FLMD Special Minutes

RECORD OF PROCEEDINGS

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MINUTES OF A JOINT REGULAR MEETING OF THE BOARDS OF DIRECTORS OF FOREST LAKES METROPOLITAN DISTRICT, PINON PINES METROPOLITAN DISTRICT #1, PINON PINES METROPOLITAN DISTRICT #2 AND PINON PINES METROPOLITAN DISTRICT #3

Held: Monday, April 2, 2018, at 10:00 A.M., at 6385 Corporate Drive, Suite 200,
Colorado Springs, Colorado.

Attendance The Joint Meeting of the Boards of Directors of the Forest Lakes Metropolitan District, Pinon Pines Metropolitan District #1, Pinon Pines Metropolitan District #2 and Pinon Pines Metropolitan District #3, El Paso County, Colorado was called to order at 10:07 A.M. and held as shown above and in accordance with the applicable statutes of the State of Colorado, with the following Directors present and acting:

George Lenz
Douglas Stimple – by phone
Joe Loidolt
Jim Boulton

Also present:

Tom Blunk, CP Real Estate Capital – by phone
Russel W. Dykstra, District Counsel
Lisa Hatfield, Our Community News
Sarah Steph, Classic Homes
Nate Lenz, Classic Homes
Ann Nichols, District Manager
Mike Slavick, Resident
Buck Lansford, Homeowner
Don Burgess, Homeowner
Teresa Lansford, Homeowner

Excused Absence:

None

Agenda and Meeting
Location

The Board reviewed the Agenda for the Districts’ Regular Board Meeting. It was noted that two new item will be added under Administrative Matters: (1) Public Comment and (2) Approve Resolution Establishing Account at ColoTrust for Pinon Pines Metropolitan District No. 3. Following discussion, upon motion duly made by Director Loidolt, seconded by Director Boulton, and unanimously carried, the revised Agenda was approved.

The Board entered into a discussion regarding the requirements of Section 32-1-903(1), C.R.S. concerning the location of the District’s Board meetings. Following discussion, upon motion duly made, seconded and unanimously carried, the Board determined that because there is not a suitable or convenient location within the District’s boundaries to conduct public meetings they determined to conduct the meetings at the above stated location. The Board further noted that notice of this location was duly posted and that they have not received any objections to said location or requests that the meeting place be changed by any resident or taxpaying elector within its boundaries.

Disclosure of
Potential Conflicts
of Interest

Public Comment
The Board discussed the requirements of Colorado law to disclose any potential conflicts of interest or potential breaches of fiduciary duty to the Board of Directors and to the Secretary of State. The members of the Board were requested to disclose any potential conflicts of interest with regard to any matters scheduled for discussion at this meeting, and incorporated for the record those applicable disclosures made by the Board Members prior to this meeting in accordance with statute.

Mr. Dykstra explained that comments should be limited to 3 minutes and should address issues with regard to the four metropolitan districts. Mr. Dykstra proceeded in the order individuals had signed the “attendance sheet”. Mr. Slavick passed and gave his three minutes to Mr. Lansford. Mr. Lansford asked about the following matters: (1) the reason for the upcoming rate increase; (2) the reason for the low water level in Bristlecone – i.e. is water being used from Bristlecone currently and, if so, for what purpose; (3) an explanation of the water plant construction and timeframe; and (4) an explanation of the Phase II development plans. Mr. Dykstra explained that discussion of the Phase II development plans is not appropriate for these metro district Boards as that is a developer project. He asked Ms. Nichols to respond to the other questions.

Ms. Nichols noted that a public hearing will be held on May 7th to consider changes to the wastewater rates for both commercial and residential customers and to revise the commercial monthly customer charges for both water and wastewater services. She noted that an analysis of the estimated wastewater collection and treatment costs and the current revenues for wastewater service indicate that revenues will not cover costs for 2018. She noted that the necessary rate adjustments will be done in at least two steps – with just one in 2018 with a proposed effective date of July 1st. She further noted that the proposal is to raise monthly residential rates from $30 to $35.

With regard to the lake level in Bristlecone, Ms. Nichols indicated that no water is currently being taken from the lake and that the lowering level of the lake is due to the moderate drought the area is in. Flows into Bristlecone are far less than evaporation rates from the lake. Weather predictions for the next several months suggest this trend will continue. Mr. Lansford asked if lake water would be a primary or secondary source of water for the Forest Lakes development. Ms. Nichols explained that the District will use both surface – i.e. lake – water and groundwater as conditions dictate. Generally, if drought conditions exist and Beaver Creek flows are low, we would use more groundwater. When surface water flows are ample, they would become the primary source and groundwater use will be reduced.

