To match what Parker residents have already invested in their renewable water project. It is with that that I am going to open up the hearing to the public and with the Parker folks online and available. If you have questions for them.
Please call it out. As such if you have questions for Castle Pines North Metro District know that we're here to serve. So moving forward I am going to call the first constituent that was signed up to zoom in to this special board meeting.
Describer:
There is someone anonymous off mic, and off camera speaking inaudibly to David.
David:
I'm second. I'm sorry. Second, I see that notation. Thank you very much. Mrs Betsy Steelman. Betsy, are you online this evening?
Describer:
Betsy is joining the meeting via Zoom.
Betsy Steelman Castle Pines Resident:
Yes, Betsy is here.
David:
Good evening Betsy. Good evening. You have the floor.
Batsy:
Okay. I just had a few questions. One was when would the conduit. What was the time frame of having that be built? And would there be any disruption to those residents? Or to us, you know, when that was being built? So that was my, that was one question.
David:
Steve, do you want to ask, answer that please?
Steve:
The current plan is it's probably 2 to 3 years before the infrastructure would actually be in. If the inclusion is approved we would start the construction design and engineering. Right now we have a tentative date of January 3rd which would be considered day one of the inclusion. And again it's probably about 2 to 3 years after that before the infrastructure is actually in the ground. This is, it is a little bit more complicated because it does include going under I-25. And so there are additional restrictions and everything with doing that. But we're looking at about three years. The disruption to any current residents should be minimal.
Betsy:
Thank you. Another question I had I'm not quite sure where I am time wise. I want to A, applaud the board for all of the work that they've done. I know it's taken quite some time and some investment from the financial standpoint. And I was hoping that we could hear, you know, why it took over two years. And what that cost was that was incurred in order to create this hopeful merger. Which looks like it's a great deal for both of us.
David:
Sure, let me try to address that Betsy. You notice that in the slideshow that Steve shared with all of us there was a, a list of, of first steps associated with the inclusion. The request was actually made some years and months ago more accurately probably about December of 2018. And over the course of that period of time we not only began with the legal as he pointed out learning what was and wasn't conducive to what we were trying to ultimately garner but to comply with laws that weren't in place and, and processes that had never been utilized before.
In essence, it was the beginning of a, of a process in the state of Colorado that to the very best of my knowledge and those that we have had the same conversation about hasn't taken place before. So it was a lengthy initial downstroke of the legal review. It got into the water rights and the attorneys. And all of the items and issues associated with conveying water rights. And, and not only that but the evaluation of the water rights.
And it continued with the, with the conditional asset or conditional assessments of the physical plant of Castle Pines North. And the engineers were involved in this and let me know that it wasn't one side or the other whose engineer or consultants drove this mutual effort. It was guided and directed by the key people within the organizations. The boards of directors were part and parcel to evaluating the information every step of the way. And at the end of the day what came from that mutual study as I mentioned earlier were simply the facts and the findings of this mutual effort and what we are proposing tonight. I hope that answered sufficiently your question.
Betsy:
Yes that does, thank you. And again I appreciate all the hard work the entire board has done to bring this to, to a vote. And that's all my questions.
David:
Looks like you made that time wonderfully. Nice job. We have a second on the list, Thomas Kellogg. Thomas are you on?
Thomas Kellogg Castle Pines Resident:
Yes I am.
David:
You have the floor sir.
Thomas:
First off, I just would like to compliment the board on the overall presentation tonight. I think the majority of our residents are going to be very pleased by all the work that you've done. If this all comes to pass. And my question and you can certainly put this off if this does not pertain specifically to the inclusion but I'm wondering if you could address briefly, maybe either in tonight's session or in the Q&A. The Q&A that you're going to put out for our homeowners in the area. What about the other services that the master association is, is, excuse me. The, the district, metropolitan district is currently providing our residents and what you may be seeing. See how you see those being handled in the future if this all comes to pass. Thank you.
David:
Sure, I understand the question. Hear you loud and clear. And let me just say that to talk about that even briefly would be getting the cart before the horse. And it is with that disposition that I'd like to defer any further conversation post-election, but certainly between now. And the election as it is proposed May 4th. Any conversation that you may have with a director or staff in that regard is warranted and is deserving of some feedback and so at will contact any of us and, and to continue that conversation. And we'd be happy to visit with you.
Thomas:
Great, thank you very much. We'll talk again after May in the election I guess. Thanks again.
David:
Thank you again Thomas. And again between now and the election if that conversation wants to take place between yourself and any of my colleagues and myself or staff feel free to reach out. You know our contact information is displayed on the website and we'd be happy to continue the conversation with you. We've just taken a, an approach this evening that to talk with any level of detail would be getting the cart before the horse. And I know that you hear us. Thanks so much.
Thomas:
Understood, thank you.
David:
Number three, Mrs. Jean Henry. Jean, are you online?
Jean Henry Castle Pines Resident:
I am online. I am, I really don't have a question. I spent quite a bit of time reviewing and I'm interested in other people's questions. But I really just wanted to thank the board for an incredible amount of work. And that work, I think, began with trying to understand water here in Colorado. So I think it's complex. I applaud where we're going, right. Certainly you have my personal support. I just wanted to say thank you to all of you. And with that I'm over my three minutes.
David:
Well you're certainly in first place in that regard. But seriously Jean, we appreciate the barrage and, and the numerous questions that you've already participated in. And engaged us all with the intellectual level of those questions. And your engagement is for me of no surprise. But is impressive, to say the least. And we just appreciate you participating. And this evening thanks for your comments. Number four.
Jean:
Can I tell you, I do believe David. Taking the time and energy and intellect on all of the members of the board. To understand water is incredibly important and so, so appreciated. So nice job. Looking forward to the rest of the conversation. But thank you.
David:
Thanks again, Jean. Greg. Greg Vigil are you on? I'm sorry. Greg Vigil. Greg, are you with us this evening? Greg is not with us right now so we'll keep moving forward. Next in line is Janet Janet Sims. Janet, are you with us? We don't see Janet. Kris, Kris Sims you with us this evening?
