Board Meeting

January 26, 2026

Transcript

Regular Board Meeting- January 2026

Castle Pines North Metropolitan District

Monday, January 26, 2026 at 6:00 PM MST to Monday, January 26, 2026 at 9:00 PM MST

7404 Yorkshire Drive, Castle Pines, CO 80108

Agenda

I. Call meeting to order

Presenter: Jason Blankaert

A. Pledge of Allegiance

B. Roll call & disclosure of potential conflicts

II. Resident Recognition

Presenter: Jason Blankaert Guest: Steve Dawes

Award of the "2025 Engaged Resident Award" to Steven Dawes, in recognition of his steadfast attention and thoughtful contributions to CPNMD.

III. Public comment period (three minute maximum per person)

Public comment is designed to share your thoughts and concerns with the district, but it is not an interactive discussion.

If you would like to participate, please sign up at the back of the room or if you are attending virtually, type your name and address in the chat feature to be placed in the queue.

IV. Consent Agenda

This is 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. Proposed Motion: I move to approve the items as presented in the consent agenda.

A. Approve January 14th, 2025, Special Session Board Minutes

B. Approve November 24, 2025 Regular Board Meeting Minutes

C. Approve November 17, 2025 Work Session Minutes

D. Ratify claims for payment including check numbers 29450 – 29523 and electronic payments issued from November 14, 2025 to January 13, 2026 totaling $2,665,662.73

V. Finance Report

Presenter: Molly Janzen Guest: Eric Harris

The Finance Director will present an overview of the District’s financial condition, including budget performance, revenue and expenditure activity, cash balances, and other financial matters for the Board’s review.

A. Consider approval of the Engagement of Rubin Brown for the 2025 Audit

Presenter: Molly Janzen Guest: Eric Harris

VI. Legal Counsel Status Report

Presenter: Paul Polito

Legal Counsel will provide an update on legal matters affecting the District, including but not limited to: contracts, compliance issues, ongoing or potential litigation, and other legal considerations for the Board’s information and guidance.

A. 2026 Annual Administrative Resolution VII. District Manager Report

Presenter: Nathan Travis

The District Manager will present a report to the Board regarding district operations, project status, administrative activities, and other matters pertinent to the District

A. Well Failure Updates

B. Deputy District Manager hiring update C. Lift Station Renovation Program Update D. Proposed Tank Site Discussion

VIII. Operations & Engineering Report

Presenter: Nathan Travis

These reports are included in the monthly Board Packet, this agenda item serves as an opportunity for the board to ask any questions they have regarding the reports.

IX. Director's Matters

Board members may raise and discuss items of interest, concerns, or announcements that are not otherwise included on the agenda.

X. Adjourn

Board President Jason Blankaert:

All right. Good evening and welcome to the Castle Pines North Metropolitan District Board meeting, January 2026 at approximately 6 p.m.. We will call the meeting to order and begin with the Pledge of Allegiance.

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

All right. All right. Thank you. Terrence. Do you need anything? We all good. Okay. We will move on now to a roll call. Roll call and conflicts. Jim. Present. No conflicts.

Board Member Director James Mulvey:

Jim. Present. No conflicts.

Board Member Director Tera Radloff:

Tera. Present. No conflicts.

Board Member Director Jana Krell:

Jana. Here. No conflicts.

Jason:

And we are missing Leah this evening.

District Manager Nathan Travis:

So Leah told me earlier she's going to join online. I just sent her the, updated instructions to get in through On Board. Okay, so she might join us in a minute.

Jason:

Yeah. We'll see if she. We'll wait to announce her when she joins.

Okay. And this is Jason Blankaert. I'm a president with no conflicts. The first thing we'd like to do tonight, I guess, is probably the third thing now is, we would like to, recognize a resident here who has put in a lot of time and effort joining our meetings. And, we would like to offer, sincere thank you.

And, bit of appreciation. Steve, would you stand up and, come up to the board for us? Yes.

Describer:

On screen. Steve Dawes, Castle Pines Resident rises to come up to the board to receive an award plaque. He shakes each board member's hand and they express their appreciation for his timely legal advice as a former Water Attorney here in Colorado. Then he returns to his seat.

Jason:

I don't have a room around. So no. Steve, thank you so much for all your contributions. We totally appreciate it.

Tera:

And, we know you just want to make us better And we appreciate your time and attendance. And thanks for you coming, too.

All Board Members Speak:

Well, thank you, thank you, thank you. We appreciate it so much. You're saying it's getting better and better.

Thank you. Okay. We'll give you a plaque disease. Trouble is, you know, you get a lot out of here. So, no, thank you. We truly appreciate it.

Nathan:

And then in addition to that, the Castle Pines Connection is actually going to be running a story next month. Steve, did you hear it, did you hear this? Say again. Yep.

Nathan:

So next month, the Castle Pines connection is going to be running a story on the award. And so they may reach out for some background. That'll that'll teach you to show up to our meetings.

Steve responds off-mic:

....

Jason:

Famous. Infamous. No, no, no .... (Laughter)

Tera:

We'll pass along. They should do a full background check.

Nathan:

From staff. Thank you as well.

Jason:

Yes. Thank you again. And, we will go ahead and close out item number two and we'll move on to item number three. The public comment period. The public comment is designed to share your thoughts and concerns with the district, but is not an interactive discussion. If you'd like to participate, please sign up at the back of the room.

If you're attending virtually, type your name and address in the chat feature to be placed in the queue. Is anybody speaking tonight? Welcome, Steve. If you can, give us your name and address, please.

Steve:

Steve Dawes 5703 Jasper Point Circle. You would be disappointed. I have to go for the 2026 award. Now on.

I just had a couple of comments in the packet today. There is a contract proposal for the auditor.

And on page 64 of your packet, there's a standard contract forms. And that includes that indemnification clause, I've discussed in the past. You may wish to delete. That's because they're really not enforceable. The other thing about this contract is it has a binding arbitration provision in it. You don't have to agree to that. And, one of the things I had suggested in the past when I handed out last year this thing from Colorado Special Districts, Property & Liability Pool, you remember that.

And it talks about provisions of contracts you may wish to consider. And so, my suggestion only is that you could come up with your own form of contract and not necessarily accept everything that's being presented to you. Obviously, the auditors want to have what they want to have in the contract for their own purposes, and that's perfectly acceptable.

But, I would think that, some of the suggestions in that special district property liability pool white paper, we could, might consider taking into consideration as far as provisions you would attach to your own contract. And in addition, we've talked before about getting three bids, and I know that's easy to use. The same contractors that you have in the past.

But sometimes in the companies I've dealt with over the years, even if they want to use the same contractor, they'll go out to get three bids, just kind of to satisfy that requirement and make sure that the dollar amount is within the acceptable range. The other thing I wanted to mention was I saw in the, in the, email that I got from the district in, in the website that the projects are now posted on there.

I have to say, I think it's terrific. And my regulations do whoever set that up your IT People, Nathan, the, Sigler or whoever they are, people. I think that's excellent. It gives everybody a good idea of what's going on. And the part I really like about it is nobody can really complain that, hey this boards is are operating independently with on their own without knowing what they're doing.

It's all laid out there. If somebody wants to know why the rates are going up, what's going on? All they got to do is take a look at it and it's very good for you guys, I think because then you can say you were notified. Everybody's been told what we're working on or why. So I think that's an excellent thing that's been done.

Thank you. Thank you.

Board Member Director James Mulvey:

Okay. Just a comment on that.

Is that working? Okay. Now I got two red lights. Just to sort of, you know, marry it, your comments. I felt the same way when I went in and sort of clicked on the map and stuff like that. I thought it was fantastic. It was exactly what we were talking about for like a year. And, tremendous job, the folks, just tell them, really enjoy this kind of cruising around town and looking at what's going on.

It's clear for me, you know, so I appreciate it.

Jason:

All right. Great. We will go ahead and, close out, the public comment period. And, we will open up the consent agenda. This is 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 will discuss them at a prior study session. Any board member may me may move to, Any board member may meet may move an item from the consent agenda to the meeting agenda at this time.

I propose to approve the items as presented in the consent agenda. Do I here a second?

Board Voting All Speak:

I'll second. Okay. Having a second. Let's go to vote. Jim approved. Tera. Approve. Jana. Approve. Lee is still. Oh Leah joins us now. Good evening. Leah. Hey, everybody. I approve. Thank you. And I approve as well. The motion passes.

Jason:

With that, we'll go ahead and close out item number four, and we'll move to item number five, the finance report with Molly Jensen and Eric Harris.

Describer:

On screen.

TO: Board of Directors – Castle Pines North Metropolitan District FROM: Eric Harris, Elevated Clarity (EC)

DATE: January 26, 2026

RE: Financial Report – January 2026 Board of Directors Meeting

General Fund Activity

At the Board of Directors Meeting held on November 24, 2025, the Board amended the 2025 Adopted Budget for the District’s General Fund. The 2025 Amended Budget for the District’s General Fund considers the general governmental financial activity (revenues and expenditures) now accounted for in the General Fund that was accounted for in the District’s Enterprise Funds (Water and Wastewater) previously.

