November 16, 2020 Video Board Meeting
Transcript
AGENDA
Board of Directors Meeting
Monday, November 16, 2020, 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 November 16, 2020 board meeting agenda.
4. Consider approving minutes of October 19, 2020 board study session and meeting.
5. Opening public comment period (three-minute maximum per person).
6. Project updates and insights from the City of Castle Pines’ designated liaison to the CPNMD board of directors, Councilwoman Deborah Mulvey.
7. Open Space Manager’s report.
8. Finance Director’s report.
A. Consider approving financial report, payables, and claims for payment, including check nos. 25582–25648 (October 10, 2020 through November 6,2020)
General Fund and Debt Service Ratify $69,034.78
Enterprise Funds Ratify $513,451.06.
Electronic Payments Ratify $80,168.50.
Total Expenditures $662,654.34.
B. Presentation, public hearing, and consideration of proposed 2020 budget amendment and associated resolution.
C. Presentation, public hearing, and consideration of proposed 2021 budget and associated resolution.
9. Legal Counsel’s report.
A. Status of working draft Inclusion Agreement encompassing the possible unification of CPNMD’s water wastewater utilities with those of the Parker Water & Sanitation District.
10. District Manager’s report.
11. Directors’ matters.
A. Moving the schedule of our next regular monthly board meeting up one week from Monday, December 21st, to Monday, December 14, 2020.
B. Consider adopting schedule for regular 2021 board meetings.
12. Closing public comment period (three-minute maximum per person).
13. Adjourn.
Describer:
The video starts on graphic with a white background and forest green letters which says “Castle Pines North Metropolitan District November 16, 2025”. The meeting opens on a shot of all board members present.
Board President David McEntire:
Good evening one and all. Thank you for your attendance today, both online and here in the district offices. We are anxious to get started this evening, so if I could get my colleagues and the participants here to join us in the Pledge of Allegiance, that'd be great.
Describer:
The board members and the audience rise from their seats and recite the Pledge of Allegiance, as the camera pans from left to right from the board to management staff to the audience and back to the board. When they are done, they sit down again.
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:
I was playing with my mic communications director. All right again, welcome to everyone that is viewing us online via zoom and live streaming otherwise, those in attendance this evening. Would like to call to order the regular meeting of the board of directors for Castle Pines North Metro District this Monday, November 16th the year is 2020. With that, I'm going to call roll in doing so when acknowledging your presence if you'll announce or excuse me, disclose any potential conflicts, I would appreciate it.
Board Member Director Robert Merritt:
Director Merritt. Present. No conflicts.
Board Member Director Denise Crew:
Director Crew. Present. No conflicts.
Board Member Director Chuck Lowen:
Director Lowen. Present. No conflicts.
Board Member Director Chris Lewis:
And Director Lewis. Present. No conflicts.
David:
Director McEntire is speaking, and I don't have any conflicts. I want to thank Robert Merritt and and both Christopher Lewis, who are joining us from afar. Appreciate you taking the time and the effort to be here. Didn't doubt for a second that it wouldn't be, thanks to our communications director and, and, his staff we’re able to see you and hear you loud and clear.
Additionally, like to thank you for both of your services to this great nation and and and this city and the folks in your lives. Again, just a sincere thank you for your service and your presence. Welcome.
I want to continue this evening, and ask that my colleagues consider approving the November 16th board meeting agenda as well as the meeting and, excuse me, the meeting minutes of October 19th, 2020 study session, as well as the meeting that followed. Is there a motion for that?
Denise:
I'll make a motion to approve the November 16, 2020 board meeting agenda and approving the minutes of October 19, 2020, our board study session and meeting.
Chris:
I second it.
Board Voting All Speak:
Thank you Denise and, for the second, Chris. We have a motion on the floor and a second to approve not only tonight's agenda, but also the meeting minutes that my colleagues and I have had for or at least enough time to approve and massage accordingly. All those in favor, please indicate by, saying yay. All those opposed, nay. So all those in favor say yay. Yay. Yay. Yay. Any opposed? Hearing none motion carries unanimously.
David:
Item number five is our open public comment period. We have, this evening, three folks that I believe are interested in speaking to this board.
District Manager Jim Worley:
Mr. Chairman, if you don't, I apologize for interrupting you, but they had contacted our communications director earlier this afternoon saying they would be a part of this and they haven't logged in on the zoom, so. Is that right, Ken? Yeah. Yeah they haven't logged in yet to the zoom, even though they contacted him earlier today saying they would be a part of this, if I'm not mistaken. Yeah.
David:
That works all right. We've got a second comment period towards the end. We'll just go ahead and, and, set them aside for now and, find out if they're going to join us, on the next go around. Thank you for that. We'll close item number five and move on to item six. This is the project updates and insights from the city of Castle Pines through our designated liaison, Councilwoman Deborah Mulvey. Welcome, Deborah.
Describer:
Deborah Mulvey, City Council Member, rises and comes to podium facing the board to the right of audience seating and to the left side of the board, near staff seating which is adjacent 90 degrees to the board and to the audience.
Deborah Mulvey, City Council Member:
Welcome, Mr. President, thank you. I don't have a lot to discuss today. The main interest of the community is what happened with Ballot Measure 2A. With the residents made it clear that they did not wish the city to undergo a financing measure. They didn't wish this city to finance the roads with a long term bond measure and that was the question.
And so the City Council will find another way to do with that which it has to do. It doesn't change the priorities, the priority is still roads. The second issue is that we're still considering our budget, and large parts of those budgets are whether or not to proceed with the city hall project. We may or may not we're still discussing it.
There's lots of considerations, and there's also a few other projects that are on the books and so we would invite residents to come to our next meeting on December 8th, when there will be a study session and then a vote, perhaps.
David:
Thank you for that. The, the, vote that may occur on the eighth and is a vote to finalize the budget?
Deborah:
Yes. There may also be a vote on whether to proceed with City Hall as this ancillary vote.
David:
Very good. Anyone have any questions for the councilwoman this evening? Hearing none. Thank you very much for the update. I appreciate it. Thank you. Appreciate you being here.
Deborah:
Thank you.
David:
I'd like to close item six and open up item seven, which is the Open Space Management report. I see that Craig is is not here. Jim, you're going to champion his report. You have the floor.
Jim:
Thank you so much. I'll focus on item number four and the only reason I focus on four is the holiday lights have been put up. Physically and normally what we have done is right after Thanksgiving that weekend, the contractor who puts these up comes up, plugs a man, gets them all ready to go. They can't come back.
So they've installed them all but because of their schedules of everything else going on this time of year, the lights are already on. So if you see the lights on, our Christmas lights are on that's the reason why otherwise they to know where they've been after Thanksgiving. So in case anybody says wait a minute, a little early. So anyway, that's all I have on that. I just wanted to point that out to you. And I'll try to address any other questions you may have on his report.
David:
I don't have any.
Chris:
So Jim.
Jim:
Yes, sir.
Chris:
Yeah, I do want to comment on the vandalism. I, I it's good to read that that's finally down and that, whether it's, you know, the students going back to school or whatever happened that essentially now we, you know, are saving all that money that we spent to clean up all the graffiti and so forth.
So that's good to see and I wanted to comment on that and make sure that, you know, we let the community know that that was great and we appreciate them not destroying our our parks and having to spend money to redo and clean it up. So that's good to read.
Jim:
You bet. That is good and we think it because school went back in session, which helps a lot so. But we’re keeping an eye on it. Thank you though appreciate it.