Kris Sims Castle Pines Resident:
Yes. I'm here.
David:
Chris you have the floor.
Kris:
My only question would be regarding the existing facilities and building structures in the Castle Pines area. What would happen? What would be the disposition in the future of those assets? That's all.
David:
Just to understand your question Kris. Are you talking about those assets pertaining to the water and sewer services side of our stewardship or what would remain after inclusion should the residents approve that?
Kris:
Yeah exactly. So should the residents approve of what happens to the administrative offices there close to the supermarket on Castle Pines Parkway?
David:
Sure, and while I promised all of you all to stay on point this evening again, that would be getting the cart before the horse. But let me slip in just quickly. Those assets that you mentioned the few that you mentioned are a part of the what we call the general fund. And are part of how we steward all of the parks, the trails, and the open space. That being the vast majority of, of what the city has to take care of. And to plan for and maintain as we speak.
00:47:34:03 - 00:48:07:10
Unknown
They would remain with the district. And any more specifics, again I'd like to defer to after the inclusion is approved. If that's all right.
Kris:
Yeah, that's fine. I think that pretty much answers my question. Thank you.
David:
Thank you, Kris. Thank you for joining us this evening. Monica, Monica Cowan.
Monica Cowan Castle Pines resident:
I actually, I didn't submit a question. I apologize. I, I'm here to hear the information and hear other people's questions. And I appreciate all that you have done.
David:
Monica, thank you so much. Appreciate you. Next up is Heidi. Heidi Taylor, are you with us tonight? Heidi’s not. Not made it yet. Let's move on. Steven? Steven Konecny. Steven’s not up. How about. Schramm? Schramm, are you with us this evening? Schramm. Well maybe he's a little late coming as well. Doug? Doug Dupy, Doug are you on? No. How about a friend of the district here Mr. David Necker? David, are you with us tonight? David, I give you one more shout out. Maybe you are muted.
David Necker Castle Pines Resident:
I'm here, thank you, David.
David:
David, go ahead. You have the floor sir.
David Decker:
I'm listening, thank you.
David:
Very good. Thank you David. Susan, Susan Johnson are you with us?
Susan Johnson Castle Pines Resident:
Hi guys, I'm here. Can you hear me okay?
David:
We can hear you loud and clear and we can see you as well. Welcome. You have the floor.
Susan:
Well I didn't have any questions. At the risk of being redundant, I just wanted to thank everybody involved for this study. I know this was not easy. And especially from the Castle Pines point of view. We had a couple of roadblocks early on. And you guys were quickly able to move those out of the way. And you know make good on your promises. So I think this plan sounds fabulous. I am 100% on board. Thank you also, David for reaching out and answering my questions that I had earlier. So I didn't have anything else but to say thanks and yay!
David:
Susan, you're too kind. Thank you so much for joining us. Joining us this evening, you prompted. Something that I've had top of mind since taking office and that was the promise that my colleagues and I made. Anyone that is viewing online or that has joined us over the course of the last two and a half years may recall that we ran on a single promise. Our platform was very simple to make sure that there wasn't a stone left unturned, that there wasn't any doubt in anyone's mind that we had evaluated every opportunity that existed.
That made sense to improve on the quantity of renewable water albeit what was what was proposed as I mentioned earlier was 50%. It was unfunded 50% and were now looking at a much greater amount of secure quality water and for a much less cost. Again, a single promise made, a single promise kept. We're hoping that everybody sees it the way you see it. Susan, thanks so much.
Susan:
Absolutely amazing, thank you.
David:
Darrin Brooks, Darrin is not with us this evening. Another friend of the district compadre and some of our parks projects. Ryan Parker. Ryan, are you with us tonight? Shoot, Ryan is not signed on yet. Maybe he'll join us later. Next would be Darren. Darren Steinke, are you with us? Darren is not with us yet. Okay, we'll keep going. Next up is Jordan. Jordan Carroll. Jordan, are you with us this evening? Again, Jordan signed up and has not yet signed in. We must either be running early or late but nonetheless we'll keep going. Dan, Dan Boose from. Dan is not with us this evening. Okay, how about Nikolay, Nikolay, Nikolay Garusov. Nikolay.
Describer:
Someone off mic and off camera spoke inaudibly.
Nikolay Garusov Castle Pines Resident:
Yeah, if you can hear me.
David:
You have the floor. You have the floor.
Nikolay:
Yeah, so I appreciate for the opportunity to participate. And just a little bit background I moved from Highlands Ranch, just basically the beginning of November last year. So, and it was a bit of a sticker shock for me when I saw the water bill after paying the water bills for the bigger household in Highlands Ranch at the Centennial water rates. So I, in general, really support the overall idea of inclusion.
I think it's a good idea. The questions I have more about the integration itself because we all know the, the devil in the details, right? So, and how exactly the integration is going to be executed and whether there are any hidden cost or something or some risks which we are not aware of and how big they are. So, just overall would be good to know what exactly those.
And another it's always kind of overall observation that's it's not, not so much of a question. The question I have is all those people or households whose water and sewer bills are not going to decrease or even increase. Is it those which are high water consumption kind of households or lower water consumption households? I mean who are those? Who are those people, who are those users?
David:
Sure let me, let me answer that. The theme that we discovered when putting these graphs together were exactly what you have deduced as well. And that is that the 2% of the folks here within the district would not see a water savings. And typically they were ones with much larger lots and meters. And for the most part fully landscaped and under irrigation. But again, you were right. They were the very highest water users.
Nikolay:
Okay so I, I guess many people might have the same questions. So what do you propose earlier about that kind of, some sort of test site, right? Which would show how much people would pay. If the inclusion is to go. That would be helpful as long as actually, people get that and start actually using that. So I think that the communication will be critical in making sure that that gets through. Okay. So, and overall it's actually would be also better to get more information about what exactly is going to happen after the inclusion after the day.
One I know there are no exact plans maybe in place. There may be just a little bit too high level but some disdaining of what is coming would also be helpful. That's pretty much it overall. Again thank you for that and I'm just looking forward to, to seeing the, the benefits of that inclusion. Thanks.
