July 15, 2019 Video Board Meeting
Transcript
AGENDA
Board of Directors Meeting
Monday, July 15, 2019, at 6:00 p.m.
7404 Yorkshire Drive, Castle Pines, CO 80108
1. Call to order the regular meeting/pledge of allegiance.
2. Roll call/announcement of quorum/disclosure of potential conflicts.
3. Consider approving July 15, 2019 board meeting agenda.
4. Consider approving minutes of June 17, 2019 regular board meeting.
5. Opening public comment period (3-minute maximum per person).
6. Open Space Manager's report.
7. Legal Counsel's report.
8. Consider approving the final 2018 Audit by the CPA firm of RubinBrown.
9. Finance Director's report.
10. Consider approving financial report and items from Finance Director.
11. Consider approving and/or ratifying June 2019 payables (check numbers 24423 - 24498).
12. District Manager's report.
A. Update on joint CPNMD/PWSD water & wastewater service-integration feasibility study.
13. Directors' matters.
14. Closing public comment period (3-minute maximum per person).
15. Adjourn.
Describer:
The video starts on graphic with a white background and forest green letters which says ìCastle Pines North Metro District Board Meeting July 15, 2019î. The meeting opens on a shot of board members David McEntire, Chris Lewis and Chuck Lowen present.
Board President David McEntire:
Good evening. We want to welcome everyone to the meeting this evening. Those online. Thank you for tuning in. We appreciate your attendance, your interest. Comments, questions or concerns are always welcome. But again, your attendance is appreciated. Again, welcome. I'd like to open the meeting with the, Pledge of Allegiance if everyone would join me, please. Thank you, Chuck.
Describer:
The camera zooms out from the board for the Pledge of Allegiance
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.
I'm going to call the regular meeting, for July 15th, 2019 to order. And in doing so, have a roll call. When called upon, please indicate your presence and whether or not you have any potential conflicts by disclosing shame. Before we. Announce a quorum.
Board Member Director Chris Lewis:
Director Lewis. Here. No conflicts.
Board President Chuck Lowen:
Director Lowen. Present, no conflicts.
David:
And Director McEntire is here. And I have no conflicts. We have a quorum. We move to item three, where this board is to consider approving the July 15th board meeting agenda. In that agenda. While we have, typically two open public comment periods. Just in the matter of keeping things simple and consolidated. And give the folks a little bit more time.
I'm just going to ask that we omit item #5 and consolidate that, with, item 14. If that works for you guys, that would be,
The only comment, question or concern I have about the agenda. Chris. I'm good. No objection.
Board Voting All Speak:
Very good. It's with the, motion to adjourn the motion to amend the agenda. Combining items 5 and 14 that I make a motion to approve the agenda. Do we have a second? I second. All in favor, say aye. Aye. Those opposed? Hearing none. Motion carries.
David:
Item number. Item. I'm going to regress because I got ahead of myself. I'm sorry. Item #4 was, consideration of approving the minutes of June 17th. See, I get these new glasses, and they don't have rims. Does it work? Item #4, consider approving the minutes of June 17th.
Everyone has had those minutes. Marked draft. For the last ten days, thereabouts. Are there any comments, questions, concerns associated with, those minutes? And if there aren't any, I would entertain a motion to approve the, as drafted.
Board Voting All Speak:
I'll make a motion that the Castle Pines North Metropolitan District regular meeting minutes of June 17th, 2019 be accepted. I second that. We've got a motion on the floor by Director Lowen, seconded by Director Lewis. To approve the minutes of June 17th regular board meeting. All those in favor, please share with everyone by saying I. I.
David:
Opposed? hearing none. Motion carries. Item #6. If I've caught myself, consider approving approving the agenda. Item #6 is the Open Space report.
Mr. Miller has another report for us this evening. Absolutely. Welcome, sir.
Craig Miller, Supervisor, Parks, Trails, and Open Space, CPNMD:
Have you had a chance to review the report? And do you have any questions?
Describer:
Camera pans to Craig Miller who is seen at the podium ready to talk about his report. It pans between the board and Craig as they discuss.
David:
Have it? Have I've had the opportunity is I know my colleagues have. And let me just tell you, Craig, For personal reasons, I've been up at dawn, over the course of the last 7 to 10 days, a little more often than than, previous. And this community is so knocked down. Beautiful, gorgeous. Thank you.
When the sun comes up and it's a reflection of the efforts that you make, the hard choices that you're put in.
Craig:
It's my guys, too.
David:
And kudos to you. And your staff is all I want to say. Thank you. It's just a beautiful, beautiful place. We can see your handiwork throughout the community and and, that'd be the first thing I'd have to say. As a as it relates to your report, I have nothing. But, I have one question for you.
This pertains to a. A, the bill, namely 19-1050. That is a House sponsored bill in the in Colorado Senate. And, having to do with water efficient landscape. Okay.
I want to make sure, and not that I'm asking you to respond definitively tonight, but I want to make sure that you have looked at that bill again. It's, 19-1050. You know, I want to make sure that, you would, would share with us either ASAP or by next meeting if you see no urgency.
Any relevance and, that this board should be made aware of and advised on. Other than that, again, you, Stuart, a beautiful community. Great job.
Craig:
Thank you. And I'll pass that on my guys because we all we ever hear is the bad stuff. We hear the complaints. Seriously, we very seldom get the compliments when we do. And the resident takes the time to call us. Or in your case, let me know. I make sure I pass on the guys and it puts a big smile on their face.
It makes things a lot easier. You mentioned you're up at the crack of dawn. I don't know if you've seen David running around, but he's normally here at six M he's checking lights and things like that. So, if you see a district truck running around at like 5:30 or 6 in the morning, that's David, you might want to say hi to him because.
Because he gets up off early, along those lines. But other than that, I don't really have anything else to add. I understand there was a question regarding the northwest corner of Castle Pines Parkway and Monarch, correct? Yes. We do not own that. That is 100% owned by Legacy Village, and that's per the Douglas County Assessor's Office.
They when they first began to open up, some of the residents were complaining about the dead trees, said, sorry, that's your problem. And they haven't addressed it yet. And yet here we are getting ready to remove another, what is it? 16 or 19 trees that will be removing the next three, three weeks. And it's like, it's not that hard.
