Board Meeting
July 28, 2025
Transcript
Describer:
Board Meeting Agenda
Tuesday, Monday July 28th, 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 June 16th, 2025, Work Session Minutes
B. Consider: approve June 23rd, 2025, Regular Board Meeting Minutes
C. Ratify claims for payment including check numbers 29229 – 29269 and electronic payments issued from June 12th, 2025 to July 16th, 2025 totaling $1,021,172.57
D. Consider: approve Revised Employee Handbook
Proposed Motion: I move to approve the items as presented in the consent agenda dated May 27th, 2025.
-Consider: approve Monday July 28th, 2025, board meeting agenda.
-Finance Director's report. Eric Harris, CPA.
-Finance Report Overview
-Consider: Accept 2024 Audit
Proposed Motion: I move to accept the 2024 Independent Auditors’ Report as presented.
Legal Counsel's Report. Paul Polito, Esq.
-District Manager’s Report. Nathan Travis.
A. Discussion: Well A1 and A2 failure
B. Update: Field Service Technician position.
C. Discussion: Party in the Park.
D. Discussion: SDA Annual Conference
IX. Director’s Matters.
X. Adjourn.
Board President Jason Blankaert:
Good evening, and welcome to the Castle Pines North Metropolitan District. Board meeting. Today is Tuesday, Monday, July 28th, 2025 at approximately 6:00 pm. We'll call the meeting to order and begin with the Pledge of Allegiance by.
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.
Board Voting All Speak:
All right. Thank you. We'll, proceed with a roll call. Jim.
Board Member Director James Mulvey:
present. No conflicts. Tera
Board Member Director Tera Radloff:
present. No conflict.
Board Member Director Leah Enquist:
Leah. Present. No conflicts.
Jason:
And Jana is missing from tonight's meeting. And this is Jason. And I'm present. No conflicts. We'll proceed now to the public comment period.
Do we have anybody signed up for comment? No. Okay. Hearing none, we'll go ahead and close out the public comment period, and we'll move on to item number four, which is the consent agenda. The items listed below are a group of items to be acted on with a single motion second, and a vote by the board to expedite the handling of limited routine matters.
The board has previously received information on these matters and discussed them at a prior study session.
Tera:
I move to approve the items as presented in the Consent Agenda dated May 27, 2025.
Legal Counsel Paul Polito, Esq.:
If I could interrupt just one moment. Get some feedback. Director Mulvey did have some comments regarding the revised employee handbook. I'd like to, go over during the meeting today.
If we can just remove that from the consent agenda.
Tera:
So he would have to make that motion because you're staff. That's right.
I make a motion to approve the consent agenda items A through E. I'm amending my motion and recommended. yeah. It's not May 27th. That's. Today is July 28th. Yes.
Right. And we're removing this item. Yes. This is the date that was wrong here. Okay. So I think the motion that I'm making is to approve items A through C, on the consent agenda and, remove item D or move it out for a separate item on our agenda. Okay.
Board Voting All Speak:
I'll second that. Having a second. We'll move to vote.
Jim. Approve. Tera I Leah approve. I approve as well. The motion passes.
Jason:
So. Where would there begin to us. Sorry. Excuse me. Where are we going? To move the revised.
Paul:
I can discuss under legal matters.
Jason:
Legal matters? Okay Thanks.
Okay, we'll go ahead and close out. Item number four. and moving on to item number five will consider approving. Monday, July 28th, 2025. Board meeting agenda.
Board Voting All Speak:
I motion to approve the agenda with the revision of covering the revised employee Handbook in the legal section. Very good. I'll second that. Moved to vote. Jim. Approve. Tera. Leah. Approve. And I approve as well. So we will go ahead and close out. Item number five. And now we will open up item number six the finance finance director's report with Eric.
Financial Director Eric Harris:
Good evening. Board. in front of you beginning on page 36 of your packet, you have the finance report. This this is for, budget actual report for dated for met through May 31st of this year. There are certain references I may make within my report, because we do have certain updates for June operational numbers and finance numbers.
So I will reference those accordingly. but just let you know, we're right around the corner to updating our projections for the year. We do those on a quarterly basis, you know, in conjunction talking with Nathan and things of that nature, things of that nature. So you'll see those updates this next month. Property taxes, you know, my report through May, we've collected or the districts collected about 66%.
Describer:
On screen.
TO: Board of Directors – Castle Pines North Metropolitan District
FROM: Eric Harris, Elevated Clarity (EC)
DATE: July 28, 2025
RE: Financial Report – July 2025 Board of Directors Meeting
General Fund Activity
As of May 2025, the District recognized $655,762 in property tax revenues received from Douglas County and $31,164 in specific ownership tax revenues. This includes $13,958 in delinquent property taxes collected. This represents 66% of the budgeted property taxes from the District’s mill levy year-to-date. This is a slightly lower percentage than compared to-date in 2024 (69%). Eric describes and highlights pertinent information.
Enterprise Fund Activity
Billed water usage in the month of May 2025 was 61,357,000 gallons, a 37.89% increase from water usage in May 2024. Cumulatively through May 2025, the District has billed 19.95% higher operational flows than in 2024.
Eric:
We're right near a 100% collections for the year if we include June. Starting on page 41 of your budget actual, you have, your general fund, the city of Castle Pines. We've been invoicing them for, 50% of those cost. So you'll see those numbers reflected within the finances. so that's just an important note I want to identify, moving forward to your wastewater, service.
Sorry, your wastewater operating revenues, your sewer service charges. What you'll see is a, kind of a broad uplift in those, in those numbers, through May 31st, we have 840,000. What's included in that actual number is actually an additional $100,000, almost 92 on, $91,452 of what we invoice to the city of Castle Pines Town Center.
Metro districts one numbers one through three. That's for the annual capital assessments with the outfall line. so that is, we invoice that every May, if you will. We have an accounts receivable balance associated with that. And that's something that Nathan and Paul and I have been meeting and discussing on as well. But that's something that comes across.