David:
Sure, thank you so much. Nikolay. Appreciate those comments and questions. And be assured that the bill conversion calculator you're making reference to is already being manufactured. And the timeline and goal for both districts is to have that available for all the constituents of each district by approximately month end. So it is, it's with that that maybe Steve, you could jump in and just address one more time some of the things that were included in your presentation, specifically the things that would follow inclusion. If the residents of Castle Pines North voted to approve that on or about May 4th, knowing that the inclusion would not take place until January 3rd of 2022, could you share with us one more time? Just high level thought thought and thoughts about what happens next?
Steve:
Sure, so if the inclusion is approved in May. Our intent is to sit down with our staff to talk about the operational issues going forward with Castle Pines North. Again the date that we would start our operations with January 3rd, is what we tentatively have scheduled right now. We would do some planning. But for the most part the work would come after the actual inclusion date.
But within the first year you would see planning for new meters that we plan to install which is the AMI meters. We plan on starting the process of design engineering and construction of the necessary infrastructure to do the internet. We plan on doing many of the improvements that were identified within the condition assessment report which is work on the treatment plan and stuff. But again we'll do some preliminary planning. Most of that will be after the January 3rd date. Providing that’s the date that we do it.
David:
Very good, thank you for that, Steve. And that prompts me to also add as a byproduct of the conditional assessment findings there's a number of projects that are underway as we speak namely the Castle Pines Parkway water line replacement. Now while we have offered the city.
To subsidize some of the cost of that roadway replacement while we were prepared to move forward on the entire project it's our understanding that they are going to do it in phases. In the first phase is on Castle Pines Parkway from approximately Yorkshire to Monarch and know that we are not waiting until January 3rd to participate in that project maximizing the economies and efficiencies right along with the city and that effort of theirs.
We are going to move our water line that is adjacent to the parkway to beneath the parkway. And that's going to take place during the summertime of this year according to the latest schedules. That being said the cost associated with that of course will be borne by the district. But it will not be additional cost to the ones that Steve was talking about. But rather there will be an offset to the $34.8 million. Because as he also mentioned it was the $34.8 million is a combination of all of the things that he mentioned that are forthcoming. Plus a continuation of good stewardship of what we already have. Thanks Steve, for that. And I hope that that answers Nikolay your, Nikolay your questions. Thanks again for joining us this evening. Thanks. Next to follow Nikolay is Kenneth. Kenneth Ryerson, Kenneth are you with us this evening? Has he signed on yet? We don't have. He's not signed on?
Describer:
Someone off mic and off camera is speaking to David inaudibly.
David:
Very good. Bill, Bill Dalton. Bill are you on?
01:02:57:06 - 01:03:29:22
Unknown
Any sign of Bill?
Bill Dalton Castle Pines Resident:
Yes I am.
David:
Oh there he is. Mr. Dalton you have the floor sir.
Bill:
Yes I did submit some questions to the board last week. Some of these questions have already been answered. I'm curious to see what other questions other ratepayers or owners of the system have. But I think my biggest concern is you say 2% of the lots or the customers will not see any savings I don't.
Likewise the counter is, is our bill going to go up. Because we're on a large size lot or lots almost one acre. And I have mentioned before that we have an irrigation budget based on 30% of our lot size. And so we can irrigate up to 30%, not the 100%. But I am concerned about is our water rates just going to go up because of this new merger. Whereas before we could manage it and stick with the budget that we've been allocated for a number of years. And with that, that's the only question I have.
David:
Steve I'd be happy to answer that question unless you'd like to take a run at it.
Steve:
The information I have on customers is in aggregate. So it doesn't go down into the detail or what you're doing. Can everybody hear me?
Ken Smith CPNMD Communications Director:
We have a problem with your audio.
David:
Well let me pick it up. Let me pick it up for Steve again. I suggested that the 2% that would not see a savings were those that typically had larger lots under full landscaping and irrigation. Those were just the common thread that we noticed. There were other users and yet even the large lot owners and the bigger taps and meters. And those folks that were irrigating a lot have the option of continuing to irrigate at the same level. Or changing their irrigation plans. The AMI meters are going to assist them in analyzing the data on a high level and a very technical level and will help provide them with information that will make that job easier. And of course both staffs continue to have water professionals and.
That can assist in evaluating water usage whether it be inside or outside. So Bill, thank you so much for joining in. We hear you. It doesn't sound like it would be. Your condition would be one of those. But with that rate calculator make sure you let us know will you.
Bill:
Okay I will, thanks.
David:
Thanks Bill. Okay, John. John Cousins, John are you on this evening? John’s not. Signed on yet? Will go to Gary. Gary Channel, Gary are you in or on? Nope not signed on. Very good. We'll hasten to miss Kane. Lisa Kane are you on with us this evening?
Lisa Kane Castle Pines Resident:
Yes I am.
David:
You have the floor.
Lisa:
My question a lot of, a lot of my questions have been answered. And I do appreciate all the work the board's done in this regard. But my question, it was mentioned that the Castle Pines North Metro District employees would retain their jobs at Parker Water. Is that something that we could have more detail on?
Legal Counsel Kim Seter, Esq.:
Mr. Chairman, would you like me to address that?
David:
Yeah Kim that would be great. We were just checking to see if Steve was on. But in his absence, please. Thank you very much.
Kim:
We've just provided a portion in the intergovernmental agreement that completes this process by which employees of the existing district will be given job offers prior to their termination or the disappearance of their jobs with Castle Pines North. So it's a simple process and they have that option.
Lisa:
Okay, thank you. That's all I had.
David:
Well that was too easy. Lisa, are you sure?
Lisa:
I have more but it pertains to the Castle Pines North Metro District so I'll put those in writing or call someone at the office.
David:
That's great. Thank you so much. We appreciate you very much this evening. Have a good evening. You too. We'll move on to Michael Giardina.
01:08:36:15 - 01:08:56:06
Unknown
Giardina. And I've done this more than one time. You got to forgive me.