Actual revenues as of November 30, 2025, were $2,454,889. As of November 2025, the District recognized $985,508 in property tax revenues received from Douglas County and $69,656 in specific ownership tax revenues. This includes $13,196 in delinquent property taxes collected. This represents 99.70% of the budgeted property taxes from the District’s mill levy year-to-date. This is a slightly lower percentage than compared to 2024 (100.01%).

Total actual expenditures as of November 30, 2025, were $2,197,670, resulting in a positive change in funds available of $257,219 as of November 30, 2025. With December activity still pending, the change in funds available at year-end is anticipated to be closer to the amount reflected in the 2025 Amended Budget of $44,652. Expenditures recorded in December will be significantly higher than revenues recorded in December since most of the General Fund’s primary revenue, i.e., property taxes, had been received as of November 30, 2025.

Enterprise Fund Activity

Billed water usage in the month of November 2025 was 25,644,000 gallons, a 13.51% increase from water usage in November 2024, and billed water usage in the month of December 2025 was 20,648,000 gallons, a .41% increase from water usage in December 2024. Cumulatively for the calendar year at the end of December 2025, the District has billed 2.74% less gallons than in 2024.

Molly Janzen, Accountant:

Good evening. Included in your packet beginning on page 26 is the written, memo with financial information. The first page includes some information that I'll go in further detail when we get to the financials for the month.

Describer:

On screen.

District staff and consultants presented $2,665,662.73 in expenditures for review at the work session held on January 19, 2026. These expenditures were brought to the attention of the Board for consideration of ratification at the Board of Directors Meeting to be held January 26, 2026.

Current Projects

Currently, EC is formalizing and documenting the District’s closing schedule related to its financial processes as well as working with District staff and contractors on implementing the following process changes and projects:

-Assist with the implementation of CUSI (billing system) UB4 in the first quarter of 2026. District Finance reviewed CUSI’s security policies and procedures and feel that they provide an appropriate level of control.

-Coordinate with Blackbaud Advisory consultants on improvements to the District’s general ledger and setup in the financial system. This includes updates to report groupings and the chart of account structure as well as exploring utilization of additional features within the financial system to achieve efficiencies.

-Comply with filing deadlines for the 2026 Annual Adopted Budget, 1099’s and W2’s.

-Streamline and enhance monthly financial reporting.

-Begin preparation for the 2025 annual audit, anticipated to begin the week of May 11, 2026.

Preparation will include documenting and removing from the District’s balance sheet any assets transferred from the District to the City of Castle Pines in 2025.

-Begin updates to organizing electronic records for the District.

Anticipated Upcoming Schedule (subject to change)

January 26, 2026 – Board Meeting

January 31, 2026 – File 2026 Annual Adopted Budget with the State of Colorado, 1099’s, W2’s February 16, 2026 – Work Session

February 23, 2026 – Board Meeting

Molly:

So the thing that I wanted to point out in the memo is on page 29, just since we're in a new year now, just pointing out some of the things that we have going on, with the district assisting with the implementation of the UB4, billing. So this is the billing software that the district currently has.

It's been a while since, we've been through a substantial update. So that's going to be taking place, this first quarter of 2026, coordinating with Blackbaud. So Blackbaud is the financial system that the district has, the accounting system, we've been working with them on identifying features that are not currently being used in the system, that we might get some efficiencies out of.

And also, Eric talked last week about updating the chart of accounts to, help us do some streamlined financial reporting. The other thing we have going on this month is 1099 W-2s, and we will be filing the 2026 adopted budget by the end of the month. Also, I did mention already the financial reporting. We're hoping to streamline that and also enhance it, add some, hopefully valuable information for the board.

We are beginning preparation for the 2025 annual audit, that is anticipated to begin the week of May 11th. They have already opened up the portal, though, so we are hoping to get a head start and start uploading any information that we already have available. I expect it to go very well. One of the things with the audit I did want to point out this year is because we had a number of assets that moved from the district to the city.

That will be a substantial portion of the audit this year to take those assets off of the district's books and work with the city to make sure they understand what's coming on their books. And then also beginning updates to organizing electronic records for the district. So just wanted to kind of highlight, as we're entering the new year where we're at with things.

Tera:

And so Molly, did you say that was part of the audit preparation with the transfer of assets, or do you think that that's going to be a substantial note in our audit report for the year?

Molly:

I, you know, not quite to the point where we have identified what the impact of that will be. In just preliminary looking at the the assets that we have, I'm coming up with some discrepancies between what the county has recorded and valued and what we have on our books. So we might end up proposing to the auditors a prior period adjustment.

And what that means is that we would change our beginning number if we feel like we don't have a good basis for that number, it doesn't impact any day to day operations at all. But what we want to do before we just hand them over to the city is make sure that they're getting a good value. You know, the most accurate information that they can get to.

So, we'll see how it how it happens, but it's just it impacts the government wide statements. It doesn't have anything to do with cash or anything like that, but..

Tera:

Right, it just sounds like it might end up being one of their notes. But, in that discrepancy, do you think that's because the county records and everything have been there so old and everything?

Describer:

On screen.

CPNMD BALANCE SHEET AND STATEMENT OF REVENUES & EXPENDITURES

BUDGETARY (NON-GAAP) BASIS

December 31, 2024 Actuals, 2025 Adopted/Amended Budget 2025 Actuals, Budget and Variance Through November 30, 2025, and 2026 Adopted Budget

Molly:

It could. Yes, very well could be part of it. Yeah. Then we're so turning to the financials for the month included in your packet starting on page 30. You will be seeing the November financials this month. Next month we will be looking at preliminary 2025. So we'll be able to evaluate the entire year. So I won't spend a significant amount of time on the November financials.

But I did want to point out a few things. If we can turn to page 33, this is the district's general fund.

Describer:

On screen.

CASTLE PINES NORTH METROPOLITAN DISTRICT

STATEMENTS OF REVENUES AND EXPENDITURES WITH BUDGETS

BUDGETARY (NON-GAAP) BASIS

December 31, 2024 Actuals, Actuals, Budget and Variance Through November 30, 2025 2026 Adopted Budget - General Fund - Molly describes.

Molly:

And what you'll notice, that's different in this set of financials than has been here previously, is we actually have, budget for the line items. So you'll remember that when, we started the year, we had not identified transactions that were associated with the General Government for this fund.

And in November, the board amended the budget so that now we actually have a budget. So that's why now you will see those budgeted numbers along with the actual, as you would expect, because we had most of the year complete by the time we evaluated what those budget numbers should be. We are coming in very close to budget.

So if you look at, the revenues recorded through November, $2,454,089. Thank you. Budgeted $2,761,854. You'll see in that favorable unfavorable variance column second from the right, you can identify the revenues that are coming in a little bit under budget. Since we are at the point in the year where we've received the majority of our property taxes, we are looking at not receiving a lot more revenue from November through the end of the year.

However, with our expenditures, we will have a full month of expenditures. So even though coming down the actual column and looking at the change in funds available, $257,219, we do expect that change in funds available to be closer to what we budgeted, which was $44,000. So really, the idea with the district's general fund is to have the revenues and the expenditures come in fairly close.

We will end up with, increase. We believe we'll end up with an increase in the fund balance. And that's something that I had mentioned last time, that we'll we'll be looking at bringing to the board, some ideas on how to, document what those reserves should be kind of target, what those will be.

So we will be looking at that later in the year too. So that's the district's general fund. Do you have any questions or comments on that?

No.

James:

Again, this might be a better Nathan or poll question. As far as IGA and closeout, that's going to be complete the end of this year. You think or is it going to drift into, you know. I'm just wondering where we were with all the plots. And I thought that work was completed and the transfer has essentially happened or not happened.

Or are we still working through a couple of items?

Nathan:

So yeah, we're still working through a couple. The majority of the properties of transferred, the ones that are left just are really just going through the city process.

Describer:

On screen.

CASTLE PINES NORTH METROPOLITAN DISTRICT

STATEMENTS OF REVENUES AND EXPENDITURES WITH BUDGETS

BUDGETARY (NON-GAAP) BASIS

December 31, 2024 Actuals, Actuals, Budget and Variance Through November 30, 2025 2026 Adopted Budget - Conservation Trust Fund - Molly describes.

Molly:

All right. Moving on to the next, set of financials, the district's conservation trust fund. This is related to the IGA with the city, those proposed the conservation Trust fund moneys come to the district now and then we remit that as just to flow through, over to the city. Once the service plan has been amended and we've had everything transferred, we will be able to then work with the state to have those revenues go directly to the city instead of coming through the district.

