November 18, 2019 Video Board Meeting
Transcript
AGENDA
Board of Directors Meeting Monday, November 18, 2019, at 6:00 p.m.
7404 Yorkshire Drive, Castle Pines, CO 80108
1. Call to order the regular meeting/pledge of allegiance.
2. Roll call/announcement of quorum/disclosure of potential conflicts.
3. Consider approving November 18, 2019 board meeting agenda.
4. Consider approving minutes of October 21, 2019 regular board meeting.
5. Opening public comment period (3-minute maximum per person).
6. Open Space Manager’s report.
7. Legal Counsel’s report.
8. Erik Helgeson, of Bartle Wells Associates, will present the firm’s 2019 Water, Wastewater, and Stormwater Rate Study findings and associated recommendations for 2020 cost-of-service rate/fee increases of 3% on water service rates and 4% on wastewater usage charges
9. E ric Harris of Pinnacle Consulting Group will present the proposed 2020 Budget. 10. PUBLIC HEARING on the proposed 2020 Budget.
11. Consider draft RESOLUTION 2019-02 that encompasses the adoption of CPNMD’s 2020 Budget, appropriates funds, and sets mill levies.
12. Finance Director’s report.
13. Consider approving financial report and items from Finance Director.
14. Consider approving and/or ratifying October 2019 payables (check numbers 24728 - 24787).
Approve Ratify Totals
General Fund & Debt Service Approve $0.00 Ratify $ 50,862.09 Totals $ 50,862.09 Enterprise Funds Approve $0.00 Ratify $ 296,671.27 $ 296,671.27 Electronic Payments (all funds) Approve $0.00 Ratify $ 82,940.08 Totals $ 82,940.08 Total Expenditures Approve $0.00 Ratify $0.00— Totals $ 430,473.44
15. District Manager’s report.
16. Consider RESOLUTION #2019-01 regarding ownership, maintenance, and liability responsibilities for privacy fencing that lies in a periodic state of disrepair on the south side of Castle Pines Parkway, between Shoreham Drive and Yorkshire Drive.
17. Other Directors’ matters.
18. Closing public comment period (3-minute maximum per person).
19. Adjourn.
Describer:
The video starts on a graphic with a white background and forest green letters. “Castle Pines North Metro District Board Meeting November 18, 2019.” The meeting opens with board presidents David McEntire, Chuck Lowen, Denise Crew, Robert Merritt, and Chris Lewis.
Board President David McEntire:
Good evening everybody.
Those of you that are attending this meeting, those of you, online joining us. Welcome.
I would like to call to order the regular meeting of Monday, November 18th, 2019. And with same, ask everyone to join us in saying the Pledge of Allegiance.
Describer:
The board and audience stand up to recite the Pledge of Allegiance. Camera pans from the board, to the audience and back.
All Speak:
I pledge allegiance to the flag. I United States of America and to the Republic for which it stands. One nation under God, indivisible, with liberty and justice for all.
Director McEntire:
For those in the audience. And again, for those that are online, My colleagues and I have spent a considerable amount of time over the course of the last 30 days preparing for this meeting, as we always do in same, we have reviewed the board minutes of, of, October 21st. We have, also reviewed and approved the meeting agenda of November 18th.
And, so when I finish with roll call, if one of my colleagues would like to make a motion to approve, those two items will consider them at the same time. Also, when I call roll, if you will disclose any potential conflicts. That would be appropriate.
Board Member Director Denise Crew:
Director Crew. Present. No conflicts.
Board Member Director Robert Merritt:
Director Merritt. Present. No conflicts.
Board Member Director Chris Lewis:
Director Lewis. No conflicts.
Board Member Director Lowen:
And Director Lowen. Present. No conflicts.
Director McEntire is present and I have no conflicts. We have a quorum. Do I have a motion from the board on items 3 and 4?
Chris:
Making a motion to approve the minutes from, October 21st. And the agenda for November 18th.
For meeting agenda.
David:
I have a motion on the floor to approve items 3 and for the minutes in the agenda of last month and this month. Is there a second?
Robert:
I'll second that motion.
David:
We have a second by Director Merritt. All those approved or all those in favor? Say I,
Board Voting All Speak:
I. Any opposed? Hearing none. Motion carries.
David:
I am going to hastily move to the open public comment period.
Where in same we have a number of folks in the audience that, are here for a couple different reasons. Finance and and and budget. And I am going to assert, and if I'm wrong, forgive me, but I'm going to assert that, Scott, you and Jim do want to speak, about the fence, or am I taking that wrong?
You're just here for that, or would you like to speak? And you don't. You've got this period and you've got one at the end of the meeting.
Describer:
Audience discussion related to public speaking.
David:
Then, we have, Donna and Steve Packard. Same. Would that be this comment period or at the end?
Describer:
Discussion related to answering David’s question about commenting period.
David:
Okay, that'd be great.
And, Ben. Now or at the end?
...
Very good. Well, we're gonna, as you all know, we're going to address that fence issue towards the end. Anyway. Thank you for coming. Thank you for signing. And I look forward to hearing from you. Is there anyone else that would like to be heard? Hearing none. Not seeing any streaming on the screen from any online texture, blogger or otherwise.
Not that we have that provision, but, Work with us here. I'm going to close the public comment period and move to the Open Space Manager's report. Please note that our open manager, our open manager, our open space manager, Craig, is not here tonight. Having a bout with a double cataract scenario that is keeping him off the roads.
At nighttime, while he promises to have that corrected before our next meeting. We have all seen his report. We've all had a number of days to consider it. Ask him comments or questions, make comments, etc. are there any that we want to contemplate that have not been addressed already?
This evening? Hearing none. Look for a motion to approve the Open Space Manager's report.
Director Crew:
I'd like to make a motion to approve the Open Space manager's report.
Chris:
I second it.
David:
I've got a motion to approve a second. Let me just make one comment as it relates to, That open space report. He talks a considerable amount or takes a considerable amount of time and effort.
As it pertains to these bioswales and specifically, as it relates to some of the budgeting that we've contemplated going into 2020. I just want to make sure, for the record, that, my colleagues, understand that in the event that the quote unquote bioswales are not the answer to eliminating, if not, drastically reducing the debris in the roads during the winter time, then a, reverse style grading, effort will be made.
It's a bit technical and without getting into it a great deal. Craig did agree to and does have money in the budget to regrade some of those areas where, the grading along the curb is significantly higher than the curb. So when the snow is removed and it melts and the splash factor and the wash boarding that takes place with the water, etcetera, washes into the road, that will be greatly reduced, if not eliminated by virtue of those efforts that will be, executed inside of 2020.
So I just want to make sure that, we're all on the same page and are looking for the same results during, the upcoming season. That being said, again, we have a motion on the floor and a second to approve that report. If there's no further discussion, ask for a vote on the motion. Everyone would significant signified their approval by saying I any of those oppose, say no, those in favor?
Board Voting All Speak:
I.
David:
Any opposed? Hearing none. Motion carries. We are going to jump to the legal report. Item #7. Council. Welcome.
Describer:
Camera pans and zooms to Kim Seter.
Legal Counsel Kim Seter, Esq.:
Thank you, Mr. Chairman. You have a copy of the report in your packet, and, I can answer any questions, but there are no action items in there that are not otherwise on the agenda already.
David:
I don't have any questions. I do appreciate, addressing Chris's concern over the course of the last month with regard to, reconciling the report as these items are taken care of, fearing that maybe something may fall through the cracks, I noticed that a warning, was in there on following one of the items. It'll fall off next meeting, having completed it.
So thank you for that. We may need your help. If this board is going to, resolve, both, the, 2020 budget, the rates and the fees and the mill levies. So I know you're standing by there and also, potentially some Q&A on the resolution pertaining to the privacy fence.