It's not that expensive. They could do it very easily.
Chuck:
Well, it's interesting when you drive down monarch or you drive down Castle Pines Parkway, you see the trees that are dead. If you are looking around, you'll see the trees that are marked. Yep. Which is our group. Yep. And then you see some that aren't dead, that look, that that could be dangerous if they fell in a big storm.
And that one is right on the intersection. Absolutely. So I'm glad you cleared that up.
Craig:
Well, there's another interesting thing, too, that I'll bring to your attention. Right at Castle Pines Parkway in Forest Park, there's a dead pine there. And immediately to the east there's another dead pine. The first one is the Forest Park Homeowner's Association responsibility. The second one, just to the east, is the golf course responsibility. So both those trees are the biggest eyesores we have in this community.
They're the biggest pines and they're the biggest dead pines. We have. The city doesn't have any ordinance, I believe, for removal of dead trees, do they? And we don't have any parts to say so either. So it's unfortunate. Most communities do have an ordinance that says dead trees must removed within a short period of time. For exactly that reason, the danger involved.
Chuck:
Would have. This is just my question. Would it be appropriate just to send a courtesy letter? I mean, we have no authority. It was so we we have no, strength in it. But it's a courtesy letter for the neighborhood. And maybe the city could do the same thing and bring it to those groups attention that we're watching.
We can't do anything, but we're watching. And maybe that defers liability to since we know it's not ours. Yeah.
District Manager, Jim Worley:
I was thinking about making a phone call to him and maybe following up with a letter. I can do that. We'll do that tomorrow. The next day, we'll find out who the responsible parties are. Obviously.
Craig:
Well, we know who they are.
Jim:
We know the Forest Park so. Well, we'll start off with a phone call, courtesy phone call, and then we'll follow up with a letter, just to say with.
Chuck:
The sad thing is, everything you've done is and I concur with David, it's fabulous, you and your group. But then you see the things that haven't been done. Yeah. And we'll be blamed for it.
Craig:
Yep. And in fact, I don't know. You guys are next door, Castle Pines. Did you see the woman who's from Highlands Ranch who was complaining about our weeds along Monarch, which is all native grass? I had to laugh. I had I know the rain. Just the rain kicked it off. Beautiful. Are weeds are at a minimum because we maintain it naturally.
And yet she's calling them weeds. I almost I refrain from jumping on that next door because that was a weekend discussion. I don't know if you notice, but I did jump in on the discussion on my lawn is ruined by my dog. And so I told him about dog tough grass. It's like.
David:
I'm not a part of next door. I get copies of certain comments, sent to me. And while I didn't see that, As you know, there's always going to be half the folks that like a groomed, Parkway and the others like myself that like, nature at its best. And add a little water like we've been blessed with this year.
Craig:
And it looks incredible.
David:
Like the gorgeous, gorgeous. Seeing that we've put together.
Craig:
Now, somebody made made to comment on next door saying, what I love about this neighborhood of Castle Pines is that each individual neighborhood is separated by open space. That's natural. It is a unique community in that regard. And that's why we don't mow the open space. We leave it completely natural. It's healthier that way.
David:
So we're under, understanding then, Jim, that these violations that Craig itemized, Craig is going to give these folks a call. We're going to memorialize it, to defer, as Chuck put it, any possibility of liability by just sharing with them, that we believe it's a health concern. Safety. A safety concern? Sure. I, I know that that law exists.
And as a quasi governmental entity, I know that, there is a chance that anyone knowing, Lee, that allows that to continue to occur, that there is a real chance that we're implicated. So, please confer with with counsel.
Craig:
And actually, if I could just clarify, if there's a book out there called Arbor Arboriculture in the law that talks about tree law and the public, it's only about this thick because many people don't take their cases to court with, with, tree situations. But as a general rule, it is the owner of the tree that has 100% responsible for any property damage.
We don't have to do a COIA on our end, simply because it's very clear from the assessor's map that these trees are on property other than ours, so we can't be implicated in any way, shape or form. If a court case ever came up just simply because of property ownership. So I think our main concern is, as you know, just a courtesy to basically tell them, you know, you have a safety hazard here and you are liable for this.
You need to correct this as soon as possible. I've got some contractors I can refer you to. Forbids. So I think that's the direction we should take as opposed to, you know, worrying about getting ourself off the hook because we're off the hook. The law is very clear on that.
Elizabeth, Castle Pines Resident:
And I would just second what Craig said as well.
Craig:
Have you ever read the book Arboriculture Law?
Elizabeth:
I haven't, I haven't, but I'd be happy to.
Craig:
If you're having trouble sleeping, but I think it's all of like 120 pages, so you probably breeze through it.
Elizabeth:
Certainly. Yeah. And but I mean, David is correct. You know, the district does have governmental immunity. But for certain circumstances where, you know, it's like willful and wanton action, then they can still be implicated in some sort of lawsuit. However, this doesn't rise to that. And I think sending out the letter is more of a, PR and a good thing to do for the community.
David:
So let's create a form letter and put it in our, quiver of arrows and, and, and, where it's readily assessable. Should this continue or occur again. So we don't have to reinvent the wheel, if you will. And, that sounds great.
Craig:
And one, one more egg in that basket. Yes. Private property, dead trees. Most municipalities have regulations that require people with dead trees on their property to remove them because of the hazard to neighbors and streets and things like that. We have an awful lot of dead trees in this community, and backyards just point.
David:
Concur, Director Lewis, anything?
Chris:
Nope. Nothing to add.
David:
Good job. Thank you. Very good. Thank you Craig. Keep up the good work. Tell the guys thank you so much. All right. It's with that Open Space report that we move into legal counsel's report. Item number seven Kim is missing. So Elizabeth, we're honored that you are here tonight and are willing to put up with. These other guys, we've had a chance to review the report.
While the majority of it, is probably items that will fall off the report next week or next month. Given the fact that there's no action tonight and.
Describer:
Craig grabs his paperwork and takes his seat as Elizabeth steps up to the podium. The camera zooms in to focus on her. As they discuss, the camera pans between the Board and Amanda.
Chris:
We do have action.
David:
Well, other than the the study and negotiating service arrangements with Parker Water and San, you may have something, that you want to say about that. And again, the the,
And she's got she they're still working on that. That form is what she, she told me earlier.
