June 17, 2019 Video Board Meeting
Transcript
AGENDA:
Board of Directors Meeting
Monday, June 17, 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 June 17, 2019 board meeting agenda.
4. Consider approving minutes of May 20, 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 CRS Payroll & Utility Billing Services Contract.
9. Finance Director's report.
10. Consider approving financial report and items from Finance Director.
A. Update on the second of three $2,500 Renewable Water Investment Tap Fee increases in 2019 that the board approved during its April 15, 2019 meeting. (NOTE: the board-approved schedule of 2019 tap fee increases applies only to developers and new development projects and is intended to bring CPNMD's tap fees in line with those of neighboring jurisdictions, thereby increasing the degree to which new development pays for itself.)
B. Consider approving/ratifying current payables for May 2019
(check numbers 24370 - 24422).
11. Russell White, a CPA and partner at the firm of RubinBrown, will present the 2018 Draft Audit.
12. District Manager's report.
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 June 17, 2019î. The meeting opens on a shot of board members David McEntire, Denise Crew, Chuck Lowen, and Chris Lewis present.
Board President David McEntire:
Welcome, everybody to the meeting. Everyone in the audience. Appreciate you coming in. Everyone online. Thank you for tuning in. Tonight is, one in a series of monthly meetings that, now we've reached a milestone of 13 meetings. I, I, I missed the opportunity with the original slate to, give you all kudos. On our anniversary last month.
And so if I mentioned that a couple times. I've been basking in your accomplishments, and I'm encouraged by, all of that as well. That being said, tonight's meeting. I would like to call to order, the board of directors meeting of Monday, June 17th, 2019. By asking you to first join me in the Pledge of Allegiance.
Describer:
Camera pans from the board to the crowd as they join the board in the Pledge of Allegiance.
All Speak:
I Pledge allegiance to the flag of the United States of America and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all.
Describer:
Camera pans back to the board as everyone in the meeting takes their seats.
David:
Thank you very much. I'm going to call roll, with, that, please, indicate your presence and disclose any potential conflicts at the same time.
Board Member Director Denise Crew:
Denise Crew here. No conflicts.
Board President Chuck Lowen:
Chuck Lowen. Here. No conflicts.
Board Member Director Chris Lewis:
Mr. Lewis. Here. No conflicts.
David:
And I am here. And I have no conflicts. Robert. Merritt, may be late. He was texting me feverishly this afternoon, so I'm not sure what has happened, but, if he wants to join us. We can amend the role. At that time.
At this point, I would ask the board to consider approving, the the board meeting agenda. There was some conversation, prior to the meeting with Director Crew to ensure that we did not want to amend the agenda for, some business, that she wanted to make sure we included in this meeting, and has opted to include that in Directors' Matter item #13.
So at the present time, I don't have, a need to ask for any amendments. I would also ask if I can, in the spirit of expediting this meeting, knowing that everyone has had the minutes for now, about a week, and we have not heard any requests for any modifications or amendments to the meeting minutes. A motion from one of my colleagues to consider both the meeting agenda and the minutes of May 20th.
Bored Voting All Speak:
I'm making a motion to approve the agenda and approve the meetings from last month. May 20th.
We've got a motion on the floor for the June 17th meeting. Agenda approving same. And the minutes of May 20th approving them, as well as the second. I seconded. Thank you. Chuck. We have a motion and a second. Is there any further discussion about the minutes and the agenda before moving forward? Hearing none. Unless there's an objection, I will, consider, your silence as a vote of approval.
How's that? Anything? Very good. Motion carries unanimously.
David:
Item #4 is where we, have the opportunity to interact with, the audience. While we have some folks planted in the audience, as a part of our agenda, this evening, we also have some of those that have opted to come. And, upon signing in, we have, of those signed in, we have, two of them that would like to speak this evening.
The first one being Miss Deborah Mulvey. Welcome, Miss Mulvey.
There you go.
Deborah Mulvey, City Council Member:
Good afternoon, Deborah Mulvey, the city of Castle Pines. Council member, Ward 1. Also at 12390 Serena Courts. I am the city's representative, as am the city's member on the Parks Authority, and speak in that capacity today. We have some developments and some tremendous progress with the Parks Authority recently and a lot of cooperation. And I want to thank council.
I want to thank board member crew. Denise Crew has been phenomenal to work with as a member of this board. We have been working very hard together. It's been a cooperation that's unprecedented. And the ability to have that open discourse, to solve the ups and downs, to resolve the concerns of the citizens and the other directors on the Parks Authority board has allowed us to really make some progress.
I think what, Lisa, that I've been able to accomplish is great for the city, and I just want to acknowledge that.
Describer:
Deborah turns off the microphone on the podium and gets ready to take her seat. Denise had a comment, so she steps back to the podium as the camera quickly pans to the board.
Denise:
If I may acknowledge all of your help, your legal expertise, your word-smithing, I couldn't have done it without you. So thank you so much.
Describer:
Camera pans back to the podium
David:
Thank you. Councilwoman Mulvey. We appreciate you bringing that to the attention of those that have been anxiously awaiting the outcome of your efforts. And, Director Crew, while there's been so many others involved behind the scenes. Albeit along the way, it seemed to be, taking a little long. But good things are worth waiting for. And we sure appreciate again, yours and Director Crew's efforts.
And those that have helped along the way. This, agreement that you do make reference to, however, is it, is is there a way that we can, and it could simply be my oversight address this, by virtue of date as well. I know it's an IGA, but, should there be a linear portion of a of it being dated, or do you, default into an execution date when making reference to a document like this?
Deborah:
That we would operate with the execution date and the approval date? The city Council approved it in form, and the attorney also approved it as to, the changes that were made that were not substantive today. So the city council approved it last Tuesday. The non substantive changes having been approved today. And so when this board, if this board chooses to approve it and execute it today with yourself and council after a vote, then it would become effective.
And my understanding is that by its terms then, it being close of business, then tomorrow it would be self-executing and the Parks Authority would dissolve and the money would then be transferable within, I believe, five days. And the attorney for the Parks Authority would then, send a letter within five days to the Department of Local Affairs of the State of Colorado, notifying the state of the dissolution and the terms of the agreement, specify the limitations for the use of the funds in accordance with the establishing contract for the Parks Authority and since the public is here listening, what, Miss Crew and I have endeavored to do is ensure that the public's, voice is well heard. That the public's desire for the use of the funds and the location for the use of the funds is complied with, both in terms of what the Parks Authority's establishing contract is and what the public wants. So we really tried hard to make sure that everybody's heard that, everything is complied with.
