January 22, 2019 Video Board Meeting

Transcript

AGENDA

Board of Directors Meeting

Tuesday, January 22, 2019, at 6:00 P.M.

7404 Yorkshire Drive, Castle Pines, CO 80108

1. Call to Order Regular Meeting/Pledge of Allegiance.

2. Roll Call/Announcement of Quorum/Disclosure of Potential Conflicts of Interest.

3. Approval of Agenda.

4. Approve minutes for the Regular Meeting of December 17, 2018.

5. Opening Public-Comment Period. (3-minute maximum per person)

6. Open Space Manager's Report.

A. Recommendations for, and discussion about, the process, timeline, and cost of transferring ownership, maintenance, and irrigation responsibilities of various landscaped/xeriscaped HOA-entries from CPNMD to respective HOAs.

B. Recommendations for the process, timeline, and cost of transitioning away from the Kentucky Blue Grass to water wise DogTuff grass in areas surrounding the community center and other District-owned locations.

7. Legal Counsel's report.

A. Annual Administrative Matters

B. Director Qualification Affidavit

C. Disclosure Matters

D. Annual Administrative Resolution

8. District Manager's Report.

9. Board Action Items.

A. Establish the process and timeline for filling a vacancy on the board resulting from Director Norman Froman's resignation.

B. Consider Financial Report and Items from Finance Director.

C. Consider approving/ratifying current payables for December 2018

(Check numbers 24048 ñ 24144)

10. Directors' Matters.

11. Opening Public-Comment Period. (3-minute maximum per person)

12. Adjourn

Describer:

The video starts on graphic with a white background and forest green letters which says ìCastle Pines North Metro District Board Meeting January 22, 2019î. The meeting opens on a shot of board members Chuck Lowen, David McEntire, Robert Merritt, and Denise Crew present.

Board President David McEntire:

Okay. Good evening everybody. Welcome to, the board meeting of directors for Castle Pines North Metropolitan District this Tuesday the 22nd, 2019. Before I call the, meeting to order. If you'll all join me in the Pledge of Allegiance would be appreciated.

All Speak:

I Pledge of allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

Describer:

The board members and the audience rise from their seats and recite the Pledge of Allegiance, as the camera pans from left to right from the board to management staff to the audience and back to the board. When they are done, they sit down again. David requests something from Chuck off-mic.

David:

Like to call the regular meeting to order. With that roll call and an announcement from each director. If there is a, potential conflict of interest, please disclose. Same. Otherwise, we will announce a quorum at the end of roll call.

Director Crew. Present. No conflicts.

Board Member Director Robert Merritt:

Director Merritt. Present. No conflicts.

Board President Chuck Lowen:

Director Lowen. Present. No conflict.

David:

I'm present. I'm McEntire, and I have no conflicts this evening. We do have a quorum. Item number three is the approval of the agenda. Directors, you've had the opportunity for upwards to a week now. To, work on the agenda we have before us a final agenda. Is there any other comments, questions, or concerns before which time we accept a motion from one of you to approve the agenda. Hearing none. Can we get a motion?

Board-Voting All Speak:

I'll make a motion to approve the agenda. We've got a motion on the floor from Director Crew to approve the agenda. Is there a second? Second.

We have a second. By Director Lowen. All those in favor? Please signify by saying I. And I, when called upon for your dissent, if you so be it. Director Crew. I. Director Merritt. I. And Director Lowen. I. motion carries agenda approved. At the same time, you've had, as much time with the minutes of the regular meeting of December 17th, albeit lengthy.

We sure appreciate, all of your time. Then and then review the minutes. If there are no other adjustments to the minutes, and they include all of your updates, I would look for a motion to approve those minutes from one of the directors.

Board-Voting All Speak:

I make a motion to approve the minutes. Have a motion to approve the minutes by Director Merritt. Is there a second? Second.

I have a second from Director Crew. When called upon, please indicate whether or not you approve the motion or not. Director Lowen, I approve. Director Merritt. I. And Director Crew.

I. Motion carries with mine. I as well. Item #5.

Describer:

The District Manager walks to the board table to drop off a piece of paperwork. David and Robert both look at it for a few seconds.

David:

Item #5 is the, opening of the public comment period. Of course, everyone that's come in has had an opportunity to pick up an agenda. You can see, as it is described in item #5. We ask that you keep your comments to three minute maximum per person. Don't take advantage of me where I have, allowed you to to to spend a great deal more time up there.

I get yelled at. But I won't tell you by whom. I've got the sign in of the, folks in the audience that wish to speak tonight. It appears as if we only have one. And so we ought to be able to handle that fairly easily. It is Gary. Is it Hoover? or. I'm sorry.

Turner. Gary. Turner. Turner. Turner, I got you. I got you. It's probably my eyes and not your writing, so I apologize for that, Gary. But, if you'll introduce yourself your address, and and address the board. You have the floor, sir. There it is. There it is.

Describer:

The camera pans and zooms to Gary Herner, a 16-year Castle Pines resident.

Gary Herner, Castle Pines Resident:

My name is Gary Turner. I live at nine, seven, five Bramble Wood Drive, Castle Pines. I've lived there for a little over 16 years. So I'm a long time resident. I brought something to show my good friend Denise. Denise Crew, which is a prototype of a product of an engineer that I've worked with for the last three years and developing this.

He's a world class engineer. He's in his 90th year. He has helped design the parachutes and everything for the Viking lander. He was the first person to test the Titan missiles in the static tests. He has a lot of patents from Martin. So this is a product that he asked me to present. It's a simple product that is works on physics and convection.

You take it and you put it to the, under the sink. That's furthest from your water heater. After a few minutes, maybe ten minutes or so, from that time on, when you turn on your sinks and any sink in your house, it immediately has warm water or hot. You don't wait for the shower for minutes, turn it on, and then start to get ready to undress and to get into the shower.

That's that hot. That shower will be hot in seconds to your setting. It uses no electricity and no gas. I can get data to you some time. When I talked to Robert, Raymond this morning and told him I was going to be here, and so he. We talked, I think, the other day, Denise, about this. So this is a handmade model, and the tooling is just being finished right now.

Describer:

Gary pulls out a white box and starts unboxing the production model of the circulation device.

Gary:

And the production model will look like this. And it will include the hoses that are required. It takes maybe ten minutes to hook up. It's going to take longer to clean out your, your, the cabinet under your sink than it is to hook this up. So it comes along with the wrench and with the hoses that are required to make this operational.

This is, Raymond had a different product out over 20 years ago, 25 years ago, and they sold approximately 20,000 units. And so far out of the 28,000 units, there has not been a single failure. It's the material that's used. Doesn't require any cleaning, anything. It will never gather the minerals and become clogged through deposits. It's all NSF certified materials.

We've done everything to get the best of the best. It's made in USA. Completely. The tooling. The manufacturing is done right here in Denver at Coroba, which is a very good sized company. And even the hoses that we include, we insisted that they be made in USA. They're made by BrassCraft. They're the best hoses you can buy.

So everything has been put together and we should start into running our first samples, which will be about four weeks. And, then I will be able to get it to the other members of the board if they want to try. But right now, I, I knew Denise, and so I gave her a call and said, would you would you try it?

And she said yes, she would be happy to. So that's what it is and it's coming. But in the 27,000 that he has out or 28,000, they estimate it saved over 4 billion gallons of water already. The only problem with it was it was very expensive, a lot of brass. And it took a plumber to install. The something is going to be very inexpensive, should pay for itself in very short period of time.

Describer:

The camera pans to Denise, then back to Gary when she's finished with her question.

Denise:

May I ask you a question or a couple? Sure. Do you have this on the market yet or not? Pardon? Do you have this on the market?

Gary:

No. Not yet. Absolutely not. You're the first people ever to see this in public.

Denise:

I just think it's super impressive. And from from what you told me, it circulates the water, which is the cold water that you normally get out of your tap, goes back into your water heater so it keeps warm water in your line. Is that cold? That's correct.

I have that right. That's correct. Well, I'm. I'm your first volunteer. At least from our board to have one installed, and I'll happily report back.

Gary:

Well, I tell you, it was difficult for Raymond. Like I said, he's 90 years old. He's got a little shop in his garage. Got a beautiful home and a nice shop down in the basement. And very difficult for him, though, to to do this. And he's made three of them and he hasn't been able to finish the other two because he has a problem with us back right now.