Ms. Nichols explained that the surface water treatment plant has been under construction since late 2017 and is scheduled for completion by October. The plant will be a 1.5 mgd plant – initially completed at 0.5 mgd. – and will have a lake intake a fair distance west of the plant location. She noted that the raw water pipeline that will bring water to the plant from the lake intake is already in place.

Mr. Burgess had no further questions.

Ms. Hatfield from Our Community News asked about the ability to use raw water from the lake in the irrigation system for the Park. Ms. Nichols noted that
Forest Lakes Metro may still put that system in place at some point, but that it is not currently built.

Ms. Lansford asked about possible water restrictions this summer. Ms. Nichols noted that Forest Lakes Metro has water shortage provisions in its current Rules and Regulations and that we will continue to monitor the level of resident demand as the summer progresses. If conditions dictate, the Board may be asked to trigger water restrictions for the summer that would limit outdoor irrigation to 3 days per week.

Approve Minutes for December 4, 2017 Joint Board Meeting

Following discussion, upon motion duly made by Director Loidolt, seconded by Director Boulton, the Board unanimously approved the December 4, 2017 Minutes.

.
Ratification of 2017 Audit Exemption Requests for Pinon Pines Metropolitan Districts No. 2 and No. 3

Ms. Nichols explained that full audits are in process for Forest Lakes Metropolitan District and Pinon Pines Metropolitan District No. 1. Given the limited level of financial activity within Pinon No. 2 and #3, audit exemption requests were filed with the State Auditor in mid-March. Following discussion, upon motion duly made by Director Loidolt, seconded by Director Boulton and unanimously passed, the Audit Exemption Requests were ratified.

Approve Assignment of Intergovernmental Agreement Between Forest Lakes Metropolitan District and the Town of Monument (Regarding PIF) to Pinon Pines Metropolitan District No. 3

Approve Notice of Rate Increase – July 1, 2018 – Public Hearing at the May 7th Board Meeting

Update on Citizen Advisory Council

Update On Pinon Pines Metropolitan District No. 1 Election

Update on Surface Water Treatment Plant Construction

Approve Resolution Establishing Account at ColoTrust for Pinon Pines Metropolitan District No. 3

New Business

Adjournment

Mr. Dykstra described the history of the Agreement with the Town of Monument and the Town’s agreement to allow a 1% credit on their 3% sales tax to be collected by FLMD as a Public Improvement Fee (PIF). It is now appropriate to assign that Agreement to Pinon Pines No. 3. Following discussion, upon motion by Director Loidolt seconded by Director Boulton and unanimously passed, the Assignment Agreement was approved.

Mr. Dykstra explained the Notice and indicated that approval would set the Public Hearing for May 7, 2018. Following discussion, upon motion duly made by Director Boulton, seconded by Director Loidolt and unanimously passed, the Public Hearing was set for May 7th.

Mr. Dykstra, as directed by the Board in December, contacted Raimere Fitzpatrick at El Paso County Development Services to discuss the most effective mechanism for achieving the end result of giving local residents an avenue for information sharing on the activities of the Forest Lakes Districts. Mr. Fitzpatrick agreed that it makes good sense to utilize the existing HOA Board for this purpose. Mr. Dykstra will draft a letter to Mr. Fitzpatrick outlining this approach and Mr. Dykstra expects that approach to be administratively approved by the County.

Mr. Dykstra noted that since four qualified individuals are running for two open positions in Pinon Pines No. 1 an election will be conducted. Ballots will be mailed beginning April 16th.

This matter was handled under Public Comment.

Mr. Dykstra explained that he has many clients who utilize ColoTrust for investment of funds. Investments earn market rates of interest and invested funds are very liquid. The PIF revenues that Pinon Pines No. 3 will start receiving in early summer would be invested in ColoTrust. Following discussion, upon motion duly made by Director Loidolt, seconded by Director Boulton and unanimously passed, the ColoTrust resolution was approved.

None

Upon motion by Director Loidolt, seconded by Director Boulton and unanimously approved, the meeting was adjourned at 10:42 A.M.

The foregoing Minutes were approved by the Board of Directors on the day of __________ , 2018.

The foregoing constitutes a true and correct copy of the Minutes of the above-referenced meeting.

_________________________________
Secretary for the Meeting

.

Adjournment

 

FLMD-SpecialMinutes-April 2, 2018

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