So, is there any other comments? Questions, concern of council directors?
Chris:
Are we going ahead with the motion now or later?
David:
Would be later.
Chris:
Okay.
District Manager Jim Worley:
Mr. Chairman, if I could, a couple of months ago, you weren't here at that meeting. One of the items that was on the report at the time was the ability to post for our meetings online.
You might remember that little blurb in there. What we do now is we post it 3 specific locations in the county. So there's a physical going around doing things. I don't believe you took any action. Maybe I'm mistaken on that. That's correct. There was there wasn't any action. So I'd like to see if there's any any desire to allow us to put this on the website only.
And we don't post it on that door. We don't go posted, you know, out where the frogs are or wherever it may be in places. So we can continue to do it just like is we do not have to make any changes whatsoever. But I think from a standpoint of websites of which we use and keep it up looking pretty good, that would be a suggestion that we allow to post on there, unless you want to just keep doing it the same way.
So I'd like have some direction on that if I could.
David:
I think Elizabeth shared with us that nuance, and I just don't recall. Was that a byproduct of the current legislature's work?
Kim:
It was, and I believe the discussion at the time was that you felt that was more transparent to have the postings and the website, but you don't have to have the postings any longer.
Describer:
Board members whisper about the postings’ locations Jim mentioned.
Chris:
Where's the postings done?
Jim:
I was afraid you were you going to ask that, this door right here? It's that's one of the places. And actually, I handed it to Nathan, the other two copies I handed to Nathan, we sent one down to the county they post on, on the county website, but Nate and I can find out.
I don't remember the other two locations off the top of my head.
Chris (Mic off):
Is there a physical location in the library also
Jim:
I believe there is one there.
Chris:
My question mostly is. So you know, not everyone have access to a website and we want to have it as available to as many people as possible. So I think the library is a good location.
So yeah, that's why I'm asking.
Jim:
Let me find the other two. Again, I don't know. I'm off top of my head. I want to maybe the library, but I'll find out what the 3 are. I'll send you an email tomorrow and let you know where they are. And then you can direct after that. That's okay.
David:
You know, I kind of agree with Chris.
I could easily save a tree. But, the library is a is a keen location for those seeking some of the typical city services and so is our building. So I'm not so sure that we couldn't just give you that direction tonight and make sure those to that that that on online okay. Doesn't have to be posted here but online and at the library a physical posting would be sufficient.
What do you think, Denise?
Director Crew:
My first thought is, a website is sufficient, but there is truth that not everyone has internet access. So I think posting, I think doing both is better than one or the other ultimately.
David:
Robert?
Director Merritt:
I agree with that.
David:
So we'll continue to post our physically at the library or the city offices right wherever that is allowed and online, negating, negating the, necessity for posting on this door.
Jim:
Perfect. Thank you. Okay.
David:
Keep in mind, for everyone's edification, both online and in in and, this evening's meeting that we do post the draft agenda to the website 10 days ahead of time. That is a big difference from the way it used to be handled. And, and, I think we've benefited greatly for that. And the final draft, while that's a draft, the final draft is, is, 3 or 4 days, before the board meeting.
So for everyone's information, know that that, is also available online as many as 10 days before. All right. Thank you. Council. Item eight is, a gentleman by the name of Erik Helgeson of Bartle and Wells. He is, a, consultant for the district in a number of other, folks, nationwide, I don't know, maybe worldwide, but, we certainly have benefited with, having him as a part of our consultant team over the years.
Been able to run up the flagpole, if you will, a number of, scenarios that he has incorporated in, some of his prognostications and forecasts. And then, comparing those to the real data with our, folks at Pinnacle and collaborating with staff and the board of directors has come up this year with a rate and fee analysis study and a summary and recommendations.
You have the floor.
Describer:
The camera zooms out and pans to Erik Helgeson as he introduces himself.
Erik Helgeson from Bartle Wells:
Thanks, David. As I said, I'm Erik Helgeson, I'm with Bartle Wells. Bartle Wells is a municipal financial consulting firm based in Berkeley, California. I, before working there, I worked at Denver Water as a senior financial analyst for a number of years. So I'm connected to the area.
Describer:
Video transitions to slideshow.
Presentation Overview:
- Water Study
- Wastewater Study
- Stormwater Rates
- Combined Impacts
- Discussion
Slideshow date at the bottom left corner “11/18/19.”
Erik:
I moved out there, a little while ago. So as, David said, I'm going to talk about, the enterprise, rates and, and charges for the water, sewer and stormwater enterprises. Beginning with the water rate study.
Describer:
Slide changes to “Water Rate Study,” then to Financial Planning Overview
- Debt service associated with Chatfield project
- Maintain operating debt service coverage above 1.1x
- Expense inflation
- Based ENR Index, inflation in 2017 was 3.38% and in 2018 was 3.03%
- Review Capital and Renewable fund revenues after consolidation study completed
Erik:
And so the, the, overview of the finances for the water fund are, there was debt service associated with the Chatfield project that we want to make sure the operating rates are sufficient to cover.
Also, you know, just general expense, inflation expenses have been inflating at around 3% the last two years. Looks like it's on track to do that and maybe then some this year. And finally the the board is, doing a consolidation study and reassessing the direction of, how they're going to be spending capital funds. So for this, this year, look, I really just focused on operating expenses and rates
Describer:
Video transitions back to Erik.
Erik:
and, and also, I think the board is looking into, asset management in some GIS next year.
So for those reasons, I, we're just focusing mainly on operating costs.
Describer:
Video cuts back to slideshow:
Ten-Year Projected Operating Fund Financial Plan
- Rate revenue increases of 3.0% in 2020 and 2021, 2.5% thereafter
The slide shows a bar graph as described.
Erik:
So, I apologize, I changed this from last year. This is the, 5-year operating fund. Since we are looking at major changes, I decided to shrink it down so you could look a little, see it in a little more detail. As was recommended last year.
We're still recommending a 3% increase in 2020, mainly just so we can get that coverage from the operating revenues to cover the, the the debt service at a one times amount, water usage was, lower, especially until September this year. So, that, you know, altered our revenue forecast slightly. So, you know, going forward, I'm recommending a two point 2.5% increases.
But really, you know, see, seeing where the it comes in at the end of this year, I think you had a really strong September, so maybe even a little bit lower next year. But just to be conservative, 2.5% going forward. But the main thing is 3% in 2020. And then, no changes to the renewable water fund, and the, the, the capital maintenance charge, only increasing the monthly service charge.
Again, to cover operating costs.
Describer:
Video cuts to new slide:
Proposed Residential Drinking Water Volume Charges
The slide shows a bar graph of proposed charge increases for the year 2020.
Erik:
So the new rates, are a 3% across the board increase. And, I'll take questions. At the I can pause at the end where I'll take questions at the end for the, for the board, and then the public will have a chance to respond. The, so these are the, the residential drinking water rates there.
There are 3%, across the board increase. One thing to note that the tears are, also based on a prior cost of service study. And you know, the so the, the board, we're also holding off on doing a detailed cost service where we readjust the allocations to the different customer classes until we understand the capital cost, because that would be a big driver of where costs are allocated.
And so we're just tying the rates to the operating change in operating costs this year. So that's the 3% across the board increase. Keeping it smooth and predictable. For customers. So, I'll just go through this briefly. It's going and I'll just mention Tier 1. Tier 1. For residential is going from $4.63 to $4.83 for irrigation is going from $5.51 to $5.68.
And, for commercial, it's going from $3.95 to $4.07.
Describer:
Video cuts to new slide:
Proposed 2019 Resident Bill Impact
90% of the residential drinking water bills will reflect an increase of $4.00 or less.