It was not budgeted this year for whatever reason, but that is reflected in that revenue number. So I just want to highlight that, of course there are certain variances that we've talked about over time. salaries and wages has overall a favorable variance, just because we had more headcount associated with the initial budget. Moving down, to your Centennial delivery charges on page 42, you have $265 of expenditures.
that's because the district has not flowed in water from the interconnect yet this year, even though, it was in the budget for this year. So, I believe, Nathan, last time we talked that that was going to start in October. So we'll see the reflection of those monthly delivery charges beginning October 1st. At the bottom, you see, like election expenses, the district held us, held its election or canceled this election rather for this year.
So very immaterial. Expenses associated with that. We had $45,000 associated with that line item. And then, moving forward a little bit more same, same story as we reported last couple months, increased distribution, cost, repair, repair expenditures associated with the district's water system. And then, same thing for the wells as well. A couple other good new, good items in this report is investment revenues are going to double approximately for what was in our initial budget for this year, just because of the districts, obviously, that as we've talked about many times, increased cash balances on hand, including on the oil royalty revenues, the district did not have any revenue
associated with that in its budget for this year. We are, we are anticipating about $35,000 per month going forward for the remainder of the year. So you'll see that, reflected going forward. And we'll have a better report for you. Operational report on the district's mineral activities, next month at this next board meeting. We're continuing to work with the city of Castle Pines for a timely delivery of pay applications for the Monarch
work that's being done. so there's still there's still some expenditures out there that we need to get into our system. We, we were working into June just to clear up year end last year for the audit. So we've been in communication with Mike Farina over at the city. So we'll continue to get those updates. And so we'll have a better picture of what those expenditures will be in the June financial report.
So just wanted to highlight that for you.
Tera:
Appreciate that you're keeping up with that because I know last time there was a long lag.
Eric:
There is so the last invoice that we actually did receive was for April of this year. So continue to work with him. and I think that concludes, all the items I wanted to highlight to, to you in this financial report.
So are there any questions I can answer for you?
Tera:
So I have a question. And for, the board's reference on our packet, page number 39. Can you talk to me a little bit about, item G that you're currently working with Nate and Gina Burke on reformatting the tracking system of system loss within the water distribution system.
Eric:
Of course. I'll introduce this in. Please chime in. Nathan. so Nathan came to me a couple weeks ago and said there was a, an additional question on the state, survey, if you will, for the wastewater system that related the water, raw water system loss. And so what we wanted to do is look back for the last couple of years to see, you know, can we quantify what that system loss was doing?
Because typically on a system industry standards, and Nathan informed me of this is roughly about, you know, 10%, 10 to 12%. So we wanted to come into us, quantify a better means of, substantiate substantiating a number for that survey. We did some preliminary analysis on our side as we were making sure we're accounting for all the revenues and finance revenues.
So accordingly, but what we're doing is, we're getting, daily logs and monthly logs for the interconnect changes in the well systems and then quantifying for the operational use within the system. So that's what we're doing. So we're working with the districts, we call it the water account, which is Gina Burke. And so anything you like to add with that Nathan.
District Manager Nathan Travis:
Yeah. And so this was part of the reason that we did the well vault rehab program was to make sure that we were getting really accurate, meter readings on our, well, production numbers. And so the simple as version of this is we're comparing what we build to what we produce, and we have things in place that we haven't historically had to be able to do that more accurately.
And so that'll be something that we track. I don't know, ongoing basis.
Eric:
And when I say system loss within a system, it isn't necessarily leaking pipes. It could be, old meters within the boundaries of the district that are not billing correctly. So that feeds into the meter replacement program that Nathan has upcoming for the district.
Tera:
Thank you.
Eric:
You're welcome.
Jason:
Any other questions on this section?
Okay. We'll move on to let her be. Consider accepting the 2024 audit.
Eric:
Yes. As you recall, last week we had our auditor, the district's auditor, here to present the, 2024 audit. And, what we're looking for today is there are no changes from that report. And so we are looking to get the opinion issued tomorrow pending the approval of this board approving that audit just as a highlight.
There were just, a couple very minor entries associated with it, and there's actually three within the auditor communications. There's a required, governance letter, for, when an audit is performed to the board of directors, there's a standard audit entry that's very typical that, all districts have to enter if they have pensions. We never track that as a non-cash entry.
So we always as a, just as a, matter of practice as the auditors, we get them to perform that entry for us. so that was the first entry that was identified. And in addition, when we got into June, we found an error in, in the district's fixed asset ledger related to water rights tracking. It was a non-cash entry, obviously.
So there was just a correcting entry that was performed that was not material to the overall financial statements, but it trued up the depreciation entries for the Hawk Hawking water rights. And then the third entry was related to, severance taxes that we, received. All right. Let me back up, severance tax returns that we had to engage a tax accountant to prepare for the district, which accounted for, our refund, withholding that the district will be receiving sometime in the next month or so, and we finalize those tax, those tax forms a couple weeks ago.
And so that was that third entry identified. And we provided that entry to the auditors with an on their books. So, if there's any other questions regarding the audit, I can certainly, answer those for you.
James:
Maybe not the audit that it may impact. You know, as we go forward. The IGA right now is incomplete. Still, as far as transfer of properties, we still have some outstanding properties. I was just wondering how that impacts this going forward from your standpoint and, you know, it's dragging on, that in itself isn't a big deal to me, but I was just wondering if that impacts the way we have to project going forward, or there's additional expenses that we're incurring because it's dragging on.
Eric:
Certainly. So we obviously have any sort of engineering expenses that were agreed upon that we have to split 50/50 between the city. the audit is very much a look back perspective. So even though there's a couple critical paths as it relates to the IGA, for example, we need to amend our service plan with the county.