Michael Giardina Castle Pines Resident:
Hey this is a tough one. No one gets this one right. So you're doing fine.
David:
You're up, Mike you have, you have the floor my friend.
Michael:
Well, I got a couple things to say. Number one I do want to echo everybody's sentiment. The hard work that's gone into this. I am a newcomer as some are to Castle Pines just moved from California November 1st, and I guess a little background might be helpful for me as to if this is not voted in and doesn't go forward where does that leave Castle Pines Water District? Where does that leave the 3500 residents? So that's the first question I have.
David:
And the answer to the question is business as usual. Again not to, not to belabor the point but my colleagues and I took office in, in 2018 with a single promise to not only continue the responsible and professional stewardship of the Water and Wastewater division as well as parks trails and open space and the stormwater that we manage. But with a single promise to pursue the request of the, at the request of the residents more renewable water for less money.
And if this inclusion which again does not include any opinions but rather a recommendation from this board this staff Parker's board Parker's staff that it is indeed as illustrated a win-win situation. If that moves forward then. There were all the changes that we've all spoken about tonight. If it does not move forward its business as usual will continue to endeavor to pursue renewable water more wisely. I hope that answers your question.
Michael:
Well I was thinking more on the line of rates and stuff. Wouldn't we possibly incur greater costs if we don't move forward with this particular plan? Not knowing the future. But you know water is not cheap.
David:
An excellent point. While water continues to appreciate at an exponential level on a daily basis. The based on the lack of availability you have to know that the costs for not only acquiring it but the cost associated with delivering it will continue to go up. You see that in our cost of doing business trajectories here in Castle Pines they're a bit greater than those of Parker and at times have been. But they'll continue to increase given the lack of economies and efficiencies. The ones that Parker historically has made reference to and has been embedded into. This presentation and the inclusion agreement are much more affordable.
Michael:
And in that I want to say obviously I'm totally for what you guys are doing. I went through all the material you and I spoke today at length. I just was thinking you know for those who are maybe not sure whether they want to go forward or not. What does that mean? And we should all know that we're voting for something that is a future, or we're voting to remain the same and have maybe some uncertainty. I did want to bring up one more question about the AMI devices.
You and I had a discussion about it today. I experienced this in California and my bill more than doubled because the AMI devices were so accurate. And then we talked about the fact that our rates will go down and there's some fees that we won't be charged. That might be part of the math that allows us to not see much of an increase or any increase.
But I know for a fact in the neighborhood I was in in California five neighbors plus myself all had increases because the AMI devices were so accurate. I am sure that we were on some 20 year old 30 year old devices reading water where I lived so I think it would be a mistake not to consider that these devices read better and could find flaws where people have any kind of light leaks or other things that are not being detected and it may be the same circumstances where the rates actually go up. So again you had mentioned today that our rates were going to be lower. And, and then also some fees would not be charged. So I don't know if that was something that everyone is privy to.
David:
Appreciate that reminder. And I think what I said. And if I didn't I was mistaken. Rates were not going up but rather I think we settled on and agreed on the fact that usage may have increased with the AMI’s, or at least the usage that was being reported to the service provider.
And while that could certainly happen I agreed with you not knowing how archaic the meter devices are throughout the entire city. Here. Castle Pines the scenario that you shared with me is clearly possible. But again back to the usage. Once somebody is identified where maybe those increases are, maybe they're going to be better prepared to tackle the issue of usage to keep that take advantage of the lower rates.
01:14:32:27 - 01:15:06:26
Unknown
I know that you and I agreed to at least consider that moving forward. But sure appreciated your insight on those Amis and hope and pray that they turn out to be. More of a positive than anything else to this inclusion effort. So thanks again. Appreciate that, Mike.
Michael:
Thanks for having the meeting tonight. We appreciate it.
Steve:
Mr. Chairman. This is Steve.
David:
Go ahead Steve.
Steve:
Just a little information. I'm actually on Ron Redd’s screen right now since you couldn't hear me on mine. But with our meter replacement program that we went through we did hear that we should expect higher bills because these meters read better. But we didn't really experience that nor have many complaints of that moving forward as we implemented the program.
The other part that customers really like is that you're able to go online and set leak alerts. So something where you may not find a leak for 30 days now you may find in a couple of hours. And you can quickly very very quickly get those taken care of. And it's actually been, I mean our history has been people are very happy with the service. And the money that they're saving because they're picking up these leaks very quickly are very much appreciated.
David:
Thank you Steve. Appreciate that. The, we had a follow up question and, and I think you've almost answered it. But for the purposes of, of transparency and honesty with everyone zooming in and here this evening did you in in your projections did you include any revenue boost associated with the installation of the new meters?
Steve:
No we did not because again when we did it for our 17000 customers we did not see a big boost of revenue or anything from those from that installation. So no, there is nothing in the plan that includes that.
David:
Very good. And secondly can you share with those of us engaged here this evening how Parker enforces their own rules and regulations as it relates to irrigation use? Do you have like a rolling. Compliance officer or how does that work within the Parker Water and San District?
Steve:
So how we work it is basically by volunteer. We have some guidance that we have out on our website that says even numbers water on these days odd number lots water on these days. But currently we do not do any proactive enforcement of that. But rather hopefully the customers help are helping us and using our guidance as they deem fit.
That does not mean that sometime in the future that we don't start doing some enforcement. But at this time we don't. We do. We do, do some targeted compliance where if somebody calls up and tells us hey this lot is just watering the street and stuff like that, that will go out for what we would consider water waste. But actually not trying to manage people. And when they water or anything like that.
David:
Very good, thank you. And since I have you teed up about a couple more for a listening audience by becoming owners as Castle Pines North Metro District residents would in the Parker Water and San District that would imply that Castle Pines becomes legally liable for any issues associated with it. Is there any existing or potential litigation with PWSD that Castle Pines citizens should be aware of?
Steve:
I'm going to let our district manager handle that one.
Ron Redd, District Manager of Parker Water & Sanitation:
Thank you Mr. Chairman. There is nothing on the books right now litigation wise that we have going on whatsoever.
