Study/Work Session
August 17, 2026
Transcript
Describer:
I. Call Work Session to order
A.Roll Call
A work session is held for discussion and information only, so no official Board action is taken and a quorum is not required.
II. Finance Items
A. Review monthly claims for payments made from July 16, 2026 to August 12, 2026
CPNMD Board Work Session Claims Packet 08172026 (PDF, opens in new tab)
III. Legal Items
8.17.2026 Legal Status Report - CPNMD 4922-6939-3863 v.1 (PDF, opens in new tab)
A. Review July 20, 2026 Work Session Meeting Minutes
CPNMD Work Session Minutes 7.20.26 DRAFT 4917-2105-4407 v.1 (PDF, opens in new tab)
B. Review July 27, 2026 Board Meeting Minutes
CPNMD Board Meeting Minutes 7.27.26 DRAFT 4900-5395-0407 v.1 (PDF, opens in new tab)
IV. District Manager Items
A. Review and Discuss: Interconnect Pump Station Surge System Modifications Bid
CPNMD-CWSD Interconnect Pump Station Surge Modifications Bid Tab (Lump Sum) (PDF, opens in new tab)
CPNMD Pump Station Surge Modifications Award Recommendation Letter (PDF, opens in new tab)
V. Adjourn
Board President Jason Blankaert:
Good evening, and welcome to the Castle Pines North Metropolitan District board work session for August 17th, 2026. It was only 5:30 p.m.. We'll begin with a roll call.
Board Member Director James Mulvey:
Jim. Present. No conflicts.
Board Member Director Jana Krell:
Jana. Here.
Board Member Director Leah Enquist:
Leah. Present.
No conflicts.
Board Member Director Tera Radloff:
And Tera. Here.
Jason:
And I'm Jason. I'm present. No conflicts. We'll move on to item number two, the finance items.
Describer:
On screen.
TO: Board of Directors – Castle Pines North Metropolitan District
FROM: Eric Harris, Elevated Clarity (EC)
DATE: August 17, 2026
RE: Work Session Report – August 2026
Claims Submitted for Review
District Finance is submitting $1,369,183.53 in Payment Claims for review at the work session, consisting of $1,175,724.30
in checks and $193,459.23 in electronic payments.
All the invoices included in this month’s Payment Claims Presented for Review were reviewed and evaluated for compliance
with the Financial Controls Policy/Matrix.
- Notable payment claims related to capital projects include the following:
- T Lowell Construction Inc – Pay App #6 – Lift Station Upgrades Project: $438,024.57
Financial Overview
A comprehensive financial report will be provided at the July Board Meeting, which will include an analysis of financial
activity through June 30, 2026. These quarterly financial reports will also contain annual projections for revenues and
expenditures and will be the basis for initiating the 2027 preliminary budget process.
Anticipated Upcoming Schedule (subject to change)
August 24, 2026 – Monthly Board Meeting
September 21, 2026 – Monthly Board Meeting
September 28, 2026 – Monthly Board Meeting
Jason:
We will review monthly claims for payments made from July 16th, 2026 to August 12th, 2026.
Financial Director Eric Harris:
Good evening. Board. On page two you have our claims report. This is in addition, obviously to our finance report, which will come next week with the board meeting.
Describer:
On screen. Castle Pines North Metropolitan District Payment Claims
For the Period July 16, 2025 - August 12, 2026
PRESENTED FOR REVIEW
CHECKS - 29771 through 29812 (Refer to Check Detail Report)
Eric:
Paper checks presented for review. It's $1,175,724.30. Electronic payments presented as $193,459.23. In the total is to some of those two, which is $1,369,083.53. Moving on to the next page, just a couple of highlights right now. We of course have the community construction, which is working on phase one of the lift station project. This is pay application six. Important note $438,024.57.
