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Allen Alchian

Forest Lakes Metropolitan District and Pinon Pines Metropolitan Districts 2 and 3, June 14 – 2023 budgets amended

By Natalie Barszcz

The Forest Lakes Metropolitan District (FLMD) and Pinon Pines Metropolitan District (PPMD) 2 and 3 boards held a joint special meeting on June 14 to conduct public hearings on the amended 2023 budgets for FLMD and PPMD’s 2 and 3. The boards also adopted a second amendment to the FLMD and PPMD’s 2 and 3 budgets appropriating funds for the respective districts.

Note: The joint meeting was held via teleconference, the first meeting since December 2023. See www.ocn.me/v24n1.htm#flmd. A quorum could not be met for a special meeting scheduled on June 28 to approve the 2023 audits.

Secretary Joe Loidolt, president of Classic Homes, was excused.

2023 budget amendments

President George Lenz, executive vice president of finance for Classic Homes, opened the public hearing on the 2023 budget amendments for FLMD and PPMD’s 2 and 3. No comments were heard, and the public hearing was closed.

District Manager Ann Nichols said she had already amended the budget for FLMD for the conveyance of public infrastructure the district receives at year end for the Falcon Commerce Center phase 2 and FLMD filings 5, 6, and 7. Developers spent a significant amount on installing public roads, which creates a liability for the developers until those assets are transferred. The district immediately made the following entries to dedicate the public roads to the appropriate entities:

  • El Paso County filings 5, 6, and 7
  • The Town of Monument—Falcon Commerce Center

Nichols said there is no expenditure, just a journal entry the auditors insist is covered by an appropriation, and the board was asked to review the worksheet and approve the resolutions for:

  • The additional appropriated amount of $9.5 million for road infrastructure in FLMD, a contribution to other governments.
  • An additional $600 for the liability insurance increase for PPMD 2 (West Valley).
  • An increase in funds for the 2023 audit for PPMD 3 (Falcon Commerce Center).

The district had allocated $1,000 in the budget for a request for audit, but due to the level of activity in PPMD 3, a full-blown audit was required for about $6,000, said Nichols.

Treasurer/Assistant Secretary Douglas Stimple, chief executive officer of Classic Homes, said there had been no requirement to make similar corrections before audit presentations for any of the other special districts Classic Homes had developed.

Nichols said the district’s auditors, Hoelting & Co. Inc., had notified the district that even though there is not an actual expenditure of funds, a note in the audit would appear stating the district had exceeded its appropriations. It is worth the effort to make the journal entry corrections and appropriations before submitting the audit to the state, and the auditors agreed, said Nichols.

The board made a blanket motion to approve three resolutions appropriating funds for the three districts.

The meeting adjourned at 10:35 a.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. A special meeting will be held in July (date to be confirmed) for the 2023 audit presentations. Meeting notices are posted at least 24 hours in advance at forestlakesmetrodistrict.com. For general questions, contact Nichols at 719-327-5810, anicholsduffy@aol.com.

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

Other Forest Lakes Metropolitan District articles

Woodmoor Water and Sanitation District, June 10 – Residents question development and water availability

By James Howald

In June, the Woodmoor Water and Sanitation District (WWSD) board heard concerns from residents regarding the future water supply, especially as it affects the proposed residential development Monument Ridge East (MRE). District Engineer Ariel Hacker updated the board on the pace of development and its impact on revenue the district expects from tap fees. The board heard operational reports, rescheduled its next meeting and planned a workshop. The meeting ended with an executive session, after which no action was taken.

Is there enough water for MRE?

During the public comment portion of its meeting, the board addressed questions about the availability of water to serve the MRE residential development, which is planned for the land at the northernmost edge of El Paso County, just south of County Line Road and east of I-25. About 444 residences in total, some detached single-family residences, some duplexes, and some fourplexes, are planned for the site.

Resident Lanette Prosseda reminded the board about the history of the Misty Acres development, which was originally to have just over 400 single-family residences but needed to be reduced in size in 2005 due to concerns about lack of water. This happened before the district’s purchase of the Woodmoor Ranch and its water rights, she said. She questioned whether there would be enough water for MRE.

Steve King, Monument mayor pro tem, said he understood MRE would need to buy supplemental water from the district, which comes at a much higher cost than the standard one-half-acre-foot of water per acre of land that is the standard water service in WWSD’s service area. He also mentioned a concern over the number of impervious surfaces that the development would entail.

Resident Gordon Reichal asked if the restrictions on outdoor watering meant the board was concerned about the availability of water.

District Manager Jessie Shaffer explained that the restrictions on water were primarily intended to manage issues of peak demand, not total availability of water. Handling peak demand was a costly issue for the district, he said. The water restrictions are aimed at leveling the peaks of consumption and reducing the overall costs of water delivery, Shaffer said. He added that demand management is “just good stewardship” of a resource and everyone should be mindful of the need to conserve water.

