Board Meeting
May 27, 2025
Transcript
Describer:
Board Meeting Agenda Tuesday, May 27th, 2025, at 6:00 p.m.
7404 Yorkshire Drive, Castle Pines, CO 80108
I. Welcome. Call meeting to order. Pledge of Allegiance.
II. Roll call. Determination of quorum. Disclosure of potential conflicts.
III. Public comment period. (Three-minute maximum per person).
IV. Consent Agenda: The items listed below are a group of items to be acted on with a single motion, second and vote by the Board to expedite the handling of limited routine matters. The Board has previously received information on these matters and/or discussed them at a prior study session. Any board member may move an item from the consent agenda to the meeting agenda at this time.
A. Consider: approve the revised February 24th, 2025, Board Meeting Minutes.
B. Consider: approve the April 21st, 2025, Work Session Meeting Minutes.
C. Consider: approve the April 28th, 2025, Board Meeting Minutes.
D. Ratify claims for payment including check numbers 29150 – 29186 and electronic payments issued from April 19th, 2025 to May 13th, 2025 totaling $773,582.60
E. Consider: approve District Manager Employment Agreement
F. Consider: approve Amended and Restated Resolution Delegating Authority to the District Manager and Adopting Financial Controls.
G. Consider: approve the Field Services Technician Staffing Request
H. Consider: approve the Kennedy Jenks Filter Bed Rehabilitation Project Phase 2 Amendment
I. Consider: approve Kennedy Jenks Monarch Boulevard Waterline Replacement Phase 3 Proposal for Professional Services
Proposed Motion: I move to approve the items as presented in the consent agenda dated May 27th, 2025.
V. Consider: approve Tuesday, May 27th, 2025, board meeting agenda.
VI. Communication Director’s Quarterly Report. Bryn Webster & Chuck Montera
A. Review: Stakeholder Interview Summary and Recommendations Report.
VII. Finance Director's report. Eric Harris, CPA. Finance Director
A. Presentation. Mill Levies, Assessed Valuation and §§ 29-1-1701 to -1705,
C.R.S. & Implications / Qualified Property Tax Revenue
B. Finance Report Overview.
C. Review & Consider: Bartle Wells Water and Wastewater Rate Studies Proposal.
• Proposed Motion: I move to approve the Bartle Wells Water and Wastewater Rate Studies Proposal dated April 29th, 2025.
VIII. Legal Counsel's Report. Kim Seter, ESQ.
IX. District Manager’s Report. Nathan Travis.
X. Director’s Matters.
XI. Adjourn.
Board President Jason Blankaert:
All right. Good evening, and welcome to the Castle Pines North Metropolitan District board meeting. Today is Tuesday, May 27th, 2025 at approximately 6 p.m. we'll call the meeting to order and begin with 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.
Jason:
They're watching what you're doing. It's all right. We'll proceed with roll call now. Tera. Present. No conflicts. Jana. Present. No conflicts. Jim. Present. No conflicts. Leah. Present. No conflicts. And I'm Jason. Present with no conflicts. We'll, close out items one and two and move to item three.
The public comment period. The public comment is designed to share your thoughts and concerns with the district, but it's not an interactive discussion. If you'd like to give your public comment, please sign up at the back of the room. And that's already been brought up to me. So it looks like tonight we have Steve Dawes, Steve.
Describer:
Steve Dawes a frequent attendee, 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.
Jason:
Good evening Steve, if you'll just give your address, please. And full name.
Steve Dawes, Castle Pines Resident:
5703 Jasper Point Circle. Daniels Gate. I wanted to ask the board to start reposting the packets on the website. A couple of years ago, I made a request and the board did. And then today it wasn't posted on the website, although Nathan did email me and my wife a package, I think, I know this board feels it's important to have transparency, and I think the packet should be posted on the website so anybody can look it up.
The comment was made in a previous meeting that there were ADA accessibility rules that barred this. I don't claim any expertise at all in that, and I don't know anything about it other than what I read, which includes the U.S. Department of Justice Civil Rights Division factsheet stating that for special districts, that requirement doesn't go into effect for until April 26th of 2027.
So that's more than two years away. I noted that the City of Castle Pines still posts its materials PDF materials on its website as of this afternoon. there is a concern, perhaps, that if you post PDFs on your website that somehow in the future, you might have to make those Ada accessible, but that's not true in my view, according to this fact sheet.
if it's a material that's not currently being used, but it's old materials such as old finance reports or old engineering reports that are not under current use, then they do not need to be made ADA accessible. if you had, for example, a form that was put on the website two years ago and you still use that form, then in two years you have to make that ADA accessible.
what they're using is what they call web content accessibility guidelines. WCAG version 2.1, level AA, which is the technical standard for state and local governments, web content and mobile apps. And in looking at the material, I read from the fact sheet and also a PDF accessibility review paper posted by Adobe, which is a leader, if not the leader in PDF documentation creation.
It appears that by setting up a computer at two years from now to accommodate the requests and with the programs that they provide, it can be done made web accessible relatively easily, certainly far less than the $11 a page that was cited to us before. Now, as I say, I'm not an expert on this, but if you don't have to make ADA accessible, your archive documents and only the ones that move forward in two years, then I think there would be ample time to, set up a program so that documents created on, say, for example, word now can be formatted to be ADA accessible when they're converted to PDF format under one of the
Adobe programs. So I'm again making a request that you post your packets on the, website.
Jason:
Thank you. Steve. Steve, can I have you shut off the mic? Thank you. All right. Appreciate it. Having no more comments. Anybody? Sorry. Anybody online have any comments?
No. Okay. Hearing no more comments will close out the public comment period. And we'll open item number for the consent agenda. The consent agenda tonight consists of nine, nine items. Consider approving the revisited February 24th, 2025 board meeting minutes. Consider approved. April 21st, 2025 work session. Meeting minutes. Consider approve the April 28th, 2025 board meeting minutes.
Ratify claims for payments including check numbers 29150 to 29186 and electronic payments issued from April 19th, 2025 to May 13th, 2025, totaling 773,582 and $0.60. Consider approving the District Manager's employment agreement. Consider approval amended and restated Resolution, delegating authority to the district manager and adopting financial controls. Consider approving the field Services Technician staffing request. Consider approving the Kennedy Jenks Filter Bed Rehabilitation Project phase two amendment and consider approve Kennedy Jenks, Monarch Boulevard waterline replacement phase three proposal for professional services.
Board Member Tera Radloff:
I moved to approve the items on the consent agenda. Items A through G and remove item H and I the two Kennedy Jenks. for a separate motion. Okay. Do I have a second?
Board Member Jana Krell:
I'll second.
Jason:
Okay. We'll move to vote. Tera I Jana, I Leah. Hi, Jim. I, I, I vote as well so that motion passes.
Describer:
See the Agenda above to reference Items H and I referenced by Tera. She also references these pages: on page 41 of the board meeting packet for today it references a Kennedy Jenks Filter Beds Rehabilitation Project - Phase2 (Final Design) Proposal Amendment Castles Pines North Metro District proposal under Compensation on page 51. Table 3 - Proposed Phase 2 Budgeted by Task, the Total Project Budget (Phase 1 and 2) is $1,005,833. And on page 55 of the board meeting packet, the Proposal for Professional Services Monarch Boulevard Water Line Replacement Phase 3 Castle Pines North Metropolitan District (District) K/J Project 2546067*00, and on page 58 of the packet under Basis of Compensation the Consultant Table with Billing & fee rates lists a full total of $84,210.
Tera:
Okay. So I'll, I'll make this quick. I just have a quick question for staff regarding the two Kennedy Jenks, proposals. And it may be moot since we just, adopted the financial controls. But those two, project amendments are on a time and materials basis, and I don't recall us contracting in that method before.
So, they do have schedules. They don't expressly state like on page the, our page 51, whatever we call that, proposal. What do you call that? Our packet. Page 51. So for the one it would be it doesn't expressly state not to exceed the 1,000,005 833. And on our packet page 58, the other one would be not to exceed 84 to 10.
Again, I don't know if that's pertinent since we have the approval controls, but I don't recall us engaging in a time and materials manner with them. And so I just wanted to kind of pull those out for quick clarity.
Nathan:
yeah, I can go back to Kennedy Jenks and, excuse me, have them add just some clarifying language that that's, not to exceed number and that they need further approval. We come back, if the board's comfortable, we can approve it pending that adjustment.
Tera:
Wanted clarity on that. I mean, I'm happy to make a motion to approve consent agenda item items.
Number H Kennedy. Drinks. Filter. Bed. Rehab. Rehab. Project amendment 2 and Kennedy Jenks. Monarch Boulevard waterline replacement phase three with more clarifying language. I mean, it's in their schedule, but it doesn't expressly state not to exceed those numbers that are in their schedules. And that would be my request and my motion.
