Castle Pines North Metropolitan District

Key discussion topics for the Regular Board Meeting included the presentation and consideration of the Kennedy Jenks proposal for engineering design services related to the Tank Rehabilitation Program for South Tanks #1 and #2. Other agenda items involved receiving a Communications Report from Sigler, a Finance Report overviewing budget performance and cash balances, and a Legal Counsel Status Report covering contract updates and the service plan amendment. The District Manager presented reports on operations, including updates on Well Failure, the Deputy District Manager hiring, Lift Station Renovation Program status, and a preliminary discussion on a proposed new water tank site near Monarch. Directors also raised operational questions regarding surge protection at Monarch and provided feedback on the OnBoard platform.

Key discussions included providing an overview and demonstration of the new OnBoard platform for digital navigation of meeting materials, which is expected to eliminate physical packet printing. In finance, monthly claims totaling $2,665,662.73 were reviewed, highlighting significant capital expenses for the lift station project and the Monarch project, as well as a higher-than-budgeted insurance premium payment. The Board also reviewed the updated 2026 Chart of Accounts, designed for cumulative cost tracking. Legal matters covered the ongoing drafting of the Amended Service Plan and confirmation that Layne agreed to cover the cost of replacing failed well shafts, potentially negating further manufacturer action. Under District Manager Items, the Board reviewed an expenditure request for a new access control system at the Water Treatment Plant and directed staff to obtain a formal scope of work for accurate pricing comparison. Finally, an update on Castle Pines Community Center renovations indicated that meetings will be held online during the 4 to 6 months of construction.

During the public comment period, a resident provided feedback on the proposed RubinBrown auditor contract, suggesting the removal of the indemnification clause and advising the District to develop standard contract forms. Key discussion points included financial reporting updates, noting that General Fund performance was near budget and Water Enterprise Fund revenues trended high due to increased water production. The Board approved the engagement letter for the 2025 audit with RubinBrown, contingent upon removing the indemnification clause. Legal counsel updated the Board on drafting the Amended and Restated Service Plan to eliminate Park and Recreation and Stormwater services, and the Board adopted the 2026 Annual Administrative Resolution, directing concurrent publication of legal notices. The District Manager reported on the completion of well re-installation (A-1, A-2, A-6), the hiring of Rene Santini as Deputy District Manager effective March 23, 2026, and the progress of the Lift Station Renovation Program. A preliminary overview of a potential new water tank site was discussed. The Board also requested an update on finding a sub-$100,000 solution for the surge protection system at the bottom of Monarch.

The Work Session agenda included several key items for review. Finance items involved reviewing monthly claims for payments made between January 14, 2026, and February 11, 2026, totaling $1,895,968.59. Legal items included reviewing the minutes from the January 19, 2026 Work Session and the January 26, 2026 Board Meeting, and discussing the CPNMD Service Plan Second Amendment, which proposes eliminating Park and Recreation and Stormwater services and sets a maximum operations mill levy cap of 7 mills. The Board also reviewed a new Standard Contract Form template designed to streamline independent contractor engagements. District Manager items covered the Gittlein Farm Lease and a review of the Draft Douglas County 2050 Water Plan.

The Castle Pines North Metropolitan District's Water and Wastewater Rate Study aims to develop a financial plan and cost-of-service rates that recover service costs, are fair and equitable to customers, are easy to understand, and support long-term operational and financial stability. The study outlines updated financial projections indicating the need for water and wastewater revenue increases. These increases are designed to fund rising operating costs, support necessary capital improvements, and maintain prudent financial reserves. Key recommendations include adopting proposed rate increases effective January 1, 2026, and conducting comprehensive reviews of revenue requirements and rate structures every five years to ensure future rates are based on the cost of service.