And he said, I think I can get them done tomorrow. So I said, don't you dare go downstairs. Don't do this until you're sure that you're back. Is is good. But, the guy is he's absolutely a genius. There's no question about it. When he was just a young man. Matter of fact, it's one of his first jobs as a really young, young man was to design the experimental V8 engines for Ford Motor Company.

So he's been, you know, in top, top jobs all his life. So anyway, I just wanted to let you know that it's coming and maybe, you know, we can do something with this because this will save a ton of water. I read in the National Wildlife Foundation how to save water, and I want to put that on our website.

What you do is you take a couple of buckets, you put them in the shower, you turn on the water and fill the buckets until the warm water comes. You take the buckets out, you take your shower, you dry off, you take the buckets downstairs or wherever you're going outside to water your plants. Now, I don't know many people that are going to do that.

Water is precious, but it, I don't know how many will do that. Yes, sir. It's really will change it. I have one in my house. As a world of difference, I can tell you.

Denise:

Thank you so much for sharing that.

Gary:

You're welcome. Thank you. Thank you for the time. I was surprised that was this place. I wasn't thinking I was going to forget. Thank you.

David:

Thank you, Gary, for that presentation. Director Crew. You've put yourself in a in a sweet spot. Without giving the rest of us a chance. And, so with that, if you'd be so kind as to not only be that, guinea pig, if you will. Would you also bring back some information? To the board? Not only, given the opportunity to test it, but, from this moment forward, if you run into any of the, who what, why, how or where?

Pieces of information associated with this kind of technology. Let me give you an example. In the building industry.

And, and and I don't know, to be exact, but it wasn't too long ago. Maybe as much as a decade ago. Most of the states were, embraced the adoption of the Iek, which is the international energy conservation code. And in that, if, the local municipalities, embraced that or did not subsidize a code modification to it, it required a recirculating, system anyway, albeit this one, he's, Gary said, did not require batteries or electricity. The ones that we have in our homes today require, a power source. And you put them in the same location as you would this one. In, in the fixture furthest away from the hot water heater. And and everything is, every other picture sure to follow.

But it's it's it's monumental. It's crucial. But I think it's code now. So, like, I'm not sure what year your home was. But bring us some of that information. It would be interesting to know how many homes inside of our city would, were actually built with recirc pumps and and those that were not as a part of, of, are looking into maybe, formulating a credit for those that were to include it, much like, the drought tolerant grasses that, were put, you know, replacing turf with, with, extra scape.

So, congratulations. To them. You're. You're it. Okay. All right. Good. Thank you again, Gary.

Describer:

The camera pans to the podium as another Castle Pines resident walks up and turn on the mic.

Bill Ader, Castle Pines Resident:

We were on your election force. I've been a master plumber since 1978, and I'm very familiar with the restart pumps that work off electricity that you're speaking about. Mostly in commercial. Very few of these are in our neighborhoods right now. And if you have one, which I have, it's electric. I can't tell you how much water this is going to save.

You just cannot believe it. I've tested at home without the buckets, but you get a shower and you turn it on and you can't get hot water for five minutes. You know, you can read the paper. This thing will give you instant water. Just save a ton of water. And I just wanted to let you know from the plumbing industry, this thing will, start a fire.

It'll go. And it. It's too bad that we don't have code where they do require this. And all new construction, but there's very few in Castle Pines that have it.

David:

And you're sure that our current, IRC and IECC is not requiring it?

Bill:

I'm not totally sure.

David:

Well, let's look into it, because I think that the I think that it it is but nonetheless, there's going to be a period of time, depending on the age of the house, that it wasn't. And it is, it's an awesome, water conservation tool to have in the house. Moreover, it's a real comfort to have hot water on demand. And so, with that in.

Bill:

Mine works great in the, there's no offset for that. I know I got a, rebate from the city when I put it in 15 years ago, but, I think then they were like $325. Well, you're talking very minimal for this unit over that one. So the cost originally was if they didn't give you the rebate, people didn't put them in.

And I, of course, took a plumber to do it. Also.

Robert:

Excellent. Thank you. And just, they're asking us for your name and your address for the rental.

Bill:

BIll Ader. A-D-E-R. Oh, sure.

Describer:

The camera follows Bill to the board as David hands him a sign-in paper. He walks back to the podium to confirm that he spoke during the public comment.

Bill:

Oh, my name's on here. It's just I have to put. Yes. Is that correct? The. I spoke. Thank you.

Thank you. We're going to close.

Bill:

You're more than welcome.

David:

We're going to we're going to close the public comment period. And, and move on to item #6, which is the Open Space manager's report is our Open Space manager ready? You have the floor, Craig.

Describer:

The camera pans between the board and the podium after Bill turns in the sign-in sheet. Craig Miller is seen at the podium. The camera will pan between them as they discuss.

Craig Miller, Supervisor, Parks, Trails, and Open Space, CPNMD:

Thank you. You all have my monthly report. Did anybody have any questions on that?

David:

Heck of a report. I could see that there was a tremendous amount of work. Nothing short of what this board was asking for. And and and extremely informative. And it's going to be valuable to somebody down the line. But what really is, is, interesting to me is this list of communities that you provided in your report where there are more communities.

If I, if I recall correctly, there were more communities. That were irrigated and maintained by. HOA. I'm wrong.

Craig:

Now, there were 20 there's 28 neighborhood entrances that are maintained by HOA, and there's 21 that are maintained by us.

David:

Yeah, I see what you're right. So I was right. You're right. Yeah. So there's more by the HOA. And so it was with that sense, that I, began this, due diligence on your part and, and again, appreciated it looks like, I know it took a great deal of time and effort and thought on your part.

And as the board considers it moving forward. I'm wondering if, Jim, you couldn't work with Craig and and potentially, run it by Kim. The the, thought of writing a letter from you. To each one of these 21 neighborhoods that have entryways and irrigations maintained, maintained by the district, if they have any appetite whatsoever in taking on that responsibility.

Which would which would include, if possible, the district conveying the, the, property to them as well. But also, along with that conveyance, they would pick up at least in from the for the initial draft, they would pick up the expense associated with, that separation. I just know that, some of the HOA fees have voiced an interest of of pride.

And that's a constructive characterization on my part, that they would like to have more control of their entryways and, and, while we are, as I said, laced with information here due to Craig's, work, maybe just an interest letter to find out whether or not we put this information in the file and referred to it on an as needed basis, or there's something more to it.

If we get any responses back. What do you think about that, Craig?

Craig:

I that's fine. I just want to point out the complexity of this. David Anderson spent an awful lot of his own time trying to come up with cost estimates for it because he's our irrigation expert and he knows our irrigation system as well as anybody. And unfortunately, that's not very well. It's a very convoluted system, that's been constructed and repaired improperly over 20 plus years.

And that's why I noted there that initially, to get an estimate, we're going to have to pay somebody 8 to $12,000 to get an estimate, because they're going to have a pothole and do some exploration. And that's just a preliminary guess. If they start getting into more complexity, that initial cost. The estimate for the estimate may go up, let's put it that way.

David:

But you know, again, it is a laundry list of reasons for continuing to keep this ball in the air if there's an interest. Simplification of all of that given the opportunity to convey it, owner control, given the opportunity or the interest to take it, cost savings.

Craig:

Right. I will note there is limited to no cost savings to us because these and entry ways get maintained by our mowing contractor as he drives right on by. So it's, at the most we might save a thousand $2,000 a year. The maintenance involved in these entry ways for us is minimal. So just my two sets and plus the other thing, the point I made last month, we've invested pretty much close to $600,000 in re landscaping every single neighborhood.

And it's all xeriscape. And there's not many people that know how to maintain xeriscapes. My guys do. So that's another caveat that you might want to throw out for the HOA, because it's a more complex, version of maintenance. It's not mobile and go as we call it. It's not easy. So you have to spend some time on it.

So you'd have to get that commitment from those who. Otherwise we just have $600,000 over the last five years down the drain. Just my two cents. Again, I take a lot of pride in what we've done.

David:

Sure. And none of this has anything to do with not recognizing that pride. And that work and that effort and and the accomplishments, as much as trying to simplify and and take advantage of every economy and efficiency available to us and, and and passing the responsibility and the opportunity to, the owners, I think is, is is a good first step.

Ever since we're now is is as much informed as we would be in putting a deal together if someone was interested, but sure. Again, thank you for your work.

Craig:

And then, the other, did you have any questions on the DogTuff grass? Because you had requested some information on converting the community center to that? It's not going to be possible simply because of a cost limited availability of flats. As I noted in my report. Plus, we're about 50% shade here and dog turf has to be in sun.