Jason:
Okay. Having a motion. Do we have a second?
Board Voting All Speak:
I'll go ahead and second it having a second. We'll move to vote Tera I Jana approve. Jim. Hi, Leah.
Approve. And I approve as well. So the motion passes and we'll have that, documents not to exceed. Not to exceed. Okay. Thanks, Nathan.
Jason:
All right. We'll move to item number five now to consider approving. Tuesday, May 27th, 2025. Board Meeting agenda
Board Voting All Speak:
I moved to approve the Tuesday, May 27th, 2025 board meeting agenda I second. All right, having a second. We'll go to vote. Tera. Hi, Jana. Approve. Jim. Approve. Leah.
Leah. Approve. Approve! All right. I approve as well. So the motion passes.
Jason:
Okay. We'll close out item five and move to item number six, the Communication Director's quarterly report with Bryn Webster and Chuck Montera. Good evening.
Bryn Webster, Account Manager, Signer Communications:
there we go.
Chuck Montera, VP Sigler Communications:
Okay. Please begin whenever you're ready. Great. Thank you. My name is Chuck Montera. I'm with Sigler Communications. I'm with my colleague Bryn Webster, also a Sigler communications. I'd like to first and foremost thank the board, Nathan, for our ability to be here today in helping you with your communications, efforts. Our presentation will be short, and it will, basically bring you up to speed on all of our communications to date, since we've been hired, by the district.
Describer:
On screen. Opening Slide
CPNMD Spring 2025 Communications Board Report 5.27.25
Slide 2
Initial Communications Efforts
Stakeholder interviews + report completed
Communication calendar + branding kit created
Crew cards suggested/created
Social media posts (3 in May), calendar and new templates underway
2 Castle Pines Connection ads completed
Hydrant flushing release/CPC story submitted
Quarterly eNews – spring draft ready to share
May billing insert on text alerts + schedule distributed
Website audit (underway)
Full communications plan (underway)
Chuck:
we're going to share some of our initial findings from these stakeholder interviews that we conducted. We talked to some of you on the board and some of the folks here present, at the, at the meeting, we're also going to, share, some of the suggestions, communications suggestions that came out of these stakeholder interviews. We like to basically, when we develop communications plans for clients, we like to talk to the community first, find out what their issues, questions, and concerns are, and then incorporate those into the communications plan.
We're also going to outline to you, how our communications efforts on behalf of the district will be measured. And then we would like to open up the floor to any questions and and answer session, from you all. So with that, I'm going to turn it over to my colleague, Bryn Webster. She's going to talk about, communications efforts to date.
Bryn:
Thank you. Chuck. So obviously we did a in addition to doing a lot of backgrounding, we've tried to catch up on some of the communications that have been done recently and make sure that those continue going forward. So in addition to the report that Chuck mentioned, we've created a communications calendar and a branding kit to make sure that all of our colors and fonts match and that they look cohesive with what you've shared previously and everything we create going forward.
One of the things we created was some crew cards for construction members who are out on the field, who have questions so that they all go to Nathan. we also worked on some social media, and may we've created a calendar for future posts and working on some new templates. So they also have cohesive look and feel. You can look through some of the other things here, but it involves ads, some releases, some stories.
We're working to launch a quarterly e-newsletter. The Spring Edition is almost ready to go, and we'll be doing that on a quarterly basis so that people who are also not necessarily residents of the districts itself will be able to find out important information, since that was a request. And then we're also underway on a website audit and a fall communications plan based upon the audits and the reports.
I'll hand it back to Chuck.
Describer:
On screen. Slide 3 Stakeholder Key Findings
Increased satisfaction but lingering skepticism
Transparency and accessibility are paramount
Digital and print comms channels both important
Events and in-person interaction builds trust
Emergency comms need to be immediate/reliable (texts)
Chuck:
Thank you. Bryn. Okay. So what we're going to do now is just talk about some of the key stakeholder findings, our stakeholder interviews we talked to about 13, individuals. It was a myriad a cross-section of your community. And, we're going to just kind of highlight some of the key findings that we had in the first one.
The first bullet here is I'm not going to speak to all the bullets. I know we all can read. So, I'm just going to kind of highlight what I think are some of the more important bullets. The first one being, the increased satisfaction with how the district is operating. but there is still some lingering skepticism out there.
And when I say skepticism, what I'm basically referring to primarily is just where is the district going? in in their search, of finding sustainable surface water, supplies. And we had found in our, interviews that the, the Parker water inclusion that that did not go through some folks didn't fully understand why that didn't go through.
So I think it's important for the district, maybe just to kind of close the loop on on that, potential inclusion and then also talk about where you all are going forward. And I'm specifically talking about the reconnaissance report. I know that you've undertaken that, and that's you're looking with other, neighboring utilities at looking at, sustainable water supplies.
So we found that that's something that could probably benefit your ratepayers by explaining a little bit more. the other thing that I'd like to talk about is, folks, may, because of your demographics, you still have people that are reading the newspaper, on a daily basis or whenever they receive it in, in the mail. There are other stakeholders that we talk to that prefer to get their information via social media.
Nextdoor was a very important, social media platform that was mentioned. It seems like there was a consensus that the folks that are on social are looking and watching, and reading next door. So that's going to be part of our communications plan recommendations is to increase, your visibility on next door. if I could have the next slide, please.
Describer:
On screen. Slide 4 Stakeholder Key Findings
Infrastructure projects/water quality info = top priorities
Improved board meeting summaries needed
Opportunity for social media/website improvements
District can better leverage existing relationships
Lack of understanding about why the Parker Water Inclusion did not happen & next steps
Chuck:
Thank you. Okay. Some other key findings. communicating what your capital improvements are all about your infrastructure projects. People want to know what are the big ticket items that the district has and what needs to be done, and how are you going to, achieve that? I know that one of your missions is to improve your infrastructure. And, folks want to hear about it.
So we've got some recommendations on how to get the word out on that quality water quality information, your consumer confidence report that I know you'll be issuing here very, very shortly is another, topic that folks are very interested in and want to understand a little bit better. one of the things that we, heard from some of your partners and what my partners, I'm talking about the city of Castle Pines and also the Chamber of Commerce.
They want to help tell your story. And they said, share important information with us. And we'll use our platforms, social media, newsletters and otherwise to help communicate what you want your residents and ratepayers to know through their platform. So there's some opportunities there as well. The last bullet again, I talked about this, in my opening comments, but the lack of understanding about the why, the Parker Water inclusion did not happen.
And the next steps. I know there's a lot of, interest in this topic from your residents, and, so our communication plan will contain, our recommendations on communicating that information to your ratepayers.
Describer:
On screen. Slides 5&6 Communications Suggestions
Key messaging to address stakeholder concerns
Define the District’s comms goals (coming plan)
Communications calendar (created)
Promote opt-in Daupler text message system
Adjust website for accessibility and navigation
Use Nextdoor and local news more effectively
Board meeting highlights doc
Strengthen event engagement – District-specific event
Share resident success stories on conservation
Foster city/chamber collaborations
Conduct annual satisfaction surveys (city survey)
Commit to long-term trust-building
Chuck:
So, this next slide, A is addressing some communications suggestions that came specifically out of our stake. holder interviews. And, so the one of the first, suggestions was that, you know, it's important to make sure that you all are, singing from the same song sheets, so to speak, conveying the key messages that are important, to your residents and, so operational excellence is something that I know that you're striving for, and that's something
that we feel is very important to communicate, to your residents. the need on what, the district is doing to secure surface water. Sustainable water is another, message, another, information point that people would like to understand. the website. Thank you. Leah, your board member, Leah, for your input on the website. We did look at that in our audit and incorporated some of your thoughts in our analysis.
It looked like most of the input that Leah had on the website has already been incorporated. But one of the things we heard from, our interviewees was the importance of your website. And it needs to be easy to navigate. It needs to be easy to find information that they're looking for. So that's one of the things that our plan will address is improving the accessibility and navigation.
of your website, I already mentioned, next door, we want to improve the opt in for your Daupler program. We wanted to get as many text phone numbers out there as possible so that folks can be made aware of any emergency, issues immediately through your Daupler program. That's a very excellent program by the way. We have a lot of clients that use it very successfully.
And I'm glad to see that you're doing, the same. Some of the other communications, suggestions, board meetings, and highlights. your minutes are very thorough. They're lengthy. They're somewhat difficult to to go through to glean, information. One of the recommendations are suggestions that we're going to have is maybe providing an overview of the highlights of the outcomes from these board meetings, and maybe posting that on your website.
you're, strengthening event engagement at, at, at community events. Very important. we already talked about leveraging your relationships with the city and the chamber to get your message out there. One of the things that came up is people want to hear what the district is doing successfully. You're doing many things successfully. One of those is increasing the your residents awareness of conservation.