Describer:

On screen.

CASTLE PINES NORTH METROPOLITAN DISTRICT

STATEMENTS OF REVENUES AND EXPENDITURES WITH BUDGETS

BUDGETARY (NON-GAAP) BASIS

December 31, 2024 Actuals, Actuals, Budget and Variance Through November 30, 2025 2026 Adopted Budget Water Enterprise Fund - Molly describes.

Molly:

So moving on to the Water Enterprise Fund, this is page 35 of your packet. First thing I wanted to point out here is the operating revenues. We have been trending closer to the revenue that we received in 2024. You can see that we received $4.3 million. We had budgeted $3.8 million just to be conservative. And we are at the end of November at 4.3 million.

So we will be on the higher side of what we budgeted for revenues. Looking at expenditures, we're also trending higher, which is not a surprise as we've been talking about it throughout the year. But if you look at page 36.

You can see that our repairs and maintenance, which this again, not a surprise, we're turning over there. We're also trending a little bit over on utilities, which is towards the bottom of the page. You can see that the budget that was adopted for utilities for 2026 was $946,510. what the audited 2024 was higher than that.

So just coming in, we were were the budget was a little low for that you can see that our budget for next year, hopefully we've included enough budget there that we'll be able to cover that. The, the line item that that sticks out that is under budget is the centennial delivery charges. As of the end of November, those were $47,713.

I didn't have a chance to look at what how December came in, but that that is coming in a lot lower, than we anticipated in the budget. Then when you get to the, the the end of the page, there you see an operating income and loss. I just wanted to point out that because we did not amend the 2025 budget, it does not in the budget, we were projecting a $1.8 million loss, but because we moved certain line items over to the general fund.

So even though our expenditures are coming in higher, revenues coming in a little bit higher. But that's why you see that actual through the end of November of a $953,000, because the the numbers in the budget column include all those line items that moved over to the general fund. So it's a little bit confusing this year to look at those.

Describer:

On screen.

CASTLE PINES NORTH METROPOLITAN DISTRICT

STATEMENTS OF REVENUES AND EXPENDITURES WITH BUDGETS

BUDGETARY (NON-GAAP) BASIS

December 31, 2024 Actuals, Actuals, Budget and Variance Through November 30, 2025 2026 Adopted Budget - Water Enterprise Fund (Continued)- Molly Describes.

Molly:

Then moving on to the next page, page 37. The non operating revenues, interest is coming in about $1 million over what was budgeted. And then you can see the connect fees are also a little bit over what was budgeted. We received, I can't remember how many Nathan in December, but some additional revenues in, in December that were projected when we did projects, for the annual amounts, we, we did identify that.

Then you get down into the water non operating expenditures. And this is primarily for capital projects. You can see that the budget that was adopted was 6.9 million. We're at the end of November $3.2M. So that's that's going to come in under budget. Again with capital projects. It's difficult sometimes to identify which fiscal year those expenditures are going to fall into.

That's something we're continuing to work on, getting better reporting and a better handle on protecting those. The timing of those.

So that is where we're at again, this financial year through November. We on a quarterly basis, project expenditures for the entire year. That's why you don't see that annual projections column in this set of financials, because it's it's not the end of a quarter. So just to point that out. Any questions on the Water Enterprise Fund?

Tera:

So I, I think I was going back to the notes on page 27, and I think you covered a lot of these as you were going through.

But so we have, you know, the water enterprise repairs and maintenance, those were higher than we have other, ones that were lower. And I didn't know if that was because of the moving them around between the enterprises, if that was it. And then I had also noticed that the utilities had been way off and it sounds like we under estimated them.

And I wasn't sure if the utility costs had gone up. And then it reminded me to ask about what we're doing with the audit, with the core audit with Core.

Nathan:

Yeah. So in terms of the utilities, that's going to be the increased utility costs is going to be offset or directly tied to that, increase in revenues.

So it's really just we produced more water than we anticipated. And so there's more utility costs associated with that. What was the second part of your question? \\

Tera:

Because you were going to do that audit or not? I call it audit, but. Oh, the with core.

Nathan:

Yeah. I'm still working on getting that in place. like 4% reduction.

I've been kind of doing some soft touches about once a week and just haven't gotten that finalized yet. I'll stay on it.

Tera:

And then the centennial delivery charge. Why was that lower?

Nathan:

That one is lower because we delayed going on to Highlands Ranch for the filter project. And so that number will be a little bit higher this fiscal year, because we're going to push into at least early June on that connection instead of, beginning of May.

James:

Okay. I got a question for Molly.

As far as capital projects, is there any portion of the billing that hasn't been received yet, or are we going to pick that? You know, I'm just wondering if, you know, we've been charged, but we haven't actually..

Molly:

Received that pay apps. Yeah. Yeah, we're we're we've got a better handle on that. I believe all of the major projects at the end of November, we had everything current at that point.

Yeah. So we're, we're monitoring that and trying to make sure that we get those in there.

Jim:

Okay. So that in this upcoming year, that stuff is sort of factored in already you think as far as capital? Like I just want to make sure we have a roughly covered. You can't anticipate everything.

Nathan:

Yeah, we were good this year.

Molly:

Any other questions before we move to the wastewater fund?

Jason:

Leah, take a break and see if you had any questions.

Leah:

I'm all good so far. Thank you though. Great. Thank you.

Describer:

On screen.

CASTLE PINES NORTH METROPOLITAN DISTRICT

STATEMENTS OF REVENUES AND EXPENDITURES WITH BUDGETS

BUDGETARY (NON-GAAP) BASIS

December 31, 2024 Actuals, Actuals, Budget and Variance Through November 30, 2025 2026 Adopted Budget - Wastewater Enterprise Fund - Molly describes.

Molly:

All right. On page 38, the Wastewater enterprise Fund. You can see the the budget for revenues $2.4M. We're at the end of November. $2.4M 2024 audited was $2.5M.

So again, looking like we're coming in probably a little higher than what was budgeted there. Really on this page, not a lot to point out. Because again, those line items that, were anticipated for 2025 that were moved to the general fund so we can move on to the next page.

Looking at the operating income loss, about two thirds of the way down the page, the actual you can see we're at $960,000. In this fund. We, It's it's looking like the revenues are covering those operating costs. We've talked about that before. The issue with this fund is really having enough money to do the capital projects.

So that's something we're going to continue to, to look at, to see if some of those funds could be used for capital or just what we do with that, but just wanted to point that out.

And again, the change in funds available in the budget was a -$1.7M. That's again related to those general fund costs that moved over the actual through November was 299,000.

Any questions on the wastewater fund?

Jason:

I don't think so.

Molly:

All right. The rest of the items are just supplementary. You can see the property tax schedule where we've received the majority of the property taxes. The receivables, which, were at that time of year where we don't we aren't carrying as much of a receivable balance as we do in the in the summer months when we're billing for that high water usage.

And then I'm not quite sure what happened here, but pages 44 through.

53. It looks like we just included, that same information that that you just approved in concert and dissent agenda just got in there twice. So you can ignore those pages.

And then the next, I should I go ahead and do the audit engagement letter?

Describer:

On screen. Page 54.

November 6, 2025

Mr. Nathan Travis

Castle Pines North Metropolitan District 7404 Yorkshire Dr

Castle Pines, CO 80108

Dear Nathan,

1900 16th Street Suite 1700 Denver, CO 80202

T: 303.698.1883

E: info@rubinbrown.com www.RubinBrown.com

We appreciate the opportunity to be of service to Castle Pines North Metropolitan District (“Client”). This letter ("Letter") sets forth the services that RubinBrown LLP ("RubinBrown") will provide for you. In order to better understand each party’s obligations, the terms "we," "us," and "our" refer to RubinBrown and the terms "you," "your" and "management" refer to Castle Pines North Metropolitan District. Your engagement of RubinBrown will be governed by the terms of this Letter and the attached RubinBrown LLP Engagement Terms.

Scope of Services

We are pleased to confirm our understanding of the services we are to provide Castle Pines North Metropolitan District for the year ended December 31, 2025. We will audit the financial statements of the governmental activities, the business-type activities, each major fund, including the related notes to the financial statements which collectively comprise the basic financial statements of Castle Pines North Metropolitan District as of and for the year ended December 31, 2025. Accounting standards generally accepted in the United States of America (GAAP) provide for certain required supplementary information (RSI), such as management’s discussion and analysis (MD&A), to supplement Castle Pines North Metropolitan District’s basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to Castle Pines North Metropolitan District’s RSI in accordance with in the of. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited:

• Schedule of the District’s Proportionate Share of the Net Pension Liability

• Schedule of Revenues, Expenditures and Changes in Fund Balance (Budget and

Actual) - General Fund

• Schedule of District Contributions - Cost-Sharing Defined Benefit Plan

RubinBrown LLP is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.

Jason:

And just for a background, we've been using Rubin Brown for how many years now?

