November 15, 2021 Video Board Meeting
Transcript
Describer:
AGENDA
Board of Directors Meeting
Monday, November 15, 2021, at 6:00 p.m.
7404 Yorkshire Drive, Castle Pines, CO 80108
- Welcome / Call meeting to order / Pledge of Allegiance.
- Roll call / Determination of quorum / Disclosure of potential conflicts.
- Consider approving November 15, 2021 board meeting agenda.
- Consider approving October 18, 2021 board meeting minutes.
- Opening public comment period (three-minute maximum per person).
- Open Space Manager’s report.
- Finance Director’s report.
A. Public Hearing on 2021 Amended Budget and Proposed 2022 Budget.
B. Consider approving 2021 Amended Budget and Proposed 2022 Budget.
C. Consider approving financial report, payables, and claims for payment, including check numbers 26403–26514 (October 9, 2021–November 5, 2021).
General Fund & Debt Service Approve $256,873.40 Ratify $19,409.42 Totals $276,282.82
Enterprise Funds Approve $353,734.91 Ratify $650,349.37 Totals $1,004,084.28
Electronic Payments (all funds) Approve $0.00 Ratify $75,723.82 Totals $75,723.82
Total Expenditures Approve $0.00 Ratify $0.00 Totals $1,356,090.92
- Legal Counsel’s report.
- District Manager’s report.
- Directors’ matters.
- Closing public comment period (three-minute maximum per person).
- Adjourn.
Describer:
The video starts on graphic with a white background and forest green letters which says “Castle Pines North Metro District Board Meeting November 15, 2021”. The meeting opens on a shot of all board members present. There is also a T.V. screen showing the Zoom meeting for people joining the meeting via Zoom.
Board President David McEntire:
Welcome everyone. Everyone that's viewing online those that are here this evening with us make sure that you've signed in. If you wish to speak or be recognized regardless again welcome and thanks for joining us this evening. Before we get started I'd like to ask everyone to join us in saying the Pledge of Allegiance.
Describer:
The board members and the audience rise from their seats and recite the Pledge of Allegiance. When they are done, they sit down again.
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.
David:
Thank you for that. I would like to call roll to establish a quorum. And in doing so please disclose any potential conflicts when called upon.
Board Member Director Denise Crew:
Director Denise Crew. Present. No conflicts.
Board Member Director Robert Merritt:
Director Robert Merritt. Present. No conflicts.
Board President Chuck Lowen:
Director Chuck Lowen. Present. No conflicts.
Describer:
Chris is joining the meeting via Zoom.
Board Member Director Chris Lewis:
Director Chris Lewis. Present. No conflicts.
David:
Director McEntire is here, have no conflicts. Quorum established items three and four typically will combine. Given the time that we've all had over the course of the last 30 plus days to consider not only the November 15th board meeting agenda. But also the October 18th, 2021 board meeting minutes. If there are no immediate comments, questions or concerns can we get a motion for approval?
Chuck:
Mr. President, I'll make a motion that we approve the November.
Chris:
I second it.
Chuck:
November 15th, 2021 board meeting agenda. And the October 18th, 2021 board meeting minutes.
Chris:
I second it.
David:
We have a motion and a second to approve tonight's agenda and last month's meeting minutes. Any further conversation by the board? Hearing none please indicate your wish to approve or deny. when called upon.
Board Voting All Speak:
Director Lewis. Approved. Director Lowen. Approved. Director Crew. Approved. Approved. Director McEntire is approved. Motion passes unanimously.
David:
We have item number five which is our first of two open public comment periods. We have of course on our agenda. The note that there's a three minute maximum per person. We have a number of folks that have joined us here tonight. And again, welcome to everyone. I am not seeing anyone that is wishing at least this go round to speak. Having said that, I'm going to close the open public meeting period number one and hastily move to item number six which is our open space manager’s report. Craig, are you with us?
Craig Miller, Supervisor, Parks, Trails, and Open Space, CPNMD:
Yes I am thank you.
David:
You have the floor.
Craig:
You have in front of you my report. Does anybody have any questions on it?
Chris:
I have a comment. So I've actually been doing some of the trail walks just to check out and see how the, the trail replacement has been going. And we are doing an outstanding job in the trails outside of Monarch Boulevard. So I think there's only one area where I saw some blacktop and that's coming down from the top of one trail and joining the bottom set of the other trail before it goes up that incline. But other than that it looks really good.
Craig:
Thank you, Director Lewis. Some of the, the trails, are you speaking to the North of your neighborhood? Yes. Yeah, some of that is owned by the golf course and not on our property. So there are some disconnects there obviously due to that. We have completed all of our trail system with the exception of about 4000 linear feet. Which is mostly on the east side of the power lines on the east side of, of where the district office is and that is going to be slated to be completed next spring.
We basically used up our budget for this year and we have enough money budgeted next year. We put in a line item for concrete repair and replacement because we do have a lot of sidewalks along the roads that need to be fixed. And a small portion of that will go to complete the rest of those trails next year. But I appreciate the compliment, yeah.
Robert:
Craig real quick, when will we have completion on the original bridge that you mentioned in your report?
Craig:
Any other comments?
Chris:
Hearing none, I'm going to go again. So the bridge, that bridge is definitely in need of repair. And I'm happy to see that we're actually going to start replacing that because I was there up to yesterday. I was walking that bridge. And so it'll look really good once we're done. So thanks for putting that on the list too.
Craig:
Yeah, absolutely. We're fortunate to have the budget to be able to do that this year. Unfortunately, it is a very difficult bridge replacement because to access those boards to remove them, it has to be done from underneath the bridge. And that area is obviously full of water. So our contractors are going to have to be in there with waders. And it's not going to be an easy replacement, but it is definitely doable. So we're looking forward to having that completed as well.
District Manager Jim Worley:
Craig, Robert asked when do you anticipate that to be completed?
Craig:
Any further comments?
David:
You need to turn the mic on, try it.
Robert:
Craig, can you hear me? That's fine, he said this year. That's good enough.
Craig:
I don't have much more to add other than you read up my points regarding the damage to some of our landscaping and some of the drought stress that's occurred to the trees due to the road replacement.
David, our Parks and Open Space foreman, was out today watering like crazy. It was a beautiful day to do some tree watering. So hopefully we can get enough moisture to those plant materials during the winter time to get a lot to survive.
