September 21, 2020 Video Board Meeting
Transcript
Describer:
AGENDA
Board of Directors Meeting
Monday, September 21, 2020, 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 September 21, 2020 board meeting agenda.
4. Consider August 17, 2020 board meeting minutes.
5. Special thanks to Stonecroft neighborhood residents, Marilyn & Blair Marsden, for their exemplary leadership and volunteerism. This conscientious couple were recently spotted early one morning washing graffiti off facilities in Coyote Ridge Park.
6. Opening public comment period (three-minute maximum per person).
7. Project updates and insights from the City of Castle Pines’ designated liaison to the CPNMD board of directors, Councilwoman Deborah Mulvey.
8. Open Space Manager’s report.
9. Finance Director’s report.
10. Consider approving financial report and items from Finance Director.
11. Consider approving and/or ratifying payables (check numbers 25451 – 25516, between August 6, 2020 through September 9, 2020).
General Fund and Debt Service Approve $20,565.40 Ratify $98,599.12 Totals $119,164.52. Enterprise Fund Approve $135,737.59 Ratify $347,985.83 Totals $483,723.42.
Electronic Payments Ratify $357,136.73.
Total Expenditure $960,024.67.
12. Legal Counsel’s report.
a) Status of CPNMD’s negotiations with the Parker Water & Sanitation District (PWSD) regarding possible water & wastewater utility services and systems unification.
13. District Manager’s report.
14. Directors’ matters.
a) CPNMD’s maintenance and water metering of city-owned land.
b) CPNMD’s maintenance and water metering of neighborhood-specific entryways.
c) Costly graffiti, vandalism, and trash plaguing Coyote Ridge Park and facilities again necessitate consideration of mitigation strategies, including:
1) Possibly removing the skatepark from Coyote Ridge Park and replacing it with one or more amenities (like pickleball courts) that would appeal to a more responsible, less destructive demographic, while appropriately activating and enhancing the park experience for all residents.
2) Possibly erecting one or more strategically-positioned, concrete walls designated for street art and/or graffiti murals as a more constructive, less damaging outlet for taggers and graffiti artists.
3) Possibly strategically positioning video cameras and/or hiring off duty sheriff deputies to nab the perpetrators.
15. Closing public comment period (three-minute maximum per person).
16. Adjourn.
Describer:
The video starts on graphic with a white background and forest green letters which says “Castle Pines North Metropolitan District September 21, 2020”. The meeting opens on a shot of all board members present.
Board President David McEntire:
I would like to call to order the regular meeting and ask my colleagues and those in attendance online and here to join us in the Pledge of Allegiance.
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:
Thank you. You sounded beautiful. I'm going to conduct roll call to establish a quorum. When called upon, please indicate your presence, and disclose at that opportune time whether or not you see any potential conflicts.
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:
Director Lewis. Present. No conflicts.
David:
Very good. Director McEntire is here. Quorum has been established. Items three and four are, consideration by this board to approve the September 21st, 2020 board meeting agenda as well as the consideration of the August 17th, 2020 board meeting minutes. My colleagues and I have had ample time to review both, working on them, together, and presenting them tonight.
Are there any additional comments, questions or concerns before we pursue a motion to approve items three and four? Hearing none. Seeing none. Is there a motion?
Chuck:
I'll make a motion that we accept the board of directors meeting agenda for Monday, September 21st, together with the regular meeting minutes of August 17th, 2020.
David:
We have a motion on the floor to accept items three and four. Is there a second?
Robert:
I'll second that motion.
Board Voting All Speak:
We have a motion to approve the minutes and the agenda by Director Lowen, seconded by Director Merritt. All those in favor, please indicate by signify by saying I. I. I. I. I. And saying nay for any opposed. Hearing none. Motion carries unanimously.
David:
Item number five and without further ado, we have in our audience this evening, a couple residents from the neighborhood of Stone Croft. Now, the thing about these folks, that go by the name of Marilyn and Blair Marsden, they have been seen or spotted, early in the morning washing the graffiti off of facilities of ours, in Coyote Ridge Park.
Now, some might seem that to be a bit peculiar, given the fact that they reflect potentially an age that would not be responsible for putting the graffiti in place. But rather, it was later found out that these this conscientious couple were exemplifying leadership, exemplary leadership and volunteerism by helping to protect and preserve the quality of our parks and open space, by taking upon themselves and shouldering some responsibility to remove the work of a few. When, tagging and placing graffiti on the skate park and other amenities within the park.
It's with that that we want to do give you folks a hearty thank you from the district who is responsible for and and does take that responsibility, not only sincerely, but seriously. And and it's folks like you that make it all worthwhile. We have a staff that will do that, we have paint that we can use.
But we've believed and have talked about it many times that this is a, a public issue. And as I mentioned earlier, an issue of the few and not of the entire community, but the resolution, is truly going to be and is on the backs and the shoulders of of all of us and for you folks to lead in that regard.
Again, I want to open it up to my colleagues, to share with them, to share with you folks how we really feel, before wrapping it up and and allowing you to, to leave here after if you don't want to stay for the rest of the meeting, but, thank you. Thank you so much for what you've done so far.
You, I'll just say one more thing and that is, in consideration of all that you've done and how you did it, the staff is taking it under consideration and have begun a conversation about making this a annual event. And, and, and, but quarterly a little more often than just on an annual basis and, and, or offering to manage the event, sponsor the event, participate in the event. Not only from an information point of view, but from a, a products and material, needs basis and manpower basis as well.
You'll hear more about that as it as it comes together. We're currently trying to formulate a, a cleanup, as it were, for the, into the four or into the third quarter going into the fourth quarter of this year and quarterly here and after. But it would be something that would be a program that's permanently laced within our website, along with the information on, on, on the menu there in and available to all residents to participate in but something that would be, at least financially shoulder by the district. Thank you again for outstanding leadership and providing an exemplary example of of what it, it means to be a community. Colleagues?
Describer:
The board gives a round of applause to residents of Castle Pines, Marilyn and Blair Marsden, for their efforts.
David:
I didn't mean to just invite my colleagues. If you folks would like to have, few words to the board or to those that are viewing online, you're invited to go to the podium and, and, share with us your name and your address and any comments you would have as well. Why you are contemplating that big step, my colleagues, I'm sure, have a word or two they'd like to share.
Describer:
Marilyn Marsden, a Castle Pines resident, 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.
Marilyn Marsden, Castle Pines Resident:
I thank you, I appreciate the opportunity to discuss the topic that's close to my heart and attached to my safety and pocketbook. We moved here 11 years ago because this community was beautiful, clean and safe and wonderful schools. People moving here still want those things but the last few years, I have seen an increase of crime and vandalism.
It may appear innocent to some to see some graffiti, but let me share with you my experience while we lived in Arizona. We moved into a beautiful, clean city, Glendale. Here are a couple of observations. Graffiti brings with it many different things, it's a signal to gangs and vandals to mark their territory. What we found is that if graffiti is removed immediately, they would get discouraged and stop or move to another location.
In fact, the city gave volunteers five gallon buckets of paint and supplies to paint over the graffiti, which we did almost every weekend. Because the action started too late the result was that good people moved out and property values decreased. In the last few weeks, my husband and I have been spending time cleaning up graffiti and trash in our city.
We found drug paraphernalia, paraphernalia, burn spots used to prepare their drugs, smoking paraphernalia of all kinds in the dry weeds which could possibly start fires in dry conditions, and a lot of alcoholic beverage containers. Drunk or high youth may do things that they would not typically do when they're sober. Drugs also bring with it a need for more money, hence more thefts.
The skate park has been a gathering place for these things. There has been talk, getting rid of the park. I really hate the thought of that. But one of the things the problem is, is it's in a very remote location. If you have a skate park, it needs to be at a very obvious location that people driving by can see, so that they can see if anything's happening.
I know the youth enjoy it. My grandchildren are some that like to do that also. However, if it is removed, I would love to see tennis/ pickleball courts put in their place. You can do tennis and pickleball on the same court, and have a net that lowers and hires, and be able to play both types of things. And these type of activities bring a different environment into the city.
I suggest creating a quarterly Saturday morning Castle Pines Cleanup day. That would include the City of Castle Pines and the Metro District. I figure we would have so many volunteers, we would be able to clean up the entire town in one day. If each made a list of areas and things that need to be done, the city would be cleaned up and nothing flat.
The youth in the schools need service hours. They can't find them right now because they can't go into buildings. They could do it outside. Families can work together. Families of all ages can take pride in the work of cleaning up their city together with many hands, where it can be made light. As citizens of Castle Pines, we need to take responsibility, clean up messes we or others, make report crimes, basically watch out and care for each other. The love and kindness of those who live here is one of the things that drew us to this wonderful city. Thank you for your time. I'm Marilyn Marsden, 731 Stonemont Court in Castle Pines. Thank you.
David:
Thank you Marilyn. Again, we really appreciate, thoughtful manner by which you, and your husband are shepherding over our community and and, as I indicated earlier, we would be happy to join you in at least a quarterly clean up. And as we rally around the idea and we put those details together, I'm sure that, that you wouldn't mind if we were to reach out and ask for some additional comments and concerns that you might have so that we don't miss anything and take advantage of the momentum that we're building.
It's, it's very humbling to be with folks like yourself. We would like to also, at this time, give you, the district would like to give you a small thank you, for your hard work. It's only just begun and so maybe this will incentivize others to get involved. Not the gift, but the the rally cry that has begun tonight and with your actions and again, we appreciate it. You come grab this.