Describer:
On screen Check Detail Report
July 16, 2026 - August 12, 2026
Eric:
And also, we're kind of moving towards the end of the filter bed project. As currently stated right here, we have a check for $86,184.54. That's item number 48 listed on the report that was issued. We just got the latest update in the last couple of days from a Kennedy Jenks. The total contract with the change order was $3,731,000 and change on hearing.
We're closer to the end on that. We have with the most recent invoice approximately, let me say retained. We have a retain-age due of excuse me, approximately $200,000 of retain-age on the contract right now. So we're nearing the end of the filter bed project. So you'll start seeing those that contract tailing out. And so we'll be updating our projections for next week on that.
You have there any questions related to this. We have worked with staff to kind of really develop move everything over to electronic payments that are more firm commitments. You know, everything like payroll, such as our utility payments, some of our monthly processing for the payroll system, fees that go to gusto to process, like those are all coming out electronically.
So we have a good system. We've also implemented some efficiencies within the system so that we have reoccurring entries that Susan's doing on site for that as well. So it's kind of creating more efficiencies in the closing process on a monthly basis. So that's what's going on behind the scenes. Any any questions any questions related to .... claims and ......
Tera:
Oh but it looks like.
Our bank and credit card fees have gone done. Is that just like my imagination?
Eric:
They have gone down a little bit, I didn't that is a good point. We have not rebuilt with Inbank yet and so we are still in the process of that, all things considered. We have we'll get that implemented by the end of the year. Nice. Good. Wonderful.
A couple other projects which I can create a report on a little bit more next week. We are fully transitioned over to UB4 online. There's no customer impact on the front for the customer. We reoriented the payment portal so as people make payments, they those will be coming over to the new payment system right now. So we made that transition so huge.
Hats off to Susan here in office Susan Nagel. She did a lot of testing related to that. We're also seeing a lot of efficiencies related to that. What I can boil this down to from a high level standpoint is the prior platform that was hosted, which was CBSW is very rigid in nature, and this is more dynamic. So we can actually it's obviously cloud based that we talked about many times before, but we can make a lot quicker adjustments than the data makes a lot more sense to the to the layman, but just an elementary user, which is great.
So also we can get more readily access to it on our side as well, which would be good. We have very limited access on our side, so we have the UB4 implementation. We're starting to do working through our budget calendar right now. We're working with staff over the next by the end of August to get that implemented, and they will roll that out as well.
So we'll have a draft budget next month as well. And then we also completed the first phase of our kind of file management process. I haven't updated you on this, but we did that. We completed this about a month ago of mapping all of our records with the record retention policy as well. We worked with our Nathan, worked with Greystone, and we have a proposal that will bring forward to the board probably next month related to potentially moving to SharePoint for.
And so of course, we'd love some input and expertise related to that, but more to come. We're just filtering through that proposal right now and everything related to it. So essentially what that would leave is just what is maintained on the district servers at that point. It's just the GIS system. Is that correct?
District Manager Nathan Travis:
The backup for one of the backups for the GIS system.
Eric:
And that's it.
Eric:
Yep. Okay. So that's kind of where the land as far as class software. We have been working internally with Bartel and Wells to develop a new proposed rate structure to bring forward. So we'll bring that forward with you as well as and we'll keep revisiting that as well in the form of conservation. And so the basis for that essentially is to remain net revenue neutral despite whatever, you know.
So we're looking at what that looks like.
Nathan:
We will have. Yeah. We will have a local backup for our server here too. That's one of the EPA requirements.
Jason:
Is it?
Nathan:
Yeah three three minimum of three backups, two different media. And since the other three backups we have in place are all various forms of virtual, they want one localized hard backup.
Eric:
And Greystone is doing their IT audit right now as well.
Or they're going through they do an annual kind of compliance for their clients as well. So Nathan’s been coordinating with them on that.
James:
It's hard media or just..?
Nathan:
They don't specify. It's pretty. The guideline is just three separate backups, two different types of media.
Deputy District Manager Rene Santin:
In different locations.