David:
Craig without belaboring the issue knowing that we have been working on 2022 budget which included a reconciliation of 2021's projects at hand the report has.
Craig:
Got no further comments, that's all I really have.
Chuck:
Obviously he’s not listening to us.
Robert:
He might not even be able to hear us.
David:
Craig, Craig, can you hear me?
Craig:
Are you able to hear me? No. We can hear you, Craig. We're not here in the room.
David:
None of it is critical for the meeting. We can move on.
Chris:
Okay, now we're hearing the room.
David:
Craig, can you hear me?
Craig:
Yes, I can.
David:
All right, technical problem solved. No, I was just saying that I appreciate all the time that you, amongst many others have spent on, on, our budgeting process for 2022. And I could tell that in this report you were recapping all of the projects that we had on the books for this year. I suspect that other than indicating what percentage, if not 100%, by the end of December, there are no other projects that you're concerned about completing this year. Is that true?
Craig:
That is correct.
David:
Very good. Just wanted to confirm that. Great job in 2021 my friend, thank you.
Craig:
Thank you, appreciate it.
David:
Hearing none, I'm going to go ahead and close Craig's report. Jim, you're good with that? I'm going to close Jim report or Craig's report item number six. And open up number seven which is the finance director's report. I think that prior to. Well let me first make sure Amanda is with us. Can we hear Amanda?
District Finance Director, Amanda Castle:
Yes I can hear you and I am here.
David:
Fantastic, Amanda. I think that what we'll do initially here is, unless you want to open up with any high-level comments regarding the 2022 budget. We'll just open the public meeting now. Is that all right?
Amanda:
Yeah, I think that's great. We need to open it for the 2021 amendment. Which is just really due to the inclusion, paying off debt, that sort of thing. And then the 2022 budget.
David:
Well we might as well open them up in tandem. You can speak to them separately can you not?
Amanda:
Yes sir.
David:
I'm going to go ahead then and open up this meeting to consider approving the 2021 amendment to the budget and the proposed 2022 budget. Do you want to open up with some comments then Amanda?
Amanda:
Yeah absolutely, so I'll start with the 2021 budget amendment. So just high level in the general fund. We actually anticipate an excess of revenues over expenditures. So that one does not actually require an amendment. We can amend the entire budget to projection. It doesn't hurt anything. And in fact, I lied. It would require an amendment because the expenditures are in excess. But in the general fund
So to our revenues because of the sale of the assets from last month. Because of that, while we are anticipating projected expenditures in excess of $20.2 million, we're also anticipating projected revenues of just under $32 million with the sale of that asset. The main piece of that expenditure is a transfer to the COP fund to pay off the remainder of the COPs.
So the general fund provides base rental expense to the COPs, and that expense is recognized as revenue in the COP fund and utilized to fund those payments on the COPs. So you'll notice on the cop special revenue fund we're anticipating total expenditures of just over $20 million dollars that will completely pay off the debt and close that fund in its entirety.
Beyond that we are looking to amend the water, wastewater and storm drainage activities due to activities also associated with the inclusion. So as part of that agreement a portion of the revenues and expenditures in the wastewater and water fund will be utilized to help pay off that debt that increases the projected expenditures in the water fund from an original budget of $4.5 million dollars to $14 point almost $14.5 million.
That not only is the payment to the general fund to help offset the cost of the payment on the COPs, but also represents the payment associated with the CWCB loan that was also paid off in September. In the wastewater fund, we're anticipating just a slight increase in expenditures from $2.2M to $2.8M. And then in the storm drainage fund, we're actually not anticipating any increase there.
Desceriber:
When Amanda says $2.2 or $2.8 she means in millions.
Amanda:
Like I said, those primary increases are really just due to a transition in revenues and expenditures that help to offset the cost of debt associated with the inclusion. As part of the inclusion, we're paying off all that except the Chase loan. I'm currently working with Chase to try and see if there's any way to get that loan paid off. But right now that's the only debt that would remain outstanding at year end.
If there are any questions on 2021, I would be more than happy to answer them. If not I think we can probably close the public hearing on that one and vote to amend. Unless you want to do it together David and board.
David:
Yeah it, we can, we can do them separately. But I don't, I want to make sure that we overemphasize the fact that this amendment is strictly a byproduct of the inclusion with Parker Water and Sanitation District in as much as that.
In, in general terms, we are to be 100% debt free upon January 3rd or the inclusion date amongst a number of other terms and conditions that are not only, have been underway since the vote of the residents back in May. But will continue not only through the end of this year and including what we believe to be the record closing date of January 3rd.
But for some period thereafter. As Amanda mentioned there is one loan that the lender is being difficult on. As you can only imagine being, being a lender and not wanting a prepayment. I can't, but regardless that was the terms and the conditions of our Chase loan. This was a part of the Chatfield Storage Agreement.
The term expires in 2025. The funds we have, the funds right now are currently being considered to be escrowed upon January 3rd and those payments being automatic. So as if it was paid off and those are acceptable terms to Parker and the rest of the parties at this point. But again wanted to make sure that there is no misunderstanding that this amendment has nothing more to do with operations as much as the inclusion.
Okay, with that I will close the first part of the, of the public hearing. As far as comments I'm going to open it up to the audience that is here with us, the residents and attendees. For any comments that you may have in regard to that amendment for 2021. Anyone on Zoom?Hearing none, I'm going to close the public hearing on the amendment for 2021. Ask for a motion from the board.
Chuck:
Mr. President, I'll make a motion that we accept amendment number one on the Finance Committee.
David:
There's, there's a motion on the floor to accept the first or, excuse me, the budget amendment for 2021. Is there a second?
Robert:
I'll second that motion.
David:
Okay we have a motion and a second to approve the amendment. Again the catalyst of, of, of the inclusion terms and condition agreement that was voted by the residents in May. Is there any further discussion by the board? Questions for Amanda? Hearing none. I'm going to close the public hearing, close the comments and questions portion of the board and ask for a vote. When I call you please indicate your preference, yea or nay.
Board Voting All Speak:
Director Lewis. Yea. Director Lowen. Yea. Director Denise Crew. Yea. Director Merritt. Yea. Director McEntire is a yea. That motion passes unanimously.
David:
We will open up the second part of the public hearing for the proposed 2022 budget. Amanda, high level comments please.