David:
Thank you sir and I know you could answer this Ron. So you take it or pass it back to Steve. While the capacity of Rueter-Hess Reservoir according to the information we've had is approximately 75,000 acre feet. What is the annual actual available acre feet? Over the past five years what has been the annual actual available acre feet over the last past five years?
Ron:
So if I'm, if I'm understanding the question it's how much has been in there in the last five years on an annual basis. And I can tell you. We've been, we peaked at 30,000 acre feet about four years ago.
We're currently sitting at 20,000 acre feet. So it's been slowly going down over the last few years while we've been going through this drought. So somewhere in the 20 to 30,000 range.
David:
Very good. And how many households does Parker Water and San District currently serve?
Ron:
We have 17,000 accounts and that's approximately what, 55,000 households? 55,000 population. Oh population of 55,000. 17000 accounts.
David:
By adding the remainder of Castle Pines how many households would Parker serve? And I'm going to say that if you're at 17 and we're at a little net north of 3,000 we'd be just a little over 20,000 immediately. The build out then for Castle or excuse me, for an inclusive. Would be how much, Ron? Population wise? Service ratepayer wise. How many meters that build up?
Ron:
It's going to ultimately be 45 to 50,000m.
David:
Very good. And, and let's see just a couple more if I may.
Ron:
It's always dangerous when I do math on TV. By the way.
David:
You and I both. How, how much, how many acre feet of water is needed to serve the target population? Or I think maybe, maybe it is. Build out how many acre feet of water is needed to serve the district. When you're serving 45 to 50000 taps.
Ron:
So in our planning we use a little over half an acre foot per household basically. But we, we estimate around 18000 acre feet of water is required to serve our customers at build up.
David:
Thank you, we do much the same right around depending on where that water is coming from and how we're budgeting it right around that half acre per SFE as well. All right, I'm going to continue with the questions. Or that and the folks online if I may. Belinda, Belinda King are you with us this evening?
Belinda King Castle Pines Resident:
I am sorry you have answered the questions I had for you this evening.
David:
Very good, thank you for joining us. We sure appreciate you taking the time and the interest. If there are any others that come up do not hesitate to reach out. Be happy to discuss them with you. That being said Michael. Michael Craig are you with us this evening as he signed in yet? We haven't seen Michael. Then Kathy Grimes is Kathy in with, on online? Kathy Grimes has signed up. She's not on. How about Robert, Robert Hardaway? Robert, are you with us this evening? Sure as heck hope this hasn't taken that long. And we lost some folks. Laurie, Laurie Goldie are you here? Are you on this evening? Not on either. Mr. Stevens, Kevin Stevens, are you with us this evening?
Kevin's not with us this evening. Douglas, Douglas Sholstice, Sholstice. Douglas Sholstice, are you with us? Is he not signed on or right? We had a number of folks that signed up and I'm just hoping that we answered their questions. And they went on to do bigger and better things. Philip, Philip Glynn. Philip, are you with us this evening?
Philip GlynnCastle Pines Resident:
I'm here now. Can you hear me?
David:
We sure can. You have the floor sir.
Philip:
Okay great. One of the. I was looking at the Parker Water and Sanitation website and there, there page that talks about this inclusion. And they talk about their risks. They have a bullet point that says if the $34 million that Castle Pines North Metro hands over to them if it's not enough money, the agreement provides that CPMMD customers pay a nominal surcharge on their bills for up to ten years until such time any deficiency is satisfied. Can you elaborate on that? Or is maybe that's not in there anymore? But can you talk about that a little bit?
David:
Sure, great question. And I, and I can elaborate on it. Just a little history. Of course you know that we've been after this for some time. And as a part of the initial drafts associated with the inclusion agreement and using some of the initial information from the folks that we have surrounded ourselves with our finance directors, legal counsel's engineers, water professionals etc. guesstimate that we may not be capable of tackling the inclusion fee as it was explained by counsel all at one time and it was the, there was $6.4 million as a part of that total now that was considered a surcharge.
And, and it was going to be $28 million for in cash and then a $6.4 million surcharge at a rate of $13.68 per household per month for ten years. And, and that was, that's a makeup payment is what that entails. It's a makeup payment by our residents to reach a level playing field if you will of the residents and what they have already paid of the farm project in Parker. So we had included in the draft agreement as surcharge. We have subsequently determined that the district is in a position to pay that.
Post-election pre takeover. Hence the number went from 28 4 to 34 eight. And at this point there won't be any surcharge. That's why any commentary to that specific point does not include a dollar figure. But to Parker's credit if the roles were reversed we both acknowledged the fact that if there is a. A hurdle or an obstacle that financially gets in the way of, of consummating this by the end of the year that before we would terminate it or it implode, so to speak, that we have written in a provision to, for a makeup payment. It is certainly at that time that we would the wagons as it were and work through those details and convey that information to all everybody that is party to the inclusion.
But that's where it came from. It's come, it's gone. We don't believe all of the consultants that we have surrounded ourselves with believe that we are in a position to make one payment inclusive of that 6.4 million. Hence again the $34.8 and, but we left the, we left the mechanics in the inclusion agreement if they're absolutely needed. I hope that helps.
Philip:
Yes it does. That sounds, sounds like it's gone hopefully. And then I was looking at Parker rates and I guess this that's already been touched on. But it sounds like the, our tiered rates based on lot size. Now I live in a pretty average sized lot so it won't really affect me but during maybe some of the summer months.
But our, our rates currently are based on lot size. And then we enter the higher tiers based on rates. And it looked like the Parker rates were based on a 6,000 tier 20,000 gallon tier. And I forget what was above that. Is that what our new rates, our new usage rates would be? Steve.
Steve:
Yes, that is correct. Our first year is 6,000 gallons but generally is included in a winter quarter average for most customers and for Parker Water residents the average usage is about six 16,000 gallons 17,000 gallons during the winter or during the summer and it's about 4 to $5,000 in the winter. Not dollars 5,000 gallons.