Elizabeth:
Right. Go ahead. That's correct. So I'll start with the, city condemnation for the road improvements. This is something that, the board had stipulated to immediate possession for, the city, several months ago. We've been waiting on the conveyance documents, and we now have them. So, in your meeting materials, you had the special warranty deed.
And, so, honestly, all we need for that is an approval, a motion to approve, the special warranty deed, and then, authorization for execution of that document. And again, this is, the condemnation. It's a, 0.003 acre small sliver of roadway just right outside the building. That that way? Yeah. So, it's pretty small and should be no surprise, but just bringing it to you tonight.
David:
Elizabeth, how are we? Are we identifying that, document, then by the acreage or.
Elizabeth:
Oh, there's a legal description.
David:
So do we want to make as a part of the motion, reference to the legal description, and if so, how much of it.
Elizabeth:
Oh, no, that that won't be necessary. You can just, you know, make a motion to approve the, special warranty deed, for roadway improvements. And then we can certainly.
David
How many acres? .003 .003. Yeah.
Elizabeth:
And also, we can certainly reflect that in the minutes as well. A better, description of it all.
David:
Okay. Would someone like to make a motion or would you like me?
Describer:
The board discusses as the camera zooms out from Elizabeth and pans to them.
David:
You're not looking for a signature tonight, were you?
Elizabeth:
Yes, please. Yeah.
Board Voting All Speak:
Do you have the original document? Okay. Well, I'll go ahead and make a motion this evening that, the district approved the city condemnation. Condemnation for road improvement form presented to the board tonight where, upon execution of this special warranty deed for a roadway, improvements to the city of Castle Pines of approximately .003 acres is completed.
Is there a second?
I second it.
I got a motion to approve the special warranty deed for the roadway improvements. We have a second. All those in favor signify by saying I. I I I. Any opposed hearing? None. Motion carries unanimously. Thank you for that.
Elizabeth:
Of course. And the next item is actually not on the legal status report. But I did hand out to you, this document, at your places this evening. So this is an agreement that, we are currently working on right now. So we're not asking for an approval. Of the document. It's not approved as to form quite yet.
We do have a few concerns, but really, what the, agreement is, is it's, sort of an amendment. There's no change to the original agreement, but it's it's an addition addendum to a previous agreement with, Centennial Water and Sanitation District, regarding the provision of emergency water and regular water to, Castle Pines North Metro District.
So this kind of lays out the process for a change in rates for those items. So we just had a concern about the timing on, you know, when they alert us of a change in the rate, we just want to be able to reflect that, in our own budgeting process. So that being said, I'm not asking for an approval tonight.
I just wanted to let you know that we are considering this. There is, you know, we will work with Jim on this item, in the interim between now and the next meeting. So I would, suggest that maybe, the board grant us, delegate some authority just to consider the agreement, and then maybe even, have Jim sign it.
But then, we'll ratify it at the next meeting, assuming, of course, we get, the appropriate form that we want.
David:
I think that there's been, I know that, Jim has put considerable time and effort into this, and want to thank you for, specifically, negotiating the provision, that is now incorporated, in, the document, that allows the emergency shut off or offset to be water of our own as opposed to being charged.
A significant sum for water that we otherwise might not need. Let me just give you a quick example of of what is for, you know, what's happening using this map.
Describer:
The camera follows David as he moves his chair back to use a map behind them.
David:
What happened not too many weeks ago, we had a situation where we had a pump go down and we needed some water. And, and, relying on the relationship that we have with, Centennial Water and Sanitation District, they took water, from, Chatfield, ran it through their system and delivered it to us.
We were able to make a decision at that point and we we have options. And, you know, in our, infrastructure to either take that water directly or run it through our water treatment plan. We typically run it through our water treatment plant, deliver it to, the, the, the customers, in a situation where this had not been addressed before, the potential, cost would be the the potential cost was, was upwards to, $11, for a thousand gallons.
And, and, where we are, our typical arrangement is, is quite a bit less than that. But again, given Jim the, the, kudos for the negotiations. It is. Yeah. You can thank you again, Jim, for negotiating. The opportunity within 90 days of using emergency water to offset that charge to our customers by using the water that we have stored in Chatfield is the long and short of it.
And and, otherwise, it runs parallel to the agreement that we've had longstanding with Centennial Water and with your concurrence. Jim, is is authorized or with the with the, approval of the rest of the board would be authorized to engage the district in, in, that agreement and finishing up with that. I know they're looking for that agreement.
So we can get on to the next.
Jim:
That I just added. Just a couple more if I could, you know it. All of this happened when our plant went down. Remember when our treatment plant went down? And fortunately, we were already receiving our. When October 1st to April 30th flow of water from there. And so we had to put that directly into the system, because that was the only source of water we had.
We used a significant amount of water, understandably so, because the plant was down about three weeks. So we use more water than we normally do. So Centennial says we will up our grain, which can be fine. It's I think it's 257 per thousand is what it is. They look at that every year centennial to us, and they don't charge us any different than they would charge anybody else in the same thing.
So we're not set out. But one of the things that I said to to John Kaufman, who's a manager, I said, John, we got water running down the river. We can't we can't store it yet in Chatfield until next year. I says, how about instead of us write you a check, a very large check for 10, 47 or whatever it is per thousand?
How about we pay the regular rate because you're going to you're going to treat this water for us. So we want to pay for that. But let us repay you in water molecules. It's what I said. He said, well I hadn't thought about that. So that's really what this is in essence it it says until we pay back, we got 90 days to pay back whatever water is used in a situation such as what we had.
And they're absolutely fine with that. And so this agreement is there's a management committee that's part of the IGA, and that's why you'll see my name as a signature on there. But I always try to run something like this through the board so they're know what's going on and they're comfortable with what we're doing. So it's a good arrangement.
They're working with us on that. They're a good partner. And so if there's any more questions on what the source of this is or the reason for it, I'll be happy to try to address it. So.
Chris:
Jim, that's that's commendable thinking outside of the box. An important system. So that that works pretty good. So thank you.
