Board Meeting
May 26, 2026
Transcript
Describer:
Regular Board Meeting- May 26, 2026
7404 Yorkshire Drive, Castle Pines, CO 80108
I. Call meeting to order
A. Roll call & disclosure of potential conflicts
II. 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, type your name and address in the chat feature to be placed in the queue.
III. 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 April 27th, 2026 Regular Board Meeting Minutes 4.27.26 CPNMD Regular Board Meeting Minutes DRAFT 4935-5596-7917 v.1 (PDF, opens in new tab)
B. Approve April 20, 2026 Work Session Minutes 4.20.26 CPNMD Work Session Minutes 4899-2442-1293 v.1 (PDF, opens in new tab)
C. Ratify claims for payment including check numbers 29652 – 29691 and electronic payments issued from April 16, 2026 to May 12, 2026 totaling $1,966,413.96
D. Approve a resolution to open a CSAFE LGIP account and assign signatories Adopt a resolution to open a CSAFE LGIP account and authorize the assignment of designated signers, as presented.
Draft CSAFE Resolution 4897-1120-5796 v.1 (PDF, opens in new tab)
IV. Communications Director Presentation
CPNMD Board Member Report May 2026 PPT 5.20.26 (PDF, opens in new tab)
V. Finance Report
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. Review District Finance Report
CPNMD 05.26.2026 Finance Board Packet (PDF, opens in new tab)
B. Introduction and Presentation of INBANK
INBANK - Castle Pines North Metro District (PDF, opens in new tab)
C. Consideration of a Resolution to Open District Checking and Treasury Sweep Accounts with INBANK
Proposed Motion: I move to approve the resolution to Open District Checking and Treasury Sweep Accounts with INBANK
Draft Resolution re Authorization re INBANK Account Access and Official Custodians 4.23.2026 4925-7263-8628 v.1 (1) (PDF, opens in new tab)
VI. Water Rate Tier Presentation and Discussion
Following the April conversation regarding conservation, Rene has begun building the framework for a more targeted conservation effort utilizing our rate structure as opposed to implementing fines.
Water Rates (PDF, opens in new tab)
VII. Legal Counsel Status Report
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.
5.26.2026 Legal Status Report - CPNMD 4921-4999-9023 v.1 (PDF, opens in new tab)
A. Consider Adoption of Resolution re Smart Meter Data Disclosure
Proposed Motion: I move to approve the resolution regarding smart meter data disclosures.
CPNMD Resolution re Smart Meter Data Disclosure 4899-7518-2510 v.1 (PDF, opens in new tab)
B. Consider Approval of Easement Agreement with City of Castle Pines for Foundry Church Sewer Main Extension
Proposed Motion: I move to approve the easement agreement with the City of Castle Pines for the Foundry Church sewer main extension.
2026-05-19 Foundry Sanitary Sewer Easement FINAL 4935-6284-9198 v.1 (PDF, opens in new tab)
VIII. District Manager Report
The District Manager will present a report to the Board regarding district operations, project status, administrative activities, and other matters pertinent to the District
District Manager Board Report 5_26_26 (PDF, opens in new tab)
A. Update: South Tank Rehab Capital Project
B. Update: Interconnect Pump Station Surge System Modifications
C. Discussion: Potential Conservation Collaboration
IX. Operations & Engineering Report
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.
Engineering Board Report Memo May 2026 (PDF, opens in new tab)
Operations Report April 2026 (PDF, opens in new tab)
X. Director's Matters
Board members may raise and discuss items of interest, concerns, or announcements that are not otherwise included on the agenda.
XI. Adjourn
Board President Jason Blankaert:
Okay, we'll go ahead and begin. good evening and welcome to the cabinet. Castle Pines North Metropolitan district meeting for Monday. I set for Tuesday, May 26th, 2026, at approximately 6 p.m. We’ll begin the meeting and begin with roll call.
Board Member Director James Mulvey:
Jim. Present. No conflicts.
Board Member Director Jana Krell:
Jana. Present. No conflicts, and I apologize.
I'm struggling with my camera, so. But just know I'm here.
Jason:
All right? Very good.
Board Member Director Tera Radloff:
Tera. Present. No conflicts.
Jason:
Great. And we're missing Leah still. Yep. Okay. And I'm Jason. I'm present with no conflicts. We will go ahead and, we'll move on to item number two here. The public comment, period. The public comment is designed to share your thoughts and concerns with the district, but it's not an interactive discussion.
If you'd like to participate, type your name and address into the chat feature to be placed in the queue. Does anybody have any comments?
Steve Dawes, Caste Pines Resident:
This Steve Dawes I do.
Jason:
All right Steve, go ahead. Give us your address and we'll.
Steve:
Steve Dawes 5703 Jasper point circle in the Daniels Gate neighborhood. Just very briefly I know Eric's going to address or has addressed in the work session last week utilizing in bank for depository services. And I heard him say in the meeting that, they did not do an RFP on it because it was not statutorily required. And my view is that it's always good to get three bids on any contract or agreement, particularly with banks, since their fees are often very negotiable.
But I know Eric will address this and perhaps all that's already been done. The only other point I wanted to make had to do with the citizen who was. I got an improper water connection I was discussing during the work session, and I heard, I think it was Nathan say that the fee or penalty for the use of water that wasn't previously paid would be limited by the statute of limitations.
In my experience, statute of limitations very frequently say that the statute begins to run when the injured party either knows or in the exercise of reasonable diligence, should know about the violation. And it's that in the exercise of reasonable diligence should know. That's always a fact question. So my recommendation is simply to, assess the, as much as, reasonable, possibly assuming that we just reasonably found out about the leak and then perhaps negotiate that amount with the citizen.
That's all I have. Thank you.
Jason:
Great. Thank you. Steve. All right, anybody else in the public comments? I don't think so. We'll go ahead and close out the public comment period. And, we'll move on to the consent agenda. Do I hear any motions?
Tera:
Motion to approve the consent agenda as presented.
James:
And I'll second that.
Board Voting All Speak:
Great. Having a second.
We'll move to vote. Jim. Approve. Tera. I. Jana. Approve. And I approve as well. So the motion passes. We will approve the consent agenda.
Jason:
And then we can close out item number three and move item. Move on to item number four. The Communications Director's presentations. Good evening, Bryn.
Communications Director Bryn Webster:
Good evening, Jason. Can you guys hear me? Okay.
Jason:
Yes we can.
Describer:
On screen.
CPNMD Spring 2026
Communications Board Report
5.26.26
Bryn:
Great. You just have me tonight because it's a Tuesday meeting. But Chuck and Lisa both send their greetings. I will outline just a little bit about what we have done over the last quarter.
And, Nathan, I assume you'll forward for me.
Describer:
On screen. Ongoing Communications: Spring
18 social media posts (over last quarter) on rates, projects, events, Rene, conservation, & watering schedule (FB, IG, NextDoor)
3 monthly ads (Highlights: turf replacement program & garden in a box, hydrant flushing & drug take back event, conservation rebates & sprinkler evaluations)
2 bill inserts (April & May. Highlights: hydrant flushing, conservation
programming, watering schedule & District rebates)
Bryn:
So, we've stuck with our, typical posting schedule. We shared around 20 posts on all of our three major platforms over the last quarter. We've had a lot to talk about. We shared about, you know, the updated rates, but also projects underway, some different events, including the drug Take back day event, and then also, conservation and watering schedule updates that you all approved and some of those new opportunities for residents.
Our three monthly ads highlighted the most important of these. So it was the turf replacement program, garden in a box, update and a heads up on hydrant flushing. As well as that Drug Take Back Day event. And then again on the conservation and sprinkler evaluation information. Bill inserts same thing.
Describer:
On screen. Communications Accomplishments: Spring
Spring 2025 News (Open rate: 20%. Our current Avg is 15-25%)
2026 Annual Water Quality Report (CCR)
Current Projects, By the Numbers & Rates Comparison Infographics
Hydrant Flushing & Drug Take Back Day Outreach
Wastewater System Improvements Project Outreach & Signage
Rebate & Water Schedule Updates
New Staff Headshots
Bryn:
We also did a spring e-newsletter that received about a 20% open rate.
That's right in the middle of our average, which varies more based upon time of year than anything else. Our lowest open rate was like the December one, probably because it was over the holidays. The other major communications deliverable we worked on this quarter was the annual water quality report, or the Consumer Confidence Report about water quality in the district from the past calendar year.
And, I'll talk a little bit more about what we included in that this year below. We also we did include in it a couple of infographics that we'll share with you guys. And other than that, we just continued our outreach on a couple of key events like the Drug Take Back Day, key projects like the wastewater system improvements and the rebates, water schedule.
And we did some new district staff headshots, which we put into the website and the report.
Describer:
On screen. 2026 Annual Water Quality Report
www.cpnmd.org/water-quality-re...
Highlights:
Nathan Travis Message: projects underway, conservation efforts and welcoming Rene.
Rene Santin Introduction
Upgrades in the Works
By the Numbers Graphics
Bryn:
So this, year's report, we included another message from Nathan. We highlighted the projects that are currently underway in the district, as well as the conservation efforts and discussions that were being had to make sure that district is considering everything it can to save water. And a little, snapshot welcome for Rene with his headshot.
We also included the following two graphics. You can go to the next slide if you want.
Describer:
On screen. Project Upgrades Graphic
Our System - By the Numbers
OVERVIEW
12,000 residents served by 4,000+ taps Across Castle Pines, CO
5 team members and various contractors that serve 24/7 to provide water and wastewater services.
5 ways to stay connected with us: website, text updates, Newsletter,
social channels and public meetings
2 primary water sources: well/ground water in summer and renewable water through Highlands Ranch Water in winter.
Up to 4.5 million gallons of water treated daily at CPNMD's treatment plant in summer and an average of 700,000 gallons in winter.
24/7 water quality monitoring and 240+ water samples taken per year to ensure water meets state/federal regulations.
3.75 million gallons stored in 3 treated water tanks
71 miles or water pipeline to deliver water to customers
80% of treated water used for outdoor irrigation
7 wastewater lift stations to move wastewater to treatment
58 miles of sewer pipeline to transport wastewater
600,000+ gallons of wastewater treated daily at Plum Creek Water Reclamation Authority
400 gallons of wastewater reused at the Ridge Golf Club or stored at Chatfield for future use.
Bryn:
I'm sorry it's so small, but you can look at it in the water quality report. This one shows, well, the goal. First of all, the goal behind this graphic was to show people a little bit more of the behind the scenes that goes into producing water.
You know, most people turn on their tap. They don't think about where the water comes from or where it goes afterward. And we wanted to share with them all of the effort that, you know, they're paying for it to provide those services. So we included a three part graphic that talks about an overview about the district. A little bit about what it goes into treating their water and delivering it, and then collection and treatment of wastewater.
And what we will do with this graphic is we're also going to divide it into three sections, like Unique infographics, and share those on the website and on social media as a way to just help inform people a little bit more about what their, what their services are going to, you know, their money is going toward as far as services.
So this was one graphic.
Describer:
On screen. Upgrades In the Works
We are hard ac work making important changes to our system. These replacements and repair will provide reliable water and wastewater for future generations of Castle Pines residents.
Updates to 6 wastewater lift stations (2026-2028), plus consolidating two remaining stations into one (for 7 total) WHY: To make wastewater system much more reliable.
Comprehensive updates including replacing filters at our water treatment plant (2021-2026). WHY: To improve performance and increase
capacity 2 million gallons total to better meet current demand.
Replacing pipelines across our service area (Ongoing). WHY: To replace smaller old lines with newer, larger lines that don't break easily, reducing boil advisories,.
System-wide assessment and regional planning studies (Date-20-26). WHY To identify future district projects and pursue regional collaboration.