Nathan:
In different locations.
Yeah.
Eric:
One final project we're working on right now is working with Rene and Nathan on the conservation program and looking at the rates that we have in place for reimbursement, as well as with the funding associated with that is. So Nathan has done a good tracking through it throughout the years, and we had an aggregate list of how that has been set, but we want to tie that through to usage and rates as well.
So that's what we're kind of looking at right now is can we tie specifically to some sort of water savings, if that makes sense? Because there's one pending proposal, which is pretty large that we're looking at, which we'll probably bring to the board at some point. Nathan. So looking at what the cost and how that program would be managed right now, essentially what that has been managed to date is just budget appropriations and resets every year.
We want to tie that to a rolling fund balance so that we have.
We essentially have that cash banked and depending on what that program availability is, and then roll that into our rate structure as well. So there's a couple of things we're working through on that side with the rate program. But with that more we'll have more updates and meetings related to that. But going back to the claims report, are there any other questions?
Jason:
Going back to Greystone?
Greystone, we went through that EPA cybersecurity briefing. It wasn't really even the nod. Right. But, you know, we were deficient in a lot of character and a lot of areas. So hopefully Greystone will start addressing those.
Nathan:
Yeah. And they they've addressed a lot of them. I'll get a I'll get an update from here. They've got a lot of them buttoned up.
And then Colorado Networks is the subcontractor that we've been using for the SCADA integration side. All of the network security firewall stuff is up. The individualized operator user implementation is done. So rather than rather than have one login at all of our water operations facilities, each operator has their own now, which allows us to partition what they're allowed to do, what they can change the system, and then we can track what each individual user login is done.
So they're they're also up to speed. We've updated our risk and resiliency assessment that's been submitted to CDPHE or I'm sorry to the EPA. And then all of that's getting folded into kind of the broader security access control program that we're also rolling on.
Eric:
And more broadly, what we started as we identified that the files were just very have been rolled forward since the 90s, very they're all kind of all over the place.
And so we wanted to get organized. So we have kind of function areas that map to that and then which will be separate record libraries based on permissions. And then from there drills down on the needs of staff. That makes sense. So we'll we'll reviewing their proposal and then including ongoing administrative support that we would need associated with SharePoint as well.
Jason:
Any other questions.
James:
Who's the super users like you two guys?
Nathan:
Super users for like the Greystone network side or just Greystone?
Rene:
Yeah, we don't have a ticket to do anything on my computer.
James:
Oh, okay. That's what it should do. Yeah, yeah, it's more about record side and that kind of thing in access.
Nathan:
Yeah, yeah. Access. Yeah. For access, it'll be Rene and I, with the exception of human resources, that will just be me.
Okay.
Jason:
Okay, good. Any other questions? Leah?
Eric:
Great. Thank you.
Jason:
Thank you. We'll go ahead and close that. Item number two, the finance items. And we'll move on to item three legal items. Looks like we got a few things here Paul.
Legal Counsel Paul Polito, Esq.:
That we do. Good afternoon everyone. Nothing. Nothing new today. Just some updates on things that are already going on. A few being interconnect pump station surge modifications.
Describer:
On screen. MEMORANDUM
TO: Castle Pines North Metropolitan District
FROM: Seter, Vander Wall & Mielke, P.C.; Paul Polito, Esq.
DATE: August 14, 2026
RE: Legal Status Report for the August 17, 2026 Board Meeting
MATTERS IN PROGRESS
MATTER:
INTERCONNECT PUMP STATION SURGE MODIFICATIONS – CONSTRUCTION CONTRACT
Status:
Counsel reviewed and revised the construction contract documents for the District’s Interconnect Pump Station Surge Modifications project, prepared by the District’s project engineer, Level Engineering & Architecture. Counsel reviewed the form of
construction agreement together with the instructions to bidders, general and supplementary conditions, and related bid forms, and provided comments to conform the package to the District’s standard bidding documents and applicable law.