Erik:
So 90% of residential water bills will be will increase by less than $4. Really, you can look at what you pay last year, increase it by 3%. And that's what you can predict that your bill will be going into 2020
Describer:
Video cuts to the 2 new slides:
Wastewater Rate Study and Financial Planning Overview
- PCWRA debt service
- Debt service coverage
- Expensive inflation
- Based ENR Index, inflation in 2017 was 3.39% and in 2018 was 3.03%
- Ongoing repair and replacement
Erik:
Onto the sewer rate study. Basically the same, same story. There's the PCWRA debt that's coming online, making sure that, operating revenues are sufficient to provide the proper coverage for that debt service.
Inflation is, we're, you know, as I mentioned before, about 3%. And then there's just ongoing repair and replacement. The board is, I believe the board is planning on or the district is planning to reassess that with the asset management software. So we're just kind of using projection right now. And then they'll come up with more detailed, numbers once they input that data into the system.
Describer:
Video cuts to the next slide:
Ten Year Projected Financial Plan
- Rate revenue increases of 4.0% in 2020, 3.0% thereafter
The legend displays Debt Service, Cash Funded Capital, O&M Expense, Reserve, Total Revenue, and Operating Revenue respectively.
Erik:
So here is the, the for the five year projection. Again, my apologies on the title. With the 4% rate increase as we recommended last year, and we're still sticking with that recommendation and a 3% increases thereafter to keep pace with inflation and maintain that healthy debt coverage. One thing to note on the the, sewer side is there there's not the other funds.
This is showing all of the capital and operating revenue and expense and, development has been happening at a fairly rapid pace compared to what it was anticipated, you know, several years ago. It's staying on that pace. And we try to be conservative, but because the pace is so consistent, I decided to show the, the, the connection fee revenue, as well, which separate from the operating revenue.
And that's driving the increase in reserve.
Describer:
Video cuts to next slide:
Proposed 2020
Sewer Service Charge (Average Winter)
A bar graph shows the charge rising from $6.46 to $6.72
Another bar graph shows the charge rising from $13.31 to $13.85
Erik:
So when those capital projects are identified, you're you're building a healthy capital reserve to be able to, to address those as they arise. But the primary thing driving the increase is just make sure making sure you have the the proper operating revenue coverage for the debt service. So the proposed sewer charge, the winter, based on average winter use is, going from $6.46 to $6.72 and the fixed charge is going from $13.31 to $13.85.
The fixed charge is going up $0.54, and, there'll be a $0.26 increase for, you know, for your, winter usage. So you can calculate that,
Describer:
Video cuts to the next slide:
Proposed 2020 Wastewater Monthly Bill Impacts
The slide shows a bar graph of what is described.
- All inside service area customers will see the fixed charge increase by $.54 and a volumetric charge increase by $.26 for each 1,000 gallons of winter use.
Erik:
you know, what your, based on what your last year's winter was and have an idea of what it's going to be. Most of the bills are going to be below a $3 increase.
And I believe it was about under 50% is going to be below $1.75.
Describer:
Video cuts to next slide
2020 Stormwater Rate Recommendations
- No change in 2020
Erik:
There's no change in the storm stormwater rate for 2020. The revenues are still sufficient for the, expense to cover the expenses.
Describer:
Video cuts to the next 2 slides about Combined Residential Bill Impacts.
Proposed 2020 Residential Bill Impact Combined Water and Wastewater
- Total increase for an average bill use (10,000 gallons) is $3.76
95% of the combined residential bills will reflect an increase of $8 or less.
And then looking at the combined impacts for sewer and water, the, 95% of those bills are going to be below $8 and $8 increase total per month with, you know, over 60% being, or about 60%, excuse me, being, being below $3 per month.
So, with that, I'll turn it over to the board for questions.
Describer:
The slideshow concludes with a slide thanking the board for their time.
The video cuts back to Erik as the camera pans back to the board.
David:
Thank you. Erik. I was just sharing earlier, with, my colleague here a summary of of some of the work that, this board has and staff has been party to, in some cases for the first time, because some of us have not, been through this process before and others, for the first time because and specifically staff because staff had not been a part best we know, looking back, a part of the budgeting, process.
And while this, process, spans the course of 4, almost five months worth of work, to get you the numbers that you need in order to give us, from your vantage point, what it's going to take to remain in the black. I just want to, shout out to staff and to my colleagues. Great job on putting it all together.
In summary, I as I took it away and Eric is, with Pinnacle is going to make a presentation here and after a very brief, but, if, if I have any of my facts and figures wrong, he can rebuke me at that time. But for the audience and for those viewing online.
2019 costs for delivering water was up over 2%. And while the increase we're asking for is 3, it is a fragment of 1%, over cost. And we have, a number of, of, projected projects, the study with our neighbor Parker water and sanitary, district, to name one another. Major cost is our GIS, programing and infrastructure that we're implementing here, which is a management information system that will give us back up data, detailed information right down to the dollar of the reserves necessary, that we are going to need as a as a continuing water and sewer wastewater provider.
It's just a side comment. It was, pleasing in conversation with Parker that there, currently underway with their own program and it's identical to the one that we have, chosen and are working with at this point. So, and it seems like not only are the water and sewer providers in on the Front Range moving to that, moving in that direction, internet based rate.
So be it. Go figure. But, in speaking with the mayor, over the course of the last couple of weeks, they too are looking at some, some of that, type of, data querying and prognostication, online for internet based, for some of the assets that they have. So I know we're on the right path from a wastewater point of view.
We decrease costs this year compared to last year. And albeit we're asking for for percentage because as is, you pointed out, the capital expenditures that we're looking at that we do know are in line for the immediate future. Our forecasted up over 10%. And so the without throttling that forward or backwards, and creating the chaos that, that does the 4% seems to work.
I think this board has been judicious. I know they've been judicious and and hard said on not moving that, pendulum on the, on the, on the renewable water fee as we speak. And the wastewater is, is, no changes and, and so again, a shout out to everybody and all the work that's taking place, I'll just open it up, to my colleagues for any other comments or questions to, Erik or myself.
Hearing none. Thank you for that. Appreciate it. We'll move on to item nine, which is, Eric Harris of Pinnacle Consulting, who will present a byproduct or the byproduct of those rate and fee recommendations, the 2020 budget. And again, I'll just mention, the amount of work and effort put forth by staff, albeit they're paid to do that, this, this, this go around.
Describer:
Camera pans and zooms out from the board to Financial Director Eric Harris
David:
They played a new role in making sure that some of the omissions and errors that may have taken place in the past with regard to the budget from that was created from the folks inside, compared to the realities of those where the the boots are on the ground, the rubber meets the road, we eliminated and made them a part of that process, an intricate part of the process.
And so, kudos to them. Much appreciation. And, we have a great deal more confidence in our budget this year, as I know Eric does. Eric, you have the floor.
Financial Director Eric Harris:
Good evening. Board and public. Today in front of you, I have, we're here today to, adopt a proposed 2020 budget. Starting on page 6 I would like to kind of combined, items 9 and 12, which is the standard monthly financial report with our financials as well, with our budget. General comment on where on our position, where we're at through the end of the year.
We're dialing in, our projections to where our ending fund balances are going to be per fund. And so that we can enter and target really 2020 start off on a good foot and also, layer on the 2020 proposed soon to be adopted budget. I would like to thank the board and staff, for their time and efforts.
This is a process that starts back in June, culminates for many different milestones and benchmarks from, individual meetings, to, our works public work session that occurred, several days ago. As a result of that, starting on page 6 what you have on the far right hand column is, culmination of those efforts, as well as the inclusions and the results of discussions that occurred at the work session that did occur.