Bryn:
This is the other one. And this was just to show in a snapshot all of the major projects that are underway. So lift stations, filter replacement at the treatment plant, pipeline work and some of the, you know, regional assessment stuff that's going on. And again we'll share that on social.
Describer:
On screen. Cost Comparison Graphic
CPNMD Water Costs Compared with Other Regional Providers Per Thousand Gallons (2026 Survey)
Pinery Water & Wastewater District $6.69
CPNMD $10.54
Town of Castle Rock $15.05
Roxborough Water & Sanitation District $24.14
Parker Water & Sanitation District $22.48
Cost per 1,000 gallons
Bryn:
This last graphic, actually is one that we developed earlier in the year.
And it was it came out of that rate study. So once we had the cost comparison numbers with other regional providers, we put this together just to show how Castle Pines water stacks up cost wise with others in the area. And it shows that it is a very, reasonable cost for water. So we included this on the website and, and I think we also included it in one of our, ads as well.
Describer:
On screen. Lift Station Project Communications
New Lift Station address signs
Ongoing social media, Daupler text messages, and website updates - alert banner as needed
Maps of trail and road impacts - updating as needed
Showing progress on social media
Bryn:
As far as lift station project communications, there's a lot going on. Nathan's done a great job of reaching out to the directly impacted homeowners. We added some new signage to each of the lift stations. We also tried to stay ahead of the different communications, that were needed for the construction. So sharing on social media, sharing by text, we rely on Daupler and on the website just making sure that those are always updated.
We added new maps of like trails and road impacts and just updated those as needed. And then we're also going to share some posts about the progress that's been happening. So people can see some of you know what's going on up close. To provide a little more context for the disruption happening, especially in the hidden white neighborhood, those neighbors have seen construction for quite some time now, so we wanted to share that with them.
Describer:
On screen. Updated Rebates & Watering Schedule
2026 Watering Schedule
Watering schedules are based on the last number of your address.
Even Numbers: 0,2,4,6,8
Watering Days: Sunday, Tuesday & Thursday
Odd Numbers: 1,3,5,7,9
Watering Days:
Monday, Wednesday & Saturday
Multi-Family & Commercial
Watering Days:
Monday, Wednesday & Friday
James:
Can I ask you a quick question, Bryn? Yeah. Go back one slide. The new lift station address signs. What form does that take? Is that on the street or is, painted on the building or something that is still on the website you're talking about?
District Manager Nathan Travis:
No, there are other physical address signs. So, some of it depends on the station set up.
Some of them will be on the gate that leads up to the lift station. Other ones will just be on sign posts. They're replacing existing signs that are already there.
James:
Okay. That's great. Thank you very much, Nathan and Bryn thanks.
Bryn:
Yep. No problem. So this is just a little snapshot of the watering schedule that we updated to reflect what you guys had approved with the even an odd numbering.
And then a separate set of, information for the multifamily and commercial. We shared this on every platform that we have to get it out there. This was a social media post.
Describer:
On screen. Communications Efforts: Up Next
ONGOING WASTEWATER PROJECT, WATER QUALITY REPORT OUTREACH
PROMOTION OF SUMMER EVENTS (WATER FESTIVAL, PARTY IN THE PARK)
CONSERVATION FOCUSED STORIES IN CASTLE PINES CONNECTION
Bryn:
So as far as upcoming communications. So obviously we are going to continue sharing about the wastewater projects. There's a lot continued to go on. Lift station five kicked off and kicked off earlier than we even anticipated. And so Nathan helped us get some information out ASAP to the people directly near that. The water quality report, we posted our version online and then we'll add Highlands Ranch Waters when there's comes through.
And then we'll be sharing about that on like the next bill insert. We have some summer events coming up. I know Nathan is planning to help staff those like the Water Festival in June and Party in the Park. We developed some, unique, signage for Castle Pines and some new tablecloths and giveaways. So those will be ready to go at those events.
Tera:
What is the water festival?
Bryn:
South Metro, Water Supply Authority's doing like a whole festival around water specifically. And last year was the first year they did it. And we had a water cart there. And this year, Nathan, are we doing you're also doing a booth this year, right?
Nathan:
Yeah. We'll just have we have a table.
And it's really it's more kind of like family kid focused. And so, you know, not a lot of, like, outreach. It's very much more regional. So the, we got a bunch of tiny little branded squirt guns that we're hoping we'll get your on time. So, we'll give those away and torment, you know, parents all over Douglas County with them.
But, yeah, it's a it's a fun little event. I'll send information to the board if, you know, if any of you would like to attend, attend even unofficially. It's kind of a cool event. I did also related to that event, at least present, let South Metro know that that's something that we would be, likely open to hosting, one of their future dates, too.
So Castle Rock got it last year. Highlands ranch has it this year. But, yeah, it'd be fun to go start at Elk Ridge or one of our parks.
Tera:
Would would you, send out a calendar invite to the board for that so we can put it on our calendar? Absolutely.
Bryn:
And it's really cool. I do all kinds of interactive activities for the kids, as well as, I mean, to teach them about the way the water system works and ecosystems, as well as just general like fun, like splash pad, gold panning kind of stuff.
And they have like live music and some other things that are more geared towards adults as well. So it's a neat event. I think they're trying to use it to really help people have a better understanding about the importance of water. And yeah, so especially also if you have, you know, family members or friends with kids, it's great for that.
Tera:
Yeah, I'm curious about it. That's why I asked. I mean, we all know one love party in the park, but, a specific water festival sounds interesting. Thanks.
Bryn:
Yeah, it should be good. And it should be pretty big. I think there's, like 30 vendors or something. It's it's not small.
James:
Do we know where the what park it is right now?
Same one last year.
Bryn:
It's in Highlands Ranch. Nathan if you want to forward the flier if you have it.
Nathan:
Yeah I'll forward the info. Offhand, I don't know what park it is. Last year was it, the MAC, the Miller activity complex and Park. Down in Castle Rock, but I'm not. I'm not sure where it's hosted this year, but I'll send that along with the calendar invite.
Bryn:
Yeah. Let me know if you don't have the flier, because we actually we did the flier so I can send it to you.
Okay. So just to wrap up here on up next, communication efforts. Well, actually sorry, if you want to go back one more, Nathan, I'm throwing you for a loop. One of the other things we're trying to do is place more conservation focused stories in the Castle Points connection. So profiling someone who's done the sprinkler replacement or, you know, the sprinkler evaluation programs, potentially.
You know, some of the HOAs were thinking about turf replacement when that happens. So making sure that we leverage those for a wider community sharing as well. So that's just something we're keeping on our agenda moving forward. And then now I'm ready for the next slide.
Describer:
On screen. Communications Efforts: Up Next
CRISIS COMMS TABLETOP EXCERCISE
DAUPLER & ENEWS SIGNUP SOCIAL MEDIA CAMPAIGN
LATE SUMMER/FALL WATER TREATMENT PLANT COMPLETION OPEN HOUSE EVENT
Bryn:
We are still going to do the crisis communications tabletop exercise.
We're going to wait until everyone can be part of that. So I'll probably be like later summer for the staff, between people's out of office schedules. And then one other thing that, we're going to do is we're going to do a social media campaign specifically around, encouraging people to sign up for the text notifications and e-newsletter. Because, you know, Rene has actually done some great on the ground asking about people whether they've seen their communications.
And I think there's still opportunity for more people to know that they can get regular communication on key things. So we're going to try and, spread that word a little bit more over the summer. And then in late summer, early fall, we'll do the water treatment plant completion, open house. And the plant I believe is supposed to be finished in June.
But we want to make sure it's all polished and looking great and we have time to really plan that event well. So we'll probably aim for like August or September.
Nathan:
Yeah. So the plant will be functioning and producing water. We have a hard deadline Water distribution to June 8th. There will be some, safety railing and stuff that needs to go in after that.
And then one of the big drivers there is also the HVAC system upgrades that need to be completed, especially before we run the public. And there can be a pretty uncomfortable building without those working. So that's the the functional plant will be up and running. And then there's just going to be some creature comforts that we need to finish up.
Bryn:
Next. Nathan. So any questions on any of that or suggestions for the next quarter?
Tera:
No thanks. But I do like that, that soft touch up again, encouraging people the water conservation stories in the Connection. I like that approach.
Jana:
As do I. Nice work.
Bryn:
Rene might get to be one of our, keynote residents. So.
Deputy District Manager Rene Santini:
Yeah, I signed up for that analysis. I haven't heard from them, though.
Love it.
Jana:
Rene, did you sign up for Slow the Flow?
Rene:
I did, yeah.
Jana:
Okay. I think I'm going to sign up for that one, too. And then, two years ago, I did do the sod replacement to Bryn.
Okay. But I don't live in that house anymore. But I feel like I could still, like, stand on the sidewalk and pretend I lived there. So.
Bryn:
True. Well, also, if you get the sprinkler evaluation, let us know. Okay. We can. Yeah. Will do. We have captive and willing parties to speak.
Jason:
All right. Great. Thank you very much, Bryn, for your presentation. Anybody else have any questions? Hearing none. I'll go ahead and close out the communication director presentation. Thanks again. And we will open up item number five, the finance report with Molly Jensen. Hi, Molly.
Describer:
On screen.
TO: Board of Directors – Castle Pines North Metropolitan District FROM: Eric Harris, Elevated Clarity (EC)
DATE: May 26, 2026
RE: Financial Report – May 2026 Board of Directors Meeting
Balance Sheet — All Funds
The District holds $49.1M in total assets at 3/31/2026, down modestly from $52.1M at 12/31/2025 — which is almost entirely cash and investments (~$47.9M between UMB Bank, ColoTrust, and the County Treasurer). Total fund equity sits at $46.7M, with the bulk in the Water Fund ($41.9M) and Wastewater Fund ($4.2M). The drop in property taxes receivable from $971K to $514K reflects normal first quarter collection through Douglas County.
General Fund Activity
Actual revenues as of March 31, 2026, were $840,558. Additionally, the District recognized $456,611 in property tax revenues received from Douglas County and $17,120 in specific ownership tax revenues. This represents 47.05% of the budgeted property taxes from the District’s mill levy year-to-date. The District receives the majority of annual property taxes February through June of each year. Indirect cost revenue amounts received to date in the General Fund from the Water and Wastewater Funds totals $308,634, $208,428 from the Water Fund and $100,206 from the Wastewater Fund.
Total actual expenditures as of March 31, 2026, were $594,368, The current net result is a positive change in funds available of $246,190.
We have reduced projected Oil and Gas Royalty revenues based on collections received through March 31st ($266,500 budgeted vs. $108,448 projected). We also lowered projected Professional Services expenditures from $942,608 to $842,240, partially offsetting previously reported increases in the District’s property and liability insurance premium. Overall, we expect a smaller change in fund balance than originally budgeted for 2026. However, because the beginning fund balance was higher than anticipated when the 2026 Budget was adopted, we still project a higher ending fund balance of $645,658.
Enterprise Fund Activity
Billed water usage for March 2026 was 24,612,000 gallons and 66,784,000 gallons year to date, representing a 15.38% increase over the prior year-to-date period.
Molly Janzen, Accountant:
Hi, how is everybody tonight? Hope you're doing well. We'll just dive right in.
I'm not going to spend a lot of time on this month's, financial report, but it is the first time that we're going to be looking at 2026 financials. And the annual projections that we have associated with those. I won't spend a lot of time on the memo other than just looking at the current projects. And I'm sorry, you know, on the page 32.
No, sorry. That's the first page.
36.