Describer:
Marilyn approaches the board and accepts a gift from David and then takes her seat.
David:
Blair.
Describer:
Blair Marsden, a Castle Pines resident, approaches the podium.
Blair Marsden, Castle Pines Resident:
We got extremely lucky because over here on the behind fajitas a fire started. We came within 30ft of a building on that issue. And so we're going to need to enlist the assistance of the county sheriff from time to time to make sure that that spot isn't used too frequently and we don't endanger the citizens of that apartment complex. It didn't happen this time, so I'm grateful for that but it's certainly easily done Thank you.
Denise:
A quick, quick question. Do you know how that fire was started?
Blair:
We can only guess because we weren't there. We were there the next morning to clean it off the walls, but, because they marked it. But it was obvious that there had been, some heat applied to some paraphernalia. Okay. And from there, you can guess what happened. I'm not a professional at that, so I can't really tell you that that that's what happened but it looked like it. Yeah. Thank you.
Describer:
Blair takes his seat.
David:
Yeah, let me just. I appreciate you connecting the dots to what the issue at hand is here and without getting a are too far off subject. In speaking with the chief of which we have superrelationship with those first responders here in the city. And of late, a great deal more conversation than otherwise might be, because the district has been focused on rolling out a drought plan, that, believe it or not, there's a correlation between drought and fire.
And given the fact that we live in a forest, Black Forest specifically, we have, believe that there is an opportunity to communicate with the with the residents visually 24/7. With hardly any effort whatsoever by virtue of a of a graphic, a a graphic message messaging board that was designed in part with, the cooperation of South Metro Fire Department, anchored by the nostalgic Smokey the Bear.
Believing that as, folks come and go in the community with, whether it be to work or to play. If they were to see that information, much like the example that you gave work through regard to the graffiti and how important it is for it to be erased immediately. The visual impact of these things that we do and or allow or that exist within our city carry a huge amount of of, of weight when it comes to what we think about of a day. And, and and if they're, if we're interested in, shouldering the responsibilities of our own land as we should.
And we recognize the fact that we're in a forest and that we're in a city and a community. Of course, we're not looking for graffiti, let alone, the burden of and the cost associated with eradicating that of the actions of the few or these force, these fires that could be, preempted by preemptive types of, of information. But convenience really is, is, the name of the game and a part of our drought program.
We look forward to sharing more about that with you. In the meantime, that fire, according to the chief, was caused by a flat tire, on a vehicle along the highway. But he he was, he was grateful that it was contained and and shared with Jim and I, a number of others that the rest of us don't know about but it is in our neighborhood, including the 600, some acre fire, there just to our, our west. But, I hear you loud and clear. Again thank you. We'll be in touch and look for your your participation and seeing you around more often. Thank you.
Robert:
Also wanted to say thank you, personally, not just, for your labor, but also bringing the awareness along that's going to come with this. That is just awesome and we share the same neighborhood as well. So I want to personally thank you. And, I really like your ideas about maybe not shutting down the skateboard park, but maybe, bouncing off everyone else to see where we could put it, where it would be more, more accessible for viewing eyes.
That is a great idea. And especially, and bringing teenagers in, letting them put their volunteer hours, that was excellent as well. So, the pickleball courts and tennis courts are right up there as well. Excellent ideas. So thank you very much.
David:
We are going to close item number five, and move to item number six. We had a sign up sheet. And while, Marilyn, you and Blair had indicated that you wanted to address the board, I'm guessing that this might be something you've already done. It's not that we're hard headed. Sometimes it's right there in front of us and we can't see it.
So if you want to see it again, you could. I'm just speaking for myself my colleagues are not that way. And they'll tell you that. All right. Very good. This is the opening public comment period. Three minute maximum per person. We have, as I said, we had Deborah Mulvey of the city and Marilyn and Blake, Marsden that signed up.
If it's okay with you, Deborah, we're going to close the public meeting section of it, because we've given you your own special time on the agenda. Right. Let's close the public comment period, item number six, and open up item number seven. This is Deborah Mulvey from the city of Castle Pines, with some project updates and insights from the city. She is the designated liaison to the district Councilwoman, Deborah Mulvey. Welcome.
Describer: City Council Member, Deborah Mulvey approaches the podium.
Deborah Mulvey, City Council Member:
Thank you. The there's a several updates. I first want to thank the Marsden’s I know they just left. Coyote Ridge Park is in my district, and it's also in my HOA on which I'm on the board, and it's within view of my home, and I really appreciate what they've done. I've been talking with some of your staff periodically, and I really appreciate their attention to what we've observed and what my neighbors and residents have observed.
Residents in my HOA, I should say. One of the suggestions that I would like to highlight to continue the conversation from Director Merritt is the idea of motion sensor lights, because what we've observed in the evening and what residents in the vicinity have observed is that most of the activity that's problematic is at night, and there's no lighting there.
And, the gates, you know, I understand that they can be broken, but the motion sensor lighting can take the place of more frequent patrols, and it might be more cost effective. And would I would like to propose is the cost sharing because, frankly, I know how much the lighting would cost at Elk Ridge Park, but it's a community issue in my view.
One of the things that I've stressed, both to the Douglas County human needs folks, as well as to the school district for which any is on there to, and to the city folks, is that I think what we're seeing is that we have a lot of youth who don't have activities. Because of Covid, shutting down a lot of activities and shutting down a lot of school things.
And so they're looking for things to do, and they have nowhere else to go and so it's increased what we're seeing. So if, you know, we might you know, the cleanup day would give them something to do obviously. But we're not going to get rid of the problem. But if we can put in something like motion sensor lights, that would be cost shared, that might solve the problem. And if we can find a grant through something like Denver Regional Council of Governments or through the county, maybe that's a cost saving solution. So I'd like to work with you to pursue that, because there's got to be a solution. And that's what I'm interested in finding a solution, not, you know, just, who does, who's responsible for what kind of thing? That's not the way I function. So thank you.
My understanding about the costs for the fire behind Las Fajitas is that it was caused by a back fire or a tire blowout, and that the fire went up there. But I will inquire as to what was seen on, you know, from a, arson perspective. Because there is that issue from a fire start perspective, cause and origins.
So I will require as to what the Marsden’s observed. I want to also thank you for your attention to the gardens on the other side of Catturato Drive. I understand some attention was put to that. That's in my across from my neighborhood and my HOA. And I want to thank you for attending to that. It's seen some issues, probably because of irrigation and drought, but I want to thank this body for attending to it.
But one of the biggest issues that we're considering, and I will get to the elephant in the room and that's ballot measure 2A and the road tax. I want to address the fact that the county has seen a slight uptick in Covid cases. You're going to hear about it. On September 15th, 16 and 17, there was an increase in incidents.
And on 16, 17 and 18 an instance of test positivity. Those are weird statistics. There's all kinds of ways to measure things. We have a county call every Tuesday at 11, so we'll hear more about it. Anecdotally, it may be related to an outbreak at one of the Parker High schools, where that resulted in a huge increase in testing and quarantining.
There's a lot going on with the school district and with concerns about increasing incidence as a result of what's going on with increased activities. To put it in a nutshell, the numbers already started to go down and they didn't go up that much. So the magic number for keeping us in the restriction rate that we're at, we are in the new dial, safer at home.
We are in level one blue, which for gatherings is 25 limit people and, restaurants and such is 175. The to change that to level two, you would have to go into a metric. For example, one of them is test positivity at 5%. So for example the three days in question went up to seven. And now they're back down into the sixes for yesterday and today.
So we expect it'll go back down again. It may have just been a little spike because of that school, but I you probably want to know about that as a body and to share with your community. The next thing that's a big concern is the Gallagher amendment changes. I know that there's a fair amount of concern on your part because of your taxing authority status.
And the mill levy that you have, as well as we are going to have in addition, if we have our ballot measure passed. That ballot measure would be to repeal the Gallagher amendment, which would effectively freeze the residential assessment at 7.1, which would prevent it from lowering to the 5% range. And thereby, change the ratio of property tax to commercial tax and let the legislature have a little more control after the four year freeze is over.
That's the nutshell. It's more complicated than that. Essentially, it would to the effect of the city tax would allow property taxes for the city 4.5 to potentially eight mills lower to the effect of about $50. So it wouldn't be a huge effect. I think for your mill levy, it might be a different figure, but it probably also wouldn't be a huge figure if the repeal were to happen.
It wouldn't change the commercial values. What it would change is the ratio of tax burden as between residential to commercial, from 1 to 4 to 1 to 5. So the reason I bring this up is because the city council, there was a proposal for the city council to take a position on whether to support or not support the ballot measure.
And, there will be a discussion on that. I'm free to discuss a personal view on that, but the city has not taken a position on it yet, and it may not. The next thing road ballot measure ballot 2A. So I want to thank you first for the overture for performing your planned maintenance project under Castle Pines Parkway to replace the pipeline.
I know that that was on your project list a couple years back. I brought it up a couple times about whether or not that was something that was still on your project list. It does make sense to me, as it always did, for that to be performed in conjunction with the city's plans to do our pavement. And we were not yet ready as a body to bring that to the voters.
We are now. And so I appreciate the fact at your body is now prepared to coordinate with us. And I understand that your staff is having those discussions with our staff. It makes sense and so thank you. To get into the the detail of our ballot measure, there are a lot of considerations, and I know most of yours will be questions.