I gave you a demonstration project that we could do up in the north end of town. I'd actually like to pursue that the summer. It fits into our landscape budget, and I think based upon the success of the HOA#1 and their conversion on Yorkshire and, Monarch. Yeah, down, down south, they're, they're conversion to DogTuff grass.

One. Great. And again, it'd be nice to have a demonstration plot up north. So that's my two cents on that because it is the way of the future. But again, with limited flats, nobody's got the 3 to 400 flats grown this year that we would need to do any major project. But I can certainly get the smaller amounts of flats.

David:

Well, it's certainly interesting, that it wasn't a no, because of the shade or you didn't want to cut down the trees, and I'm not sure that that would have, taken the direction that we wanted.

Craig:

And you're talking to an arborist my friend. So if you want to tee me, that will do it.

And an arborist kind of guy myself, but, I'm going to defer to, Director Crew on on responding. With regard to the, tuff grass. Any thoughts, moving forward on Craig's report and or his recommendations, or do you want to take that under advisement a little for a little while?

Denise:

You know, in all honesty, I have not made it out to go see the patch of grass over by Buffalo Ridge. Pretty sure it's covered in snow right now. So until I get a chance to look at it up close, I really don't have a comment yet. Sure. But I will.

Craig:

That sounds good. One other thing. If you have no further questions, I want to give kudos to, David Anderson and Natalia Maldonado, my two employees. They've been through two very difficult snowstorms, major equipment problems, that came in on Saturday to move the snow and blew out hydraulic line. And it took him about four hours to figure out what was wrong.

And by then it was too late to finish it. So I had to he had spent his Sunday plowing, had the same thing happen to day, the hydraulic line. But fortunately they had bought some spares. So I had to help him out in the field for about two hours, changing the line in the freezing cold. Shortly after that, he buried the bobcat.

One of our guys went and buried a truck trying to pull him out. And a third one of our guys went and pulled both of them out. So it was an adventure today, without a doubt. And everybody's pretty cold. I can tell you that.

David:

Well, I've seen him out, at sundown, so it seems like it's ending on a higher note than it began. Yeah. Robert?

Robert:

Appreciate your efforts with that. And also, hopefully there's. I read your report as well, and the trailers will help out with that bobcat. Yeah. I had two questions. Sure. First one, is there any availability to the design that's going into the entryways that the, neighborhoods can view? Is it online or.

Craig:

Each neighborhood has its own unique design. I have electronic copies and paper copies of all of those. So it's not a problem to turn those over to anybody that's interested in seeing them. But what we basically did is we tried to do a theme in each neighborhood of a neighborhood, have two entry ways. The entry ways were similar in nature, but each individual neighborhood has a different kind of xeriscape and a different entry way, just to just to highlight the kind of plant materials and the kind of designs that you can actually do here in Colorado that save a lot of water.

Robert:

Maybe we could implement that on our website, so each person in their own community could look it up and just click yep.

Craig:

We can I it'll probably take me about 2 or 3 weeks to put it all together. But I can get that posted on the website.

Robert:

Okay. And then people can access what the design is, for their neighborhood. And also, is there a master map that we could put together for the red and pink associated points that you had on this one?

Craig:

Oh, on, on on this map here on the back.

Robert:

The black and white map. Yeah. We need the red and pink dots. They actually understand.

Oh, you don't have you got a black and white copy? Yes. Obviously. I put a lot of effort into coloring that up and making it really sparkly. But.

Absolutely it, in fact, I've got that that master map, I've got that very one there, plus our master maintenance map. Plus I also have a I think it's a ten page booklet that Jim is aware of that gets into a a little more detail on each part of the neighborhood. It breaks it into ten different pages instead of one.

So I can post that online or I can email it to you whatever you'd like me to do.

Robert:

Well, that was mostly just for the board. We can all live there. I'll email each other. Interested in it, but, that would make further conversation easier. From the stuff that you put together for us. Thank you very much for your efforts. No problem. Your cold weather work.

Craig:

I'll get that. Emailed off to you guys tomorrow. Anything else?

David:

So your thought is to have Craig put the two designs on, the website under his, tab so that the folks that are being solicited for interest by Jim. Jim can actually make reference to those two designs on the website. So there's some touch for you.

Craig:

It's actually more than 2 to 2 designs. Like I say, for 21 neighborhoods, we probably have about 14 different designs because.

David:

I know you said there were.

Craig:

No if if you had two entryways, the designs were similar, but if you didn't, or you are different neighborhood, your design is different. So we've had a different design put in for every single neighborhood. So I think there's about 14, but I can get them up on a link online.

Robert:

I think the design, well, I think the design is complete. It would just be so people could see what was going to be their entryway.

Craig:

All the designs are completed and have been installed with the exception of the Stone lot neighborhood.

Describer:

David asks Robert a question off-mic.

Robert

Our neighborhood is one of them. And I've been asked, what's it gonna look like? And, I just say I don't know

Craig:

Are you in Stonemont? Stonedale correct. Or Stonedale. Yeah, yeah, I've got the design set for that. And those are going in the spring.

Robert:

We can just individually do it for me. And then if there is interest, we can talk about what we need to do from there. Okay.

David:

You obviously have the designs, in black and white or in blue lines. You have them colored up at all?

Craig:

No, they're not colored. They're all black and white. Landscape designs on PDFs.

David:

However, you probably have a as built picture of all 14 somewhere.

Craig:

I don't have all of them photographed. No, that's that's something that we haven't had a chance to do at this point.

David:

It's always a nice embellishment to have some color photo on there. Yeah.

Craig:

That's that's something that I can collect this spring. I mean, I've got some of them, but not all of them. And most of the pictures that I have are under construction pictures which are not that impressive. So what I need is I need the more matured landscapes, like for instance, on Hidden Point, all those meeting islands that we just did, last year, they finally starting to come in and starting to look pretty good.

So by next spring, they'll look pretty good. So I'll get some representative pictures to go along with those things. But just to be clear, all you want right now is the designs for your neighborhood, right? You don't want me to post any of the other designs on.

Robert:

And to find people, show interest, and it would be nice if I could show them something. I sure would like to offer that to other residents if it was available, and maybe even on the individual basis. So we're not doing a lot of work for no interest.

Craig:

Okay. And like I say, it's it's easy enough for me to set up a link on my zero skate page and say, neighborhood landscape designs. Excellent.

David:

Not yet until you're able to put color, put that photo gallery together. Perfect. It'd be awesome. Perfect.

Robert:

How about you and I work on it before we release it? And, we'll go from there. Okay. Sounds good. We'll do the one neighborhood, and then if there's interest, we can go from there. Sounds good. So nothing, public yet until we work on it. Perfect.

Chuck:

Craig, Thank you very much. And, thank Dave Anderson for putting this pemrandom together. I could tell it takes a lot of work. I just had one quick question on the third page, and it may be my inability to read correctly where you come up with the approximate cost. You state, that an HOA, but we'll need to buy a one inch tap to make the irrigation work.

Craig:

Somebody's gonna have to buy a one inch tap, because to separate out these neighborhood entrances, each neighborhood entrance is not just the entrance standing by itself. It's also strips of sod that go in either direction alongside the roads. So we need to separate out. Checking with David, he said each neighborhood entrance, based upon the square footage that we would carve out, would require a one inch tap per hour tap sizing, and we have to have two one inch taps to do the rest of the turf.

So we only have two inch to an inch taps out on almost every site. So somebody's going to have to buy an additional one inch tap for each one.

Chuck:

Okay. That's that's clear. Thank you very much.

Craig:

You're very welcome.

David:

Thank you, Craig. Thank you.

Describer:

Craig grabs his papers and takes his seat as the camera pans back to the Board of Directors.

Okay. Thank you again for, all of that work in the report. And, good job on keeping the snow removal, working. Item #7 is the, legal council report. Council? Are you ready?

Describer:

The camera pans and zooms to Kim Seter at the podium. As he discusses his report, the camera will pan and zoom in and out between the board and the podium.

Legal Counsel Kim Seter, Esq.:

You have a copy of the legal status report in your packet? There are a number of things in there that said they would possibly come before you tonight. Most of those are the Legae Ranch Acceptance of Facilities. Those are not ready tonight. So we have two items. One is the Director Qualification Affidavits and Disclosure Matters. Those have been handed out to you, and we'll just talk to you after the meeting about what needs to be signed and where your initials need to go.