Board Voting All Speak:
I'd like to. Do we need a motion? Yes we do. Go ahead. I'd like to make a motion on the memorandum of understanding concerning no water delivery charges and other matters as identified in this document, to give Jim the authority to approve it. And then we're gonna ratify it at the next meeting. Second. I'll second it.
We've got a motion on the floor and a second to approve the water wheeling agreement presented by counsel to us this evening between the District and Centennial Water and Sanitation District, giving Jim Worley and Council the final, approving authority, at which time counsel gives a green light. Jim, you'll have the green light to, then approve and charge every, party with the appropriate documentation or executed copy, etc..
That being said, look for, your approval when called upon. Director Lowen. Approved. Director Lewis. McEntire's I. Motion carries unanimously. Very good. And council, before you leave again, is there any, comments that, Well, before I ask you if there's any comments about the the, Parker Water and Sanitation District service arrangements, this mainly pertaining to your opinion letter that you have already delivered. To us as a part of of both parties due diligence and the dropbox where we're storing all those goodies. If if there's been some changes or not, I wanted to ask, is there been any, additional or would you please give some additional thought to the, correspondence, preparing some correspondence to the highways, specifically relating to the desire, willingness to take over entryway landscaping and and the reason I say that, is, is this fence issue that is we've been working with on Castle Pines Parkway.
Where the district owns the property on one side of the fence. The property owner who owns the single family dwelling on the other side of the fence, are without the written instruction as to whom, is other than what is provided in Colorado law. Who's responsible for maintaining that fence? And and, so there's some confusion is the issue.
And without belaboring that issue through a myriad of documents and, and and sundry of, of of, due diligence on the district's part, and we do plan on commenting on that in the very near future. But, so that the same kind of, of, of chaos, if you will, does not repeat itself potentially in this landscape situation.
That was the intent when I, when, when I introduced it some months ago, was to try to keep the HOA in charge of what the HOA is meaningfully believe, or are there responsibilities or opportunities to, themselves and their residents? And and yet throughout this community, we have some that are maintained by the district and some that are not, so I just before we take that off, one more, opportunity to discuss that, amongst ourselves before we, we go on.
And so lastly, then just any comments or updates you want to give us on the Parker Water and San District legal opinions?
Elizabeth:
No, it's in all honesty, it's been kind of quiet, on our front, as you know, we did provide that, letter discussing, the different legal mechanisms to, achieve a consolidation slash inclusion. But since then, honestly, I don't have any updates on that. However, we'll be happy to bring some updates, at the next meeting, should there be any, I just I don't really have anything right now.
David:
Very good. And I wasn't expecting it. We're just getting down to, But we've we've heard from legal, we have, received, comments from, what was the what was the last one that we got, guys. Yeah, from from, a consultant that we, we mutually, asked to provide an opinion of professional and, and lawful minded opinion. And so as the information continues to accumulate and, and, support each one of these, these consultants and, professional entities that we've hired, it's getting exciting.
And so it's for that reason that I know the board myself were anxious to get anything and everything as it trickles in. We've, yet to get a, any finality on some water rights? I know our financial situation or or, update is is forthcoming, probably next. And that's very exciting. They were working diligently on that is Amanda I'm sure will report and our debt situation, the engineering is, probably down to a, physical inspection of, of our infrastructure.
Otherwise we've got that handled as well. I think those pretty much outlined the remaining steps. So, so, yeah. If anything else comes up, certainly if you would, please. Thank you. All right. That being said, we have, Amanda and her presentation. The 2018 audit by the CPA firm of Reuben Brown. I take it you're going to do that?
David:
And yes, I don't see Rubin or Brown here.
Describer:
Elizabeth takes her seat as Amanda Castle walks to the podium. The camera pans and zooms to her. As they discuss, the camera will pan, and zoom to whoever is speaking.
District Finance Director, Amanda Castle:
Right. Exactly. Well, thank you so much for your time tonight. I really appreciate it. It's a pleasure to be back. As noted, we do have for the board's review and approval, the December 31st, 2018 audit from RubinBrown. I know that last month the auditors came in, presented the audit. So just a very high level review.
The audit did have an unmodified opinion, which is great. That's exactly what you want. Or, unqualified, rather opinion. That's what you want. So that's fantastic. That means there's nothing erroneous or anything that would lead them to say, hey, time out. We can't we can't opine on this. So that's really great. That's what we want to see.
Beyond that, the district's financial position continued to increase. Also. Fantastic. That helps us to achieve our long term goals. So everything came in as expected. As the audit progressed, we really didn't see any big red flags. I think the only thing that was brought to our attention in and really changed during the course of the audit was the previous, directors salaries and wages that were paid, upon severance.
So that was then booked to 2018 as per prior conversations. That was really the only thing we hadn't considered when we presented, the financials to the auditor for review and approval. So from our perspective, it seemed to go really well. The auditors didn't have any, comments to us on things to improve or that sort of thing.
So that's really fantastic. RubinBrown is a really high quality firm. And we, we focus on pretty large districts with them. So they, they see the gamut of things. And I appreciate all of the attention to detail that they've brought. If there are any questions, I would be more than happy to answer them.
Chris:
I did go over it pretty closely, I think. And, yeah, I didn't have any other questions except for the one on the MD&A, which you explained to me. Perfect. I'm good.
Amanda:
Wonderful. Thank you.
David:
Director Lowen? Any further comments? Questions? Concerns?
Chuck:
No, I'm good with it.
David:
And I kind of liked your term opining.
Amanda:
Opining? Yes. I was an auditor for several years, many, many years actually.
David:
It's filled with opining.
And can you imagine the trees we would have saved if we would have on both sides?
Amanda:
I know right? That's funny. And they're set up that way. So when you read it, if it's one page, I get confused because I'm used to reading them like that. Yeah. Yeah.
David:
Good job on the opining. Thank you. And good job, staff. And and, everyone involved in the audit, it is something to be proud of. So it's with that that, Chris, would you mind providing a motion to approve the audit for 2018?
Board Voting All Speak:
Make a motion to approve the audit for the 2018 financial statements dated. December 31st. December 31st. I do not have anything else. Thank you. Second, that motion.
So we have a motion on the floor and a second to approve the December 31st, 2018 financial statements. A.K.A. audit 2018 audit. That being said, look for your consent when called upon Director Lewis. I. Director Lowen. I. And Director McEntire is an I. Unanimously approved.