Molly:

I'm not sure the exact number of years. I know that Eric was involved when Rubin Brown came on line. So it's it's been a number of years, but not not 20 years or anything like that.

I appreciate the comments about potentially getting bids. We, I know in other entities that I worked with, we we would do that every five years. It doesn't make sense to do it every year or even every two years just because typically with audit firms, when you start fresh with them, it's it's a lot more work on both the client side and the auditor side.

Which means more cost. The auditors professional, you know, they do try not they, they have to comply with certain standards, where they have peer reviews and things like that. So, so there is some, some protection there. But I do appreciate the comments. And that will be something we will likely be talking about in the near future.

We had a good experience working with Rubin Brown last year. It was my first time working with that firm. And I found them to be very responsive, responsive and, very, the audit went very smoothly. I will, point out that in the, letter, their fee, it's towards the end, it's, page 58.

Describer:

On screen. Page 58.

Timing and Fees

Our fee for our Attest Services will be between $50,000 and $54,000 plus out-of-pocket expenses, technology and administrative fees. The fees are based upon anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the engagement. Unexpected circumstances in an audit engagement would be untimely/delayed delivery of requested items by your team, receipt of supporting schedules that do not properly reconcile to account balances, technical topics and implementation of GASB standards outside of the scope of the audit, and/or District employee turnover. If additional fees are necessary, we will bill for the additional hours at a rate of $250 an hour and discuss the accounting assistance needed with your team and work closely with you to structure our work to ensure it is completed in a cost-effective manner.

Engagement Terms

Attached is an additional statement of terms regarding our engagement titled, RubinBrown LLP Engagement Terms (hereinafter "RubinBrown Engagement Terms"). The RubinBrown Engagement Terms are hereby incorporated by reference and the contents of this Letter should be construed in accordance with the terms set forth therein, unless expressly stated otherwise in this Letter. When construing or interpreting the contents of this Letter or the terms of our engagement, the RubinBrown Engagement Terms will govern. To the extent any apparent or actual contradiction may exist, the RubinBrown Engagement Terms will be deemed controlling and will supersede any such statement contained herein, unless expressly stated otherwise in the provision or portion of this Letter at issue.

Conclusion

We appreciate the opportunity to be of service to you. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this Letter and the RubinBrown Engagement Terms, please sign the enclosed copy and return it to us. By signing the enclosed copy of this Letter, you acknowledge that you have read, understood and agreed to the terms as set forth in this Letter and in the RubinBrown Engagement Terms.

RubinBrown LLP is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities.

Molly:

Their fee is it says between $50,000 and 54,000. We did budget in 2026, 57,002 40. So the budget that we have in place would be enough to cover their costs.

And I know Mr. Dawes made some comments also about maybe removing some language in, in the contract. So I know that's something that we've been talking about is, is that whole idea of having more of a standard from the district side that we can we take more of the proactive approach with, with vendors, potential vendors. So I know that's something that we're continuing to work on.

Legal Counsel Paul Polito, Esq.:

And I would recommend that you approve the contract subject to the removal of that indemnification clause. I think this is a process issue at at this point, after, Mr. Dawes had brought up the last indemnification clause that was left, me and Nathan discussed about a process where I see every single contract, regardless of how many times it may have run through the district or whatnot.

Which is still our understanding with the new On Board platform, different staff can upload things at different times. And so I simply didn't see this until it was until it was posted. I was afraid that our most engaged resident may beat me to the punch on this one today. But I think this is an easy fix.

I'll just I'll talk with Nathan and Eric about a process where I see every single contract, regardless of who it comes from. And a standard form of agreement will solve most of these, most of these issues. I'll be presenting one to the board at the next meeting. You can take a look at the terms, you know, talk about, any adjustments me want to make.

But I just wanted to say that they.

Jason:

Thank you. Do you have any question?

Leah:

This is Leah, Nate, I have a, I have a quick question. For On Board. Do you do you know, like, is there any functionality where certain? because it sounds like based off of what Paul said, people can upload stuff like, are we able to lock down certain things where they're not uploaded unless they've been approved?

I just want to make sure, like, I'd love to get to the point where we're not sharing contracts that haven't been approved by Paul. Just so that we can present better.

Nathan:

I don't know, off hand. I'll certainly look into that. And then failing that, we'll just make sure we have that process in place that everything goes through.

Paul or at least his office before it, before it gets posted as well. But I'll look into that functionality On Board. I can control who can post and where they can post it too. I just don't know if I can add that additional layer of, approval or not, but I'll look into it. Thanks. Thanks, Leah

Tera:

And thank thank you, Molly and Paul for addressing those questions.

That was very helpful. And then do we have a date? I mean, I when I was looking through there at the timing, do we have a date for the audit if we accept this or.

Nathan:

Yes, May 11, the week of May 11th. Okay.

Jason:

Okay. So any other questions. So we need to present a motion to the board to consider or to approve the engagement letter with the intimidate... I knew was going to do this, with the intimidation clause or in?

Paul:

Subject to the removal of the indemnification.

Jason:

Thank you. What he said. I'll make that motion.

Tera:

Okay, I second that. But I also have a question because what about there were two things. The other was the, I don't, hang on, was the indemnification clause, and that is so hard to say. And there was this thing that's all in bold. I remember, the arbitration. Yes, yes.

Paul:

You can talk to a bunch of different attorneys and they'll give you different viewpoints on this.

I have some that, Well, I have colleagues that completely hate these arbitration clauses because they've been burned by a single arbiter, and there's not a lot of recourse. On the other hand, it's certainly quicker than going to district court. I haven't been burned by arbitration before. I've done arbitration. I think it's been fine. I don't really have any sort of knee jerk reaction against it.

Tera:

Thanks. Well, it's a motion in a second, so let's have it go forward. But when you're taken into consideration, when you're coming up with our standard contract language.

Paul:

Absolutely. Yeah. I'll, I'll present something I think we can all agree with.

Jason:

We can deny the current motion and remotion. You Alright. Okay. We'll go to vote then, Jim.

Board Voting All Speak:

Approve. Tera. Approve. Jana. Approve. Leah. Approve. I approve as well. The motion passes.

Jason:

With that, we will go ahead and close out the finance report. Thank you. Molly, and we will move to our next item, the legal counsel report with Paul. Paul.

Describer:

On screen.

MEMORANDUM

TO: Castle Pines North Metropolitan District

FROM: Seter, Vander Wall & Mielke, P.C., Paul Polito, Esq. and Kim J. Seter, Esq. DATE: January 23, 2026

RE: Legal Status Report for the January 26, 2026 Board Meeting

UPDATE REPORTS ON MATTERS IN PROCESS

MATTER: SERVICE PLAN AMENDMENT

Status: The intergovernmental agreements with the City requires CPN to amend its service plan to eliminate Park and Recreation and Stormwater services. Now that the Property transfers are near completion, counsel is drafting the Amended and Restated Service Plan and related petition for submission to the City of Castle Pines.

Action: None required at this time.

MATTER: RAW WATER AGREEMENT – THE RIDGE GOLF COURSE

Status: CPNMD will be entering an agreement with The Ridge Golf Course regarding its use of CPNMD raw water. Counsel has reviewed the agreement and amended terms, including terms to limit the delivery of water when not reasonably available, clarify the rate structure, and clarify the delivery point of the water. District Manager, Finance Director, and counsel will be attending a meeting with representatives from the Ridge, at the Ridge’s request, to discuss water capacity concerns.

Action: None required at this time.

Page 2 of 4

MATTER: HIDDEN POINTE METRO DISTRICT INCLUSION

Status: Hidden Point Metropolitan District (HPMD) Board had originally 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 discussed inclusion terms with Hidden Point representatives on March 11, 2025. To date, Hidden Pointe has not accepted the terms of the agreement or held a meeting to vote on same. Counsel sent correspondence to Hidden Pointe representatives on September 12, 2025, sending a slightly revised agreement to remove the request of any outstanding fees from Hidden Pointe. Hidden Pointe’s district manager acknowledged receipt and will be in touch to discuss with counsel. Counsel will present the inclusion agreement for CPNMD board approval following Hidden Point’s authorization of the agreement.

Action: None required.

MATTER: RULES AND REGULATIONS UPDATE

Status: The Board requested the District’s rules and regulations be updated to account for more limited district functions regarding parks, trails, and open spaces. Legal counsel is currently revising the District’s rules to account for more limited operations, as well as to update administrative enforcement requirements regarding backflow program.

Action: None required.

MATTER: PARKS, OPEN SPACE AND RECREATIONAL FACILITIES IGA PROPERTY CONVEYANCES

Status: The Board approved conveyance of properties in all 5 Batches that have nearly been completed.