Counsel’s principal comments addressed the insurance and indemnity
requirements, including extending the waiver of subrogation to the workers’ compensation coverage, requiring additional insured endorsements covering both ongoing and completed operations on a primary and non-contributory basis, and requiring delivery of certificates and endorsements before the Notice to Proceed
together with thirty days’ advance notice of any cancellation or material change in coverage.
Counsel returned the revised agreement to the project engineer, who has compiled the issued-for-bid contract package for release to prospective bidders. Counsel was then presented the finalized construction contract on August 14, 2026, and returned final comments the same day. Once the District completes the bidding process and
selects a contractor, the construction contract will come before the Board for review and award.
Paul:
I've made some amendments that that I've laid out within the progress report. If anybody has any questions on that, happy to answer it. It is on the agenda under Nathan's report today. So we will get a little bit more into the into the weeds on it. As far as the hidden point Metro district conclusion. Everything's progressing along just fine.
We're still on track for November 3rd. Everything that seems to be filed has been at this point. So we're looking good. And again, it will be a mail ballot election. So it's going to look out for for an individual mail packet.
Describer:
On screen. Castle Pines North Metropolitan District Legal Status Report
August 17, 2026 Study Session
Page 3 of 5
MATTER:
SERVICE PLAN AMENDMENT
Status:
The intergovernmental agreements with the City of Castle Pines require CPNMD to amend its Service Plan to eliminate Park and Recreation and Stormwater services. The board approved the second amendment at its February 23, 2026 board meeting. The amendment specifically removes the District’s authority to provide, own, or maintain parks, trails, open space, and stormwater systems to reflect the property transfers to the City of Castle Pines. Additionally, it establishes a maximum operations mill levy cap of 7 mills, as required in the IGA regarding Park and Recreation services. Staff met with the Douglas County Planning Department on March 18, 2026, for a pre-application meeting to discuss the logistics and procedure of the amendment filing. The County provided the results of a referral comment review on July 22, 2026. No referral agencies objected to the service plan amendment. Counsel submitted a final, formal service plan application package to the County on August 14, 2026. The County will be sending a final schedule of hearings to confirm the service plan amendment, which shall be shared with the board when available.
Action:
Nothing required at this time.
Paul:
Service plan amendment. The county asked for a formal package as a couple weeks ago. We put that together, sent that over to them last week.
My anticipation is that what we having some hearings with the county in September to October and finalizing the service plan around end of October, maybe into November, depends on the county schedule, but on track there. So we're looking good. I went back and forth with with Kim Seter on some items to the Amended and Restated Community Center lease, but I'll be sending that to the city with by within the next couple of days at the latest.
So you may have an update on that. You may have they may have a lease for approval on Monday, but it depends on how fast we can try to get that done for you. Other than that, has any questions about anything the legal status report? Happy to answer them, but otherwise is a pretty light update today.
Jason:
All right.
Any questions?
James:
Just real quick. We kind of talked about a couple of things last time we got together about this facility. And I guess the lease and certain areas that we had to include in addition related to mostly IT stuff where services come in. What's the status and all that stuff.
Describer:
On screen. MATTER: AMENDED AND RESTATED COMMUNITY CENTER LEASE – IGA
WITH THE CITY OF CASTLE PINES
Status:
Pursuant to the Parks, Open Space and Recreational Facilities IGA, the District conveyed the Community Center Property at 7404 Yorkshire Drive to the City of Castle Pines, and the Parties concurrently entered into an Intergovernmental Agreement for the Lease of Real Property dated July 1, 2025, providing for the District’s continued use of the building for its administrative and operational functions. The City has since completed substantial renovations to the Community
Center Property, and the Parties’ use of the building has changed. District staff and counsel met on July 14, 2026 to identify the revisions necessary to reflect current conditions, and counsel has prepared an Amended and Restated Intergovernmental Agreement for the Lease of Real Property.