The detail is that it will be a bond for the engineer's estimate of $30 million. The engineer's estimate is 27 million to cover solely Monarch and Castle Pines Parkway work. It is limited only to that work in the work, which is incident to those roads, namely the roads themselves, the curbs and the sidewalks attendant to that, nothing else.
If you know, sewer maybe, but nothing else. It is, debruised but again, limited to only that work and nothing else in the terms of the ballot language. The reason why it is a 30 year ballot measure is because it is a bond, and it is on a 30 year anticipated repayment. If it can be repaid earlier it is a low rate.
At this time in our economy, the rates are good. The future councils can certainly repay it earlier or refi. The maximum amount anticipated to be raised each year is 1.8 million for debt service, and it's likely to be less. It's likely to be more like one five, one five and 1.5 million.
And that then would result in a lower mill levy that would be charged to the residents. And so it is anticipated that the cost per year per 500,000 of home residential value would be $222. Other methods of financing the roads were pursued and there weren't available because we have no other revenue. The mill levy that we charge now of 4.5 is nearly all used for the sheriff's contract.
In point of fact, if the cost of the sheriff's is, turns out is pretty much static. But in point of fact, if we don't raise enough through our residential assessment and mill levy, the sheriff's will take what we have. That's the way the contract works. So, that and when we needed more for law enforcement, we actually had to take other money from our budget to hire extra retired sheriffs and overtime sheriffs to do that for speeding and vandalism enforcement.
And so, to get into the specifics of what's been asked, about the project itself, the engineers looked specifically at what was required. The roads themselves at the time the city incorporated, were already there at the end of their useful life, at about 10 to 15 years over their useful lives. Monarch was constructed in stages, so there are parts of Monarch that are younger that weren't completely at the end of their useful lives, of course, but most of them, most of these areas were.
And so there are two tests which I've described previously. One of them is the pavemen pavement condition index or PCI. The other is a water weight test and the water weight test does the subgrade. The, some of the areas need subgrade work because the subgrade was not, to the par that it would be required to be now, and it would need to be completely redone.
Other areas don't require that extent of work. And so what you'll see when we do the technical coordination is that on more of the west side, while you'll need to dig up more to get your pipes done, we may not have required to we may not have had to do the subgrade in that area. So that kind of coordination will still need to be handled.
So some of it will only be a refurb or a surface, whereas others will be a complete redo. Most of it is a redo. But it will be from center to curb much like you saw the intersection. The next question that often arises is why not asphalt and the issue of what were the considerations. And so the primary consideration was what is the longevity factor and the maintenance factor?
And the engineers came up with the fact that concrete was the most viable and the most maintenance free in Colorado in our climate, in our usage. Particularly because of the way the traffic and the type of traffic we have and the type of maintenance and the type of road salt product and be generalizing But the snow product that we use. So with that, I'm happy to take any questions about the project itself or the ballot measure. Or anything else.
Denise:
I think I have an easy question. Yes. You said the bond was a 30 year bond. Yes. Once the roads are redone, what's their lifespan?
Deborah:
It's expected to be in the 15 year range.
Denise:
Okay so 30 years is more than 15. Yes it is. How do you manage that? I mean.
Denorah:
Yeah, so there's two things are anticipated. And so the, the elephant in the room question is who's going to maintain it and how are we stuck with that debt service for longer than it should be. So it's it's actually not uncommon to have debt service that goes in excess of the project. And that will occur. And it's not uncommon and it's tough to take, but that's the best way to finance it at the low interest rate. However, future councils can either refi or charge a lower debt if charge a lower mill levy if that's allowed. It is most definitely anticipated that private property values will increase.
Today I spoke with a tax assessor about what the anticipated assessments are and what the property value trends are. I also was able to take note of what the property values are in the canyons area so that we can have a real idea of what our revenue stream would be based on that eight mills. And so our projections for the 1.8 revenue raising and the eight mills to raise that 1.8 are based conservatively on today's values, and they're based conservatively also on, you know, not not excessive raising and on values that are not necessarily projected as the sale values on the West side.
So we do anticipate that we’ll actually raise more revenue in the future, and that we may either be able to pay that debt much earlier. And future city councils will be able to make those decisions. So it's quite, quite realistic that that debt will be able to be paid off early. The second thing is a maintenance. Equally possible, is that the 4.5 mills that we have always collected will go further and be able to afford maintenance.
Because 4.5 mills on 3200 homes, now it'll be 4.5 mills on twice that many homes later. And that will be able to maintain the full infrastructure. So we anticipate that we'll be able to pay for the maintenance on all of the infrastructure based on that. And that was the calculus for when the annexation occurred.
Robert:
I got a couple questions. What's been talked about, about the individual neighborhoods and their streets that are in disrepair as well? We talked. Yes. 30 million is just you stated for the two streets.
Deborah:
The reason, actually for separating this project out with the mill levy is so that we don't have to stop the plans for continuing the maintenance and then the maintenance plans on the other roads. What we saw in the past three years was a growth in the amount of maintenance dollars spent on the the current roads. And so it went from, in the past four years from like 200,000, 300,000, 500,000, 700,000 and then this past year, like 4.5 million.
That grew exponentially because of a conscious plan to put the effort into those roads. I left out one year of 1.5 million. That that's not going to stop. We're not going to have another $4.5 million a year because we used our capital improvement fund for that, because we've chose to as a priority.
But the priority of spending those funds from our budget isn't going to change. And the reason to do this mill levy on these two roads is so that we don't have to change that priority and what we hope you'll see during our budget process that's beginning in the next month, is that we're sticking with that priority.
Robert:
And so each of the neighborhoods will be done from the capital funds budget.
Deborah:
Well not from the capital funds budget will continue to accrue because we've really depleted it. It's only got a couple hundred thousand dollars left in it right now. Because we, you know, we spent a big chunk on the intersection and then on some of the projects this year. But, what we will see is so nutshell again is what we did was we reevaluated all of the, weight the subgrades and PCI’s and took care of anything that was below 60 and made sure all of those were taken care of.
And whether it was a subgrade or a mill job or just a seal job or just a refurb. And then what we chose then now we can pay attention to anything that's like 60 to 70 and then actually start proper maintenance. And that's where we can go and then really just take care of things as they're supposed to be.
And that's not going to stop. So that's the idea. And now we also have, our public works director also has an assistant that's full time so that the proper attention can be paid so that when a resident calls with a pothole with a problem with, you know, or if a car hits something and and something breaks, you know, it can be attended to immediately, you know, that kind of thing. So those priorities are not going to change. And that's actually part of why we did it this way.
Robert:
Second question is the 30 million is just the principal amount right? And then the interest on that, what's the total amount that will be owed?
Deborah:
I'm told it's in the 50 range.
Robert:
Debt service.
Deborah:
Yeah. They did calculate that. Let me see if I could find that. 60. I'm told it's 60. Oh, wait a second. 2.25. This math is not my forte. Repayment cost of 30. 3 0 million debt at 2.25% would be approximately 41.6 million.
Robert:
Thank you.
Deborah:
The ballot measure caps the amount the city can collect at 60 million.
Chuck:
Deb just a quick question. During your review, I was a little confused and that might just be me. You said earlier on that the mill levy of 4.5 is going to go primarily to the sheriff's. Yes. And that we would have a problem hiring an additional sheriff if we wanted one to patrol Coyote Ridge, for example. That would that would skimp that budget possibly. Partially.
And then a second ago, just before you ended, you said that the 4.5 mills that you're currently collecting can now go to maintenance. So is it maintenance or is it sheriff or is it both?
Deborah:
I'll be more specific.
Chuck:
Oh. Thank you.
Deborah:
The 4.5 million is the mill levy we collect. We also receive revenues from other places, including the share back County audit County auto tax auto taxes. So there's a share back from the county. There's a portion of the sales tax. There's lot not lottery proceeds, but there's another state tax proceeds. And then there's, so there's the share back auto taxes, county share back, our mill levy and then there's one other, that's through the state.
So those are the big ones. But the largest part is the 4.5 mill levy. And so there is the largest chunk of our budget is the sheriff's portion, and that is the portion that's static. And then the rest of the budget comes from the rest of that revenue.
And so the total revenue is approximately 5.8 million. And so as you probably recall from your budget process, you say five, 4.5 million. It doesn't equate to 4.5 million. So 4.5 mills doesn't equate to 4.5 million. So we have a budget of 5.8 million, roughly, last year. And then from that we have approximately a 4.5 million sheriff's bill, and then everything else comes out from that.
And these are rough numbers we’re talking in my head in my memory. But that's roughly it. And so we do have those other revenue streams; they're just not large. The amount that we get we decided to allocate approximately $90,000 to get the extra overtime sheriff's to be able to patrol for speeding, because we had a lot of complaints of speeding and also to patrol Coyote Ridge Park and Elk Ridge Park.
And that's, over time, sheriffs to patrol it off hours so that the other sheriffs that are allocated to us can focus on things like, you know, catching, you know, the gangs that we caught the other night, you know, in the middle of the night last night and, you know, car thefts and accidents and things like that.
Then, for example, there's a portion of it that goes into required reserves. I think it's three months. And then there are other things. We have a very small portion that goes into our events. It's like 20k something something like that. And then, you know, you'll see the other portions of the budget. We have a small portion that goes towards continuing education and conferences.
It's a couple thousand things like that.
