Joint Regular Meeting Minutes, December 5, 2022 - Forest Lakes Metropolitan District

August 7, 2023
Minutes

MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS OF FOREST LAKES METROPOLITAN DISTRICT AND PIÑON PINES METROPOLITAN DISTRICTS #2 AND #3

Held: Monday, December 5, 2022, at 4:00 P.M., by teleconference.

Attendance

The Regular Meeting of the Board of Directors of the Forest Lakes Metropolitan District and Pinon Pines Metropolitan Districts #2 and #3, El Paso County, Colorado was called to order at 4:19 P.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
Doug Stimple
Joe Loidolt
Jim Boulton

Also present:

Russel W. Dykstra, District Counsel
Natalie Barszcz, OCN
Tom Blunk, Forest Lakes LLC
Ann Nichols, District Manager

Excused Absence:

None

Agenda and Meeting Location

The Board reviewed the Agenda for the Districts’ Regular Board Meeting. Following discussion, upon motion duly made by Director Loidolt, seconded by Director Boulton, and unanimously carried, the Agenda was approved.

Mr. Dykstra explained to the Board that, in view of the current COVID 19 disruptions, the Colorado Attorney General is reviewing the open meeting requirements for public entity meetings. It is Mr. Dykstra’s opinion that this Board meeting meets all open meetings requirements since the public has been appropriately notified of the opportunity for them to participate by phone.

The Board entered into a discussion regarding the requirements of Section 32-1-903(1), C.R.S. concerning the location of the Districts’ 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.

Public Comment

None

Disclosure of Potential Conflicts of Interest

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 Boards 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.

Approve Minutes for September 12, 2022 Board Meeting

Following discussion, upon motion duly made by Director Boulton, seconded by Director Loidolt, the Board unanimously approved the September 12, 2022 Minutes.

Public Hearing for Proposed Rate Increase for Water, Wastewater and Landscaping Services for Forest Lakes Metropolitan District

Mr. Dykstra opened the public hearing on the proposed rate increases. Ms., Nichols explained that the cost of service analysis she has done for 2023 based on expected costs to provide water, wastewater and landscaping services shows significant deficits based only on revenues generated by current rates. While expected development fees can be used temporarily to help cover those deficits, it would be prudent to again ramp up all charges to bring revenues more in line with expected costs. The proposed increases are 7% for water and wastewater services a $1 per month increase for landscaping services to be effective January 1, 2023. Mr. Dykstra closed the public hearing. Following discussion, upon motion duly made by Director Lenz, seconded by Director Boulton and unanimously passed, the proposed January 1, 2023 rate increases were approved.

Public Hearing on Amended 2022 Budget for Forest Lakes Metropolitan District

Mr. Dykstra opened the public hearing on the amended 2022 FLMD Budget. Ms. Nichols explained that the main reason for the increase in appropriations for the 2022 budget is the entries that will be made at year-end to book public infrastructure installed in Forest Lakes Filings 2A, 2B and 4 and in Phase 1 of the Falcon Commerce Center onto FLMD’s books. A payable to Forest Lakes LLC in the sane amount will be booked simultaneously. There were no public comments and Mr. Dykstra Lenz closed the public hearing.

Consider Approval of Resolutions Adopting the Amended 2022 Budget and Appropriating Funds for 2022 for Forest Lakes Metropolitan District

Following discussion, upon motion duly made by Director Boulton, seconded by Director Loidolt and unanimously passed, the 2022 Budget amendment Resolutions were approved.

Public Hearing on 2023 Budgets for Forest Lakes Metropolitan District and Pinon Pines Metropolitan Districts #2 and #3

Mr. Dykstra opened the public hearing on the 2023 Budgets. Ms. Nichols described the main changes in the FLMD Budget from activities during 2022. Ms. Nichols noted that the 2023 FLMD Budget includes receipt of development fee revenue from an estimate for lot sales and housing starts for Filings #6 and #7. Ms. Nichols briefly described the main features of the 2023 PPMD #2 Budget which includes receipt of facilities development fees from lot sales in Filings #6 and #7, payment of interest expense on the 2020 PPMD #2 Bond Issue and payment for a 2022 audit for PPMD #2. Ms. Nichols noted that the 2023 Budget for PPMD #3 is little changed from the current level of activity in that district and does not reflect revenues from development fees for any future commercial projects. Mr. Dykstra closed the public hearing.