About 10 days ago. General comments I will make is there's, to, you have your fund base financial statements, your fund base financial statements are funded by property tax revenues, your general fund. And then you have your specific, funds, your COP fund, your CTF funds. Then you have your enterprise funds, which are funded by rates and charges, and that's the utility bill section.
So you have to isolate those differences. When you look at the budget, general comments are, assessed valuation within the district is up 13.5% from the prior year. That's even with the residential assessment rate going down from 7.2% to 7.15%. We can go into a larger discussion of what that means, but either way, there is an increased build out within the district and higher, property values.
In the proposed budget. We have 19 mills as a proposed mill levy. That's the general fund mill levy that we've used for several years and far below the overall mill levy that's occurred since, I had my notes from several years ago, and it started coming down once the district paid off. Its, long term debt. It's had starting in 2016, 2017.
Other comments to make is, the 2020 proposed budget is $115,000 less of proposed expenditures than the 2019 adopted budget that we currently have, there. So that's a general comment. I have in the general fund, parks and open space. There are several, inclusions for next year. We added a $50,000 allowance for fire mitigation activities associated with open space activities within the district, but a large component of the Parks and Open Space Fund.
And this is on the next page assuming page 10 is, associated with the non-cash charge for the utility side. What I talked about before, providing irrigation water to all the open space. So that's a $250,000 allowance that we have. So that's a non-cash. So that budget is that much less if you think about on a cash basis, moving forward, there are several other funds.
You have your CTF fund, you have your, 2015 special revenue fund to fund, the issuance associated with, a lease purchase obligations associated the 2017 certificates of participation. But moving forward to the to the, Water Enterprise Fund. This is a culmination of, what Erik spoke to earlier of, proposed increases associated with utility bills, adjusted for items that we discussed in our work session before.
So, this pairs, like you said, your operating revenues to operating expenditures. So if you take this forward all the way through, you see a relatively large change in fund balance in the water enterprise fund, in the wastewater fund. But that's mainly due to your nonoperating revenues, which are those onetime impact fees associated with development that the district incurs here, renewable water investment fund and your water connections.
And on the wastewater side, your wastewater connection revenue. With that, are there any questions on either the 20 the October financial report or the 2020 proposed budget that you have in front of you?
Describer:
The camera pans back to the board. No questions from them.
David:
Thank you Eric. Thank you. Chris. I will say that, in final review of your report, which has, looking forward, and mainly yours, Erik from Bartle Wells. Please note that the district has been, a participant anyway, in, more than one conversation with some additional development, possibilities within the service area.
And, and it's with those nuances where there's no facts, to share with you. Now, put it on your radar for this upcoming year. We'll want to, I think they'll become more clear in the upcoming year in 2020. And, we certainly give us an opportunity to re forecast, filling up Erik's, slideshow back to the ten years as opposed to just the five.
So, don't change the title. There's a real possibility we will have growth for the next decade. If it works out for the city and the residents. So put that on your radar. Otherwise. Again, thank you very, for the rate and fee information, the summary, I think most of us are going to wait for the movie.
And your final report is is the report that was attached to our budget workbook. It was this one in the final report,
Eric:
The workbook that was received several weeks ago was the preliminary budget. That has not been updated with the, adjustments from ten days ago.
David:
But we can add that. But was Bartle and Wells report final in there?
Eric:
It was not final. We were, because we had to. We had several minor changes that occurred. We can update that report and distribute that to you.
David:
When will we receive the final, then? From, both Bartle and Wells and we have a deadline right on the 15th.
Eric:
Well, our deadline, for the 15th of December, is only to adopt legal appropriations as expenditure appropriations so that the district can go ahead and adopt and approve contracts for next year for work and scope of services.
So that's the legal obligation for that. The rates and rates and charges will be considered at the rate hearing that will occur next month, which is independent of this, if you will.
David:
And while we may, For what would the appropriate characterization be for conforming disclosure reasons. We will take that. Yes. Under well, we'll take we'll memorialize the, final report and the adoption of same in January.
Not in December.
Eric:
Yes, we do will finalize it in January.
David:
And, But tonight we are going to I think we are all confident, enough to, introduce a motion to approve of for 2020. Not only the budget, but the rates and the fees and the mill levy set forth before us tonight.
I don't have any other questions. Again, keep in mind, the re-forecasting for some additional potential, growth next year, both of you. Otherwise, any other comments, questions, concerns?
Kim:
Mr. Chairman, may I clarify for the record, what you would be approving tonight is the budget that will show the revenues and expenditures within those revenues are an anticipated rate increase, but you're not approving that rate increase until January.
David:
What he said.
Describer:
Board speaking on clarification.
David:
You're good. Thank you Council. Thank you Council. All right.
Director Lowen:
Eric, I just had a quick question. Just refresh my memory. You said the mill levy for the metro district in 2020 was 19 mills.
Eric:
19 mills. Correct.
Chuck:
What do we do this year in ‘19?
Eric:
19 Mills
Chuck:
Same change?
Eric:
Correct.
Chuck:
Thank you. I did want to hear that.
Eric:
And so there's an analysis that occurs because as I mentioned the residential assessment rate has dropped for some time. It has been at 7.96%. So if you have a home, you're only taxed on 7.96% of the value of that home, as a resident has dropped by the state from 7.2% for the last two years, I believe, and then 7.15% is the proposed for next year.
And so there's a slightly smaller decrease offset by the higher market value associated with that. So there's a much longer conversation we can have on that. As far as that with the state legislature and items like that. But overall we we don't have the option currently to adjust for that. So it's a smaller impact. $9.19 does a smaller impact offset by the higher market values, of course, associated with the properties on your assessments.
So it's 19 mills is a short answer.
Chuck:
We should have a longer discussion.
Eric:
Of course.
Chuck:
Thank you.
Eric:
You're welcome.
Robert:
And that's because of Gallagher correct? Correct. And I don't know if you have a short synopsis of Gallagher for everybody at home or if it's too in-depth to bring up here, but, just wanted to initially thank you guys to for all the work that you did for our, finance and budget meetings and, and the work studies as well.
And again, it's, refreshing to put a face to a name of Eric with a K and Eric with a C.
Eric:
You're most welcome. And we can certainly add that for a future work session. Item on that, because it's an ever changing discussion, as your attorney will attest to, the implications of the Gallagher Amendment and TABOR.
David:
So. All right. Thank you, Eric.
I would like to open up, the meeting. In the form of a public hearing. I think we had. Well, I'm not sure that we had anyone that was desirous of speaking up for or against the budget rates fees in the mil discussion that we just had. But I want to make sure that, those that are in attendance tonight had the opportunity to, provide a comment if they so like now would be the time whether you signed up or not.
I think this is Steve.
Describer:
The camera pans to Steve while Robert whispers about the budget.
David:
If you would, give us your name and address for the record, make sure you turn on the little button up there and your live.
Steve Packard:
Hi, Steve Packard, 70102 Western land. Just the first time I've looked at the budget, taken a glance at. I'm curious on a, water non-operating expense, $3.9 million. No longer in the budget for water line replacement law in Castle Pines Parkway, could we just someone just comment. What happened to the water line replacement there?
David:
Sure.
Steve:
Thank you.
Describer:
The camera pans back to the board as David gives comment.
David:
That was an that was one of a number of projected capital expenses that the previous manager, and board had contemplated. However, when this reform slate was sworn in and dug in to, that and other issues to look for the backup information, the data, that would support a capital expense like that. We couldn't find it.
Staff has done much the same, the backup information, the data that would support a capital expense of that nature, could not be supported. So we reached out to all of our consultants, our engineering consultants, financial consultants, those that we surround ourselves with, when we get into subject matter of this nature and certainly beyond our pay grade, we have, asked for their opinions in writing received same.