Describer:
On screen. Current Projects
Currently, EC working with District staff and contractors on implementing the following process changes and
projects:
-Assist with the implementation of CUSI (billing system) UB4. CUSI has converted rates and account information to the new platform. We are now expecting to go live with the system in July 2026 due to some potential revisions to the rate structure that are being introduced at the May 2026 Board Meeting.
-The District engaged Blackbaud Advisory consultants to strengthen the District’s general ledger and financial system configuration. Next-quarter priorities are to (i) build report groupings to streamline financial reporting and (ii) update the Vendor Master File in preparation for transitioning to the online AP function (Payment Assist) and expense management modules which will streamline and enhance monthly financial reporting.
-As of May 22nd, the District’s auditors have completed their fieldwork related to the 2025 Financial Audit. We are currently expecting the first draft of the audit report for management’s review by June 22nd and a draft distributed to the Board by June 30th, 2026.
-We have started a second-round review of the proposed District Records Management Structure with District Staff. We also have meetings scheduled with Greystone in early June to discuss a scope of work for potentially moving the District from a local server to an online SharePoint solution.
-Recommend that the Board authorize a phased restructuring of the District’s cash management framework and implement changes accordingly.
-Evaluate reserve levels and types of reserves to develop, recommend, and ultimately adopt a reserves policy.
Anticipated Upcoming Schedule (subject to change)
May 26, 2026 – Monthly Board Meeting
June 15, 2026 – Monthly Board Work Session June 22, 2026 – Monthly Board Meeting
Molly:
Okay. So just, updating the board on some of the projects that we have going on. Our initiative to upgrade to the UB4 platform for the billing system. We have had training, and we're continuing to work on that. We also have been working with Blackbaud, related to the financial system and some of the features in that system that hadn't been utilized in the past.
We have work to, to get some efficiencies, and we'll continue to do that throughout the year. We also this month are working on the annual audit. Last week was a pretty concentrated effort on the auditor's part to get through most of their field work. So we did have a discussion with them on Friday to make sure they're on track to produce a draft audit to the board by the end of June.
And then finalizing the audit by the end of July and filing it with the state auditor's office. And they are, we haven't experienced any issues so far with the audit. So it's going well. So then I just wanted to focus briefly on the financials. So if you go to the page with the balance sheet, the next page.
Describer:
On screen. BALANCE SHEET AND STATEMENT OF REVENUES & EXPENDITURES
BUDGETARY (NON-GAAP) BASIS
December 31, 2025 Actuals, 2026 Adopted Budget
2026 Actuals, Budget, Projected and Variance Through March 31, 2026
Molly:
So again, this is the first time that you're seeing a 2026 balance sheet. I just wanted to focus in on a couple of the numbers. It all makes sense at this point. Based on what we expected to happen in 2026. You can see that our cash balances have gone down. And that is specifically related to all of the capital projects going on that we identified for this year's budget.
You can also see that the property taxes receivable that was there at the end of 2025 is associated with the mill levy certification, and we have received about half of what we expect to receive this year. So that's normal. We do receive about for in the first quarter, we receive about half of what we expect for the year.
If you go down to the liabilities, the one that I wanted to point out that's significantly different is that retainer payable. And that also is related to construction. That is the 3 to 5%, amount that is withheld from contractor payments until the project is completed. So it makes sense that that retainer payable is up a little bit.
The fund balances that you see really reflect, that, decrease in cash. And so that's why those fund balances are smaller than they were at the end of 2025. Again all expected. So no surprises there. Any questions on the balance sheet before I move on to the revenues and expenditures.
Jana:
None for me.
Molly:
Okay. So if we focus in on the next couple of pages, I'll just look at the summary statements and highlight a few things there. If you have specific questions on either the summary pages or the following pages that contain more detail, please let me know at the end. After I walk through things. If you look at the first fund, the general fund, the first thing I wanted to point out is, well, let me back up just a minute.
Describer:
On screen. BALANCE SHEET AND STATEMENT OF REVENUES & EXPENDITURES
BUDGETARY (NON-GAAP) BASIS
December 31, 2025 Actuals, 2026 Adopted Budget
2026 Actuals, Budget, Projected and Variance Through March 31, 2026
SUMMARY - ALL FUNDS
DESCRIPTIONS
12/31/2025 UNAUDITED ACTUAL
2026 ADOPTED BUDGET
2026 PROJECTED ACTUAL
ACTUAL THROUGH 3/31/2026
BUDGET THROUGH 3/31/2026
FAVORABLE (UNFAVOR- ABLE) VARIANCE
GENERAL FUND
CONSERVATION TRUST FUND
WATER ENTERPRISE FUND
WASTEWATER ENTERPRISE FUND
COMBINED WATER AND WASTEWATER ENTERPRISE FUNDS
Molly:
Sense this is the first time that some of you may be seeing this this, report. I just want to walk through the columns briefly. The 12/31/2025 unaudited actual column has been updated for our final numbers that are being audited right now. So these we do not anticipate any changes at this point with these numbers. The 2026 adopted budget is what the board adopted for this year. 2026
Projected actual is where we take the actual amounts through March 31st and based on our assumptions on the timing of either revenues or expenditures we project for the whole year. And this is to give us an idea of, are we on track with our revenues or are we on track with expenditures? Are things trending over that kind of thing?
The actuals are the actual amounts through March 31st. The budget through is where we take that annual budget, and we try to predict what month the expenditures will fall in. Sometimes it doesn't always line up like we expect. But that helps us just see things that might be unusual. And then the favorable unfavorable variance is just, revenues that are higher going to be favorable, expenditures that are lower going to be favorable.
So you can kind of scroll that column to see if anything stands out at you that you'd want to discuss. So then if we look at the general fund, the first thing to point out is the beginning fund balance. Our 2026 adopted budget expected a fund balance of $197,782. our actual fund balance that we're carrying forward from 2025 into 2026 is $365,654.
So typically we do want to try to be conservative when we're estimating what we think we'll have at the end of the year. That carries over into the next year. And so this is a positive situation where we projected a lower amount, but actually ended up carrying a higher amount into 2026. If you look at revenues and expenditures in the general fund, you'll see that everything is aligning very, very closely with what we budgeted.
There is really nothing of substance to point out in this fund. In fact, you can look at expenditures, total expenditures, other in total, we're trending about $11,000 under budget in total in all those categories. So it's very usual to have certain line items like may go a little over budget. Some will be under budget. So what we do is analyze it as a whole and say it looks like we're trending favorably with the budget.
You can see then that the ending fund balance that we're projecting is $645,658. Again, a positive when you look at what we were projecting in the adopted budget, largely because we ended up with a larger beginning fund balance than we expected. Any questions on the general fund? Nope.
James:
And I had, hang on a second. I had a quick one on just the $40,000 for insurance.
In the negative there. And I was just wondering if you could just, talk to that for just a second.
Molly:
You bet. That was when we initially, prepared the 2026 budget. We anticipated that our property and liability insurance would be significantly less because of the properties that went to the city. So when we did our renewal, this is what the amount ended up, it didn't significantly change.
So we are going to look at that a little more closely this year and make sure that the city has identified the what they need to be insuring. So that's but that's that's the reason for that.
James:
I figured I just wanna make sure I understood it. Thank you.
Molly:
Yep. Any other questions on general fund?
Moving on. Conservation trust fund. This is just the pass through the revenue, the, that comes to the district that gets remitted to the city because they now, do the parks. So that is just a pass through. Once, the service plan is amended, then we will be able to work to have those moneys go directly to the city.
So you can see that right now we're trending over budget and it's just because the revenue was higher. So the the cost or the outlay to the city is that higher also. So we'll keep an eye on that. But I do expect that sometime during this year we will be able to just transition and have that money flow directly to the city so that we can eliminate that fund going forward.
All right. Moving on to the Water Enterprise Fund again, looking at the beginning, fund balances about $2 million or about a million and a half higher than anticipated. So that's again, fund balance coming into the new year to help support the 2026 activities. You can see that operating expenditures overall are trending. We're projecting a little higher, $5.3 million compared to four point or $5.2.
You can also see, though, that operating revenues is significantly higher. $4.9 is what we're projecting. $4.1 is what we budgeted. So the overall impact of all of that is in that operating income loss line. You can see that in our adopted budget, we were projecting $1.8 million of an operating loss. And right now we are looking at about a $1.2.
So overall, the ending result is that the ending funds available are projected to be higher than what we budgeted.
Any questions on any specifics related to the water fund?
Nope. Moving on to the wastewater fund. Again, beginning funds available were higher than what we had anticipated in the adopted budget. Operating revenues are trending very closely with what we budgeted. You can see just a slight, downward trend, $14,000 that we're estimating for the entire year. So really insignificant. If you look at expenditures, we are projecting right now to be over budget.
And I'm going to have Nathan kind of jump in and help with some of the things that have happened to create that situation and explain.
Nathan:
Yeah. So I think this one is still going to ultimately come in fairly close. So the sewer, when you just projected out like previous six months, looking forward to the next six months, a lot of our collection system maintenance is very front loaded at the beginning of the year.
So we do all of our line inspections are already done. One item that's running higher than we anticipated. There were a number of manholes, that we just haven't been inside in a number of years. So this was kind of our, main year to just target those and really get a good condition assessment on them. Several of those were in pretty rough shape, mostly because they've been buried and sealed.
So we had to do a lot of, like, manhole sealing. And so that's the majority of it. It's really a combination of just needing to rehab more manholes than we expected. And then all of those expenses being front loaded. Collection system outside of that is actually in really great shape. Once we get the manholes done. I'll put together a presentation for the board, probably at the June or July meeting, to really just kind of do an overview of the whole collection system.
What we've done, where we're at. But really, my, my hope is that, you know, starting next year or the year after that, those, total costs will start to drop off fairly significantly just because of the work that we've done. But that's kind of why that's trending higher right now.
Molly:
Great. Thank you.
You can see that we, are still projecting to have a higher ending fund balance than what we anticipated in the budget, even considering some of those, over budget areas right now. Any questions on the wastewater fund?
Okay. If there aren't, then I am not going to focus on the more detailed pages. But certainly if you are looking at this at a different time and have questions, please let us know and we can get those answered.
James:
If nobody says it, I'll say it. You're not getting a lot of questions because it's a really good presentation and clean. So thank you.
Molly:
Thank you. Appreciate that.
Jason:
Yes. Thank you Molly. If anybody else doesn't have any questions, we can close out the section.
And hearing none we will do that. We will close out this part of the finance financial report and move on to the introduction presentation of INBANK.
Molly:
Yeah. And I think we have, two individuals here from INBANK to give some more information. I did hear the comments earlier and definitely want to be, sensitive to the board's desire, to do an RFP, if that's if that's what we want to do.
But we did think since we have, made the recommendation that we would have the bank, come and just share a little bit more about, their, their, their bank. Andrew and Zac, are you there? Yeah.
STEPHANIE MILLER, VP, Commercial Banking, INBANK:
Can you hear us?
Describer:
On screen. THE POWER OF PARTNERSHIP
CPNMD INBANK
Nathan:
And then this starts on page 52 of the packet for those of you following along at home.
Stephanie:
Yes. And thank you so much again for the time today and being able to speak with you and introduce ourselves a little more beyond just what you see in the packet. So, my name is Stephanie and, as you mentioned, I'm here with Andrew and Zac and, you know, in Bank has been around for over 100 years.
We're a local community bank that started in New Mexico and also operates out of Colorado, which is where our headquarters are at right now. We are extremely involved in the communities that we serve. So, our team has actually worked together for well over 20 years. And, six within INBANK for the last six years.
And then previous to that, we were actually your bank at city wide. So we were your banking team and very familiar with with you and your needs, as well as, other water districts that we bank. So, very familiar with that. And as I mentioned, we're very involved in the communities that we serve. So I was president of the Superior Chamber of Commerce for a number of years, and I currently serve on the Superior Town Council.