Shaffer went on to say that WWSD is not a land use authority and did not have the legal responsibility or authority to decide on land use issues: “We can’t tell anyone what they can build.” Land use decisions in the WWSD service area are made by the county, he said.

Shaffer said the district drafts a Long Range Plan (LRP) every five years that details the water rights to ground and surface water owned by the district. The current LRP, which estimates water needs at buildout, allows for 600 single-family residences on the land that MRE would occupy. He said the district’s supplemental water policy was designed to help ensure development paid for its demands on the district.

Board President Brian Bush said the district has enough water to serve “full buildout.” He said he was not on the board when the decision was made to purchase the Woodmoor Ranch and its renewable water rights, but he thought that decision was sound. He said the board was not able to help those who opposed MRE in any configuration. He suggested residents take their concerns to the county Planning Commission or the county commissioners.

King said his main concern is the impact MRE would have on the conservation easement in Douglas County immediately to the north. He estimated that only 15% of MRE’s land would be permeable, and said he believed that was a valid reason not to move forward with the development. Douglas County has protested the plans for MRE out of concerns for the conservation easement, he said.

Growth slows, reducing water tap fee revenue

In response to questions from the board at a previous meeting about expected revenues from water tap fees, Hacker told the board that her calculations showed that development in the WWSD service area was slowing. The estimate of new water taps used in 2024 was close to the actual number of taps sold, she said. The Cloverleaf development just east of Lewis-Palmer High School purchased 15 taps in the first half of 2024 and is expected to purchase another 15 in the last six months of the year. The Monument Junction East development has purchased 14 taps and is expected to purchase 48 more by the end of the year.

A 3/4-inch water tap, the most common size for residential uses, costs $37,235 and a sewer tap costs $10, 388.

Hacker said the Waterside, North Bay, MRE, and Monument Junction West developments are not expected to purchase taps until 2025.

At previous meetings, the board discussed the possibility of raising tap fees in mid-2024. Historically, the board has raised tap fees only once per year as a part of its budgeting cycle. Shaffer said growth was slowing, in part due to high interest rates, and he recommended leaving tap fees unchanged until next year. Bush said he did not recall the board ever raising tap fees mid-year.

Operational reports

In his financial report, Treasurer Roy Martinez commented that revenue from supplemental water service was at 100% of the budgeted amount, and income from leases had seen an increase from the district’s lease of a portion of Woodmoor Ranch to Enerfin Renewables Inc. to be used for a solar array.

Martinez said the district had added an additional bank account that was used for a money market account that generates much higher interest.

The board voted unanimously to accept the financial report.

In his report, Operations Superintendent Dan LaFontaine said water loss had returned to 10%, which was normal. He reported no breaks or failures for the previous month. He reported a loss of water pressure in some houses due to an error made in the installation of a pressure reducing valve required by the Monument Junction East development.

Next meeting rescheduled

The board voted to delay its next meeting to July 15 to allow an additional week to work on the 2025 budget data.

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The next meeting is scheduled for July 15 at 1 p.m. Meetings are usually held on the second Monday of each month at 1 p.m. at the district office at 1845 Woodmoor Drive; please see www.woodmoorwater.com or call 719-488-2525 to verify meeting times and locations.

James Howald can be reached at jameshowald@ocn.me.

Other Woodmoor Water and Sanitation District articles

Monument Sanitation District, June 19 – 2023 audit accepted; repair hits snag

By Jackie Burhans and James Howald

In June, the Monument Sanitation District (MSD) board heard an audit report from Derek Watada of Olson, Reyes & Sauerwein LLC, the district’s auditor. In his Manager’s Report, District Manager Mark Parker discussed a change to the plan to repair a sewer line that runs under Highway 105 adjacent to the Taco Bell restaurant.

Audit shows no concerns

Watada thanked the MSD staff who helped with the audit. He described the district’s finances as “business as usual.” He mentioned that the grant MSD received as part of the American Recovery Plan Act, which is being used to repair a sewer main connecting the Willow Springs neighborhood to the Tri-Lakes Waste Water Treatment Facility, was a new category in the audit. The district’s net position, or equity in MSD’s infrastructure, increased from $5 million to $9.4 million, primarily due to a lift station built by the developer of Willow Springs and then donated to the district, which will maintain it.

Watada asked the board to be aware of the need to separate duties, pointing out that it was difficult to compartmentalize duties in an organization with such a small staff. Parker pointed out that Haynie & Co., the district’s accounting company, assisted Accounts Administrator Cheran Allsup and Parker in their efforts to separate all duties involving financial matters.

The board voted unanimously to accept the audit report.