David:
I know I'm not the bearer of bad news in this regard, but as it relates to school and the attendance that again is going to change. Maybe the weather will be on our side as it relates to the use of, of some of those amenities and what we saw was an increase in vandalism. But, it's my understanding that as of this Friday, the entire community goes back to online learning and, and, so we'll keep a watchful eye out and hope that we don't have a re-occurrence of the vandalism.
You know, it's with that guys that that, I, I just want to shout out to, the folks that joined us, on the cleanup Castle Pines day that that took place on October 13th, or it was, excuse me, October 21st. And and, hear some great stories, some great lessons, some nuances and observations that that maybe aren't familiar to a lot of folks.
And we hope to rectify that by having some additional cleanup days, as the weather provides. And I know that staff is working on a schedule, and is considering weather, as a is, the only nuance that might change that schedule a bit. But, the success that we garnered from the likes of Abolino Aragon, who joined us, we had David Selechy, Lucy Donaldson, Lisa Frank, Donna Giddens, we had Melissa Castanech and her two year old daughter, hazily, who were out there crack of dawn and and, it made the entire morning for me. I was totally entertained by this little girl and her efforts. I really want to thank her and her mom for for coming out and showing showing us how it's done. Carlin or Karen? Kirk, Kirkood, Kirkoood. I hope I don't mispronounce that.
Sorry if I do or any of them. Chuck, Director Lowen was there, some staff and Natalia was was, helping us out, moving truckloads of some of the trash and debris that we picked up. Of course, the folks that we blame for this success, the Martsens, Marlene and Blair, Director Merritt, he was present and, working hard, Linda Medima, Councilwoman Mulvey, thank you for your support and your participation that morning. Steve Packard, friend of the district's Ryan Parker, was out there, working extra hard, helping out with with a personal rake and and, we want to thank him as well.
Cynthia Rowan, Jean Russo, Frank Seidel, Bob Scheer, and just a couple more communications director, of course was there. Wouldn’t miss it. Mr. Smith, Jim and Beb Stevenson and our district manager, Jim Worley, all of them, are to be commended and given, your, gratitude for what was it just a knock down success and I can't wait for the next one. I know that it's not going to just be centered on and in the park areas, but rather the roadways and other areas that the community finds a need. We've got a real appetite out there for clean up and, again, looking forward to it. That calendar will be out.
Jim:
Mr. Chairman, what we're looking for us to do this on a quarterly basis and based on the October 21, the next one would be in January. So if we have a nice 65 degree weather day and no snow on the ground anyway, weather depending on that but we want to do this every quarter. Which it was great and I want to thank all of those people showing up.
I was really happy that they showed up and and were enthusiastic and just spread out all over the place and found all kinds of stuff that we wouldn't have found. But thank you to all those people and we'll shoot out a anticipated schedule probably in the next few weeks to to pick some dates, depending on the weather. But thank you to those people.
David:
And and the time as well, probably not 7:00, in the winter, but, I'm sure that you can handle it. Thank you so much.
Jim:
Noon maybe noon or. Yeah. After nap or something.
David:
Sure. Thank you again. Great job.
Chuck:
Jim a quick question. Not to belabor the vandalism issue, but I think I remember, in past meetings you indicated or maybe Craig had indicated that we had requested Douglas County Sheriff to take more time as they drove through the neighborhood. And now that school is back in session, that activity seems to diminished, hopefully, Douglas County is not wasting their time up there on an empty day.
But as we go back to home schooling and the schools closed down, is it appropriate to talk to Douglas County again and just put them on notice that it's still a concern of ours? We still want to maintain some surveillance.
Jim:
Absolutely. And an interesting thing, I think it was first part of last week two officers came into my office, and of course, I put my hands behind me, ready for the cuffs in case they were ready to take me away.
Chuck:
We agree.
Jim:
But they didn't so that was a good news for me maybe not for others. But what they told me, they said they're they're paying attention to it even now. And what they said is we recommend that the signs that we have in these parks, that shows the time, remember we're open till like 6:00 in the wintertime and 8:00 in the summertime.
They recommended that we redo those signs and increase the print of the time, the month or what have you six to whatever. Because and we changed last month in our rules are regs because it just said dusk to dawn and we put specific times in there. And so I thought that was a great suggestion, the officer told me, he says, look, he says they don't look at these signs when they walk in, but if you make it bigger enough to where they can't say, well, I never saw it as opposed, it was part of a sign then then they'll be able to handle a little bit better.
I said, that's a great idea we'll have the signs redone so that time of day open and close is very obvious. So they say we can walk right in there and say if it's after midnight or 10:00 at night, you guys need to leave. And I said, okay, we'll have a sign. So other than that, I think they're still paying attention Chuck. That they're keeping an eye on that's what they told me.
Chuck:
Thanks, Jim.
David:
I think it's going to be, valuable intel as the, we we get into this new period with this school being out, the days being shorter, etcetera. And, as we get closer to engaging a landscape architect to help us with some additional planning in our parks area, we'll make sure that, some of those concerns are, are up in, in integrated into their scope of concerns and, and work, product for the deliverables.
All right. Any other comments regarding the Open Space Manager's report? Hearing none. We'll close item seven and move on to item eight, which is our Finance Director's report. Eric, are you prepared to take us through not only your report this evening, but items B and C, which is a presentation? And at least t up the public hearing should there be anyone that wants to speak to and, about the proposed 2020 budget amendment, as well as the 2021 budget and the associated resolutions? You ready?
Financial Director Eric Harris:
Yes, sir. Thank you, Mr. President. Good evening. As as you mentioned, we're going to hit a number of heavy topics tonight. Accomplish accomplishing discussing the financial report, which encompasses October 31st, financials, consideration and public hearing thereof of the 2020 budget amendment and thirdly, the 20 the, consideration of the proposed 2021 budget, for this next year, obviously.
So I want to briefly hit a number of those as they're so intertwined. I'll discuss all three of those, and then we'll go through, do a ratification of payables and then discuss, have a hearing for both topics that I mentioned before. So just to keep the flow of presentation for you this evening. Briefly, wanted to discuss the financial report with, October financial statements, property taxes are just about collected.
We are currently running surpluses, in pretty much every fund. That's a good report, primarily due to higher revenues, higher operating revenues in the water fund. Mainly because it has been a hot year, up 22%, compared to prior years at this point in each year, historically, that we have. Additionally, we've had some more one time revenues, as I've discussed in prior meetings so I won't, kind of go on on those fronts.
But quicker, higher absorption and then anticipated in the Legae development. As well as higher one time revenues in our general fund, primarily to selling an easement back in the first quarter of this year. So great news all around and, so wanted to report that. As we kind of discussed the reasons for our budget amendments this evening, they're in three separate funds, we have the general fund, the water fund and the wastewater fund. In the general fund, the reason why is we have a non-cash expense that I discussed earlier. As I mentioned, there's higher you know, it's been very hot year therefore, we've been watering our open spaces. So, that that overage came from primarily to a budget variance associated charged by our enterprise fund to the district's general fund.
So that's the, the reason for that within the general fund overall, though, still very good. Our, our our fund balance is up, as you look, compared to our budget due to those one time revenues. Moving on to, was there a question? Okay. Moving on to our CTF fund those are funds that, as I reported before, just remain in trust.
We didn't take advantage of those funds, so we just retained those into a bank investment account right now, we can draw on those, and we have appropriated those for next year. Additionally, in the District Special Revenue Fund, which has the district's 2015 certificates of participation, that is coming in at budget and because that is scheduled. And then we scheduled our, our 12/1 debt service payment associated with that as well.