So one of the recommendations was to maybe find some residents who are saving water, maybe saving money through conservation that the district promotes. I'm talking about in, in part, some of the resource central programs that you were part of and maybe tell those stories through the connection as an editorial earned media type of stories. obviously, I know that you all have a commitment to, long term trust and building, and that's one of our primary goals in our communications plan, is to continue to help build that trust and the education of your residents, through, Streamline Communications.
So now Bryn is going to talk about or do we have another slide on suggestions? Okay. So Bryn is going to talk about how we're going to measure our communications efforts on behalf of the district.
Describer:
On screen. Slides 7 Measuring Our Success
Unique, trackable urls for ads, news stories. eNews open rates, social media traction.
Surveys/feedback at events, via city survey & District surveys.
Follow-up with key stakeholders.
Questions?
Bryn:
Thanks, Chuck. So obviously we want to make sure that not only are we putting information out there, but it's actually doing what we want it to do.
So we have a couple different ways that we'll be measuring the success of what we do. On communications for the district. One of these is like measuring what we actually put out there. So we will be keeping track of our specific URLs, our links that we put in ads, that we put in news stories to see how those perform, as well as open rates, social media traction, engagement, all of that.
But then also our goal is to actually hear from residents and from you and from the community about how the communications are doing. So in addition, we want to piggyback on there's a city survey. It goes out every three years. They might be open to us, including a question in that on the water district specifically, as well as doing surveys at events and also maybe doing an annual customer satisfaction survey to track how we're doing.
And then lastly, follow up with even some of the same key individuals who participated in our initial report in order to see in a year or two from now how we're doing compared to how they felt we were doing or you guys were doing before. So that's kind of our goals for measuring the success. There's a lot more information in the actual report that was given to you, so definitely feel free to take a look at that.
Are there any questions at this time that we chuck and I tag teamed on putting together the report so we can answer hopefully anything you have to ask.
Tera:
Well, first of all, thank you for coming and thank you for all this work. I really love making sure that it's measurable. I do love the idea of, getting maybe a question in the city survey as we are partners and for all of our residents.
and I really liked the, the key communication messages, the specific, the specific stuff that you put in the packets and where you're going with that. That was specific enough for even me to understand. So that was it was amazing and really, really nicely done. I'm very encouraged about our engagement with you and, reaching our community more clearly and, with, with the messaging that you've come up with.
Chuck and Bryn:
So thank you. Thank you. Yeah. Thank you.
Jana:
I had a quick question. It was very specific. What is a crew card? And I'm asking just because I'm interested in using this in my own work.
Chuck:
and yes, I'll answer that. So there was an issue, out in some of the neighborhoods where sumps were running continuously. And so they would go to the folks out in the field, the field workers, and ask them specifically what's going on.
And sometimes they weren't conveying the correct information, and they oftentimes were not going to Nathan Travis to find out what the correct information was. So what we did is we just created a real simple editable PDF that we're calling a crew card that will literally allow Nathan and the folks going out in the field hills that you can fill out the crew card to say exactly what the work is that's being performed, why it's being performed, the estimated length that that work will, last and then and as big as we can make it on this crew card with any questions, contact Nathan.
What what we've seen happen in it's not just in Castle Pines, but in other municipalities is people will talk to the folks in the field, and they often don't know exactly why they're doing what they're doing. And, it'll lead to speculation and rumors and hearsay. And that type of thing. So we're hoping that our crew card will, immediately give pertinent information to those that are asking the question.
And then secondly, get that that question over to Nathan so that he can answer it quickly and adequately.
Jana:
So Chuck it's a flier. It's a
Chuck:
yeah, it's basically, like an oversize postcard.
Jana:
Okay. And then the crew has it on site.
Chuck:
Yes. So they have copies and they can give it to anybody that approaches them out in the field.
Tera:
Yes, sir. And okay, great. Because I wanted to know what they look like to do. We also do door hangers or anything or is that kind of the same thing or.
Nathan:
Yeah. So we do we'll do door hangers or tag doors for specific projects. More if we've got like an anticipated shut down or some sort of like traffic impact.
Describer:
On screen. CPNMD Water System Maintenance Notice with a Notice of Work section, a Description, and Expected Duration
Nathan:
This is really more for the people that show up out in the field. Terrence, if you throw me back up on the screen up there, this is this is what they look like. And so we've already sent them out, both with the leak detection work on Pine Ridge. And then our flushing and valve crews have been carrying them around.
I printed off enough copies, so resident comes up, they hand him the crew card, say, this is all I can tell you, and redirects to me.
Jana:
Perfect. That's exactly what I wanted to see. Thanks to You Nathan. Thanks Chuck.
Jason:
That's a great idea. Leah, did you have any questions?
Leah, are you with us?
Leah:
No, No Questions?
Jason:
Okay. Jim, did you have any questions?
James:
just. I like the crew card idea as well. I was wondering if there's any, potential. You ever see these political signs? You just kind of push it in your lawn or something like that? Something that size that you know, you could do.
In addition, if the guys are flushing hydrants or something on monarch or what have you, that you could literally just push it into the side of the street there where they're doing the work, say, you know, North Metro, you know, district, hydrant flushing or waterline flushing up, simple that as people drive by, they know what's going on.
You know, the crew card thing is cool to. But, you know, maybe if they just knew what you're doing, if there's any traction there, and it.
Jason:
That's an interesting idea, Jim. Maybe have a quick, QR code on there, too, that they can get our website and see their schedule of when we're flushing and stuff.
Chuck:
I like that, I think that's a very good idea.
And I understand that you're flushing will continue into early July. Nathan, if I'm not mistaken, I did want to note that, we did contact Terry Wiebold at the connection, and we did put together a release on your flushing, process and protocol. And that will be running in the June issue of the connection with a supporting photo.
But, yes, I do like the idea of just a yard sign that you could literally put in right by the hydrant. That with a QR code that'll bring it back to the flushing information on the website or any brought projects too. Exactly. Yes, yes.
James:
Yeah. I was thinking projects too, because, you know, we do have large things going on.
And I totally agree with you guys. about and we've said it before in other meetings about we're spending a significant amount of the district's money to do all these, I think, very important things that are going to pay off and they're going to improve our ability, and lower our maintenance costs going forward. And I think it's really important for people to hear about those things, and they should almost be able to flip through that when they go to the website.
Like there should be a button for important capital projects or capital projects ongoing or something like that. And, you know, we talked in last year about some meetings where, you know, you could literally have a live map of the district that would have like little asterisks or numbers or something on the map. So somebody who's walking their dog on, what are these guys doing?
They could just click on the one, two, three, 4 or 5 and and see what that is. And it would have like an estimated, project length and cost and a description of what we're doing, you know, something simple, top level.
Bryn:
Totally. One of the things we're working on right now, actually, is updating the project information to make sure that it's up to date and understandable.
And highlights.
James:
Yeah, thank you very much. And I appreciate you guys coming in. Thank you.
Jason:
Thanks, Jim. Anybody else have any questions. And hearing none. We'll go ahead and close this out. Thank you guys very much for the hard work you're doing. We really appreciate it. And we're looking forward to some some exciting results from this. So we will close out item number six and we'll move now to item number seven.
The finance director's report with Eric Harris. Good evening Eric.
Financial Director Eric Harris:
Good evening board. first I would like to turn your attention to page 108. I want to discuss a topic, related to qualified property tax revenue with you. thank you for the opportunity for me just to kind of bring this short, discussion and presentation with you today in person rather than last week.
Describer:
On screen. Page 108 of the Board packet.
TO: Board of Directors – Castle Pines North Metropolitan District
FROM: Eric Harris, Elevated Clarity (EC)
DATE: May 27, 2025
RE: Work Session Report – May 2025 Board of Directors Meeting
Topic – Mill Levies, Assessed Valuation and §§ 29-1-1701 -1705
C.R.S. Implications / Qualified Property Tax Revenue
1.) District Financing History
a. Financing History
i. General Obligation Debt
1. Several Series of Original & Refunding Financings (RETIRED)
ii. 2008 COPs – Acquire Storage Rights in Rueter-Hess Reservoir (RETIRED)
iii. 2009 COPs – Acquire 70 Acres of Lan and ½ Share of Platteville Irrigation. & Milling Company, 2010
Acres of Land and 80 Shares in Fulton Irrigation Ditch Company (RETIRED)
iv. 2010 Promissory Notes – Meadow Island and Lupton Bottom (RETIRED)
v. 2015 Refunding COPs – Refinanced items iii & iv. (RETIRED)
vi. Enterprise Debt
1. Colorado Water Conversation Board Loans (RETIRED)
2. Chase Loan – PCWRA Expansion
b. Mill Levy History
2.) Property Taxes
a. Assessed Valuation & Classes
i. Timing
1. Valuations (Every Two Years)
2. Assessments (Every Year)
3. Taxes (Assessed Every Year in arrears and collected Annually)
ii. Classes & Abstract
b. Assessment, Calculation & Certification
i. Assessment Rates & Exemptions
ii. Calculation
1. Service Plan Adjustments
iii. Certification
1. Board Approval & Certification
c. District Revenue Recognition
d. Other Taxes
3.) Limitations
a. Voter Authorizations
b. Service Plan Limitations
c. 5.5% Limitation - §§ 29-1-301
d. Taxpayer Bill of Rights (Art. X, Sec. 20)
Eric:
So, but this is, the topic I just wanted to cover with you tonight. this is a pretty, in-depth topic, so I will certainly take a deep dive on anything you want. but the thesis statement for this, I just want you to be aware of it doesn't substantial affect this district unless we substantially change our financing or operating structure going forward.