Amanda:
Wonderful. Thank you.
David:
Consider item #9.
Amanda:
Wonderful. So per state statute, we will go ahead and file that with the state. It's due to the state by the end of the month. So we're within the time frame, which is great. The other piece that we will do is, publish the audit and continuing disclosures on Emma, which is, the municipal exchange for our debt so that the cops meet the continuing disclosure requirements.
So there's a section within the audit called continuing Disclosures. That's relative to the cops and their continuing disclosure requirements within the copies. And they're also due by the end of the month. So we'll just go ahead and follow up with the audit.
David:
I know we have some disclosure requirements. And desires. So as well by the district as relates to our budget. Correct. Are we obligated to post any of the, audit disclosures as well to the website?
Amanda:
Not not to the districts. I mean, it's always advantageous to have it out there for people to review. I would highly recommend that. I know from my perspective, any time I have a question on, you know, my local municipality or anything, I go and look for their audit. So it's always nice, I think, to have it out there for the constituents.
So. Exactly. So, no, I think I think it would be advantageous. It's not a requirement, but I think it's a courtesy to those within the district to post it.
David:
So I just don't recall that we had a obligation, as we did with the budget. Correct. Have we typically, posted are audit. We do that again. Okay. Good. Thank you.
Amanda:
Thank you. Upon that I will move on to the finance report. So we have presented for the district's review and approval the June 30th, 2019 financial statements. I really, really like these financials because it's a great snapshot mid-year through to see where the district stands to date. There are just a couple of items that I would like to draw the district's attention to.
As stated in the financial update memo, we have revised expenditures. The projected expenditures in the general fund, down from a budgeted $3.74 million to $ 3.64 million, which is a savings of just over $95,000. The district anticipates a majority of that savings comes from, savings within salaries and wages. But we've also got savings elsewhere that helps us to accumulate that.
So we typically do not revise those projections unless we're really confident in the savings. And this much through the year, we're confident that we will recognize that level of savings within the fund. When we look at the enterprise funds, which are the water, wastewater and storm funds, the one thing I wanted to draw the board's attention to was item 4A on the memo.
So the district has revised water service revenue projections downward. They were originally projected to, $2.97 million. We revised those downward to $2.5 million really this spring and kind of early summer was pretty darn wet. I mean, we had snow in June, so I think that was really indicative of the water usage that we're seeing. That was a lot lower than, historical averages.
Because of that, we revised it downward. Having said that, our weather has a mind of its own and now it's swung completely the other way. So it's very, very, very hot. My guess, based on items we've seen in the past, is that we'll start to see that gap close if the heat continues, as it is now, when it's very hot and especially when it's very hot, after being so wet, we tend to see people water a lot.
I think they're trying to make up for it and they're trying to keep their grass super green. So inevitably we'll see a swing the other way. So my hope is that within the coming months, we'll close that gap a little bit so that we won't have such a dramatic decrease in projected revenues. But we'll continue to monitor that.
We've got a really strong pulse on historical averages for usage. We keep a ten year map of data so that we can have an average kind of bell curve, and we know, okay, in May, we're normally 42% collected year to date. And we can average that out. So that tends to be pretty darn accurate. We do get a little bit of anomalies.
And normally what will happen is if we have a really wet season, the curve will shift a little bit. So it'll still hit. It just hits a little bit later. And that's my anticipation is that's what will happen. So we'll continue to monitor that. Are there any questions on that?
Chris:
Not on that one. But I do have a question. Sure. On the page 6 and this is more of a reminder probably improvements to parks. What's that. What are we. Where did that come from again?
Amanda:
That was that acceptance piece where we, had an I think we accept. Did we accept the parking? Did we. Reimbursed. Okay.
Jim:
What that was was a piece of equipment that was built by the Parks Authority at our Coyote Ridge Park. They wrote us a check for $35,000. I think it was $27,000 was a grand total. We reimburse them and it was not anticipated in the budget.
Amanda:
And that piece of the pie also shows up in revenue. So on page four, under miscellaneous revenues, you'll notice that the original budget was 30,000 and that's been increased to $60,000. That increase is due to the offset of that 27,000. So we had incoming revenue and an outgoing expense. That's just the way we have to account for it from our perspective.
David:
We anticipated it. It was just a timing issue.
Amanda:
Exactly right. Thank you for clarifying that. Beyond that, I don't have anything on the financial statements themselves, but I did want to just, provide a quick update on the consolidation study. So as, oh, go ahead.
David:
I thought we were relegated to only going through 4A. Yes 4A.4B.
Amanda:
I can continue to go through those. I just didn't know.
David:
I don't care that you go through them. I had a question. The way I read that, was that there was some concern of, relating to the cost, from, legal and accounting for the consolidation study. And, while I didn't see that as, as I was taking it for, as it was written, how I was interpreting what you have written to us. We made those adjustments in 18 for 19 budget to you may recall some questions.
Amanda:
Correct. That's exactly right.
David:
Where you were comfortable then you're still comfortable. Now we're operating within those budget, within the scope or not? Absolutely. And why, I am exceptionally, interested in that now is just because of the volume of work that you guys have been putting out over the last 60 days. And, and we get through that hurdle then this board did a good job in budgeting, and you guys did an awesome job staying within its range. Okay. Good.
Amanda:
Absolutely. No I feel confident reviewing those numbers that we've really maintained where we need to on that. I don't see any thing currently telling me that will go over. I think the benefit of the study as it stands now is that, working with Parker and the engineers at Stantec, everybody's pretty, they know exactly what they're walking through.
So they're very good about providing very specific information, which allows us to provide that same information back as opposed to kind of this broad range of information that you throw it at them and see what sticks sort of thing that can take a long time if people haven't been through it. But I think we've all been through something similar in the past, and so we can bring our shared experiences and ideally provide some savings in time there efficiencies, I'll say. Yep, yep. Very good.
Perfect. So along those lines, we are continuing to work with Parker and Stantec. I know that there was just a push for some information on capital. We haven't received any questions. In detail back from Stantec or Parker in regards to the information that was provided recently. We will await that and see, my anticipation would be that the next round of questions probably focuses around the co-ops and their, relativity to the enterprise funds.