So that budget, there's no need to amend that budget at this time. Moving on to the water fund, like I said, I primarily, water revenues are up. However, investment earnings are down across the board. So not that those are 1 to 1 offset, but primarily, you know, investment earnings are down due to what's happening in the short term markets right now, with treasury bills and things of that nature.
So you're seeing much decreased investment returns on that front. But the, the reason why we are considering a budget amendment, I'm bring forth this to you this evening is primarily due to two things associated with the CWCB our, our operational interest within CWCB and the Chatfield project. We elected due to change in those markets I mentioned the cost of funds to go ahead and as opposed to, financing a, approximately $723,000 payment, we elected to pay that with cash and so that was one piece of it. The other piece of this is associated with timings with that project as well. Within our budget, we we assumed, right, wrong or indifferent that that Chatfield’s project was going to tie up by the end of the year, which, you know, wasn't going to happen.
We thought we could absorb the timing of those cash flows and those loan draws within our budget. But, but the balance of that was associated with the mitigation project that's ongoing with Chatfield at this time. So that's the primary primarily reason for the the amendment associated with the water fund.
Chuck:
Eric, quick question on that Chatfield relocation project. You just mentioned that we paid cash instead of increased any loan. I'm all in favor of paying cash and not increasing any loans. Being a fiscal conservative, I think that's the right thing to do. Can you tell me what our projected net proceeds, savings was on that activity?
Eric:
Certainly. So, a little bit of background on that. The the district had three loans, the one loan that we took advantage of and did not, did not use was a $723,000 loan. When you looked at, just this is very general, investment earnings, future investment earnings versus the cost it would have taken, just as opposed to a debt service associated with that you're looking at $206,000. So, net present value savings associated with that. So.
Chuck:
You said $206,000.
Eric:
Correct. You're welcome. So that's, so we do currently have the two other loans outstanding. One is considered final right now and we are paying debt service associated with that and that is within our 2021 proposed budget. There are no call provisions associated with that loan. We elected to, the. The 2021 budget does not, contemplate prepaying that loan.
However, due to multiple different things right now we will be looking at that in the 2021 calendar year as we look at a potential inclusion with Parker. But one thing that did come up was, since the storage field is a one time charge, it wasn't a draw down it it was advantageous to us to go ahead and do that.
The third loan is associated with approximate $1.5 million this is ongoing mitigation cost associated with, landscaping with Chatfield. That loan is expected to stay outstanding into the future. And when I say it's not finalized for several years, only because they're continuing to draw on that loan monthly. But what we will be looking at, much like the store, much like that larger loan I mentioned before, is in our 2021 budget, actually, finalizing that loan and then cash funding, the rest of those operational expenses. This is, a little bit of a unique, situation because, Castle Pines North is obligated through the Chatfield Reallocation Mitigation Company, for their propornate, proportion share of that.
So depending on the phasing and how the project works, it's it's a little bit difficult with that, but we will be looking at that in 2021, potentially taking out all those other two loans.
Moving forward to, the wastewater fund, revenues are, kind of more fixed in nature. We're able to forecast that with our rate, rate modeling, and with the district's rate analyst. Primarily due to because we know how many customer accounts are projected to be for a year and, the a, property owners, wastewater bill, is pretty well known as we looked at their non era, their usage during the non irrigation months.
So we're able to project that in and look at that and get those revenues pretty dialed in. The one thing that it's a little bit like on the water fund obviously is the usage piece of it is a little bit difficult to forecast around the calendar year. As mentioned the investment earnings are down as discussed.
But we are looking at some higher costs related to the treatment and cleaning of certain lift stations. We had some overages so if you go to those particular line items, in the wastewater financials, you will see those budget variances. So we built those into our projections to allow for those allowances to get us through the end of the year.
And that is why there is a proposed budget amendment associated with the wastewater fund in front of you tonight. So. And as discussed, the debt service payments have been scheduled for, through the end of the year. So that takes us through the financial report for October as well as the 2020 proposed budget, proposed amended budget.
And from just a in summation what I'm asking this evening is, for a general fund or revision, upwards of approximately $59,000 in appropriations in the general fund and the water fund revision upwards of $1.52 million associated with the water fund and the wastewater fund, revision upwards of $328,000. Are there any questions on either, the financial report or the, the amended budgets before you this evening?
Chuck:
What was the, the second one, the, the 1.5?
Eric:
The Water Enterprise Fund. $1.582 million. You're welcome.
David:
Eric. I. It would be of an interest, I think of, from for everyone, to know what the backstop is, for overruns. I mean, that that's what we're talking about here. And and while, minor in, in nature, or in dollars, most of them are the, the wastewater issues, were certainly a surprise.
Not that the district could not, shoulder them, but but it's a surprise that, this board has, opted to not participate in, I recall, the first couple events, upon being seated, at that time, the surprises that came our direction, and they were all related to some, substantial and and, long term debt.
We don't want to return to those days and, and, by no means do I think we are. I just want to give a staff, and, Jim and his group, some kudos for making sure that it doesn't happen again by virtue of of the asset management system that, we spent a considerable amount of time, effort and, and and some money to put together and, make available to not only staff, but this, this board and, and all the rest of our consultants.
So, there is a more scientific based, judicious, repair and maintenance schedule that we can project and, and, and, ensure are a part of, our annual rate and fee considerations and not be surprises and not come out of left field as as this one has. I'm could not be happier that that project with Ames and the district was completed inside this year in fact, it's probably no more than a month old.
It is already proving beneficial as it relates to the mutual study that we have, ongoing with Parker as well as the budgeting process. I'm certain that it was discussed in detail and maybe not as much clarity as it relates to the Ames software and the forecasting of those capital improvements last meeting as it was the meeting before.
But it is it is in imperative, imperative that we not only conduct ourselves, reasonably, but responsibly, moving forward and with, without, reacting, to, to the things that we know are going to break at some point, be proactive in fixing them before they break.
And that's what this software in this whole component, of our management asset management system is bringing to this group. And I could not be happier with that. And don't guess that this is going to be repetitious next year, in a year that we haven't taken the appropriate actions and steps to cover it, in our rates and fees. So, good job on that, Jim. And and, if you concur, I don't have any other questions about the proposed 2020 budget amendments. Any colleagues?
Chris:
Issues.
David:
All right hearing none. We can we can, why don't we why don't we wait and and, act on those, together? Go ahead with the proposed 2021 budget, if you would, please.
Eric:
Wonderful. Thank you, Mr. President. So, before you this evening is another item as mentioned is where we're gonna have a public hearing for the 2021 proposed budget as well as setting those appropriations. The one restriction by resolution what we're doing this evening is adopting appropriations, which mean expenditure allowances. Which allows the this district to contract for those services for the next calendar year, as well as setting the fund balances as well.
So when I say setting fund balances, is there any restrictions associated with those fund balances as well? Those are the two things that, are within this 2021 budget that you have before you this evening. As you may recall, we had a work session last month. Changes have been incorporated within that budget, but we had a pretty solid budget walking into there, which is which is great news.
Overall, this budget contemplates a number of different things. Slightly decrease in headcount associated with the district for the headcount that is in place today. Only because we had an employee that elected to resign, mid-year. And then also in addition to that, we we executed a, an IGA, with Parker to backfill those services that the district needs.