Ron quickly pointed that out. So it's 5,000 gallons again, winter usage and 16 to 17,000 for the average lot in the summertime. And again it's, it's up and down depending on irrigation season and everything we do go into the third tier. Anything over 20,000 gallons which for some of our customers with larger lots that does get to be a little bit higher. But with the normal Parker lot it does. The 20,000 provides them adequate irrigation during the summer.
Philip:
Okay wonderful. Thank you for taking the time to answer that. And thank you all for your hard work. That's all the questions I had.
David:
Thank you Philip, for that. And now you kind of get a feel for how doggone difficult it's been to get an apples and apples comparison and why we believed it be best to leave out any opinions and just leave it to the numbers that fell to the bottom. 98% of Castle Pines North Metro District residents look to have a monthly savings.
And as Steve pointed out first and foremost the capital fee of 30 some dollars and the renewable investment fee of $15 immediately goes away thereafter. It's all a byproduct of not only the rates that Parker has shared with you just now but also the usage which is obviously in control of each user. So thanks for that question. Any, did you have some more? I don't want, I don't want to cut you off, Phil.
Philip:
No, that's all I had. Thank you very much.
David:
Thank you sir. Charley, Charley Heard. Are you with us this evening? He was one of those that signed off early and so, good job. And all those questions and answers. Last but not least Paul, Paul Hartigan. Are you with us this evening Paul?
Paul Hartigan Castle Pines Resident:
I am, can you guys hear me?
David:
We can hear you. You have the floor sir.
Paul:
Okay, thank you very much for the opportunity to ask some questions with full disclosure. I did vote. I'm sorry. I live in Castle Pines North. I live in StoneCroft and I live on Stonedale Drive. So I am neighbors with both Chris and Rob. I did vote for the current CPNMD board of directors. I believe what we're doing. I believe you guys are right on target. I think the presentation the pamphlet you guys sent out the other day was top notch. I also have been involved with two consolidation slash merger conversations from a work perspective. I was a lieutenant with the Larkspur Fire Protection District when we went through merger conversation with Lakes Monument.
And I am currently working for an organization that we are having consolidation conversations with two other fire districts. My questions and the gentleman who spoke before me was able to elaborate on the risks that Parker has on the website. And I unfortunately did not go to their website to look. But what, what are the risks to both sides if this goes through. And if this doesn't go through?
And then just a crazy question because I just jumped through the hoops a few times with our homeowners association which is completely separated. But will you guys work to get AstroTurf as an option, make it easier for people who decide they want to install AstroTurf? That looks nice. It doesn't look like a putting green but will you work with those homes to you know try and make it less painful for all of the constituents to get that installed?
David:
Repeat. Not the last question but the question before your, your AstroTurf question, would you please.
Paul:
Yeah I'm sorry I'm using both headset and I'm not sure it's all working well but the gentleman who spoke before me talked about the risks that he found on the Parker website. What other risks are there with not doing this and what? And by doing it what? What are we not missing or what are we missing or not seeing that that we should all be aware of?
David:
I hear you and if I may address that from Castle Pines North Metro District directors' disposition on that. History demonstrates that an appetite to satisfy an appetite for renewable water requires significant funding and there's no source but to shoulder that. Expense amongst the residents 3,200 of us approximately to the tune of over $100 million is what our history is. The risk moving forward is to disregard the opportunity at hand or said another way to defer the opportunity at hand because this board will not waver in its stewardship of not only the day to day business but the future of this district when it comes to all of the business of the district.
And but we have teed up what we believe to be and found to be. We don't believe we know it to be a win-win situation when it comes to finding more renewable water for less. How much more? Keeping in mind that that 50% was based on zero renewable water unless you had 100 plus million dollars. We were talking higher fees, higher rates, higher mill levies.
Today what we're talking about is 75% renewable water solidified secure renewable water or a source of renewable water. And for how much? Out of pocket,t in additional weight on the shoulders of each one of us is. And so can we replicate that. To answer your question. I don't know but we would try. That's what's on the line. Are we prepared to defer or disregard what we've teed up this evening and over the course of the last three years in lower property taxes in more water more secure future a water future for the residents of Castle Pines North the epitome of the economies and efficiencies trickling down and into and visible on a monthly basis with our water bills. That's what's on the line. Those are the risks from our perspective. I don't know that Parker wants to address those but I'll tee it up. Steve, Ron, anything?
Ron:
Thank you Mr. Chairman. I'll try to address some of them. So, so some of the risks that we faced in the board was concerned at the Parker Water Board was concerned with is, you know, we did our best to figure out the cost to, to bring Castle Pines North in. And if we're wrong and it costs more that falls on all our customers, not just Castle Pines. So there's a concern out there you know are the pipe. What kind of shape are the pipelines in that type of thing. So as a risk that we're taking the big one for me is we're assuming the responsibility to bring a renewable water supply to another community.
That's a big deal. I think we can do it and we can do it well. But that is a risk out there. We're assuming that as well. So it's kind of more along those lines of just a liability that we're bringing on. But one of the reasons we took two years to do this was just to really to look at the analysis and to really understand both systems well. So hopefully that answers your question. I could talk about the artificial turf if you're interested but is there any other questions on risk?
Paul:
I don't have any other questions on risk. I think you guys have answered them. And after the artificial turf response I have one other question.
Ron:
Okay so on artificial turf we don't care. We in fact, we would, we support it. It's usually a land use issue. So it's the city's requirements and stuff like that which we're not part of. One of the things that I probably should say is our board we currently the philosophy is we, we provide some incentives to lower water use whether it's, you know, control or something that actually reduces folks as water use. We don't do like in Las Vegas. They would they pay a dollar per square foot of turf removed to be replaced with AstroTurf.
Our board doesn't buy in that philosophy. In order for us to fund that we have to take money from other customers to give to folks that want to reduce their usage. So, so our, our incentive programs tend to be specific to, to controllers or devices that make your watering more efficient. But as far as, can the community put AstroTurf in certainly doesn't matter to us but it tends to be more of a land use discussion with the cities.