David:
And again, so this document will be made reference to by, its title and the execution date of last, of today by city council?
Deborah:
By actually, it's self-executing. So, your attorney would probably want to weigh in on that, but my understanding is that it would be self executable by virtue of your vote and resolution.
Describer:
Camera pans from the board back to Deborah as Legal Counsel Kim Seter interjects. The camera zooms to him.
Legal Counsel Kim Seter, Esq.:
Mr. Chairman, that there's a signature block for the metro district that has a date on it, and that would be the last party to sign. So it will become effective as soon as you sign it. That will be the effective date.
David:
Very good. I used to seeing date in the forefront as a description of the document, and there's many inches of paperwork Jim and I have recently been party to, trying to keep them straight. Been accustomed to finding that and finding it valuable without having to dig for it, so.
Kim:
I know that feeling. So you get to look through a couple pages to find out what the date really is.
David:
I'm good with that. The, one of the concerns of, of the district, and, and Denise has been more than willing, to make sure that, the, the board's, concerns are addressed as well has been one of of maintenance. And, when we got this update, it was described to me, Councilwoman and, council that, where we had attempted to craft pieces and parts of it, initially, we have reverted back to and made specific reference to the originating document of the Park Authority so that the city who is the inheritor of, of, these responsibilities and opportunities have all of the same, rights and responsibilities of the originating document, without exception. True?
Deborah:
Yes, that's true. And, I'll also make reference to one of the Metro district's specific concerns, which is a concern of others as well. And that is that the funds, that come to the city by virtue of this be used only for the maintenance of that which is built with those funds and that those funds not be used for the maintenance and upkeep of existing facilities. And so that, that's made reference to in two places in the document, that concept. And the city is committed to that, as well.
David:
And, and, and, you know, our, our concern, we thought was just logical and rational. We were we were, appreciate you taking that into consideration as the, the maintenance of of, any working apparatus, where that where our constituents are happy to have it, but it wants to be working. Was, was was big to us.
And we appreciate you making sure that that was in there. In addition to making sure that the residents had an opportunity to, approve any additional funds that may be required in the future for such maintenance, didn't want the city to be left hanging, out to dry and or the residents and and so nice job, Director Crew.
The, one other question I had, and then I'll pass it on to, I think Director Lewis had a question. Castle View Park. Yes. Can you, share with us the location of Castle View Park?
Deborah:
Yes. The reason for that. If I may, first reference wire is contained in that agreement. The Parks Authority includes as directors several members who have been on the board for quite some time. And there was, discussion many years ago of using of creating a park called Castle View Park. And that was supposed to have been, in their mind, a property just north of this building on the property, the actual lot on which this building is contained, and that is Metro District property.
And one of the things that came up as a very important logistical concern is that it's Metro District property and the Metro District would have to consent to something being built on their property, and the idea of, doing that and, and putting in an agreement that something would be on somebody's property. Prospectively was a concern just as much as it would be to the city to say in an agreement that something would be at Elk Ridge Park, which is the city's property.
And so the answer to your question is the property, which is referred to as Castle View Park, is because an idea came up and plans were drawn up for something known as Castle View Park, which would be the property just over here, on Yorkshire. And if I may ask, so there are some plans that do not include the pickle ball court that are in this, room right over there.
That being said, what we decided to do was draft the agreement to specify that the city would use its best efforts and good faith efforts as a priority to try to put in multi-use courts that are outdoor for pickle ball, tennis and basketball and or basketball in one of those two locations. But those are one of three options and categories.
And again, those are our best efforts in a priority because as a practical matter, you cannot commit some entity, a governmental entity, to do something prospectively, especially when as Denise specified, this entity, I must consent to that and has its own limitations, including the feasibility study. And so that is why it was referenced in the document. With due respect to this entities position.
David:
You're obviously mopping up when I'm spilling, in that regard. And I think then you then address that in and foregoing item #3, where the owner, unless otherwise agreed with such owner or the city would have to be, not only in favor of acquiring or having that improvement placed on their property, but would also have a full.
Would have a required voice on whether or not it included maintenance or not, and could veto it if it did not. Is that true?
Deborah:
Absolutely. More importantly, I think instead of better than a veto, it would have to be an agreement that's negotiated.
David:
Which is fine. I just want to make sure that the district has that voice. And so I'll defer to council. Having picked up, the nuance of, of this Castle View park. And as director Moby has indicated, I don't want to commit to anything in this document, but rather the opportunity to be considered. And and, everything else is negotiated thereafter.
Are you okay with that?
Kim:
I am, we were just discussing that exact same thing. And I agree with what was said.
Chuck:
Hi, Miss Mulvey, how are you? Hi. Quick question. I want to step back and make sure I understand that, the maintenance and upkeep of these facilities after transfer of the assets is done by the City of Castle Point. Yes. No.
Deborah:
Yes. For the 700, it's the balance is currently $719,000. So anything that, any amenities that is built with that $719,000 would be maintained with that $719,000. And the entity that would be doing that, administering that maintenance is the city of Castle Pines.
Chuck:
And any existing assets, I mean, that aren't part of that $719,000. Who maintains that?
Deborah:
Well, once the 719,000 is gone, the property would be the city's and the city would be responsible.
Chuck:
And this includes, insurance?
Deborah:
Yes, the only exception would be if the property, if the amenity were to be built on property owned by somebody else, in which case there would be a separate agreement that would have been negotiated with the property owner, and that agreement would spell out precisely who would be responsible for risk of loss, insurance, indemnification and liability. And most likely, that would be the city as discussed with Director Crew, but that would be negotiated.
Deborah:
And the Metro District were to be that that property would have every say from the beginning before anything is done.
Chuck:
Thank you. I appreciate your knowledge.
Chris:
I guess with some latitude here, because it looks like we might be running out of time with the open for the for the community, but down on the agenda, we're going to address this again in the legal matter. So can we keep going here? Okay. All right. So I do want to thank, both council member Mulvey and Director Crew on the job they have done here.