Additionally, as a result of a couple of other things that are changed from the budget, budget year over year, one is, taking into account, call provisions associated with the COPs for this next year, which is, which is great. We have the opportunity to, post notice, as well as, prepay some of that debt to term.
One puts allowances in place too, so that we can utilize those CTF funds and we have done that this year. But that's important note we have those extra program expenses that are allowed for, capital projects associated with Parks and Rec, and open space. Additionally, it takes into account all the debt service and compliance activities that are required for this organization.
And finally, it, it put in the capital plan that we had, for next year as well. But the one thing it does not do is this, this, this budget only, takes into account, you know, affairs as we know it today. Not consideration of any sort of Parker inclusion. If and only if, we do go to an election and if the voters approve it, and we start down that path, any of those transactions that would occur, of course, would affect many different funds.
And so what I would do at that point is I would bring before we get into those commitments, I will bring forth I would incorporate those commitments into a budget amendment, much like we did tonight for this calendar year, for 2021. And, we would adopt those, appropriations, and then we would also, continue forth on that as well.
So, but within, this, this budget is, fully report we have a very strong balance sheet. We have we can fulfill all of our fiduciary responsibilities to the property owners in the utility and as a utility and utilities, plural. And so, but with that, I think we're all pretty familiar with it, but I will certainly entertain any questions that are, this evening.
David:
Thank you Eric. Just as a reminder, to those joining us online, that the draft budgets and the associated amendments and the resolutions, were not only attached, as my colleagues know it, to our board meeting agenda, but posted, last week on the website, at CPNMD.org. Before anybody jumps in, let me, again make reference to, the importance of the asset information management system and, and, how that plays into, responsible budgeting and cash flowing.
And I won't belabor the point that it is already paid off dividends and, and continues to allow us to, backstop, some of the issues that had surprised previous district staffs and directors, and, and, but moving forward in 2021, we've done all the judicious things, with staff and with our consultants.
You, Eric, in your group pinnacle outstanding job in preparing the board for this exercise. The information abundant, but concise and and understandable. Appreciate the effort they put forth. In that regard, we have asked as a board of staff, that, parks and trails and and, open space, manager confirmed that, the project for 2021 and the operation expenses associated with his responsibilities and authority are included.
And and we received that consensus. We asked Corey, who is our water manager the same line of, of, questioning to ensure that we have, and, not left anybody out with regard to the expectations of 2021. And we received his consensus, that, yes, indeed, the budget has the money for those projects and and his needs.
Same thing with Nathan, in the sanitation district in and, all of them, from a stormwater point of view. And last but not least, but most importantly, really, the overall captain of the ship, Jim Worley, as relates to operations and overseeing all of these folks. Again, let me just ask for the record, does that budget reflect the needs of this district moving forward, given what we know for 2021?
Jim:
Yes, sir. It does. Thank you.
David:
Very good. That being said, I, I had one last comment. I want to give kudos to my colleagues who have, I missed a portion of last month's meeting where you contemplated the draft budget. And in that draft budget was a reflection of all the things that I've just said, the hard work of staff and the consultants.
And it got us to a point where we felt comfortable moving forward. So we made that a part of tonight's agenda. But since then, since then, this group tirelessly never sitting on the laurels of their accomplishment, looked even deeper into, some of the, the, prospects of savings for 2021 and have come up with some substantial improvements.
I know that they've been conveyed to, you, Eric and your group that the final budget includes those. But it blows my mind to be associated with and have the opportunity to work with, with my colleagues who are diligently pursuing savings and, and, the economies and efficiencies associated with the responsibilities that they have. Thank you so much and great job.
Denise:
May I add one comment to that or question? I see somewhere I don't remember exactly where, but there's a job share with the job in Parker. Can you elaborate again what that $45,000 ish savings I believe for us?
Jim:
I'll take that one Denise. Thank you. As Eric mentioned a few minutes ago, and I think it was last May that one of our operators, Marty Grasso, chose to not only leave us, but leave the state he moved to South Carolina. And at that point, we were and still are pretty much so, but heavily involved in this study.
And that was when the boots on the ground were starting to roll and what have you. And so we had a position available to hire, of which we did not look for at that point. And what we did, instead of hiring someone to replace Marty because of what's really up in the air, to be honest with you, if, if, if this conclusion agreement goes forward and there's a vote, those employees could become Parker employees.
And so we made a conscious decision at that time not to interview and hire someone new. What I did is I picked up the phone and called Steve Hellman at Parker. I said, Steve, here's our situation here's why I don't want to really try to hire somebody right now because there's not really job security for him. Can we work together on an employee or someone to help us out?
He says, by all means. And so what he has done since we started this probably I think it was in June, if I'm not mistaken, we have a gentleman by the name of Wayne Smith, who is an operator over in in Parker. He comes to our office every day and he works with Corey and with Nathan out in the field doing the same things that that they do.
He covers the on call whenever that is, because we're a 24/7 operation. So we save some money and the remainder of Marty salary in not hiring a new employee. Now there's an offset cost to that of which we're paying them for, for Wayne’s time to come over here. So it's worked out very well. I think in many, many cases.
One, for lack of a better term, it gives Parker a nose under the 10th to see exactly how we operate, not just walking around and being told. He's actually operating and working with us so that's a positive, I think. And Wayne has turned out to be a very good employee, very knowledgeable young man. And, and outside of a couple of medical issues he's been dealing with, he's been right there and helped out.
So does that help answer your question on that? It really has worked out very well. We would have hired someone had we not been in this study and move forward but.
Denise:
No thank you, I appreciate it.
Jim:
You bet.
Eric:
So just to piggyback off of that, what our 2021 proposed budget actually removes two full time hires. One and we kept the hole there, for the last couple of years within our budget and could not hire someone. I believe it was to help assist Corey at the water treatment plant. And then additionally, since Marty left, since that that positions are being filled, we removed that one.
So two FTEs that were, removed from our budget but then we backfilled that with, we have an IGA struck with Parker, and we have a monthly cash flow associated with that employee and that goes out, monthly so yes.
Jim:
And if I could add one more kudos to that and that's to Nathan and Corey. The gentleman there out in the field and it worked here for a long time,Corey’s been here 26 years. And they they welcomed Wayne Wayne fit in great with them, has quite a bit of knowledge just doesn't know our area that well.
He's already picked up on call when you're on call for 24/7. So thanks to Nathan and Corey for working with Wayne and of course, Wayne for coming over. So they need kudos for that too. It's difficult to do something like that. So I want to publicly thank them.
David:
Eric, you were you started to add color to what Jim had to say. Would is that $45,000 conservative, savings? I it seems like it might be.
Eric:
I think it's two different facts we're looking at right now. One is that that costs for those employees and that IGA are split between the water and wastewater fund. Overall, for an employee with employer costs, health care, things of that nature this day and age is anywhere from 80 to $100,000, with salary, benefits, health care costs, things of that nature.
And then our IGA is approximately $75,000. So the cost difference between that, you know, for those two employees and we were meeting all the responsibilities, it appears that the district manager has set forth the savings between those two items are our savings today. One last point as we move into the public hearings, point of clarification and up for our proposed 2021 budget, you're also, in addition to, approving appropriations, setting fund balances, you're also proposing, and directing, the district accountant, to certify the mill levy, this next month.
So, one important note that I forgot to mention is, in our proposed budget, the mill levy remains unchanged in our 2021 budget at 19 mills. So there's an operating mill levy. So I just wanted to bring that point of clarification. And then, if there's not any other questions, we can certainly move in to the items B and C here shortly.