So that's one item that needs to be done. And we said we would get it done by a certain date. And so we have to get that piece of it done. And certainly we're supposed to transfer the assets by a certain date. And that hasn't been done as well. So it's just a matter of when this gets, wrapped up.
Technically, I believe all the maintenance responsibilities have transferred to, the city. So those are being performed right now. We will just have to continue to monitor whatever risks there might be associated with the insurance. You know, make sure you know, we may be carrying certain, items on our insurance policy that may have to be removed.
But we would like to have it all done this year, if at all possible. If we can get it all done within this calendar year, it would be ideal that. So we have a clean balance sheet entering next year as being a water and sanitation, provider. Okay. Thank you. You're welcome.
Jason:
Okay. I'll go ahead and, make a motion to accept the 2024 audit independent auditor's report as presented.
Tera:
I'll second the motion, having a second. And I do have a question for staff, which is, in our study session, we did have a presentation by, Rubin. What is that? Rubin Brown and I believe that, Russell White had recommended or this is the first, clean audit or, I guess staff's recommendation is that we approve this audit.
I remember it seemed like what we heard last week was that it was a very sound audit.
Eric:
Yes, that is correct. very pleased, just with all the parties involved to get to this point. Yes, it was a good working relationship that we have with your auditor and, it was a clean out, a lot of work to get there, but we we wanted to make sure we met that deadline.
Board Voting All Speak:
Thank you. You're welcome. Great. Having a second on the motion, we'll move to vote. Jim. Approve. Tera, I, Leah, approve. I approve as well. The motion carries.
Jason:
We'll proceed now to item C. Consider adopting an investment policy Eric.
Describer:
On screen. Packet Page Number 129.
CASTLE PINES NORTH METROPOLITAN DISTRICT INVESTMENT POLICY
Adopted July 28, 2025
1. POLICY
It is the policy of the Castle Pines North Metropolitan District (“District”) to invest public funds in a manner that will provide preservation of capital, meet the daily liquidity needs of the District, diversify the District’s investments, conform to all local and state statutes governing the investment of public funds, and generate market rates of return.
This Investment Policy (“Policy”) addresses the methods, procedures, and practices which must be exercised to ensure effective and judicious fiscal and investment management of the District’s funds. It replaces any previous investment policy or investment procedures of the District.
2. GENERAL
a. Scope.
This Investment Policy is applicable to all funds allocated by the District for investment purposes.
b. Investment Objectives.
The District’s principal investment objectives are:
i. Preservation of capital and protection of investment principal.
ii. Maintenance of sufficient liquidity to meet anticipated cash flows.
iii. Attainment of a market rate of return.
iv. Diversification to avoid incurring unreasonable market risks.
v. Conformance with all applicable District policies, State statutes and Federal regulations.
vi. Maximization of funds available for investment.
vii. Maximization of investment earnings consistent with the objectives outlined in this section.
Eric:
Yes. I am just trying to find the investment policy in your packet real quickly. 129 yes. On page 129, you will find the investment policy accompanied with associated resolution. This is the policy once again that was prepared by your counsel and, reviewed by myself and Nathan. It was the same policy that was present at the work session last week.
So, do not want to necessarily go over the same items, but can certainly answer any questions that you may have regarding this investment policy.
Jason:
Thank you. Does anybody have any questions regarding this?
Board Voting All Speak:
Hearing none, I will move to adopt the Castle Pines North Metropolitan District Investment Policy as presented. I'll second that. Thank you. Having a second? We'll move to vote. Jim. Approve. Tera. Approve. Leah. Approve. I approve as well. The motion carries. Wonderful.
Eric:
Thank you. We'll get that implemented.
Jason:
Thank you. Eric. All right. We'll close item six and move on to item seven, which is the Legal Council's report with Paul.
Welcome, Paul.
Paul:
Good evening. Board. So the first item on the list here and I'll just, do this in the order that it's on the legal status report, the investment policy update. Eric's already explained that, no need to go through through that one. And the same way, does have any questions about about the investment policy for me?
If not, we can move to the employee handbook. Update the, the plan was to adopt this through the consent agenda. but, Director Mulvey did have some comments, that he sent me today that I wanted to address with the board. I think they're, pertinent comments that we should all address here. So, looking at the employee, manual, which is on.
Thank you. Page ten of your packet. Excuse me. I'll go through these in the in the order that Director Mulvey raised them. The first, item is a small one, under 5.2 of employee appraisals. Director Mulvey did point out that, there are certain areas where, it describes an Metro District as the company or the organization.
We should change that to Metro District, some other correct description of the metro district and keep it consistent. 6.2 regards anti-violence. And there are there's a very vague description of weapons, in 6.2, Director Mulvey raised this issue, and I agree with him that, descriptions of weapons should at least be near identical or more restrictive of what you find in Colorado law.
Describer:
On screen.
6.2 Anti-Violence
Any action that in management’s opinion is inappropriate to the workplace will not be tolerated. Such behaviors may include, but are not limited to, physical and/or verbal intimidating, threatening, or violent conduct, vandalism, sabotage, arson, use of weapons, and bullying. Also prohibited is the carrying of weapons onto Organization property, regardless of whether the employee possesses a concealed carry permit.
Employees should immediately report any such occurrences to their supervisor or to the Human Resources Department. We will investigate complaints. When employees are found to have engaged in the above conduct, management will take action that it believes is appropriate.
Employees should directly contact law enforcement, security, and/or emergency services if they believe there is an imminent threat to the safety and health of themselves or co-workers. If you are a victim of domestic violence, please contact Human Resources for assistance.
Workplace bullying is repeated mistreatment through verbal abuse, offensive
conduct/behaviors, and work interference. If you feel you are subjected to workplace bullying, please contact Human Resources.
Paul:
You know, some people carry a small knife on their. And their person may be a multi-tool, that contains a knife. Colorado law allows knives, multi-tool knives below 3.5in, or below, you know, so that's something, you know, me and, it's something I think we should all consider. I would propose incorporating some, some specific language, just, accurately defining what a weapon is.