Amanda:
Absolutely thank you sir, I appreciate it. And thank you everybody for your confidence in that vote. The 2022 budget looks a little bit different this year. Obviously with the proposed inclusion happening on January 3rd that will alleviate costs associated in the water and wastewater fund. So very high level the general fund is anticipating collection of $18.79 mills. That coupled with, coupled with additional taxes for specific ownership and some other miscellaneous revenues. Brings total revenue in the general fund to $4.4 million.
That revenue is then utilized to help offset the cost of expenditures. You will notice some expenditure line items in the general fund appear to have increased. That’s simply because the general fund will absorb costs that were dispersed amongst funds before. So there were costs associated with payroll. There are costs associated with accounting and finance and that sort of thing that while that cost in total went down. The effect on the general fund was a slight increase in those.
But in total, like I said, things did go down. Where there was a split in costs. Those are primarily split 75% for the general fund and 25% to stormwater. Because there's very limited costs that are associated with the stormwater fund. In total, the general fund without parks and open space is anticipating expenditures of $759,000. We then add expenditures relative to parks and open space, which will be the primary operations of the district.
Those costs, including capital costs to Craig's Point the $150,000 in concrete repair and placement bring total expenditures in parks and open space to just over $2 million. We then have a payment to Parker Water and Sanitation per the inclusion agreement. It's called a PILT, a payment in Lieu of Taxes. That payment is calculated based off of the taxes that Parker would have collected if we were included in to Parker this year.
That payment, coupled with the debt service expenditure for Chase brings total other expenditures to 1.7 million. We do have a healthy beginning fund balance that is comprised primarily of some revenues that will receive from the sale of assets as well as a reserve for that Chase loan. So as David previously explained, that loan will be escrowed.
So it will be holding the money for future payment. So you'll see that dwindle every year. That leaves the ending fund balance at just under $15.4 million in the general fund. In the Conservation Trust Fund, we collect revenues quarterly. We're anticipating $46,200 in revenues. You'll notice those are expected to offset a fairly substantial amount of expenditures. Those can be utilized for parks and open space.
And there are some projects in Coyote Ridge that will be done in 2022 that we will utilize those funds for. So it's our intent to utilize all available funds in 2022. We'll then continue to obtain those funds as the years go on. And the boards at that point in time can choose to use those funds as they see fit. As long as they're within those parameters of the CTF funds. The COP fund will no longer exist because the COPs will be paid off in their totality in December.
So that fund goes away. The water operating or water operations you won't see any revenues for. I'm just going to scroll to the bottom. Well I'm scrolling. You can't see what I'm doing. At the bottom of the water fund, you'll notice that we do have inclusion fees and relative costs of just under $35 million per that agreement.
That, coupled with the what we're calling the loss on conveyance of assets, that's the way we have to dub it in the finance world. It's really just that transfer of assets per that agreement will bring that fund to a balance of zero. So whatever that takes, that fund will transition to a zero balance at the end or at really the beginning of the year.
Wastewater is exactly the same that you'll see all revenues and expenditures are zero except relative fees associated with inclusion and the loss on disposal of assets, just removing those assets and turning them over to Parker Water and Sanitation. Finally, we've got the storm drainage fund. We're anticipating total revenues of $260,000 in the storm drainage fund. That will help to offset relative expenditures for salaries and wages, as well as the primary expenditures for administrative operations of that fund.
Beyond that, we are anticipating some capital costs to come from storm drainage relative to the Coyote one, Coyote Ridge Phase 1 improvements. Part of that is really pertinent to storm drainage and will require some adjustment there. So we're going to utilize some fund balance from storm drainage to offset those costs. In total, we anticipate a change in fund balance of $241,000 of expenditures over revenues for an ending fund balance in storm drainage of $850,000. If there are any questions, I would be more than happy to answer that. If not, I think we can close the hearing and hear if there are any other comments.
Chuck:
Amanda, this is Chuck. Thank you very much for the work you put behind this. It's, it's, I'd like to say it's not as complicated as years past, but it does not look simple. So I think you've done a great job.
Amanda:
Thank you, sir. I really appreciate it.
Chuck:
Your team. Who is your team? Do we know your whole team?
Amanda:
Yeah, so that's a great question. As you're all aware, this year we had a transition in managers. Which is why you see me more often, which I thoroughly enjoyed. So I'm, you know, silver lining there for me. We did hire a new manager. His name is Luis Garcia. He will be the primary manager on Castle Pines going forward.
So behind the scenes, I've been training Luis. He's been working side by side with me every month, watching kind of the ins and outs of everything that I do. We then have two staff accountants that help to provide work, you know, reconciling bank accounts and posting journal entries and that sort of thing, or putting the journal entries in.
And then we review and post. So we've got quite a team. In 2022 that team will be the same, but those roles will obviously be a little bit different. So one thing to note is that in 2022 really tried to look at how we could help limit costs to the district. When the district transitions to more of a parks and open space. It doesn't make sense to put as much funds into finance and accounting as you currently are.
Having said that, we really looked at our scope of services and would really like to look at providing financial statements on a quarterly basis. That makes a lot of sense for a smaller district. It would provide the board with the necessary information for decision making and really help to limit those costs. Beyond that, we still have a full scope audit in 2022 because 2021 was a standard year, I'll say.
So that cost will remain in 2022, which increases our hours. And then we've got the budget that will walk through in 2022 for 2023. But really what I would anticipate is then in 2023, we see an additional decrease in Pinnacle's costs because that audit won't be full board. It should be more simple. Which will help to alleviate some of the costs and help the district to equalize all say revenues over expenditures in the general fund so that we're not utilizing fund balance year over year. It makes sense that we'll be doing that in 2022. But I'm hopeful in 2023, we can start to see some reprieve in costs including those associated with the Pinnacle.
Chuck:
Amanda, thank you for all of that. We look forward to working with, is it Luis? Yes sir. In 2022. I have a couple of minor questions. Sure. That kind of jumped out at me when I reviewed the budget. I'm looking at the expenditures, the capital expenditures. That would be account 7115. And you show.
Amanda:
Can you tell me what the first two numbers are? They're like a 10 or a 60. Oh yeah, you've muted your mic.
Chuck:
It's 1020007115.
Amanda:
Thank you. That helps me understand where it is. Yep, I've got it.
Chuck:
Okay. It looked like it gave not much of an explanation for $150,000 for replacement of sidewalks along the roadways.