David:
Well, I want to open it up, for public comment, if there are any online, do we have anyone that has joined us online? Posed a question? None, none from the audience, pertaining to the budget amendment and the 2021 budget? Hearing none. Eric.
Eric:
Very quickly, if we can wrap up item 2A and then I believe, we have to have an open and close of the public hearing. I'll let Mr. Seter, by board action and then, for both items. Is that is that okay? I'll go ahead and move forward with of ratification claims for payment and close out.
David:
You want to handle that separate of the resolutions? Yes. Or do you want to do that now? I was just going to have you, piggyback on to what we had already begun. But, if procedurally, I'm making a mistake, feel free to jump in.
Legal Counsel Kim Seter:
Mr. Chairman, I think we should go ahead and proceed as Eric is suggesting, and then open the public hearing on the budget amendment, close that out, vote on it, then open a public hearing on the 2021 budget, close that out and vote.
David:
Will do. Go ahead Eric.
Eric:
Great. Thank you, Mr. President. Closing out item 8A in addition to the financial report, I ask for your approval this evening. You have your payables and claims for payment. You have a ratification of general fund, and debt service totals of $69,034.78. Your enterprise funds of $513,451.06.
Electronic payments across all funds these include payroll things of that nature, $80,168.50, and then total expenditures of $662,654.34. And that represents electronic payments, as I discussed, and check numbers 25582 through 25648. So, with that, I'll put that forth for your consideration, the financial report and the claims for payment.
David:
I like to make a motion to approve item 8A as described by the finance director. More specifically, checks 25582 through 25648, dated October 10th through November 6th, culminating in and including all other expenditures of $662,654.34. Do I have a second?
Chuck:
I second it.
David:
We've got a motion on the floor and a second, for considering the approval of 8 item 8A the ratification of payables. When called upon, please indicate how you feel about the motion with the yay or nay. Director Crew. Yay! Director Lowen. Yay! Director Lewis. Yay! And Director Merritt. Yay! Director McEntire is a yay. Item 8A passes unanimously. Eric or yeah go ahead and tee up 8B.
Eric:
Certainly. Yes, so, as discussed, we will have a motion, and consider opening a public hearing and closing a public hearing after that if there are no comments or if there are comments. And then you will have a consideration of approval of the budget amendment and that like structure for item 8C.
David:
I'd like to make a motion to consider the proposed 2020 budget amendment and the associated resolution, as presented tonight by District Finance. Is there a second?
Robert:
I'll second that motion.
David:
We have a motion and a second to consider the proposed 2020 budget amendment and the associated resolution. Is there any further discussion on the item?
Kim:
Mr. Chairman, at some point, you'll have to open the public hearing prior to the board voting on the resolution.
David:
Is it appropriate now? It is. Hearing no further discussion from my colleagues I'd like to open it up to the public for anyone that would like to be heard on the matter. Getting a signal that we have no one on line that wants to be heard on the matter, no one in the audience signaling their desire to get up and weigh in on this I'm going to close the public hearing on the on the proposed 2020 budget amendment and call for the vote.
Board Voting All Speak:
Director Robert Merritt. Yay. Director Chris Lewis. Aye. Director Denise Crew. Yay. And Director Chuck Lowen. Yay. Director McEntire is a yay. The motion 8B described as a budget amendment for 2020 and the associated resolutions, pass unanimously. Tee up 8C.
Eric:
Yes. Thank you, Mr. President. Likewise, what we will do is, open a public hearing, take public comment, close the public hearing and then consideration of the proposed 2021 budget, and associated resolution, as well as directing the district to certify its mill levy.
David:
I'd like to make a motion this evening, on item 8C, as presented by finance Director Eric. Ask my colleagues to consider the proposed 2021 budget and the associated resolutions. Is there a second?
Chuck
I second it.
David:
We've got a motion on the floor and a second. Is there any more conversation or comments questions, concerns by my colleagues both here and abroad or far? Hearing none. I'd like to open it up to the public for comment for any of those that may be online that would like to make a comment. I'm getting a signal that there aren't any any in person. I'm getting a signal that there aren't any here either. It is with that information then I would close the public hearing and call for the vote.
David:
Director Denise Crew. Yay! Director Chuck Lowen. Yay! Director Robert Merritt. Yay! And Director Christopher Lewis. Yay! Director David McEntire is a yay. The 2021 final budget is approved and a good again, thank you to all my colleagues for a tremendous amount of work and and, to you, Eric and Jim, job well done.
Eric:
Thank you Board directors.
David:
Would like to close item eight to this evening and move on to item nine, which is the, but let me back up a minute. Should I have included in any or all of those motions the as Eric pointed out, the certification of the mill levy at 19?
Kim:
The certification is directed in the resolution that you approved. So it's okay.
David:
Okay. All right. I'll get better.
Kim:
That was fine.
David:
Give me a few more years. Well, maybe not. Anyway. Item nine, legal report. Counsel, are you ready?
Kim:
I am.
David:
You're up, sir. Thank you.
Kim:
You have the legal status report in your packet as usual. And the one thing that I want to report on, if you don't have any questions, is that I've handed out to you a hard copy of the draft inclusion resolution with Parker Water and Sanitation District. They have reviewed it for a couple of weeks after I did the first draft and had very few comments.
We're now moving ahead with fleshing out the attachments, which are where all the real detail work is coming in. But I'd appreciate your review and comment on that when you have a chance. You can do it directly to me or through Mr. Worley would probably be better. Parker, water and Sans board has now seen it as well and as I said, we'll now work on the detail work. Jim will send copies to Chris and Robert tomorrow morning via email so that they have it as well.
It does say on the top, hopefully in red letters, attorney client privilege, so that we can keep it among the board so that there isn't any misconstruing what's in there, because it'll be changing over time now fairly quickly. But everything is really looking good I have to say, I'm happy.
Chuck:
Yeah quick question. You just mentioned that Parker Water and San had received this report. Yes. Have they reviewed it at all?
Kim:
It was presented to them at their board meeting on the 14th last Thursday.
Chuck:
Are there things we should know that they have come up with?
Kim:
Nothing has come back to me yet. My exchanges prior to that were all with the attorney, and it went very quickly and smoothly. He was going to present it similar to the way I am tonight, by just handing it to his board and giving them time to look at it. So my guess is he hasn't gotten any feedback yet.
Chuck:
Thank you.
David:
Counsel, correct me if I'm wrong. The idea here, is, both, what we understand from Parker as well as ourselves, to take the next 30 days, to review this document, to work comments back and forth by and through Jim and however they're handling it there, so that, we're in a position, to, to, look at it, in, in more final form in December. Is that true?
Kim:
That is correct.
David:
Okay. There's a lot of work yet to be done.
Kim:
There's a lot.
David:
However, a heck of a great start. Nice job. Thank you. Nice job. Comments, colleagues, questions of counsel before we move on to the district manager, report? Seeing and hearing none. We're we're close item nine. I there wasn't anything else in your report council that, was, was, bothersome or required, any action. It continues to dumbfound me and in some cases entertain me, with some of the matters that we have in limbo.
And and, how how important they were at the time they were brought to our attention and how they seemed to just drop off when when requires action on on, some of the folks that are involved, here. Our our, pump station, as an example is, is, are we having a manufacturer delay in the as we've heard throughout the industry where pieces and parts are just not available as they used to or, I mean, any insight at all? Jim, on that as an example.
Jim:
No.
David:
Well you're no help.