Thank you very much. I know that there's a lot involved here. I just have a couple of basic questions. It looks like, some of my questions have been answered on the maintenance portion of it. I got the first area where it is, which is under C two. Where's the maintenance mentioned again? Where it's, is that on the the page 5?
Deborah:
C2, I believe.
Chris:
Right. There's supposedly two references. I got the first one.
Deborah:
The whereas it's one of the whereas clauses.
Describer:
David shows Chris where item C two is.
Chris:
Got it. I'll read that I need to read that better. So on the first paragraph. So we're transferring the $719,000. And then it says there's going to be a reduction of deduction of professional fees. What's that?
Deborah:
That accounts for two things. The accountant. Should the accountant choose to charge for the accountancy fees which they have not. And number two, the legal fees which the subsequent to voting on this agreement for consensus purposes, the Parks Authority board, agreed to the amount of the final legal bill in the amount of $875. Okay. There may also be an offset for a return of insurance premium, but we I don't know if that's going to come to pass.
Chris:
Okay. Thank you. And then last so the board for the Parks Authority is made up of different people. Right. So this document I seen the signature of just the city. So do we have something like an attachment or something that says the all the other members have approved this or something? So do we need that?
Deborah:
Do you want to do that or should I?
Denise:
The reason is the founding, documents of the Parks Authority was made by the city and by the metro district. So we're the founding, members, which originated members, and we're the only ones that need to sign it to dissolve it.
Chris:
Okay. Thank you.
Describer:
Camera pans from the board to Deborah back to the board as Chris asked his question.
David:
Thank you, Deborah, for that presentation and the debate thereafter. Or discussion. Any way. Sorry about belaboring that issue or the issues. This item came up a little bit late in, in, in our, meeting package. We wanted to include it, given the work that you guys have done, through this morning, and well we'll still, as Chris indicated, will still hear that item under Directors' Matter.
Because I know there's more to be said about that. Again, I apologize to those in the audience and online for, the lengthy discussion during a required 3 or 4 minute public comment period. But thank you again.
Deborah:
Thank you for allowing me to convey the city's position and to thank me to address this, your concerns on behalf of the city, I think it's important to have the communication. So thank you.
Thank you again. We also have Carl. Swan, swan me. If you would, please welcome.
Carl Suhani, HOA Board Vice President:
Hi. My name is Carl Suhani. I'm the vice president of the HOA board for Esperanza. And I have Lisa Kane, our president and Adrian Johnson, our treasurer here as well. I just wanted to take a few minutes and, thank the board and specifically, Jim and Craig for spending almost two hours with us today, walking our entire development and answering some questions that that are probably 15 years old.
So there's three things that we worked on today. The first one was, kind of figuring out what common areas the metro district is responsible for and what Esperanza is responsible for. And, I think we have a really good understanding now of exactly what that looks like. And there's some areas that we're helping maintain at our expense, which is no problem.
And I think vice versa. So that was, a big win. The second thing we talked about is understanding the water and where it's coming from and what we need to maintain going forward. So we were able to answer those questions. And, Craig actually had some support come in, assist us during our visit. So thank you.
And then probably the biggest thing is, you know, Lisa and Adria have been working for a long time with the trail heads. And, we walked both areas together. And as a group we came up with some really good solutions. That probably cost is very minimal. We will not need to add any water or anything like that.
So, I really want to thank you for helping us get together, collaborate, and come up with a solution that I think is pretty much resolved all of the district's needs, as well as ours. So, just a lot of effort on their part, and I really appreciate them coming out and being patient with us, with our million emails we've been sending.
And I think doing it in person made it much more effective. So that's all I really had. Thank you.
David:
We appreciate that report. Was anyone else from your team willing or desirous of speaking? You guys have been a vocal participant, and supporter of the district and in the city. We really appreciate the interaction and the open line of communication with you all as well.
Thank you. Thank you.
If there's no one else to be heard, I'm going to close item #5, the open public comment period. And welcome, Director Merritt to the meeting. Glad you could make it and jump right into item #6. Craig, Open Space Manager's meeting. Report, please.
Craig Miller, Supervisor, Parks, Trails, and Open Space, CPNMD:
Good evening. You've all seen my report at. Does anybody have any questions? The all turned out really well, too, by the way, if you haven't seen it, it's craftsmanship at its finest. I mean, it's arrow straight, and they mortared very well behind it, and they came in completely on budget.
Denise:
I wanted to notate that. I've seen it. It looks great. I'm not an expert, but for them to come in at budget or maybe even below or on budget.
Craig:
It was it was completely on budget and they thought they were going to have to get, another ton of rhyolite, the Rock, for $500. And they were able to reuse everything on site, which was huge.
Denise:
Good job. Thank you.
Craig:
I, no, I I'm in their debt. I just told them they don't speak English. So I'm out there telling them you guys are craftsmen. And so I told the one guy that's that he's contracting with, who speaks Spanish to pass that on. And he did because the guys were really happy. I just kept going.
Oh my God, you know, trying to gesture. And so this is great. And they were like, thank you, thank you. Let us work that kind of thing, so.
Chuck:
I mentioned last month that I was concerned about how you awarded the bid. And are they qualified. And I take all that back.
Craig:
Thank you. I've been in this business 50 years. I know all the players. I know who does well.
Chuck:
I live just on the other side, they tore it down. They made a mess. They build it up. They cleaned it up. Yeah. It's beautiful.
Craig:
It's phenomenal. Well, get ready for round 2 in 2020 because the wall on the opposite side is doing the same thing. You'll notice it's sagging and it's already popped a few rocks out.
Chuck:
Thank you for that.
Craig:
Yeah you're welcome. So we will be asking for that in the budget for 2020. Other questions.
Not as as noted by Carl. I thought it was a very productive meeting today. We all came away from it very satisfied, I believe. And, the solution that that Carl alluded to was basically, we're going to cobble the front edge of each one of those entries, and then I'm going to have my, open space maintenance contractor intercede with wildflowers.
I sent you guys those pictures. Do you see them? Looks good, doesn't it? So we'll have a variety of wildflowers of varying heights and colors and bloom times so that we can brighten that whole thing up. That seeding will be done in late October. To take advantage of winter snow and spring moisture. When my contractor does this, he's about 95% effective at getting everything to germinate.