Chuck:
Thank you.
David:
Do you have a copy of the ballot language with you?
Deborah:
I can email it to you. I didn't bring any paper with me.
David:
If I may and you can correct me if I'm wrong. I just want to paraphrase a couple items within the ballot language. It's a $30 million ask. Has a floating mill levy that has been described as between 6.2 and 8 mills, not capped. There's no caps.
Deborah:
There is a cap.
David:
No there's no caps. Okay. There's a $60 million pay back over 30 years. The idea of the capping, in all fairness, is a byproduct of a compilation and a figure of $1.8 million annually to service the debt. Most of your presentation this evening, in, in in my opinion, seemed to reflect the more optimistic view, of of, those points of that ballot language, understanding that.
You don't want to be under, when it comes to financing a project like that. It's equally as important not to be over. You made reference to the property value situation that's occurring in our neck of the woods here, and, and, our financial folks will tell you that, based on their relationship with those that make it their business to establish property values, that it's declined again this year.
No one knows future, right? For the record, you need to know that the district made an offer to the city to accelerate a capital project that was not necessary. To accelerate a capital project that included the repair and replacement, excuse me, not repair, but replacement of a water main along Castle Pines Parkway from along side of it to beneath it.
Directors, in seeing the opportunity and seizing the opportunity made the city an offer said more appropriately has extended an offer to the residents of Castle Pines North. It's laced with economies and efficiencies that not only provide an opportunity to reduce debt, reduce the capital costs, and reduce the longevity of the debt. So the question is, given the fact that you raised the issue wasn't on our agenda. Are you here to accept that offer by the city from the district?
Deborah:
As I understand it, that offer may have been made after the statutory deadline for the ballot language. The statutory deadline for the ballot language was September 1st.
David:
That's very true.
Deborah:
We can't change the ballot language.
David:
I think it was. I think I think chronology is incredibly important in understanding this issue. And unfortunately, while the district was not made party or a part of any of the planning associated with your roads project, the chronology that we acknowledged in what we were dealt was the same chronology that the public was, which is generally after the fact.
It was not only after the construction of the language, but also the emergency meeting of the passing of the language and I can continue. While that's not at issue here.
Deborah:
With all due respect.
David:
The question is, the question is, are you here to accept that offer? Because I'm not sure why you brought the whole issue up.
Deborah:
Number one, I brought it up because you put me on the agenda for an update, and it is a matter of public interest. Number two, we have not voted on your offer, so I cannot act on behalf of the body. My personal view, as I expressed, is that it's a generous offer. I base that on the fact that for three years straight, I brought the issue to this body and asked for you to consider doing the project at the same time the city did both before you were elected, and after. Number next because I've lost track.
This matter was the subject of a special meeting only because at our regularly scheduled meeting, some of us questioned the ballot language and insisted on specifying that it be limited to this project and in fact, some of us wanted it not to be debruised. There were very specific reasons, and we wanted it to be limited. So it was on the public agenda for approximately six weeks.
It was also the subject of intense social media attention. And so I, I do respect where you're coming from. I do agree with you that it should be coordinated. I do welcome the offer. I do think the project cost could be reduced. I do thank this body and I wish that it could have been coordinated better. I have on many occasions reached out, and the desire has been for the heads of our bodies to communicate with one another and for the staffs of our bodies to communicate with one another.
And I have always made myself available to bridge any gaps. And so I will continue to do that, and I will raise this with my body. And I if it is such a matter of importance, as you are suggesting and asking, I will seek to put it on the agenda as an agenda item and put it to a vote.
Unfortunately, one thing we absolutely cannot do statutorily is change the ballot language.
David:
Thank you Deborah. The, your your response to my question, which was were you here to, represent the city in accepting the offer? I only ask because, again, while appreciating your wanting to give us an update, the offer as you were made well aware of within days of us finding out what the final ballot language was, regardless of the, scuttlebutt on social media or drafts on agendas, until which time we were actually brought into the fold and we weren't until which time we saw the final battle battle ballot language. Was there a sense of urgency on this board's part to accelerate, given the opportunity. And and keeping in mind this is not city versus the district or the district versus a city, this is all about the residents. I agree.
No, no exception in that regard. Just no exception. And it was in that sincere short period of time and in that moment, and in with that level of intellect that this board put that offer together. Not that it doesn't represent and present a financial burden or financial strain on its budget as well. So, a great deal of thought and a great deal of, of, forethought and sincerity went into making the offer.
Don't need you, but thank you to take any message back to the city. The mayor, and is fully aware of all that has transpired. Is a part of the relationship that is better than in my tenure here as ever been. And she continues to do an admirable job and admirable, admirable, admirable job in leading the city. And and, has a big job, to say the least.
Deborah:
Are you then, are you then asking for a formal position? Because I don't have a it's not on our agenda tomorrow. She has not put it on the agenda.
David:
And that and that that's you might present the question to the mayor when when in our last conversation. Given the fact that I've been out of town for the last ten days so it was 11 days ago. That's how often that we do speak. The sense of urgency was, was simply a matter of timing of the project.
And, and so, I haven't had a chance to catch up with her today, so I don't honestly know. And so I'm leaving it in her court but thank you for offering. I, I left it in her court let's leave it in her court. The district is ready to, for the benefit of the residents to do both capital projects at the same time.
We too agree with you, and, and, that that it's it's a real opportunity. We don't want to not take advantage of. So, again, thanks for all of your hard work, your insight, your support, both both sides. I know it's a difficult role to to, shoulder and you do it well, thank you again.
Deborah:
Well, thank you. I do know that our staffs had discussions before the offer was formally made, and there's always been an intention to coordinate whenever we can. So that will certainly continue. And, you know, just because part of the reason for that special meeting was precisely because just because the ballot that just because the bond is for 30, the estimate was for 27 million. There's a little give to put it at 30. But part of the reason for the special meeting, and part of the reason it was such an the original meeting, set meeting was because this is going to be for only this project. And if the project costs less, then the money doesn't go into some other pot for something else.
And I lost the debruising argument but I win this specificity argument. So the bottom line is, if you know, there's no question that there's going to be economies of scale in project management and cost when your project is completed and in conjunction with ours. And the project will likely be less as a result, barring any complications. And then our residents will achieve that economy.
And beyond that, I'm still going to be trying to get grants for things like bike lanes and sidewalks from Denver Regional Council government and the feds and all of that. So then the project will cost less. And so does that mean we might be able to do a little bit more patching further up Castle Pines or Monarch or give the money back? Yeah, that's the intention. But it's not going to go build a, you know, an incline somewhere definitely not.
David:
Build another what?
Deborah:
Incline. I'm just throwing it out there. Incline like a stair step exercise incline thing.
David:
Okay. Thank you. Yeah. hank you again.
Deborah:
You don't want another update on some exercise thing? I'm sure.
David:
Oh it only if you only knew. Thank you again.
Deborah:
Thank you very much.
Robert:
Thank you very much.
Denise:
Thanks for always being here.
Describer:
Deborah takes her seat.
Denise:
Thanks, Deborah.
David:
Closing item seven. We will open item eight, which is our open space manager report. Our district manager, Mr. Worley is going to take questions, comments, concerns from any of us that may have them. We have Craig's report. We've read it. We're poised to take you to task. Well, just kidding. I don't have anything. Colleagues? Go ahead. Jim, you want to make a report or to take the floor will you.
District Manager Jim Worley:
Okay, I got it. Thank you, I appreciate that. No, I'll give you somewhat one of the more important things. As we all know, Craig has some surgery that's why he's not here. He had surgery. That's why I'm not a doctor I don't know what it was. But he is he's he's back working, but he's not physically here because that that's more of a challenge with him driving back and forth.
So we've coordinated with the computer network so he can work from home. But I’ll know a little bit more he and Ill probably visit tomorrow to see how things are progressing. He was in a lot of pain a couple of weeks ago, understandably so. But I'll keep you posted on on that. So I'll address any questions you may have.
Robert:
I guess I can start off then. In regards to Coyote Ridge Park, we pick up the trash up there and there's a couple of receptacles. What's the schedule that they remove the trash from those tiny bins?
Jim:
We pick those up at least three times a week. It doesn't matter which day it is. If they're full, we go pick them up. On a weekend or when we have a holiday like we just had recently then we'll probably pick it up four times that week. So that's that's how we do it. We do it ourselves in many cases but we also have contractors who are out there mowing and doing that and part of their duties is to keep the trash cleaned up.
Robert:
Okay. Is there anyone that's, they picked the trash bags out of the bins, but do we have anyone that's picking there seems to be a lot of debris around bottle caps, bottles, all kinds of different combs, even brushes, there's a lot of debris in the area. Whose responsibility is that?
Jim:
Well, ultimately it's ours of course. And so what we do is we ride herd, so to speak, on the contractors that are out there and say, not only are you going to empty the trash, but if you see it around the area, pick it up and throw it in the trash. So we have to constantly stay on them for that. That's how we do it.
Robert:
Okay. We might have to readdress that for what's being seen now and over the last couple of weeks. Also, is there money in the budget or can we consider getting bigger, trash receptacles and additional trash bins that we can put in more strategic areas? You have to kind of look now, and they're kids they're just throwing the stuff down.
But if there was, on the two sides, there's one that's way over you get to walk across and walk out of, like the little skate park. We probably could place those in better and maybe a couple more of them, maybe four more. What do you think about that idea?