The restated Lease revises the description of the leased space. The Leased Premises are limited to the administrative office portion on the main level and a designated storage area within the basement, in each of which the District holds exclusive use and possession. The restrooms, kitchen, IT room, community center conference room, community room, and parking areas are defined separately as “Use Areas,” in which the District holds rights of use only and no leasehold interest. The District’s “triple net” obligations and maintenance responsibilities are correspondingly limited to the Leased Premises and to the District’s use of the Use Areas, and do not extend to the community room, auditorium, or other renovated portions of the building. Where a building system serves both the Leased Premises and other portions of the property, the cost of repair, refurbishment, or replacement is allocated between the Parties in proportion to square footage.
The restated Lease further confirms that the City is solely responsible for capital improvements to, and capital reserves for, the Community Center Property; shifts casualty and property insurance for the building and the City’s improvements to the City, with the District insuring its own contents, equipment, and District-installed
improvements; expressly excludes the City’s telecommunications assets and building rental activities, and any revenues from either, from the District’s leasehold; and updates the meeting provisions, including moving study sessions to the Monday preceding the fourth Monday of each month and requiring notice to the City Clerk of any change to the recurring meeting schedule.
Action:
None required at this meeting. The Amended and Restated Lease Agreement will be presented for the Board’s consideration and approval at a future meeting following the City’s review.
Paul:
Yeah. So we've included that. The idea was we wanted to partition this is what the use areas.
Yeah. So the idea is that the district will lease out the space that it occupies, and I'm thinking that will be it, but it depends on negotiations with the city. But yeah, it's on my radar. Will actually be addressing it with that.
James:
Yeah. All right. Yeah. Just just wondering the mechanics of how you isolate certain areas because we just got talking about security stuff and people are kind of going in and out of areas.
How do we control some of that?
Paul:
And I think the idea is that we're actually going to lock off a part of the, of the basement, right. Is that still the plan?
Nathan:
Yeah, yeah. For for our secure records, the bigger question is kind of like all of our server and everything is locked in a separate room. Well, it's exposed, and we need to address from an IT point is just like the main entry point for the internet where the Wi-Fi router and stuff is.
So that's all down there, fairly exposed. So that's one thing we'll have to look at. Security on on cordoned off. There's a couple of things that are in my court on that. Mostly some exhibits about specific space in the basement. But I'll get those to Paul.
Tera:
A question on that. Since you're looking at security down here, maybe a cage or whatever.
Whatever happened to the security for our kind of security proposal or something for our water treatment plant? And that part of that same work puzzle where we end up.
Nathan:
We can. Yeah. So that's board approved. They're rolling through.
Yeah. That's Katie. Let me get a more substantial update for you. I don't want to shoot from the hip too much, but I'll get an update for next week. But they're moving forward on it. The entry point for the router stuff wasn't included in that, but we we can add it. It wouldn't be a difficult add.
Jason:
All right. Any other questions for legal. Hearing
None. We'll go ahead and close out item three. And we'll open item for District Manager items. Nathan.
Nathan:
All right. Tonight all I've got for you guys is the.
Describer:
On screen. CASTLE PINES NORTH METROPOLITAN DISTRICT
CPNMD-CWSD INTERCONNECT PUMP STATION SURGE MODIFICATIONS
BID TABULATION - LUMP SUM BID PRICE
SCHLEICHER CONSTRUCTION, LLC Bid Price $149,636.00
VELOCITY CONSTRUCTORS, INC. Bid Price $223,821.00
MYERS & SONS CONSTRUCTION, LLC Bid Price $256,500.00
BARNARD STRUCTURES, INC Bid Price $324,806.05
GLACIER CONSTRUCTION CO., INC. Bid Price $523,035.00
Nathan:
Bid tabulation for the interconnect pump station surge modification system. We opened bids last week, maybe the week before, somewhere in there. But these are the respondents that we had for a project that size. It was really good to get five of them. These upper ones were all kind of in line with what we had seen when we had like directly solicited pricing.