Amanda:
Yeah, so that I'll let Craig jump in here, but that has to do with those replacements he spoke to in his report for concrete. Craig, I don't know if you have anything to add to that.
Craig:
Yes, basically what we're looking at there is we've got a lot of aged concrete along the roadways, like on Castle Pines Parkway and on Monarch, that have some cracks and things like that. And it would be just replacing panels of concrete, not entire sidewalks.
So that money is, is earmarked for basically just panel replacement as opposed to entire sidewalks. And this is basically dealing with the damage that's occurred over 20, 25 years of the sidewalk's existence.
Chuck:
Thank you, Craig. And as I look at my notes, Amanda, you did a great job of explaining the budget and answered all my other questions. So thank you.
Amanda:
Thank you very much. I appreciate that.
David:
Amanda, thank you for that presentation. I probably could have done that backwards. And with my eyes closed. We've done it so many times over the course of the last 30 to 45 days.
I just wanted to share with you how much I appreciate all of the work that you and your team has done in regard to the preparation of the 22, 22, 2022 budget in light of the inclusion staff same to you and, and Your team the consultants that we have on board for the district. It's been a, a, a period where there's been a number of nuances that had to be considered and a good exercise.
I think, all in all, for all of us. I want to, unless Denise, Chris, or Robert you have any comments for the moment. I want to open it up for the residents that may be in attendance if there's any comments, questions, or concerns about the proposed 22, 2022 budget at this moment. Okay hearing none, I would like to ask if there's a member of my board here that would like to make a motion. No.
Robert:
I can make a motion to accept and approve the proposed 2022 budget. And thank Amanda for all our hard work.
David:
We've got a motion on the floor and, and we've got a motion on the floor, and while I've given thanks to you all, I want to make something a little bit more clear before we get a second. look for a vote the inclusion of the water and wastewater utilities with parker water and sanitation district was projected to result if everyone recalls from our synopsis during the inclusion process of a property tax reduction of 0.21 mills in 2022 it's been a byproduct of this entire team that I've made reference to, not individually, but as a group and, and certainly professionally.
It turns out that we were wrong. It's not .21. Our inclusion with Parker Water and Sanitation District enables us to do a further cut of property taxes, at least a temporary property tax reduction by another three mills over and above our previously projected tax cut of 0.21 for this period period of 2022 long story short this budget reflects what we are in a position to cut property taxes by a total of 3.21 mils in 2022 and possibly beyond. Amanda, Kim, Jim, do any of you have anything you would want to add?
Chuck:
I do not thank you.
Amanda:
I think just in return, huge kudos to this board. I know you came in with what probably at the time seemed like a nearly insurmountable goal. But I think with the fearlessness and drive of this board who, mind you, are volunteers who live in the district. I'm so impressed with the hard work that each of you have put forward to ensure that this was accomplished. And I will tell you in my 10 years here at Castle Pines, this feels like one of the most rewarding adoptions because you really, really took this goal and, and nailed it. So excellent job.
Legal Counsel Kim Seter, Esq.:
I just want to chime in with Amanda and agree. It's been a long haul, and we're not quite there yet, but it is pretty amazing. It's a great victory, and I think a temporary mill levy reduction of 3.21 is huge. Congratulations.
David:
Thank you both. Really appreciate that, and I know my colleagues do as well, but it wouldn't be fair if I didn't open it up for comment to my colleagues. Any further comments on the matter before we pursue what looks like to be an incredibly attractive early Christmas present.
Chris:
Well, I would like to comment. I do appreciate the hard work from the board and all the district staff. I mean, it was with all those in the guidance from Amanda and Kim that we were able to do this. And we did set out to do the inclusion when we actually all got on the board here. And that's our, our intent has always been to reduce government to find fiscal conservative ways of saving money. So yeah I, I really am proud of the fact that we're able to, be able to give that 3.2 mils reduction to the property tax reduction to the community. Well worked thank you.
Chuck:
Amanda and Kim thank you very much for your comments. I think it needs to be said that the board was good, but our president was fabulous. The work that David put in behind the scenes, the time, the effort, the knowledge, I give you more than 50% of the kudos, maybe 75%.
David:
Thanks, appreciate that. Thanks David.
Robert:
I'd like to join that and say maybe 1,000 kudos to one and, but no, appreciate it. And just if we'd go back in history three and a half years when we were faced against Castle Pines North Metro District wanting to spend $123 million with finance costs up to $250 million.
And that's why we all came together. And now to give, you know, three mils back to the community after all said and done and limiting the liability by joining a much bigger water conglomerate. Thank you all. It's been entertaining, to say the least. So, appreciate it.
Denise:
That's true three and a half years ago. We all met, we started and our common goal was to get our water bills reduced, which is absolutely going to happen by a significant amount. This inclusion was no small feat and I know you put a lot of work into it David and thank you. Made us all look good. We appreciate it.
Robert:
Three and a half years seemed like four minutes underwater.
David:
I forgot to tell you I don't swim, well thank you everybody and, and I'm going to accept those kudos for myself and, and for the rest of the team. We appreciate all of you and, and one another. And again it's a it albeit it's a temporary 3.21 mil level levy reduction for 2022. But I'll emphasize possibly beyond. I know that through the same process next year there's liable to be something that comes up, but we'll wait till then. This is pretty historic, and I really appreciate all the support. I'm going to close this conversation.
Chuck:
Before you close, Mr. President, I think we cannot forget our manager who, behind the scenes, pulled the same oars and worked so hard for all of us. Thank you, Jim.
Jim:
You're very welcome, and it's actually been quite enjoyable in an almost 35-year working in this industry. When I first sat down and talked with David a little over three years ago now. He told me this could happen. And I says, wow, that would really be interesting to do.
Instead of just taking phone calls all day long related to my meters running too fast. And I didn't use that much water, which is part of what I get every day. But this has been my understanding and I've talked to a lot of people over the last three and a half years. I don't know that this has ever happened in the state of Colorado.
Doesn't mean that, that smaller districts were not taken over by a larger district for reasons that it just had to happen. But this was a cause everybody wanted it to happen and we sat and worked on it together. So kudos to everybody. It's been enjoyable working on it. We haven't closed yet but we're darn close and thank you for all that. I appreciate it.
Chuck:
Thank you Jim.
David:
We have a motion on the floor to approve the proposed 2022 budget. I apologize for interrupting that process but can I have a second.
Chuck:
I'll second it.