So we will continue to address those questions as they come up. As Elizabeth stated right now, it's pretty quiet. So it's kind of you sit around and wait for the next lump of questions. They ask them, we push out information, and then you wait and so we're in the waiting phase. I'll say.
Jim:
Oh, I had some more in a few minutes when I get up there. Thank you.
Amanda:
Beyond that we did, as you know, just wrap up the 2018 audit. And while that is very exciting, that means that we are now triggered to do the 2020 budget. So, audit ends and you get this kind of day breath and then go, okay, let's jump into budget season. So provided with the financial update memo, today was the 2020 Castle Pines North Metropolitan District budget timeline.
As you can see, that timeline has already begun. We continue to work through, the month of June to really kind of hone in on the process. So we provide 630 financial statements to district staff who then use that information to, really hone in on what they anticipate for 2019 so that we can have pretty finite projections for 2019.
And then, really lay out goals for 2020 so that we can establish a budget that best meets the goals of the district, which is fantastic. I think that's going to be probably the bigger piece this year is finalizing those goals, because as you all know, it's really dependent on work that's going on right now. So we'll continue to monitor that and just move forward as best we can.
When we look at the 2020 budget calendar, you will notice that the majority of work, up until October involves finance, accounting. Bartle Wells, who does our rate study and district staff once the budget is finalized, to the best of our, abilities and satisfaction, we provide a draft budget to the board of directors. That budget draft will be provided to the board of directors by October 1st.
State statute dictates October 15th. But we want to make sure that you have an ample amount of time to really review the budget. We will then have a work session to go over the budget. It's currently scheduled for October 10th, and we'll continue to monitor that date as it gets closer, just to ensure it works for everyone.
But that will give everybody the ability to ask a lot of questions and ensure that, items you want to focus on are being met. And and please let those goals and focus is be known well ahead of time. And I'm sure that Jim's on top of that as well. But that's critical to the success of the budget.
So I just wanted to draw your attention to that. Ideally, we will have, the first public hearing on 11/18, and hopefully you will be confident and comfortable enough with the budget to approve it at that time. If there are any issues whereby we don't feel confident or comfortable with the budget quite yet, we have scheduled, a secondary meeting if needed for December 9th.
We could not hold the meeting at the regular scheduled meeting time in December because it's too late. You have to follow the budget, or follow your levy prior to that. And the mill levy can only be filed once the budget is approved. So wonderful.
Chris:
As someone that hasn't gone through the process, how long is the working session take?
Amanda:
That's really dependent upon, the board. So our preference would be that as you get the draft and have questions, you're really pinging those to us ahead of time so that we can be prepped. Or if it's if it's a quick one off answer, we can answer it. But really, what we're doing at the working session is going through it in pretty fine detail.
A lot of the things are really self explanatory that, you know, it's utilities and we know there's going to be a 3% increase or it's health insurance and we know it's going to be an 8% increase, whatever it might be. Other things we'll have more detail behind. And we do have we present a budget book with the budget that provides the specific detail behind every account.
So it will say, we're anticipating landscaping costs of X-Y-Z, which is made up of this many trees, this much, mowing, this much mulch. I mean, it goes into pretty finite detail there so that the board has that at their discretion. The other thing that allows us to do is more easily monitor the budget for the year.
So if we're over budget, we can look at it and say, oh, we anticipated purchasing 25 trees and we actually needed to purchase 40. And then we'll know exactly why we're over where we could recognize savings. Okay, it's pretty exciting process. Oh.
David:
Terribly exciting. In that vein, Chris and Amanda, I just to make sure that we're we're clear. And that was a good, question. And and I appreciate your reinforcing the fact that we're going to get a draft prior to any of the work sessions or work. Yeah, work sessions, but more over the, board meetings on 10/10, we'll get a draft of the, rate and case presentation.
It doesn't say that on our schedule that the board of directors is going to get that. But we want to make sure we get that on the 10th so that we're ready for the 21st.
Amanda:
You will. So one Wells will actually come and present that rate case on the 10th. Ideally the board will get a copy of that presentation prior. So we typically work with.
David:
No, they're going to come on the 21st right?
Amanda:
I'm sorry. You're right. They're coming on the 21st to present the rate case.
David:
Because the board wouldn't recognize on the 10th that we're going to get that in your little column there under staff or follow up. So long as we're getting drafts of those things, we'll work diligently to be prepared.
Amanda:
Absolutely. And you'll have all of that information. Yeah, absolutely. And Erica at Bartle Wells has been doing the rate case for quite some time. He works hand in hand with us. And I feel like we've got a really good pulse on that. So I think once we provide him with updated goals and objections, he'll really be able to hit the ground running.
Jim:
Chris, one more thing to add to that. Whatever it takes, whatever time it takes for the board to be comfortable with the board, that's how much time we'll take. And so if we have a work session and we still have some other questions, or one board member says, I got more stuff, we'll follow up. The objective is for you to be as comfortable with this document as you can so that when you're asked to make the decision, hopefully all your questions are asked.
So we'll take whatever time is necessary.
Chris:
Thank you. I'm tracking.
Amanda:
And I think this is going to be, I think, my eighth budget season with Castle Pines. So ideally I'll bring with it not only a level of expertise, but a level of ease for the board to know, hey here, based on past experience, here's everything you'll need. Another hat I wear is also as a city council member where I live, so I understand the importance that you play in this budget.
And because of that, I understand how important it is that you have clarity and that your goals are obtained through this. So I want to make sure you've got all necessary information available, and I will strive to provide excellence in all of that.
David:
Thank you. Amanda. It is with that report and a fine report, I might add, that we consider this evening, not only the financial report that our finance director has given us under item #10 but also item #11, approving and ratifying of the June 19th payables, specifically checks number 24423 - 24498.
I'll continue as a part of a motion that, we approve not only the finance director's report, given this evening, through the end of June, but also, these payables, in June as well, specifically ratifying $199,130.55 in the general fund and debt service, in the Enterprise Fund, $ 306,468.94, and ratify electronic payments of 107 zero 1974 again because of timing issues, there are no additional funds to approve, rather just solely ratifying the ones I aforementioned, for a total of $612,619.23.
Board Voting All Speak:
Is the motion with, is there any second. I second it.
