Hello Lloyd,

From your pictures, it does look like you have an infestation of the Douglas-fir Tussock Moth.  They are probably defoliating the top of your Spruce trees.  Cocoons can be found on adjacent surfaces near host trees.  I have included a fact sheet so you can compare what you have with the included pictures.  We are currently having a mini outbreak of this moth in the Springs.  A few chemical controls are mentioned, younger larvae are more effectively controlled.

https://extension.colostate.edu/topic-areas/insects/5-542-douglas-fir-tussock-moths/

"Douglas-fir tussock moth caterpillars also can cause problems because the larval hairs can be irritating and are capable of producing a painful rash. Individual reactions to the hairs are highly variable with some people reacting strongly following exposure while others have little reaction."

If you would like an arborist to come out to check your site and make recommendations, I have attached a 2020 Tree Services Reference  List.

You are welcome!