And in no case. No case, did any of them recommend that we move forward on replacement of that water pipe and Castle Pines Parkway at this point. It was a part of that exercise. Just quickly again, that this board, has is
Moved quickly towards a factual based, GIS, program that is going to enable us to, forecast those capital needs based on hard facts, based on, on time, on types of material nature of soil, the pressures and the age, that kind of a thing. And, and, while we have a significant presentation forthcoming, I think over the next 60 days in that regard before we actually, kick it off, the idea is to be where I'm talking about with regard to the data and the, backup information and the recommendations one year from today.
So that it would be incorporated in any of our future budgeting and, and rate and fee forecasts. Does that answer your question? Thank you, Steve, for that. I really appreciate you bringing that up. It, thank you. Yeah. Anybody else? All right. Thank you for that. I'm going to close the public hearing on the budget. It is with that that this, board, will consider item #13 approving the financial report and the items from the financing, or finance director again, he kind of, combined the two.
But I'm going to keep them separate on our agenda. If there is a colleague of mine that would like to make a motion, to approve the the, finance report tonight. As given by Eric.
Denise:
I'd like to make a motion to approve the finance report. The resolution.
David:
No.
Denise:
No?
David:
No, just the finance.
Denise:
Just the finance report?
David:
Yes, please.
Denise:
All right. I'd like to make a motion to approve the finance report.
David:
That'd be the finance report, for October. Do I have a second?
Chuck:
I second.
David:
We have a motion on the floor to approve October's finance report as given by the finance director. A second, all those in favor signify by saying I.
Board Voting All Speak:
I. Any opposed? Hearing none. Motion carries unanimously.
David:
I would like to, go ahead and have considered the draft resolution from council. That encompasses the adoption of the CPNMD 2020 budget, and the appropriate funds and and set mill levies.
Is there a motion on the that can be?
Describer:
Chuck asks if David wants the resolution to be carried as a motion.
Chuck:
I will read what I would recommend. I would read would I'm going to read what I recommend as a motion for this resolution. It's a resolution summarizing expenditures and revenues for each fund and adopting a budget, levying property taxes for collection in the year 2020 the to help defray the cost of government and appropriating sums of money to each fund in the amounts and for the purposes set forth here in for the Castle Point North Metropolitan District, Douglas County, Colorado, for
the calendar year beginning on the first day of January 2020 and ending on the last day of December 2020. That's the the motion.
David:
Thank you for that, Director Lowen, is there a second?
Chris
I second that.
David:
We've got a motion on the floor by Director. We have a motion on the floor by Director Lowen, seconded by Chris to approve the budget.
That was presented this evening. The appropriate funds and the sets. Mill levies. Is there any further discussion? Colleagues hearing? None. I'll take a vote on the motion. All those in favor signify by saying I.
Board Voting All Speak:
I. Any opposed hearing? None. Motion carries unanimously.
Jim:
Mr. Chairman, if I could add one piece to this, if I could, and this is more educational for the public who don't know this.
The assessed valuation that Eric spoke about a few minutes ago was based on a document we received from the county, August 25th. That's how the budget's put together. We will get it updated, which in essence is the final assessed valuation by December 10th. Assuming that number doesn't change whatsoever, everything's fine. But if that number changes, then it will be recalculated based on that final assessed valuation.
Just so we all know the the process that it works through. And so Eric will get that by December 10th at the latest. And then if he has to tweak some of the numbers in here and revenue based on that, just so you know that.
Thank you.
David:
Appreciate that. I think we had, some lengthy conversation about how that compiling factor, adjusts on an annual basis as well as the assessed value of the residential and commercial properties within the city.
And that as those are, given to us in finite, figures, we will incorporate them in our final budget. Final budget will be, has been adopted and will be posted, to the website in December. And the commentary associated with that should be available at the same time. Try to add some, some clarity to it in, in words, not just in numbers.
I'd like to move forward then, if I may, to item #14 and be the party of, this motion. This is, a motion to approve and, ratify the October 19th payables. These have specifically to do with the checks #24728 - 24787. These are the expenditures that we make from the general fund, and a total of $50,862.09 from our enterprise funds, $296,671.27.
And for all electronic payments, from all funds, $82,940.08 for total expenditures, in October of $430,473.44. Is there a second I second it I have a motion on the floor to approve the payables and, and to approve and ratify the October payables. Have a second. All those in favor signify by saying I.
Board Voting All Speak:
I. Any opposed? Hearing none. Motion carries unanimously.
David:
Item #15 would be the district manager's report.
Describer:
The camera pans over to Jim.
Jim:
Good evening. You've got my report in front of you. Not a lot of changes to it. I did have a meeting today. South Metro Water Supply Authority. Getting to know a little bit more about them. I'll be sharing some information with you down the road for our continued, involvement with them.
Any questions you may have, we've still got. Let me go back to the second page. We talked about the Happy Canyon outfall line. There's still stuff going on with that. That's what Chairman McEntire talked about a few minutes ago. I'm receiving phone calls daily. It's about we're getting ready to have some good discussions with them. So that's peaking, I should say.
The only other item that that I would have would be, obviously next week is Thanksgiving number one. Happy Thanksgiving to all of you and all of your families everywhere. I hope you have a happy one. And I'm going to be out of town. I'm going to go out like I told you a couple months ago that my, stepmother's house was hit by that tornado that hit Dallas.
And so I'm going to go down there next week, and spend Thanksgiving in the Dallas area. And thank you for allowing me to, to do that. So I'll address any questions you may have, if any.
David:
Thank you for that report, Jim. You're free to go.
Jim:
Thank you. I appreciate it.
David:
But not until the end of the week.
Jim:
I'll wait till late Friday to do, thank you again.
Describer:
The camera pans back to the board.
David:
You're welcome. Thank you. Next on the agenda is a consideration of the resolution regarding the ownership, maintenance and the liability responsibilities for private fencing that lies in periodic state of disrepair on the south side of Castle Pines Parkway.
Denise:
David, before we start, may I just make a couple of comments?
David:
Sure. Go ahead.
Denise:
Regarding, I know we have people in the audience regarding the fence issue, but before we consider, this proposed resolution, I just want to make a note. We've been on this board for about a year and a half and the fence issue.
Came up in our first meeting, and it's taken a lot of time and effort and specifically on David's part, he has worked tirelessly reviewing paperwork. He's gone door to door to meet with homeowners. About half of them have responded. And I just want to, give you a shout out for really putting your best foot forward on this and getting some real good public input.
And I think a, a very fair, hopeful resolution. I just want to say thanks.
Chuck:
I second that.
David:
Thank you for that. I really appreciate it. Let me give you a quick update. Though, before, this board contemplates, considering that, Know that, over the course of the last year and a half and I'm speaking to those not only in attendance, but those online as well that have a long history on this fence.
Ours began about a year and a half ago, and, it included a number of homeowners in our first year on or about Memorial Day, of a year and a half ago when the fence blew down and I met those folks down there, on that first culdesac. And, it was an elderly gentleman, and he was, couldn't be happier than I stopped by.
And, he wanted to show me the fence work that he and his son had had, taken care of. And it was, it was it was kind of funny. He said it was it wasn't as hard as they thought it was, because somebody had kindly stacked all the fence panels that had blown down in a pile.
And, I let him know that my now nine year old daughter and I were the ones that stack those up. About the time the community, was in an uproar over something or nothing happening in regard to those fence panels. And and so it's true. Been working on it for quite some time. But some of the homeowners, I mean, every single one of them that I have met, have made it, had made it, made it known to me that, they have addressed and are continually working on and watching over, the fence is a part of their responsibilities, their biggest frustration.