Jim:
I think it's a great idea. We'll look into that and make sure strategically, we have it in the right spots. And if we don't, we'll add to it or move it around. But timing is right.
Robert:
Maybe we could trade those trash bins that we have because they're small. They're smaller than mostly and get larger ones.
Jim:
Maybe get some bigger ones. Well look into that. You bet. Sir.
Robert:
Okay. Thank you.
Jim:
You bet.
Chuck:
Jim, quick question on, item number six of your report. You mentioned that all the contracted tree removals have been completed. Are there any more contracts going out, or did we run out of money? Or where are we with trees that are still bad and need to be replaced or removed?
Jim:
Some of them we have been doing ourselves in-house. There's been some of those. The more needy, so to speak, are are handled by a contractor. So they've come through. We tagged all the trees and that we wanted them to move initially. And as you recall, it took a while to get them out here because the whole metro area is having this issue.
So I'll, I'll visit with Craig tomorrow and find out if there's some more that we could add to this, and I'll double check. I don't know where we are on the budget, be honest with you right now, but it's been a terrible year for that.
Chuck:
Have they have they removed all the stumps? Or they have they left them?
Jim:
They're going to come back. If you're noticing this report I think it's next week the 29th. They're going to come back and grind stumps.
Chuck:
Are they going to replace any trees?
Jim:
I don't know the answer to that. I can find out for you.
Chuck:
Thank you.
Jim:
You bet.
Chris:
Hey Jim. Question.
Jim:
Yes, sir.
Chris:
Related to the monument I guess there's a requests to by the city to essentially, a right away of a monument. Now, I think that's a good thing the update. My question as it relates to the the right of way and the application, do we have a process for them to apply for right away on district land?
Jim:
I'm not sure if it right away is the appropriate term. I think it would be request permission of the landowner, which is what we are. And as you'll see in my report here in a few minutes, that actually the first item is related to, to the request from the city to for us to give them part of the authority to get on some of our land with their new signage.
But I don't think there's an additional right of way unless Kim's got something that changes that. It’s just a request to use our land, and that's what we'll be talking about.
Chris:
It looks like it's over the portion of our land, but, okay. Thanks for that clarification. But do we have a specific regulation or rule for that type of a request? That's more of my question.
Jim:
I don't think so. We we don't Chris. It's really up to what they are requesting. This is the first time since I've been back in the two years I've been back that this request has come in. So, historically, I have not dealt with one of this nature, but that's what the board is. It will be able to decide hopefully tonight about that.
Chris:
Thank you.
Jim:
You bet.
Jim:
Any others? I will make one comment about the graffiti. One of the issues that we've all kind of thought, at least internally, we've thought and Councilwoman Mulvey alluded to that a few minutes ago. These people have had a lot of time on their hands until recently, and recently means, I think, schools back in, there's more of a structure going on that most kids are used to.
So without jinxing it, the amount of the graffiti has dropped significantly in the last three weeks doesn't mean we won't have a rash of it the next weekend or what have you. It's still an issue we have to deal with, but the good news is it seems to be at least recently, slowed down a little bit. Hopefully it stays that way.
David:
Thank you, Jim, for the Open Space report. Close item eight and move into item nine, finance director's report. Eric, welcome.
Financial Director Eric Harris:
Thank you, Director McEntire. Good evening board. This evening, you have in front of the with the financial packet, the August 31st, 2020 financial statements. Briefly, before I touch on those, I just wanted to speak to you, where we are in our budget process this year. We've done our preliminary snap at all of our operating expenditures and capital expenditures, and that is currently with updates to our strategic, the district strategic financial plan.
We are expecting to distribute the proposed 2021 budget to you the first week of October, if not by the first, the first week of October. With that, we will look at this time next month or, at a different work session in a board meeting or a work session, either of your preference. We can review those numbers and tentatively still plan to adopt the 2021 budget at the November board meeting.
Just, a quick look, as discussed, we're attempting to zero in on our expenditures and target our fund balances to the end of the year. There are a couple different things just to highlight. In our general fund, we're just trending over on some of our miscellaneous expenditures and some printing expenditures. We've adopted an allowance associated with that every year.
So we're just monitoring that. But we do have several positive variances for results of expenses not taken to date. I'm coordinating with Jim Worley on those as well. Salaries and wages are just slightly trending over in the general fund and parking parks and open space is slightly over budget, but primarily and only due to the non-cash irrigation expense that is charged the district's enterprise fund.
I do want to note the conservation trust fund that the district does has our money set in, set aside in trust. And those monies are available for capital repairs and maintenance of parks and open space. There certain rules and program expenditures, but certainly some of the items discussed tonight do qualify for that program.
So those are available as well, at your discretion. We are trending on projecting to be $310,000 in that fund by the end of the year. And that is funded only by quarterly distributions and investment earnings on those funds. The current capital plan in the parks and open space is only scoped right now for the ongoing trail replacement project, concrete replacement project.
So that's the only items that are in that, capital repairs and maintenance. So we we are I don't expect, we have we've projected some general overtures of what we think well be towards end of the year, which puts us about $1,000 over our budget expenditures. But we will we will continue the monitors to see if we need to propose a general fund budget amendment for those appropriations.
So with that, just touching briefly on the water and wastewater funds right now. We are experiencing, since I've been working with the district for many years, the highest usage to date. So typically what you see is about 50% of the district's revenue water service revenue is, retained during the months of June, July and August and that is still the case. Historically, we are about 72% collected on our revenue through this year. So balance of that is for the first part of the year, obviously. So we did revise our projections up just to historical higher physical throughput on the system as well. So those are noted in the financial statements in the projected revenue columns.
So with that, though, on the expense side, we have to monitor, of course, because appropriations are the expenditures that are set and approved by you. We are trending over on those, and we projected to be over those. Not to date, we are not over to date, but with the November budget hearing we have for the 2021 budget, I do expect to bring an amendment to account for the water and wastewater fund.
As the items we previously discussed before, due to unexpected expenditures that weren't anticipated during our budget process this time last year. And so we can delve into those a little bit later at those times, or I can address those right now. But I have reported those in the prior financial reports. So, with that, we do have other item that came up, over the last month or two was higher repairs and maintenance expenditures associated with, wastewater fund.
We have, higher chemical, treatments that have occurred, as well as shedding and cleaning expenditures that have occurred. That was a new allowance. We started incurring those expenditures that were unexpected last year. But that was incorporated as a component of the O&M program this year. And so, there is a contractor that does monitor and go, at the direction of, your foreman, to monitor and make sure those chemical treatments do occur.
So those are the quick touch on the, the variances, right now. Over, during August 2020, the district did bill approximately $690,000 in water service revenue. So still very high in those projections, like I discussed, were higher. We're looking forward to the 1st of October when we get to turn on the interconnect and decrease those utility expenditures that are necessary to run the wells that are out there.
So we will make that transition, and then, have that really be able to project those expenditures through the end of the year for those non irrigation months that we draw water off the pipeline. We did preserve some budget unknowns, mainly just we have some obligations related to agreements with Ruder Hess or Parker with Ruder Hess.
And so those maintenance obligations are preserved within our budget. I have not heard anything come my way of if those will be used or not for this year, but just to let you know, those are out there right now. And, one of the things we are, we're following up on a number of different items, including some projects that CRS is working on, the district's payroll and billings consultant.
We are working on some, report updates to some to make system up, not system updates but report updates to account for the accounts receivable items that we discussed last month. There's nothing to there's nothing concerning from my standpoint with that, but it was a manual process under the former district administrator. We've rect ive worked with CRS to rectify those system issues and so we expect to have that report, hopefully by next month. And I'll make a comment on it but I don't expect to find anything out of the ordinarily and I don't expect there to be any risks there. Continuing to, to work through the monthly process in the budget season and then we'll quickly get turn around and get into 2021. Are there any questions for me this evening?
David:
Eric nothing on your budget report. Job well done. Appreciate tracking those variances. In in that regard, you and Jim will be happy to know that, the variance between what we produce and and what we sell. Well, I shouldn't have told you what the magic number was. But but the the update is that we're still falling within that realm, which tells us that, evaporation and, wheeling and and everyone's, free piece of the of the spigot, we are within budget. I think our trend, it was somewhat high last month, but but we're down to 4.3 year to date and, and so that's a exceptional improvement from, from last year's. I don't know who's fudging but keep it up. As long as it's the revenue right.
You know, Councilwoman Mulvey, brought up the whole, Gallagher issue that is coming up. And I know that's one of those subjects, near and dear to us and to you as well. Are you, are you in a position now, or do you want to defer? I think we have one more meeting before that becomes, a something that we're all going to have a chance to, chime in on, to, to speak to that issue and the effects on, on the district.
Eric:
I can make a couple comments on that, but I would have to defer to our, our budget process. Historically the over the last 20 years, the district has not accounted for the change in the residential assessment rate. So we've we've put aside over the last few years what the RAR has done and dropped, looking at our, our, our tax base, the district's tax base, it was a judgment call by prior boards and this board to date.
There is a further clarification and avenues we have to go down. If if that is, if we would like to do that or not, and we'd have to, make sure we account for those. But to date, we have not accounted for that in our budget and our mill levy.
David:
Questions anybody? When when you have a chance over the course of of, this next month before the next meeting, looking at this current year's budget and maybe the year before and the projections that we have information on for the upcoming year, maybe you can provide that same presentation in number form so that it is clear. What I heard was that it is not been something that has, directly well is not directly affected our operating methodology.