Paul:
Yeah I was just questioning whether you guys would actually work with some of the. Parker and City Parker is a little bit different than Castle Pines North. There's a bunch of systems that each HOA is a little bit different. And.
Encouraging the hose to allow AstroTurf in people's front yards might, might go far in helping some people say heck yeah I'd put, I put AstroTurf in my front yard. I don't have to fertilize. I don't have to mow, I don't have to water. Which would then reduce their usage. And there is a cost benefit you know over time to make that happen.
The, the only other question I have I'll go back to the statement in the beginning about being in the fire service and having been through consolidation of merger conversations is there has to be a win-win for both sides. I understand I think I understand what the wind for the Castle Pines North people are. You speak to the wind for Parker.
Ron:
Sure I can. It's, I'll be repeating a little bit what Steve mentioned in the beginning of the presentation but what, what our customers will see is because we have more customers the property tax goes down. It's like oh $58 bucks a year. So it helps that go down. We have another partner in our long term water program which helps reduce the cost per house on that as well. So that's a value to our customer. And, and let's see what else. Well we would receive the $34.8 million. You could see. We see as well. We really are six feet apart. It's just the depth perception on the, on the screen, but.
Steve:
Yeah, in addition to the lower property taxes and as Ron said the economies of scale not only on the long term renewable water project but also other costs, regulatory costs and things that we will run into in the future. We'll get the cash payment, which helps to offset some of the initial infrastructure cost incorporate it within the plan. We do receive all the existing infrastructure and water rights without any debt attached to it going forward as of day one and it is a new revenue stream for the district. It's 3,500 accounts which does not cost Parker Water anything to bring these on economies of scale or huge in our business and having another 3,500 customers to spread the cost out helps not only Parker but also Castle Pines North.
David:
Let me, let me add to that guys because you were perfectly clear December 2018. And every opportunity that we've had to discuss this at in detail. And, and the other benefit to Parker, we heard loud and clear. And literally embraced the same feelings and thought moving through the process for our own customers. And that was, it wasn't going to cost Parker residents one red cent.
They were not going to bear any additional costs for this. And as I said earlier without any opinions or conjecture on my part or anybody else's part what came out of the mutual study was much the same for our residents and that is no additional out-of-pocket expenses. And I'm not going to be cavalier about the fact that the $34.8 million is not what our customers plug the piggy with all along for the things that we've talked about which the Conditional asset assessment report identified and what the issues of the AMI and the connection pipes and some of the water treatment plant upgrades etc. aren't going to pay for those were those are real dollars and.
They're meaningful dollars. And we had those dollars. But to ask our residents as they had in previous attempts for securing renewable water even at a lower rate to come out of pocket for anything the fact that we are not that it is zero for 75% renewable water as we speak was big and we couldn't be happier that we are on a level playing field with those that you represent in Parker that there will be no additional out-of-pocket expenses as it is written. Paul.
Paul:
Well thank you very much for the information. You have allayed my concerns. I appreciate the time and I seed anything I have back to Mr. President.
David:
Thank you so much. Appreciate your questions, your time and interest in the entire city and the business of the district. Again I would ask anyone that has just paid their bill as I did to take a look at it. You'll notice that underwater we've got four line items. We've got a renewable water fee. We've got a capital maintenance charge.
Those go away with the inclusion and an affirmative vote from the residents. Those go away. Those are the beginning of the immediate changes that you'll see. They go away. So I encourage everyone to take a good hard look on a monthly basis of what that alone would, would save them. You take a million for you divide that. Over the course of the 3,500 residents we have comes out to be about 4 or $500 savings on an annual basis if all was equal.
While we know that it's not there's going to be based on the science that we've done 2% of the people at least at the current usage rates and they're going to find out more readily and more easily that if their rates they want to amend they'll be able to with the AMI meters. But at this juncture 98% of the water users within our city will experience a savings.
It's with that, that we've gone through those that have signed up to participate and zoom with us. Tonight I'm going to open it up to anyone else that might be on zoom that I don't have a record of signing up that would like to speak. Is there anyone out there? Just join us now if you would please. One more call. Anyone that is not signed up at has joined us that would like to speak.
David:
All right. Well, it's with that Q&A that and council's presentation along with Parker Water and Sanitation District again thank you Steve Hellman, Ron Redd, Maleia Good. We appreciate you guys and thank you for your time and attention and the presentation this evening. I am going to ask my directors if there are any other additions, any other or additional comments or questions before we close the public hearing? Director Crew.
Chris:
I appreciate everyone joining. Thank you very much for all the participation from all the community members. Ron, Steve, Maleia thank you for being here. And thank you for also being a partner as we went through this entire process. This has been a long two years but it has been a very detailed and well run and well participated.
And the evaluation came out to be you know what? We hope so. We appreciate that. But I guess what I'd like to say is you know we have been at this for a lot longer than two years. When Castle finds norm perspective. And as you guys have all heard pretty much you know this is a win. We had a lot of courses of actions we had from the prior administration, a bunch of options that, that were investigated.
We had from our board a couple options that we investigated and this is a win for all of us. So I would like to say, you know, you know, we are going to get over 75% renewable water for less than $103 million. We are going to do it, you know, wisely or less money. And I would say 100% from my perspective.
And I know the rest of my board, the directors agree that we are 100% behind this inclusion. And I urge all my residents all of us to in May vote for this. And I also appreciate and thank you for the opportunity to serve on this board and to be a part of this group of directors that are fully engaged and fully committed to doing what's best for our communities. That's all I would have to say.
David:
Thank you, Chris. Director Crew.
Denise:
Just for the sake of the public that's watching as well. I got to say I'm pretty excited about the AMI meters. Any of us that have been through a leak or a pipe burst in your home to have that on your phone. And have an alert set up we'll save you. Thousands and thousands and thousands of dollars and a lot of headaches.
