Forest Lakes Metropolitan District, Pinon Pines 1, 2, and 3, Aug. 7 and 14 – 2022 audits approved; contract services cost increases; water reuse project possible

2022 audits
Contract for services with TMD
NMCI
Wastewater return flows possible
Executive session
PPMD 1
PPMD 1 2022 audit
PPMD 1 financial statements

By Natalie Barszcz

The Forest Lakes Metropolitan District (FLMD) Pinon Pines Metropolitan District (PPMD) 2 and 3 boards met on Aug. 7 to approve the 2022 audits and a second amendment to the agreement for the contract for services with Triview Metropolitan District (TMD). The boards also received updates on the Northern Monument Creek Interceptor Project (NMCI) and the Colorado Springs Utilities (CSU) Indirect Potable Reuse Project, and held an executive session related to intergovernmental agreements. The PPMD 1 all-resident board held a “special meeting” on Aug. 14 to reappoint President Mike Hitchcock to the board, approve the 2022 audit, and accept the board financial reports.

Note: Both meetings were held via teleconference. The boards had not met since December 2022.

Treasurer Douglas Stimple, chief executive officer of Classic Homes, was excused.

2022 audits

District Manager Ann Nichols said the board directors had previously received the full packet containing the 2022 audits for FLMD and PPMD 2 and 3 and, after receiving no comments, CPA Tom Sistare of Hoelting & Co. Inc. had filed the audits with the state to meet the July 31 deadline. The audits were “usual” and the financial controls were good except for PPMD 3, which had been audit exempt until 2023. In early 2022 it was discovered that some of the Public Improvement Fee (PIF) revenue belonged in 2021 and that her original estimate for PIF in 2022 was much higher than $240,000. The PIF revenue in 2022 was $455,000, significantly higher than in previous years. The PIF is estimated to be considerably more when the “Quik Trip” opens in the Falcon Commerce Center, said Nichols.

The board approved the 2022 audits as presented for all three boards, 4-0.

Contract for services with TMD

Nichols said a conversation with TMD Manager James McGrady revealed that the initial estimate for the contract for service agreement with TMD initially approved for $6,000 per month was not enough because the agreement was made before the 2023 budget, and a second amendment increasing the monthly cost to $6,700, back dated to July 2023, was needed. The TMD staff is doing a good job in the district, and about $4,000 is certainly justified for the remainder of the year, said Nichols. See www.ocn.me/v22n8.htm#flmd and www.ocn.me/v22n8.htm#tmd.

Secretary James Boulton, vice president/project manager of Classic Homes, asked if TMD would be replacing dead trees and providing trail maintenance and snow removal service.

Nichols said those services would be provided at an hourly rate for time spent, plus materials when needed. An amendment will be made to the contract services amendment, she said.

The board approved the contract for services increase, 4-0.

NMCI

Nichols said it was anticipated that CSU would request bids on the design for the NMCI in early 2023, but issues arose with the design that went through an old landfill on the U.S. Air Force Academy (USAFA) property. The USAFA is now in agreement with a design that will route the pipeline around the airfield, and it is close to signing the National Environment Policy Act assessment and approval of the re-routed design. The design phase is way behind, but the request for proposals was scheduled to be sent out by the end of August. By the end of the year or as late as spring a cost estimate of the design will be known, then FLMD can decide on the most efficient route to proceed.

FLMD and TMD are committed to seeing the design phase through but will not proceed with the construction of the NMCI pipeline until all costs are known. As a factor in the decision process, the districts are also seeking the scope and cost of upgrading the Upper Monument Creek Regional Wastewater Treatment Facility to meet the state requirements, said Nichols.

Wastewater return flows possible

Nichols said the Northern Delivery System (NDS) pipeline project TMD is developing will connect into CSU to convey, treat, and deliver water to customers in northern El Paso County. CSU continues to explore recapturing return flows with the Indirect Potable Reuse Project (formerly the reuse project under the Pikes Peak Regional Water Authority) for districts participating in the NMCI pipeline project. Wastewater would be delivered via the NMCI and treated at the J.D. Phillips Water Resource Recovery Facility on Mark Dabling Boulevard, and reuse flows would then be recaptured down Monument Creek at some point. CSU has identified six alternative arrangements to collect reuse water for treatment in Monument and Fountain Creeks before sending water to the Southern Delivery System. The projects are linked, and the costs may be presented to the board in the next couple of months, said Nichols. See www.ocn.me/v23n1.htm#flmd and the TMD article on page < 1 >.

Executive session

The PPMD 2 and 3 boards and Tom Blunk and William Muller of CP Real Estate Capital, representing Forest Lakes LLC and Forest Lakes Residential Development, moved into an executive session at 4:17 p.m., pursuant to Colorado Revised Statutes 24-6-402(4) (b) and (e) to receive specific legal advice from district counsel Russell Dykstra of Spencer Fane LLP and instruct negotiators in matters related to intergovernmental agreements.

Nichols confirmed to OCN that after the boards returned to the regular meeting, no action was taken, and the meeting promptly adjourned at 4:38 p.m.

PPMD 1

Nichols said that due to a miscommunication, Hitchcock had missed the deadline to file a self-nomination form for another four-year term on the PPMD 1 Board of Directors, and he would need to be appointed to the board.

President Mike Slavick and A J Slavick approved the appointment, and Hitchcock confirmed he had been read the oath of office by a notary. The board members approved Hitchcock be reinstated as board president. Mike Slavick returned to the vice president position, and A J Slavick is the board secretary. Former Director Chris Paulene did not re-apply for a board position in the May 2023 election, said Nichols.

Note: Two board director vacancies remain on the PPMD 1 board. Any eligible elector residing in PPMD 1 can apply for consideration for a board position.

PPMD 1 2022 audit

Nichols requested the board accept the 2022 audit that was received in July from Hoelting & Company Inc. The board was provided with the management and internal control letters, and the financial statements. The audit was filed with the state by July 31, said Nichols.

The board unanimously accepted the 2022 audit as previously presented.

PPMD 1 financial statements

Nichols said the board had received the June financial statement for approval.

The board unanimously accepted the financial statements as presented for June.

The meeting adjourned at 4:20 p.m.

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Meetings are usually held quarterly or when necessary, on the first Monday of the month at 4 p.m., via Teleconference. Meeting notices are posted at least 24 hours in advance at https://forestlakesmetrodistrict.com. For general questions, contact District Manager Ann Nichols at 719-327-5810, anicholsduffy@aol.com.

Natalie Barszcz can be reached at nataliebarszcz@ocn.me.