I can look at its similar provisions in Colorado law, to borrow from, as far as the 3.5in knife or below I that's I really don't have an opinion on that one way or the other. I figured maybe that's something the board would like to discuss. But, yeah, at any rate, that's.
Tera:
Where is this in section 6.2,
Paul:
6.2 anti-violence.
under there's only a description of what in that first paragraph. Any action? Management's opinion is inappropriate. Such behaviors include, use of weapons. And then that last sentence also prohibits the carrying of weapons onto organization property. And then weapons is never really defined. So it's it's up to interpretation as to what that even means.
so if the board wants that to be very restrictive and to include any sort of weapon, including small pocket knives, I can do that. If you want to be a little less restrictive, we can word it that way.
James:
And the only reason I brought it up is you have engineers, technicians, people working on stuff. And if you look at their pocket, they're typically walking around with a pocket knife clipped on.
And, you know, I just don't want to see somebody getting into quote unquote trouble, per se, when it's just a normal practice for those guys. They got a strip wire or they got to, open up boxes or whatever the heck it is. But, you know, I just think it needs a little bit of clarification, that's all.
Tera:
Okay. So you're advocating it sounds like not just weapons, but specifically a description of knives. I don't know what other weapons I mean, that is kind of vague, but knives with a blade.
James:
Colorado statute is unless you're hunting, it has to be 3.5in or less. So unless you're carrying around a hunting license and you're actively involved in hunting, it's 3.5in or less.
And and then even when you look at those statutes, they are a little bit vague. But the intent wasn't to really define that per se here. It's more of a conversational thing. It was to me, you know, what I consider a weapon may not be what you consider a weapon. And that's all I was digging at, is let's let's help it out a little bit, that's all.
Paul:
Okay, I can,
Tera:
I guess my question would be, why would we follow Colorado definitions and not Douglas County, where we reside?
Paul:
You can follow whatever you like.
Tera:
I don't know what those are, but.
Paul:
Yeah, and I'd have to look at them. I don't know what they are either. but. Okay. I can I can have that discussion with the district manager and bring up some revised language at the next meeting.
Tera:
Okay? Yeah. I mean, I'm okay with it as it is, but I understand Director Mulvey's point, and it does make sense. We don't want for evergreen nature being somebody getting a, you know, a tool basically. And, taking away or taking issue with a tool.
Paul:
Okay. I'll, I'll more clearly define that then and bring it to the board for the next, at the next work session.
Describer:
On screen. 6.5 Inspections
We may conduct searches of employees' personal effects after notice is given and with the employee’s consent. This may include, but is not limited to, lunch bags, boxes, purses, personal computers, packages, or vehicles.
We may conduct searches of the above items without employee consent if we have a reasonable suspicion to believe that illegal activity is taking place. Any illegal and unauthorized articles discovered may be taken into custody and will be turned over to law enforcement representatives.
Employees do not have a reasonable expectation of privacy in work locations such as lockers, desks, cabinets, or file drawers.
Paul:
Moving on under, 6.5 under inspections. this does not cover, an expectation of privacy with regard to work on computers or software, which, I thought raised a good point. and let me back up just a little bit. 6.5 regarding inspections, goes over, employees expectations of privacy and, where the employer can conduct searches into the employees personal effects.
Again, that, it says that it may include, computers, but it doesn't seem Director Mulvey raised the point, which I agree with doesn't seem to cover an expectation of privacy with regard to work on computers or software. So I can clarify that.
Jason:
Don't we have a section ticket dedicated towards, internet use and computer usage?
James:
Yeah, I referenced that in the email.
I cut and paste it. I just think that the two pieces should be looked at in total and kind of cleaned up.
Paul:
Right. You mentioned that 6.6, which is the section you're referring to, doesn't seem to address it explicitly. so I don't see any problem with making it more clear within 6.5 as well.
6.8 which regards conflicts of interests. Director Mulvey pointed out it doesn't expressly forbid working for our contractors, which he thought seemed to be significant conflict of interest and should be prohibited outright. I would say that the the language within 6.8, would cover, an instance where, you know, it covers contractors, because it would that would be any sort of situation that could improperly influence their decisions.
But again, I'm never against making something more specific. I don't really see any downsides to making it more specific and including outside contractors. So I would agree with that. And I can include
James:
I mean, this one I think could be, you know, discussed among us, you know, different people could absolutely have a different opinion here. I just absolutely, you know, I think if we're going to go down that road that I think in, it's sort of covered, there needs to be a disclosure discussion between the employee and the management here,
before maybe you outright prohibited it. But to me, it seems like just absolute, you know, conflict of interest. And, you know, if it was a firm that wasn't directly involved in providing services or contractual labor for the district, I'd say, yeah, fine. You know, still not the best thing in the world, but I wouldn't prohibit that. But somebody that's doing work out front here for the Metro and you're moonlighting for them, I think is problematic on a couple different levels.
Paul:
So, yeah. And I certainly don't see any issue with putting that on paper.
Tera:
So you want it to be stronger than should be avoided, is what you're saying. Because it does say while moonlighting for a contractor.
James:
Yeah, I think it's it at best. It's squishy. should be avoided. Is kind of like kind of maybe should, I mean, to me, it's, you know, either we allow it or don't allow it for, you know, direct service to the Metro.
And to me, it just it just didn't feel right. So
Paul:
I can change that to shall be avoided. and then more specifically define, you know, that a conflict of interest would include a situate, you know, an outside contractor employing with the outside contractor.
James:
And, is that something, you know, you guys are okay with or, you know, Nathan.
Nathan:
Yeah, I yeah, I think that that should be as strict as possible. I mean, even if they're, you know, moonlighting or someone's moonlighting for an organization that we don't currently work with, we're one bit away from working with them. So I don't think that there should be a lot of leeway in terms of working.
James:
And, and I think it's a good discussion to have amongst the board.