So I'm very familiar with water rights and, acres per feet and all the things, water districts. So you're speaking my language and then, also, as I mentioned, we bank other water districts. So, very familiar with the unique needs that you guys have. I'll kick that over to Zac and he can talk more about, specifically what we can do for you.
Describer:
On screen. A BIT ABOUT INBANK
We are experienced and dedicated banking professionals who understand the nuances of the Colorado market and are committed to being your banking team for years to come.
• A truly local, Colorado-based bank
• $1.5B in assets
- InBank's asset base continues to grow and our size allows us to be nimble and responsive to your needs
• 76.5% Loan-to-Deposit Ratio
- Our loan-to-deposit ratio provides liquidity we need to support loan growth and invest in industry-leading products and services
• $132.1MM Total Equity Capital
- InBank is considered a ""well-capitalized"" financial institution by regulatory agencies"
Zac Claeys, VP, Treasury Management, INBANK:
Yeah, absolutely. Thank you. Stephanie. So, thank you to the gentleman for the public comment. I wanted to speak, speak to that. So we we did an analysis of your folks current banking and are going to be able to save you. You folks money, on a monthly basis, around like 30%. And in addition to that, we're going to add some efficiencies for you folks.
So there are several things that you currently don't benefit from that banking with us you will. So we have a local lockbox for payments to be to be kept here in the community as opposed to being sent out of state. So the the local lock boxes is really huge. And then the, the other piece of the puzzle is, working to automate the posting of the payments as they come in so that, those, those aren't as manual.
And so, working on, you know, getting a posting file when all of those payments come in so that they're easily logged in, in your accounting system. So add it's added some efficiencies and saving you folks some money.
Nathan:
Zac, real, real quick question. You mentioned 30% savings. on what specifically what is it.
Zac:
Yeah. Good. Good question Nathan.
So 30% savings on your folks is, analysis fees. And then also in addition to that, we were offering you folks a premium rate on your on your deposit balances so that, you're earning, you know, a really strong rate and reducing the bank fees.
Molly:
And just to clarify, our bank fees are currently running around $13 to $1,400 a month. So just for clarification there.
Jason:
Does any of the board have any questions so far?
James:
This one for Molly, I guess. Molly, what do you look for when you're looking to, you know, I guess partner with the bank. And how does it fit with your accounting system? Basically, how do things play well, between the bank and your accounting system.
Like, what form do you get your data in, and how is it going to make it easier for you to manage?
Molly:
I think, you know, most banks nowadays have pretty sophisticated methods of, being able to pull data. So we, we have that currently with our current bank and I'm sure InBank it would be very similar, where we are able to set up connections and get bank feeds into our system.
And so I don't think that will be a significant change. I think, the mention of the lockbox and then lower fees and then I think just kind of back to the the reason for recommending a change in banks is just because the district has had the current bank account for a number of years. And so we just think it would be a good idea to, to switch banks and then, you know, as you heard from, InBank, they, they do offer some additional things that we are getting right now.
So.
Stephanie:
And I do want to speak to some of that online presence. They had mentioned Molly. So thank you for for bringing that up. We're on FIS. Everything talks to each other. So our in-house credit cards, that we create and service, everything from, you know, your online banking, the lockbox to talking to other systems.
It's all in FIS. It's one seamless, service to where you're not having to deal with banks that have acquired other banks and systems are cobbled together, and they don't really talk well with each other. Ours is all on one, so it makes it a much better user experience. And in addition to that, and I'm going to brag a little bit about this team, you'll have our cell phones, our direct emails.
We eat, breathe and sleep with this, this, banking. And so, you'll never have to deal with an 800 number where you're calling and getting routed around and trying to figure out somebody who can help. That's extremely important at critical points where I say you might notice some fraud and you need to get ahold of somebody.
And that's very time sensitive. You're reaching out to Zac, Andrew and I directly, and we jump on that immediately to make sure that that's taken care of. So it saves you time and a lot of frustration if you're trying to deal with an issue, or just need a question answered and, you know, you know, all three of us, we've got a really strong team in addition to the three of us, and we've worked together for a long time.
So you're not having to deal with, you know, you've you used to know somebody and that was your rep. And now there's a new rap and you're getting kind of shuffled around because people are leaving. So you can feel confident that the three of us are here dealing with.
Jason:
Molly, how many other banks did we talk to?
Molly:
I think this is the only one that we talked to, as I, I think I mentioned last week. We did not do a formal RFP, for these services. If if that is something the board wants to do, we can certainly we can certainly do that. After. So sometimes it's not apples to apples comparison. So it gets a little bit complicated to, to, to analyze, banking services I think sometimes.
So.
Jason:
After doing a brief, review search on INBANK, Trustpilot came back with 31 reviews and the average is, 1.7 out of five stars. InBank are you familiar with this?
Andrew Sauer, SVP, Market President, InBank:
Yeah, I can speak to that. Jason, this is Andrew. So on on Trustpilot, some of those reviews we did look at that.
That was mentioned before this meeting. So we do have a presence in the southern region of the state and into northern New Mexico. That was a bank we had acquired, a little over two years ago. And most of those complaints revolved around, that that process or that integration that took place at that time. So while it is under the InBank umbrella, it's not specific to the North Metro group, that we represent.
But I did notice that those, those complaints were out there.
Jason:
Okay. Thank you.
Does anybody else have any, comments or questions for InBank?
Andrew:
I know, one more thing. I would encourage you for an apples to apples to reach out to any other references that we've provided. They're going to give you a much better picture about specifically working with our team and what, what that entails.
Jason:
Okay, perhaps Eric and Molly can share that with the board.
Stephanie:
Yeah. Those references include, organizations like United Power, Western, United, Clear Creek County, Poudre, Poudre Valley REA, Guzman Energy... Mountain Parks Electric. So that might, to Andrew's point, give you a better picture of what working with us is like. Great.
Jason:
Thank you. All right. Hearing no more questions. Thank you very much. InBank for taking the time every day to present to us,
I think we can go ahead and close section B and move on to section C if it's applicable. Does the board have any thoughts on that?
Tera:
So, I know that we talked about this quite a bit in our study session, not this last time at the time before. And, I think this is a great recommendation from staff. It does allow us to serve our customers better. It cuts our costs. It lowers our fees that we ask about. We've asked about all the time. I think having a local presence with all of the.
Consolidations that are going in banking as a, as a positive. And, I mean. I don't know that people will go out of their way. It's like a Yelp review. I don't think people are going to go out of their way to say, I love my bank. So I think this is a great recommendation. I appreciate the analysis that staff has done, and, I'm in favor of it.
Jason:
Thank you. Tera. Anyone else?
Jana:
I'll add in that hearing Molly talk about what fees we're paying monthly. Just in fees. I'm. I was excited that to have the representatives from InBank here to discuss that. But, Jason, your point of the bad reviews does concern me. But I appreciate the feedback. And I actually super agree with Tera that people don't write good reviews.
They write bad reviews. So I think we all have to take it with a grain of salt. But it is out there, so. But version is I'm pro and pro.
Jason:
Okay. Are we ready to make a motion without having any other banks being talked about?
Tera:
I’m willing to make a motion.
Jana:
Jim, did you want to weigh in before anybody does?
James:
I just had one concern, and it sounds like. Molly, you haven't actually utilized, you know, the format. I mean, I, I get it's a universal system. That's what it sounds like. But you haven't necessarily done a pipe cleaner, as I would call it, and take some data from the bank. You know, again, it's just made up information and received that.
And to see how it played with your system. And the other part of that was is we have this ultimate goal of kind of when we receive a bill or what have you, or we make payments to have it coded against certain accounts so we can track things better in the future as well as now. And I just, you know, I want to make sure that we have the flexibility to implement those things and that there's no concerns, from that standpoint.
So, you know, again, I, I don't have the visibility into what that data looks like. So, you know, if that's not a concern with you and you think it's going to be okay, then you know, I can feel better moving forward if you don't know, or you haven't seen sample data and how you'd receive it, I'd have that kind of concern.
Zac:
May I possibly respond to that question? Sure. Well wonderful. Thank you. So our system is nice because it allows for different. It's it's malleable. So we can kick out different file types and in different orders to cater to a lot of different accounting systems. So we, we haven't run into any issues with being able to get information from our system over to your accounting system and making it seamless.
Again, we can do that through different types of files, and we can play around with the order to make sure it's easily digestible.
Stephanie:
And Zac actually leads our implementation team. So he helps migrate everything over. And so it's not you move stuff and you're kind of on your own dealing with it. Zac and his team are the ones to help guide you through an implementation process that is set to whatever your schedule is and and however fast you want that to happen.
Zac:
Yep. And to Stephanie's point, we we do testing too, right. So some sometimes we'll run into something but we'll jump right on it and we'll be able to, to run it by our team and just make sure that everything's, you know, running smoothly.
Jason:
All right. Thank you guys.
Molly:
Yeah. And I think, I haven't, seen the details yet of how all with all of that would work.
But, you know, I think the idea checking with some of the, the other, places that do banking and just making sure things go well on that track, would alleviate any fears that I had about not being able to get the data we need.
Nathan:
So. So, Paul, we could theoretically then, if if it was the board's desire to do an approval contingent on references and system compatible compatibility and then report back to the board.
Legal Counsel Paul Polito, Esq.:
I think so, but let me just so what would that look like? Essentially it would if the if the board as a whole is okay with the references, then it's then it would be approved. I don't know.
Nathan:
We would delegate that to finance.
Paul:
You could always delegate it. You could delegate I don't know, I'm not so sure about this about the former.
With those conditionals. I don't think that would really work, but but you can certainly delegate it.
Tera:
Yeah. I mean, staff is one that has recommended this. We don't use, a weird accounting system, do we, Molly? I think we have heard on Blackbaud as a part of our accounting that's like the gold standard. Yes. It's it's not like using some, off, product off the shelf or cluged together. Something. And then, let's be honest, who's going to provide a reference.
That's that saying something.
Molly:
Right. Yeah, that's true too. Yeah.
Jason:
Okay. Do you want to make a motion, Tera?
Tera:
I'll make a motion to approve the authorization of opening. Do you have something to read?
Jana:
But, yeah, it's in your packet.
Tera:
Right. But I'm looking at what's on this. Yeah. So opening access to bank accounts and designation of official custodians. I'll second.
Jason:
All right, having a second. We'll move to vote.
Board Voting All Speak:
Jim. Approve. Tera approves. Jana approves. And I'll, back the staff's decision and approve it as well.
Jason:
So, that motion passes and we will go ahead and, close out Item number five, the finance report, and move on to item number six, the water rate, a tier presentation discussion with Rene.
Molly:
Right. Thank you, thank you.
Stephanie:
Thank you again for the time.
Andrew:
Thank you. Much appreciated.
Nathan:
Thank you guys.
All right. Rene do you have, Rene do you have PowerPoint? The display is weird on this one.
Describer:
On screen. CPNMD "Water Rates Discussion" 5.26.26
Deputy District Manager Rene Santin:
I have it open. I have the the scrolling version, which I can. Or do you want me to share? Yeah.
Okay. I was sharing the right screen. Looks good. All right. So, this presentation came about from last board meeting where we, talked about potentially implementing some fines for, waterways. And, there wasn't broad support, but there was support for restructuring our rates such that people can, use as much water as they want, but, you know, pay more for it for the higher consumption.
Describer:
On screen. Rates and Conservation
Aquifer Water is Finite
Currently there is no mechanism for conservation
-Drought Restrictions
-Lack of enforcement capacity or support for fines
Current lot size based budget system is complicated
and antiquated
->600 individual codes
-Residents pay different amounts per gallon
Rene:
So, as you all know, the aquifer that we are drawing from is finite. And currently we don't have any mechanisms for conservation. We can put in drought restrictions, but without enforcement then, we don't have a, you know, the ability to enforce because we're very lean, and there's not, you know, support from the board in, implementing fines.