You have to take advantage of that springtime moisture. Once it's germinated, all the wildflowers will be native, won't require any irrigation. It's just an elegant solution.
David:
For the record, what zone are we in, agriculturally speaking? Five. Five.
Craig:
Yeah, actually, 5B believe it is. Yeah. 5A is a little bit warmer than us.
David:
And, you know, there was A and a B. Yes there a C?
Craig:
No not not in zone five. Not yet. Not yet. Yeah. Five B. Yep.
David:
Kind of like O+.
Craig:
Yeah. Just just make sure if any of you were buying nursery plant material and you're not at a reputable nursery and you're at Home Depot or Lowe's, check the tags. Because Home Depot and Lowe's, they sell a lot of zone 6 and 7 plant material, which around here we call them annuals. They don't last more than a year. Okay. So.
David:
Very good for the record 5B. Yep. And the key is correct me if I'm wrong and for the edification of all of us, is to work with plant material that is indigenous to this elevation. Yep. And that's what the zone are.
Craig:
And and our climate zone, the climate zone is based not only on elevation, but also, the lowest average temperatures as well as the highest average temperatures. So it doesn't it doesn't change year to year. It's just the average over like a 20 year period. We've been pretty solidly in zone 5 all along. But the other key to in getting this to work is we use native species only, anything that's native and adapted to Colorado.
Once it gets established, it really doesn't require much water. So at all, just rainfall. And like I say, the wildflowers are just so easy to do and they provide a lot of color and texture with no maintenance.
David:
Thank you Craig. You're welcome.
Describer:
Craig leaves the podium and takes his seat. Camera zooms from the podium as Kim takes his place.
David:
Item #7. Counselor.
Kim:
You have my report. I have nothing to add to that. There are a couple of items in there that will be taken up under your items 12 and 13. When Mr. Worley gets up and when I suspect Denise is going to make a motion. And that's it. Unless you have any questions. Chris, anything?
Chris:
I do, I have a question. I'm sorry. I do have a question on the second page, which was just. And maybe it's just me reading it here. Three item three under study and negotiated service arrangements with PWSD. We delivered a memo requested by Jim Worley concerning the option for inclusion and consolidation. Pros and cons. I was just wondering, did we have a memo provided?
District Manager, Jim Worley:
Yeah, the next day, I sent it to you. Be happy to send it again. Okay. Hopefully. Yeah, it was from him to me. And then we talked about at the board meeting last month.
Describer:
Camera pans to Jim.
Kim:
Yeah. And I have an extra copy I can, I'll hand to you, too.
Jim:
But yeah, if you need electronic I'll be happy to send it to you again.
Chris:
Okay. Appreciate it. Thank you.
David:
Appreciate it. Item #8 is where this board is going to consider the approving of CRS payroll and utility billing service contract. While we have not been belaboring, the issues as much as we've been trying to, make sure that this is not, a round peg in a square hole where there would be some voids, left behind after Janet's departure.
I think we're there. And and, Jim, kudos to you. The new exhibit, all the inclusions, exclusions, description of the work and scope thereof, were previously agreed to that new exhibit is reflective of the first meeting we had. And, and and without exception. And if you're comfortable with, all the highlights that we've gone through as, as a part of, of those services remaining to be needed, and I know that there were some that were not necessarily needed to continue.
I'm good the way it reads if if it comes with your approval.
Jim:
It does, sir. And thank you for, for the opportunity on it. When I had a conversation with Sue Blair, who is the CEO at CRS, a reminder of the day we had that conversation with her. And she also told me that time. She says, you'll notice, Jim on the bill that I was looking at the time I was on the phone with her.
She says, I didn't you for any payroll for this month. I said, go keep it that way. I love it. But when they when this first happened, there was quite a bit of extra effort, understandably so, to get things done and running smooth. And she said they're smooth enough now that I didn't bill for it last month. Doesn't mean that won't get a bill next month, but this $300 flat rate, I think is very fair.
And if there is a need for more work based on whatever the activity is, if at the time she and I, I'll talk about that before they do the work and then we might discuss it together. But either way, I think this is a good thing. And I've said it a number of times and I'll continue to say it, both Don and and Nancy. Don handles the utility bill, and and Nancy handles the payroll.
Excellent people who work with very knowledgeable, very hard workers and done a very good job. So I do recommend approval of this document.
Chuck:
If I'm stepping on toes, I apologize. But, Jim, on on any legal document that any was put our signature to for on behalf of the metro district are these run through council and reviewed and approved? Yes, sir. Oh. That's all I needed.
Jim:
He's seen them all. I always want everything.
Chuck:
I appreciate your legalese, but thank you.
Kim:
They also have my signature on them, too. So. Or they will.
Jim:
They will. That's right.
Describer:
David discusses off-mic with the rest of the board.
David:
Anyone else?
With that, I would ask my colleagues to consider making a motion to approve CRS payroll and utility billing service. Contracted, contract presented, in our, Directors' packages, this last week and brought forward to today. No changes have been made. And as I mentioned earlier and as Kim reiterated, those documents will carry both Jim and, his, signature to ensure that they, reflect their review and their recommendation for approval.
Is there a motion on to be made?
Board Voting All Speak:
Mr. President, I'll mak e the motion that, we approve the agreement to provide payroll and utility billing services between Casper North Metropolitan District and the Community Resource Services of Colorado, LLC. Is there a second?
We have a motion to approve the contract, as described by Chuck Lowen. And, seconded by Denise Crew. Is there any further discussion? Hearing none again. Minus any objections, there too will accept your silence as a vote of approval. Motion carries unanimously. Item #9 is our finance director's report. Eric. Welcome.
Financial Director Eric Harris:
Welcome. And good evening. My name is Eric Harris with Pinnacle Consulting Group. I'm with, I'm the Amanda Castle for this evening. So, first off, I just want to say, kudos to the consultant team, other consultant teams, and, the staff on hand when the Monday come, the third Monday comes very early in the month.
It is, it is quite an undertaking to get the utility billings out the door to get it the system closed down as well. And so in front of you, you have our financial report, and financial management financial statements as of May 31st, 2019. The memo right here on the front. I just wanted to highlight a couple items that change from prior months, from budget variances and things of that nature.