You know, my opinion, obviously, it's just my opinion.
Paul:
Well, I'll, I'll make those changes, and bring it up for, for board approval. And if further discussion is warranted, the working has at that point, unless there's any other comments.
So, I am just curious, and I think you guys answered this before, but I don't recall the answer.
There is a lot of, referring the matter to human resources. Who is are human resources?
Nathan:
Jennifer. Excuse me, Jennifer Vollmer with AGL Denver. Do our employees know that? Yes. Because in one of the like, if they have a Pressman complaint or whatever it says come to you, but if they're complaining about you, who do they go to?
Nathan:
Right. In that case, they we go to Jennifer.
Tera:
So it's not mountain States Employers Council. Correct. To.
Sounds good.
Jason:
Any other questions regarding this? Okay, Paul, I think we'll look for those, changes to be made.
Describer:
On screen. 6.9 Confidential Information
Employees of the Organization will have access to confidential information of the Organization and the public we serve. Confidential information includes, but is not limited to, information concerning personally identifying data, employee records, customer account information, unreleased financial or budget materials, sealed procurement documents, attorney–client privileged communications, pending real-estate transactions, critical infrastructure details, security or safety protocols, confidential ethics complaints, and other records exempt from disclosure under the Colorado Open Records Act or federal law, and similar subjects. If uncertain if information is secret, contact your supervisor.
This non-disclosure prohibition applies both during and after an employee’s employment. Any copying, reproducing, or distributing of confidential information in any manner must be authorized by management. Confidential information remains the property of the employer and must be returned to the Company upon separation or at any time upon demand.
In addition, employees are prohibited from purchasing or selling securities based on information not generally available to the public.
Paul:
Okay. there was one final change here. Or. I'm sorry. Two final changes, being 6.9 confidential information. the last sentence states that employees are prohibited from purchasing or selling securities based on information not generally available to the public.
Director Mulvey pointed out that, the phrase generally available to the public could be open to interpretation, and I agree, I think it certainly could. He mentioned that it could be clarified to include once and for me, quote, once information is publicly disclosed, unquote. then the restrictions lifted, something to make it clear that once this information is out in the public, however, we want to define that, that they don't, employees don't have that restriction anymore.
James:
I mean, I, I work under the same restrictions from where I work. We're not allowed to insider trade. Obviously. you know, again, this is a metro district. I don't know if we, you know, where I work is significantly different, but, yeah, we're restricted to doing anything until it's publicly announced. That's either paper or, disclosure by the company directly, via their media outlets.
Paul:
Maybe we tie the disclosure to to meeting things that are within meeting packets. Anything that's publicly disclosed on paper or maybe.
James:
Yeah, I think once it shows up in a board minutes, whether it's verbal and as we're all recorded here or it's printed out, I think that's public disclosure. I think that satisfies it. But I think it's again, you know, I was kind of pointing out I'm a lay person.
So I look to you to kind of define it.
Paul:
Yeah. And I think it could be better defined. And does any is anybody in the board have any comments about the section. Okay. And lastly is 10.2 and I believe we went over this issue with the employment agreement that we were going over a couple months ago. But regards smoking or not vaping.
so Director Mulvey recommended that we include vaping within, this smoking section, which I completely agree with. I think we should just simply include it.
Jason:
How about any tobacco product?
James:
Well, I did I did reference the Colorado law in that regard. So some of that is included. But again, you know, I just kind of linked to it.
So I'll let you go through it.
Paul:
Okay. I would suggest nicotine containing products. I can see that, you know, it's a little broader. because I don't think vapes would be anything. Tobacco would capture vaping.
Jason:
Right. And it also captured people with chewing tobacco. Right. Oh, so they're making a mess, right?
Tera:
But if you're just saying nicotine, you're eliminating a whole other range.
Paul:
Right. So it would have to be a bit broader than that. I'll, I'll think of something that captures everything. I'll bring it to you.
James:
Yeah. The Colorado statute did indicate vaping or smoking.
Paul:
Yeah. Maybe we, you know, vaping, smoking, nicotine products, something like that. but okay, I'll broaden it.
All right. That is that's all for the employee handbook. I'll bring those revisions to you all at the next work session.
Jason:
Thank you. Paul, we'll go ahead and close out the legal counsel's report, and we will. Oh,
Tera:
sorry, Tera, I did have a question. on the status of the hidden point Metro inclusion. Because the last thing says there is going to be an election in May that passed.
And what what where is that? What are we doing?
Describer:
On screen. Packet Page Number 134
MATTER: CONSOLIDATION/INCLUSION OF HIDDEN POINTE METRO DISTRICT
Status: Hidden Point Metropolitan District (HPMD) Board advised Mr. Travis that it wants to move forward with an election regarding inclusion at its regular election in May, 2025. A preliminary inclusion agreement was drafted and counsel revised the
preliminary inclusion agreement based on discussions with HPMD’s district manager. Counsel provided the draft agreement to HPMD’s district manager for review. HPMD responded on February 16, 2025, with proposed revisions. Counsel met with Hidden Point representatives on March 11, 2025, to discuss inclusion terms. An inclusion agreement has been finalized. Hidden Point will be calling a board meeting to discuss and authorize the inclusion agreement. Counsel will present the inclusion agreement for CPNMD board approval following Hidden Point’s authorization of the agreement.
Action: None required.
Paul:
We are still waiting on Hidden Point to vote on this. I don't know what's going on internally. to where it's being delayed, but clearly there are some internal deliberations that or that's delaying this. I really don't know any more than that, but as soon as they vote on it, you will know.
Jason:
Do they meet, monthly? Quarterly? How do they know?
Paul:
It's pretty infrequent. I want to say quarterly. Yeah, it's quarterly. Okay, thanks.
Jason:
Sorry. Any other questions now for Paul. All right. Now we'll go ahead and close out the legal counsel's report, and we'll open up the district manager's report with Nathan first will be discussing, well, A1 and A2 failures.