So, our current rates are based on your lot size and your budget. It's complicated and antiquated, and it result in over 600 individual codes. So if you draw out the matrix of lot size, you know, on one axis and the tiers that we have on the other, you get 600, over 600 individual codes. Functionally this means that residents are paying different amounts per gallon depending on your lot size and and your budget.
Describer:
On screen. Understanding Usage
2024 Usage
This is a dot and line plot and graph. Rene explains.
Rene:
So, I started looking at usage to see if we could simplify our tier structure into, something that is the first 7000 gallons is tier one. The second, you know, 7000 to 15,000 is tier two. And so on. So this is, just, you know, a random sampling of houses and you can see that we have some very high water users and some very low water users.
So some residents use, over 100,000 gallons, 160,000 gallons in the summer, while other residents are maybe peaking at 20,000 gallons. So it's like a significant difference. If you take all of the district and aggregate it, then you can run percentile, analysis.
Describer:
On screen. Understanding Usage
Percentile Water Usage 3/4" Meter
Graph of Water Usage (Gallons) over a year.
Using 5th, 25th, 50th, 75th and 95th percentiles a line graph is plotted with 5 lines with emphases at 30,000 and 44,000 gallons for the 50th and 75th percentile.
Rene:
And this is what I did next is took everybody's usage three quarter inch meter, and pulled some percentile.
So in the green is the 50th percentile. That means 50% of our residents are below that line. And using less water, 50% are using more water. And that is about 30,000 gallons, peaking in June. Then. 45,000 is, you know, 75% of people are below that. And then if you, then we have that 95th percentile. So only 5% of people are using more than about 90,000 gallons.
Describer:
On screen. Percentile Based Tiers (Illustrative Purposes)
A table described herein:
Current Rate
Tier 1 (90th Percentile) $7
Tier 2 $9.07
Tier 3 $12.96
Tier 4 $24.52
Tier 5 $XXX
No Drought Restrictions
Tier 1 (90th Percentile) 7,000
Tier 2 15,000
Tier 3 25,000
Tier 4 40,000
Tier 5 80,000
Stage 1 Drought
Tier 1 (90th Percentile) 7,000
Tier 2 15,000
Tier 3 25,000
Tier 4 35,000
Tier 5 60,000
Stage 2 Drought
Tier 1 (90th Percentile) 7,000
Tier 2 10,000
Tier 3 20,000
Tier 4 30,000
Tier 5 45,000
Parker Water (3 Tiers)
Denver Water (3 Tiers, Drought Pricing)
Aurora (4 Tiers) (Drought Surcharge)
- $2.15/irrigation Kgal
Highlands Ranch Water (4 Tiers, Drought Pricing)
Rene:
Then we could then, what we are wanting to do, and this is, illustrative purposes, but develop a tier system based on those percentiles, so that we can help define so that they make sense for our usage. So as an example, if we had no drought restrictions, we could, you know, for 7000 gallons, 15, 25, 40. So what that would do is shave off the peaks, essentially. We could target, you know, a little bit below each percentile in the tiers and, and, encourage conservation by the people that are only sometimes exceeding, maybe cut back to be 100% in that lower tier.
This is not new. You know, this is, Parker water has three tiers. Denver water has three tiers. And drought pricing. Aurora water has four tiers and a drought surcharge, which is to $2.15 per thousand gallons on anything above tier one, I believe, which is their irrigation tiers. Highlands Ranch Water has four tiers and drought pricing as well.
So what this could allow us to do is, two things. We could change the budget depending on our drought stage that we declare, or we can change the pricing, keeps the budget the same, but increase the pricing through a drought surcharge, which is what our surrounding communities are doing.
Jana:
Rene, could you I don't mean to cut you off, but could you expand slightly on what, drought surcharge or drought pricing means just real high level.
The difference?
Rene:
I think the surcharge is every every one of these tiers above tier one. So tier one typically is indoor usage. It's pretty consistent. And it can be established basically winter consumption. So that that drought surcharge would apply to any tier above that. Everything would go up by $2.15. A drought pricing can be variable. So you, you could, in a stage one drought increase, leave tier one and two the same, but start increasing three, 4 or 5.
And then in stage two, you really increase all everything that's, you know, above and beyond indoor usage. And, and with drought pricing, you could set those tiers to whatever makes sense for your usage. A drought, surcharges, just everything goes up by $2.
Jana:
And then also in the example of the $2 and 50 $0.15 for irrigation, how are they know, how are they separating out irrigation like that?
Rene:
It's everything above tier one.
Oh, so would be irrigation. okay. So nobody uses, 15,000 gallons indoors.
Jana:
Okay, okay. So okay, I track. Okay. Thank you. Rene.
Rene:
Yeah. So this is indoor usage, right? So even our 95th percentile is under 10,000 gallons in the winter.
Jana:
Got it. Yeah.
Rene:
And then it.
Paul:
By the way. Yeah. I think a good way to probably think about the surcharge and pricing is the surcharge is on top of a base rate.
The pricing is a replacement rate. It's a it's a completely different rate. So it's the terms kind of get used loosely sometimes. But that's that's what it comes down to.
Jana:
Okay. Thank you Paul.
Describer:
On screen. Understanding Usage
Percentile Water Usage 3/4" Meter
Graph of Water Usage (Gallons) over a year.
Using 5th, 25th, 50th, 75th and 95th percentiles a line graph is plotted with 5 lines with emphases at 2,500, 15,000, 25,000, 40,000, and 80,000 gallons.
Rene:
If we were to, to set some tiers, this is where I was talking about shaving off the peaks. You could set them at various levels so that it encourages the, you know, these users to maybe stay under 40,000.
That way they don't go up a tier. And these users to stay above under 80,000, so they don't go up a tier. But really it can be whatever, makes sense for the district in terms of revenue. And that's one thing that, Eric and Molly would, would do is analyze the revenue that we project the revenue for any particular tier structure to make sure that we are covering, you know, our costs.
Tera:
So Rene I, I, you, I know you've done a ton of work on this. And I know a couple slides ago you said there were like 600 different codes. If we structured. I like the way that you've laid it out here. I would love to get, Molly and Eric's input on how best to do the revenue. So how many codes would we go to, and is it going to be easier to implement instead of 600 codes?
Rene:
It would be however many tiers we have because everybody would have the same, same budgets. So 4 or 5, we could do three if we, I'm, I'm partial to four. I think it gives us a little more granular, you know, more resolution. I'm actually partial to five, but five might be. No one seems to be doing five.
Tera:
So more like Highlands Ranch then.
Rene:
Yeah. And then the, The other goal is we want to also have some, quantitative criteria that would trigger that restriction that way. You know, it's, it's in the code where if snowpack or reservoir levels or other indicators that we can quantify are or, you know, within this band that triggers a stage one and within this band triggers stage two.
And this lines up with what other utilities are doing. Not every utility, but some utilities are doing it that way.
Tera:
This is huge. And like again, when we want to be a good regional player, it makes sense to be a little bit more consistent. So yeah, and I appreciate all the you are a data geek.
Rene:
A little bit.
Appreciate it. Yeah. And and you know, this way we, we don't have to resort to fines if we are in a drought. And we have, you know, five tiers, you know, that usage in itself. We could said that rates so that it discourages use, but at the same time give people the freedom to go ahead and use that water.
You know, if, if they really want to.
Tera:
I like it a lot.
Jason:
Sorry Rene, you talk about cutting off the peaks, this kind of looks like 50% of the our, customer base is going to get charged a higher tier.
Rene:
This is just an example of, you know, of where the tiers could go and, and this and the cost can also be reword.
So one of the goals that Nathan and I talked about is actually making this tier one, less expensive across the board for everybody. So if we were to set these budgets, these rates would also change so that we make enough revenue. So that could mean tier three goes up, a tier two goes down and tier one goes down.
So. So that's more or less, you know, the thought is, is this isn't what we're going to do. This is just the structure that we would implement. And then we would look at that financial analysis to see where everybody would land. But those those tier costs, are not going to be the same as they currently are.
And this is our current rate, by the way.
Nathan:
Yeah. And so I think, something to point out to is that what we, what we've effectively been doing is tier one becomes an indoor irrigation or an indoor use budget amount. And so there would be potentially depending on how everything breaks out, is it all irrigation water tier two and above would be billed out at a separate rate.
So right now that tier one rate fluctuates to kind of keep you within your budget. And that's really what we're trying to simplify. And then also make all irrigation water, in that tier two at least slightly more expensive. So that just, you know, it costs a little bit more if you're going to be using the water to put it on the ground.
And then maybe you get like a slightly bigger budget and a little bit of a break on all of your indoor use for your winter months. One of the more consistent comments that we've gotten about our current rate structure is that, like larger families or people that have more kids at home, kind of get a little bit can get hit a little bit harder with that into our budget so we could provide some resident relief on indoor use and then make sure that the, revenue capture comes from third on the revenue capture.
But that we're, we're really driving conservation efforts with the with the rate structure.
Jana:
I definitely think this does it, and I love that. Now everybody would be paying the same rate in a sense for irrigation, regardless of their lot size. So when Rene and Nate shared that that was funny to me, like, why would you get a different rate based on the lot you live on?
So, I think this is simple. absolutely for tier four, the concept of four tiers versus 600. Rene. So all good.
Tera:
I agree with Jana. Usually when Jana's happy I'm happy.
Rene:
And then again yeah we've talked about and this would be whatever is easier to implement with, with our billing system is we can lower budgets and keep tiers the same and and cost the same. So people just shift. So you hit, you know, a higher tier sooner.
Or we could just have the drought pricing where the budgets stay the same, just the prices for each tier, increase in, in case of a severe drought.
Jana:
Oh, and I want to add in one more thing. I know you pointed out, Rene, that other jurisdictions don't appear to have five tiers, but based on those outliers in your table that have the, you know, just the six figures worth of water, maybe Castle Pines needs five tiers.
Maybe we've got these mega lots or something where we've got big water users that need a tier separate for that. So I don't know, just I I'm okay considering five tiers if that would work for our community better.
James:
Yeah, I kind of feel the same way. Jana. If we are truly trying to conserve and keep it fair, I think that that goes a long way.
Tera:
I like that. Conserve. Keep it fair. I like how you are really trying to encourage the right behavior. And I haven't seen Molly doing her happy dance that there'd be, you know, five different codes than 600.
Molly:
And I would say, Rene did meet with with Eric and I and kind of went through it. And we are we are very interested in how this would work.
And looking forward to how it evolves.
Nathan:
So this primarily applies to the residential accounts. Do there have to be some additional kind of like thoughtful approach to, like large irrigators, HOAs. Just because it's it's kind of a different game. But, that's a relatively small portion of the overall view. I think that's very manageable, especially with Rene's data grubbing skills.
James:
I think there was a compliment in there.
Nathan:
He knows it is absolutely a compliment. I, I get to walk down the hall and geek out to all the graphs that he's built, and then we feed him more information and he makes more graphs. It's great.
James:
Now, looking at this chart, Rene, you know, just trying to simplify things in my head.
The 50th percentile is the black guy. Okay. I'm just looking for when we kind of set the tiers and you kind of put some representative tiers here. You want to capture the most number of people, I think, at some reasonable rate, that obviously we're covering our expenses and such. And he said this is only an example, but where do you think that the right number is the one on the chart you currently have?