David:
Got a motion, didn't you make a motion? Yeah. Oh, did you? Okay, good. We have a motion by Director Merritt and a second by Director Lowen. To approve the proposed budget for 2022. Please indicate your favor or otherwise when called upon.
Board Voting All Speak:
Director Lewis. Aye. Director Lowen. Aye. Director Denise Crew. Aye. Director Merritt. Aye. Director McEntire is a aye. We have a unanimous approval.
David:
Thank you very much. I am going to then move from item 8, or excuse me, item 7A and 7B into item C. I think that the board has had ample time and given the opportunity to ask, make comments, and get answers to certain questions throughout the last couple weeks. Amanda I don't know that to review the financials through the end of this month any more than what we have is necessary.
I'm open to comment about that if there's anybody. Nope. Okay, it's with that then Amanda I would like to make a motion to approve the financial report through the month of October, including check numbers 26403-26514. Dated October 9th, 2021 through November 5th, 2021. Would you be so kind as to share with all of us where those funds are coming from, both on approval and ratification and total basis, please, for the record?
Amanda:
Absolutely. So we are looking to approve general and debt service fund expenditures of $256,873.40 and to ratify $19,409.42 for a total in general and debt service of $276,282.82. In the enterprise funds, we are looking to approve $353,734.91 and to ratify $650,349.37 for a total of $1,004,084.28. Finally we're looking to ratify electronic payments of $75,723.82 for total expenditures to approve and ratify of $1,356,090.92.
David:
Thank you Amanda, for those numbers. Any comments from the board? Anyone like to make a motion to approve the payables for this period?
Denise:
I'd like to make a motion to approve the payables from October 9th, 2021 through November 5th, 2021.
David:
And would you also include the financial report through October 31st?
Denise:
And the financial report through October 31st?
David:
Is there a second?
Chris:
I second it.
David:
We've got a motion on the floor two seconds to approve the payables and claims for this period, as well as a financial report ending October 31st, 2021. Any further conversation from the board, staff? I'll call for the vote. When called upon please indicate your choice of approval or otherwise.
Board Voting All Speak:
Director Lowen. Aye. Director Merritt. Aye. Director Denise Crew. Aye. And Director Lewis. Aye. Director McEntire is an aye. Item seven A, B and C passes unanimously.
David:
Thank you very much Amanda. Item eight is our legal counsel report again. My colleagues and I have had ample enough time to consider what is confidential reporting by legal counsel. As well as some additional language by and for the ratification of a resolution for the 2021 amendment that we just passed. As well as the 2022 budget inclusive of the, of the temporary mill levy reduction of three mills for a total levy of three point or excuse me, for a total levy of 15.79 mills for 2022. Council is there any more of a motion in, in that regard, in the financial regard that I just mentioned? That is necessary for the record?
Describer:
There is a pop up window on the T.V. Zoom screen that is indicating what seems to be a sound issue, but it is not legible on camera.
Kim:
You've been muted, Mr. Chairman.
David:
Is, there's something on screen. Did you hear me council?
Describer:
The mouse appears and clicks the blue button from the pop up window on the Zoom screen making that pop up disappear.
David:
Try back. Try back. Hello Kim. You're back. What was that motion under the finance director portion of the agenda sufficient for the motion necessary given the resolution that you've presented tonight?
Kim:
Yes, it was.
David:
Okay, we'll have Amanda put in the specific numbers of both the amendment and the budget as well as the AVs that we know. I've just indicated that we've got a temporary mill levy reduction of three mills, plus the 0.21 mill levy reduction promised for, for the residents as a part of the inclusion. And I can fill in those. Anything else?
Kim:
The only thing to add to my report is the, the foundation matter has been resolved. Oh, wow. And within 24 hours, those funds should be wired to Amanda and we're done, finally. Golly.
Chuck:
Nice, good work. Good work.
David:
You didn't want to be outdone for Christmas, did you? How about that? For everyone's edification it was, golly, what was it? $10,000 or $15,000 that we had discovered had been in an account titled, I think it was Castle Pines North Foundation.
And, and unfortunately, all the people that had put that together some many years ago multiple decades ago have passed on or are incapacitated unfortunately. And, and so we asked council to step in and clear that matter up. One of the biggest issues with the inclusion is not just cleaning up the records of debt but cleaning up the records of claims and outstanding businesses that we have come across over the course of the last three and a half years.
And that was one of them. Yeah, it could have been a sitcom. It's been one of those subject items. So thank you again, Kim. Appreciate that. If there is nothing else, I'm going to open it up for my colleagues.
Chuck:
Quick comment. Kim, very minor item on the draft of the notice of the proposed 22 budget and amendment of the 2021 budget, if necessary, on your draft. You have a date of November 16, 2021. Are we going to be here tomorrow night, too?
Kim:
Nope, and I apologize.
Chuck:
Before you make it formal, make it, give it the right date.
Kim:
We're just ahead of our time.
Chuck:
As always, thank you.
David:
Did you want to come back tomorrow? No. All right. Thank you, Kim. With that there were no items that required any action this month other than that amendment in the proposed budget. So appreciate that. I know that one other piece of information for everyone's knowledge, and that is not only staff, but the board of directors and all the consultants associated with the inclusion are expediting, if you will, and pushing a little harder over the course of the near term to get that closing package teed up before the holidays.
We've got a goal of December 15th, correct Jim? December 15th to get that in place and sitting on the desk of council so that nothing over the holidays spoils the effort when it comes to, I think the first day of business, which is January 3rd of next year. So appreciate that extra work and that extra effort.
I know everyone's going to enjoy the holidays that much better. So thank you. I'm going to close with that eight and jump into our district manager's report item number nine. Jim, we've had ample time to read your report but it just wouldn't be the same if we didn't give you a shot at paraphrasing all the things that are going on. Would you please?
Jim:
Everything? Well. Oh just. I mean. Otherwise we're going to be here till breakfast. Yeah. So I'll keep it that way, thank you. I do want to point out the issue that actually we've been dealing with as an organization for well over 10 years, and that's the Forest Park odor issue. We talked about the ozone, talked about the pilot program, which worked out well.
We built a structure right next to lift station three, which is really where it all goes. We've had some issues with that related to the appropriate amount of injection and how that's done. The contractor is really belly up to the bar. This is new for them too. We've had conversations outside of our organization to, to test our thoughts on how this is really working. One of them is PCWRA.
