Town of Monument Board of Trustees - September 2019
• Meeting the needs of the diverse student population.
• Dealing with increasing class sizes based on population growth.
• Fiscal responsibility.
• Staff retention and morale.
• Civil conversations and respect with one another.
• The Economic Development Committee Strategic Plan with Triview is exploring potential new businesses.
• The Finance Department created new budget spreadsheets in preparation for 2020 department budget discussions.
• Four new officers are going through the Police Department’s field training program.
• Planning staff is working to fund the widening of Jackson Creek Parkway from Higby Road to Highway 105 for 2020.
• Human resources and the Police Department are working together to hire a code enforcement officer, a records technician and an evidence technician.
• Police overtime has decreased by 80 hours this pay period.
• Triview Metropolitan District – town share of cost for the Northern Regional Water Delivery Project Phase I, $8,012.
• Global Underground Corp. – valve repair and maintenance, $99,290.
• Welby Gardens Co. – plants and credit back for return, $6,550.
• Buxton Co. – retail recruitment analysis, $7,500.
• Martin Marietta Materials – asphalt repairs, $148,122.
• Murray, Dahl, Beery & Renaud – legal services, $16,372.
• Krassa & Miller LLC – legal services, $5,747.
• Lytle Water Solutions LLC – engineering services, $5,944.
• AECOM – Beacon Lite Road walk improvements, $9,863.
• CivicPlus – civic clerk software renewal, $5,988.
Monument Board of Trustees, Aug. 19: "Clean" 2018 audit accepted with board questions
By Allison Robenstein
The Monument Board of Trustees (BOT) narrowly authorized Finance Director Bill Wengert to submit the annual audit during the Aug. 19 meeting by a vote of 4-3. The board also approved more money for emergency stormwater infrastructure and road repairs due to a deteriorating stormwater system, discussed the process of hiring a staff attorney, and heard a presentation by Dr. Kenneth C. "K.C." Somers, the new superintendent of the Lewis-Palmer School District.
2018 audit recognized with divided vote
First, Wengert told the board June 2019 revenues are trending 13% higher than expected due to increased sales tax income. Normally, Treasurer Pamela Smith would present the financials, but she was put on paid administrative leave at the March 4 meeting pending the outcome of an ongoing criminal investigation by the El Paso County Sheriff’s Office in conjunction with the FBI and IRS. Wengert was introduced as the new finance director on May 6. See https://ocn.me/v19n4.htm#mbot,www.ocn.me/v19n6.htm#mbot.
Then, independent auditor Kyle Logan made his 2018 audit presentation, providing a "clean" or unmodified opinion, meaning the financial statements were fairly presented and conform with generally accepted accounting principles. His opinion finds "reasonable, but not absolute, assurance about whether the financial statements are free of material misstatement." It does not express an opinion on the effectiveness of the town’s internal control, his management letter said. "Our audit of the financial statements does not relieve you or management of your responsibilities."
By Colorado statute, the town is required to send an audit to the state annually by end of July, but at the June 17 meeting, Wengert asked the board to approve a request to the state for a 60-day extension to the end of August because he was still getting up to speed after being hired in May.
Logan explained there are two phases to the audit: a sampling of data and internal controls that occurred in November, and a review of the 2017 to 2018 numbers, including communication with third parties such as banks. Logan’s management letter pointed out that the Traffic Impact Fee fund showed a loss of 76% in the last two years and recommended that the town monitor spending in this fund to prevent a deficit position.
Also, his team made 19 adjustments to the town’s accounting records, which "indicate a significant deficiency in the town’s reporting," Trustee Greg Coopman read from the management report. Logan said the adjustments were made "in order to properly report certain assets, liabilities, revenues, and expenditures of the town." They trended toward a turnover in financial personnel, at which time standard practices were not followed, such as not keeping financial records up to date and inadvertently putting numbers into the wrong funds, including the general and water funds.
Coopman said that didn’t sound like a simple fund mix-up and requested time to review the adjustments before putting his stamp of approval on it. Logan said he has discussed this with staff, there were "no material weaknesses" or fraudulent intent associated with the issues, and those issues did not change his "clean" opinion, which he would not have issued if it were not accurate or that he could not support.
Logan said all that is sent to the state is his "opinion," backed up by his license, not the management letter with its internal suggestions for town staff.
When Trustee Laurie Clark asked Logan "if anything gave him cause to have apprehension" in providing an unmodified opinion with the ongoing FBI investigation, Logan said he could not answer questions about the ongoing FBI/IRS investigation of the town’s financial records. "I cannot discuss that because of legal advice."
Trustee Jeffrey Bornstein asked if upon approval of the audit, is there any chance the board can be held liable within the ongoing investigation. Town Attorney Joseph Rivera said the board’s authorization of the audit merely conveys that the board had fulfilled its obligation to hire an auditor and send the completed audit to the state.
Bornstein, Clark, and Coopman voted against the resolution authorizing the town manager to file the 2018 audit, which passed 4-3.
During public comments, Ann Howe questioned the town’s recordkeeping and its inability to respond to her public records request about community development grant records worth hundreds of thousands of dollars.
Another emergency charge for decaying infrastructure approved
Public Works Director Tom Tharnish asked the board to approve $100,000 for emergency stormwater repairs after excessive August rains caused the disintegration of a No Name Creek culvert, creating a 9-foot crack underneath Old Denver Road. Tharnish told the board someone moved the temporary barricades across the road during the night while the emergency repairs were happening, and it was lucky no one was hurt on the collapsing road. Tharnish said the temporary repairs allowed the road to be reopened to safe travel, but he planned to schedule permanent repairs in a few weeks.
Because there is only $30,000 left in the Stormwater fund, Tharnish said he is working with Wengert to transfer money between funds to pay for the $100,000 request.