As we prior reported, well, let me start off with property tax revenues. The this, the district has, collected $2.184 million in property taxes. That accounts for about 69% of the amount levied for collections in 2019. This time last year, we're at 71%. Some of those major differences were from, we had a large commercial end user, which we probably reported.
And, some, some people prepaid their property taxes in the prior year because of the tax law. They took that stance. But either way, we will collect all this property taxes for this year. As we prior reported, we, are trending slightly under our budget on our SOT, specific ownership taxes. So that changed from did not change from period over period.
Item #4, with our general fund, we've revised the projected expenditures to $3.6 million. And our general fund that is currently $79,000, approximately $80,000 underneath our adopted budget at this time frame. On item #5 on our enterprise funds, the district collected 33 SFE fees, connection fees for the month of May. And so we've revised our projections up to approximately 193 connection fees for the 2019 calendar year.
In our rate study, we did use 60 per year, and in our budget, we had 120 per year. So, those fees and applicants are coming in a lot quicker than we anticipated. One of the larger items to highlight on, 5B we, revised projections for the water service review the new down to 13, down 13 or 14%.
This is a, to account for the wetter year that we've had to date, as well as in line of where we've been in prior years with usage in 20. So far this year, we've, we've built 117 million gallons of water in 2018. At this time, we had 132 million gallons of water that were billed.
Are there any questions on the memo?
I'll continue this briefly and highlight a few other budget variances, that we had, moving forward, more specifically or highlights, if you will. The six one, debt service payments were made. That's in accordance with, the Chase loan that was, closed on December 31st of last year. We had a semiannual payments ever due on 6/1 and 12/1 of each year, as well as interest only payments with the district's certificates of participation that was made on 6/1 as well.
On page 5 of the financial statements. Under Parks and Open Space, I just want to highlight a couple items. The irrigation expense is a non-cash transaction. So that's between, the district, enterprises providing, utility billing services for all the open space water that's billed. So that's a large item, that accounts for a big, huge portion of the open space budget. So just want to allow you we track that throughout the year, and especially as irrigation comes on during the summer, we'll trend that as necessary.
Working with Craig to see when he shuts off, the irrigation clocks and, everything else for the winter time. Specifically on page 7, the conservation trust fund. Just a highlight. We don't bring this up too often, but, we budget, a proposed budget in the years past and for 2019 that the district does expend all these proceeds.
We have collected the first quarter, distribution, that's known as lottery proceeds, but primarily that's, that's distributed by the state through monies through the federal government. So all the anglers and hunters and fishermen that are out there, that's where you see those proceeds. And so those monies are available in the district's account and segregate it off for future projects.
So there are some rules and guidelines around those projects. And so, please just vote those through and we'll adjust our projections as necessary. When those projects do come around. On page 10, one more item to note. We're now getting in the process of, under electricity, for our utility buildings or the utilities that are paid by the metro district, you'll see towards the top of the page are electricity for, well, pumping, electricity for the water treatment plant, booster pump stations and interconnect pump stations.
So this is one of the large variable costs that the district does have, primary providers on this as, Excel and, IREA, And so as we draw on those wells throughout the summer, you can see we adopted a budget $679,000. And so we do monitor that and trend that. And we, the operations folks to optimize the system so that they do minimize that cost.
But those are the ones, the cost you'll start seeing trending up as we get into the summertime right now. So just wanted to highlight in the financial statements for you.
Chris:
Can I ask the question since you're on this page? Yes, sir. Up above that where it says ditch land rights expense actuals of $46,000 budgeted $1134 over. What's that?
Eric:
So these are costs that, that are I believe, are reimbursed. I can't remember off the top of my head by the four types of different ditch shares that the district does hold. This is the Fulton, the Platteville, the Meadow Island in the last one escapes me. Jim. But yes, we have four different types. So we are required to pay not only operating assessments and capital assessments on those per year.
And so currently the district does lease those rights out to, on, people that are utilizing those on the farmland that the district purchased in Weld County. So the water, water rights acquisition from about a decade ago. So we've been receiving farmland revenue. And our general fund here is, this is reimbursable income. So it's just a timing difference.
We'll see this come back around to us.
Yes, sir.
Describer:
Camera pans to the board as David asks his question.
David:
Does the, does the, cost to date, and even more importantly, do you recall that we contemplated the high, capacity users credit on our budget for, electricity? It was substantial this year. And whether or not you recall or not is okay. We want to make sure that we take into account because it is lagging credit that we receive. Correct. Just make sure that we.
Eric:
And we did we did both that in the prior month, that credit that we did receive.
David:
But I want to make sure it's a part of the budgeting process.
Eric:
Understood. And it was my understanding that was a one time credit that we received. But if that's that would be news to me. If it's an annual credit that we do receive.
David:
I think the the agreement I've seen recently, is, is we're afforded that credit as a user. And it may be something that vacillates with their board. But I as I recall, we're do that. We're in a position to receive that credit this year as well.
Jim:
I believe so, but but Eric's right. We're not sure what will happen.
Eric:
Wonderful. We'll circle up and get that correct and make sure it's included in the 2020 budget. Okay. Thank you. Thanks.
Moving on to pages 16 and 17. This is a page that these are pages that don't typically get a lot of highlight. But the purpose behind these is are, any sort of fund restrictions or to make sure the district does not enter into any contract that exceeds the appropriations. So what we do is we monitor this as a monthly, on a month to month basis to make sure for trending over on our projections or, by fund, of course.
And so if necessary to recommend a budget, amendment as it, as it goes right now, the only, we're not trending over on any of our major funds is just our conservation trust fund. That's only for the interest incurred because we project to spend any sort of proceeds that we, get into that fund.
On page 20, you have, a monthly disbursement summary that you'll be considering later a total of $884,624.67 in a combination of general fund, open space, enterprise and electronic payments will be considered later in the agenda for your, ratification. And additionally, on pages 31 through 44, you will see, a listing of all the disbursements for the prior month.
Are there any questions?
David:
Do you want to address item 10A on the agenda, the 2nd of three $2500 renewable water investment tap fee increases?