Consider Approval of Resolutions Adopting the 2023 Budgets and Appropriating Funds for 2023 for Forest Lakes Metropolitan District and Pinon Pines Metropolitan Districts #2 and #3

Following discussion, upon motion duly made by Director Loidolt seconded by Director Boulton and unanimously passed, the 2023 Budget Resolutions were approved.

Consider Approval of Resolutions to Set Mill Levies for 2023 for Forest Lakes Metropolitan District and Pinon Pines Metropolitan District #2 and #3

Ms. Nichols described the documents for establishing the 2023 Mill Levies for the three districts. Following discussion, upon motion duly made by Director Stimple, seconded by Director Boulton and unanimously passed, the Mill Levy Resolutions were approved.

Consideration of Approval of Engagements Letters with Hoelting & Company for the 2022 Audits for Forest Lakes Metropolitan District and Pinon Pines Metropolitan District #2 and the 2022 Audit Exemption Request for Pinon Pines Metropolitan District #3

Ms. Nichols reviewed the fees proposed for the three 2022 audits. Following discussion, upon motion duly made by Director Stimple, seconded by Director Boulton and unanimously passed, the three Engagement letters were approved.

Approve Twentieth Amendment to Professional Services Agreement Between FLMD and Ann Nichols

Ms. Nichols explained that only the effective dates have changed in this agreement. Following discussion, upon motion duly made by Director Stimple, seconded by Director Boulton and unanimously passed, the Professional Services Agreement was approved.

Consider Approval of Election Resolutions for 2023

Ms. Nichols referred to the Election Resolutions For FLMD and for PPMD #2 and #3 for the May 2023 elections. Following discussion, upon motion duly made by Director Stimple, seconded by Director Boulton and unanimously passed, the Election Resolutions were approved.

Approve 2023 Annual Administrative Resolutions and Directors Exclusion From Workers Compensation Coverage Resolutions

Mr. Dykstra explained the purpose of the Annual Administrative Resolutions and the Directors Exclusion from Workers Compensation Coverage Resolution. Following discussion, upon motion duly made by Director Stimple, seconded by Director Boulton and unanimously passed, the 2023 Resolutions were approved.

Approve 2023 Transparency Notices for Forest Lakes Metropolitan District and Pinon Pines Metropolitan Districts #2 and #3

Following discussion, upon motion duly made by Director Stimple, seconded by Director Boulton and unanimously passed, the 2023 Transparency Notices were approved.

Appointment to Fill Vacancies on FLMD, PPMD #2 and PPMD #3 Board

Mr. Dykstra explained that the vacancies have been duly posted and Steve Schlosser has expressed an interest. Following discussion, upon motion duly made by Director Stimple, seconded by Director Boulton and unanimously passed, Steve Schlosser was appointed to the Board vacancies.

Discuss the Northern Monument Creek Interceptor Project Status

Ms. Nichols reported that Colorado Springs Utilities has run into some delays with getting an RFP on the street for the NMCI design. It is now expected to have that in process by early spring.

Discuss Work on A1 Well and the Denver Well and the PPRWA Reuse Study

Ms. Nichols reported that the A1 well is complete and has been used throughout the later half of 2022. The drilling of the Denver Well is complete and Velocity Constructors was awarded the contract to equip the well and prepare the necessary piping changes. Equipment is on order and Velocity will mobilize once the equipment delivery schedule is known. The final cost of the Denver well is now estimated to be over $1.0 million. We expect to have the Denver well on line before the summer irrigation season. Ms. Nichols also reported that after many months, the screen in the Dillon Well has been repaired, new pump and motor have been installed and it is back in service.

The PPRWA sponsored Reuse Project – a project to identify feasible alternatives for return of the northern entities reusable return flows – is complete and the next step will be to participate with Colorado Springs Utilities in their Indirect Potable Reuse Project.

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