Clark asked if this lack of maintenance is an anomaly, but Tharnish said there are issues throughout the town regarding older pipes and culverts. Town Manager Mike Foreman said Public Works staff would present options to the board during the budget process that might create a bigger revenue stream to the stormwater fund and allow Public Works and the BOT to make proactive decisions about repair projects to fund.
Search for full-time attorney begins
At the July 15 meeting, Bornstein suggested the town begin looking for a full-time staff attorney, rather than contracting for legal services, in order to reduce legal costs. Contract attorney fees are currently $70,000 over the expected budget.
Background: In the past, the town has used both on-staff and contract attorneys. Attorney Gary Shupp was the town’s "contract attorney" for at least 15 years. In 2017, the trustees suddenly replaced Shupp with a "staff attorney," Alicia Corley, who was not reappointed. The town had no legal counsel for four months until it finally appointed Rivera as the town’s contract attorney in December 2018. See www.ocn.me/v17n7.htm#mbot, www.ocn.me/v18n6.htm#mbot, www.ocn.me/v19n1.htm#mbot.
At the July 15 meeting, the board directed Foreman to identify job requirements for a full-time staff attorney position, which Human Resources Manager Robert Bishop presented tonight. Bishop suggested a methodical process similar to that used to hire the town manager. Board members will be fully involved at each step. Coopman suggested there wasn’t full board involvement or communication during the town manager hiring process. See https://www.ocn.me/v18n11.htm#mbot.
Clark asked Bishop to fully vet all candidates by doing background checks, verifying previous employment and reviewing social media accounts. Bishop suggested the board repeat the online survey in which members could rate the candidates to determine who would be interviewed. Clark said she had previously found this method to be unprofessional and didn’t respect the online format. The board directed Bishop to send them the salary range and job description for its review.
New school superintendent presents state of D-38
Somers, a Colorado native and Palmer High School graduate, was hired as the D-38 superintendent on April 8. See www.ocn.me/v19n5.htm#d38. He told BOT members the district had just welcomed almost 7,000 students for their first day of school that morning and noted the district has a new slogan called One Team, Our Team intended to show everyone has value.
In his "high-level" presentation, he noted the district is one of the best in the state but said that at his community meetings, residents have noted the district faces a few challenges, including:
• Dealing with increasing class sizes based on population growth.
• Fiscal responsibility.
• Staff retention and morale.
• Civil conversations and respect with one another.
Somers said that at the Aug. 26 meeting, the school board will be voting to put a single-purpose bond of $28.985 million onto the November election ballot to build a new elementary school next to Bear Creek Elementary. Then, Bear Creek would revert back to a middle school for sixth through eighth grades, which will free up more space in every elementary school. See related D-38 article on page 1.
During public comments, resident Amy Shertzer encouraged the BOT to create a town resolution in support of the school’s bond request. D38 Board Treasurer Chris Taylor also asked for more partnership from the town to show how they value education.
Somers pointed to an 11% growth rate over the last five years and cited a Metrostudy report that determined the district will add 1,539 students over the next 10 years as reasons for the bond. Taylor spoke briefly, telling the BOT that last year’s failed attempt to pass a bond was due to "a lack of a pro statement in the (Ballot Analysis) blue book."
Bornstein thanked Somers and asked him to explain his statement that the bond would be cost neutral to the average homeowner. Somers didn’t provide official numbers at the meeting but intended to send a more detailed spreadsheet to the board showing the actual expected tax changes.
Mayor Don Wilson clarified that the bond would just be used to build the new elementary school but wondered if the district already has the operating funds for the new school. Somers said that’s something the district is looking at very closely and will be dependent on funding they receive from the state.
When Bornstein asked about reverting Grace Best Education Center back to a school, Somers said it’s a complex issue that would not be sustainable as a long-term solution to overcrowding and would be an extremely costly conversion.
Town manager’s report
Foreman reported the following in his August report to the board:
• The Finance Department created new budget spreadsheets in preparation for 2020 department budget discussions.
• Four new officers are going through the Police Department’s field training program.
• Planning staff is working to fund the widening of Jackson Creek Parkway from Higby Road to Highway 105 for 2020.
• Human resources and the Police Department are working together to hire a code enforcement officer, a records technician and an evidence technician.
• Police overtime has decreased by 80 hours this pay period.
During public comments, resident Ken Kimple, who is also on the Planning Commission, asked questions about measurable short- and long-term goals and about the town’s strategic plan. His specific concerns included whether the town had its own transportation plan to match its growth.
Employees of the month
Two town employees were recognized at the meeting. Park Foreman James Schubauer was hired in 2010 and continues to take on extra work and lead by example. He helps to plan park projects, supervises landscape projects, and is an experienced snowplow operator. Foreman said Schubauer "gets the job done." Tina Erickson was recognized for her three years of dedicated work to the town as administrative assistant providing front desk support for Town Hall. She confirms compliance in business licenses and developed a searchable database on the town’s website.
Checks over $5,000
The following checks were written and approved through the consent agenda:
• Global Underground Corp. – valve repair and maintenance, $99,290.
• Welby Gardens Co. – plants and credit back for return, $6,550.
• Buxton Co. – retail recruitment analysis, $7,500.
• Martin Marietta Materials – asphalt repairs, $148,122.
• Murray, Dahl, Beery & Renaud – legal services, $16,372.
• Krassa & Miller LLC – legal services, $5,747.
• Lytle Water Solutions LLC – engineering services, $5,944.
• AECOM – Beacon Lite Road walk improvements, $9,863.
• CivicPlus – civic clerk software renewal, $5,988.
The board went into executive session for negotiation of legal questions on water use litigation with Forest Lakes Metro District at 8:13 pm. Town Clerk Laura Hogan said no actions were taken after the executive session.