Eric:
Certainly. So in our projections, we've taken under consideration, for the renewable water investment Fund revenue, increases related to any sort of fees after each subsequent rate hearing to be included in, projected profit or loss for the district. So, this evening on 10A, there is, consideration at a rate hearing schedule, I believe, for the second of three, $2,500 renewable water investment, tap the increases.
David:
And do we have it? I have forgotten, because we were it was a moving target, so to speak. What is that effective date? Do you remember, Jim?
Jim:
Tomorrow, or actually tonight. Tonight? Basically, yes. Very good. Is what you did, two months ago. It was at. And then you'll have another one in front of you, another two months of the same $2500. And it's really effective that night, the next morning I update our sheet and I send it out to the builders, let them know what it is.
They already know what's happening, you know.
David:
Very good. Thank you, thank you.
Eric:
Wonderful. And so do we need to have a rate hearing for that? Okay. Okay. Wonderful. Thank you very much.
Jim:
I would think that probably what we need. And Kim, you can jump in here would be approval. A formal motion to approve default.
Eric:
Are there any other questions? From me before that, consideration.
David:
Hearing none. Thank you for your report. Appreciate it. Comprehensive is always informative, to say the least. With that, and no other questions for Eric or for pinnacle. If my colleagues would allow me to entertain, to introduce a motion, to consider the financial report, given tonight, and the items from our finance director, including, also including the update on the second of three $2,500 renewable water investment tap fee increase is scheduled to begin at midnight tonight, as well as, for a motion to approve, and ratify the current payables for May 2019. As, Eric mentioned, totaling $884,624.67. We're only ratifying, tonight because of a timing issue. And, but I, for purposes of reading it into the record, will read those, cumulative sums, into the record along with my motion, from the general fund in the debt service.
$64,936.31 and from our enterprise fund, $290,997.09 in all electric. Excuse me, all electronic payments from all funds, $528,691.27. For again, a total of $884,624.67, making up the payables for 2019. Is there a second?
Board Voting All Speak:
I'll second that. We have a motion on the floor to approve the financial report and the items contained therein, inclusive of the second of three $2,500 renewable water investment tap fee increases beginning at midnight oh one tonight, as well as the ratification of the current payables for May 29th. Is there any additional conversation from the board? Comments, questions? Concerns?
Hearing none, I'm going to, call for a vote. If you would, please, when I call your name, affirm. Same. Or, cast your vote. Otherwise, Director Crew. I. Director Merritt. I. Director Lowen. I. And Director Lewis. I
David:
Director McEntire is, I as well. Motion carries unanimously. Thank you again, Eric. Item #11, is, is, the initial presentation from Russell White, CPA and partner at the firm, Rubin Brown, who is going to present the draft, the initial draft of the 2018 audit. Gentlemen.
Describer:
Camera pans to the podium as the partner from CPA and RubinBrown
Russel White, CPA & Rubin Brown:
Good evening. Board. Management consultants, Russell White, partner in charge of this, 2018, audit engagement, for the district. I have my, manager in charge who was the lead out here, for this audit. And I'm going to give him an opportunity to present. And after he presents, then I'm going to give a quick recap, and, we can open up for questions after that.
So Andy Anderson, is going to do a quick five minute presentation, and then I'll, do a little quick recap. Andy.
Describer:
Russell steps back from the podium as Andy Anderson takes his place.
Andy Anderson, Rubin Brown:
Thank you. Russ. And, just wanted to thank you all for your time and the opportunity to present the 2018 draft financial statements to you, which I believe you should have in front of you. Just wanted to also thank your team here at the district, your staff, your team. They were very helpful throughout the entire engagement, very supportive. And, we're just very grateful for their all the work they put in on their end as well. So starting into the financial statements, you'll see our independent auditor's report in pages 1 through 3. You'll see our audit opinion is an unmodified opinion which is clean.
It is the best opinion you can get. And keeping it high level. It was very strong year financially for the district in 2018. Looking at page 4, the statement of net position, you'll see, significant changes between 2017 and 2018 and assets, you'll see a large increase of about $15 million. A large part of that is in cash.
And the other large part of that is due to capital asset increases and capital assets increased because of two projects that are ongoing. That is the Chatfield reallocation project, as well as the Plum Creek Water Reclamation Authority project, which is expanding the water reclamation services for the district. You'll also see that debt, long term debt, increased by about $8 million between 2018 and 2017.
That is in relation to your capital projects as there is debt related to those projects. So overall, this led to an increase about $8 million in your net position. And so if you look at page five, the statement of activities, you'll see further detail of the increase in net position. You'll see it was another good year. So that increased net position is in large part due to an increase in revenues, which was a result of, the approval of increased rates as well as increase consumption during the 2018.
And even though there were significant increases in revenues, expenses were also held in check. So they didn't increase as much as revenues did. So that overall leads to a significant increase in net position. So on pages 6 through 13, those are the individual fund financial statements. So that's just further information surrounding each individual fund that the district has.
On page 10 you'll see the enterprise funds, their individual financial statements. And we've pretty much already discussed the increase in cash, the increase in capital assets, the increase in debt. You'll also see that here at page 10. On page 11 you'll see the, net income for these funds. You'll see that there it was another strong year for the enterprise funds with the net income about $6.9 million.
On page 13, you'll see the statement of cash flows. So this, correlates to the the the large increase in cash during 2018. A lot of this is a result from operations, from strong operations. So getting back to the the increase in revenue while holding expenses fairly consistent, then we get to the notes to the financial statement, which are, you know, page 14 through 45 and just highlighting some of the key ones, as we already discussed, the the significant changes to capital assets.
You'll see further discussion of that at pages 28 and 29. And you'll also see further discussion of the increases and long term debt at page 33.
Moving on through the rest of the notes and the rest of the required supplementary information and all that. A lot of these are fairly standard and common for a district. And the, the required supplementary information gets into some budget to actual information, that the state will look at that. And it was just, a lot of very positive. Budget variances there. And, overall, just, another strong year for the district.
Describer:
Andy steps from the podium as he finishes his presentation. Russell returns to the podium.