Wes Martin down at PCWRA said, that's an excellent program. I can't change anything that you're doing. It looks really good. We've had some issues with, as I mentioned a minute ago, getting the appropriate injection going into, injection of ozone into, into the stuff. And the company is paying for this upgrade. They need a little bit stronger dosage coming into that.
So that's, that's being taken care of. But I want to give Nathan Travis a little bit of kudo. Those of you who know Nathan know he's been here with us for, I think he started in 2011 or something. And he's taken the blunt of many phone calls, understandably so. There were legitimate phone calls. But he got one about two weeks ago, which he couldn't wait to tell me.
He walked in and he said, Jim, I just got a positive comment from a resident down there who has had some concerns over the past, which is understandable. He said this person called in and says, great job, I'm looking forward to it getting finalized, which will take a few more weeks probably. But, but, but that was well, well taken.
Nathan knew that there's many issues on that. And so he really appreciated the fact that someone picked up the phone and instead of calling him and complaining they says thank you. So I want to give him kudos for that. He, he's done a great job on that. So we hope that'll be done here pretty soon. And, and then nobody will have to worry about that. So yes Chuck.
Chuck:
Jim, quick comment on when you determine that it's fixed, which you'll know hopefully sooner than later. Do you have any plans to notify those owners in that area that it just raised? Heck with you because of the smell? Is it appropriate to get back to them and let them know that it's fixed? Call them if there's another problem, or let the solution drive itself?
Jim:
I think we ought to reach out and let them know that, that we think is taken care of to kind of close the loop for lack of anything else. We there's been a handful of people who we have dealt with over the years, Nathan particularly has dealt with. And so we can reach out to those individuals. But I'd like to work with can on some kind of comment or something. Once it's all settled, it's not settled yet, that would do that. I like that idea Chuck. Thank you.
Chuck:
I think that's appropriate. And, thank you for taking that tact.
Jim:
You bet. A couple other things. At least one other thing. You know, we haven't, we've talked about all the different things we've been doing in preparation for the inclusion, January 3rd inclusion.
One of the major things that we've worked on is our water treatment plant. We've done a lot of work up there. We've put in almost a million dollars, or about to put in almost a million dollars worth of upgrades and improvements to it, which will be very good. Necessary and very good. And that's another I want to, and I'm continuing to thank the gentleman who really is belly up to the bar, and that's Nathan.
But along with some help was some Parker. We have Parker people working with us. We also have Ramey Environmental who is actually the ORC, the operator of responsible charge of the water treatment plant. So with knowledge of all of those people we are putting in, and will put in more information. Which will probably make that almost like a brand new plant. So I just want to let, let everybody know that, that we're spending some money to make sure this works out very well. So that's all I have. Unless there's other questions for me.
Robert:
Just another compliment. just always paying attention to detail when it comes to the finances, like David does. And, that the appropriate equipment wasn't in the original design, so you got them to cover it, and that's always appreciated by the constituents. Thank you.
Jim:
You're welcome. Thank you.
David:
Thanks for that Robert because it really goes deeper than that. It's just not some of the pieces and parts. But it is culminated in an entire pump. And we've taken it seriously in collaboration with Nathan and our neighbors. And it won't be new news to them but I.
I agree with you. We need to make sure that we put that information out to the neighbors that we have on record anyway. But we've gone as far as buying a second pump so that we have a redundant equipment shed as well as, as redundant people in, in charge and overseeing that so that we don't have any failures. So very proud of the progress there. Nothing else Jim? Okay, thanks.
Chuck:
I got one more question. Jim, on your November 15th memorandum on the Monarch right-of-way revegetation. You stated in there where the city is asking for a meeting to talk about how we can help or add or change or direct the application of snow removal on our streets so that we don't kill more vegetation. Has that meeting taken place?
Jim:
We've had a number of meetings on this issue, not specifically related to that. We're going to have that pretty soon. Because there is a concern, and we did a soils report. We actually did two of them, one a few years ago and one this year. That showed a high salt. Whatever the other long words are, they used for that stuff, in that whole area which in essence says it's not going to grow nothing but dirt.
The city did a good job of also doing their own report, and the report came out the same way. There's issues related to the soil up there and that's why it's going on. So we still need to have that discussion related to the appropriate amount of, of stuff that gets thrown on the roads. But then gets up on, on the side, which is ice and salt and what have you. So that meeting still has to take place.
Chuck:
It probably should be a prioritized meeting because we're going to have snow soon. Maybe Wednesday.
Jim:
It doesn't snow here anymore. You what? It doesn't snow here anymore. Okay. No, good point. Appreciate that.
Robert:
They'll still drop the magnesium chloride, though.
David:
All right, I'm gonna close the direct or, district managers report item number nine open it up for directors matters. Directors any matters? After all of that does it really matter? All right. I'm guessing that we don't have any specifics, at least at this juncture. I, I do want to, to comment on, on. Well I was going to just talk a little bit more about that right-of-way and the timing of that. You may recall that the right-of-way issue had a timeline on it, and it had specifically to do with our ability to reclaim that right-of-way,
The material in that right-of-way, so that we could re-vegetate it and beautify that section of ground. Which has been demonstrated to have diminished over the course of the last decade. That being said there's no argument as Jim mentioned of the people that are engaged in that relationship, specifically the board or I mean the Castle Pines North Metro District. Who is in a license agreement with the city to provide maintenance in that right-of-way. The city being the owner is in receipt of all of the claims through the end of this last summer.
And the, and the time frame for being able to eradicate or minimize or mitigate any of the damage caused by the snow removal. And I think it's fair to characterize it as such because there's nobody that has publicly provided any documentation. Or said with such conviction with that type of backup that it's anything other than damaged by snow removal practices.
But I guess my point is that we don't that, that time frame that we gave to the city has come and gone and so we've got another season that hopefully we don't make it any worse than it already is and will embark on over the course of the near term. Not leaving anything lie, working with the city and trying to come up with a program that works for us so that we're ready to go.
I know we had a number of constituents that we asked for their patience through this last season, believing that we were going to get some action on that. And to everyone's disappointment, we didn't get any action on it. And have reported back to each one of them specifically that the time that we could have taken action and been successful. Given the types of seeds and the amount of earth that we have to remove and bring back in, et cetera, has now passed. And that we're going to recalibrate that whole effort and see if we can't be ready come springtime next year.