Or, or would you tweak a little bit. Because the 7000, during, you know, the other eight months to the year I think works, or maybe you make it 8000 just so you don't have to, you know, occasionally get bumped into a higher tier, but the four months of the year starting say, you know, May, June, July, August in those peak, peak months, what what's that second tier?
You think is the right number for that? Is it the 15,000 or is it a little bit higher than that? Try to get.
Rene:
It would ultimately depend on how we end up on the implementation. If the implementation is, changing the pricing, keeping the budgets the same and increase and doing a drought pricing. I would probably keep, you know, this 15,000 tier, maybe bump it up to 20,000.
And then, yeah. So if we're changing pricing, I think it would make sense to have have them closer together, because then we can, you know, decide how how severe the drought is and then increase the pricing, you know, only a little bit on that second tier, because that second tier is only 15,000 gallons. And, you know, the other tiers are bigger chunks.
And maybe we want to take a bigger bite out of that apple.
James:
Yeah. Okay. Yeah. The only reason I'm bringing it up. And then my thought goes to if we have residents in here and I think Nathan brought up a bunch of kids and this and that, their usage is higher. But I'm thinking more about people budgeting and planning for their various expenses.
And then not get surprised. I mean, obviously we we, you know, this information is publicly available. And we're talking about it right now, but I was really just talking about, you know, you know, probably two months of the year where so many you know, bumps over the line. And I don't know, I mean, you have percentiles here, but I don't know the raw number that you don't if you affect as few people as possible with a rate increase, if it's just normal usage, not necessarily drought.
So that's that's all I was thinking, just for budgetary purposes, for the individual family. That's all.
Rene:
So the 90th percentile is would be 7000 gallons. Yeah. So 10% would, would go into that tier two.
James:
Let's 10% for all the rest right? Or is that am I reading that wrong?
Rene:
No. So I didn't do 90th percentile on all of these.
I just did 90th percentile to figure the tier one. Okay. So we could decide maybe we target the 95th percentile and only 5% of residents would go into that tier two in the winter.
James:
Okay. I, I think that's all I was really talking about. Okay. You know, as you know, break it down in segments and, and, and, you know, and obviously make it so, you know, people know what they know where the edge is and where they're going to bump into a new higher tier.
But again, it's not a huge difference between 1 and 2. I was just it was just asking and maybe think about where that split is a little bit sharper. That's I'm not saying you didn't do that. I'm just looking at it for myself and possibly other people that you know, I know we have a lot of old people and I'm getting there myself that are probably, retirees and fixed budgets and things like that.
But, you know, a little bit extra month might sting them more than the average person. I don't know. That's just where. Right.
Jana:
And I have an idea. Oh, am I cutting somebody off or you going Rene?
Nathan:
No, no. Go ahead. It was me then. Jana, you're good to go ahead.
Jana:
Okay. Okay. I have an idea, Jim.
And I don't know if maybe this isn't great, but just. Here's where my mind goes to. What if we let Rene polish the pearl on this a little bit more? Kind of put some thought into where he'd like to see the tiers and then do a case study of somebody, you know, a family A. And here's what they paid in 2025.
And you show that and then compare it to what they would pay in this new system. So and I'm only saying that just as that we could have like just one swath of an example of somebody's bill for a year. And we could kind of see the delta and we could see this sting. Or we could see the fixed income thought process of like, can people handle this?
Because that's my thought that when you look at it just as a price per thousand gallons, it doesn't always line up with, what is it my bill going to actually look like though, Rene? Like, that's..
James:
I think that's perfect Jana. I think it's a great idea.
Yeah. So maybe put some real world number against an actual bill or two.
Jana:
Yeah. I'll even volunteer my own family if you want to. You pull my bill and just use that like I'm being serious. So if that's a good example of the average Castle Pines family.
Rene:
Yeah, I can definitely do that. And I can, pull from, you know, there's families I know that have a lot of lots of kids and families I know that don't, you know, we'll scrub personal information, but I can do that as well.
You know, because...
Nathan:
And just one quick comment to your point, Jim, about simply about individual household budgets. One thing that the simplified tier structure will do is kind of wish list item that I've had for the website for a while, is an easy to use functional water calculator. Like something that anybody can go and punch in a few data points that everybody would have readily available, and get an estimate of what that would show up in their bill in any given month.
With the current complexity in those over 600 points, it's just not really a reasonable thing we could do. And expect a resident to use. But that was one ancillary benefit that would come out of this.
James:
Your phone would just keep ringing. But I think, the way this is set up, I mean, I think Jana said it best, and I agree, I think, you know, moving to something like this is long overdue, and this would be great if you can implement it.
Describer:
On screen. Next Steps
Workshop with Subcommittee
Revenue Analysis
Rene:
Yeah. So, I think one thing, Nathan that kicked around was if, members of the board wanted to form a subcommittee and, we, you know, meet, however, often make sense to sort of develop the structure, get some immediate feedback from a few board members that way. We have buy in throughout this whole process. We can we can do that.
And then, Molly and Eric would have to once we have, you know, a proposed structure, they would do a revenue analysis. And I think, Molly, you guys have a financial model, right, that we can plug this data into. And I think really that's going to be,
Super critical because, you know, we can we can do smaller chunks, but you know, the it's it's a pricing that's going to, you know, really figure out how much people are paying. So if we have, the second tier of 15,000, it's probably a small increase. We have the second tier at 30,000. Then we would have to price that differently.
So.
Nathan:
So there'd be two board members that, would kind of pick it up with us from here and then run it all the way through to the, rate update, budget season approval stuff.
Jana:
I’ll volunteer.
James:
I'll volunteer. If the. Yeah, I'd volunteer as well, but, Leah is not here, so.
Nathan:
The subcommittee can only be two board members.
Jana:
Jim, I like the idea of it being you instead of Leah because I represent the, you know, family with kids, and then you raise them. You represent the different, demographics. So to me, I like the differences. Putting me and Leah on it together would be kind of duplicating, duplicating things.
James:
That's fine. I mean, as long as the other folks are fine with that, I'm good with it.
Jason:
I'm good with it.
Rene:
So that's all I have.
Tera:
You two are my my fellow data geeks. So I kind of figured you two, would volunteer. And Rene.
James:
You have no idea.
Tera:
If you need to pull my data, because, again, we're just a two person household. If you want to see, you're always welcome to do that.
Rene:
Yeah. How big is your lawn now?
Tera:
We've been reducing it over the years. We need to reach out and do that rebate.
Nathan:
There not retroactive.
Tera:
No, but we talked about it. Yeah, absolutely.
James:
And I carried my receipts around for my smart water meters and my, rain, rain free sensors and for, like, a year and a half. And I think I lost the receipt, so. I never turn those in.
Jason:
And I think we can move on. Rene, thank you very much for this presentation. Let's move on to item number seven, the legal counsel status report. Good evening Paul.
Describer:
On screen. MEMORANDUM
TO: Castle Pines North Metropolitan District
FROM: Seter, Vander Wall & Mielke, P.C.; Paul Polito, Esq.
DATE: May 22, 2026
RE: Legal Status Report for the May 26, 2026 Board Meeting
MATTERS REQUIRING BOARD ACTION
MATTER: RESOLUTION GOVERNING DISCLOSURE OF CUSTOMER DATA TO LAW ENFORCEMENT AGENCIES
Status: The Board and counsel discussed the framework for a resolution regarding disclosure of customer smart meter data to law enforcement agencies during its May 18, 2026 work session. Counsel has prepared a resolution regarding same for consideration at the Board’s May 26, 2026 regular meeting. The resolution imposes strict requirements regarding the non-disclosure of certain smart meter data, while preserving exceptions for certain uses, including CORA compliance, internal District use, governmental coordination for non-investigatory purposes, anonymized data, and customer consent.
Action: Consider resolution for approval.
Paul:
Hi everyone. Hope you're doing well. Okay. Page 58 is the legal status report. I will pause here in case anybody has any questions before I talk about the resolution.
Jason:
I don't think anybody has any questions. Do they?
Describer:
On screen. CASTLE PINES NORTH METROPOLITAN DISTRICT
RESOLUTION NO. 2026-5-1
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CASTLE PINES NORTH METROPOLITAN DISTRICT ADOPTING POLICIES AND PROCEDURES GOVERNING THE DISCLOSURE OF CUSTOMER METERED WATER USE DATA TO LAW ENFORCEMENT AGENCIES
WHEREAS, the Castle Pines North Metropolitan District (the “District”) is a quasi-municipal corporation and political subdivision of the State of Colorado, duly organized and existing under and by virtue of Title 32, Article 1 of the Colorado Revised Statutes (“C.R.S.”); and
WHEREAS, the District owns and operates a domestic water system that provides treated water service to customers located within the District’s boundaries; and
WHEREAS, the District has deployed, and continues to deploy, advanced metering infrastructure (“AMI”) and related smart water meter technology that records customer water consumption at intervals more frequent than the traditional monthly meter read, and that transmits such data to the District by wireless or wired means for purposes of billing, leak detection, conservation, theft prevention, system operation, and other utility functions; and
WHEREAS, customer water consumption data recorded at sub-daily intervals, when analyzed alone or in combination with other information, can reveal information about occupancy, daily routines, and other activities within a customer’s residence or premises that is not necessary to the District’s utility purposes and that customers may reasonably expect to remain private; and
WHEREAS, the Board of Directors of the District (the “Board”) is authorized under C.R.S. § 32- 1-1001(1)(m) and (n) to adopt and enforce rules, regulations, and policies not in conflict with the constitution and laws of this State for carrying on the business, objects, and affairs of the Board and of the District, and to exercise all rights and powers necessary or incidental to or implied from the specific powers granted to special districts; and
WHEREAS, the District is a custodian of public records under the Colorado Open Records Act, C.R.S. § 24-72-201 et seq. (“CORA”), and the names, addresses, telephone numbers, and personal financial information of past or present users of the District’s public utility services are exempt from public inspection under C.R.S. § 24-72-204(3)(a)(VIII), subject to the proviso allowing disclosure of aggregate or statistical information so classified as to prevent identification of individuals; and
Paul:
Okay. That brings us to page 63. This is the resolution, that adopts, some policies and procedures governing how the district responds to law enforcement requests for customer water use data. So, this was something we discussed last week in the work session. This was this is prompted by a me and Jim's conversation, and really by the district's deployment of the smart meter technology. Which records consumption, at some pretty frequent intervals, and it could reveal some information about, household occupancy and routines, that customers could reasonably expect to, you know, remain private.
Describer:
On screen. CASTLE PINES NORTH METROPOLITAN DISTRICT
RESOLUTION NO. 2026-5-1
Section 2. General Policy — Warrant Required for Voluntary Disclosure.
Except as expressly provided in Section 3 of this Resolution, the District shall not voluntarily disclose, share, transfer, transmit, or otherwise make available any Customer Data to any Law Enforcement Agency in the absence of (a) a Warrant authorizing seizure or production of the specifically requested Customer Data, or (b) other Valid Legal Process compelling disclosure. The District’s policy is to act as a passive recipient of legal process and not to provide voluntary assistance to Law Enforcement Agencies seeking access to Customer Data.
Paul:
So this addresses that, the core policy for this resolution is on page 65, and that's section two. So the district will not voluntarily disclose customer data to any law enforcement agency with either without either a warrant or some sort of valid legal process. So the idea here is that the district acts as a passive recipient of legal process, not necessarily a voluntary partner to law enforcement.
Describer:
On screen. CASTLE PINES NORTH METROPOLITAN DISTRICT
RESOLUTION NO. 2026-5-1
Section 3. Exceptions.
The warrant requirement set forth in Section 2 shall not apply, and the District may disclose Customer Data without a Warrant, in each of the following circumstances:
(a) Exigent Circumstances. The District may disclose specifically requested Customer Data in response to a representation of Exigent Circumstances, provided that the disclosure is limited to the Customer Data reasonably necessary to address the exigency and that any oral request is promptly confirmed in writing.