Unexpected spot repair needed

In his Manager’s Report, Parker told the board that the repair to a sewer line running under Highway 105 was planned to be complete by June 4, but that deadline had not been met. After telling MSD that the pipeline could be repaired by relining it, with no need to excavate and interrupt traffic on the highway, the contractor, Aegion/Inasituform, had changed its position and now said a spot repair was needed. Parker said he believed that change of position invalidated the district’s contract with Aegion/Insituform. Parker said he was organizing a meeting with the contractor and GMS Engineering Inc., the district’s consulting engineers.

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Monument Sanitation District meetings are held at 9 a.m. on the third Wednesday of the month in the district conference room at 130 Second St., Monument. The next regular meeting is scheduled for July 17. See colorado.gov/msd. For a district service map, see colorado.gov/pacific/msd/district-map-0. Information: 719-481-4886.

Jackie Burhans can be reached at jackieburhans@ocn.me.

James Howald can be reached at jameshowald@ocn.me.

Other Monument Sanitation District articles

Donala Water and Sanitation District, June 20 – Loop water reuse project discussed

By James Howald and Jackie Burhans

In June, District Manager Jeff Hodge gave the Donala Water and Sanitation District (DWSD) board a detailed update on the status of the water reuse project, often called The Loop, in which DWSD is an active participant, along with Woodmoor Water and Sanitation District and Cherokee Metropolitan District. The board also considered a recommendation from Brett Gracely, a project engineer with LRE Water, to lease surface water from DWSD’s Willow Creek Ranch to the Arkansas Groundwater and Reservoir Association (AGRA). (Arkansas in this instance refers to the Arkansas River, not the state.) The board also heard financial and operational reports.

The Loop focuses on financing, member obligations, and easements

Hodge told the board that The Loop leadership is drafting a Member Agency Financing and Contribution Agreement that will define the benefits and responsibilities of participating agencies. He mentioned that some of the agencies are seeing personnel changes that will affect who represents them on The Loop board. A “Go or No Go” decision is expected from participating agencies in September. The agreement will help The Loop get the bonds needed to complete the project, Hodge said. DWSD was slated to receive 500 acre-feet of water per year, roughly 13% of the water produced, at a cost between $20 million and $25 million. That amount is equal to the cost of drilling eight wells, Hodge said. He pointed out that the average productive life of a well is 40 years, but The Loop, which will allow customers to reuse return flows from DWSD’s treatment facility after they have made their way through the watershed to Fountain Creek, will have a useful lifetime closer to 100 years.

Recalling the history of The Loop, Hodge explained that when American Recovery Plan Act funds became available in 2021, The Loop’s board asked for $145 million, enough to complete the entire project, but received $4 million, enough to reimburse the seed money that participating agencies invested in the project. Initially, the participating agencies signed a Memorandum of Understanding to get the project underway, and then formed the El Paso County Regional Loop Water Authority

Hodge said The Loop was still discussing how it could partner with Colorado Springs Utilities, which has its own goals for water reuse. He also pointed out that some of the initiatives expected on the ballot in November could impact the financing for DWSD.

At The Loop meeting held earlier in the day on June 20, a contract was awarded to a company that will manage the acquisition of the easements needed by the pipeline that will convey The Loop’s water from Fountain Creek to customers in northern El Paso County. Purchasing the easements represents a risk for the project, Hodge said. See The Loop board meeting article on page < 17 >.

Board President Wayne Vanderschuere asked Hodge to get the agreement to the DWSD board for review as soon as possible so that the board would have enough time to review it thoroughly.

District decides to lease water

Gracely told the board that due to heavier than usual precipitation over the last year, some of the reservoirs where DWSD stores water are full, leading to the risk that some of DWSD’s water stored in those reservoirs might need to be released rather than delivered to customers. AGRA has a beneficial use for surface water from the Willow Creek Ranch owned by DWSD and stored in the Pueblo Reservoir. Permission was granted by the state’s engineer for AGRA to use a portion of DWSD’s water stored in the Pueblo Reservoir, Gracely said.

Gracely asked the board to give Hodge the authority to enter a revised or new lease with AGRA, subject to review by the district’s water counsel. The board voted unanimously to give Hodge that authority.

Operational reports

In his financial report, Hodge said water sales were on track to meet revenue goals in 2024. In 2023 abundant rainfall meant residents had less need to water lawns and gardens and that reduced the district’s revenue from water sales. Hodge anticipated that tap fees would generate higher than budgeted revenue because of a 44-home residential development planned by Classic Homes adjacent to the Big R Store east of I-25. Property taxes were being received as expected, Hodge said.

Hodge said legal review of the district’s agreement with The Loop would raise legal fees slightly, and upgrades to the district’s phone system would raise the large office equipment budget line item.

The board voted unanimously to approve the financial report.