Maybe do more than one of the five phases that we have identified so okay. All right I'm gonna close directors matters if there's nothing more. And I'm gonna open up the second closing pub, or the closing of the second, the closing public comment period for anyone in the audience or anyone on Zoom. Ken anybody on Zoom? Mr. Tweed. Mr. Tweed is on Zoom. Would you like, if you'll give him access? Mr. Tweed, can you hear us?
Mr. Tweed Castle Pines Resident:
I can hear you. I don't have anything to add to this right now.
David:
Okay. Very good. Thank you. Thank you for joining us this evening. Anyone in the audience like to be heard? I don't. If you'll identify yourself at the podium, come on up.
Describer:
Someone in the audience that has not signed up has volunteered to speak. He is going to go to the podium and when he is done he will sit down. Identify, turn on that little mic. Red button will come on. Introduce yourself and welcome.
Jim King Castle Pines Resident:
Thank you. My name is Jim King. I'm here with Linda. We just purchased a home on Engleton Drive the last couple months. And we must have missed a memo because I'm referencing an email we received from the district talking about the plan to expand Monarch Boulevard into a four-lane bypass route.
And it was, it was noted that there would be, you would be entertaining a resolution to oppose that action. So, I was hoping there would be some discussion about it and where that stands. I'm not even sure where, what section of my Monarch is being referenced were new to the area, but it just caught our attention. Is something that didn't sound like a good idea. And so that's, that's why we're here tonight. Well, plus it's just interesting to see the whole proceedings, of course.
David:
Sure. Thank you very much. And, and you did not miss a memo. Oh okay. But let me if I may just bring you up to, to speed. Except to document its vigorous opposition. There was no reason for the city to raise the prospect of widening Monarch. We did not send out a memo that, that indicated that the city was widening Monarch. We sent out a memo that we had the board and, and staff I think received at the exact same time from a resident here in, in Castle Pines. Where in that memo dated August 24th there were a number of, of, of statements made that, that one could construe.
But the purpose of the district as always was to make sure that the residents were equally as informed as, as we are in everything that we do. Well while we're not building roads. One might ask What does it matter to the district? As I just mentioned, we have a license agreement with the city. Where we take care of all of the right-of-ways of all, of the roads that they have ownership for.
So we're not only partners with the city in that regard, but we happen to be partnering with the first and only Road effort that's been made in, in years out here on Castle Pines Parkway. And in fact almost have contributed to half of the cost associated with it. Again strictly for the benefit of the residents.
Nothing to do with us, but, but rather kudos to my colleagues and staff and everyone that keeps their eyes and ears to the ground, open and ears to the ground to maximize the economies and efficiencies of this district along with the city. And couldn't be happier that we've made the progress that we have over the last three and a half years.
But back to the point. That alert, it was a simple alert that had the memo attached to it. As you, as you recall, very first sentence said the city of Castle Pines is requesting to execute an IGA with Douglas County for financial participation in the reconstruction of Monarch Boulevard and Castle Pines Parkway.
Well, this was dated August 24th, and we didn't know anything about it. Yet we're partnering out here on Castle Pines Parkway. And, and albeit a very small portion of all the roads that want to get done inside of the city. We have yet another section or two that I would insist on partnering with them because it benefits the residents.
So, so well you know it goes on to, under the background and reasoning section not just background but reasoning section. It says specifically and I quote that Douglas County has identified the need to upgrade Monarch Boulevard from two lanes to four lanes to accommodate additional trips. Now nothing about the city there. And we've never said that the city had any intent.
All we did was send out the memo so that it was available to everybody so that we were all singing from the same song sheet. There's a number of references made in here to dates of reports. And, and ironically none of the correspondence at the district has received, has had a date on it that mirrors the dates that were used in this memo.
Furthermore, the date that is in this memo specifically as it notes a sub note to the, the sentence I just read references the county 2020 master plan in, in for whatever reason and I'll be doggone if I can find a 2020 plan on Douglas County now that's probably all my fault. But I will tell you there's a 2040.
I think it's page 43 or 45 of that plan. And there was a gentleman that was on one of the social platforms that was a transportation guru who was just dynamite. And did anybody read that? That just outlined the whole process and how long it takes and all of the interaction. And Mr. Rance, maybe you remember who that was.
But I think his, his, his background was in transportation and maybe it was with more than Douglas County and, and a variety of others. But anyway, I was not surprised to find the 2040 plan. And, and, and I see here that, and I think it's on page 43. That the matrix they have in here with regard to Douglas County.
Anyway, line item 40 says Monarch Boulevard, which is, they've deemed as a minor arterial, is a, is under the proposed roadway improvements and upgrade for planning horizons 2031 through 2040, 2031 through 2040, to make Monarch from MacArthur Ranch to Castle Pines' Northern city limits widen from two lanes to four lanes. I mean, you know, it's just one of those things that every time you dig a little bit deeper and a little bit deeper, you learn a little bit more and a little bit more.
We just wanted to get caught up and get, make sure everybody else was on the same page and, and catching up and engaged. And, and so I don't know what you want to call it, blowing the whistle or, or getting caught or whatever one wants to characterize that alert as. It was simply a byproduct of, of our M.O. and everything that we've done. Whether it be the inclusion or any of the other big issues that we have taken to the, to the public. Even in, in, in regard to the road initiative some years ago. Where the city asked for $30 million and in roads.
We had written a resolution to assist in that regard. And there again, it wasn't because we had been working with them. We found out kind of late in, in the process, but wanted to be a party too, given the opportunity to help the residents maximize the economies and efficiencies of our existence and the others. So, I, I, I, I'm, I'm grateful for the opportunity to clarify that I'm, I know that there was some misunderstanding out there.
But from this board's perspective, and I'm sure my colleagues can speak for themselves should they wish. Our intent was simply to communicate with the residents and, and to allow them to be a part of the process.
Describer:
There are some people in the audience that are off mic and off camera speaking to David and it is inaudible. David says “Well, the. Sure.” and a woman walks up to the podium to speak. Once she is done she will sit down. Robert also speaks off line to David and it is also inaudible.
CeCe Spedding Castle Pines Resident:
What do I need to do?
David:
You just introduced yourself.
CeCe:
CeCe Spedding, been a resident since 1999. Is it happening or isn't it, the widening, widening of Monarch?
David:
You know I have not been able to find any evidence that there's been a commitment made by the city who is the owner of the roadway. Or by the county who they were soliciting funds for where this August 24th memo came from.