Jim:
I know, I know, I try to be help, but but other than, we haven't had an issue to where we go oh my goodness we're not going to get this for a while, whatever the part may be. And so while I think there's probably some delay in some of it I think we're all running in that in our own lives to when we anticipate getting some at a certain time and then it doesn't show up. But we're not having a major issue with it, Mr. Chairman, if if that helps you out.
David:
Just just just checking. Thank you for the for the words of comfort.
Jim:
Yeah. My gray hair would be more grayer if we if we had more of a problem with that. But things are working out very well.
David:
Well, let's hope they continue that way, especially throughout the holidays and that we don't have any mishaps, with the temporary equipment that is out there. So far, so good. So thank you again for those words of comfort. Gonna close item nine, the Legal Council report. Move into item ten District manager's report. Jim, you have the floor.
Jim:
Thank you sir. A couple items I want to point out on, on my report. The second item is one about our storage. I just want to let you know that we're still putting water into our 1006 acre feet as of the writing of this report, which was November 10th. We have 121 acre feet of storage in there.
Now we started you might recall our agreement was Centennial October 1st, where they're starting to draw some of that water out, skimming a little bit off the top and then treating the rest. And so that's really where the lion's share of our water now is coming into the community is our water treated through Centennial. So that 121 acre feet is not just going to continue to go up because they'll be using some of that.
But I'll keep you posted on what our storage amount is. But the one that I'm probably the most excited about it if you turn to page two, it talks about CPN water rights. As you know, we own some farms and the water that goes along with those up in Weld County. And years ago I don't remember the dates we went through and went through water court and changed those from agriculture to municipal, which makes them a lot more value, quite frankly. In 2018, probably before this board came on and certainly before I came for tour duty, number two, we filed a water court action 2018 to take the other two ditch waters that we owned from these farms and change those from agriculture to municipal.
Everybody jumps into those cases all the water providers jump into those cases to see if there's anything that's being asked for that would affect their water rights. And over time they stipulated out or they say maybe make this wording a little bit better. A lot of that rushes right near the end because we had a court date for water court in Greeley starting, I think it was November 2nd was the date that we already had booked.
But thanks to, to, the hard work of Austin Hammer, who's our water attorney and some other consultants we use in there, all of the items that were brought up as a concern or, or whatever you may look at it from other water providers all got settled. So we did not have to physically go to court, which is better.
And it works out very well. So I already have a copy of the approved water court decree which changes those water rights from agriculture to municipal, which is huge for this organization and a lot more value to them quite frankly. And so I want to give kudos to Austin Hammer and his group that work very hard to get this thing taken care of.
And so I wanted to point that out to you. We've got that decree effective October 26th, which is my birthday so I don't know if they planned it that way or not. But that's how was of course it was it. So if there's other questions, I'll certainly try to address them. I wanted to point those two out to you.
David:
How old are you? Is the only question, really I.
Jim:
I'm okay. As long as I can tell you my age I'm alright.
David:
Nah nevermind I got I got a better question.
Jim:
I turned 70, just so you know that.
David:
Good news congratulations.
Jim:
And I saw a great t-shirt the other day that says I survived the 60s twice. Think about that for those of us who are near that age, but 1960’s.
David:
Best you recall.
Jim:
That I know, yeah, well, I like to say Gracie. That comment Gracie Slick made years ago if you remember the 60s, you weren't there. Which was.
David:
I got a picture on my wall. I’ve seen it.
Jim:
Thought that was funny.
Chuck:
Jim. Jim, you're you're a youngster, you know.
Jim:
Thank you sir.
Chuck:
I went through the 60s twice I think, and.
Jim:
And survived it too. I thought that was a great comment on that.
David:
He actually wanted to.
Chuck:
Hear your comment that the CPMD water rights have increased in value as a result of what Austin Harm has done for us. Is is that, obviously I my ears perk up when I hear, increase in value. Obviously that affects our relationship with Parker in a positive manner.
Jim:
Yes. Yes it does. In a nutshell, these water rights are not part of Parker's game plan. Okay. They were they have a different farm group even further northeast and that. Right correct. And so we've known from the beginning that these water rights would not be part of the deal. So now that we have them all municipal, that increases the value. And at some point we'll go forward with that. Does that help you answer the question?
Chuck:
Absolutely thank you Jim.
Jim:
You bet.
David:
We were following up on some notes to ourselves just last week. I know Austin and you talked about my telephone call to them earlier this week as it relates to perfecting those water rights. And, with the memorandum of understanding between ourselves and Castle Pines Metro Jim, what am I missing? When when when we're already using this is the first time that we've been able to use our water rights from 04.
We are storing them, we're moving them, we're distributing them. Here's the question. Has the memorandum of understanding run its course? Because that's a that was a that was a a ploy to expedite, potentially expedite some of those, absolute rights by running that water that they had storage for in Chatfield through our system without any additional claims. Again, I'm wondering if we even need that memo of understanding, any more if if we've done enough for ourselves now that we've begun to wheel that water to our residents.
Jim:
Let me give you a little bit of history on this. The agreement, let me back up the water that we are storing right now, the molecules of water that are going into Chatfield under our name all come from the South Platte River and there are Hawk Hocking rights. What you're referring to is years ago, us and Castle Pines Metro went together in a 2004 case to get water rights on Plum Creek and.
The only way to store that water anywhere would be Chatfield and of course, this year was the first year it happened. The problem with the 04 water rights is they're not every year. They're not as good as a hawk Hocking. Hawk hocking we're guaranteed we're going to get that water every year. But the oh four water rights are not they are lower in priority if you understand that.
And what happened was earlier this year, hoping that we would have knowing that we were going to be able to start storing in May, we were hoping that the 04 Plum Creek water rights would have yielded water. They did not this year, so there was no water that we could have taken and put in Chatfield our metro could have taken it put in Chatfield because it did not get down to our level of the water rights.
So so we didn't finish that MOU or whatever. So I resurrected that MOU. I updated it because we were anticipating it happening in 2020. I've sent that to Bert Knight and he and I are working on that. So hopefully we'll have that done before next spring when we start to get we have it done way before then, but that's the only time it will kick in is when the water rights start coming down Plum Creek and and, our 04 water rights. And if there's not enough water, if it's like this year, we won't get a drop of water out of that based on our water rights. So does that help? Does that answer your question?
David:
And I appreciate that reminder. Fully aware of of the dynamics, now that you reminded me of that, it's that whole 60 thing again. Yeah, I guess, anyway,
Jim:
So we'll have that done by the end of this year, is what I'm saying. And then we'll be ready in the event we have water in 04.
David:
Whoever's taking notes minutes to make sure that we're by the end of this year, we don't wanted another item that we've got to chase next year with, with, the opportunities at hand. And I know that Bert or Bart, Bert, doesn't want that interference either. So it it more over than not the cash flow associated with continually funding the conditional rites are expensive. Exactly. Let's spend them, let's make them absolute and get out of that cash draw.
Jim:
One thing, though, that I need to point out to you, though, is why I'm very confident we're going to get that done Castle Pines Metro does not have any way to treat surface water right now. So even if they were to put water in Chatfield, there's no way that they can physically get it to their community right now.
So the agreement makes a lot of sense. I don't know there are other rights David to be honest with you. I don't know what they are, but, and I don't know if they're actually storing it, I can find out, it's not a problem, but. But that's part of the deal with the 04 is that they those are surface water rights of which they can't get back to their community in the form of potable water.
David:
I think that if we have that document, Austin can file that with the court and pursue the absolute rights and that's what we're really after. It might be a couple years before we have water down Plum Creek or or.