Russell:
Thanks, Andy. Appreciate that. Overall kind of takeaways, quick takeaways. One unmodified opinion that equals a clean opinion in the CPA profession. That's the highest you can get. Two cash, increased fixed assets, increase in debt, increase due to, rates and consumption on the cash, and the fixed assets and the debt increase based on the two projects that they had and overall cash increased on the enterprise, fund, about $1.3 million.
So we've highlighted what we feel is the significant items in our audit. We looked at other areas, but in a 57 page report, you know, I don't want to push it, you know, too much to sleep, but those are financial highlights. If you have any questions, you can open, we're open for questions right now.
Jim:
If it's okay, Mr. Chairman, I'll let you know the timing of this so that you can address your questions. We have to file this report by either July 31 or have a 60 day extension, which is no problem at all. And so our thoughts tonight are I know this is a heavy document to look at. And so you could wait till next month to formally approved if that's what you want.
Or you could do it tonight. It's entirely up to you. But that's the timing of what this has to be done. And give you some some flexibility.
Describer:
The Board discusses off-mic as the camera pans to them.
David:
Thank you again for the, presentation. This evening could not, have, have, received better news. At the same time, Russell and Andy, well, we appreciate the time and effort that you placed in the interest that you have in the district. Know that it is not reflective of anything other than your professional opinion.
And, the kudos, really belong to, the staff, of this organization and this slate of directors. And I, will take again just this last opportunity to give kudos to the original slate of directors and those that joined us along, the line for their efforts and the anniversary that took place last month when I was remiss and and, wishing you a happy anniversary, but, again, thank you for your interest.
Thank you for your hard work. Thank you for, taking our calls and receiving them and making them, this is, a 70 page document, and we're going to take, the next 30 days. I think our next meeting is on.
Yeah. July 15th. We're going to defer any action on, on this document until July 15th. In the meantime, we know that you're at our disposal. We appreciate that and will use your time wisely. Thank you again.
Describer:
Camera pans to the Russell and the other staff.
Russell:
Thank you. And, thank you for allowing us to do your audit that we appreciate it. And, again, like Andy said, we appreciate, all the efforts that, the consultants in the, I'll just say the all the the new members that are on your team, they really helped. And, they, they really made a difference to get us to this point today.
So thank you again.
Describer:
Russell and Andy leave the podium and take their seats as Jim walks up to give his report.
David:
That completes item #11. Again, we'll make sure that that gets on the agenda for, July to take action on the 2018 audit. Draft audit item #12 is a report from our district manager. Jim, you have the floor.
Jim:
Thank you so much. My report is there. I want to point out a couple of things that are not necessarily on the report. You'll notice in your hardcopy packet that you got last Thursday. There's the annual report from the Chatfield Reallocation Mitigation Company. You have to say that real fast three times, if you have trouble going to sleep at night, open that up.
That'll put you to sleep. But a lot of good work going on out there. And so I brought a copy for each one of you. And, and if you got any questions on it, give me a buzz at some time. The other thing I want to I want to thank Carl. First of all, I called him early the whole time we were walking around today.
And so tonight he said, no, it's Carl. I said, okay, I was close, but thank you. Thank you for coming, Carl. Appreciate that.
Describer:
Camera pans between to a shot between the audience to the right and Jim on the left.
Jim:
You know, we've had an issue with Water Lake over there, if you might recall, in an island over there. And last fall we came up with a game plan. We'll turn on different systems at different times to see where that came from.
And that turned out to be the reason how we found out what it was was not a district line. And so us meeting out there today, everybody went, there it is. Check that off the list. After a long time. And the other is a discussion that we had a while ago about this trail entry. They had come to me with some, some a little fancier.
I'll say, design. I'll call it the back of a napkin type design wasn't done by an le. But when we got out there, we said, let's talk about another thing. What about? Because it is going into a natural area. And so that turned into cobble that could go in, which would define that. Well, the, the, wildflowers that we talked about there looked gorgeous.
Want to say take route. And so everybody was very happy with that. And so I just wanted to report that to you. And thank you to Craig. He's not here now. He is so knowledgeable and and really helps us understand a lot of good things about what's going on out there. And then he brought an out there and he found systems.
And so it was a very good meeting. And thanks again, Carl, for coming. I appreciate that. I don't have anything else unless you have questions on, on, my report.
Describer:
Camera pans to the board as Denise asks her question and then between the board and Jim as he continues.
Denise:
I have one question on Esperanza. Does any of this require, it's always on Kim's legal report. Did we knock out attorneys? We don't need any agreements?
Jim:
We knocked that out. Yeah, last fall or summer. Some of them came to you and you said, give us an LA, you know, design, blah, blah, blah. And Kim's been moderating that. And then once we got this back of the napkin type, discussion, I set up this meeting and said, let's get out there and talk about it. Okay.
And that's that was very good today. And so by having three of their board members there. Great cooperation. Absolutely, absolutely good people. We're all in this together. So let's get out there and figure out what we're doing. Okay.
David:
Jim, I can call you later. About this Chatfield report and I was finding it difficult to sleep, a few nights ago, and and did as you suggested, open the the book. But it is an incredible project. The hoops that, this organization has been party to, at the state, the local, the state, federal level, is big and and, the fact that we're coming down on the homestretch is even more exciting.
I would like, for you to provide us with a update on, the total ownership of home and and the totals, percentage wise or or acre feet of ownership, of the reallocation portion, please. And and, I know that, this board has a keen eye and an interest in, our renewable water, endeavors.
And, that plays into obviously, some of the good planning of the past and, and, the planning of the future, I suspect with, what we have already is 1006ft of acre feet and more available.
Are you aware, so. So, just a pie chart or something of that nature?
Jim:
Yeah, I'll send you a list that I have that identifies everybody's portion.
David:
And where I'm going with that is, is, it's my guess that the largest owner, may still be the state of Colorado or the federal government. I don't recall the, specific entity, that holds all the non private, ownership percentage, but, I know that we've been given it. I just didn't have time to recover it.
And I don't want to take a stab at it, but I'm interested in knowing whether or not, that percentage, their ownership has waned. In other words, has anyone come in and bought any additional acres of storage? And, and it would just be interesting to know as well as from a value point of view, as we take a look at the prospect of our capital plans, for our renewable, water, projects, as well as the value of the assets that we already have, what the value was on per acre foot of the last purchase that was made out there.
Jim:
I'll have to get that for you. I don't know that.