So I just want to kind of take that off the bat, but it is something for you to be aware of, moving forward. And it's something staff is my I am monitoring as well. So first and foremost, on page, 108, sorry, excuse me, 110. You see, I have a brief history of the district's financing has occurred and what that financing was paid for.
Describer:
On screen. Page 110 of the Board Packet.
Castle Pines North Metropolitan District
History of Mill Levies, Assessments, Assessed Valuation & Actual Activity Table
Table Sub section Titles:
Assessment Year 2004 through 2024, Note 3 These are based upon Preliminary Assessed Valuations
Budget Collection Year 2004 through 2025
Assessed Valuation Note 4 Excludes Exemption Classification/Value Type
Residential Assessment Rate 7.96% down to 6.7% in 2025
Assessed Valuation $110,893,170 up to $282,433,210 in 2025
Residential Valuation 71.3% up to 84.1% in 2011 and down to 75.5% in 2025
Commercial Valuation 28.7% down to 16.1% in 2017 and back up to 28.9% in 2023 and 24.5% in 2025
Market Valuation Note 4 Excludes Exemption Classification/Value Type
Market Actual Value $1,100,097,967 up to $3,819,975,276 in 2025
Residential 90% up to 96.7% in 2025
Commercial 10% down to 3.3%
CPNMD Mill Levy
Subsections
Operations Mill Levy in 2004 - 19 until 2022 15.790, then in 2024 3.522 and in 2025 3.5
Debt Service Mill Levy in 2004, 24, in 2007, 22, in 2017, 11.7, in 2018 to 2025, zero.
Total Mill Levy in 2004, 43, in 2007, 41, in 2017, 30.7, in 2018 to 2021, 19, in 2022 to 2023, 15.79, in 2024, 3.522 and in 2025, 3.5
Total Property Tax Revenues in 2004 $4,768,406.31 down to $988,516.24 in 2025.
Eric:
so I won't go through depth with this, but you see a summary of the assessed valuation, history, historic mill levies. You know, what that service, as well as what instruments paid for, what particular assets over time. In summary, what you you need to take away from this. The district did, retire its legacy debt in 2018. So thereby that mill levy went away in 2017 that you saw which is a substantial win for this district as well.
since that time frame and during that time frame, there was some financing that occurred to purchase certain assets for the districts. We no longer have those assets as well as what, because we have sold off certain assets, and the only debt that the district currently does hold it in the form of a long term debt is the Chase loan for the, expansion of Pond Creek water.
So just wanted to kind of make that point for you. any sort of future debt. Of course, we would have to go after, voter authorization if that were to be, the choosing of this district. so you see that mill levy history as well. Any any particular questions over the last 20 years that have, you know, that bring to mind that you would like to discuss?
If not, I can certainly move forward a little bit. Jim or Leah, do you have any questions?
James:
none right now. Thank you.
Leah:
No questions from me.
Eric:
Wonderful. just that point number two on that page regarding property taxes. I know we all, as property owners, are familiar with the concept of what we pay, you know, in the form of to your local governments, but in the form of time frame as it relates to assessed valuation.
You know, there is a huge timing difference associated with this. So, just kind of want to state it. For the record, right now, you receive property owners receive every two years around this time frame of every single year the assessed valuation associated with their property. this is for all of us residential of same thing happens for commercial and there's multiple different classes of property that occur in that.
it's further on the, in the packet, many different classes of, property that are at different assessment rates. So as you are perhaps aware, the state Assembly has tinkered with what the valuation percentages are with certain classes of property over time in to solve certain, challenges with raising, rising property values across the state.
Also differentiating between geographical areas across the state. You know, we have the Front Range, we have the Western Slope, we have the eastern plains. they have to kind of strike a fine balance between many different things. And their solution has been where we are today of with accounting for qualified property tax revenue. So you have changes on what that assessment rate is for residential property within the district.
as a component, you will see in that schedule I just mentioned with the historical property, a majority of valuation within market valuation within the Castle Pines North is in fact residential, even though we do have components. Obviously, the front right out here on the, facing the, interstate of commercial property as well. So want to make that quite that point.
And residential values have gone up higher than commercial values over the last substantial number of years. to confront this, there has been multiple different tools that will get in over time. But really, I would like to make the point of your assessment is always two years essentially. Well, your property taxes are one year in arrears. And you said that that valuation is set for a period of two years.
So and then there's a market study that occurs. So at any particular time for a dollar of property tax, property taxes that come with it to the district it's associated with, valuation has happened in prior years. So just kind of would like to make that point. on page 126, what you have is a summary of what exactly has been done.
Describer:
On Screen. Please see page 126 of the board packer, this information was not readable on screen and Eric will describe relevant information.
Eric:
And this is also in landscape for you on your, in front of you as well, on one side or the other, if you want to look at it. what you see in this year's valuations for property owners, value. Sorry. Excuse me. Let me get the timing correctly for this. Valuations for last year for property taxes that are collected and remitted to the district and paid this year.
there was an exemption amount associated with that. And so it's it is complicated, but there's a lot of different measures that have occurred, for property tax owners to, for the state Assembly to get a fine balance, if you will, for those property tax dollars. So what does all this mean? You know, I just want to kind of boil this down for you.
There are many different levers that, and authorizations that a special district can utilize as well. And of course, it can by service plan authorization, voter authorization. This district, in fact, was formed many years ago, and so its service plan may not be adjusted to account for many different items that other special districts may be able to account for.
As it relates to all these items that have changed over time. So it's just something for us to consider as a board and for staff for you as we look for the next five, ten years for this district. What are the objectives so that we have the appropriate tools to account for everything going forward? So, what are the what are those guardrails?
Of course, service plans, IGAs. In summary, I think as we all know, we the district has a service plan authorization. We further limited by an IGA, with, the city of Castle Pines. There are several other items, and I can go into detail of these as well. There's a, you know, what we call the old limit, 5.5% limitation.
We have the Tabor Tabor, of course, from the early 90s. in the district, you know, those give restrictions on local governments, of course, to for its ability to collect and retained revenue, property tax revenue. That is not water and wastewater enterprise revenue. so that's just something for us to be aware of. And that's further down in the outline here.
so what has changed over the last couple of years? The district, you know, excuse me, the voters considered, prop h h a couple of years ago and that had in fact failed. but the solution in place of all that the state Assembly came up with is to, basically restrict the valuations of residential properties, thereby, restricting the ability for special districts to collect revenue in the future.
So for a mature district such as this over a period of time, there's kind of a, a limitation and growth associated with it. So in the form of calculation, the district calculated the district's mill levy. We have to bifurcate that collective assessed valuation in accordance with the data that we receive from the county assessor that's collected from all those different classes of assessed valuation that rolls up over time.
So long winded way of saying it's going to get complicated. and that's part of the process for this. And there's certain carve outs associated with that for new development. But the district doesn't have much new development area. So in summary, it's you have to roll this assessed valuation through the filter of what's the timing associated with it, what's the classes associated with the type of property.
and also as it relates to those valuations, how much value is going to be within the bounds of the district in the future? This has greater implications for districts that are just starting out, if you will. Developer districts, has greater implications for districts that rely quite a bit on property tax revenue. The great thing about this district is we are relatively mature.
We are, we are. We have two enterprises that we rely on rates and fees to fund the district's operations. so really, there's no substantial necessity to address this right now other than from an equivalency standpoint. When you look at the three and a half mils that the district does levy currently, as, it's not the same equivalency of the neighboring mills, if you will, because we're we're not accounting for certain things that may be that local government may account for, even in just the, last decade, the residential assessment rate has dropped by almost 20%.
So we have to kind of account for that calculation in a lot of districts, not necessarily here. We're levying the same Mills equivalency as it was over 20 years ago in this district. So there's a little bit of a dilution effect, if you will, associated with that. But really would just want to make you aware of there's a lot of changes happening or have changes that have happened at the state legislature, and we just have to account for those looking forward.