Quitclaim deed documents related to the Parks, Open Space, and Recreational Facilities IGA property conveyances have been drafted and reviewed for execution. These deeds specifically address parcels without utilities within the District. The District is executing these documents. Counsel continues to collaborate with City counsel to finalize all necessary documentation to complete the conveyances.

Action: None required.

Page 3 of 4

MATTER: JAM RANCH INCLUSION REQUEST

Status: The property owner has requested inclusion into the District and has submitted the required documents in accordance with the provided checklist and form. The District manager and legal counsel met with representatives for Jam Ranch on March 5, 2025 to discuss the recently passed Renewable Water Resolution and its potential implications on Jam Ranch’s proposed inclusion.

Jam Ranch is moving forward with its development and desires to be included within the District. It is currently exploring the potential provision of water supply to the project using the properties’ current water rights through a potential future metropolitan district. Jam Ranch desires to include within the District for sanitary sewer service. The District Manager and legal counsel met with representatives for the Jam Ranch project during the week of April 28, 2025, to discuss the potential inclusion. Jam Ranch is currently assessing its options and will inform the District of its intentions once decided.

Action: None required at this time.

MATTER: SALE OF FARM PROPERTIES

Status: The District has received a contract and offer of $469,504.00 for “36.68 estimated mineral acres.” Legal counsel communicated with the potential buyer to determine the extent of “mineral acres.” This is a price of $12,800.00 per acre but counsel is not certain the buyer is offering anything for the surface rights. This offer is being revised and will increase substantially.

District personnel, including general counsel, water law counsel, district manager, and financial manager, held a conference on March 18, 2025, to discuss ideal timing and efficacy of potential sales of farm property, mineral rights, and water conveyance agreements pertaining to farm properties. General counsel and district manager will continue to update the board as potential sale opportunities arise.

Action: None required.

Page 4 of 4

MATTER: REVISIT MEMORANDA OF UNDERSTANDING BETWEEN CASTLE PINES METRO DISTRICT AND CASTLE PINES NORTH METRO DISTRICT RE WATER RIGHTS

Status: We drafted a Memoranda of Understanding (MOUs) between CPNMD and CPMD regarding the joint use of shared water rights as part of the effort to include in Parker Water. It was not executed once the Parker Water and Sanitation District inclusion was terminated.

We are revisiting the MOUs and discussing them with the water attorneys to ensure clarity, proper documentation, and resolution and will restart discussions with CPMD at that time.

Action: None required.

Paul:

Good evening again. Okay. so in the legal counsel's report, as I mentioned at the last meeting, my my priority at this point is amending the service plan.

Also, like I mentioned, I will have that presented, for the board for consideration at the February work session, to be voted on at the regular board meeting. So I will jump to the administrative, the annual administrative resolution before I do. If anybody has any questions on the legal status report, happy to answer them.

Tera:

Thanks. A couple quick ones. Just as I'm looking through there. It looks like we have a couple items that we've been carrying that we we will be coming up on a year here in the first quarter and second quarter, like the Jam Ranch. We haven't had any updates since April. Seal Farm properties, have it. Does it look like we've had any update since March?

So just as you're looking through that and be thinking about how those are getting a little, I guess, stale.

Paul:

They are and it's always a question in my own mind of whether it even keep them on here. still or not, we don't know what's going to happen with Jim Ranch. The ball is still in their court. I know that they were having issues, and maybe you have more current information than me, but, they were trying to work out, how to sort out their water rights issues.

It's technically still active. The ball is not in our court. We're just sort of waiting to see if anything happens from them. We don't know if it ever will.

Tera:

Yeah, I understand what you're saying. As I look through stuff, maybe that is a consideration whether if we're just carrying something of a significant. I don't know.

Paul:

It's a fair point.

I'm happy to take a second look at this and clean this up. Just as far as is your experience, you know, is, obviously can get confusing if you're looking at things in questioning why they're on there. And I certainly don't want that. So, I'll make an effort to, to clean this up a bit. Maybe I can just have a section of inactive matters that that may be brought up later.

And so that will at least cue you into to that.

Leah:

That's what I was going to ask for, Paul. Like, I personally find value in carrying it over if it's still an open issue just for like tracking purposes. But when it's mixed in with active stuff, it makes it trickier to consume. So like for me personally, it would be helpful to have like everything in your report, but maybe it's like the active stuff is at the top and like we've got a stale section and it's just kind of there for, for tracking purposes.

But we kind of know like everything here, there's there's really nothing updated to look through. Totally open. I was just trying to think through because I, I agree with you, Tera, but, if something like that,

Tera:

That's a great that's a great recommendation.

Paul:

Yeah, absolutely. So I will I'll make that change going forward the next legal status for you see, we'll we'll have that bifurcated, active and inactive status.

So, you're good. Any other questions about the legal status report? Blue, before we move on to the resolution?

James:

Just Hidden Point. J Just if you can talk to that for just a minute, your own personal feelings where you think things are.

Paul:

The last word I receive from them is that their legal counsel is now reviewing the agreement.

And I wish I had more than that, but that's really all I know at this point.

Leah:

Jim, I had the same question last, study session.

Paul:

I'll continue to ping them. I'll give you an update every every board meeting, as to the most recent efforts, hopefully it's more than that. But that's about all I can do.

Tera:

There seems to be no sense of urgency on their part. I wonder if they remember they're paying a higher rate for water.

Paul:

It only benefits them. It's completely to their benefit. I yeah, wonder the same thing. Any other questions on the status report before I move on. Okay. With that, you can move on to the annual administrative resolution.

Describer:

On screen.

CASTLE PINES NORTH METROPOLITAN DISTRICT DOUGLAS COUNTY, COLORADO

RESOLUTION NO. 2026-1-__

ANNUAL ADMINISTRATIVE RESOLUTION OF CASTLE PINES NORTH METROPOLITAN DISTRICT (2026)

At the regular meeting of the Board of Directors of the Castle Pines North Metropolitan District, City of Castle Pines, County of Douglas, Colorado, held at 6:00 p.m., on Monday, January 26, 2026, at 7404 Yorkshire Drive, Castle Pines, Colorado, it was moved to adopt the following Resolution and ratify actions taken in connection herewith.

WHEREAS

A. The Castle Pines North Metropolitan District (the “District”) was organized as a special district by Order of the District Court in and for Douglas County, Colorado; and

B. The Board of Directors of the District (the "Board" or "Directors") is required to take certain actions to assure the efficient operation of the District; and

C. The Directors may receive compensation for their services subject to the limitations imposed by § 32-1-902(3)(a)(I) and (II), C.R.S.; and

D. § 32-1-103(15), C.R.S., requires the Board to publish legal notices in a newspaper of general circulation in the District; and

E. § 24-6-402(2)(c), C.R.S., requires the Board at its first regular meeting of the calendar year to designate a public posting place within the boundaries of the District for notices of meetings, in addition to any other means of notice; and

F. § 32-1-903, C.R.S., requires the Board to meet regularly at a time and in a location designated by the Board, and special meetings may be held as often as required (A) (1) telephonically; (2) electronically; or (3) by other means not including physical presence that provide for members of the public to attend; or (B) at a physical location within the boundaries of the District or which are within the boundaries of any county in which the District is located, or, any place within twenty miles of the District boundaries, after resolution to meet in another location is adopted by the Board and notice appears on the meeting agenda; and

G. § 32-1-903(2), C.R.S., requires notice of the time and place of regular and special meetings in accordance with § 24-6-402, C.R.S., on a website or other online presence of the District, or at a physical posting location designated by the Board at least 24 hours prior to the meeting; and

Nathan:

Which is in the, this is page, packet, page 72.

Paul:

Thank you. Nathan. I had this open on my own PDF. So this is a resolution that the board executes every single year. It delegates a number of responsibilities, to district staff. I'll go ahead and run through the highlights here. This is in very substantially the same form as we ran through last year.

I will highlight that, on page four of the resolution, paragraph two, it does, the board is designating the Douglas County News-Press as the newspaper of general circulation. Circulation again? I know that there is a question about a year ago as to the type of newspaper used. And can we potentially use, Castle Pines connection?

It does have to be, newspaper of, local circulation that circulated at least weekly. So the Castle Pines connection circulating monthly. It prohibits it from from being one of the newspapers weekly.

Tera:

And I was going to ask about that because I know I asked it last year, and I understand the timing of it.

However, the discussion last year, I thought we were going to go back and check because this is, weekly. It's never been delivered to my part of the city. So I'm kind of, not worried, but I find it curious how it meets that it meets our criteria. Because the other thing is, I know that it's changed hands, and it may not.

You know, I just am asking to go back and make sure that it still meets our criteria, whatever the criteria is, because it's had some change your hands and other things, and it doesn't go everywhere in our jurisdiction.

Paul:

So I will I so last year I did check that it was weekly even just right now. I looked it up very quickly.