David:
And it can all be scratched on one single, piece of paper. Like I said, we had a pie chart at one time. I'm just wondering if it changed and what that would value is, quick down and dirty. Scratch would be great. And lastly, And maybe council weighs in on this as well. And it we don't have to get into a long discussion about it, but, what level as a, as an owner of a reallocation project, as we are and even the board membership that you make up and our are, party to what type of indemnifications from the liabilities of having this kind of an asset are typically addressed in a in, a project like this is, is everyone just do cross indemnification and ultimately it's the Corps of Engineers. If this guy breaks open and things go crazy. Because I saw this just laced with layers and layers and layers of, reports and and analysis and engineering to back up every conceivable question, comment or concern that anyone would have.
But at the end of the day, does the district are they fully indemnified, for any liabilities of, of mishap or failure or, or defects in this project? Council?
Kim:
Mr. Chairman, I don't know the answer to that. I'll take a look at the agreements and let you know. Typically, though, the project is undertaken by some central agency, which might be the core in this case, I'm not sure. And then, the liability flows there. You also have a lot of protection through the Colorado Governmental Immunity Act that prevents you from being sued for tort actions.
Contract actions, of course, are wide open, but you wouldn't have that problem in this kind of project. But I can take a look and see if there are cross indemnities or something going on in the in the contract documents.
David:
Yeah, I don't want to raise any concern. Rather we would like to edge the education. I know that as it relates to Open Space, we lean on some of that Colorado statutes for, protecting our shelves. If someone were to get hurt or something were to happen on on these kinds of trails where everyone hasn't signed a specific or personal indemnification or liability release, etc., if it's the same kind of, protection in a, in a project like this, that would be sufficient.
Just curious.
Kim:
Would you like that in the legal status report for next month, or do you want something sooner.
David:
Next month's fine. Okay. Jim, thank you. Thank you. Item #12 is finished. Item 13, director's matters. Without any further ado, I want to give the mic and the floor to Director Crew.
Denise:
Thank you. Colleagues, as you know, I've always been a firm believer in disbanding the Parks Authority. It was the first step toward making our community parks funding and governance structures more efficient, clear and transparent. After nine months of focused trench work, I'm pleased to announce that during our Park Authority Board meeting this morning, we finally persuaded our colleagues on the Parks Authority Board to dissolve the Parks Authority itself and to transfer its $719,000 fund balance to the City of Castle Pines Parks and Recreation Fund, the intergovernmental agreement to which the Parks Authority Board agreed, has two signing parties.
As we discussed, the City of Castle Pines and the Castle Pines North Metro District. The IGA requires the city of Castle Pines to apply all existing principal and future interest on the $719,000 fund balance to existing or new parks, trails and associated amenities, specifically within Castle Pines neighborhoods whose residents historically paid the master Association's annual Parks Authority assessment.
I'd like to make a motion that this board formally review and approve the Parks Authority dissolution IGA and authorize President David McEntire and our legal counsel, Kim Center, to sign it. As you know, Mayor Tera Radloff and City Attorney Linda Michow have already assigned the agreement. And again, I want to say a special thanks to Deborah. We've we've really worked hard, but we got it done.
Thank you.
Board Voting All Speak:
We've got a motion on the floor. Is there a second? I'll second that motion. We've got two seconds.
It's a majority as we speak, We'll square that motion. We have a motion on the floor to approve the intergovernmental agreement regarding the transfer of cash money, Park Authority assets to the City of Castle Pines. The termination of the establishing contract for the Castle Pines Park Authority, as amended, and for the dissolution of the Castle Pines Park Authority.
This is truly a stepping stone for a bigger vision or fulfilling a bigger vision. That I think we all share. One stop shopping economies and efficiencies to the nth degree for all of our residents. Accountability. Where it is easily found transparency, honesty, quality, safety and appreciable value. So, Denise, thank you for representing us, so wisely.
And, and, your accomplishments. Kudos to Councilwoman Mulvey and, the residents who participated in, this action. If there's no other further discussion, comments or concerns. Robert, do you have anything to Chris that good? I'm going to call for vote for the record. As, as a motion was made and seconded, Director Lewis. I. Director Lowen. I. Director Merritt. I. Director Crew. I.
Director McEntire is and I as well. The motion passes unanimously. Thank you very much.
Describer:
David briefly turns off the microphone. The camera pans across the room as David and the crowd applaud, panning back to the board soon after.
David:
Are there any other matters tonight you would like to undertake? As a part of director's matters. And before we pursue the last public meeting item? None? We've talked about Chatfield. We've got the Park Authority. We have the audit underway. I, I think we're truly, in great shape and and the whole Esperanza thing is, is is just kind of, not new, neat and exciting, but new neat and exciting.
For, for reasons that we talked about, even without you as a guinea pig, if I may, on some of the other challenges, with, with, people trying to earnestly and sincerely figure out. Who does what and and and if you're going to do something, how much and how much is it going to cost me?
And why isn't everybody treated in the same way, etc.? And it's one of the interests that this, this board has, taken and initiated in some cases and participated and will continue to participate in, creating that transparency, creating a sense of honesty, and comfort amongst our residents that, they're not going to be unfairly taxed, and will know, about our every workings, along, along the way. So, that being said.
I'm going to close Directors' Matters. I'm going to open up the, closing public comment period. If there's anyone that remains that would like to say a few words. Seeing and hearing no one willing to do that. And Councilwoman Mulvey, you know, welcome back to to, being able to speak again. It's a cute little voice, kind of like a little Mickey Mouse or Minnie or or something, but,
No less effective. How's that? Thank you again for everyone's participation. In tonight's meeting. Especially those that came to visit, those that are online, my colleagues, staff, and consultants. Is there a motion, that one of my colleagues would like to make to adjourn this meeting?
Board Voting All Speak:
Hearing a rousing motion. To adjourn the meeting. Jim, you want to make it? No I gotta go home. is there a second? Chris, you're going to second that motion. So second, Chris and Chuck seconded. Director Merritt and Director Crew made it. I couldn't argue with it. All those in favor signify by saying I. Resounding I. I. Any opposed? Meeting adjourned. Thank you very much. Thank you. Good job.
Describer:
Meeting adjourned. The video fades to black.