So I just think that is amazing technology that we're going to acquire assuming this inclusion moves forward. Second thing I'd like to, huge shout out to Mr. Ken Smith who has fielded so many emails more than we've ever received since we sent this brochure out. And can your responses have been diligent and informative and very very very helpful. So thank you for everything you've been doing. I know you've been putting in the overtime last few weeks so we appreciate it. And that is it. Thank you.
David:
Thank you Director Crew. Appreciate that. Director Lowen, anything?
Chuck:
I would just like to echo what Chris just mentioned. And Denise it's, it's been rewarding to be on this board. It's been rewarding to see the very positive potentially positive changes we can make to this community in partnering with Parker if the inclusion agreement passes. I think that Castle Pines North is really going to benefit this, from this with lower water rates.
But also, I believe that the real estate prices will be helped in a positive fashion. So a great job guys. Thank you and for all the consultants you get a lot of kudos. Our attorneys, our water consultants are everybody. Everybody that has pulled together to put out help, put out the words in this brochure really get some kudos. The question was asked, what are the risks?
If there are any we would have discussed them earlier. They would have been in this book. There may be risks. I'm certainly sure there, there will be down the road but I don't think any of us can tell that there's going to be another pandemic coming up. So we have to take our best shot. And this is an excellent, excellent shot. Thank you.
David:
Director Merritt, any comments?
Robert:
I would just like to concur with all the other directors. And thank everybody. As I said Ron and Steve and Jim and thank everybody for being able to participate in this. And hopefully it'll be a culminate. Because this is our best foot forward and delivering on the promise that we had had for going over two years now.
So thank you all very much and looking forward to the vote. Appreciate it. And to all the constituents that may have any questions please forward them to us and Ken and the staff and everybody that's involved. Thank you for getting back to them. And I just want to thank everybody involved. Appreciate it.
David:
Thanks Robert. Appreciate those comments. It is with those final comments from this board. I'm going to, I'm going to open it up for final comments from Parker as well. Steve, Ron, any final comments you want to share?
Ron Redd, District Manager; Parker Water & Sanitation:
Well we appreciate the opportunity to be here. It's, it's wonderful the transparency that we've had in this project. So I just thank you guys for that. It's been a couple of years and it's kind of exciting and I love to see the direction we're going. So I don't know. It's, it's a good process and I appreciate all your help on that.
Steve:
As far as my final comments I would just say when we all started this there was probably some skeptical views of going forward with it. And I think the due diligence that we did on the project of looking at the assets and putting together a really solid plan and financial view of what was going to happen is speaks volumes of why we're here today and considering this inclusion. So thank you for the opportunity.
David:
Very good, thanks guys. And. We can't thank you enough for your neighborliness. Not, not just because you're our neighbor to the East but every step of the way. Your board and your staff have been kind have been respectful and considerate of everyone on this side of the highway. And, and I, I've never heard.
A bad word or a disgruntled person involved in it and it has been an absolute pleasure working with you all on this. It, it's almost too good to be true. I mean I'm, I'm sitting here with a 2015 water plan. Not to belabor the point but I don't know how many hundreds of pages this thing is. And while it, we found it in a box in the archives there on page 12 of the executive summary which is in the front of this thing.
Is, is the same key point that we came to when we were asked to consider representing the residents of Castle Pines within the metro district. And, and you may recall this book was the, the big water plan for the residents of Castle Pines. It was going to secure 50% renewable water at an additional tax levy both property as well as rate and fee increases of $103 and $120 million albeit never funded.
300 options drilled down to ten and the 10th one, the 10th one was, was what they called alternative ten. And the only note here in the executive summary was that it includes an elaborate chain of third party agreements in order to work and the full cost of complying with those agreements. But it finishes up by saying, was very much undefined at the time of the study guys we just defined it. Congratulations.
More renewable water for less need we say anymore the science proves out what your hard work has been a byproduct of and I appreciate being a part of it all of you. If there are no further comments, questions, concern, Mr. Worley.
Jim:
I don't have any of.
Describer:
Jim’s mic cut off briefly.
Jim:
Sorry about that. I'll add to all these compliments. I know Ron. I've known Ron for a number of years. He's a quality individual and I just met Steve two years ago. The jury's still out on him but just getting great people to work with. You know, when you, when you take on something like this you've got to have quality people to work with.
In my opinion I'm very fortunate to have a board that's been totally supportive of this. But these two gentlemen Emily two you've heard her name. But I don't know where she's hiding but she probably has done most of the work. But these, yeah these two gentlemen and that lady have been a pleasure to work with over the last two and a half years.
And, and I want to say it publicly, I appreciate the professionalism that the organization has shown us and me personally. And I really appreciate that. So all we're looking for now is an action on the inclusion agreement by the board assuming you're ready to move forward on that and then we'll keep moving forward. Thank you.
David:
Thank you Jim. Appreciate those final comments. I'm going to defer to my colleagues if there is an appetite to consider.
Continuing to pursue this inclusion, make it in the form of a motion. Now I'd like to make a motion to approve and continue the pursuit of the inclusion as proposed. We have a motion on the floor by Director Lewis in the wee hours.
Chuck:
I’ll second that.
David:
We've got a motion and a second regardless of the time it oversees by Director Lewis and Director Lowen to continue to pursue the inclusion as presented, cussed and discussed this evening to the liking of our residents. And it is with that that I ask for any further comments, questions, concern for my colleagues, any?
Board Voting All Speak:
Hearing a resounding none. All those in favor when called upon please indicate your liking or disliking with a yay or nay. Director Lewis. Aye. Director Merritt. Aye. Director Denise Crew. Aye. Director Lowen. Absolutely aye. Director McEntire is aye. That is a resounding unanimous approval. Motion carries to continue. Council, finance director. You know the drill starts at 7:00 o’clock tomorrow morning.
David:
So with that I'll look for another motion to adjourn, anyone?
Chuck:
I'll make the motion.
Chris:
I make a motion to adjourn.
David:
No lullabies, Chris we've got a motion on the floor and a second to adjourn. All those in favor in unison say aye. Aye. Aye. Hearing none opposed, meeting is adjourned. Thank you very much. Thank you everybody for tuning in. We appreciate you all. Thank you.