So it was really good to see. I'm not even sure I pronounce this like Schleicher Construction. Come in at 149, talked to level engineering. They also included a bid. I haven't ever worked with them before, but it seems like these kind of like sub quarter million projects are their bread and butter. That's just kind of where they live and hang out relatively low overhead. Level has.
Work with on them on a number of different projects, had nothing but good experiences with them. So I'll bring this back to the board.
Tera:
So they have other references other than Level.
Nathan:
Yeah, yeah. And so I can bring this back to I'll bring this back to the board on Monday once we have Paul's contract language modified, and we'll seek approval on it and get those get those guys off and rolling.
Jason:
It's not concerning so much cheaper.
Nathan:
It's just because, yeah, they're just the other companies I talked to. James is the guy with level that we're working with. It really just comes down to like overhead. Like there's five employees. They do just this size internal mechanical piping. It's just kind of where they've where they've settled in. Velocity, Myers, Barnard, Glacier.
These are all like just much larger entities.
Jana:
And you're satisfied with 150? Yep. So I mean it's close to what you guys had thought. So I realize the others are outliers, but.
Tera:
I think just wants to break up with us.
Jana:
Glacier doesn't want the job, but I think my mind immediately goes to the middle of like, you know, when you start to see the redundant numbers.
And so it feels like 150 is was low for the cost estimate. But it takes that if they can do it.
Tera:
Let's ....price. They can't do that.
Eric:
Are we ever going to bond on this project.
Nathan:
Yes. Yeah yeah yeah I think there's also.
We put some minor liquidated damages in there too.
Eric:
$500 a day. Yeah, yeah.
James:
I mean something that probably just 100 grand a day.
Nathan:
So that's all I've got on the agenda. I will have a few different updates for the board on Monday.
They'll have a date on some, well, issues that we've got going on. And then we're looking at moving the grand opening of the water treatment plant, probably to early spring because of just some conditions that we've got to take care of. We found a drain line that needs to be repaired and it's under a structural floor. So it's going to take a little bit more than just roto rotter to get that one fixed.
So I'll have more updates for the board on both of those Monday. They're going to there's like three of them. So it's a drain. One is just a floor drain that are chemical like monitoring equipment dumps their unused reagent into. But then there's the mixed tank that has a drain that ties into that, that's valved off. And then once you get under that floor, there's all kinds of stuff in there, but it's all old ductal.
It looks like one of the drain that stopped working. We went to go like camera and Roto-Rooter it out. It looks like it might have collapsed. So we also need to get in there to make sure we're not leaking water into the foundation of the plant, so. But I'll have we just met with the structural engineer for, for 430 today.
So I don't have a ton of information yet, but I'll have more for the board meeting.
Jana:
How do you guys handle contingency or under contract revisions? Because I'm looking at big tab. Do you not have any dollars hidden.
Nathan:
On this one. I guess I actually get not on this one. Okay.
Jana:
Do you normally do?
Nathan:
Yeah, we usually add around 10% in which we can roll that into if we want to.
Jana:
Just curious.
Jason:
We've had three line breaks in the last couple of weeks.
Jana
Are we going to talk about that?
Nathan:
I can yeah I'm happy to bring those up. So winter. Yeah. So the one for the one for today winter Berry.
Got better. So it was a call that we got over the weekend for a fairly significant.
Jana:
Can I bother you to show a map. Yeah absolutely. And point for me. Absolutely.
Nathan:
I can't figure out how to get out of on board. And it's full screen mode right there. Oh there it is. Cool.
Describer:
On screen. Nathan shows maps on screen. Nathan describes the locations.
Nathan:
Okay. So the line break that I had sent the email about this morning is one that we got called in over the weekend. It wasn't severe enough that we wanted to scramble after hours to is all of that stuff. Let me see if I can bring it myself here, right here. So when I sent the email this morning to notify everybody what we were seeing out there, that we had light break even after from, I got there about 8:00 this morning, and even while I was on site, it was slowly getting better, meaning the less water was coming out of the ground.