However, has been regardless of how many times I've walked over there personally, the certified letters, the emails, the voicemails, and again, another personal visit, to, the ones that I hadn't been in touch with, this last Friday afternoon or Saturday. And I don't recall, but, leaving again my business card or for them to reach out should they, wish to,
The majority of these folks, that I have had direct contact with in a relationship with over that period of time have just been confused about who is going to do what, to whom, when, why, where and how. Because somebody along the line had told them, and these are the folks who have been there for quite some time, that it was this obviously responsibility, or it was a master association's responsibility or even the city's responsibility, or they thought it was a metro district's responsibility.
And and having come across that, we did we dug deep into, the documents of record. I spent a great deal of time in personal conference with landowners, developers, these are original folks, builders, both on the residential side and the development side. Sales associates and executives that were are still living in that neighborhood that, actually sold some of those properties.
And the takeaway was, again, if someone would just tell us what the law of the land is or what the rules are, or what the instructions are knowing if all else fails, there's a place to find them and they can get some clarity as to what their responsibilities are. I shared with them disappointingly, that it didn't exist, but we were endeavoring to put that together.
And really, that's what this resolution is. It is a chronology of what is and what is not, referenced in recorded documents of record. And, unfortunately, in the absence of anyone, taking any direct action to enforce the organizational documents of these entities or, their design guidelines, we had nothing happening. We had a lot of folks with a lot of questions and, a great deal of anxiety, not knowing who might come knocking at their door next, including me.
But, that being said, I just want to give everyone, that's been party to taking care of the fence, without having the instructions. A thank you. I want you to let everyone know that of all of the people affected on that stretch of fence, I have personally communicated with a majority of them, and it has been 100% of that majority that is in favor of this resolution.
And, and, so, without further ado, I want to I'd like to just open it up to my colleagues for any final comments, questions or concerns before, pursuing a motion and then, on the resolution.
Chris:
Well, David, I'd like to thank you for all the effort you put into this and definitely did a lot of the footwork going and talking to all the residents and homeowners and making sure that this was a participative effort.
This definitely was one of those things where from the community perspective, we all see it as a sore eye or whatever you want to call it, because this is where everybody drives down. This is our neighborhood. So this is an attempt to essentially put some guidance out there as to how we will address any type of maintenance going forward.
But it also had to do with the fact that as the fence meandered along the way that go on the district, the metro district's property, and we needed to we needed to reduce the liability to the metro district so that in addition to the eyesore, is what led to this. So, I appreciate the fact that all the homeowners are responsive.
And, you know, someone actually took the initiative to go build their own fence or repaired a fence. I can tell you full disclosure, I am on the homeowner's association for the stone cross area, CPN too, and our homeowners association owns the maintenance of the fence. We paint it, we maintain it even though that fence is on the property and it is.
Let's be clear, the fence is the property of the homeowner and we've also identified that. But our homeowner, based on input from our residents, decided, I'm sorry. Our HOA, based on input from our homeowners, decided that we would, maintain that fence because it benefits the community as a whole and as a large. And that's kind of why we kind of pushed to have this resolution.
So I just want to thank everyone involved and hopefully we can put this to bed and everybody, you know, we can go forward and make sure our community just keeps growing.
Robert:
And I additionally thank David for going through because the previous attorney, that used to work for the Metro board, had a study on it and had an opinion. And David has gone through all of the legal issues and the books and the plats and the and everything. He's used to, being a builder, trying to figure out who owned it and whatnot.
And so he did a lot of studying, that the lawyers normally do. And so he can talk on that level with it. So I appreciate for you doing all that in-depth study as well.
David:
You're welcome. Gentlemen, I might add as well, that, I certainly do not have the capacity sufficient to represent the district by myself that I have surround myself, given this opportunity, knowing a fool would do otherwise with the likes of, the law offices of center and counsel here amongst, other offices, legal offices, and including, the products that the people online and the people here and all of us have participated at some level
of cost, right, wrong or indifferent to the opinions of other attorneys who I might add, if they were representing HOAOne or the master association said it's not our responsibility and offered no resolution, no resolve. It has been an ongoing conversation with the folks that are here, and some of the folks that I have a relationship established a relationship with, that they don't believe that this resolution is the end of the of the issue.
But rather they believe, as you said, Chris, that they need and want. And I've offered myself, I'm convinced that you folks or Mike, as colleagues would, would join me in any effort that they may make to get an audience with that HOAOne which has, has, has made themselves, disappear. We have we have tried for months to get them to be a part of a conversation amongst the city and the master association, when we and ourselves, when we thought that, that might be the right way to go about resolving it, in a roundtable discussion at a higher level and, and, with some problem solvers.
But, that didn't take place. But that being said, the folks I've been working with are not, comfortable moving forward, with the understanding that this is it. This is all we're going to do. So again, I've shared with them that we agree with the idea that the HOA needs to be addressed and the idea needs to be addressed with them.
It's an HOA of about 430 people. They've got an annual meeting coming up on Wednesday, and, they're looking for two board directors. I found out today. So, if anybody is looking for some, some feedback on how to put a slate of directors together and make some changes within an organization.
Let me introduce the reform slate. All of that being said, I've got another guy, gentleman guy. I'm sorry. Ben, I got this guy named Ben Lockett in the in the audience. He he to chose to, speak tonight. And he's a guy who had fortunate, privilege of meeting, over this whole issue. And while he is not one of the ones who is adjacent to the district's property that has this dilapidated fence issue, he has been a productive, positive inspiration for and, and voice in this, whole fence issue.
He is a, proud residence of Castle Pines North and, and a real inspiration to hear at times. So if you can get through his, his, British or British accent, it's kind of cute, too. It's he can be entertaining. And I think it's with that, I'd like to ask Ben. You want to speak? You ready?
Come on up
Ben Lockett:
Board members of the public. David, thank you very much for giving me the opportunity to speak tonight. Do I need to say my address? Yes, please. Oh, 8183 Briar Ridge Drive. I've been a resident of, of this neighborhood for about, 18 years at this point. And I drove past. I drove past this fence like it, all of you, pretty much every single day.
And I, like many people, drive past it and say it's just a fence. And you would have thought that fixing a fence, whether it be painting or replacing or whatever you want to do to it, would be relatively simple. Alas, my understanding is that the dilemma of the fence actually started before I even. We even moved to this neighborhood.
And it has cost, I don't know how many thousands of dollars in terms of legal fees by both the metro district and the city and the master association and maybe HOAOne, I don't know. And I and I shudder to think at what we could have done with that money. We could have had a massive impact on this community with that, with the amount of money.
No offense. Who's the attorney? Yeah. No offense to any attorneys present. We could have done a much better job than funding your cocktail bill. No offense. Again. And it's ironic to me that this afternoon, we received a letter from our HOA association, telling us that our butterfly bushes need to be cut down in the fall and not the spring.
It's ironic to me that we are here dealing with this work going on at the junction of Castle Pines Parkway and Monarch. It's costing the city and everybody else goodness knows how many thousands of dollars. It is ironic that I sit here and I listen to you guys talking about fixing the roads so we don't get debris on it.
And all of these things are there in order to, you know, all these entities are designed to do a number of things. One of them is to make this beautiful community stay a beautiful community. Number one. Number two is increase. Continue. Was listening to the increase in our property values which have. So let's continue to do that. And when it comes down to spending I don't know 20 grand on a fence, it is ridiculous to me.
And it is an abject failure of local government as far as I'm concerned. And not a not only a local government, but a local government that we all fund. And, that is, it really annoys me, frankly, when I get a letter about cutting down a butterfly bush, which, by the way, is going to expose all the, junction boxes in my right by my house, which is even more ugly than a dead butterfly bush.