As we said, our strategic plan, if that makes sense. In that strategic plan being what is the district's, objectives? What are solutions for renewable water? What are the costs associated with that? and things of that aspect. So a lot of information there. but really from going back to my original statement, what that means is because we're relying a lot on rates and fees as a majority of revenue for the district.
It's something to be aware of. However, if there's ever a substantial change in this district as it relates to some sort of agreements with neighboring local governments or anything, it's something that we definitely have to consider and work to get a, you know, a financial plan in place, if you will, to account for that, those cash flows, if that makes sense.
But the this district has been blessed with a pretty broad base, if you will, of and it's almost completely built out as well. So and you can see that in the summary of the valuations and that one of those, first pages that I mentioned. So, like I said, I would gladly to entertain any questions you have associated with this, but, a lot of a lot of information there.
but the impacts are what I just said. the district does rely on rates, fees and tolls to service its operations, mainly. and we just have to monitor and maintain that we have the appropriate authorizations going forward as we consider multi fiscal year obligations or agreements with neighboring local governments. Any questions?
Jason:
So this this we just had a great study done last year.
this that can become an annual thing.
Eric:
Yes. that would be the goal of this. so a little bit separate. The rate study looks particular just for rates, fees and tolls to cover the operations. Over the last several years, we've made a strategic shift of property tax revenues used to fund the general operations of the district, as well as parks and open space.
Well, of course, you know, we all know the time frame associated with that. We no longer levy that general fund mill levy in its totality to fund those operations. That is, you know, those operations are now covered by the city. And so now we're at a net 3.5%. Well, where those cash money's rolls from is go into our general fund funds, certain obligations that the district does have.
And those are transferred under our limitations to the water and wastewater fund as well. So to answer your question, yes, we'll be considering those in the form of our revenue. But a majority of the revenue by default is for utility revenues.
Jason:
Thank you. Of course. Jim, do you have any questions?
Jim:
Yeah, no, but, thank you Eric. It was great. You're welcome Appreciate it.
Jason:
And, Leah, do you have any questions?
Leah:
I do not. And ditto what Jim said. Appreciate it. You're most welcome.
Jason:
Thanks, Rest of the Board. Any questions? Thanks, Eric. I think that's been very helpful. And I like the direction you're going. Of course.
Describer:
On screen.
TO: Board of Directors – Castle Pines North Metropolitan District
FROM: Eric Harris, Elevated Clarity (EC)
DATE: May 27, 2025
RE: Financial Report – May 2025 Board of Directors Meeting
General Fund Activity
As of March 2025, the District recognized $457,470 in property tax revenues received from Douglas County and $19,183 in specific ownership tax revenues. This represents 46.20% of the budgeted property taxes from the District’s mill levy year-to-date. This is a higher percentage than compared to-date in 2024 (40.99%).
Enterprise Fund Activity
Billed water usage in the month of March 2025 was 18,810,000 gallons, a 6.01% increase from water usage in March 2024. Cumulatively through March 2025, the District has billed 5.60% higher operational flows than in 2024.
Total Billable Usage table by the Gallons and by the Month from 2022 to 2025 Summarized here:
Starting in January 2022 20,046,000 gallons, to December 2022 29,684,000 gallons, with a cumulative usage of 657,682,129 gallons for the year. In January 2023 26,439,000 gallons, to December 2023, 17,116,000 gallons, with a cumulative usage of 498,680,003 gallons for the year. In January 2024 20,217,000 gallons, to December 2024, 20,563,000 gallons, with a cumulative usage of 640,563,000 gallons for the year. In June and July of each year usage rises dramatically. In January 2025 20,222,000 gallons, to April 2025, 30,472,000 gallons, with a cumulative usage to date of 88,356,000 gallons for this year.
Water services revenues (volumetric charges) for May (March) 2025 were $364,476. Wastewater services revenues (volumetric charges) for the same period were $151,947. Wastewater service charges are assessed and set based upon the winter usage for individual account holders. As it relates to April usage activity, there was higher than anticipated usage than in the prior two years. District Accounting revised water revenue upwards from up from $2.996MM to $4.044MM to account for this usage trend. We believe that this is as a result of a warmer than anticipated April, which led to property owners turning on irrigation earlier than usual.
Eric:
yeah. So continuing on, we have the financial report overview on page 76. You will have our monthly financial reports. One quick, clarification, I would like to in the final paragraph, first line and I will make this correction. The district's records I reference May 2025. That should be March 2025. a couple first off, a couple, big updates here.
We we have been able to present the district's financial statements, and that includes the balance sheet and updated projections with this, one of the big takeaways we had was, and we noticed from an operational standpoint on the revenue side is irrigation started earlier than anticipated. And so we had a lot of billings that occurred in April.
but this is just a march financial statement. So we were able to take into account projections associated with those April closeout numbers into our projection numbers that you see. So you can see a pretty high, you know, you know, an additional $5 million, I mean, 5 million gallons were flowed as compared to the same period for last year.
In addition, you know, of course, we obligate filing one is up and running and and completely built out obviously. And so we're getting full utilization from all the, folks living in the south southern part of the district as well. So just we're continuing to kind of learn quite a bit about what the usage requirements are on that side.
so going forward, I think the report stands on its own without any questions. But I did note certain expense variances, which we are all well aware of and increased, R&M associated with that. And in addition, by the end of March, we were able to consolidate and close out one of the district's, bank accounts.
So the district does, as I mentioned before, in prior meetings, has a one operating account in one, investment account with many sub accounts associated with it. on page, the balance sheet. Nathan, I don't have that reference on mine, but if you can pull it up, the balance sheet for the district is what we call, a budgetary basis.
You know, I've you've heard me utilize that term before. What does that mean when I say budgetary basis? we are accounting for all the budgetary, transactions that need to be controlled and appropriated by the district. So primarily, we are managing your revenue and expenditures, you know, in accounting for everything. So every dollar spent runs through this.
Describer:
On Screen. On packet page 80.
CASTLE PINES NORTH METROPOLITAN DISTRICT
BALANCE SHEET
BUDGETARY (NON-GAAP) BASIS
December 31, 2024 and March 31, 2025
Unaudited Actual 12/31/2024 and Unaudited Actual 3/31/2025 for each Current Asset
Cash - First Bank $99,985 $0
Cash - Citywide Bank $874,626 and $935,698
Cash and Investments - ColoTrust $49,770,637 and $48,715,132
Cash With County Treasurer $6,335 and $44,592
Accounts Receivable - Utilities $576,099 and $602,826
Accounts Receivable - Miscellaneous $356,894 and $408,065
Property Taxes Receivable $988,516 and $531,807
Prepaid Expenditures $118,791 and $0
Total Current Assets $52,791,883 and $51,238,120
Unaudited Actual 12/31/2024 and Unaudited Actual 3/31/2025 for each Current Liabilities
Accounts Payable $2,064,317 and $926,570
Payable to City of Castle Pines $81,561 and $82,722
Retainage Payable $32,878 and $46,211
Deferred Property Taxes $988,516 and $531,807
Total Current Liabilities $3,167,272 and $1,587,310
Fund Balance
Restricted - TABOR $79,247 and $23,416
Unrestricted - General Fund $69,231 and $0
Conservation Trust Fund $46 and $0
Water Fund $43,714,236 and $43,584,067
Wastewater Fund $5,761,851 and $6,043,327
Total Fund Equity $49,624,611 and $49,650,810
Total Liabilities and Fund Equity $52,791,883 and $51,238,120
Eric:
There's certain transactions that do not need to be more or less appropriated for. And some of those are pretty standard, like depreciation. You never know what depreciates. Depreciate is going to be until after the fact. And it's a non-cash transaction. So there's there's a couple other elements associated with that. but on this balance sheet what you see is, a budgetary basis and what that means is your short term assets and short term liabilities associated with this.
So what you don't see on here is your, your, your assets, which number in about, around 100 net assets or 130 million right now in your long term debt, which is approximately 2.7 billion right now. And the reason for that is in the short term and the 1 to 2 years, we don't necessarily you know, we're not managing to that right now.
In addition to that, it is we're making some process updates to the district and we'll hopefully roll those out over the next several months. Is the district's assets are maintained, in an Excel file. And so we want to get that fully into the accounting system. So we utilize a fixed asset ledger for that. So any particular time we'll know the depreciation with that.
In addition there's not any value add right now because the district we're working through that process of moving transferring those assets to the city, because the district does have a majority of those parks and open space assets still on our books, and that will be remediated and taken off by the end of this year. And from the recent conversation that I have with Nathan.