Describer:
On screen. 7/25/25
Castle Pines North Metropolitan District
7404 Yorkshire Drive
Castle Pines, CO 80108
Attn: Mr. Nathan Travis
Subj: A-1 & A-2 Failures Update
Layne is providing this update to address the ongoing failures at wells A-1 and A-2. Below are the planned steps to identify and resolve these issues.
Immediate Action
- A-2 - Layne is currently removing the pumping equipment from A-2
ー A-1 - Layne will move to A-1 next week to pull the pumping equipment
- Transport pumping equipment to Baker Hughes for teardown and inspection
Expert Witness Review
- Layne has contracted a 3rd party expert witness
• Oversee pump inspection
o Review controls and electrical supply data o Provide official report for the cause of failure o Provide updated work plan to resolve issues
Schedule
- A-2 Pull Pumping Equipment - 1 Week
- A-1 Pull Pumping Equipment - 2 Weeks
• Pump Inspection With Expert Witness - 3 Weeks o Expert Witness Report - 3 Weeks
Layne will coordinate with CPNMD and Semocor once the expert witness report is complete. All materials and labor will be covered under warranty if the cause of the failures is determined to be a manufacturer issue.
Sincerely, LAYLayneNE CHRISTENSEN COMPANY, Nathan L. Anderson, Account Manager III
Nathan:
So unfortunately well as well as A1 and A2 have failed again. So these are two of the four wells that we recently replaced A1 failed within hours of start up. It basically didn't clear the startup procedure. A2 ran for about three weeks and failed in the middle of a run. I've been working with Layne to kind of try and directly address this as it's becoming.
Quite frankly, it's ridiculous. Their current stance is that they think the most likely cause for the failure is an issue with manufacturing. So I did ask them to give me a defined, and proposed plan for moving forward. They are hiring a third party expert to accompany the equipment to the testing facility, observe the test and then provide their own report.
I do not have the contact information for the inspector or for the experts that they're recommending. So I definitely want to get those qualifications before we sign off on it. Jason.
Jason:
So they're taking all the well components back to the factory and and correct. Yeah. Analyzing them.
Leah:
If they do find that there was an issue with manufacturing, like could we potentially recoup any of the costs that we've spent having to replace them?
Nathan:
Yeah. So everything will be covered. I don't know that we would be able to recoup costs that we've already spent. Any additional cost to repair it, will be covered. that's one thing that I did want to highlight in the letter from Layne. is that there there was some language in this that I was uncomfortable with because it says that this last sentence, all materials and labor will be covered under warranty if the cause of the failures is determined to be a manufacturer issue.
I reached out immediately to Nathan Anderson, who was the gentleman that spoke to us a few weeks ago and said and basically told them we've had, I think a total of 5 or 6 failures inside of 18 months on this equipment, and I didn't see any justifiable reason why the district should have to have any more expenditures for this issue.
so he did respond, in the email and say that they would cover those costs, basically, regardless of the results of this, evaluation of the equipment failure.
Tera:
So it's in some form of writing, it's an an email. ....
Nathan:
I got it in an email. Okay.
Jason:
And this is the same manufacturer that manufactured the other nine or.
Yeah, the other however many it comes out for many wells that we have. Yeah.
Tera:
So I'm, I'm curious if our attorney thinks that I mean, having it written in some form is better than no form, but yeah,
Paul:
the only thing that I well, I'd like to see the original contract, that was entered into. And what is the gap in so they're covering every there's some gap in coverage from the initial installation up to a certain point.
Or did I hear that wrong?
Nathan:
I'm trying to understand your question.
Paul:
Is there is there something they're refusing to cover?
Nathan:
Not right now okay, okay.
Tera:
I think director inquests question was related to there have been repeated failures with this same equipment. Can we get it kind of back labor and costs.
Paul:
When was this agreement entered into with Nathan.
Nathan:
The most recent installation agreements for these were earlier this year. And these are one off agreements each each installation
Nathan:
for the repairs. Yeah. I'd have to look there's. Yeah, we can maybe you and I can set a meeting and go through all the documentation. Going back to the initial repair. Yeah, 12 months ago.
Paul:
Because if these are just individual contracts, I'm sure they all look the same, but obviously they all are controlling the individual.
points in time. So I'll look at that. see what sort of leeway we have, it seems. I mean, if this is anything, if it's anything like what they're saying now, I would say we were in a really good position to argue that, especially if it's the same failure that's occurring over and over again. So, yeah, Nathan, let's let's talk about it this week and see how we want to handle this.
Tera:
Right. And it's not the same installation failure, but we're I think curious about whether it's also the labor as well as their past, their manufactured part installation. Okay. Yeah. In question these labor for repairs or whatever we wouldn't have done if it was working as expected the first time. Correct. ..... Okay.
James:
Just because they deal with this kind of thing all the time. and it may or may not be applicable, but if these are lot controlled, date controlled or serialized items, I'm sure it has a serial number plate on it. What I would do right now to kind of preserve things is go to the go to the vendor that supplied this equipment and what we call an end item data package.
It's basically the certification when you test a large piece of equipment, there's a bunch of performance data that you have to, you know, that criteria has to be met. You know, has to be plus or minus this or it has to be, you know, pump this much per hour, that kind of thing. I would try to obtain that data as produced.
And then when that equipment's returned, and it's retest it in whatever fashion they can retest it. Direct comparison between pre and post and then, before you get going because warranty claims are really interesting sometimes, you would have to prior to any of this work getting done, you would have to understand what constitutes a failure, because the vendor of this equipment could very much argue with you that it's not a warranty issue, it's something that you did or something else beyond their control.
But, you know, you can get into some very interesting conversations very quickly. If it's a high dollar piece of equipment that they don't want to cover, or they're going to point the finger at you while you're trying to say, well, you know, it worked when we sent it to you, what did you do to it kind of thing.