It is does say it is published weekly, but if there is some concern about whether it's, it's actually circulated within the whole district, we can certainly we can designate another paper, and if the board has any suggestions and, you know, we can we can certainly discuss it and I can do some research and look into whether it's a weekly circulation.

And we can amend this if there's an appetite for it. It's just something to keep in mind. There is no suggestions. Now, if you want to bring one to the next meeting, we can you can certainly discuss it.

Nathan:

Is that something that we could post in the Douglas County News-Press or whatever it's called? And the list that is the paper of record here.

And then just a matter of as a matter of process, also include that in Castle Pines connection once a year. So we have a posting that meets the statutory requirement. And then we also just make sure...

Tera:

I mean its the statutory requirement. I know the other one is absolute is direct mailed to every address or something. But and I know it it meets a statutory requirement.

I just feel like this is another thing that just gets perpetuated forward and we don't know whether that really that publication has changed or if it meets. No one's going there too. I mean, it's a legal thing. No one's going there to see what we're posting, because I'm imagining that we are also posing in on our website and stuff.

I just am trying to highlight that some things just keep sometimes to get move forward without being reviewed.

Paul:

And the district can always go above and beyond its requirements. If if the district wants to post something in the Castle Points connection that's also being posted, in the Douglas County News-Press, that's always an option. You can always go above those minimum requirements.

Tera:

Mostly I'm interested if they're ever going to change the state statute, because .... in the newspaper to look for these things.

That's really my question.

Paul:

I think the printed paper lobbyists are probably getting less powerful as the years go on. So maybe not too much longer.

James:

Much like Tera. I don't receive that either in my location so.

Paul:

It is an artifact. It is.

Jana:

Don't you have to pay for a subscription. Isn't that the reason we don't get it?

Oh. I'm looking. You do. It's $85 a year. So that's I mean, that's it's deliverable, but it's a subscription.

James:

So then I think we should start talking about Castle Pines Connection and you can't. I know by, satisfying the law, I get it. But I'm also thinking we should probably engage those folks, you know? And you, even though it's only once a month and it doesn't meet the the requirement.

But I think something like that might be, I guess, at least received by the residents or some other avenue.

Paul:

And you certainly have the authority to do that.

James:

You know how much additional that might cost? We could do it as part of the normal ad we're already running. We could keep it fairly simple and just throw a QR code inside of that ad, say, you know, here for the annual resolution, we can also include in our included in our email blast for no more money than we're currently spending.

You know, perfect.

Paul:

Okay. Very good. so go ahead and just move down this resolution. And for everybody's sake here, I won't go through every single paragraph. I don't think anybody here wants me to. So if you have any questions in the meantime, just just stop here. But, regular meetings will be held on the fourth month of each Monday.

That has not changed with on the rest of that page, you'll see a number of delegations, to their, law firm, Michelle Barrasso as the primary representative for the district, for SD insurance pool or whatnot. Moving on to the next page. It has a number of, directions, to staff as well as an election of officers on paragraph 22.

....

Legal counsel will be filing conflict of interest disclosures, provided by the board members. Michelle Bourassa will be sending you, conflict disclosure forms as well as statements of qualification digitally for you to fill out and sign. I'll go ahead and stop there. If anybody has any questions on anything within the annual administrative resolution, I'm happy to answer them.

Jason:

Anybody have any questions? Hearing none. Let's move on.

Paul:

Okay. Very good. so at this point, the board can entertain a motion to adopt this resolution.

Jason:

We can, make a motion to adopt it with the, changes on the, newspaper, with the record.

Paul:

Well, if you do want to post in the Castle Pines connection, it doesn't necessarily need to be said here only because this is establishing that minimum requirement, that you're posting for your newspaper, general circulation.

Obviously that can be done through a simple motion. Aside from from adopting this, this resolution.

Board Voting All Speak:

Okay. Do I hear a motion? I move to approve the resolution as presented. I second having a second. We'll go to vote. Jim approved. Tera I Jana, approve. We approve. I approve as well. The motion passes.

Paul:

And then you know what?

You can actually direct staff for the, for the Castle Pines connection. It doesn't have to be a formal motion.

Tera:

Right? I mean, it sounded like he was already doing it. That we're already doing it.

Paul:

And we already have the delegation to do that. So. Okay.

James:

Okay, great. We will go ahead and well, first, does anybody else have any questions for Paul?

Okay. Hearing none. We'll go ahead and close out the legal counsel report and we'll open up item number seven. The district manager report. Nathan.

Describer:

On screen. Memorandum

From: Nathan J. Travis

To: CPNMD Board of Directors Date: 01/26/26

Re: District Manager’s Report

AGENDA ITEMS

Well Failure Updates (Agenda item A)

• Re-installation of wells A-1, A-2 and A6 is complete. All three wells are waiting for startup- however this will need to be completed after WTP filter rehab project is complete. The work on A-1 and A-2 was completed under warranty.

Staffing/ Human Resources (Agenda item B)

• Pending board approval, we have selected a candidate for this position, by the time of the board meeting I will likely have more details to share.

Lift Station Renovation Program (Agenda Item C)

• Scope A (Lift Stations 1, 2, & 5) Work is well underway, construction has begun at Lift Station 1. Gravity main has been installed and the project is moving forward on schedule.

• Scope B (Lift Stations 3, 4, & 7) The pre-bid for this scope was held on January 20th. We expect to bring a contractor for approval at the February board meeting following the bid opening in Mid-February.

Proposed Tank Site (Agenda item D)

• As part of the parcel transfer project, and at the request of City staff I attended the City Council meeting on Tuesday January 13th to make myself available to answer any questions related to District ownership of a parcel that has been dedicated as a new tank site. I was asked about potential visual impacts, and the necessity for a new tank. As this is still a preliminary proposal those are both questions that remain and need to be definitively answered. We will do some preliminary design work, as well as a fire flow study this year. This will be a part of our due diligence, including ensuring that there are no more suitable sites for the proposed tank, should its construction be determined to be necessary, and approved by our Board of Directors.

ADDITIONAL UPDATES

Request for Service- Ventana Capital

• Last December I met with Darwin Horan to discuss the possibility of CPNMD providing water service to a development known as the “Crowsnest”, a property also being considered for annexation by the City of Castle Pines. Ventana hopes to develop this land with relatively high structure density, the location is non- contiguous to CPNMD’s current boundaries and would require a significant amount of infrastructure to connect to the area (located near Stroh Road, and Crowfoot Valley). This inclusion would require that we purchase water from Parker to provide service. After an informal discussion with Ron Redd of Parker water on the matter, Parker, understandably would not likely have an interest in providing water to us, to provide to Crowsnest. Sanitary Sewer treatment capacity is another strong issue with no clear answer on how we would be able to treat the wastewater for the proposed development. Unless something drastically changes, this development will need to find service through Parker Waters and Sanitation District.

Stantec Study (Regional water supply study)

• We have elected to get more quantitative information about various regional water supply opportunities before making any rankings or formal recommendations. Specifically, we need more information on potential project costs, and projected firm-yields of water supplies.

Well Status Updates

• All wells are currently installed, and were working appropriately with the exception of the wells described in under agenda item A.

PCWRA Reuse Pond Project

• Contracts have been signed, and this project is set to move forward this spring.

Conservation

• (holdover) It is my recommendation that we discontinue the Lawn Replacement Program, and instead augment our own in-house program, and continue our partnership with Resource Central for the “Slow the Flow” program. The Lawn Replacement Program did not gain any significant traction after two years, and those funds would be better served in our own rebate program.

Project Updates (for additional information please refer to the engineering report)

• Filter Rehab Program: Construction on this project is well underway! So far we are on schedule and meeting the budget expectations. Completion is scheduled for June 1st.

• Holdover: Monarch Phase 3: Due to the condition of the existing 14” waterline on Castle Pines Parkway, we were unable to complete the loop to Sherman Street. This prohibits the constructability of “phase 3” at this time. Instead, this work will be added to the scope of the Castle Pines Parkway Rehab project scheduled for 2026. While certainly not ideal, we don’t have any other viable options.

• Documentation and Asset Management: The next step in this effort will be a distribution system condition assessment. Additional work is being completed to include the recently completed Well-Vault Rehab Project. Equipment in the process of being added to the asset hierarchy.

Castle Pines Metropolitan District Tank Project

• Castle Pines Metro is constructing a new water tank near our Treatment Plant. This requires relocation of the two large diameter water mains that feed our tanks. There is no cost to our District. CPMD will work with Kennedy Jenks to ensure installation is done to our specifications. The necessary work on CPNMD water lines is nearly complete.

Website ADA Compliance

• Holdover: We are working with Sigler to ensure that the website is up to date and meets all ADA standards. Additionally, our board meetings are now broadcast with closed captioning.

JAM Ranch Inclusion

• Holdover: Jam Ranch has indicated that they would still like to pursue inclusion or service agreement for

Wastewater services only, a meeting was held on April 28th , 2025 to discuss this. Due to the renewable water requirement set by CPNMD, they have indicated their intention to form their own metro district for water services. The meeting will be attended by legal counsel, district engineering, JAM ranch representatives and myself.