The purpose of those is to inform us and to inform the state of any conflicts that exist, so that we can protect the board action. If if one of you has a conflict and we see it coming in a board meeting and you're not aware of it, which can very easily happen, we'll point that out and have you step aside for the vote or whatever it takes to protect the board's actions.

But we can deal with those after the meeting. The other item is the annual administrative report. This is or resolution. This is a resolution that we put together because the statutes contain a plethora of things that the board is required to do. They're things that you're not going to do, but the burden is put on you. So those are listed in that resolution.

And then your resolution delegates and assigns responsibility for those items to the people on your staff and your consultants who generally deal with that. So it includes, the legal work includes the accounting work includes Jim's work. It also then renews the contracts for us, for Amanda, for Jim. It also takes care of your posting place designations that you have to do annually and assigns responsibility for all of the annual reports that have to be filed with the state, as this is written.

Now, if you approve it as it is, nothing changes from last year. If you want to change something, this is the time to do it. Now.

David:

Council. I, had the opportunity to read the, report as well and, but short of the two applicants, were matters, pertaining to, final acceptance of development improvements, on that checklist for final improvements, for the district, is it inclusive of a, GIS file?

Kim:

There certainly are as built maps, but I don't know if they're if it requires electronic.

District Manager, Jim Worley:

I don't think it does to be honest with you.

David:

And Jim, I'm sure that you and possibly Kim know the importance of of something like that. And where where the industry is moving at Mach speed and preferably, out of the coffers of the basement in the as built maps that are always gone when when need be to participate in a GIS environment is is absolutely critical.

And, we have a chunk of the city that, of course, may be beyond, pulling those maps together and, and uploading them, but I would strongly encourage that. We immediately amend to include, prior to any further acceptance whatsoever of any improvements that we not only identify, who our JS file bank is, is going to be your access or holder.

But the files that are an absolute minimum from each developer before an acceptance is given. Okay. Also, and so, you know, it's good that they weren't ready because if it didn't include it, we wouldn't have been able to act on it, I'm sure. This, work that you, gave to us. Kim.

I can't tell you how many times I wanted to nap.

Describer:

Kim and some people in the audience laugh at David's comment.

I mean, this is got to be some of the driest. He said he didn't say she should have in sure to hit him, or else you're in trouble and we're all going to jail. You know, this is scary stuff, but it's something that I. I certainly read when, we took an oath and, entered into an agreement with the residents, before, I didn't see any nuances in it.

But for anyone that's interested in the, burden of responsibility that a director has. Goodness gracious. This is a public document and the one that I sign. Feel free to ask for a copy of it and and hold me to it, but it is it is lengthy. It's deep. It's broad. And and in some cases, appropriately general, but our feet are certainly to the fire.

And if, If Chuck known that he may not be sitting to my right. I mean, completely I, I kind of I think I said it was maybe four pages, but.

Kim:

It's not with that in place, you can now point to the rest of us, though, and say, why didn't you get this done?

Chuck:

I'm sorry, I have to plead guilty. I did not make it all the way through. I got home last night at 1:30 in the morning, and I read it today in the office, and the only thing that woke me up was my head hitting the desk. So no offense, good job.

Kim:

Legal work is always so interesting and fascinating.

David:

Well, and this is now, you said it's a new requirement that we, engage in, or we sign off on this on an annual basis.

Kim:

It's not a requirement. It's actually something my office started doing. Okay. Because we represent you as the board. Sure. And in the statutes, there are all of those things that you are responsible for. The statute says the board shall.

David:

So as a firm, it's a CYA.

Kim:

No, it's actually a COA for you.

David:

Oh, well, thank you. Because it's. We appreciate getting that straight.

Describer:

The audience laughs again.

Kim:

What you're doing in that document is saying, are you take care of this, this and that, Amanda, you take care of this, this and that.

David:

Maybe we could retitle it that way. We could. In any case, if it's not lost and in, yeah, the fluff of responsibilities and, we'll get that to you. You've handed them all out tonight, Beth. Did you? Everyone has one. And, we don't have to take an oath, nor do we have to have. Is is it required, to be notarized or, attested and.

Kim:

We'll take care of all of that.

David:

Okay. Very good. Then directors.

Robert:

Blood sample that's required as well. I think deep in there.

David:

DNA swab anyway. Yeah. Okay. Very good. Thank you, Kim. Item.

Kim:

David, are you gonna entertain a motion to approve the annual admin resolution? That's the one delegating all of those obligations.

David:

No conversation in that motion about the disclosure matters just.

Kim:

No, the disclosure matters are something separate.

David:

Okay, then then, if if, any of my colleagues would like to make a motion to approve, the annual administrative resolution as submitted to us this evening by council, I would entertain that.

Board-Voting All Speak:

I'd like to make a motion for the annual administration resolution of Castle Pines Natural, North Metropolitan District of 2019. That's been submitted to us resolution number 2019-001.

Roberts made a motion to approve that resolution. Is there a second? I second it. When I call on the director, if you will indicate your affirmation of that motion or dissent, do so upon being called on, Director Lowen. I approve. And Director Merritt, I. Director Crew. I. And Director McEntire is is an as well, motion carries, council. You good with that? Okay. Very good. Thank you again for the report. That's nice job handing those out. Really did a great job. Item #8. District Manager's report. Jim, you have the floor, sir.

Describer:

The camera pans to Jim. As Jim and the board discuss, the camera will pan between them.

Jim:

Thank you sir. Good evening everybody. And you've got my report in front of you. I don't really have much to add to it, except I will say that it 6:00 this morning. I was fighting our element this morning, of course, Craig was out pushing snow, but I was going to a meeting down at the PCWRA, that we had to be there at 7:30.

And so those of you here are sitting in a nice warm house. I hope you thought about me while you were there. You're welcome. No, it worked out fine. As I noted in my report last month. I mean, you know, sometimes you go to a meeting, you don't raise your hand and you get elected. I was elected chairman of that last month.

So I run the meeting. There's three board members on there. Of course, I'm one of them. But the only thing I wanted to expand on a little bit is, as you know, we are participating in this 3.1 million gallons a day plant expansion. It has already started. They're doing some scraping out there. And construction is about to begin.

And the timing is right because at 80% of capacity, you have to start planning for an expansion. When you hit 90% capacity, you better be under construction or the state is going to slap your hand. And I think they said this morning they were like at 92% capacity. So it's needed. It's being worked on. I'll keep you posted on the progress of it, but I don't have anything else to add. I'll address any questions you may have.

David:

Yeah. In that same room, if I may. The, report by Greg indicated that basin eight sewer outfall, is that what you're making specific reference to, or impart?

Jim:

I am not not at all. That is a total separate. I'm talking about the expansion at Plum Creek Water Reclamation Authority.

David:

And this not a part of that complex? No. What is that? Could you explain that to us, please?

Jim:

You mean the Legae basin eight? It's a new lift station that was built in the Legae area. That's what all of this. And that's the acceptances that that, Kim was referring to. The developer has built a new lift station for us. Pipelines and other. So that's that. That's separate from the treatment down at PCWRA that's the expansion it piece of debris of which we are I think it was the last day of this past year.

The funding actually took place. Right. Kim. Yes. Right. And so our participation in that, that's what that was about.

David:

This is kind of funny for you and I anyway, because, I, I understand why was lost last time you and I got together. One of the last times was updating the assets of the district. Right. And specifically lift stations. Right. You and I went back and forth as to whether or not we have 8 or 9 or maybe even ten, but we had ten before we had nine and then nine.

Now that we had eight plus one and and we went round and round. So here we got this thing called, eight. And on Kim's report it's nine.

Jim:

We will clarify that because what we what was happened was a new one was built and then another one was decommissioned. Fair enough. Let's get to that. Maybe we should start naming them. Yeah, I maybe it's named after a board member.

David:

And we could, you know, name it, you.

Jim:

McEntire Lift Station.

David:

Or something with some chronology. So stay away from that, because I gotta believe you. Throw me at the end. I'll get that. Something. We, we need to make sure that we're all on the same page in that regard. And to that end, when we get to the point whether or not we have eight or 9 or 10, I wouldn't even mind seeing an, a note, even if it was a cryptic note that I made, how old each one of those are, if that information was available to you and didn't take a great deal of time.

I'll get that for you and get back. Okay. I'll get the numbers right, and I'll get the ages of them to for you.

Fantastic. All right. And then, you know, this this expansion. So 13.86% of 3.1 million gallons on a daily basis, right? Is a little over 13 is a little over maybe an acre foot, a little over an acre foot a year or excuse me a day. I mean it's a huge amount. And while this board.