While we do pick up the pieces, good, bad or otherwise, thereafter, the assessments have been finalized. We've made it a practice to, again, anticipate the what's occurring in the marketplace as opposed to reacting. But again, if we put some numbers to it with a quick presentation, it would be helpful please.
Are there any other questions, of the board with regard to this month's financial report?
Hearing none. Again, good job sir. At this time, I'd like to pursue a motion that would incorporate the approval of the financial report given by our financial director. That'd be item number ten? Item number 11 would be to also pursue in this same motion, the approval and ratification of the payables for the period October, excuse me, August 6th, 2020 through September 9th, 2020.
And, and, the details of, of item 11 are from the general fund and the debt service approving 20 million, excuse me, $20,565.40 ratifying $98,599.12 for total $119,164.52. From our enterprise Fund approving $135,737.59, ratifying, the expenses of 30, $347,985.83, for a total of $483,723.42 And from all electronic payments, of all funds ratifying the $357,136.73 with the same total for a grand total for that period, again, August 6th through September 9th, 2020, of $960,024.67. Do I hear a motion?
Chuck:
I'll make that motion.
David:
Have a motion on the floor to accept items 10 and 11, the financial report and the payables. Do I hear a second?
Denise:
I’ll second.
Board Voting All Speak:
Second by Director Crew. Any further discussion? Hearing none, seeing no one waiving. Would, when called upon, please indicate your desire to approve or deny or. Director Lewis. I. Director Lowen. I. Director Crew. I. And Director Merritt. I. Director McEntire is an I. The mash, the motion passes unanimously.
David:
Item number 12 is legal counsel's report. Welcome, counsel you have the podium.
Legal Counsel Kim Seter:
Thank you, Mr. Chairman. You have my status report in your packet. It covers all of the easement items and other things we dealt with and if you don't have any questions on those, I will give you an update on the Parker Water and Sanitation District negotiations.
And seeing no questions, we'll talk about Parker Water. The week before last, I sent out the first draft of the agreement that brings about the unification. It pretty much lays out a framework for how this is all going to take place, but it's missing a lot of the detail that went over to Parker Water and Sanitation District attorney.
And he said he would be back to me this week with his additions and changes. So we're moving forward nicely in that regard. Under the new schedule that I'll talk about here in a minute, we would be bringing that to you in October for a first look, and then in November to consider approving it. The first condition of that agreement, of course, is approval of the voters at an election to combine with Parker Water and San.
We had originally slated February 2nd to have an election in that regard. It's become pretty apparent that we're not going to meet that February 2nd deadline because there's months of back up time in order to to reach that date. So the discussion now is to move that to May 4th, which would be the next opportunity. That would allow us to have the agreement approved by you in November.
We can get through the court process by January. Parker Water and San is the entity that has to call the election. They would do that sometime in December or January. We then take it through court and be ready for a may election. That's about it for now. I think the the, the real issue on the election is probably the issue for Parker water and san unless you have some strenuous objection to moving from February to March again, I mean May. It's their it's their job to call the election. And it really seems like we could make February, but I don't think we want to. We need we need to firm up these agreements and be ready.
David:
Thank you for that report. Let me just take the opportunity to add, as I promised, a bit more substantive report this month from last month. And, thank you for making that report for me. But, seriously, in in communicating with our colleagues, from Parker, the consensus of not only this board, but our colleagues there is, has been the fact that it's been a long time coming, the results of all of these studies and the reports and the information, that has been presented and is on the table.
To drill it down, they're done and tired of counting the pipes and and the valves. I think the quote that I heard echoed more often over the course of the last 30 days and again, amongst everyone is, is, let's get it on. And, and, some form, passion or another if that doesn't create a sense of urgency now that the valves and the pipe counting is over, I don't know what will. So, Thank you for that report. That's the high level insight of my colleagues and our colleagues across the city lines. Are there any other comments, questions, concerns? Chuck.
Chuck:
Without getting into it depth of the minutia that we've had to go through and everybody's involvement from this district to Parker, you had mentioned we won't make the February 2nd because of what specifically without detail just, what are the items that are in your craw?
Kim:
Mainly the volume of information that we're trying to pull together for the inclusion agreement. And then, of course, from you have to count back from February, several months, to the first action that has to be taken to meet that February deadline for the elections. So if we can move that to May, then a lot of those deadlines move into January and February and allows us more time to complete the agreements and all the other prerequisites to getting to the election.
My biggest concern would be if we tried to go to the February election. You wouldn't be able you would be asking the voters to vote on some things that would not be very firmed up at that point. By the time we get to May, you'll have a good long before May you'll have a good feel for exactly that.
Chuck:
I guess I'm still confused on what agreements need to be firmed up. Can you give me an example?
Kim:
Yes the main one is the one that I sent out the week before last the first draft of. So there needs to be an inclusion agreement that lays out the overall conditions and the process for this whole unification to take place, and that will include exhibits that list all of the pipes and the valves and how they're going to be conveyed.
Well sites, water rights, the ability to process sewage and water and all of those things have to be put into this agreement so that we know once we get past the election, all of the different steps that have to take place to unify the system. So right now we have a tremendous amount of raw data, and that's being pulled together in this agreement into a framework that allows us to actually pull the two systems together. Does that, you still look like you have a question?
Chuck:
Well, the way you present it looks like you're, requiring the constituents to read the agreements so you don't want them to be half baked. We could vote on an agreement today you could finish it tomorrow. As long as we knew the overall concept. Is that not correct?
Kim:
That is true. But the overall concept is is pretty complicated its pretty large. And that's what's in this initial agreement. And then all the details there are I don't remember how many sections there are in it, but probably about 15 different things dealing with employees, pipes, valves, processes, water rights. Once those are pulled together, at least close to a final agreement, which would be November, then we can start moving toward the election.
Chuck:
It's primarily this district that needs to put that information together, or are both just districts doing pretty much the same thing?
Kim:
We're working together. So I did the first draft that's gone over to Parker Water and Sans attorney. I'm not sure whether I'll get back a copy with just additional framework or if they'll start backfilling information. But we have the information that's been collected over the last couple of years And it just needs to be backfilled into the, the agreement.
And we have to figure out how each of these items has to be addressed, how do we pay off the bonds? How do we convey the, the water rights? How do we convey, well, sites what are the well sites, what additional well sites are needed? All of that kind of thing.
Chuck:
Got it, thank you.
David:
Just a little bit more clarity. It might help. It's certainly not as simple as a bill of sale.
Kim:
Yes.
David:
And and having said that, and inclusion is a both on Parker's behalf and our behalf is, a process that albeit we have the professional intellect and ability to consummate. There's a number of nuances that we've run into that are a part of this being done for the first time. Not just in our lives, but in, but potentially the state and, and and and others.
Not looking for excuses, but just laying out the facts of the matter. We want to make sure, as you suggested, that we dot the I's and we cross the T’s, that we make sure that, what we say, we mean, that we're transparent, we're honest. And that the residents get the best shake, for, all of this effort and and, by golly, it's shaping up to be that, from my perspective.
And, and, if it were simply a perspective of the effort by my colleagues and myself and the Parker folks. Yeah, we'd be there twice over. But, this is, you can appreciate there are those that want to count the the valves in the pipes and those of us that don't want to, but but.
Chuck:
I don't care about the pipes and valves.
David:
The the bill of sale option was thrown out almost immediately, I can tell you. And I think they said, because they've got to run this dang thing afterwards, so they need to know what they're getting. So anyway, we can go on and have fun with it. But thank you for the report and, I appreciate your time and effort and good job so far. Thank you. Anybody else?
Chris:
One question. Are we good? So, Kim, on the on the preliminary report, you said you send that I can't find it. Could you resend that to me? But the second question really is. So on the study, do we have at least, a draft of what was found, what the results are, and that you that you can share with us to?
Kim:
There's a Dropbox that's full of information that can certainly, I think, be shared. David probably has access to it. If not, we'll get that and determine what what you'd like to see.
Chris:
Summary would be good.
Kim:
There's so much right now that we'll try to narrow it down to something that'll give you the the big picture.
David:
Chris, we're at a point, as you know, that with the, boots on the ground type of of work and effort that has taken place through to date, and all of the other considerations of which Kim only mentioned, some, not all. There is a report and not only, with full detail, but in summary on all of those, available, and they're logged into that Dropbox and accessible for all of us.
That being said, that's really where we're at in in the process. What we foresee forthcoming over the course of the very, very near, near term, is that, each board is given a presentation of those, final numbers and, and, deal points, if you will. The objections and the opportunities and the hurdles and, and whatnot that comes from a presentation like that.
There's would come first because, of course, they're the inclusion, driver and, and, then it would, passing the mustard over there it'll come our way. So, I don't know that we've got a whole lot of time between now in a, in a May election. It seems like that's even close with all that needs to take place. But that's where we're at. We're talking months, not years. We're talking weeks, on a lot of these things and days, literally.
Kim:
And, Chris, I think the probably the, the best document for you to see, which isn't quite ready yet is that, inclusion agreement that I sent out last the week before last. When once we get Parker water and sanitation district's input into that, it'll kind of lay out the framework and all the different items that need to be addressed after the election.