So just some there's there's some value add. And so there's going to be tens of millions of dollars of assets that will be transferred to the city as a result of that. So and many of those assets are maybe developer assets, things that may have not necessarily been classified before. So we're going to go through a process of aligning the district's books and records associated with how many vaults, so we can get a true historical dollar amount as opposed to groupings of assets, if you will.
I've had clients before. You can actually drill down into a fixed asset system, and you can see a picture of a school bus or a picture of, you know, a project or something that substantiates. So it gives a lot of clarity to it. we may not even get we may not get to that point, but what we will have is will have a value associated with different phases of our distribution system, different phases of our collection system, each lift station as well.
So that's something that we'll look forward to in the future. So we'll be able to present that information. But right now it is a heavy hand. It's a heavy process to close out our capital assets annually as well. So that's that's why a lot, a lot of local governments present information this way as well. So I just want you to be aware of that.
Describer:
December 31, 2024 Actuals
Actuals, Projected Actuals, Budget and Variance through March 31, 2025, this budget is too in-depth to describe, Eric will point out the specific information that is important.
Eric:
So that is your balance sheet. If you continue to move forward, you'll see the addition of a projection column here. And I just want to kind of highlight a couple of things for you on, yes, Nathan, on this page. So this is where you have property taxes coming in and out. on the CTF fund, we are, receiving those, CTF proceeds from the state.
So we're we'll be forwarding those to the city. Castle Pines. We actually just got an update on that today. And so we'll have some funds, received by the district here shortly. in addition, this will be another account that another fund that will have to, present, a budget amendment for 2025, because a district did not budget to receive those funds for this year, for whatever reason.
Until last year. So that is one item that we are monitoring to bring forward to you at a future date. on the next page, what you'll see is a pretty substantial increase in that the dollar amount associated with water service revenue. so, numbering close to close to a million. That's looking at prior year, financial receipts.
what we hope to do is get a little smarter about that in the future so that we can look at what tiers were hit, what are those collected usage like? Just more think more data if you will. And so that we can make an earlier, estimate throughout the year to see where we're at. But once again, we're still trying to learn more about what are the flow rates going to happen at these HOAs, what are the flow rates at the townhome complexes, things of that nature.
So more to come. But because of those earlier April flows, we felt comfortable raising that projection on the water service revenue. moving a little further down, to the next page, you'll see distribution repairs down towards the bottom. pretty substantial, upgrade on that. And that's just based on current trends right now in discussions with, Nathan, before you see a lot of the fix and repair happened around this time of the year.
So, I want to just kind of give a, an amount there just as a projection. Like I said, this is an authorization. This isn't anything. It's just something for us to monitor going forward. and on the next page, what you have on your non-operating expenditures. This is your capital. we worked with Nathan to account for updated projections for the capital plans for this year.
And what you'll see is several things that kind of fell off that were budgeted for. In fact, you know, for example, the backwash reclaim tank upgrade, that's not projected to occur this year. you see, revisions up to we had incurred higher than budgeted cost associated with the well control vault rehab project. 334,000 335,000. Excuse me, versus 100,000.
We're still, getting cost in the door for the rehab project and the timing associated with that. So we maintain that budget a 3.3 million right now until we receive some more information. so these are things that we're constantly monitoring. Some things are more on a unit unitized basis. For example, talking with Nathan, the 25 sampling stations, the budget for 200,000, that's a per unit that occurs.
So essentially divide that budget by 25. And that's a per unit basis that we have for the budget right now. and then of course, maybe some immaterial cost on the monarch water line replacement, not anticipating any more costs based on the most recent Kennedy Jenks pay application that came forward. There. But we did have a budget there.
So, just to let you know that this budget has been looked at by, by staff and your consultants. And then in addition, the updated project, report at the end of, my financial report kind of has a multi-year cumulative effect associated with these. So, so, yes, if there's any questions on the financial report, I'd certainly take those right now.
Jason:
Jim, do you have any questions on the financial report overview? No. Leah, do you have any questions? I do not, Tera.
Tera:
I don't have any questions, but I do want to say thank you again. This level of detail is so, informative. And it's really easy to see where, you know, where we're running over, which is our, which is our repairs, because our system is old, but, super, super helpful.
And I do appreciate you actually walking us through and your, highlights of your financial report. So it's just I'm not used to it yet, but I'm liking it, so don't go anywhere.
Jason:
Jana, did you have any questions? Okay, I don't have any further questions either. So we can close out the finance report overview and move on to the review and consider Bartlewells Water and Wastewater rate Studies proposal.
Describer:
On Screen:
April 29, 2025
Nathan Travis, District Manager
Castle Pines North Metropolitan District
7404 Yorkshire Drive Castle Pines, CO 80108
Re: Proposal for Water and Wastewater Cost of Service Rate Studies
Bartle Wells Associates (BWA) is pleased to submit this proposal to prepare comprehensive water rates and wastewater rates studies for the Castle Pines North Metropolitan District (District). For more than 60 years, our firm has specialized in providing independent financial and utility rate consulting services to California water and wastewater agencies. BWA has served over 600 public agencies. We offer an unmatched level of financial planning expertise and provide both financial advisory services for project financing as well as utility rate consulting services.
Our rate studies are based on a comprehensive analysis of costs, customer base characteristics, and
demands to ensure rate structure recommendations reflect local needs and objectives. Throughout the
project we will work closely with the District’s project team to clarify objectives, gain ongoing input, identify and evaluate alternatives, and develop recommendations that achieve the District’s objectives.
We are very interested in assisting the District on this project and are available to start working at the District’s direction. Our proposal includes our project approach, scope of work, schedule, and a description of our firm’s qualifications including background and resumes for the proposed project consultants. Please do not hesitate to contact me if you have any questions or need additional information.
Sincerely,Erik Helgeson, MBA Vice President
Eric:
Wonderful. Thank you very much. Board. in addition, we look forward to streamlining these financials in the future. You know, I ideally collect you know, like putting all the utilities accounts together, creating like a summary page, things that are more user friendly. Unfortunately, we have a lot of the data from the last 30 years. So I appreciate the last 5 or 10 minutes for me to talk to you on that.
item number one. the next item is the consideration, the Bartlewells. as you may recall, the district over the last several years has worked with Bartle and Wells and before that, MWH Global as their partner for establishing and justifying their rate studies and basically a rate case, what we call in the utility world.
what this is, is and we had this in our budget for this year was a larger scope than what was considered in prior years over or in prior years. What we did a simple rate update or the district did a simple rate update, which is maintaining essentially the status quo, adjusting for any sort of capital plan, not adjusting any of the inputs, if you will, other than perhaps changes in the rates associated with that and projecting 10 or 15 years out, adjusting for inflation and everything else that may or may not occur, and doing scenario analysis associated with that.
What we've scoped for this proposal is a larger scope item, a larger scope contract, which essentially looks at are all of the districts operational data. That type of taps in to consider multiple different scenarios, whether and based on the usage for this? And what do I mean by that? What that means is should we have larger tiers, or should we drop some of our tiers and have a larger or higher rates associated with certain tiers based on tap size?
If, if there's a property owner that has a larger tap size, how do we manage that as well to meet the objectives of the district? Should we have higher fixed cost versus lower volumetric volumetric cost or vice versa? And I don't know the answer to this right now. Sitting here today, it does require a lot of data analysis coming out of the district's utility billing system.
so that is the scope we have right now. In addition to that, I do know this from working with, partners such as Bartle, Bartle and Wells in the past. They rely on a lot of our inputs as well. And that could be projections on payroll, projections on costs like headcount. Going back to my prior topic, assumptions based on, capital spend for the next ten years, you know, what does that look like?
and I will say, for this district in particular, the legwork that is done over the last couple of years, identifying all of the assets, identifying the status, status of all that has probably, given the most substantial justification, if you will, and it's never been pie in the sky. Let me be clear on that. But what we have, Nathan does know how many linear feet will be up in X amount of year to be replaced, or how many fire hydrants, or how many man or hand holes have to go in.
So we're able to quantify that a little bit more right now. What we will do is roll that into this study, going forward. So the consideration for this would be, the just, to ask for the board to consider the approval of this engagement letter, to work, throughout the budget process over the next couple of years to review, the district's rate structure.
Jana:
Eric, I have a question of why we only have just one proposal.
Eric:
we we have used this partner in years past, so I default to that. There are other firms out there, but I would say it would be a significant lift for them to develop the financial modeling associated with that. So they, they actually have the the modeling if you will associate
Jana:
and and I follow.
And I know there's efficiencies with continuing to work with somebody. But when I look at all this experience, I see nothing but California. And I know we have worked with them before, but I'm wondering where this relationship came from and is this the right firm for this? And I hear the extra lift and I think with this extra lift, is this a time where if we wanted to evaluate a different firm that we would we could in the sense that are they meeting your needs?