Was aware of, of the details associated with it, I guess the only thing I want to share is and remind everyone of is that, and I say this in the spirit of, of, this being a asset with a great deal of potential appreciation, because, while we're using some 750 tops, acre feet annually of of sewage, you can tell that that expansion is, that we participated in is more than half.

Yet we're not going to double the size of this city by the time we're done with the development that we have. So there is two things going on. One, some excess capacity there that is is appreciating as we speak. And in my opinion, and then and then but equally is important to keep the eye on, on the, on the, on the suitor, the one that did reach that 80%.

And that's the city of Castle Rock, right. That, you know, Mark knows that, their district manager and everybody knows it. And kudos to them for their growth and their initiatives and all their planning and strategy and things like that. It's certainly a timely expansion, but we couldn't be happier that we're playing a part of it. And, and again, my opinion, that it's appreciating, as we speak.

So. You bet. I don't have anything further. Directors. Anything? Nothing. Oh.

As a as a concurrence, I, I didn't know he was Jim. Jim put it out, and he made telephone calls. We were just talking about that renewable water increase, and Jim reported I missed it to, that he not only got that out as you requested, but also communicated with all the directors or, I mean, builders and and, well, there's there's, no resistance, as we speak, this was to take that, potentially on an, on a, on a quarterly basis, just to keep it simple.

About $2,500. Right. More each quarter has accrued so that at the end of the year, we were more in the realm of the rest of our neighbors at about $17,000. For growth fees, on on renewal for renewable water. I know that Eric, made reference to it in his working with Jim to make sure that in our budget projections not to take your your thunder, Amanda, but, Yeah, he they're I think we're all on the same page, and it's it's very much underway. Yes. We're getting ready here before too long to to look at a, an update on the budget, and I'm sure that'll be a part, too. Okay, good. Thank you.

Robert:

Excellent. Thanks for elaborating.

Jim:

Thank you. Appreciate it.

Describer:

Jim takes his seat as the camera zooms to David.

David:

Okay. Thank you Jim. Well done. Item #9, board action items. There's a little bit of, consider financial report. You know, the first item is, is, the establishment of, process and or timeline for filling a vacancy on the board resulting from director Norm Roman's resignation. Let me just first say that, I apologize to the residents, to my colleagues, to anyone that's listening online.

Etc. for that, while I was in receipt of a resignation letter. Prior to the last meeting, as I made mention earlier, that was a very lengthy meeting, and, and, we we may have set a record for the items that we handled, etc., but, nonetheless, it slipped through the cracks, and it's my fault.

Norm, who, we were blessed, for having on this board who work diligently in pursuit of the, Reform board's goals and aspirations, had some personal problems that, he made reference to in his resignation. And for that reason, gave up his seat on December 31st. So while I was, late in reporting, I'm.

I think I'm still fairly timely in the fact that he left this board, formally, at the end of the year. So it's with that, that we have a, vacancy. And again, on a side note, anyone that, finds the opportunity to give that gentleman a pat on the back do so. He deserves it.

And and whatever, personal reasons, that he is working on or towards, wish him luck. But, for now, we have a vacancy. We're going to fill it by appointment. The remaining directors here, the appointee serves until the next regular meeting. Or. Excuse me, next regular, election. And, if it pleases, my colleagues, I, well.

We've had the matter before us. It's it's it's not new to us, but with the time that we've had to contemplate it, I would propose that we, take letters of interest, from, the residents. Anyone interested? Obviously, their bios and their resumes, through, maybe, February 7th, noon on February 7th. We will get that, notice out and make sure that everyone, through our communications, folks are, notified, of our intent to take those letters of interest, the bios and the resumes through noon on the seventh, with the hopes that would be able to, come together on or before the, into.

Excuse me on or before the February meeting and, make that appointment. If that works for everyone and everyone's schedule, whether it be by virtue of a special meeting or the meeting of board meeting in February, endeavor to make that fifth appointee anyone?

Denise:

Just one comment does that. That probably won't allow enough time to put a notice in the newspaper in the community, connection.

David:

I believe it will we have an opportunity. I believe it will. We have an opportunity to, be included in the connections next, publication. And we actually got a deadline of of, of tomorrow, that, I believe if we can, can can come to terms with that, we can get it in there. Okay. And certainly on our website and certainly send out a, email blast to our residents.

Denise:

I think that would be good and would be a little more notification.

David:

All of the above.

Denise:

Feels kind of quick, which is not in and of itself a problem. But, yeah, a little an email blast would be great.

David:

And if we get to that point in February and we're just not there, you know, it does feel fast. Okay. To me as well, but but let's see what we can't do. Okay?

Denise:

Okay. Great. Thank you.

Robert:

Yeah, I would second. And as long as we don't get inundated and we're able to that each and, all the letters, that'd be great I agree. Thanks.

David:

Good with that, Chuck? Alright, very good. It's with that, conversation here with the board that, communications, move forward in that broadcast, at, to, via every vehicle available to us. And of course, Jim, notify staff of same and, collect those, and get them out as they come in. Please. Item B is the consideration of the financial report and the items from the finance director, Miss Amanda, would you be so kind as to grace us with your presence? Where have you been? And it's good to see you. Welcome back.

Describer:

The camera pans to the audience and then zooms to the Finance Director, Amanda Castle. As she discusses her report with the board, the camera will pan to each of them.

District Finance Director, Amanda Castle:

It's a pleasure to be here. First of all, I don't know who to thank first, I guess, Kim, for setting me up for excitement. Because after that report, accounting is bound to sound. Sound very exciting tonight. So any time you want me to follow legal, I'm good with that because typically not how it works for me. So, on a on a very serious note, thank you all so much for your grace last month.

I know that in November, as you all probably very well remember, I had, horrible bronchitis. I ended up getting a secondary infection that sent me to the hospital. And then, I ended up contracting influenza A, I did have my flu shot, which I then proceeded to pass to my entire family, including both my kiddos. So it was a rough month.

I was not part of the land of the living for most of it, but by the grace of God, I was able to recover pretty quickly in the grand scheme of things. And I'm very happy to be back. So thank you so much for your Grace. I don't know that I've ever missed a meeting, because of really anything, so I appreciate that a lot. Thank you.

David:

You you have to know that, at least the voices that I was privileged to hear, were beckoning for your return, and I might not be given another opportunity to do your report, so. Right. Right. Well. You're served up. You have the floor. Please continue.

Amanda:

Thank you. We have for the board's consideration tonight, the unaudited financial statements as of December 31st, 2018. I did just want to make mention that it is the unaudited report. We will have the audit conducted in March. Or I'm sorry, in April for the district. So, there may be some changes to the report at that time.

Typically you'll see, finalization of capital assets, that sort of thing. But they should be pretty close to, finalized. When we look at the financial report, really, things for the year went very well. In total property tax collections were at 99.93%. It's very rare that you see those collections, at 100%. Sometimes it can be over 100.

If a year was low, the next year you collect those taxes and arrears. But 99% is pretty darn good. Beyond that investment earnings across the board were incredibly high for the district, so we actually were able to capitalize on those investment earnings in, our ending balance was hundreds of thousands of dollars higher than our original proposed budget for 2018.

Walking into 2019, I'm hopeful that we'll continue to see those interest rates, close to where they were this year. We were pretty conservative in running those estimates for 2019. So I'm hopeful that we'll continue to see high rates of return there. When we look at the general fund. In total, the operating expenditures are $81,000 under the amended budget.

This was primarily due to just some, cost savings we recognized in communications, utilities in general administration. Beyond that, we also had savings of 42,000, almost 43,000, in parks and open space. So in total, we recognized, over $120,000 in cost savings relative to the general fund at year end, which is great to see. Beyond that, the water and wastewater, water, wastewater and storm funds were all trending very well.

Additionally, so water service revenue has continued to trend far above our expectations in 2018. With that comes an increase in usage. So, that is always a concern when we're looking at long term planning. But then increased usage does allow for increased revenues. So in 2018 we did see, increased revenues relative to water service revenue and golf course revenue.

We also recognized an increase in the number of tap fees that that were sold. We had anticipated a much lower number going into 2018, and we sold a lot more in 2018. So that's good for a couple of reasons. First, and foremost, we're bringing those homes on, sooner than anticipated. So we have revenue today for that. But beyond that they'll get on the property tax roll sooner and will start to collect property taxes relative to those new homes.