So we think what it's like right here in between these two houses. So we think just with all of the heavy precipitation we got over the weekend, and it's actually a sump pump or something pushing out. So rather than it's not a, it's not a leak. So we're still going to double check. We're going to pothole it tomorrow. Just put like a, you know, it’s a whole in the ground and see if we see any water moving.
And then we're going to run the detection past it. But it looks like it was a stormwater issue. And we should know morning know for sure in a couple of days. But so we didn't actually excavate anything Okay.
James:
What did it actually look like just water bubbling up.
Nathan:
Yeah. There's something it was coming out of like these cracks in the road right here.
Okay. This is where I was pushing up. We've we don't really have, we've never had really a history of live breaks in this neighborhood. I've prepared a couple of valves, the pipes in good condition. It's wrapped appropriately. If it's anything, it would be a service line to this house. But like I said, it seems like it's getting better.
And that's not uncommon for heavy precipitation to use water pushing out of crack in the street.
Jana:
So on this one you said that four homes are out of service.
Nathan:
They would have been they never got shut off. So we knocked on the door and let them know that we weren't going to turn their water off.
Jana:
So we never they never even got shut off.
Yeah, okay. And then the anticipated 15,000 is not accurate either because we'll figure out what it is. Yeah. Yeah. Exactly. Is that okay. Other libraries. The other one.
Nathan:
Yeah. So the other two libraries are in the. Yeah. Kind of the area that we expect them. This is early filings installed in the late 80s. Neither one of the pipe pipes are wrapped.
This one was especially fun because Renee is right here. The mayor was the mayor was also inside of our shutdown area. No. So we had to basically go fire off at the same time. One of them was right here. It was corrosion break about three inch and three inch diameter hole. So that would put a lot of water out.
Pipe is in really, really rough shape, which is what we've come to expect in this neighborhood. The other one that happened basically simultaneously was right down the street, right in here between short and just coincidental. It's it happened right in line with we were doing the monarch valve replacements and tie ins. So we were opening closing a lot of valves up on these three intersections.
We were doing them incredibly slowly. But we think that more than likely we caused them. Yeah. We're just like on the edge when you've got like leaks that are that close to going at flow direction, change in a bike and pop them off. Got it. Do it like a minor pressure.
Jana:
So not just not coincidental. They were going to go with something was going to kick up.
Nathan:
So we're still working through our distribution system condition assessment. The bright news or the good news on that is actually when we expose. So we've done a few tie ins already over here. So we've completed a loop on the backside of Sherman right here that's in place. This pipe that they tied into was a fantastic shape properly wrapped Exeter.
This this was in great shape properly wrapped Norfolk was in great shape. Property properly wrapped in Sterling was in a really good shape. So we originally anticipated all of this whole area kind of right through here, all the way down to Turweston. All of that was we had kind of assumed that we're planning on being part of our ultimate pipe, like the more immediate pipe replacement, and it's just not going to need it.
So the pipe from there will be on the fairly normal replacement schedule sometime, like the next 70 years. So the actual the rest of the distribution condition assessment, we're expecting the results, at least the draft results beginning of October.
And so that'll include we're not pothole or checking the pipe condition in any of these filings. Just because we've seen it so many times. We already know that needs replaced. So we'll know that for sure. The areas that are in question, this is filing 21 to kind of encapsulate the school. We think it might actually be okay. So we're going to do a couple of potholes in here over the next few weeks.
We'll do a couple potholes in this little adjacent filing and then a few more throughout the district. So we'll have a much better feel for how that whole project is going.
Tera:
So the school, you mean Buffalo?
Nathan:
Yeah, Buffalo. Trail Ridge.