(b) Customer Consent. The District may disclose Customer Data with the written, informed, and revocable consent of the customer to whom the data pertains or that customer’s authorized representative.
(c) Aggregate or Anonymized Data. The District may disclose information that has been aggregated or anonymized in a manner reasonably calculated to prevent identification of any specific customer, account, premises, or household, consistent with the proviso in C.R.S. § 24-72-204(3)(a)(IX).
(d) District Operations and Enforcement. Nothing in this Resolution restricts the District’s use of Customer Data for its own utility purposes, including without limitation billing, account management, leak detection, conservation enforcement, water-use restriction enforcement, theft of service investigations, system operation and planning, response to
customer inquiries, audit and accreditation activities, defense of claims brought against the District, or referral of matters to the District’s legal counsel.
(e) Other Governmental Coordination. Nothing in this Resolution restricts disclosure of Customer Data to other governmental entities for non-investigatory purposes authorized by law, including drought coordination, water resource planning, public health response, mutual aid, or compliance with intergovernmental agreements to which the District is a party, provided that the recipient agency is not acting at the direction of, or on behalf of, a Law Enforcement Agency seeking to avoid the requirements of this Resolution.
(f) Federal Law. Nothing in this Resolution shall be construed to require the District to violate, or to excuse compliance with, any applicable federal law, including without limitation the federal wiretap and stored communications statutes, orders issued under the Foreign Intelligence Surveillance Act, and national security letters issued under 18 U.S.C. § 2709 or other federal authority. To the extent any provision of this Resolution conflicts with a binding federal law, the federal law shall control.
Paul:
There are some exceptions that I have carved out, that you can see in section three. This allows disclosure without a warrant. So this would involve exigent circumstances involving imminent death, serious bodily injury, missing a missing person, written customer consent, aggregated or anonymized data that wouldn't necessarily reveal the identity of the person. The district's own utility operations and enforcement.
So a, you're not tying one hand behind your own back. And then non investigatory coordination with other governmental entities, say, for example, you want to enter into an IGA, with another government and shared data to effectuate some purpose. You'll be able to do that. This won't stop you from doing that because it's not an investigatory, procedure.
And then lastly, compliance with overriding federal law. We're not going to step on the feds toes. So those are the exceptions. I'll pause there in case anybody has any questions, comments, concerns.
Describer:
On screen. CASTLE PINES NORTH METROPOLITAN DISTRICT
RESOLUTION NO. 2026-5-1
Section 4. Response to Compelled Legal Process.
Upon receipt of Valid Legal Process directed to the District and seeking Customer Data, the District shall (a) promptly forward the process to the District’s legal counsel for review as to facial validity, scope, and any available objections; (b) comply only with the specific terms of the process and produce only the Customer Data reasonably encompassed by the process; (c) preserve and assert, through counsel, any applicable privileges, exemptions, or objections; and (d) seek modification, quashing, or a protective order where, in the judgment of legal counsel, the process is defective, overbroad, or otherwise improper.
Section 5. Administrative Subpoenas and Other Non-Judicial Demands.
Demands for Customer Data issued by a Law Enforcement Agency without judicial supervision, including administrative subpoenas, civil investigative demands, and informal requests, are not Valid Legal Process for purposes of this Resolution. The District shall not disclose Customer Data in response to such a demand absent a Warrant, judicially issued subpoena, court order, or one of the exceptions enumerated in Section 3. The District may request that the issuing agency obtain a Warrant or seek judicial enforcement of any administrative subpoena, and may otherwise respond to such a demand by providing information that is not Customer Data, such as a copy of this Resolution.
Section 6. Customer Notification.
Except where prohibited by a court-ordered nondisclosure provision, by statute, or by Exigent Circumstances, the District shall make reasonable efforts to provide written notice to each affected customer of the District’s receipt of Valid Legal Process seeking that customer’s Customer Data prior to disclosure, in order to afford the customer a reasonable opportunity to seek judicial protection. The form, timing, and method of notice shall be determined by the District Manager in consultation with legal counsel, taking into account the nature of the process, any compliance deadline, and any applicable secrecy or nondisclosure obligations.
Paul:
Okay. So the rest is quite operational. I'll call out the sections briefly here. Section four. upon receiving legal process, the staff forwarded to Council for review. Complies only with its specific terms and service available objections. For section five, it clarifies that administrative subpoenas and informal requests do not qualify as valid legal process. We require judicial supervision and that's Fourth Amendment stuff.
That's just the law. Section five or I'm sorry, section six, customer notification. So the district will make reasonable efforts to notify affected customers before disclosure, unless it's prohibited by some sort of nondisclosure order, or exigency, if it needs to act fast in the case of the missing person or something along those lines, gives you that, that room. Section seven, you'll comply with Cora.
Section eight, district manager is a single point of contact. And then he has the authority develop review procedures, trained staff, report to the board annually. And then section nine is that the district will maintain a log of all disclosures available to affected customers. on request.
Describer:
On screen. CASTLE PINES NORTH METROPOLITAN DISTRICT
RESOLUTION NO. 2026-5-1
Section 10. No Private Right of Action; No Waiver.
This Resolution is adopted for the internal governance of the District. It is not intended to, and does not, create any contractual right, third-party beneficiary right, or private right or cause of action enforceable against the District, its directors, officers, employees, agents, or contractors. Nothing in this Resolution shall be construed as a waiver of any defense, immunity, privilege, or protection otherwise available to the District under the Colorado Governmental Immunity Act, C.R.S. § 24-10-101 et seq., or under any other applicable law.
Paul:
There are some protective provisions. Section ten makes it clear that the resolution is for internal governance.
It doesn't create some private right of action that somebody within the district can then assert, you know, and sue the district, that you didn't comply with your own resolution. This doesn't create some private right of action for somebody to go and sue the district that. And then sections 11 and 12 are just standard severability and immediate effective date provisions.
So, you know, I think if I so I had to distill this, I think the bottom line with what this resolution does is it gives staff a clear protocol when law enforcement comes calling, it protects customer privacy interests. That smart meter technology has made more sensitive. It strengthens the district owned constitutional position regarding its own data collection, practices.
So it is beneficial for the district, and it doesn't interfere with the district's ability to use its own data for, for its own purposes. So that about summarize it, if if anybody has any questions about it now, I'm happy to to answer them and otherwise, the board is free to entertain a motion to adopt the resolution.
Jason:
Thank you. Paul, does anybody have any questions?
Jana:
No questions for me. Thank you.
Jason:
All right. I'll go ahead and, make a motion to approve the resolution regarding smart meter data disclosures.
James:
I'll second that, Jason.
Board Voting All Speak:
Thanks, Jim. Having a second. We'll move to vote. Jim, Approve. Tera. I. Jana. Approve. And I approve as well. The motion passes.
Describer:
On screen. EASEMENT AGREEMENT
THIS EASEMENT AGREEMENT (this “Easement Agreement”) is made and entered as of the ___ day of _______________, 2026, by and between the CITY OF CASTLE PINES, a Colorado home rule municipal corporation (“Grantor”), whose address is 7437 Village Square Drive, Ste. 200, Castle Pines, CO 80108, and the CASTLE PINES NORTH METROPOLITAN DISTRICT, a quasi-municipal corporation and political subdivision of the State of Colorado (the “District”), whose address is 7404 Yorkshire Drive, Castle Pines, CO 80108. Grantor and the District may be referred to individually as a “Party” and collectively as the “Parties.”
RECITALS
WHEREAS, Grantor owns certain real property located in Douglas County, Colorado, more particularly described as Tract B-1, Lagae Ranch Filing 1, 1st Amendment, County of Douglas, State of Colorado (the “Property”), as shown on the plat thereof recorded at Reception No. 2017072361 in the office of the Clerk and Recorder of Douglas County, Colorado; and
WHEREAS, District intends to construct and install, or to cause the construction and installation of, a sewer main and related appurtenances and infrastructure to be owned, operated, maintained, repaired, and replaced by the District, as more particularly shown on the plans described in Exhibit B attached hereto and incorporated herein by this reference (collectively, hereafter referred to as the "Improvements"), within a certain portion of the Property, as more particularly described and depicted in Exhibit A attached hereto and incorporated herein by this reference (the "Easement Area"); and
WHEREAS, Grantor is willing to grant a nonexclusive 50-foot wide easement to the District in the Easement Area solely for the aforesaid purposes, subject to the terms and provisions set forth in this Easement Agreement.
NOW, THEREFORE, for the consideration of Ten Dollars ($10.00), the receipt and sufficiency of which are acknowledged, and for the mutual covenants contained herein, Grantor grants to the District, and the District accepts, the easement rights described below.
Paul:
Okay. Thank you Board. And that brings us to the easement agreement. So just to take a step back here, this agreement won't be to use the back. The foundry church, is developing a new, church property in the Lagae and need sanitary sewer service from the district to connect its property to the existing district sewer main, the foundry.
Describer:
On screen. CPNMD Live Map
Nathan navigates the map to help illustrate as Paul speaks about certain places where the easement will cover.
Paul:
Thank you Nathan. The foundry must install a new eight inch sewer main that crosses a parcel of land that is owned by the city of Castle Pines. So because the sewer line will run through city owned land, an offset easement across the city's property is required. That's what you are looking at here? I was given this easement.
It looked pretty good. You can just on on first pass, but I did add some protections to the district, all of which were accepted by the city. So I added some rights for the construction, installation, the pipeline, the city to just inadvertently left it out. I narrowed some of the city's reserved rights and then allowed for encumbrances across the easement, which to me is antithetical to the purpose of an easement.
It extends a replacement window after removal. So I think they had a standard, 90 day removal. I extended that 365 days just to give the district a little more time to remove it if it ever needs to. And that's about it. The city accepted all of those, under the delegation resolution. The board must approve all transactions involving real estate.
So this is before you today, and I think he has any questions at this point. I'm happy to answer them.
Tera:
I think you covered it. I was gonna ask what the city attorney's office. You’ve obviously been in conversation with them, and they accepted all those. There were those changes.
Paul:
That's exactly right. Yep. They were happy with all the changes, accepted them. And and you know, I was happy with the original agreement too. And then they accept my changes. So it was a it was very it was an easy back and forth.
They were easy to work with. And the terms are, you know, they I think the terms are great. So yeah, this was an easy one for me.
So, the board could entertain a motion to, execute the easement agreement.
Tera:
So moved.
Board Voting All Speak:
I'll second that. So, having a second. We'll move to vote. Jim.
James:
Can we back up a second? I almost hate to ask. So is that possible? Sure. This being a new user, new hookup to our system.
Yes. All right. Did. But our exposure as far as our. And again, I'm only asking this and I'm on the protection standpoint where we we talked about. And then maybe because it's a church and not a development but as far as renewable water requirements and things like that, what's our exposure there.
Nathan:
So they are up there. So they're in there within our existing boundaries.
So they're not, required to meet that renewable water. They're inside of our service area. And so that requirement doesn't apply. okay. You know, it's the church. It's not going to be a huge water user, but we've we've accounted for it. Kennedy Jenks looks at all their, proposed water side or proposed water use that goes in their tap sizing calculations to make sure we get the right impact fee.
James:
One more question. So this can be used as a lever against us.
Paul:
Oh no. No okay. So the you right, the resolution, regarding the renewable water requirement was, was in regards to the inclusion of new properties. So if any new properties seek to be included within the district, they have to demonstrate that all of their water does come from a renewable water source.
But this is a different situation if you're providing service to properties that are already within the district service area. That's it's just not covered by their resolution.