And I'm sure that my grass is probably two inches too long or something like that. Anyway, that's for another conversation. Anyway, I understand the concept of precedence. I understand the fact that that's one of the main reasons here. Why this has taken so long. 20 years is extreme, but I understand that it's taken a, you know, longer than it should because of precedents.
But, you know, for the record, the 3 entities that make up the local government here should have all got together and split the cost 3 ways and got it done 15 years ago. The fact that we're here in 2019, when this probably started in 2000, is, is ridiculous to me. Anyway, I've made my point. David, thank you very much for all the work that you've done.
It is, telling that it took all that heavy lift at the end for someone like you to take the leadership role here and get that done. And, if anyone's listening online, I'd also like to make the point that getting angry on next door does not solve a problem. It is, it is futile in the extreme to whine on next door.
Nothing is going to happen. It is like someone said, and I'm probably going to get in trouble for saying this, like peeing in a wet suit. It feels good while you're doing it, but it achieves nothing. So with that being said, I really hope that this resolution is an opportunity for us all to move forward and get past this ridiculous impasse, and move on to something way more important than fixing a fence.
Thank you.
David:
Thank you. Ben. We've got, Donna and and Steve Packard. Are you still in wave?
Describer:
Someone from the audience responds. The camera pans to the right for public comment.
David:
Okay. Thank you for coming. Really appreciate it. Scott Adele or Scott Handle. I'm sorry. Scott Andle. Scott.
Scott Andle:
Well, first, thank you for letting me speak on this issue. David was kind enough to meet with my wife and I, recently and discussed the fence issue. The reason, it's a little unique for me. I lived in... or I've lived in Castle Pines for about ten years. Lived along, Monarch Boulevard.
For nine of those years. Moved into our current house, which is along Castle Pines Parkway, with the fence, just about 4 months ago. So this, has become very important to us, and it's not something that we knew was a huge issue. Honestly. We had our previous, home. Our fence was along Monarch Boulevard.
It was fixed, maintained, repaired by the HOA. Like, we had, done at Highlands Ranch and at that place as well. You know, we get notification after living in our house for about 2 or 3 months that this, fence is a big issue and, and maintenance and or, painting or replacement could be required, obviously, when, you know, you have 100 and 2050 feet of fence, that turns into a, you know, ten, 15, $20,000, issue in a hurry.
I appreciate the fact that the district is, Becoming, responsive to the citizens in Castle Pines by speaking with the master association with by reaching out to HOAOne, which, from reading and talking to people that know more about this, it seems like the gentleman just said that there's been a, an inability to fix the problem or come up with a solution and coming up with the solution right now is what we need.
Again, just moving into this, this neighborhood and come across this situation. Obviously, I understand the district's position about not being in the fence business and, and, wanting to get rid of potential liabilities, etc.. Obviously on the other side of the fence, so to speak, getting an easement for a fence that, gets deeded over to us, while has some positive effects for us, also creates some, some negative effects where, now we're going to be potentially responsible for maintenance, replacing fences, etc..
My understanding is HOAOne has had a hard time, coming up with the solution or taking any, taking any responsibility for that as well, which is a different meeting that, we'll be attending. So I guess my, my, statement to the board is that, we understand some of the responsibilities, that you guys have, but, you know, taking on this, this easement and this new, fence issue, is a is a big amount to us.
I'd ask for some type of consideration, some type of ability for us, if not to delay this potential issue and allow us to go to the, you know, either the master association or HOAOne, word of what? Wherever that entails. And allow us to try and find a future solution. That's that's what I would request the board to consider.
And, and I think, again, David, thanks for reaching out. Appreciate, your work and trying to come up with the solution. We're very interested, obviously, in this resolution, and we're hoping that the board not only passes this resolution, but, comes up with a way to, you know, treat a new person in this neighborhood with some type of consideration, some, some ability to make this less than a 45-day fix for my wife and I.
So thank you.
Describer:
The camera pans to the left and pants back to the right to focus on the next speaker.
David:
Thank you, Scott. Appreciate you. Jim Clour
Jim Clour:
Welcome. Thank you. Appreciate the opportunity to speak. And, David, I do appreciate all the work you've done. And to get to this point, although it's taken, what, 20 years, I guess I am in kind of alignment with Scott. We're both part of HOA. I didn't give you my address. I own the house at 7464 Berkeley Court.
I also own the house at 7355 Shorehem Drive. Both houses are in HOAOne. HOAOne. And, I kind of vaguely monitor the situation since I don't live in either of those houses. But I do own the properties of both. And I guess I think that I want to kind of align with Scott, that I understand what you're doing.
We have a we're we're we're pursuing a different course of action that might hopefully lead to resolution. There's two open spots on the HOA board. We're going to try to see what we can do there. And if we can get on there, maybe we can make some changes. Because I'll just tell you, my personal belief is all other districts here, all other HOA fees, take the responsibility for those types of communal structures, whether it's a little building, a fence, a lighting or whatever they take responsibility for that.
For whatever reason, HOAOne has not taken on that responsibility, and your resolution essentially takes the responsibility for that fence, which none of those homeowners put in, none of them authorized it. It gives them the responsibility to replace and repair that fence at their expense, whereas the entire community really benefits from that fence. That's the marquee to the entrance to Castle.
Tonight's bridge, and is the first thing that people see in coming to that community. And now you want a place that you're going to let somebody else designate the type of material, the height, the color, all those designations. But yet you're going to give the responsibility for the financial responsibility to somebody else. Does that sound fair? Does that sound right?
I don't think so. That's just my opinion. And I think that the HOAOne should step up and take care of this, whether it's through a special assessment or whatever the case may be, so that it's done once and forever and that we can move and, and, and take care of this in a rational manner that all the other 20 odd HOA's take care of in Castle Pines North area.
That's just my perception of it. And I and I know I'm missing some probably some of the facts, but I don't think it's it's just our right to say, especially a new homeowner has been there a number of months. So, you know, you can vote for this. And yes, the metro district's going to paint it. But I and that's a good thing.
And we do appreciate that, no question about that. But the thing is, what good is painting, right. It would when the, when the next big win can blow it over, that just kind of waste the paint and so forth like that. So I recommend kind of a delay to give us a little bit better bearing to see where we can, what we can do with HOAOne and get them to take on their just responsibility, because they should be the responsible for this fence.
Any questions for me? Thank you.
David:
Thank you. Jim. Is there anyone else that I've missed seeing and hearing? None. Let me just respond quickly.
Describer:
Scott says that he has a comment.
Scott:
I hear exactly what gentleman exactly what you're saying. I think in terms of a time frame of some kind, you've just moved in that totally right. But in terms of going back to HOA, one to me makes absolutely no sense whatsoever. From what I understand, that has been one of the biggest challenges to getting this thing fixed. And I don't know if you gentlemen know the history here, but I know that many members of the community of the local government have reached out to HOAOne and have had not just bad response, but zero response.
And if we go back, if you go back and this now, we're now reliant back on HOAOne again. We're going to be in exactly the same situation this time next year. I guarantee it. So in terms of extension, I think that's a sensible thing. But in terms of going back to HOAOne, I think it's a it's a terrible idea.
Thank you.
Describer:
The camera pans back to the board. Scott returns to his seat.
David:
Okay. Let me just say that. First and foremost, it's a it is a byproduct of not only the effort of this board, but, the stories and the accounts and the notes and, and, these presentations, your cooperation and, cooperation, that in conversation with my colleagues, they have, insisted that,
That as a part of any motion to approve this resolution, that the district, to address that issue of equitable illness amongst especially the folks that like Scott, and there's more than Scott and his wife, that we have met with who are recent homeowners. And as much as I shared with you, this is a byproduct of of two banker boxes filled with legal documents that are all or record, they can attest as new owners.