So you have to proceed very carefully and understand what constitutes a failure and what was a state it left the building, basically their shipping dock. And what was the performance criteria at that date, and what is it doing now and what caused that problem? And again, you know, you have to pre identify what constitutes a failure. Otherwise you get into some very interesting conversations.
And this could just drag out. And we end up just buying new equipment because we we need the equipment in the ground so to speak.
Jason:
And so Nathan how many contractors do we have touching this particular Well equipment?
Nathan:
The equipment that is the specific piece that is failing, Layne is the only part the only party that touches it.
Tera:
And I, I do think it makes me curious about them contracting a third party witness. I heard you say that you will verify their credentials. Do you get to let them know if you don't accept them as a third party qualifier?
Nathan:
So that's a question I have outstanding. Nathan is, Nathan with Layne is currently on vacation, so he's been responding to me as he can through this, which is which I commend him for.
But that's one of the outstanding questions. I did reach out to a few of my contacts to get recommendations. a I think three people came back with the same name. So, I also have an alternative to propose, but I just don't know what their ultimate, position would be there. Thank you.
James:
Paul, whoever selected for this expert, can you do a background check on them on Lexis Nexis or whatever you can do that basically looks at if they've been contracted in this regard in the past and, and what side they represented.
You know what I'm thinking about here.
Paul:
Oh exactly. Yeah. Should be able to find a history of that. I mean, if it's an expert that's somewhat regularly used should be pretty easy to find. So I can absolutely run that down.
Tera:
Trust but verify I completely agree.
Nathan:
And so then Paul, the follow up I have for that. So we do have you know, this obviously says that, manufacture your hand or handle the warranty if there's a defect.
They did reply in and Layne replied in an email that they would make sure the costs are covered, kind of, no matter what is, sufficient, or do I need to have them amend this letter?
Paul:
You're asking if if would you're asking if what Layne said in this email gives me enough comfort that, you know, they'll cover these and
Nathan:
I can I can talk to you the email chain too open,
Paul:
It sets a short answer is yes because it sets up what's called an estoppel argument. You promise to do something, somebody relies on that promise and they do whatever it is, in reliance on that, even without a contract, you have a claim for that. But that's just this email alone that's without me looking at these other contracts.
But yeah, I mean, that's it's way better than nothing. yeah. They're they're giving you, you know, at least their interpretation of what their agreement is. but yeah, please send that to me. Let's let's discuss this. If, if you can send me all the individual agreements that we entered, and I'll just take a look and we'll figure out how to approach this and what sort of leeway we have as far as the expert, in choosing the expert and whether we like the expert, all the things we can address.
okay. Well, I'll set something up for this week, and we'll go through it. Perfect.
Jason:
Okay. We can probably close down the discussion for will A1 and A2 failures. And let's move on to the next subject. Update on the field. The field service technician position.
Describer:
On screen. Packet Page Number 136
Staffing/ Human Resources (Agenda Item VIII.B)
• We have posted the Field Services Technician position. After a thorough 2-month search, I was able to find a new vehicle for use in the position. The purchase price was $38,000. I am waiting on pricing and to schedule the vehicle to be taken in for graphics and lighting, historically this costs around $4,000. This is under the
approved $50,000 vehicle budget.
• At the August board meeting, I will seek approval to hire an Assistant District Manager, with a focus on diversifying the skills of District employees. Specifically, I will be looking for someone with experience and education regarding Engineering or Water Resource planning. This is in lieu of the planned Operations Manager Position.
Nathan:
So the field services technician position was posted, last or late last week sometime. we currently have nine applicants. I don't know, I haven't gone through those yet.
Jennifer is receiving, and she'll do our initial pass. was able to find a vehicle. We ended up getting a new truck. the used vehicle market is bizarre right now. And so basically, anything, any vehicle that had few enough options on it that I was willing to select it there that was used all had insanely high mileage.
so we did find one that actually fell off of a fleet purchase from another entity. And so we grabbed that one from the dealership. So next step is, I still need the final pricing for vehicle lighting and, vehicle decals. Those we do that through, company of roof Arapaho road calls called laws. they're the only vehicle lighting solution company that is certified to work with, police department EMT emergency vehicles.
We have had issues in the past with our lighting package is being called into question by Douglas County PD of whether or not we were legal. because we went all through laws, we were incredibly confident that we stay in that Layne. So we'll, get the emergency lighting. It won't be anything major, just a light bar and then some decals, and that'll be the next step on that.
IT is working through getting them, getting prepared for them all set up. And, next up from that'll be to move forward, bringing them on board. And then we'll look at bringing the, assistant district manager, position for approval at the August board meeting. So I'm hopeful we'll be able to find somebody relatively quickly.
getting eight applicants quickly is is a good sign.
Leah:
Who's on the interview panel?
Nathan:
So the interview panel for this one would be myself, Susan, our office operations manager. And, Jennifer.
Jason:
Any other questions regarding this section? Okay. Hearing none. Thanks, Nathan. We'll go ahead and close out the discussion for the, field service technician position. And let's move on to the discussion of the party in the park.
Nathan:
I apologize, I've been having some. I had a lot of problems bringing this pack together. so there should be two more bulletin points here.
I'll send that update up. So party in the park. Just wanted to give the board a heads up that that is coming up right around the corner. I don't have the date in front of me because it was supposed to be in the packet. but the board is obviously welcome to attend. I'm working with Sigler.
They're going to be, working on developing some talking points, not just for that event, but kind of keeping that updated. So we'll get those out to you. Our primary focus is going to be just trying to generate awareness. We're going to have all of our capital projects see how people feel that we're doing. We're going to be we're going to try and do a live poll.
So we'll have a QR code available for people to, join and do the poll of the survey. And then we're looking to have some sort of prize available to one survey winner, kind of a grand prize. Take our survey, maybe win a prize. so I will get those dates to the board. But obviously any of you that want to attend, you'll be welcome to.
Any questions on that?