James:
So and then I'm good. I'm going to approve that. I just wanted to ask the question. So thank you Paul. Thank you. Thank you.
Paul:
Happy to help
Board Voting All Speak:
Okay. Jana. Approve. I approve as well.
Jason:
The motion passes. Paul.
Paul:
Okay. Thank you everyone. And that brings us to the end of legal.
Jason:
Thank you Paul. All right. We'll go ahead and close out of item number seven. And we'll move to item number eight. The district manager report with Nathan. Nathan.
Nathan:
Good evening everybody. Anybody have any questions about the, overall report before I jump into the, items I have on the agenda?
Jim, this is the page 85.
Jason:
I'm good. Thank you.
Describer:
On screen. Memorandum
From: Nathan J. Travis
To: CPNMD Board of Directors Date: 05/26/26
Re: District Manager’s Report
AGENDA ITEMS
South Tank Rehab Capital Project (Agenda Item A)
• South Tank Rehabilitation – Capital Project: CPNMD received only two proposals, they will be evaluated by the selection committee, and a recommendation will be made to select the contractor at the June board meeting.
Nathan:
All right, y'all kind of roll through these, relatively quickly. Feel free to stop me if you have any questions. So first item I just wanted to briefly touch on is the south tank rehab capital project. We had a meeting on that I think, earlier today, to kind of do our first review of the proposals that we received for the pre-construction services.
It doesn't look like it's going to be that complicated of a process. We had 8 plan holders, two separate companies submitted proposals. They are, Rene helped me a treatment. I could never remember the name of this company, drives me nuts. Structural? Structural, structural And, Myers, and sons, who's already doing some work with us.
So we'll, kind of finish that process, and then we'll bring a recommendation to the board, for approval at the most likely the June board meeting is what we were talking about earlier today. Project will be set to kick off construction October, November. Somewhere in there. And then, because of the location, this is going to be a little bit of, it's right next to the golf course.
It's going to be a little bit of a prolonged project. Will probably be in the early 2028 before we finish the second tank, but we'll get one of them done this year. So more to come on that.
Describer:
On screen. Memorandum
From: Nathan J. Travis
To: CPNMD Board of Directors Date: 05/26/26
Re: District Manager’s Report
AGENDA ITEMS
Interconnect Pump Station- Surge System Modifications (Agenda Item B)
• We are soliciting pricing from multiple vendors and anticipate making a recommendation to the board for approval the June board meeting.
Nathan:
Interconnect pump station surge modification system. We sent out pricing, to multiple vendors. So far, I've received, pricing from one of them.
I expect to see a few more come across. We give them a deadline of early June. So again, I'll, I'll have that, to the board at the end of June, for approval. Depending on kind of where the final price outlay or those final prices come in, we it'll depend on where it lands in the financial controls measure. But that is, that is moving forward with the objective of, completely getting that done this summer.
With the project deadline of October 1st. We have done a little bit of pre picture pre procurement on that. So that will show up in the next financial report, we spent $25,000 on a PRV valve. Just had a a really long lead time. And so that'll just make sure that we're able to hit that October 1st deadline.
Describer:
On screen. Memorandum
From: Nathan J. Travis
To: CPNMD Board of Directors Date: 05/26/26
Re: District Manager’s Report
AGENDA ITEMS
Conservation discussion, potential collaboration opportunity with CPNII HOA (Agenda Item C)
• CPN II HOA has asked if we would be interested in collaborating with them to install some areas of Tahoma 31 grass that would be available for use as a community demonstration area, I would like to discuss this opportunity with the Board.
Nathan:
And the last thing I wanted to briefly touch on and kind of get a feel for the board spots, we had, Castle Pines North two homeowners association approached us, and asked if we would be interested in partnering with them to do a demonstration installation for low water use turf. So the conservation program that we just approved allows for installations of Tahoma 31 or dog Tuft Grass, TOG dog Tuft Grass.
And so I just kind of wanted to get a feel for the boards. Oh, interested in further pursuing that or not. So I did tell them that it would need to be a space that is readily and publicly accessible, that anybody in the community would be open to. We'd have to hammer out who is exactly paying for what.
You know, make sure that there's a firm agreement in place that covers, you know, future maintenance and future use, some level of requirement that forces them to keep it nicer to a certain standard if it's going to be a demonstration garden. This conversation did spur when Rene and I were talking about it. Rene actually had the idea to, which I also like, which was to do maybe a similar demonstration installation, but working with the local school.
So Buffalo Ridge, elementary specifically is actually getting ready to do a, like a kind of like a greenhouse or some sort of outdoor.
Rene:
They are doing an Outdoor classroom.
Nathan:
Outdoor classroom. Yeah. And so we thought that might be a great opportunity to partner with them. And so that's what Rene was going to look at, setting a meeting with, their principal in the next few weeks.
But really just wanted to throw that out there and see what everybody's kind of initial thoughts were. If it's something that you wanted us to pursue a little bit more, I could bring more data together and kind of be a kind of a formal proposal in place. But I wanted to kind of, you know, test the waters before I put too much effort into it.
Tera:
I'm interested. I appreciate them bringing that forward. I know Buffalo Ridge already had a garden. So I think that's a great thing. But yeah, if you could find out kind of all those details that you were talking about and also like promotion, what that would look like, what they're looking like for a promotion, if there's going to be a sign there, and if so obviously has to be compliant with the city's sign code.
But, I would be interested enough to hear all those details. Like we mentioned.
James:
And I second that. It'd be cool if you could do both grasses side by side, and, I would love to see time lapse on it because that would make said the dog Tough stuff. I think it's just very interesting that I don't think people understand dog grass and how it behaves early spring versus summer and fall. But, it'd be nice to have a picture a day or once a week or something.
Jason:
What kind of investment would this be? Nathan?
Nathan:
Kind of open to, open to discussion. Really. It depends on, you know, how big of an area we decide to do. I did let them know that this would likely be something that we would want to get in place if the board wanted to move forward, that, you know, we'd really want to take some time, get some designs in place, and actually look at doing the install next year.
But, I can I can get some more, just like installation pricing. Reach out to a couple vendors, figure out what that would look like. I need to have some deeper conversations with the HOA to kind of get a feel for what their pricing, would look like, and then we can kind of figure out what that budget impact might potentially be.
James:
And wiggle your mouse if you wouldn't mind.
Like where are we talking to, actually?
Nathan:
So this is the HOA, CPA and two HOA pool and clubhouse. So, they had this we've talked about putting it kind of back in here. They've got kind of like an area where they do like summer activities. Right now this is all bluegrass. One of my concerns off the top with that is it's fairly low visibility and doesn't have like, great access.
So we need to figure out, you know, how to get people there and make sure they see it or even, you know, just these areas directly around the parking lot, kind of around the, the club entrance. Advantage this is we'd be installing it in an area that's, like, frequently used. So you'd have an area where people are actually, like, interacting with it and walking around with it.
The advantages to being directly around the parking lot would just be publicly public. It's has accessibility and visibility. So, but this is kind of the parcel or the area that we've been discussing with them.
James:
In that area adjacent to the pool in the cement there is, roughly how big is that? Like a quarter acre or something?
Half acre right there. I mean, and just. Oh you're going to measure it.
Nathan:
Yeah. So just really. Yeah. For kind of a quick side reference, we can kind of break this out and. Yeah. So 10,000ft². Quarter acre. Yeah. Yeah. Okay. I think I can hear. Man you're good.
James
I went to engineering school for a long time.
I know a couple different ones. Even though I'm not a civil engineer. Jana should have been all over that one.
Jana:
Oh. But, But, hey, I do totally agree with Jim. I would love to see both grasses side by side. I would love to be able to kind of get more. I love the idea of demonstration gardens, get more information. I think this is fantastic. It excites me.
James:
Yeah, I think it and it's something even if people don't have access to it, they I mean, you can kind of maybe you can talk to them and say maybe people you could put a sign up and they can walk across from Monarch or walk up from Bergano and, you know, but even if they can, you can always just publicly put it on our website. And just
Show how the grass is do for equal watering, equal sunshine, that kind of thing. And, you know, a picture a week or something like that, you know, put it on a light pole or a building or something, you know, nothing crazy, just, you know, wise camera or, you know, something like that.
Nathan:
Yeah. Let's go. So sorry. Go ahead.
James:
No, no, you go ahead. Sorry.
Nathan:
Yeah. So one of the other things that we talked about is with that side comparison, Rene and I, we're kind of kicking around too. If we've got a large enough area to leave an area Bluegrass. Have an area, dog turf. Have an area Tahoma 31 and then actually sub meter those individual zones so that we have an actual like an active usage tracking to so that we can physically see what the usage differential...
Jana:
I love that!
James:
Yeah. And I think that that goes a long way to helping people to educate and help them decide if they want to do this in the future. I think it's awesome. Great idea.
Nathan:
Right. Oh, I guess more to come on that then. And that is all I had for my part tonight. unless anybody has not to get too far ahead.
But unless there are any specific questions about the operations or engineering reports on the next agenda item.
Jason:
Okay. We'll go ahead and close out the, district manager report and, open up the operations and engineering report seem to be having questions on these.
Okay. Hearing none, we can go ahead and close out item nine, the operations and engineering report. And, we can open up our number ten. Director's Matters. Any of the directors have anything they need to discuss?
James:
Just a quick comment. And I'll in. I'll do it offline, but, there's opportunities. And it was it probably made more sense when we owned, you know, a bunch of the parks and stuff, but I'm chair on CFD for Douglas County, and there's a lot of, potential. I probably talk to the city as well, but there's a tremendous quantity of artworks that are, you know, we can place throughout the district.
I think that might be attractive. They get moved around between Rockford Park and Highlands Ranch and Lone Tree and things like that. And Castle Pines literally has no participation. So I might just, you know, if if you guys are okay with it on the board, I can, maybe bring that issue up with the town council and Nathan and maybe have RFCFD.
Person and myself make a presentation on getting some of these artworks placed around town. And some places in the district, like some of these parks that people come to visit quite often. And some of the artworks are phenomenal. And, I can I can do a quick presentation at next meeting just to kind of show you what I'm talking about.
That's it. Thanks.
Jason:
Okay. Jim. Yeah. The. Since we gave over the parks, I don't know how much we would actually have as a footprint to use that item, but.
Tera:
It's not in our purview so.
Jana:
So I wanna I want to comment to Jim's point lift stations. That's a place you can have them. Look, I mean, paint a mural on a list station.
Describer:
Jana experiencing technical difficulties, her audio dropping in and out.
Jana:
Yeah. Or we took would had graffiti like professional graffiti artists mural these buildings. And it's beautiful. Just a thought.
James:
Yeah, there's actually quite a few, the, the county supports in exactly that. So I'll bring that up at our next meeting and see if we can get any artists interested to see if they want to kind of participate in that.
But I obviously have to run it by you guys and see if you're, you're you're okay with it, you know, have those conversations.
Tera:
Well, I again, I'm a little confused because I don't know what that has to do with this board because it sounds like that is something that you're taking from your SCFD board to the city.
James:
Well, again, it's it's any, anything public that, you know, I agree with the larger artworks should be more of a city parks thing.
But, Janet brought up a good point. I hadn't even considered that these murals exist all over Douglas County, and, these people are available, so we might just have to pay for some paint or something like that.
Tera:
I think it would still have to fall within city code. Sure, sure, I guess so. I don't know.
James:
Don't be an art hater.
Just just kidding.
Tera:
I'm a realist.
Jason:
All right. Does anybody else have anything to say?
Hearing none. I'll go ahead and close out Item number ten, the directors matters, and move to item number 11. And adjourn the meeting.
All Speak:
Thank you everyone. Great meeting. See you guys. Bye bye. Bye.