So, another important point I should have made is moving the election to May doesn't affect our plan date for the inclusion. That's out quite a distance anyway. If you think of this as a corporate merger, we're going to agree on how it's going to happen if the voters approve it, it's going to happen, but it's going to be over a long period of time. It'll probably be 8 or 9 months to get to the final inclusion. But as soon as that agreement's a little polished up, we'll get it around to the board.
David:
All right. Very good. Any other questions for Kim? Hearing none. We'll close item 12. Open up the district manager's report. Jim, you have the floor.
Jim:
Thank you. Let me address a couple of items. President McEntire asked me to address a couple of things, and then we'll talk about some things on my report. One of the things you might recall, we have, along with Castle Pines Metro, we both own 2004 water rights on Plum Creek, 500 acre feet each that's ours. To prove that up or to make it absolute, we have to physically store water into Chatfield. That, as you know, didn't happen until just this past May. So that's starting to happen on that. One of the issues in in an agreement between us and Castle Pines Metro, because they only have ten acre feet in that reservoir, we have 1006 acre feet. So what we both want to do is we want to be able to store some of the water rights that we both enjoy of our 2004 water rights in the reservoir so that we can make it absolute.
If you start storing and you start using that, then it becomes absolute. Yeah the decree. Thank you, thank you. The decree becomes absolute. The issue we ran into this year is our water rights are so junior no 2004 in our water right area pecking order, if that makes sense to you. There was no reason to really go into that too much because it wasn't enough water to even get to us at all.
So what I think will happen, and we kind of put that on the back burner when we found out that everything is just so dry and we're not going to have any molecules of water from the 2004 water right to physically put in there, that kind of went on the back burner. I actually visited with our water legal council today, Austin Hammer, and I said, Austin, let's T that back up so that when we go into the next water year between the two organizations, we're okay.
They'll probably say, if you got water and you got more storage in there, go ahead and put it in there. But that's I'll use the term simple agreement between us and Castle Pines Metro, because that's a benefit to all of us to be able to, to, make those rights absolute. But 2020, it's going to go down in history for a lot of reasons.
And one of them was we were not able to do any the any of our 2004 water rights based on the, the, the drought, basically. So we'll keep that one posted on there. There are question on that maybe? Chuck.
Chuck:
If we store water like you're suggesting, but we're so low on a pecking order and we can't use it, I'm confused.
Jim:
That's not the case. We have we are already storing water. As a matter of fact, if you look at.
Chuck:
We’re storing it but were not using it.
Jim:
Not yet. October 1 we'll start using it. Okay. Because what just just to kind of give you some clarification on that, we still have 1000, 1006 acre feet of storage us here. We can put our high senior water right, which is known as hot caulking that flows down the South Platte and it's it's been going north for years.
We can now store that, as a matter of fact, as of I think it was last week, or it might have been August 6th, where I see, that we've got about 100 acre feet of wet water in there. That's all from the hot caulking. We can't put any 2004 water rights in there until the others have taken it above us, assuming there's any water left.
Does that help you a little bit? So the water that's going over now is our very senior water right on hot caulking. But we can't put our effluent in there and we can't put our 2004 water rights yet. Okay, it can be a little confusing. Another thing, and Councilwoman Mulvey alluded to this. The working relationship between staff over there and here has gotten a lot better.
Not that it was terrible it just there was a lot of things that were nonexistent. When there are actually, zoning request of the city were a referral agency. So we look into those as a matter of fact, before the zone or before the request is made of the city, sometimes there's a pre-meeting with the potential applicant in the city and in a discussion I had today with Sam Bishop, who basically coordinates that. I said Sam, I said Sam do you tell those people at the beginning of this before there's any application who they going to need to talk to? He says, yes, I do. I talk to you guys about water South Metro for fire and so we're part of that. The disconnect was some other projects, like in this meeting that we had that the city did some work on here, put up the new poles.
There wasn't a lot of communication on that. But since we aired that concern, I meet monthly with Michael Penny. I meet monthly with Larry Nimmo, who's, Public Works, I think is his title. So that communication of that relationship, I think has gotten better. So we'll keep pushing on that. One other thing that that David asked me, you noticed over here remember the fence issue? Everybody remember that? Well, as you notice, if you've driven by, I'm sure a resident, put up a brand new fence. It looks great a very nice fence no question. And so I reached out to us. I says that is great. Actually, I'm interested in in fencing my house so I said who did it? So she gave me that contact.
But then I said, you know, we just recently stain that and everything looks great. Are you going to stain that? Was my question. She said yes we are. Timing of it I'm not sure, she says my husband travels a fair amount he'd be the one to do it. So, they're appreciative of my call, quite frankly, that I compliment on that.
And I'll stay on top of that, hopefully get it pushed before the winner gets it. Because, as you all right might recall, last year we were going to try to do some ut when it's when it gets cold below 32 degrees and you stain it that day, it's not good. So I'll do my best to to nudge that along a little bit. I'll keep you posted on that. So I'll address any questions you may have for, for my report.
David:
Jim, I have just a couple from the report specifically. Shed some light on, the Biltmore property.
Jim:
The Biltmore property is as you're coming into Castle Pines Parkway off of I-25, and you start heading this way it is to your right. It's right before you get to the 7-Eleven if you know where that is and there's actually two lots there. This is an interesting project. In my first tour of duty when I was a manager here a few years ago, I had conversations with with some people that on that and said, here's what, what, what can we do?
We want to develop it and we said, absolutely, that's great. But as pretty much every utility that I'm aware of when it comes to water, you have to have a loop system. You can't have a dead end of a water system, so it has to be a loop. In the event you have a fire, you have to shut off water here you still got water there.
So 8 or 9 years ago when I had conversations with the representatives of this property. Looping, it's a pretty expensive, pretty expensive and so they didn't they didn't go for it then. I had another conversation with them probably a month ago and brought the exact same thing up. I said, look, it's it's something that has to be looped.
That's just how it needs to be done in a system like this. And so I actually told the gentleman I was talking with, I said, look, I said, you know, we're in this discussion and this, this study with Parker. I said, let me pick up the phone and call Ron Red and ask him, you know, Ron, if you have that decision to make, what would what would be your direction?
And he said, Jim, it would be the exact same thing. He said, it has to be looped. Now, if it were a system at some point that you could do part of it and then some other development, then the loop would be taken care of, he says I’m okay with that. That's not this situation, this there is not another project that would happen in that lot.
And, Chuck, you know, that area as well as all of us did. So that's the Biltmore property. If that helps you understand that and what they're going to build there or want to build there, I'm not sure. They got to get over this hurdle, which is important to us, that it be looped. Does that help you, Chuck?
David:
Yeah.
Jim:
Or whoever asked question sorry.
David:
I just didn't recognize the name. Thank you for that. The report that you were, additional items that you were referring to, specifically on on the relationship with the city I have not been in receipt of, and so I'm guessing my colleagues have not either. Copy of the memorandum that was to come from you to the city reminding them, requesting them of them to approve no, obzoning, moving forward without a written commitment from the district. And and while there's a general understanding that that's a situation that's not what's been happening, and we want a copy of that memo, if you would please, in the, in this next period, next month.
Jim:
I'll do that and actually, I did not send a memo to I made a phone call to him to talk to him. Sure. I'll follow that up with a memo and copy you on that.
David:
I think that would be helpful for a number of reasons, but it is just simply trying to stay out of, of a situation where we are perceived to be able to do something and we and we're not. And I would hate to do that to anyone on purpose or even by accident. But, the, memo from Castle Pines Metro. Are they going to go ahead and sign the agreement? As you were laying it out, we didn't have an opportunity to wheel water. But as a part of the wheeling of that water, when and if it takes place to create the the absolute nature of that decree.
There were a number of other concerns that culminated in our putting that agreement together. Multi page agreement what ifs, that, the most creative could come up with. We need to get that sign so that when we do have a water year, we can move forward, with the opportunity as as fast as it is a fleeting commodity on Plum Creek.
Can we get that agree? I mean, within the next 30 days, let's either get the agreement or bring back to the board what the what the reason why would be so that we can address that please do that. And and, yeah on the fence that's great.
The issue you brought up, I correct me if I'm wrong. Maybe I was looking at my colleagues papers. When did you bring up the issue of the city wanting to pursue an easement for some of our property?
Jim:
Not yet. It's the first item on my report and I haven't talked about. I actually briefly talked about a few minutes ago when when Chris made some comments about a process on that. So in your packet, and there's basically a paragraph that I put in there just explaining that the city has gone through the process of changing or I'll call it upgrading their monumentation.
Yeah. And coming in on Monarch from, from the north, basically they want to and I put up an artist's rendering of it, I think hopefully in your packet. But in essence, it kind of goes along with what Chris said earlier, where they want to physically put this also is not only in the right of way, but it's outside of the right of way in our land.
And so as I mentioned earlier in the meeting, they have to have permission for us to do that. So I told Sam when he presented this to me, I says, I'll pass it on to the board and get their direction so.
David:
Well, you think, I think you hit it on the head already. And that is, it necessitates getting together with the with the applicant, if you will. Right. And, and, exploring the opportunities for both entities to serve their expectations in the, in the residents of the city best. So put the meeting together and and let's see what we can't do to move the process along.
Jim:
Well, let me get some clarification. In the meeting to discuss this, of course, with them, as far as what they need and the right of way is who do you want to. You want me just to handle the meeting basically? Or is there a board member who might be interested in being a part?
David:
Any of the board members that are interested count me in.
Jim:
Perfect. Okay. I'll set it up to talk about this issue with the city.