And if not, hey, we're kind of looking at some different things this year. Maybe we do try somebody new. It's for now, just curious why there's no additional proposals.
Eric:
It's it's, that was our initial proposal, so we did not go out to bid, if you will, for this project. yes. there are a couple other firms they mainly stay with, within, engineering firms that provide a number of the services.
They have certain financial analysts that they employ to create rate studies associated with us for this firm in particular. I know they have a couple clients here in Colorado. The history from that, was they had in, a partner that left. and Nathan may have to correct me if he is aware of this or MWH Global way back in the day.
And then they were the partner left at that time and then went to Bartle and Wells, and that partner has since left. But that contract, or that, you know, this relationship maintained with Bartle Wells, that rate analysis who rate analysts who developed it now works for Denver water. So it's it's kind of a that's the history behind it.
I would say this the relationship has lasted, up until this date has been about 14 years or so, 14, 15 years. so that's the experience that I have with them. But it's certainly it's, it's if the board would like we can certainly go out and receive a proposal or request,
Jana:
but that's not necessarily my intent.
It's just to ask the questions.
Tera:
I, I appreciate the question. because I was noticing that in the references as well, why they didn't refer more relatable.
Jana:
They don't even list us.
Tera:
Yeah. They just oh, I was going to say unless I overlooked it because I was looking for them. I don't think you did find it. Yep. Okay.
so. And as I read through their proposal, it looks very staff heavy to your point. Your providing all the inputs and so my question is for staff, which is you and Nate and, the communication staff, because a lot of this was also communications related. one, is it your recommendation that we go with this? Two is that kind of within scope?
Do we have the bandwidth to to really do this? Like I said, it looks like it's pretty heavily reliant on staff. And three, how is that then all coordinated. Because it does need to be it can't be siloed. It has to be obviously coordinated with you. It's underneath the financial directors report. So that makes sense that you'll be providing them input.
But then also how do we make sure they're not coming up with some kind of presentation or, or interaction with, with entities that's not coordinated with our communications arm?
Eric:
Certainly. So, this consultant would first and foremost be managed by the employee of the district, which would be Nathan, but under the guidance of me. And so I would manage, I would manage the inputs associated with that.
within the engagement, they'd have mentioned certain presentations and publications associated with that. Of course, that's all channelized and rolls up under the district's communications firm. So, it would not be, you know, you know, doing a publication as soon as they found something to put it in the connection or something like that. it would go, it would first come work through staff, and Nathan and I would, and Molly, we would all review all the modeling and all the inputs associated with that.
We the it goes through multiple different, remediations associated with drafts associated with that to make sure. Oh, well, as it stands right now, one thing, Nathan, I'm monitoring what's the net difference with all the activity between the water and wastewater fund? How do we correct that in the future? So we're we're asking for all those inputs. On top of that, it is initially pretty data heavy, especially in this instance, because we have to extract years of history out of the district's utility billing system.
But, you know, that comes out and I assume in the CSV file, and we'll be able to get that information over from their data. Their scope is to crunch that data, if you will, to go through it. Okay. Here are the trends for this account. Here are this here are the trends associated with this classification of account or maybe this geographical area I don't know.
as it relates to kind of overlaps for particular certain consultants. what we are doing for the district is kind of looking at a couple, of course, a couple years out. But regarding the strategic direction associated with this, because the last thing we want to do is make certain decisions today and come back and say, oh, wait, because we didn't do the appropriate due diligence, we have to do a 50% rate increase in eight years on already seemingly high water rates.
I'm not saying that's going to happen. Like, I'm not saying any of that is going to happen. but what you see is we want to provide a justification associated with that. And so over the last couple of years, we've just done a generalized rate update in, being privy to working with prior boards before and prior district managers before.
We've had entertain the concept of doing a, for lack of a better term, a full blown rate case. You know, this is what that would be. looking at everything, looking at our costs, looking at our revenues. yes. It's it's a lot of work. I feel it's probably warranted because the district hasn't done this for at least ten years.
Looking at that, I think it would be a good service. And so it would be my recommendation, if not Bartle and Wells. Some provide some sort of justification for that. what Molly and I are doing that we're looking at a couple years out, but of course we have to rely on what are the strategic, what is the strategic direction of this board that we want to consider in the form of renewable water and form of inclusions or inclusions or partnerships, if you will.
So we will be considering all of those facts and come up with scenario analysis associated with all of that. We've already Nathan, I've talked about a couple different things that, we would like to integrate into this. You know, one of the things is making sure we get any sort of reuse water service provider, i.e. the golf course, moving that to the wastewater fund, because all the debt service, a potential debt service associated with that through PCAWRA, will have to come recoverable through those rates as well.
So there's a lot of different things, happening there. But but for our scope is we don't have, the way that I come to understand it within our scope and engagement with the district, we look at the dollars and cents value. We don't have the, the, the resources to look at that in depth, if you will, because we're looking at present value of money associated with all this interest rate returns, all the, all those things, that are good to look at at this time.
Does that answer your question?
Tera:
So if I'm understanding correctly, your the focus for you on is more shorter term. And this is a more comprehensive longer term look at comprehensive and has more extensive modeling for these correct. For the future.
Eric:
That is correct. It would be a longer term modeling of very you know, we may look at a generalized expense with an inflator over ten years or 15 years.
but what, what we are doing is looking at perhaps the next couple of years of what, you know, what are the objectives here? We're taking those inputs, giving them to the modeling team, and then we're going to take those outputs and utilize them in our short term plan as well as our budget as well. So at the end result of all of this would be your net revenue projections that the district would achieve that are boiled down from operational usage and rates associated with that.
and then we'll have scenarios as well. And so we will be able to do variance analysis on what is actually happening versus, you know, what we projected to happen at some time.
Tera:
Thanks. And then the only other thing in here, and I can't remember if it was Bartle and James, but as they were looking at these, it says one of their deliverables is, review and summarize water wastewater rates of other regional and or comparable agencies, summarize results in easily understandable tables and charts. And I know that we we want to make sure that they do, comparable agencies because there was there was a little bit, I recall, a little controversy over what they had selected.
Jana:
so that's why I just want to say, is this how you want to proceed with the you've had good working experience with this firm.
Nathan:
Yeah. Okay. Yeah. And some of those like that specific issue with Tera, some of those are like hangovers from previous administrations and things like that too. So we just used what had been used in the past due to a shortened timeframe.
a big part of this is kind of just like resetting our foundation from a financial rates perspective moving forward.
Jana:
And then I don't expect you to know this, but I think I want to I'm okay with this, but I think I want to know what they charged us last year. Oh yeah, I can second track. because so this is an $80,000, proposal.
So how did that compare to the years when we don't have a heavy lift? So, and they have a six month roughly schedule. Is that what
Eric:
about a four month, I believe? Oh, sorry, six months, four months of work and then presentations later this year. So six months.
Jana:
Okay. I was going to say, so is this now going to be something I mean we have this one lift now we reset.
And then what does that schedule look like next year. So just hypothetical questions that eventually I'd like to see like is that this is normally a three month presentation or schedule. So
Eric:
it is I can speak in general generalities here. Typically we start this process other if it's a full blown rate update or rate update, we would start in late June.
So if the board wishes to table this until next month, that would probably be the latest that we would need to achieve that to meet kind of the budgetary expectations for this year. So I'll put that out here. I don't want to make sure. I want you to know that us as consultant staff aren't asking for we need a decision tonight, but I would ask for a consideration at least.
No later by next month. the timeframe associated with that is gathering preliminary data in late June, early July for all of these. we turn it over and they work through that data basically through the month of August is, we work through on a budget side, Molly and myself receive budget requests from Nathan, and we'll kind of collectively compile all these things into, a budget.
And we'll work back and forth to create this draft budget, if you will, and draft modeling no later than October 15th for the board's consideration to notify you on. And then at that point, we'll have a couple of work sessions and we'll work through a couple presentations and we'll work towards a finalized project in November. There's certain weights associated with that differently.
If it's just kind of like an update, you know, there's a lot of wait and see associated with it versus, you know, there's more work required on the front end in this process.
Great Thank you Eric. And I see no reason to table from my standpoint.
Nathan:
And then real quickly, the cost last year was $29,995.
Jana:
That's what I wanted to see. So exactly
Nathan:
I'd love to take credit for that. But Eric had it in the packet.
James:
no, I don't,
Eric:
and I believe this is a time and materials with the not to exceed amount associated with it. So I want to put that, out there as well.
Jason:
Leah do you have any questions.
Leah:
I do not have any questions.
Tera:
So I move to approve the Bartle Wells Water and Wastewater Rate Studies proposal dated April 29th, 2025,
Board Voting All Speak:
and I'll second that having a second. We'll go to vote Tera I Jana I Jim I Leah I approve I approve as well. So this motion carries. Thank you very much Eric. All right. With that we will go ahead and close out item number seven and move on to item number eight.