Jim:
You bet. But we want that documented, though, so that when we do get a drop of water, we'll be able to take it.
David:
Yup thank you so much.
Jim:
One other item, on my report unless there's other questions on it. I'm going to be out next week. I'm going to go against the odds and I'm going to travel. I'm going to go to Dallas and spend Thanksgiving with my family. And so I've asked for and received Monday, Tuesday and Wednesday off of next week.
So it'll be the whole week. So having said that, this is a pretty unique year, but Happy Thanksgiving to all of you and hopefully you're able to join as as best you can under the circumstances. One other T-shirt I saw the other day said 2020 and then it had five stars. You know how you can fill in the stars for how great it is?
There's half a star filled in and the bottom says, I don't want to go back. Pretty good t-shirt. So Happy Thanksgiving to all of you and hope you have a good time with your family. You bet.
David:
And same to you. One last item before we let you off the hook. The risk and resilience assessment that we've become aware of, brand new EPA guidelines, as well as the emergency response plan that we, now been notified are going to be required of us. Prior to even considering kicking that can down the road and having somebody else take care of it, as we've talked about throughout this meeting.
I'm guessing, what little we know about that, it is a significant report writing effort. I'm wanting to make sure that we have enough information to move forward on that and that you have a plan, to, to meet those dates for those two requirements yeah?
Jim:
I do, yes sir Mr. President, and Greg Sechary with Kennedy Jenks is the gentleman who brought that to our attention. It has to be done by the end of 21, I believe is, the date, maybe 22.
A couple of days yeah. But we've already started that process. So, yeah, we anticipate meeting that without any problems. I'll keep you posted if there's any need for any action or something on that. But yes. I'm not that familiar with it yet to know exactly what it entails, but we're already starting to jump on it.
David:
You can jot this down. Our first date for the risk and resilience assessment is June 30 and then you're correct, that the emergency response plan is due, December 30, 2021. Okay. I'm going to close then the district manager's report if unless there's anyone else with anything else they’d like to bring up at this time.
Seeing and hearing none. I am going to open it up, to director's matters. Directors we have a schedule that you've all been in receipt of. This is a meeting scheduled for next year where we're breaking no excuse me let me back up. We've got that as item 11B, the consideration of adopting the schedule for regular meeting board meetings in 2021.
And then we have the issue of next month's meeting. It was scheduled for December 21st. We're finding some, maybe some opportunities to improve quality of life. If we were to move that meeting for everybody, from December 21st to December 14th. Is there any additional conversation or comments, concerns about that this evening?
Chris:
Yeah, I checked my schedule, David it's going to be rough, but I can make it.
Jim:
Some of you might have already gotten an updated, invite calendar invite yeah. If you did, that was rather by accident. I didn't want to presume you were going to do this, but I changed it in my calendar and then started getting okay, I accept, I accept, so this is just moving it up one week.
Chuck:
Chris, Chris, was that your humor? Was that?
Chris:
That was my humor.
Chuck:
I heard it and it was that was good. We've missed you.
David:
Well, I'm still counting on prime rib, so. Yeah. Humor or not, looking forward to your return. So, if there is no further discussion on moving the scheduled meeting of Monday, December 21st, Monday, December 21st to Monday, December 14th of this year. Let's let's, do that, by way of, of, our communications director, Mr. Smith, if you will, handle that for the district, as always, that would be great, as well as, the publication distribution of the meeting schedule for 2021. Are there any other director's matters for the moment?
You know, we had, skipped over an item, pertaining to, what was the most remarkable, byproduct of the due diligence I was giving my colleagues kudos for, when it came to adopting the 2021 budget. And while I don't want to go back and and and change anything, knowing that these, changes have already been made, I just want to bring up, the issue, in the plans that we have as a district, moving into 2021, to create and a true equity amongst the sub association entryways, that we have, that has come to the board's attention. I've got 21 documents here, prepared to hand over to council.
That would be an attachment to a license agreement much like the process we used, on the fence along Castle Pines Parkway. This is culminated, in in, what if it didn't change direction as a byproduct of, of this forward thinking that I'm making reference to, this had the potential of costing the district, $2.5 million.
This had the potential of costing the district and or the HOA’s, separately, anywheres for between 250 thousand or anywhere between $100,000 per HOA and 250 additional thousand dollars to the district. Without getting into a great deal of of, detail, Jim, do you want to add some color to to this? It was a remarkable byproduct of the, again, this board and staff's work ethic to reduce costs, and improve the position of the of the residents in the district as a whole.
Jim.
Jim:
Sure. Let me let me kind of give you a little bit of history. We have a total of 21 and 28, whatever that adds up to 50 some odd entryways within this community. 49, whatever it is. Yeah 20 yeah my math is, that's why we have an accountant over here. 28 of those, I think from the beginning, the entryways are maintained. Beginning of this community . Yeah. That's true. None of us were here. Well, some were but anyway. 28 of them were set up to where the HOA, which serves that particular area owns maintains the entryways into those areas come off our roads. 21 of them do not.
21 of them the district maintains going into these areas and always has. And so one of the thoughts we we came up with and this is, you know, that's that's not fair, to be honest with you. The, the 21 everybody pays for but the 28 they pay for others. So, so first we said let's see what it would cost to convert all of these entryways, the 21 entryways and, and and the cost involved and and changing the system up, put in a new, new, controllers, a whole bunch of work that would be needed to separate that from the district's responsibility.
That's what David was talking about a few minutes ago. It could be a couple million dollars. It's a lot of money, land cost and what have you.
So then we got to thinking, well, what's the right thing to do? What's a fair thing to do? Because we as an organization have been paying for these 21. The others have been paying on their own. So we said, let's come up with a per square foot cost, which includes water, maintenance that's mowing, fertilizing, some of them have electrical costs.
Those costs break them down in a per square foot cost that we pay as a district, using our contractors as to how much that is. So we came up with a cost and we took these 21, which is what David has in his hand. We took each one of those, and through Google, identified roughly the square footage of the entryways to each one of these 21.
And that's not real scientific. If we get to the point to where we do this, we will get more and actually measure it. And so we came up with a cost for each one of those 21 and said, here's what we're thinking about doing. Why don't you pay us for the costs that we incur to take care of your entryway?
Each one is a little bit different depending on the size. And you write a check for that one time of year or monthly however you want to do that. We’ll continue to maintain them, continue on them, do all the work we've been doing for all these years on, but you pay us for some of that cost, which makes it fair.
The grand total of an estimated cost for those 21 is just under annually $14,000. So not a lot of money. And so what we think we want to move forward on is to take what David just talked about and we've got we've got back up for each one of the 21 of how we came up with that. Put it with a potential license agreement and reach out to these HOA’s which most of them are and say, we want you to start paying for that.
We’ll keep maintaining you're not going to hire people to do anything, but you just write us a check. The most is about $1,000 a year. Yes, the grand total we came up with or that actually Craig came up with was just short of $14,000 total. So really sounds very fair to go to them and say, you know, we'll we'll narrow it down to get the exact square footage of what your entryway is so we can come up with a dollar amount, but it's not going to be much more than what we're talking about.
So that does that answer your question, David, on, because I thought it was a great idea to say, let's just do this. Keep the continuity of the of the maintenance that we all see, mainly off of major roadways. We'll still pay for it, but they pay their fair share of the cost. So that's our thought.