Nathan:

Good evening. I've got a few items to run through, with the board, first, since the year or at the beginning of the year. I just wanted to get everybody brought up to speed on the, well, failures that we have had.

As we are currently, as we currently sit today, all of the well equipment has been reinstalled. It's back in the ground. We do, because of the filter. The done. Kind of unfortunate timing with the filter rehab project starting, we haven't been able to do a full startup on a couple of them. so that'll be done as soon as we can send, raw water back to the, water treatment plant.

We did have some discussion about running those wells to ground as part of that startup procedure, but with some of the, issues that we've had, especially with A1 and A2, we wanted to make sure that we were testing those against full system operating conditions. so we're going to target that, probably mid-May, when we start to bring the plant back online.

Jason:

That delay is not going to impact any of the warranty timeframe or work that they promised.

Correct.

James:

Could you repeat that again?

Jason:

So, and I forget the name of the company that installed those Layne late, so Layne has made some, promises to warranty and, service that for a a period of time.

James:

Yeah. did we, we talked about preservation of our rights. with regard to obviously Layne is taking care of the warranty on his side of things.

But, I was really concerned about potentially using this supplier in the future in our learning lane to use the supplier in the future without formally understanding what the issues were and the fact that they were essentially refurbishing, well, equipment and then selling it to us, unbeknownst to us. And, and I think, you know, going forward, we should pressure push for that kind of information prior to, you know, handing somebody a big contract for, well, equipment, that kind of thing.

Nathan:

Yeah. So we've had the I've had that discussion with Lane as well, moving forward for the, for the specific parts, the driveshaft and the connections, we're going to be using a different manufacturer.

James:

Okay. I guess, I appreciate that. And that sounds great, but do we want to this is more for Paul to include some sort of statement up front when we write these contracts to essentially understand if we're getting refurbished or new equipment, that kind of thing, before we enter into a contract or have that sub purchase that equipment, make sure it's clear we understand what they're buying.

Paul:

Absolutely. So typically those types of protections are covered within the general warranty clauses themselves. So it would have been covered under the existing language. But there's certainly nothing wrong with being more specific and clear. We've been burned on this once now. So, yeah. Happy to capture, you know, only new equipment. No refurbish, nothing like that.

Yeah. Okay. Absolutely. I could easily put language like that into future contracts with for these sorts of things.

James:

I appreciate. I just, you know, this thing could have really gone sideways on us if you, you know, we had damaged the insides of the wheels and things like that. Yeah. We got lucky. It sounded like so. Yeah. Anyway.

Thank you. Yeah. Thank you.

Leah:

I have a follow up question. I'm trying to. I don't remember talking about this last time. But if we've covered it and I missed it, my apologies for any out of pocket like, expenses, like, I guess first question. Were there any out of pocket expenses that we had to cover because of, what we're assuming was used equipment?

And then if so, are we able to recoup any of those costs?

Nathan:

Yeah. So for the the recent failures, we did not have any out-of-pocket expenses. I don't anticipate to see any. Well, A6, was a different failure that was unrelated to the, the, well, issues and the components. so that one is back in the ground.

It's also waiting a waiting, startup. And so we, we had the normal repair costs for, for that one. But for the ones that we had the secondary failure on, we're, you know, we're not incurring in costs. Great. Thank you.

All right. moving on to agenda item B. Last week, late last week, Friday, I sent the board, a copy of the redacted resume for our project projector, for our preferred hire for the deputy district manager position. I didn't hear anything back, so I sent that letter on to that candidate today. They are going to accept it.

So, their name is Rene Santini. They are, longtime engineer. They've worked for Jacobs. And prior to that, CH2M Hill before they required by Jacobs. They are a district resident which is really, really cool. Live right around the corner and walk to their job interview. There's, they want to take some time to make sure they can wrap up their current projects, pass off what they need to, and then they had a plan.

Family vacation. So, Rene's, first start date will be, March 23rd, following the Douglas County School District spring break. But he will be here on the, if not the study session on the 16th of next month, the following board meeting, just to say hi and meet everyone. And then I've also, you know, started to send over some documentation around like, to some of the bigger capital projects.

We're working on, the Stantec study with northwestern Douglas County. So you can start reading through some of those, and, just be able to hit the ground running a little bit more. And they do have, Renee has a pretty impressive background, especially working on water rights, water supply projects in this area. He's done work with South Metro water supply Authority, distribution assessments for Parker Water.

So, a lot of work experience around like current projects and efforts that we have going. So I'm I'm really excited to bring him on board.

..... Yeah, I, I don't know how to do the heart's all over my screen. That was awesome.

Leah:

I just wanted to say I'm really excited to, and so, you know, thank you for going through this process and excited to have him on board and, and just have that, like, diversified experience. So thank you for managing that so well from beginning to end.

Nathan:

Thank you. All right, let's station renovation. Scope A is the project that's well underway. That's the work that's being done. O ver off Serena with the station one. Everything for the most part out is going really, really well out there. We've been working on installing gravity sewer lines. Overflow vaults have already been put in place.

That project is running full steam ahead. On time and on budget so far. We will have some outreach that I'll start to do from a communication standpoint for residents of Hidden Point, they're going to back up to the station five. That's kind of our next, the station we're going to build out there just to let them know, construction starting.

Kind of give them some just a heads up that they're going to have some construction happening in their not in there, but behind their backyards for the station scope B, we had our Pre-bid meeting, last week. All of those bids should be received, the Friday prior to the next board meeting. And so we should have a bid summary and a recommendation, at next month's board meeting to move forward with that project.

And we'll keep we'll keep all of those updated as we move along on the capital project website that was mentioned earlier.

Jason:

Did we have a lot of, people, take advantage of the pre-bid?

Nathan:

We had 16 contractors. It was huge. Yeah. It's the biggest pre-bid that I've had

here. It was it was a lot. So we'll see how many of them actually, put in.

But we basically had every plan holder show up to the pre-bid.

Describer:

On screen. A map showing:

Existing Access and Maintenance Easement. Approximate Elevation @ Tank 6424 (ESRI ARCGIS). Approximate Tank Diameter and site location for the Parcel Transfer Project. Nathan describes.

Nathan:

And then I wanted to for my last agenda item, the proposed tank site discussion. Primarily, I wanted to give the board a heads up. This is, I send a link to it. I went and spoke with the, spoke to the City of Castle Pines City Council, a couple weeks ago, really related to the parcel transfer project.

One of the things that we had asked to do there is, is to retain a portion of a parcel so that we could use it for a future tank site. They asked me some pretty high level questions, primarily just what the visual impacts would be. Access was just a couple of quick questions. This is a markup.

I did, actually earlier today and added into the board packet. This is all like very, very, very preliminary kind of what it might potentially look like on that site. And honestly, this is probably fairly premature. So the first step in all of this project is going to be making sure that we need to actually build another tank.

Our primary concerns there are, just, like back up water supply if we lose, you know, critical line close to the water treatment plant and then fire flow. And so there's definitely some other options we could look at potentially, that would allow us to leverage our existing interconnect and possibly avoid a tank site, or avoid having to build another tank all the other.

So that's something that we'll, we'll go through as part of that process. We are very, very early on, even if this was an approved project, we wouldn't be looking at construction until 2029 or 2030. So the some of the concerns that we've had, that have come both from city council well, not necessarily directly city council members, but that city staff has notified me of.

And then I've also seen on next door. If we ended up using this site, what would access look like. So staff and utility access would actually come off of Monarch through an existing access and maintenance easement that we have for this 24 inch ductile iron pipe. This is the interconnect pipeline. There is an existing stub that would design for a tank that would connect our system.

This would really just be pipework that comes through here. And then we want to off put the tank kind of on the back side of that property as far as we can, just to minimize the potential impact to the residents. Director Mulvey also, pointed out that this might be online. Let me zoom get my zoom adjusted here.

Describer:

On screen. A map showing another potential tanks site. Existing 12" Dip Pipeline 9Likely need 18" or Larger). Approximate Elevation @ Tank 6421 (ESRI ARCGIS). Approximate Tank Diameter. Nathan describes.

Nathan:

A potential tank site. This is over by well, our well site A six and A four elevation difference is pretty negligible. So we don't lose a lot of elevation there if we were to look at it. Putting look at putting it over here. We have, you know, good access, from the roadway. Obviously there is an advantage here because we have existing power for the well site and existing telemetry and communications we could leverage.

The bigger concern here is really, potential concern is just, adjacent, water line sizing to whether or not it's sufficient enough to actually true versus serve as a true backup, to. Correct. Yeah. This one, this would be a more visible site. You know, there's there's other options we can look at to we can, you know, evaluate adjacent property that's in the HRCA open space.