David:
Let me reclarify. I know they're all interested. No. We can't sport everyone and and and maintain the social distancing that we need to in our conference room. But, that being said, those that have the time maybe, when you set up the meeting, however, that works out. I don't want to hold up Sam, he's going to coordinate it. Let's do what we can to accommodate the request. You bet I will. In putting a meeting together anyway. Okay.
David:
Any other questions? Comments? Concerns of Jim before we turn his mic off? Good to go thanks, Jim. All right we're going to close item 13, the manager's report. Open up item 14. And this is kind of a, just a reminder, Jim, that the, with the budget process in our immediate future, we want to make sure that that, you and, and staff are prepared to, present the, respective budgets to accomplish the water meeting, water metering of the city own properties, as well as the water metering of the neighborhood specific entryways, inside of 2021, 2021, please.
So those as a reminder, I don't know that anyone is is, changed their mind in that regard, making sure that there is equity equal or equality amongst all neighborhoods as it relates to the entryways. Not only in, in maintenance but in, watering and, the, ever so elusive water that the, the city uses on their land, albeit a byproduct of the, an earlier agreement, is one of those items I can share with you is even in the draft of of the inclusion agreement.
That that be taken care of, so that those gallons are accounted for. So let's make sure that that happens. Otherwise, I promised to move the meeting along last time last month, and bring back something substantive, in regard to some of the issues that are in item 14C, 1, 2, and 3. Namely that the graffiti, we beat that up pretty hard, this evening we can continue.
It deserves all the attention that it's garnering right now, but mum's the word. We don't want to tell those that are the perpetrators, that that they've got our attention, but they truly do. The trash and and facilities and and whatnot. I did have an opportunity to meet with a couple folks in the development business and, and industry and, they conveyed to me that this is not a new issue that any of them have not faced, that the science exists, in a situation like this, that it's, really a matter of of, taking a look at the overall amenity and making some adjustments.
Not only to accommodate or facilitate the, eradication of, of this kind of poor behavior, but also to encourage, the use of, more use as an equal or balancing effect, as I think, Councilwoman Mulvey was inferring as well, whether it was lit or not, when, when there's more use in that park, of of a balanced nature there's more, folks, that are accountable for one another. And, so we certainly agree in that regard. They recommended that we pursue a landscape planner and architect to provide somewhat of a master overlay of the area to incorporate, the skate park, if it is the desire of, of, the committee, as it were, to keep it. The, the, masonry, walls, that that are a favorite of some and not of most, but, tennis courts and pickleball, as we've heard tonight, etcetera.
So, our budget for 2021, is going to reflect an effort on our part to not just, expeditiously pursue, a master plan, as it were, for Coyote Ridge, to address these issues and to move our parks projects forward. But, also to, mitigate if not eliminate the some of the vandalism and, and, challenges that we have, as a part of having an amenity like that for the city.
I received a couple, verbal, pieces of information related to costs. And as an example, just to keep it simple, in our area, tennis courts range between 65 and $90,000 a piece. If that were the case, we certainly have the funds as, as Eric pointed out, to incorporate that kind of an amenity, to dovetail or combine that with, with the pickleball, if that was another idea.
And, and to do some of the other things that we're talking about, right along with the, the maintenance that is a part of the annual, budget considerations. So, the funds are there, the effort is, is, you know, I mean, it is time to seize the opportunity and retain, in my opinion, the professionals surround ourselves with, that can give us and the rest of the folks in the city an idea of what 2021 could look like at Coyote Ridge.
I mentioned, to the folks that were here earlier. I, it's, been a topic of discussion with every meeting that I've had the opportunity to have, whether it's been with South Metro or, or folks that live within the city. But the drought has been and tonight, how it has affected us, not only with our water rights, but but, financially as well.
But the drought is really taking its toll this year and continues to take its toll. I was in the great National Park of Gunnison, this last week, and I happened to know the the district ranger, and I was sharing with him our situation down here and, you know, the only thing he said I might just share with you.
And I asked if I could quote it. I won't tell you what his name is, but, he he said, you know, people need to take ownership in the health of their land. And as stewards of of, of, the, our residents money as it relates to the parks, trails and open space. I'm more adamant than ever been before in putting together, a a relationship with the city, and, and our neighbors, as they are willing to roll out our drought plan.
It is very comprehensive in nature. We've had a variety of professionals in the industry and outside of the industry, that have commented on it. We've had neighbors in cities and counties and other districts say such things. Is, is, that we, we applaud our neighbor, the Castle Pines North metro District for its responsible, innovative and engaging approach to raising community awareness 24/7 about the relationship between drought severity and risk, or fire risk.
I think that this issue of the district's very well put together, thought out and, and, comprehensive drought plan is, is ready for, for rollout. I think we need to continue to press, where the opportunities exist. And, and until we've accomplished that task, you may recall it was one that we inherited when the previous district manager shared with us, to be prepared when the residents begin to call you, in, in, in great numbers when the parks overnight go brown. And and we asked him well, what's the plan?
And I think the quote is, we don't have a plan. So, that being said, and and recognizing that we live in a forest, we have all of this support around us. I think now's a good a time as ever to make sure that we've accounted for, budget wise, in our 2021 budget process and and be prepared to roll that thing out in 2021. Any other comments, questions, concerns from the board?
Robert:
We might need a special meeting just to talk about the Coyote Ridge and what may need, there with the roads that go up there with the city. It's pretty much pothole ridden, the parking lot has sand and, and big clumps of dirt, little hills of dirt. I don't know what that's for, if you guys know what I'm talking about.
But if we're talking about Coyote Ridge now and, the pickleball and what we would need to just have, a dual. I think it's a great idea to have a different dynamic going there as well and activate the park, would be wonderful. And then if the park is used in the morning by pickleball players in the afternoon, skateboarders at night, and maybe together, we could keep that pretty cleaned up up there.
But there's a lot that has to be, thought about in going in that the motion lights, the efforts need to be, put forth to catch and make an example of the few that are there. And if we step up those efforts in the beginning, and say, hey, this is we're going to make this nice and this is going to stay this way.
If we could maybe find an example or so, that would deter any of the other things that have been going on there. So if someone wanted to open up, a budget plan, or maybe we need a separate meeting for that or maybe a meeting with the the city. What do you think?
David:
As I mentioned earlier, the idea, I think moving forward would be to retain, the those that that are specialist in that area to present a plan to us. Given that the sundry of, of issues that we have on the table and the memorialized, we'll just download them with that and, and look for some recommendations and, and what are your thoughts?
Robert:
Yeah we'll have to give them a list of what our vision is and obviously and go from there. Excellent.
Denise:
If and when we do that, assuming we do, could we get some information like what the cost is on motion lights? I mean, be pretty all inclusive. And I love the idea about moving a skate park to a more visible area. But realistically, what's that look like? What's that going to cost? Because it is it is hidden, but it's also used by a lot of people.
I don't like the idea of getting rid of it necessarily. So I like some of the ideas that were brought up with some just some different ideas what to do. Obviously lighting is a big issue and I like motion sensors. I think that's probably our most cost effective direction, but I'd like to know a little more about it.
David:
Just in the spirit of of expediting the issue, if we move forward in retaining, this entity, this individual, that we can speak to, part of the scope would be to immediately be deployed to talk to each director individually. So that we don't miss any of the hot items that you all have in your own notes, etc., and bring those together as quickly as possible, with, with, with a proposal of sort and some costs that might go with it okay. Hearing nothing else on director's matters, at least from, item three or C 1,2, and 3’s perspective, is there any other items that at this time, my colleagues would like to bring up?
Couldn't be happier to see you again, Chris. Trust that things are well with you. Look forward to pressing the flesh, before too terribly long. So, thank you again for taking the time, to, and the guys, kudos to the guys, the technical guys that brought this all to, everyone at home and all of us here.
It was a real pleasure, in addition to the business that we were able to consummate. So thank you very much. Kudos, as always, to our communications director and his team, Comega one and one, Ken Smith, heck of a job this this month. I don't know that any of my colleagues have additional questions of your report. It was very comprehensive.
Chris:
No but i want to I do want to reiterate that they did a really did a really good job in the coding. Sorry. In working with me and getting this all up and running. We had a couple sessions where we were working through. Even even got my phone working just in case my, my camera or my computer didn't have access.
David:
Anyway, as you can surmise, the the emails in the, in the texts associated with with, all of that, I won't even itemize all the facets of it were, were lengthy and numerous and, and, so job well done. It seems like it only took a week, when it's been years that we've had the choice between internet providers but let's not go there. Anything else, guys?
Robert:
Thank Chris, because we know you're not in the same time zone. Thanks for making the time as well.
David:
All right, that being said, I'm going to open up item 15, which is the closing public meeting period. Oh, that just ended. I think we have served the public with everyone that wanted to speak, if not sole and separately, an individually together. Thank you for that. Close Item 15. Item 16. Is there a motion to adjourn?
Board-Voting All-Speak
I'd like to make a motion. I make a motion to adjourn.
I've got a motion on the floor by Chris Lewis to adjourn. Is there, I've got a second, I believe, from Director Crew. I’ll second. To to, adjourn. We can have two firsts if you want to as well. You just your lag just a little bit it must be tired. But all that being said, those in favor of adjourning this evening's meeting signify by saying I. I. I. I. I. Any opposed? Meeting adjourned.
Describer:
Meeting adjourned. Thank you for watching.