So I would say at this point no. Because we can't find any evidence that there is any plans and in fact we've had documentation or public documentation from the city manager. Albeit admitting that he could have written the memo better I think was his quote to the, to the press. But from all city council and, and the mayor at the time and the mayor-elect all of which is, have memorialized in writing that there are no plans for that and, and all be that. Days after we all got this memo, mission accomplished. Does that answer your question? Yes. Okay.
Describer:
Someone in the audience off camera and off mic was saying thank you to David, but the full sentence they said is inaudible.
David:
You're welcome. Jump up.
Describer:
John is the next public speaker, he is speaking at the podium. When he is done he will sit down.
John David Lobue Castle Pines Resident:
I don't know how much jumping I can do anymore, but I'll do my best. J.D. Lobue, I'm a new resident since May at the Bramble Ridge community. I had a feeling this was a hot topic, so I'm glad you guys talked about it. There's no doubt that there's expansion happening. So sometimes, as we probably know, and I don't want to take your fire here, people prod to see what the response would be.
So it's very common that I've been in other areas. Fossil Ridge Metro District that did very similar stuff. You never know, right? I mean growth is happening, so it's one of those things. My comments really, or my question is really small. Since we're doing some of the road work on Castle Pines, are we going to do some on Monarch as well? Thank you.
David:
The answer, if, if you're asking the district, is the district going to participate in any of the road work on Monarch, or is there going to be road work on Monarch?
John:
Resurfacing like you're doing on Castle Pines.
David:
If you take a look at the, the five-year road plan that's on the city website. I think you'll find that there are a number of phases and they're inclusive of Castle Pines Parkway from Lagae. Or no Village, Village Square Drive, is it.
All the way up to either right before or all, the golf course or all the way to the, to the turnabout. Also Monarch and it's either reconstruction and or rehabilitation but it's a multi-year, multi-phase plan that is very descriptive. And it's on the city website.
John:
Gotcha, is there any big work like being, is being done now that's going to reduce the traffic situation that's planned for 2022?
David:
You know each one calls for a little bit different science. Okay. And, and while Castle Pines Parkway should we, the district, continue to participate and partner with the city to relocate the water line we have outside of the roadway into the roadway. It will be, I would have to say, it's going to be equally as big an endeavor.
The rest of it, I don't know sufficiently enough of the details. And I'm talking about the traffic. Yeah. Management details to comment on it. But again I would encourage you to go to the website there at the city and take a look at that five-year plan. Just came out not too long ago. And, and so it should be real current.
John:
Gotcha thank you. Yeah.
David:
Anyone else? Hearing none, I am going to close the closing public comment period. Was there anybody else online Mr. Smith? None I'm going to close that and hasten to item 12. Is there anyone here want to take on item 12?
Chuck:
Mr. President, I'd like to make a motion that we adjourn the meeting of tonight.
David:
You know, you know, before we jump on.
Jim:
I was just going to add, and we haven't talked about this necessarily. Sometimes the month of December for some people is pretty busy. You've approved your budget, which was huge and very important. So really my question to you is do you need or want a December board meeting? If you do, that's absolutely great.
No problem. That'll be on December 13th. So I want you to either have that discussion or say yea or nay if you've already individually thought about it. So I'll bring that up before you adjourn this meeting.
David:
Good catch. You know, and I jumped on item 12 a little quick. I, just a parting comment to my colleagues and staff. Moving forward, I propose that we work in good faith through the process of consolidation with the city of Castle Pines.
And to that end, colleagues, I ask that we direct our staff, our consultant team to prepare a resolution for our consideration during the January 2022 board meeting. Purpose of that resolution, that draft resolution, will be to establish the terms and the conditions of CPNMD's proposed consolidation with the City of Castle Pines. While honoring our fiduciary responsibilities, our stewardship, and maintenance responsibilities of our mission statement and our core objectives. All the while satisfying all CPNMD obligations.
So to answer your question, Mr. Worley, if we're going to prepare, work on, and prepare this draft resolution to be considered in 2022 at this juncture I'll leave it to my colleagues as to whether or not they want a formal meeting. I know that working hand in hand individually that we can accomplish the same thing during that period of time. But I'm going to defer to my, my colleagues I'm, I'm, I'm good either way. Director Lewis.
Chris:
I, I for one…
Describer:
Chris is breaking up, they are having an audio issue. He only says a couple of words before the audio breaks up and is inaudible.
David:
Said very well.
Chris:
Would like one another…
David:
Try to put that in a more condensed version when I call on you again. Director Lowen.
Chuck:
I'm going to ask to rescind my original motion to adjourn the meeting and, and. My bad. Your bad. That one's caught me back a little bit. I think that that is a critical thought and I would, I feel strongly we should meet in December. Director Merritt.
Robert:
I just think even if we have to, some of us are out of the country or something, we could even Zoom in. But I think the details in the last three and a half years. I just checked my schedule, I'm off. And would absolutely, maybe even a study session to wrap all the details up and dot the I's, cross the T's with this. So I'm in what everybody else wants to do. I'm one of five. Director Crew.
Denise:
I'm with you David. I could go either way. I appreciate when we have one-on-ones I feel like I get a lot of information out of that. But truly I'm, either way is fine.
David:
Director Lewis, are you still with us?
Chris:
Yeah can you guys hear me?
David:
We can now. Can you. Oh. keep it just a little shorter?
Chris:
I’m sorry yeah I, I am definitely, I'm sorry.
I'm definitely in favor of having a meeting in December. I think it's a very important topic. I think it's the direction that we want to have that discussion about and I think it's the direction we should go. But I think it's, it's, it's imperative that it's done the appropriate way. So yeah I'd like to have additional discussion. Thank you.
David:
That meeting's scheduled for Monday, December 13th at 6 p.m. copy. Yes. All right, very good. With that understanding is a, director.
Robert:
The volunteer pays the same? You’re excused. I’m sorry.
David:
Is there anyone that has a motion for item 13 before I interrupt him again? 12. 12. 12. It's 13 now.
Chuck:
I’m not going to make a motion, I’ve already been.
Denise:
I'll make a motion to adjourn our meeting.
David:
Is there a second?
Chris:
Second that.
Board Voting All Speak:
All those in favor say in unison aye. Aye. Aye. Those opposed? Hearing none motion carries, meeting adjourned. Thank you all for coming.