James:
Is the, water truck thing going to be there?
Nathan:
Yep. Okay. The water cart will be there.
James:
All right. You getting any giveaways or anything like that?
Nathan:
Yeah. We're going to get, these. We've used them in the past, but they're relatively cheap. These kind of small fan mister things. Yeah, but they're cheap, easy, available.
And man, they bring people around like crazy. Especially if it's a hot day. So we'll get a we'll get a bunch of those out. So I hide them from your kids and, ahead of time because they will cause sibling battles for sure.
Tera:
So it looks like it's August 23rd, but if you could send out a meeting, a calendar thing so we can save it on our, calendars, that's great.
Absolutely.
Jason:
Okay. Any other comments for the party in the park? We'll go ahead and close that section down and move on to our next section. The discussion of the SDA annual conference.
Nathan:
So I wanted to get this in front of you guys a lot earlier than I did last year. So the annual special district association, special district associate association, easy for me to say conference is going to be in Keystone so that is September 16th through 18th.
Any board member that would like to go over has an interest in going at all. I can send you, kind of the event schedule. They do have a board member specific track the board members can go through. it's it's a very modular conference. So if you guys want to come up for the full, full run and follow a track, or is there specific classes that you'd like to come up for a day?
Nathan:
Just let me know, and I would be happy to set that up and I'll be there for the entire conference.
James:
I was just going to ask you, can you forward a agenda if there's something interesting? You know, I might drive up?
Nathan:
Yeah. Is there I guess the easy way to ask is, is there anybody that does not want me to forward them into an agenda?
I'll just send it out.
Jason:
How many people usually attend that? Oh, I don't know. In total it's it's it's it's a pretty good sized conference. They, they sell out the local hotel up there, which we don't stay at anyway because it's expensive, but, yeah, it's in the thousands.
Paul:
I was going to say maybe thousand 1500 ballpark guest.
But a lot of people.
Nathan:
Yeah. And it covers, you know, parks, trails, open space, fire, all the different flavors of Special District. So it's, it's a good, also just a good networking opportunity to see what other boards are doing, other managers, firms, the state is there. They give general overall presentations on financial health and forecasting.
And it's it's a really informative event.
Jason:
I think we'd all like to see more information about that. Thank you. Pass it along. All right. Any other comments for Nathan? Hearing none. We'll go ahead and close out.
Describer:
On screen.
PCWRA Reuse Pond Project
• At the most recent PCWRA board meeting we were informed that the State Revolving Funds (SRF) are not available for the fall application deadline. This does not mean that the funds are not available, however we will be exploring different funding options. We were also informed that we may be “surprised” by the projected project cost, though we have not received the updated estimate it is likely that project costs have increased significantly. This may require us to fund part of the loan through the SRF and self-fund the remaining portion of the project.
Tera:
Sorry I don't know because I, I don't know what list you had, but it wasn't the list that was apparent here. So I did want to ask about I had a question because I know we talked about it in study session with the financing.
But in your report about the Reuse Pond project, it says that, the projected although we may be surprised by the projected project cost and we've not received a updated estimate, but they think that they're more than what, more than that. It was 8 million or something.
Nathan:
So the, the last time that that we got a cost estimate for that, we really got a cost estimate for that project.
It was just under $6.5 million. That was a couple of years ago. Now, the way that the IGA is written, is it kind of caps that amount at, I think 8 or $8.5 million. The we may be surprised at the cost was a direct quote from West Martin, the, authority manager. So they're in the final stages of costing that out.
They're doing two different cost approaches. One, assuming that they'll need to meet federal, wage requirements and whatnot. And so we just don't have a great I don't have at least have a great feel for what that total project cost would be, which also calls into question some of the financing approaches. So if we exceed the, SBA loan or the state result, the SRF, the state revolving fund approved loan amount, then we'll have to look at potentially self-funding a portion of the project.
So we'll have more information on that. after the next board meeting.
Jason:
All right. we'll go ahead. And, that's all I had on the agenda for Nathan. That's clear. Right. so we'll go ahead and close out the district manager's report and, open it up to directors matters. Any of the directors have any comments or questions?
Leah:
I have, one comment. One question? so my comment is, for our comms team.
I've seen a handful of the posts on next door, and I think they're really well-written, so just wanted to pass along that feedback. And so far, I haven't seen any posts like devolve into crazy conversations. So, like, they're putting out good information. And then my question is around. Can't remember back when we did the strategy session, but we talked through kind of like what are our options for, you know, the future.
And you know, one of those was an integration. And we had talked about, potentially reengaging with Parker around August, which was kind of per their, ask and so I just didn't know, like, what are our next steps as a board? And it's not even just with Parker, but just, I guess, in general with any of the strategic options that we talked about.
Nathan:
So the first thing we're waiting on is the results of the Stantec study. We should have that by the end of September to kind of outline probably some of those, potential options, whatever those look like, and that'll, that'll very much come in the form of, like a menu. Like here are some potential options. Those will be presented at the board.
we can talk about what we want to pursue, what we don't want to pursue. I do have I have had some, conversations about doing some separate agreements with, Highlands Ranch water. Nothing that's ready to bring to the board yet, but. So there'll be some information coming in that direction. Ron and I have gone back and forth a little bit about touching base around this time of year.
Last that got left was a couple of weeks ago. I was waiting for his assistant to reach out to me, to give me some time so that he and I can get together, just touch base and see where the individual organizations are. But I need to circle back around and see where he is at with that.
I also am waiting to set a meeting with James Ecklund, so I've reached out to him. We've talked a couple times just to kind of get a feel for what's going on with the water Commission and I think that's about all we've got going. So we're getting to we're getting closer to a point where the board is going to have some decisions and some directional choices to make.
Leah:
Awesome. Thanks for the update. Appreciate It.
Jason:
Great questions. anybody else? All right. We'll go ahead and close Director's Matters and we will adjourn the meeting. Thank you very much, everyone.