I haven't had any conversations with Sam about that, but they've been pretty good partners. If we needed to put something over there. But the primary, the primary goal is going to see if we can do get it, accomplish those goals without having to build a tank. And then we'll we'll take it very incrementally from there. Certainly nothing that I want to rush, but, because it's causing kind of a ruckus, I wanted to get the board up to speed, at least to where we're at.

James:

In general. (Off mic)

These are, in general, these are essentially flat to the ground.

Nathan:

Yeah, flat to the.. These ones would be flat to the ground but close.

James:

In, and you really would only have an access panel or something like that. So.

Nathan:

Right. You have like four, 3 or 4 access hatches on top of the tank.

James:

And like the ones that are up in the village, are they going to be covered with dirt or grass, or are they going to be just concrete on top?

Nathan:

So we could do either really just depends on the final elevation, the tanks. That's, that's our two existing tanks. One of them is completely buried grass on top of it. The other one is bermed, up to the lid of the tank. And then the lid of the tank is exposed. a lot of that just drives on site conditions, elevation.

It's it's a lot better, generally speaking, to get them as far in the ground as possible. I prefer them to be level. So that would be the objective with at least berm to the top of it.

Tera:

That was going to be my question. I appreciate you bringing that up. I'm not sure why it's bringing up such a ruckus, because the tanks, like the tank up there by the Castle Pines Village country Club, there's a tank right up there.

It's flat to the ground. There's a tank that's along Greg Griggs Road. That's flat to the ground. So yeah.

Nathan:

And I think that that's, you know, as we

Tera

When you see the construction going on, that's not great. But then people drive by them all the time and don't even know they're there.

Nathan:

Yeah. And I think that that's district communications kind of component of that is really, you know, the general public is not going to have a general like an awareness of what a what those tanks look like.

They probably have no idea how many of them they drive past on or how many parks are built on top of them. Yeah. So that's something that we'd have to work through stakeholder groups and just really community communication.

James:

And, you, you know, before we started up today, you also showed an additional site off of Monarch.

Nathan:

Yeah, a potential one I don't have through the On Board platform.

I don't have the ability to easily jump to that, but I can I can pull that up and say some little blurb about it.

James:

And I think the ruckus really is, if you go back to the other one just to address what you were saying, the work that was being done back there, I guess it was surveying for plant, you know, basically doing a so you know, subdividing one of those properties back there.

Nathan:

I think.

Yeah. So the right, yeah, there's there's some stakes that have been placed out there I need to verify.

James:

Yeah. If you look at where ACC is an access. That's right. Where all those stake markers are. And the people that were right there literally is like 30, 40ft behind your house where all those stakes are. And those those are the people that we're looking at that go, what are you going to do back there?

Because it was literally right in their backyard, in their line of site. But from what you're telling me, this is over the crest of the hill on the back side. So I think that's a significantly better option, you know, obviously for access and not disturbing people's property values and things like that so.

Jana:

I understand how survey stakes work. So why were they all the way

Nathan:

I don't know.

So that's. Yeah, I need to figure out if those

Jana:

I mean, you offset survey stakes, but you don't offset.

James:

Yeah. Okay. I bet people are like, yeah, far away because you go to the mailbox and the guy that literally lives right where that stub is will come basically rushing out and saying, what are you guys doing back there?

Jana:

Yeah. I think it didn't need to be a ruckus in general so.

Nathan:

The stakes. Yeah. So we'll like, yeah, we'll have to figure out what the survey stakes are. I'm not. We did do, a more in-depth survey, more of an engineering survey rather than just the property boundaries on this one, because it might be a future tank site.

And there was some, like some savings to capture. While you've already got the survey guy out there. But I genuinely have no idea what those stakes are, so I'll go ahead and take a look at them and talk to you, True North as a survey company, and see if they can provide shed some light on what those are.

Jana:

Maybe a benchmark.

That's the only thing I could think of that could be. But you'd only have one.

Nathan:

Well, and we also have a local, control network for benchmarking problems. Castle Pines, I don't know. And Bill and the company that's doing the survey is the company that installed that control network benchmark network for us.

Tera:

Yeah. So I appreciate the update.

And like you said, I mean we even have to this is really, really premature because we even have to determine if there's a need which is correct down the line. But but that does look like a better site because you and I don't know if you'd have to get the, you know, right away access from whatever. Whoever owns that power plant.

But that road is right there.

Nathan:

Yeah, we already have right there. Yeah. So we already have right of way access for this water line, for this water main.

Jason

Very nice. Any other questions for Nate with his district manager report?

Hearing none. We'll go ahead and close out that section. Thank you. Nathan.

Nathan:

And then real quick for this next agenda item, these are historically reports that have just been included in the packet. The way that On Board works, I couldn't figure out how to upload them and include them in the packet without giving them an agenda item.

So this will just be an agenda change that we have moving forward. So they'll sit in there. I'm certainly if there are any questions, I can bring those back to our operations or engineers if I can't answer them or yeah.

Jason:

Okay. So we'll open up item number eight. Any questions. We will go ahead and close item number eight.

We'll move on to item number nine. District are Directors Matters. Does any of the directors have anything they'd like to say?

James:

Just my yearly poke. We talked about the the tank at the bottom of Monarch, that protection system, and you thought it wasn't going to be necessary. But I'm just wondering if they just don't want to have that fall off the list and, you know, just want to know a status.

Whether you guys have reviewed that, whether or not we see that to, you know, do something budgetary or whether or not it's not necessary. But I'd like to close that out officially.

Nathan:

Yeah, I apologize, that was an oversight. I need to add that to my monthly report. We have identified a solution. It's, sub six figure fix.

It's about $80 to $95,000. Level Engineering is doing that. So they're going to put together a small bid package, and we'll get that out in the next couple months and get it and get it fixed. Excellent. Thank you.

Jason:

Any other matters? Leah you doing All right? I am I this is not important, but I was curious. Since this is our first board meeting using On Board, I was just curious what everybody thought about it.

And that includes, like, the directors, but also, you know, Nate putting everything together like it for me, it makes it really easy to follow.

Jason:

Yeah, I too like it. It's, been very nice.

James:

I had one issue with it, but he already fixed it for me. You told me to do my work around, so thank you.

Tera:

And it was really helpful. Especially when you gave us the page numbers, because we can jump right there because it looks like unless there's an attachment, like, I can't just press on the agenda and have it take me to the agenda unless there's an actual document associated with it.

Describer:

On screen. On Board, Board Meeting Home page. Nathan Describes.

Nathan:

Yeah. And you can look at I can even navigate there really quickly, in this. Let me know if this solves the kind of what you're looking at. So this is when the board logs and this is the screen that it should take you to, to get access to the board book without having to go one.

You can go open book. And that's what we've been doing for the meetings. There's also this option to do the download. And so this is where you can kind of pull down like just the agenda or the the board book pulls down as a PDF. You'll see this like meeting book with my annotations. So, you know, the board can make annotations inside of that open book feature.

And then when you download your own book, that'll be included. And then none of that gets attached to what actually gets put out to the public. That's just, when I tell it to.

James:

Scratch copy for yourself. Yeah. Okay.

Leah:

Is is that we're like, if if I were to make annotations like, does everybody on the board see it?

Nathan:

No, only you do. Okay. Yeah.

Jana:

How was it? Leah, how was it logging in? The same as normal. Like when it was a zoom meeting? Because aren't you logging in through On Board?

Leah:

I don't know, I don't know, I could oh, I guess I see that you can. Yeah, I just joined. Okay, I joined the zoom separately, and then I just had a different tab for, the On Board.

Nathan:

Gotcha. Yeah. So you can go, the board will have this also. So when you join via zoom, you can click this join zoom. And then if you click join and On Board it will automatically get it'll take the board meeting and the screen and it'll give you kind of a picture in picture. And then you can keep the board book open behind it.

Leah:

Oh I wish I had done that okay.

Jason:

Could you, could you give us an update on when they're going to start demoing the space?

Nathan:

Yeah. So the I've got a meeting with, lunch meeting with Michael tomorrow to verify. But the last I heard a couple weeks ago, is that they are going to be doing the demolition following our February, I'd have to go back and look.

It's February March board meeting. Let me double check my notes on that and bring it. Bring it back. But I think we've got...

Jana:

So it maybe February. I think it was February. We may be remote or March but we'll figure it out.

Nathan:

February will definitely be in person. Yeah I will I'll verify that timeline tomorrow. They're they're receiving bids pretty. It's a pretty aggressive schedule in terms of their bid posting and when they're receiving them.

I can't remember if it's the if the February meeting of the March meeting will be the last one that I've got. I'll send out a note.

Jason:

Perfect. We look forward to that. And the other district matters are all right. We will close out. Director Matters and we will adjourn the meeting. Thank you again, everyone.

Leah:

Bye, everyone. Have a good evening.