So that's great to see. As we look through the 2018 financials, I did want to draw your attention to page two and three, which are the balance sheet. I normally don't spend too much time here during the year, because during the year I think the PNL tell us more of the story. But at year end, it's a nice a nice snapshot for the district.

So as of 12/31, the unaudited financial statements in the general fund show total fund equity increased from $49,941. Sorry, $49,941,000. In 2017 to nearly $51,000,000 in 2018. That primary increase is attributable to a couple of things. First and foremost, we did have an increase in our fund balance. So we saw revenues in excess of expenditures, which allowed for that increase to take place.

And then we had some pay off on our COPs, which also helps with that fund balance. So those that's in the general fund, in the enterprise fund, the total fund balance went down. But you'll notice liabilities and fund equity increased. So we issued debt in the enterprise Fund relative to PCWRA. That actually closed on 12/31. We were able to get all the transfers done.

So that loan payable to J.P. Morgan shows up under our liabilities as of 12/31/2018. We also had an increase in the loan payable to CWCB, as you'll recall, as we draw on that loan. Then we recognized the loan proceeds attributable to that. With those came an increase in cash. So you kind of have this this double up between the two where you've got the influx of cash from those, notes, and then you've got the increase in the loan payable as well.

Then we have an increase of expenses as that cash gets paid out throughout the year. So I did want to draw your attention to that. But in total the enterprise funds came in, well within budget. The only amendment we did during the year was the amendment to include the PCWRA debt, in the enterprise funds. But beyond that, the enterprise funds were within budget for the year, which is great.

We saw it. Like I said, it increased revenues. We saw some cost savings across the board. So in total, we came in in a really good spot. Relative to those funds. Having said all of that, this is a very, very busy time of year for us. So we are working on a multitude of projects for the district.

First and foremost, as you'll recall, the budget was approved in 2018. At the end of 2018, we are required to file that budget with DOLA by January 31st. So we take that formal document, we add in the board of directors, all of your bios, that sort of thing. We add in accomplishments for the year. And thanks to everybody on the team for assisting with that.

And then we finalize that document and file it with the state. That will then be made available on the district's website as well. So we'll have both of those there that will be done by the 31st. That document is actually complete. It's just going through Pinnacle's internal review process. So we'll file that electronically with DOLA by January 31st.

At the end of the year, we made, the payments on the 2015 copies. They have a payment date of 12/1. So December 1st of each year we tee up that payment and get that off. So that was done. We're continuing to work with CRS on getting, all of the payroll and billing functions up to date.

I felt like this month went pretty darn well. I think we were able to streamline a lot of processes, work hand in hand, and really go back and forth as to what each team needed. So that worked really well. We're working on finishing filing of the 1099 payments. That's a requirement for the district and those. That's something we can simply generate out of the accounting system.

The biggest thing we're working on is the 2018 audit. So we start full swing audit. Next month, in the month of February, we really start to tee things up. It takes it takes a while really, to go through the capital assets and tie everything out. And we try and then tie everything, up and hand. The auditors really completed work papers to help make their job as streamlined as possible.

So we have begun that field work. Additionally, because that wasn't complex enough, PERA selected the district for a PERA audit. So we were selected for a different audit from PERA in, I think, 2016 or 17. So I followed up with them and said, is this the same thing because you're not required to participate in that one? But unfortunately it's a census data audit.

So we are required to participate and it does require additional procedures relative, to the audit itself. So we're working with the auditors to get all of that taking care of. And I'll keep you up to date on that. Hopefully PERA says it should be as quick and painless as possible. I'll believe that when I see it.

So, I think they try really hard. I mean, I'll give them credit for that, but I don't think you hear the word audit. I don't think you ever think quick and painless by any means. So, beyond that, as you know, the J.P. Morgan Chase loan relative to a did close on December 31st, 2018. And we are working with Bartle Wells, as you alluded to, on getting that, the revenue projections for a proposed renewable water investment fee increase throughout the year.

So Erik Helgeson with Bartle Wells is working on that. Finally, the last thing I have is, for this board. I know that because you're all very new, you don't know this, but I talked to Jim a little bit about it in the month of February. Pinnacle does not prepare a financial statement board packet. The reason being twofold.

First and foremost, January financial statements are mainly accruals for us that early in the month, as you know, when you're paying bills, if you're paying bills in February, those bills are related to January. So we pull financials really at the beginning of the month, and then we come up with an estimate of accruals relative to expenses, which over the past few years I feel like we've really honed in on that.

But the January financials are really just an accrual at that point. So we started to look at the scope of services probably 2 or 3 years ago and narrowed it down and said, okay, if we didn't do financials in the month of February, that would allow us to, I call it sling mud, take work from audit season.

That's that's insane. And sling it back to February. So we do we sling that mud back to February. We start the audit prep. And our focus in the month of February is is really streamlining and going through the audit. So having said that, you won't see a set of financial statements. We will provide the back schedules that you traditionally see.

And we're happy to call in. I unfortunately have a prior commitment on that date, so I won't be able to attend, but Eric is happy to call in should the board desire that. So you just keep us up to date as to what your desires would be. And that is that is part of our scope of services for the year that we won't provide that.

So that's not something we're repealing off of our original scope of services. Like I said, we just train and streamline that so that we can get the audit complete. So. Is there any questions?

David:

I totally missed the last thing you said. So that the that we're going to be without your presence and presentation and financials for January. Why is that again?

Amanda:

So in the month of January when we present financial statements in February, it would be obviously for a one January, financial. We don't have any true expenses at that point because it's rare that those expenses have been paid when we were in financials. We normally have an accrual that we do all year. We have this very long list of accruals.

So we know here's Pinnacle's average bill, here's legal's average bill. Here's and we go down the list of things we know like that in.

David:

You have 30 days of accrual.

Amanda:

Right. Exactly right. So we have that in there. But we don't have any really real factual data because none of those expenses when we when we prepare.

David:

So you're talking about actual to date information is what will be missing.

Amanda:

Right. Exactly. Yeah. So we have we can accrue it, but we don't have actual information. Right. So for that purpose in in also because January typically isn't telling you any trend yet, like I said a few years ago we analyzed it and said it. It's probably a better use of our time to focus on getting the audit tied out, getting everything wrapped up for that, and then bringing a nice set of financial statements with a little more information to the March meeting.

David:

Okay. Yeah. Thank you for that report. Just a couple things, if I may. Absolutely. Jim. Well, first, Amanda, the items, that we, were missing last month in your, email to us in December. Yes.

Those have been brought up to date, and we had apparently, no omissions for year end financials. Right. So the job between yourselves and Chris has gone very well. And and I just want to thank you for that. That was a tremendous effort on everyone's part. If I were to recount it, we wouldn't have enough time for the number of steps that that were considered as a part of making that right.

Adjustment. Operationally within the district. But I couldn't be happier for the fact that, we have no omissions, that, the relationships are intact and the financials are, to date, I do feel picked on, however, by PERA.

Amanda:

I, I do too, and I let them know that. Don't worry. I don't know if I CC'd you in on my communications to them. I might have kept that to myself.

David:

And. Well, I mean, I.

Amanda:

Don't wrap you in, so.

David:

I the only thing I can think of is that when we were trying to, hone in on those few pennies, right in that transition and in some staff. Right. Previous staff, leaving, etc., etc., that they just said, you know what? These guys need to go on that list.

Amanda:

And I feel like so I told them, I said, I feel like this isn't really random because we got selected for I thought it was the same thing, but apparently I was told elsewise. But I guess it is. It's like jury duty because for years I've been told jury duty is random, but I've been selected since I've lived in the state of Colorado.

Every single year, and my husband has never once been selected. So if if the county is. Not Douglas, but.

David:

I am mopping up what you're spilling. Can we appeal. Can we appeal that?

Amanda:

Can we? What?

David:

Can we appeal it?

Amanda:

It? So I asked them that. Can we can we delay? Are we required to do this? Because sometimes for those types of audits you're not required to participate. It's it's an election if you would like to participate. Unfortunately this is not one of those according to PERA, this is one that we are required to purchase.

David:

But the problem is we just went through the audit, right? Finding those pennies, right? I mean, we are par, so we are on par with them according to them within the last 30 days.

Amanda:

And I think this is to audit more of the census data behind that than it is to audit the amounts that go to PERA.

David:

And the cost to the district is potentially 10 or $15,000.