David:
Yeah. Thank you for that and, appreciate, that explanation bring everybody up to speed. And the drivers, were not only in a spirit of, of, fairness, but, equity amongst all the associations and this staff and my colleagues will, will, recall, umpteen different times, going through the financials and, and your report reconciling the water and the water that we were not capturing or losing as a district.
And, come to find out, we have two perpetrators of of this lost water users of this lost water. And I mean, water has become such a commodity, a valuable commodity. I think it even rivals gold, these days, given what we spend on it and and, I mean, in the hundreds of millions of dollars, as everyone well knows.
But here we're talking about less than $1,000 on an annual basis per sub HOA to create complete equity and and, equality in, that area of, of, where we were losing water. The second and the, and the last one is a city. The city is, is currently we currently have an agreement with the city where we maintain, assist them in maintaining their medians as an example.
And and we've yet to plug that dike. But, first things first, we've been working on on the sub HOA’s for quite some time. It looks like we're in a position to wind that business up. And again, because of everyone's hard work and dedication, through the budget process, it was like finding 2.5 million bucks.
And I am just tickled pink. Didn't want to leave the meeting without mentioning that and thanking everybody for just doing a great job, this year in in that regard. I'm going to close, item 11, director's matters hearing none.
Chuck:
Don't don't do that yet I have a question.
David:
Go ahead. I'm sorry.
Chuck:
I'm okay. Director Lowen. Last month, we passed resolution 202010-19-1, which was the inclusion of the Parkway water, the existing water main replacement along, Castle Pines Parkway and Yorkshire Drive and we attached that to the ballot question 2A as I believe was extremely beneficial process to benefit the residents of Castle Pines.
As we all know, the ballot question did not pass. We still have, on our plate, the, the necessity of addressing that water main at some time now or in the future. Just as a as a quick question, is it something we should have on the board for later? Or, it's not going to go away is it something we include with Parker?
I don't know the logistics, so I'm looking for some clarification. And I'm sure that since that failed, that ballot issue failed there are probably some constituents saying, okay, metro district, what are you going to do about your water line?
Jim:
And I can address that.
Chuck:
So I think we need some answers.
Jim:
I can address that if I can. As you know, we had anticipated that if it would have passed, we'd be working with them on this and getting it done and doing our, our pipeline. And so when it failed, I probably, like everybody thought, well, we got to find another way to do that. Well, I actually had a phone conversation with Larry Nemo, Public Works at the city, a couple of days after it failed.
And I said, sorry, number one, number two, I guess we're on our own. He says, no, not necessarily Jim. He says, we're going to look at it again. Apparently there is some money somewhere that they could, and I don't want to speak for the city and certainly Deborah's here to address it. But they are they could still do that project.
And that project was to improve Castle Pines Parkway from roughly Legae up to Monarch. That was phase one if they would have had the approval from the voters, that was going to be the project. I was told in a meeting that I had with Larry and with Michael Penny, city manager, we think we might still be able to go forward with that project.
Would you still be interested in participating? I says, you betcha. It's just best for this whole community to do projects like that together. So I don't have any other direct details on it. Maybe Councilwoman Mulvey might have some some things up, but that's the last conversation and that was actually last Friday. I met with Michael and Larry, so there's still a chance that we'll be able to do that. I just don't know how it's going to happen from their side.
Chuck:
Whether we do it with the city or not it's still got to be its topic item. No question. It's not going to go away.
Jim:
You betcha. It will not go away at all, you're right. So hopefully if this works out, we'll still be able to do at least that portion. Maybe with the city but that's all I know.
Chuck:
But if that doesn't work out, we still we we should, we should come up with a.
Jim:
We should look into that.
Chuck:
An alternative solution again.
Jim:
You bet.
Chuck:
Okay thanks.
David:
So yeah, let me let me just add, that the alternative, was was the plan initially. That was a parallel or horizontal drill to replace that main line for the entire length. The engineering has been completed. The costing of the project is, is, well underway if not approaching completion. The pipeline does not currently lie underneath the road.
This was just simply an opportunity to potentially make a difficult job a little, a little easier. But, moreover, as you all insisted, look at every opportunity to economize and create efficiencies where we can and, the road came up, unbeknownst to us the road came up. We jumped through some hoops, we prepared a resolution, and that resolution, with consideration of of this district, did pass and and so, Jim, you're right. There there's there there is an offer but it's it's, it's something that's going to have to be reworked. You may recall, in that resolution, as well as some communication between the city and ourselves we implored them to meet with us, to this date and to this moment that has not taking place.
Granted, you have a telephone call, but, there's nothing here that we could act on currently. But like yourself, are anxiously awaiting them to get through their budgeting process, I'm sure. Before which time they're in a position to, bring up, bring the issue forward. So, we remain hopeful that there is some part of what we know to be a good project, with the city, if they can pull it off.
If not, our engineers are still of a mind that that line is not required to be replaced, but does show up as a part of our asset information management system as being, a main line to watch. And and while the district is, is prepared financially to move forward it's not something that if we don't, with or without the city, move immediately that it is, is, detrimental. It's it's a, it's an, it's an issue of, of risk management and, the current team working on it, I think has a good handle on it and, and if I've left anything else out, Jim, feel free. But, I think when the city's finished with their budget process, we'll get together.
JimL
Yeah I just wanted to say we had met, Greg Sechery with Kennedy Jenks, and I met with them prior to the vote that failed and did a little bit of preliminary work waiting for it to happen. And then after it didn't happen or it wasn't approved I communicate with Greg Secretary and said, hold on, sit steady. And so I met with Michael and and, Larry last week and we that was one of the things we talked about.
So I haven't had any more discussions since then. But assuming they go forward with it and I don't know when that will be as far as their process is concerned, we're ready and willing and able to jump right in and be a part of that.
Chuck:
When you say they're you're referring to the City of Castle Pines?
Jim:
That's correct.
Chuck:
And you said, you want to wait for their budget process? Okay December 8th. So am I to assume that this is a a agenda item for your council?
Deborah:
It's in the budget proposal as a specific capital project I believe. And what I learned to follow up on what Mr. Worley said is that I believe it's possible to still do it, not only financially based on the proposed budget and what else might be discussed on the budget, but also logistically, because there are four lanes at issue. it's a discrete segment that aligns with what is affordable, and you all need one lane.
And we need we want to do four lanes. And so there is a divisible portion that can be shared with respect to engineering and other costs. And so my understanding is that it's feasible from a technological and a budgetary standpoint. But there isn't a separate resolution on it.
Chuck:
Thanks Deborah, at least it's it's on the it's on the table.
Deborah:
Yes. Yes.
Chuck:
Thank you.
David:
Anything more directors? Right. I'm going to close the director's matters portion of our meeting. I'm going to open up again item 12 for public comment. Communication director, anyone? We've got no signals from those joining us online that they have any questions, comments or concerns to voice to this panel this evening and none in the audience. So I am going to close the public comment period and pursue a motion for adjournment.
Denise:
I'll make a motion to adjourn the meeting.
David:
Got a motion on the floor from Director Denise Crew to adjourn. Is there a second?
Chuck:
Second.
David:
Have a second on the floor to adjourn the meeting by Director Chuck Lowen. All those in favor say at one time, I. I. I. I. Any opposed? Hearing none and giving thanks again to you, Robert, Merritt and Christopher Lewis for your attendance tonight. Thank you for taking the time. Thanks always for being available to us and ensuring that we can move forward in a unified way. Thank you for your service to this community and and to this country. Thank you both. Good night. Meeting adjourned. Thank you.
Describer:
Meeting adjourned. Thank you for watching.