We've got a motion to approve the finance director's report and the ratification of the 20, June 2019 payables. We have a second. Any further comments, questions, concerns, hearing none. Signify by saying I together. I.
Hearing no opposition motion passes unanimously. Thank you Amanda.
Amanda:
Thank you I appreciate it.
David:
Item 12, district manager's report. Mr. Worley.
Describer:
The camera pans to Jim, seen standing at the podium after Amanda takes her seat. As Jim discusses with the board, the camera will pan to them to focus on them.
Jim:
Good evening. You've got my report in front of you. There are some other things I want to I want to add to it to address any questions you may have. I have what's already typed out for you. If not, I'll go into what I want to discuss. Let me know. We've had an interesting week. As you know, when I was interviewing, someone asked me that says, well, what do you know about computers?
I said, well, I know how to spell IT, and that's it. And so what happened last week is our server crashed. That was Tuesday at 1:00. Server went down. We immediately contacted Greystone who handles our I.T. for us. They could not fix it remotely. They came into the office that afternoon and told us that afternoon that says we have to order three parts and we will have them overnighted to us.
So now we're down completely. We can't get in our shared documents or anything. Those parts came in the next morning. They immediately came out. I walked in after lunch and was told everything's fine, everything's working. So I that's when I informed the board and others that everything's working. About an hour later, it dropped again. So it was out, until Thursday.
It went out Tuesday, 1:00 to Thursday at 3:00. And I had been told twice that it was fixed. So I, I don't know, I didn't appreciate being told it's fixed when it isn't. And so we finally got it all work. And at least in our server side, that's why you got your board packet a day later than you normally do.
We're able to scramble and get it done on Thursday. Well, then we realized Thursday afternoon, I'm sorry. Friday afternoon that our voicemail system was not working. Not only our voicemail system at our phones by our desk, but also the the after hours. And we rely on the after hours. There's a phone number you dial. If you dial the main number, you have an issue.
It'll direct you to a pager, in essence, and the person that's on call get your number and calls you. Well, that was out. And then I found out that our phone system is by a via, and there's one person that can work on fixing the voicemail, and he was in New York vacationing. So he'll be back tomorrow.
Tomorrow, Tuesday. I got a little upset. I was I was unhappy with that. You know, we're a 24/7 business. So we did everything we can to let people know Ken was able to get us right on the front of the website and read information about it out. You might have noticed the two signs as you walked in that was out in case somebody walked over here or tried to get on our website.
When when I came in this morning, our, there was something else that was down,
Oh, our online bill page system was down, so you couldn't go to the website and pay your bill. We didn't know that until we walked in here this morning. That was fixed this afternoon. So we've had some challenges from the I.T. arena. And I appreciate everybody's patience on on getting this taken care of. Our servers up. Everything seems to be working except the voice mail, and I'm hoping that'll be fixed tomorrow, so I'll let you know when that is.
So that that was a a challenging week. And thank you for the kind words David related to, Craig's group. Susan and Carol do a fantastic job of addressing calls, and they're excellent with it. And on those two daughters and our utility bill and and so I want to publicly thank those three ladies for the hard work they've done, especially because of this challenging work.
And they do a very good job of that. Another item in your most recent utility bill, you received a communication from us. We have every five years, the state provides what they call a sanitary sewer survey. That's not wastewater, that's water. They come out, they look at everything we have here. There are some items. There are four items that were considered violations.
Those four items had nothing to do. Which quality water quality treatment process. All of that is absolutely fine. The issues related to where we take some of our samples that we have to sample all the time, so they suggested a couple places for that. Also, we didn't have a plan related to our, tanks, the the inspection we have on our two big tanks.
So we did that, so those there were four items that we jumped right on. And I commend that staff, for doing a great job. We've taken care of all four of those violations. That's why we had to send this out to you. And we'll continue to work with the health department. And I'd also like to thank the health department.
We work with, Clayton and a guy named Tim who are involved in these notices. Clayton was a guy who came out and did the survey work very closely with us and did a very good job of helping us to make sure what we were putting out met their requirements. And thank you to Ken for his hard work.
And I worked him pretty hard last week on a lot of this, but thank you can't I appreciate that. So I'll address any questions you may have on that. We've taken care of those issues. The only other thing we'll need to do with these issues is next year, about this time when we, present the consumer confidence report, the CCR that that we just recently did, we'll have to state in there that we had these violations.
But that's a document that really put to sleep too. So other than that, that has been taken care of. And I appreciate your, your, working with us on that.
Then let me talk about Parker for a few minutes. We've talked about a couple things here. One reason that it just kind of. Right now, nothing going on necessarily is the guy that I work with over there, Steve Hellman, had his knee replaced or hip. I can't remember which one. So he's kind of out of pocket for a few days.
But before he went into surgery, he and I talked and they have hired, a guy named Clint Reedy who works for Jacobs. It's an engineering firm. So Clint is being brought up to speed with what this whole process is. And I anticipate a call from him in the next 2 or 3 weeks to say, let's start looking at your facilities as we've discussed a little bit.
So I'll keep you posted on that. Nothing else to report at this point related to that study, but it's still moving forward. The last thing which is important to me, is I'm going to take some vacation, if you'll allow me, a week from this Friday, which is July 26th, we'll leave that morning and we'll be going to we have a timeshare on the Atlantic side of Florida.
So we're going to be dodging sharks. If you've been paying attention to the shark area around New Smyrna Beach. So I will be there. But what I do anytime I go on vacation, and I emphasize this to staff and to the board, I have my phone with me. I check my emails periodically if there is a need to reach me, because I don't necessarily walk the beach with the phone in my pocket, but I check it on a pretty regular basis.
So if there's a need to reach me, by all means, please reach out and I'll get back to you as quick as I can on that. That's all I have. Unless you have some questions for me.
Chris:
You guys did have a challenging week. So what did they change on the server side and what did it affect? You know.
Jim:
I don't what I was told Chris, is they have there were three things related to the server part is how I understood it and were normally they said maybe one may crash, but in this case three did. I have no idea what that means. So they were able to order the parts. They responded pretty quick. When it comes to ordering the parts.
Got it here the next morning. And then they had to do the work like someone forgot to include our shared drive when they when they say everything's working. So I don't know specifically if you want to if you have an interest in that, I can sure find out or, or put you in touch with someone who can speak the language.