Tera:
And then when the pipe condition assessment or your that's getting done, it sounds like kind of in time you're working with Eric because then we'll have a placement or capital improvement plan to go in
Eric:
To try to budget those together, if that makes sense.
Nathan:
Yeah. And so we'll have a couple different options to a few different options to discuss with the board. And that comes in. Namely, do we want to throw this all into 1 or 2 giant projects and get it all done relatively quickly, or do we want to do do them over and smaller?
Tera:
But it sounds like the timeliness would be all part of our budget discussions.
Jana:
Yeah, okay. What do you mean, mirror? What was it?
Eric:
So what we.
In years past, what we did was because we did not have this condition assessment. It was looking at merely from a line replacement perspective like one point other than identified capital projects, there was like $1.5 million of available maintenance capital for things like this, like whatever comes up. And that's what we looked at for like ten years out related to the capital improvement plan from a rates perspective.
Okay. Now what we're going to be doing is we would be adopting a budget not only next year based upon more hard data on what we have right now, just not wasn't, I don't think does a lot of good information on it, but it's like on a on an engineering report. And then what we want to do is phase that in the next ten year plan related to those line replacements, if that makes sense.
It was easier. And this is probably the hardest thing for a water district. Identifying the distribution portions that you want to replace is obviously all underground. You could I you can understand the lift stations if we have to go get water rights. Those are single some purchases that could be done in a single year. Now it's like this is and then we'll be looking at decreasing the rate of repair and maintenance costs as a component, operations cost as well.
So then tailoring the rate structure related to that as well. So that's it's getting more facts if you will, related into our rate study.
Tera:
You guys get more sophisticated. Exactly. Instead of just it sounds like from being more reactionary, we're actually going to have a plan and we can.
Eric:
In tailoring the reserves to hear what is necessary to replace those. Right.
Jana:
I think it's great.
Nathan:
Yeah. Thank you. We're going to replace all of the pipe in there regardless just about or if we do it ten feet at a time or.
James:
Like a total is replace all that and that chunk.
Nathan:
If I had if I had to take a fairly inaccurate guess at it, the full pipe replacement programs, probably somewhere at 10 to 14.
James:
Okay. And from a replacement, I mean, kind of what we did right next door here.
Looking at fixing leaks as we go forward and what that cost us on a per year basis, and what makes most sense to kind of try to do a ton of it up front or, you know, very, you know, I guess what I'm asking is there's a, you know, there's a funding limitation, there's people that actually do the work limitation, basically what makes sense, you know, your guys mind of how to stage those kind of projects because it's pretty substantial.
Nathan:
Yeah. And that's one of the things that will come out of the report. The the advantage is the advantages of doing it is obviously you can spread the cost out over time. If you do it in 1 or 2 larger projects, there's a pretty large saving and mobilization fees because you're like paying on ones or twice and insulates you from inflation a little bit.
And then the bigger the project that you go, especially if we're looking at like a neighborhood replacement, the more the bigger contractors start to show up in reply. So you get better pricing just because you guys show up. And so all of that will be included in the distribution commission assessment pros and cons of those various approaches. Predicted costs.
Tera:
Looking forward to it.
Eric:
So ideally we're looking at estimated linear feet of replacement program based over the next several years, whatever that might be. And then we can play around with the numbers based upon what our cash balances or balances are.
Jason:
Any other questions for Nathan?
Jana:
Yeah, kind of related. But who does our inspections for the work we're doing right now? Who's who? Kennedy Jenks. It is. Yeah. They're the ones that are there. Like they're doing daily logs and stuff and.
Jason:
Any other questions? Kind of a short meeting. So I guess hearing none. We'll go ahead and close out. Item number.
Four and we'll move to item number five which are in the meeting. Thank you everyone.
Tera:
I mean, we have kind of ease back in this whole face to face.
Jason:
It seems like we had a couple long meetings there for a while.
James:
There's a lot going on.
Jason:
Yeah. Thanks, guys.