The Legal Council's report with Kim Seter. Welcome back Kim.
Legal Counsel Kim Seter, Esq.:
Thank you. It's good to be here. I just want to update on you. Update you on, the section of the legal status report that has to do with the parks IGA. we are starting to move properties now pretty quickly over to the city. It's been, I think, over two years now.
We've been working on this, so it's kind of exciting. but I have time for signature tonight, and you will not need to approve these because you actually approved them two years ago. But I have a quick, claim deed for properties without utilities. It includes about 27 properties. And I have a quitclaim deed for properties that include water and sewer lines.
that includes about 70 properties. Once we signed that, those properties will be conveyed over to the city. And then the third document is a temporary easement and maintenance agreement that conveys back to the district the right to go on to the properties, to replace the lines, to maintain the lines, and then in the future, as the lines are identified and there's drawings done by the engineers, we will narrow that easement down so that we just have that that single single stripe.
But frankly, we don't really care about that. But we have to get it done. so we'll be signing those tonight. And every one of these documents reserves all of the water rights under the property. And then finally the title company, because of this building, the city wanted title insurance. We're not going to pay for the title insurance.
The city will pay for it. But the title company wanted a written resolution from you authorizing the signatures on the documents. So I drafted a resolution number 0527, and I think it'll be 01 and all it says is that the board is reaffirming its authorization to sell the properties and appointing Jason to his Jason, his successors, or in his absence, Vice President Janet Krell or her successor, in consultation with district's legal counsel, to execute all documents necessary or deemed convenient to transfer, assign or convey the recreation properties to the city, subject to the terms and conditions of the parks.
IGA. The signatures may be attested by the district manager, the district Attorney, or any other director, and this resolution will expire once the properties are conveyed or upon the adoption of a separate resolution terminating that this resolution. So I would ask you to, move for the approval of resolution number 0527 0103.
Tera:
I make the motion oh three for read, read it into record.
Kim:
052703
Board Voting All Speak:
make the motion to approve that. I'll second that. Having a second. We'll go to vote. Tera. I, Jana. Leah, approve. Jim approves. I approve as well. The, motion carries.
Kim:
Great. that's that's all from me. We have some properties that are going to be kind of lagging because they have to be subdivided from other parcels.
So you'll see those later in the year. But, it's been quite a, quite a project.
Tera
Right? Those are a lot of properties. Thanks for all your work on that, Hey, I do you have a quick question on your report? about the hidden point? Because as I was reading through it, I know it says there's no action required, but it, it stated they were having an election regarding inclusion at its regular regular election in May, which would have passed.
And then later in the paragraph, it says it'll be calling a board meeting to discuss and authorize the inclusion agreement. So those didn't seem to be they were either going to have an election and that would be it, or they were going to authorize the inclusion agreement from the board. So I just was curious if you had any updates on that.
Nathan:
So go ahead. Yeah. So they weren't able to get, the inclusion agreement in place or get kind of things organized on their end to hit the May election. So we're still on schedule to do that for this year that's targeted for November. I had a conversation with, Jeff Huff last week. just checking in, making sure that we were still looking at moving forward.
they do have some questions regarding the, inclusion fee. So that'll be a conversation that I have with, Kim and Paul, but we're still moving forward.
Tera:
And then the other thing that I, I saw the notes, but in that next paragraph underneath are the parks and open space when you talk about transferring the facilities. And I saw it in the notes, but I didn't kind of see it updated.
And the legal is sort of their request to see if we could get if the district could get priority. scheduling for our meetings in here. So just
Kim:
Yes. And that is included in the lease that ultimately we will sign to lease this property back. Thanks so much.
Jason:
All right. Great. Any other questions for, Kim, Jim or Leah?
James:
I got a quick one, and I think it's simple to answer. At the last meeting, we had a resolution that had to do with eminent domain, and I think that got killed at the state level. And I just wondered if, you know, you guys put an end to working on that resolution from the board.
Nathan:
So we approved the resolution.
So it's it's done. the state I can't remember which bill that was. They didn't officially kill it, but it has been placed on hold indefinitely. for those at home, that is the resolution, related to eminent domain and special districts. So, we'll keep that resolution on our books, but for now, it's it's on hold. Okay. Thanks.
Kim:
I think what you're going to see on that one, Jim, is that, that will remain a power of water and sand district because you have dominion and eminent domain because of the importance of what you do. But metro districts and, you know, some of the other districts will lose that power. But ultimately, you need it. That's why it was created in the first place for this kind of entity.
James:
Okay. Thank you both.
Jason:
Great. Any other questions for our attorney? Hearing none. We will make.
Leah:
Sorry. Go ahead. Lee. I was just going to say no questions for me. Sorry.
Jason:
Okay. No problem. We will go ahead and close out the legal counsel's report, and we will go to item number nine, the district manager's report with Nathan Travis.
Describer:
On Screen. Memorandum
From: Nathan J. Travis
To: CPNMD Board of Directors
Date: 5/27/25
Re: District Manager’s Report
PCRA Reuse Pond Project
• After presenting to the board regarding approval of funding through the State Revolving Fund, the Directors of PCWRA (myself included) voted unanimously to push back the decision to this fall to allow for more decisionmaking time. Eric Harris will be in attendance of any relevant meetings, and I will bring any funding requests to the Board for approval.
Well Failure Updates
• Overall, there are several issues we have found that have contributed to the failures including programming issues, drive and soft-start bypass contractor failures, and start-up procedures. We will have several contractors on-site as we bring these wells online including operations, engineering, and controls.
• A-1: We have signed the proposal to pull the well equipment, and evaluate the failure
• LDA-1: The well equipment has been pulled and is undergoing evaluation.
• A2: Has been reinstalled and start up went great! We will pay close attention to the well as we continue to operate it.
• A3: Waiting on a mobilization date to re-install the well equipment.
Nathan:
Good evening. Nathan. good evening board. I didn't put anything specific on the agenda. One thing that I did want to call attention to was the PCWRA reuse pond funding. the directors for a myself, Josh Shackleford at the village, and Mark Marlow at Town of Castle Rock voted unanimously to delay that decision until this September. Just to give all of our organizations, some more time to look at it.
We all three directors felt that they kind of gave us, you know, I think 10 or 11 days to try and make a decision on it. So we did push that back. and I will let the board know when that comes along. other than that, if there are any specific questions, questions regarding my report, I'm happy to answer them.
Tera:
Well, I know you're going to be surprised, actually. Do one. I really appreciated reading in there that the city is considering a roundabout at, Buffalo Trail and Monarch. That would be brilliant. That's a high traffic area. So, yeah, I hope they do that. and I was very excited to see that, we have completed uploading the data and our asset management system, so yay on that.
Nathan:
But what are the next steps? so the next steps on that will be the next immediate steps is going to are going to be related to setting depreciation curves. So how to now that we have these assets uploaded we have a general idea what the condition of them are. How do we want to depreciate them moving forward.
And so there's a a lot that goes into that including like how important something is. So the consequence of failure do we want to run something until it fails. Do we depreciate it year over year with kind of a one over one line. do we, you know, have an asset that holds its value for a long time and then loses it relatively quickly.
And so we'll we'll set those curves and then that'll directly play into play into what we're going to be doing with Eric. and then that'll be an ongoing kind of I call them forever project. So, as we bring the lift stations online, we've still got some information we need to create and upload from our wells and some other stuff.
But we're we're in a good spot.
Tera:
Awesome. Thank you.
Jason
Jim, did you have a question?
James:
I do not. Thank you.
Jason:
Leah, do you have a question?
Okay, so it looks like Leah dropped off. She may have dropped off. Yeah. any other questions for Nathan? Okay.
Jana:
One for me. Was there anything on the wells? I mean, I can read it here. Is there anything you want to highlight on the wells that are going on that you want to focus on?
Nathan:
yeah, I can do.
Let me get to that part in my report.
Jana
and again, I can read it, but I think this is something that's changing all the time. So.
Nathan:
Yeah. And that is a good one to call out. So, A so the update we have is A1. There were actually this has changed since I wrote this last week.
So they actually are pulling that well currently. other than that it's as stated in the report past perfect. Thank you.
Board Voting All Speak:
All right. Great hearing. No more questions. We'll go ahead and close out the district manager's report with Nathan as always. Thank you Nathan, and we'll move on to item number ten. Director's matters. Jim, do you have any matters for this evening?
no. Leah, how about you? No. Leah. Oh, she's back.
Okay. We'll go past Leah. Jana. Do you have any? Nothing for me. Thank you. All right. And Tera. Nothing for me. I also have no additional matters for this evening. So we will close out item number ten and we will adjourn the meeting. Thank you. Everyone.