Chris:
Yeah, I would be interested. And the reason I would also is, I guess earlier on when we when I was coming on board, we seem to have had problems with, setting up accounts and, and, emails and all types of issues like that. So I'm just keeping track here and wondering, you know, is this an ongoing issue?
Is this an issue with support from the whoever's supporting us? So just for the interested that way.
Jim:
I'll get with you and we'll, we'll get somebody that knows what they're talking about. Appreciate them.
David:
I'll piggyback on what Chris said. And while some of those other challenges are from other providers and had nothing to do with our own server, let's make sure we've been memorialized. If it's, nothing more than, itemized, explanation and solution on the invoice, so that we're all on the same page and we have a history of, of, the performance of both that provider and the equipment.
Secondly, I know that my colleagues, join me in, in, giving kudos to Corey. Your entire staff, the lady Susan, Carol, etc., for, what they've gone through this week. Job well done. We are a 24/7, entity, and we are expected to be able to serve as such. And quite frankly, what we have 4 or 5 folks literally that, at least as a part of the record, could not pay on time.
Bless her heart. They,
We're we're desirous of wanting to do that. We wanted them to do it, and we weren't able to take it. So, next time that happens, let me know. I'll go get the check, okay? And, do my part.
Jim:
The only time we weren't able to do that was when our server was completely down. When our online payment, which we realized this morning was down, people could call in. I got a couple of emails from some people, you might have received some of those. And I just said, hey, it's down. I'll let you know when it's back up.
So they said, okay, fine, I'll call tomorrow or whatever it is, but they can call in usually when our server is working and make a payment. If they choose to. So we try to work with them as best we can.
David:
But what you've described as the epitome of teamwork and a real team effort. And again, great job on your part. And and let me go on to say, as it relates to the, state inspection, we kind of have a couple balls in the air. We had that that issue, taking place as much as we have, the, inclusion or consolidation study with Parker, all of which require or desirous of looking at the physical facilities.
I would like to have you coordinate, with this board at its earliest convenience, a walkthrough of of those facilities. For the purpose of of looking and seeing for themselves, the condition, the resolution of any and all of those, issues that have come up, so that they're in a, in a, in a fantastic position to field any questions, comments or concerns about Parker.
But equally as important, be prepared, for the budget process and all the subsequent work sessions and approvals that are going to be asked for. So I think I think it's it's time. As soon as you can coordinate that, to have invite the board for another physical inspection of our facilities.
Jim:
I will do that.
David:
Okay. You bet. Lastly would be, and as it relates to the budget process, we you talked about capital and, and, well, that's something that Jim and I have been working on. And Eric and you guys, Stantec, everyone has been working on has comments, some questions, concerns, not too many concerns because, we find ourselves in a position to, take care of of most, challenges, financially as it relates to, the capital improvements or repair and replacement of same and, and, but we have been working on over the course of, this year, a new GIS program.
And this GIS program is going to be, our backstop for our future capital program. Is this,
Software, will provide us with a an acute accounting of our infrastructure, the age of same the performance of same color of same, to a level of detail where, if and when, we're looking for, cause and effect of the performance of our infrastructure, we can look to this software system. It's also the same software system that we talked about earlier, with, council, when we were talking about approving the documents, and, the conditions of the equipment and the infrastructure that we get from the developers as they come on, those files will be provided for us.
They'll be approved by Kennedy Jenks, who is our on site and and, a consulting engineer and become a part of the, the, the, the system and available to us as we project our capital needs far as we can see in the future. So it is going to require some budget adjustments. It is a about an $80,000 effort, as it has been, reduced in, in proposal form.
To us, Gemini's have had a chance to look at that, briefly, but we'll get into that more over the course of the next 60 days. And, and, get everybody up to speed, because I really think it's, it's something that will benefit the owners of this infrastructure, our residents, namely, okay. Other than that, I.
You think Jim should go on vacation?
Chuck:
No. My wife and I went and saw a movie called crawl this last weekend. It's about alligators in Florida. And so I'm thinking Arizona might be a better choice.
Jim:
I gotta tell you a funny quick story, though. A few weeks ago, actually, I was at home and and MSN comes up on my screen and it said, look at this video, drone video of sharks and how close they are to the people. So I clicked on it, and here they show the guy and his wife who had put this drone up and put it right over this water, and it said, New Smyrna Beach, Florida.
That's exactly where I'm going to be, right there in the water. So been going there for a number of years with family. And and I think, Chris, some of us are smart enough to stay out of the water. That's any deeper than an ankle because they think so. They are there. And alligators too. Yeah, but I'm more concerned about sharks and and the alligators.
Chuck:
Have you plan for a replacement just in case you get sharks and alligators and cockroaches. What are you going to do?
Jim:
Yeah, I'll do that before I leave. How's that? Recommendation. Yeah, yeah, I'll give you a recommendation. I'll write it all down. So, you know, at least say some nice things about me. If I do get a shark, then you, my wife can say, oh, well, he got eaten by a shark, but they said some nice things about him.
David:
He he called me right away when he saw that video and asked me if I had ever wrestled any blacktip sharks. I said that they're just little five footers.
Jim:
Yeah, but they can hurt when I just say, I don't even want a one footer in there.
David:
Director Lewis, should we let him go? Absolutely.
Chuck:
Have a good vacation. Thank you.
David:
Thank you for the report. You bet. Vacation? Well earned. Thank you.
We're available in your absence. Make sure that staff knows that as well at your direction. And, thank you for the report tonight. Anything further? No, sir.
Thank you. We're close. Item #13. Move to item #14, closing public comment period. We have had no one sign up to provide us with any public comment. This evening. I haven't heard anyone coming in from online. Hearing none. We close item #14, move on to item #15, which is a motion by one of my colleagues to.
Board Voting All Speak:
I'll make a motion that the meeting of July 15th. Board meeting at 6:00 is now adjourned. Second it. I second it.
We got two seconds on the floor and a and a motion to adjourn the meeting. All those in favor say . Aye. Aye. Any opposed? Hearing none. Meeting adjourned. Thank you very much. Thank you.
Describer:
Meeting adjourned. The video fades to black.