It showed up nowhere on title. Or they would known and had an opportunity to include that in the consideration to buy the property. So as a part of that, it was a part of this resolution. Two things you have to know. Not only is this going to be recorded, so that this never happens again to any of the new folks.
But in light of, of the fact that this, this feels like one of those unexpected closing costs that nobody budgeted for, nobody left their job. And, a week earlier to be able to afford or not afford. And so there's that feel, the feeling of an equity and like a gut shot, if you will. So my colleagues have been, pushing for and, and we have come together on, on, on the following.
I would like to, make a motion tonight to adopt this resolution. #2019-01 as it has been presented, to all of the folks here, the folks that may be viewing in online, those that have seen it on the website, those that have seen it, here at the last two months in, in meeting form, with one condition and that that condition include, the willingness on the district's part to do the two things that were brought up.
One, paint the exterior of the fence completely at 100% of the district's expense.
And two, show that and. No one's given me permission to say this. But of the folks that have spoken tonight, they've all shared with me. I think I said before, but these folks specifically, if it wasn't Jim who takes care of his fence with screws and not nails, and others who have replaced posts and are considering it and already budgeting for a repaint next year, etc..
I think you can imagine how big an issue this is and can be, as has been articulated, but the district wants to pick up 100% of the cost of painting it, but wants to do it quickly so that the window, the door to our community is dressed accordingly. We have extended, the, the provisions that are outlined in the approved design guidelines, of this city, which calls for action upon notice within 30 days.
We've extended it to the end of the year. If there are compiling reasons. Otherwise, you know, where we live, but we too are on board with, and been. I know that we all we have to do is call you in, and if we can get a meeting with HOAOne, I know you're in, but we're going to try, right?
So, we've extended the time. We're going to pick up that painting cost. We'd like to have this fence dressing. If you're well taken care of by the end of the year. That's all reflected in the resolution. And,
If there's no other conversation or is there a second to the motion?
Chuck:
I second it.
David:
I have a motion on the floor to approve resolution #2019-01 relating to the Castle Pines or the, clarification of that certain privacy fence and ownership maintenance, replacement liability responsibilities within Castle Pines North Metro District, Douglas County of Colorado. Keeping in mind that this does set a precedent, this does, address any and all fences that may have inadvertently been built on on metro district property with adjacent private homeowners.
It is all encompassing. Is there any other comments, questions or concerns of the board before I asked for a vote on the motion? Staff?
Kim:
Mr. Chairman. I would like to add, to the end of this, a legal description of the district, and I would propose you don't need to change your vote, but at the end, I would just add something that says, legal district, legal description attached and then attach that legal.
Otherwise the title company is not going to pick this up.
David:
Great suggestion. Thank you so much. It has been heartbreaking that, we have those stories. I didn't know I didn't, and, it is a major expense, so, I have a motion. I have a second. There's no further discussion. Signify your, support for same, by saying I.
If you're in favor of all those in favor, say I.
Board Voting All Speak:
I. Any opposed? Say nay. Hearing none. Motion carries. Resolution carries unanimously. Thank you. Everyone online in the audience.
David:
Let's go to director. You're too late. Go ahead, Jim.
Jim:
This is great. I'm glad for it. But I do need to. And I don't want to throw water on this. It may be difficult to get someone to stain this fence in December. January timeframe. In coming up and helping Chairman McEntire get some costs and stuff involved, I visited with a couple of them and they don't stain outside really during the winter.
Be honest with you because no matter what the stain is, they say if it gets below freezing, it brings off like soap coming out. So the timing of that is the only thing I want everybody to be aware of. Because if you can't do it right, you sure to want to do it and then do it again. So we'll work with the timing of all of that.
I think this is great what everybody's doing, but I just don't want someone to say there's going to be somebody out there spraying when it's snowing Thursday afternoon.
David:
So let me let me address that. In the resolution. It the next step is that and council is working on the appropriate easement, which is going to be an easement in favor of not only the owners, but also is going to mention HOAOne, in the event that we get their consensus and participation at any level, and not always will an easement come with a notice, but if there is a violation or a liability that is brought to the attention of
this board or staff, a notice will be sent to the owner, within the design guidelines and within the master association documents. Those were the those were the the documents and the parties responsible for enforcing a 30 day provision fix in fix or replace provision. We did not adopt that 30 days in the initial motion. We took it to December 31st knowing that there was some seasonal issues here.
If we have to extend it, for the portion that the district is going to pay for, which would be the staining, everyone will understand. But that easement and that notice will be coming out to give everyone a chance to make sure that that fence is not in disrepair, rotten, or is something other than what they wish it to be when it is painted.
But we will paint it, as quickly as we possibly can, if not on January 1st, as quickly thereafter as we can.
Does that make sense?
Jim:
Absolutely. Just. Yeah. But just so everybody knows, you can't be spraying in January, you know it. And it's not necessarily the daytime temperature. It's really that the nighttime or the big drops down below freezing, which is going to do easily December, January, we'll make sure we do it right.
David:
It’s the north side facing fence which is going to compile the issue,
Jim:
You bet.
David:
But again, we want to make sure that we've given everyone, ample notice that we've given them the tools to succeed. We're going to participate on the finish or the icing, if you will, creating that level of equitable, feelings that we hope will harmonize the community as opposed to separated, as it has been for so long.
If that answers your question, thank you again, colleagues, for that. We're going to move on then to Director's Matters item #17.
Robert:
Yes. Real quick, I'd like to say it's going to be 68 degrees tomorrow. Does anybody, everybody here we need to get a resolution and this done. So, who's with me?
Describer:
David discusses with the board to cancel the meeting on December 2019.
David:
Colleagues, I would like to, ask staff and our consultants, that are present and my colleagues, if there would be any objection. Given the progress that we've made this evening and a number of, of projects, deliverables, that we have before us over the course of the next 45-60 days to accomplish, if anyone would object to, my making a motion to cancel, the December meeting of 2019, are there any objections from anyone?
Chuck:
The only question I have is again, is there anything undone that needs to be approved before the end of the year? From a legal standpoint?
Describer:
The camera pans to Kim.
Kim:
Now that you've completed your budget resolution, Eric and I can take care of certifying the taxes. And, she should be done for the year.
Chuck:
Eric, same question with you. With the budget now needing a little bit of manipulating before the end of the year is or anything, we need to approve or revisit?
Eric:
No. There's nothing. And what we adopted tonight was subject to the final revenue changes associated with any changes to the assessed valuation in January. We will come back and consider the final, proposed rates that were presented this evening and then that at that time that will go into effect and effective for the first week of February.
The bill for the January usage.
Chuck:
Can you join us in January? Erik with a K?
Erik:
If needed.
Jim:
Yeah, well, a lot of communication between now and then, but just. And that date is the, 20th.
David:
Anyone else? Any other directors matters? So if everyone is in, agreement, we will cancel the December meeting as and ensure the, published notices or are made of that cancellation both online and physically, as we talked about earlier, sooner than later.
And, we'll, I want to join Jim in, wishing everyone happy Thanksgiving to those out here in the audience and online. Happy Thanksgiving to everyone. Merry Christmas, happy new year. Happy New Year, and we'll see you in January. It's with that that if there are any other folks that would like to be heard, I don't have a record of.
Same for the final public comment period. Seeing and hearing none. Moved to item #19, which is to adjourn this meeting. Is there a motion to adjourn?
Board Voting All Speak:
I'll make a motion to adjourn this meeting. Seconded. All those in favor signify by saying I. I. Opposed? Motion carries unanimously. Thank you again.
Describer:
The Directors are asked not to leave until they have signatures from everybody. Video fades to black.