Amanda:

It's thousands of dollars for sure. Yeah. So we're we're trying to get it added on to, existing procedures in the audit so that the cost would be less. But that was part of the concern I voiced to para was that as a district that requires more hours from consultants, the auditor, I'm sure the attorney. And so we've got a multitude of expenses that are adding into that.

PERA's response was that they try as hard as they can to keep those costs minimum, but I can't figure out a way we can do it without having, agreed upon procedures or some additional form of audit procedures done during our normal audit. So we're we're lucky in that we do have our normal audit coming up and can tax some of that on, but it is additional work that will be required.

David:

Again, I feel picked on and and I'm wondering, Jim, if, you and Kim and, Amanda, if there isn't a good reason to, to take an hour to, and, and pursue a conversation or even a letter, to, counter the solicitation, simply because of the facts. Right.

I'm I'm I'm all for community service. Duh. But, I mean, $15,000, for some kind of, community outreach survey or or the census is not ours to burden. I don't believe, and and if it's about the dollars and cents, we've reconciled and we've reconciled within the last month. So, give it some thought, have some conversation.

And I know that we have to be expedient in whatever we do, so. Right. We'll we'll we'll leave it to you in that regard, I but I, I think it's worth another round of asks with.

Amanda:

I completely agree and I totally I apologize for interrupting. I did tell PERA our intention is not at all to try and hide or or get out of this. It's simply a matter of a. We just went through another PERA audit a couple of years ago, but be it is a lot of money in time for the district, even if they're trying to streamline that process.

And I'm not sure that right now is the best time for us to go through that. I mean, financially, we're able to pay that and go through it. But, it is a time burden and and it's just one more thing, one more thing added on to the list.

David:

So it would seem like a census of sort. Right. Should not be ours to bear. So, Okay. Good. Please, please pursue that before we concede or acquiesce to that request. Also, Jim, we worked in the last 30, 45 days, on on our, billing nomenclature, to match our, our budget nomenclature to make sure that we didn't, Amanda put ourselves in a position where we were restricting the use of funds.

Right. I'm making specific, reference to the renewable water investment Fund. It is, we sat on that. And is this just a typo on your report where it says renewable water investment fee? At the very bottom?

Amanda:

I'm not sure it is. So let me let me clarify and make sure I understand what you're asking. So the renewable water investment fee is truly the the amount we're collecting. But it will go into a renewable water investment fund that can be used at the board's discretion.

David:

Is there is is there. We were pursuing fund not fee. We're we're not Jim. Is there any reason. Go ahead.

Jim:

I was just going to say it has physically been changed in our system yet we haven't generated the bills yet because we haven't read the meters. But we can change. I think it says fee says renewable and investment fee, whatever this is except for fund. Right. So if you want fund to be on there, that's not a problem.

David:

It is clearly a fund. And again, if it does not restrict us beyond what call it a fee. And as those in the past referenced it, the nickel fee, we're we're opposed to feeding, the residents any more than we are or more than we are, banking on a fund that we all know that we're going to be reaching for, when pursuing renewable water as wisely as this platform is, is promised. Okay. So fund, if we can please.

Amanda:

Do we need anything at the end? Can we just say renewable water investment? Sure. I don't know that we need fee or fund. Really. So and then that's simply going to that investment in the future.

Jim:

It would all fit on the statements.

Amanda:

Right I do for. So from an accounting standpoint fund is how we segregate. Don't want to add. Water wastewater storm.

David:

Yeah don't want to add. A, a, I don't want to be required to, produce another.

Amanda:

Report. Right. And we wouldn't I think just for ease of things. Okay. We can just remove that word.

Jim:

Just be three words.

Amanda:

Renewable water investment.

Jim:

Okay. Absolutely. Yeah, well, I'll change that tomorrow. You'll see it in your next utility billing.

David:

Super. Perfect. Excited for that, accomplishment. And then. And then, as it relates to the 2019 budget, I know we have a deadline of the end of the month. However, I would like to ask that the, board, be given an opportunity to review that prior to, filing the with with the state. I'm I'm, is it in a is it in a condition, for us to review that now?

Amanda:

Yes. We have the draft as complete.

David:

What would be the deadline for any adjustments? If you. And I have to believe that there would be nominal, if any, numbers. Right. It would simply be, a reflection of what was, what is and what's going to be in the text. Okay. What's our timeline there?

Amanda:

I would say if you could get those to us by probably the 28th or 29th, the file is pretty quick to well it's instant that we upload it, so we'll upload it. We can upload it on the 31st. If you can get them to us this week. Great. If it needs to be early next week, we shouldn't have a problem. Especially if it's really just simple additions.

Jim:

So if you'll give me the latest up draft.

Amanda:

I will. I have it.

Jim:

You've made it a little tweaking on give me. Yeah if you can tomorrow morning. Absolutely. And then I'll forward it on to the board. And you're saying if they give it back to us by the 28th, is that what you said? Which is Monday, I believe. Yes. Is everybody okay with that? Yes, please.

Amanda:

For the board's reference to if, if there there's a desire to include perhaps more long term goals or anything like that. We can also segregate that and have the filing for the state simply be the state requirement message budget, resolution. And then we can we can also add on to the document that then would be on the district's website.

So that's also an option for for the board that we can keep that the in the filing with the state.

David:

And that, additional time is, is is the additional time that we would requisition. So it's up to us. Yes. Because we're the ones posting it. We don't have a required posting date of that on our site from the state.

Amanda:

Exactly right. The filing that's do is just do as an upload to the state.

David:

If we were to file without any of the tax, to make my point. Yeah. Would that be an an incomplete filing.

Amanda:

No. The state requires so we do a budget message. We do the, the adopted budget resolution, mill levy certification. So we put that all together in the packet and then submit that to the state. It's pretty simple and straightforward. I actually feel that the filing we have today is a well above and beyond what the state's looking for.

But if you wanted to, like I said, add more of a narrative or anything like that, that's absolutely something we can do in post at the district's website.

David:

Tell you what we will do by the 27th, no later than the 28th, or sooner we will let you know. Of any of those additions or deletions, in the in the, commentary and or if we're going to separate that commentary.

Amanda:

Okay, that sounds wonderful. Thank you, I appreciate that.

David:

Thank you very much. Directors. Any comments, questions, concerns about the financials you're in? We're getting ready to do it again. Are you ready? I mean audit?

Amanda:

Right I feel like round two gets slightly easier so.

David:

I don't believe you for a second.

Amanda:

Hopefully it won't be, I'll try and be easier on you, so.

David:

Geez we we just finished the thing. All right. Very good. Thank you Amanda. And welcome back again. Was there any questions, Jim? Kim? Anything up? Amanda. You're good. All right. Very good.

Describer:

Robert whispers to David a question. They discuss for off-mic.

David:

Robert's bringing up, the question as to whether or not, even after the conversation I just had with Amanda on that report. If there's a reason, council for this board to make a motion to accept the numbers already, we haven't seen them from the the budget. Yeah. Or as long as there's a statement.

Okay, okay. And we've not made any changes. So were approved. We're locked in, we're recorded. Okay. Okay. I'm with you. Make sense.

Describer:

The camera pans from the board to the rest of the council as they discusses the report. It pans back to the board.

Board Voting All-Speak:

Finish up with, item #9. See, consideration of approving and ratifying the current payables. If I may, directors, make the following motion for December 2018. Checks number, check numbers 24048 - 24144. Approve through the general fund. And debt service, $42,421.58. Ratify $113,147.08, for a total of $155,568.66 enterprise. Approve from the Enterprise Fund.

$236,279.53, ratifying $843,947.24, for a total of $1,080,226.77 and and, of course, the big one is Amanda pointed out, was, the, funds for, Plum Creek, the ratification of that payment and the reimbursable and the site funds, etcetera. Three, $3,305,850.42. All that being said, total expenditures for the month of December 2018, $4,541,645.85.

Do I hear a second? I second it. Chuck has seconded it? David made the motion. All those in favor, when called upon, please indicate with an eye. If you're not in favor, let us know that as well. Director Crew. I. Director Merritt. I. Director Lowen. I. And Director McEntire is, in favor of it as well, motion carries, unanimously.

David:

We're going to jump then to Directors' Matters, before we get into Directors' Matters. Or we can jump into Directors' Matters. I don't know, what my colleagues have brought forward this time. But, we're clearly ahead of schedule and have time to be entertained.

Barring any magic tricks or same things of that nature. I just wanted to bring up the, review and and, ask if there was any comments, questions or concerns about the, communications report that you all had a copy of and had a chance to review? Well, we have a number of deliverables in process.

As you are all aware. Chuck, it looks like, you may well, we've all got new, new cards. That being the least of our concern, was there any anything in that report that we needed to talk about?

Okay. Hearing none. Denise, is there any other director matters, that I have failed to bring up that you wanted to or you wanted to? That I failed any way or? No. None. None. Okay, great. Robert. None. None. None. Chatty Cathy. Chuck. Yes sir.

Did you have anything you wanted to bring to the director's attention tonight?

Describer:

Chuck asks his question, but his microphone was turned off. After being notified by Robert and David, he turns on his mic to ask his question.

Chuck:

I'm sorry. The only question I have, was from the financial on this because I haven't participated in a meeting before. I'd like a little history, if you would. David, on the the name renewable water investment fee. Can you share with me what that is?

And it's on our statements, so I suspect I know, but I'd like you to clarify it.

David:

Sure. Once upon a time.

Chuck:

Is this going to be a long.

David:

No. It's not. This is that $15 fee that appears, and has appeared for, a great deal of time, well before my time, in fact, here on the district, that was a fee imposed, at the, recommendation of director or, the district manager, Jim Nikkel's approved by the board at that time.

And and, while it has been, absorbed by the residents, for a couple years now, when when when when meeting a number of those residents during our campaign, we had a great deal of conversation about that. And there was some real animosity, about that and not so much the $15, but the way that it magically appeared on the on the bill and no one had any say, no one.

There was no recourse. There was no explanation. There was, you know, I could go on and on, to characterize the way they characterize it to me, but it just flat out upset them the way that that whole, piece of business was handled by the district at that time. And I was I was asked, if we were going to, take a different approach.

And I said, we sure were, that this, this money, was going to be, taken a look at this, this this is someone called it. The Nikkel fee was going to be taken a look at during the rate and fee study, that we engaged in towards the end of the year. And it was decided, after a great deal of conversation and some of the more aggressive conversation that this board has had, that at an absolute minimum, that fee wanted to be frozen for at least a year.

Until which time? This board was, was, ready to, announced to the residents their renewable water plan. The promise was that we would deliver renewable water more wisely than our predecessors. We've been working on it diligently since our swearing in. Your, been briefed. You're familiar with, the progress that we've made. And and, as is a promise to the residents, we're going to continue to be forthcoming in the near term with more and more detail in that regard.

But in the interim, back to the to the collection of that, it was decided that if you're going to buy water or wastewater, if you buy anything, it's going to cost. And as much as that, fee was being collected, it was, the preference of this board that it be banked in behalf of the residents, much like an investment fund of the residents to pursue, renewable water more wisely.

And so while we were not opposed to it, we were not a part of how it came to fruition. We decided that we were going to, refrain from the use of it being a fee as much as it was a fund of the residents that we would then take up as a part of business moving forward with our renewable water plan as needed.

Chuck:

As needed. Does that mean we'll decide this year when we review the but the 2020 budget on, where that goes or how that fund to be spent? Is there any, decision or discussion on that or is right now we're just using the renewable water term as a catchall for something we do in the future?

David:

Two, two things in that regard. Secondly, I would, given the conversation that we had with Jim and, Kim and Amanda over, the, the labeling of that money, it is clearly our intent that if it was not used by this board.

For its intended purposes, that it would be returned to the residents. Okay. Just like any other investment fund that was, financed by its owners, its residents, so that that that secondly, but firstly, know that it is and I speak for Director Crew and, and merit only to keep the, length of the comments down because they get fired up. Is, is is I do as well that it is the intention of, of the, the three of us in as we get closer to bringing you up to speed in the briefings, and, and accomplishments to this date, our goal would be to be able to include it in the conversations, of of, not just the audit, of course, because that's the past, but of the future. Yes. And so there are some significant conversations forthcoming in 2019, well, before 2020.

Chuck:

Okay. That's that's great because I do get neighbors complaining. And we've heard it in this room that the metro district is nickel and diming all of us with fees. We always hear there's too many fees on our statement. And it's it's nice to know that on this particular one, which does have, some emotion to it, that there, there probably will be sooner than later resolve the, the last question and this is the same one is the this fee in the budget somewhere, or is it just part of the normal cash collected revenue?

David:

Yes, it's it's in the revenue side of the, of the, enterprise fund.

Chuck:

It's not it's not labeled Renewable Water Fee?

David:

Yes it is, it is. Okay. Yes, but it is, it's and that was a conversation that we had earlier. But it is, it is a part of our revenue, that was, budgeted for 2019.

Chuck:

And so it was in the 2019 budget.

Amanda:

Yes, yes. It's on page 11 of your packet.

Chuck:

Is it identified as a renewable water for you or is it just in the cash revenue?

David:

Well, I, I honestly didn't what.

Amanda:

It is, it's called the renewable water investment revenue.

David:

What was it called, Amanda?

Amanda:

Renewable Water Investment Revenue. Okay. So we have that we have the cash that comes in relative to that and that comes in on the renewable water investment revenue. And then we also have in a separate account all of the cash so that cash accumulates. And the fund itself will have the cash that was collected year over year, until such time that that cash was either put to use and or returned.

But the annual revenue that the district anticipates receiving is account $60,6044.06. And it's on, at the top of page 11.

Chuck:

I'll, I'll take up that time later. We can we can find. Thank you ice.

Amanda:

And I will let you know to. In 2018, the district had budgeted for collections in the renewable water investment revenue. We had actual collections of $1,341,000. We're anticipating a higher number of collections in 2019 that is not attributable to an increase in that, revenue stream. It's simply attributable to an increase in the number of homes, so.

Chuck:

Thank you very much. I, I think that's an important little number to to know that what we're working with, when we get ready as a board to decide how to use it.

David:

And let me just take a second to circle back, to again, address one of the things that we, we talked about, with Amanda and with Jim and Kim in the course of the last couple meetings, it was decided by this board that, in light of the rate and fee work that we did, in behalf of adopting, their recommendations for 2019, we found by virtue of, going back not only a second time, but a third time qualifying the information that they brought to us to consider when adopting the 3%, increase in water and the 4% in wastewater and nothing more.

We we discovered that, our neighbors, when it comes to taps, the whole concept or the current concept, the preferred concept where growth pays for growth, we're charging upwards to, between 15 and $20,000 for, renewable water in their tap. We were only charging, I think, $7000. So, we have while we adopted the budget based on what you see there.

And there is that fund and it is funded by the $15 fee that is frozen through this year by all the residents to be used for that purpose or were returned, refunded. What we did do and what we are going to see over the course of this year on a quarterly basis is new projections from Pinnacle, with the assistance of Bartle and Wells to pick up on the additional $2,500 per quarter increase going to the new development throughout this year, so that at the end of the day, not only are we matching our neighbors at the end of this year, we're matching our neighbors with an approximately $17,000 renewable water fee.

But our fund will be, enhanced tremendously by that, new $10,000, for the permitting of new houses throughout this year and the years thereafter.

Chuck:

Thank you. Appreciate it.

Amanda:

If there are any additional questions along that line, please feel free to reach out to me at any time. I'm happy to answer those and, provide any feedback or.

Chuck:

Can you answer the questions abridged?

Amanda:

You know, we'll see. Thank you

David:

No, she can't. I been to her office. But she's easier to listen to. I have to look at. Okay.

Amanda:

Right. And my daily affirmation today was I am a doer. So, you know, along those lines. Yes, I am a doer. I can get it done.

David:

And most of the directors have spent some one on one time, on an as needed. And she's very gracious in giving her time. So if you feel you have a direct line, do it. Okay.

Chuck:

I think I feel that way. Amongst others. Thank you.

David:

Is that it, Director Lowen?

Chuck:

That's it. Thank you.

Robert:

Welcome to the fire hose.

David:

All right, director's matters. Hearing no more. Our finished with, item ten. Item 11 again. Is that public, meeting comment period where there's a three minute maximum per person. We don't have any newcomers to the list.

Seeing no pickets from the audience or flags waving or signs or a hand raising. We'll close item #11, which is the second and last open public comment period, and look for a motion to adjourn or, Director, Director Lowen, would you be so kind as to make a motion for adjournment?

Board-Voting All Speak:

I make a motion that we adjourn tonight's meeting. All those in favor signify by saying I. I. I second that a motion, and I.

It's unanimously approved. Your first one. How about them? Congratulations. Meeting over. Boy, I tell you.

Describer:

Meeting Adjourned. The video fades to black.