Water Operator Ronny Wright told the board progress was being made in returning Well 16A to production. Issues with Well 1A were being analyzed, he said. Wright said he expected the repairs to the district’s water storage tanks to be complete before July.

On the wastewater side, Chief Waste Plant Operator Aaron Tolman reported E. coli numbers were down from the previous month at about 14% of the allowable level.

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The next board meeting is scheduled for Thursday, July 18 at 1:30 p.m. Generally, board meetings are held the third Thursday of the month at 1:30 p.m. and include online access; call (719) 488-3603 or access www.donalawater.org to receive up-to-date meeting information. The district office is located at 15850 Holbein Drive, Colorado Springs.

James Howald can be reached at jameshowald@ocn.me.

Jackie Burhans can be reached at jackieburhans@ocn.me.

Other Donala Water and Sanitation District articles

Triview Metropolitan District, June 20 – Wastewater processing explored; legislative changes raise concern

By Natalie Barszcz

At the Triview Metropolitan District (TMD) meeting on June 20, the board received updates on the water sold and wastewater discrepancy at the Upper Monument Creek Regional Waste Water Treatment Facility (UMCRWWTF) and received legislative updates that caused concern over future revenue, density, and artificial turf replacement. The board received multiple updates and discussed funding for the Higby Road widening project. The board held an executive session to discuss water and land acquisitions and development incentives.

Wastewater processing discrepancy

Assistant Manager Steve Sheffield said that he had met with District Manager Jeff Hodge and Waste Plant Operator Aaron Tolman of Donala Water and Wastewater District, and Executive Director/Manager Bill Burks of Tri-Lakes Wastewater Treatment Facility (TLWWTF) about the excessive amount of wastewater leaving the UMCRWWTF from the TMD side of the plant. The plan is to meet at the plant to try to discover the cause. Hopefully Burks can help brainstorm the issue and discuss how he operates the TLWWTF, said Sheffield.

District Manager James McGrady said about 2 million gallons of treated effluent is being picked up per month within the plant. The outgoing flume could be inaccurately reading the wastewater effluent output, but the final amount of treated effluent should be less, not more than the untreated effluent entering the plant, he said.

Sheffield said the staff is taking a holistic approach as a team, exploring all avenues to understand the discrepancies in water pumped, treated, sold, and processed through the UMCRWWTF.

Legislative update

District counsel George Rowley said SB-233 addresses property tax limits and imposes a limitation on special districts to not collect more than 5.5% in property tax revenue than the previous year. That is not much revenue if inflation is 10% and the district should keep the limitation in mind when developing the budget, he said. The bill exempts new growth, but another increase in assessed valuation similar to the past few years would apply the limitation. The bill applies to the property taxes and not the debt service.

Treasurer/Secretary James Barnhart said the bill is an incentive for the district to assess the full mill levy.

Rowley said the district could hold an election to vote out of the restriction, but it would be a hard sell and the restriction begins for tax year 2025, he said.

President Mark Melville asked about the legislation preventing commercial, industrial, institutional, and government entities from installing artificial turf or invasive plant species.

Rowley said the idea is to create areas that don’t have growing space and prevent heat sinks and chemical exposure concerns. The legislation will apply to the future replacement of the Sanctuary Pointe Park artificial turf. See snapshot on page < 20 >.

He also said HB-1152 prevents municipalities and counties from prohibiting the construction of accessory dwelling units on properties, such as he/she sheds and mother-in-law suites. Renting out the additional units would create additional density on properties.

Vice Chair Anthony Sexton said the bill could also create double usage on one tap.

McGrady said the district is set up mostly for one dwelling and one tap on each lot. A change to the tap structure will be needed if a multiple service line is required on any one lot, he said.

Melville said a solution would be to drive up the water sold tiers and make it cheaper to buy a tap.

Operational updates

McGrady said the following:

  • The Northern Delivery System (NDS) is about 96% complete and the electrics are installed at the pump house. The facility that will operate the NDS is secured by a fence. The district expects to turn the pumps on and begin testing on July 15.
  • The district is using its decreed Fountain Mutual Irrigation Co. (FMIC) water shares and about 400-acre feet purchased from Pueblo to provide the necessary 800-acre feet needed to run the NDS through May 2025.
  • An additional cost of about $993,300 for the unexpected 120.4 acre-feet will be wired on June 21 to the two additional land owners who also decided to sell water rights to the district through the Arkansas Valley Irrigation Co. (AVIC).
  • The district is waiting for its AVIC shares to be approved in the water courts. The additional water shares in conjunction with spring run-off will be needed to run the NDS from mid-2025.
  • The district is depositing water back into Stonewall Springs Reservoir in a paper exchange with Pueblo.
  • The Buena Vista land annexation plan, plat, and request for a zone change was submitted. The masterplan for the project is approved by the town of Buena Vista and the district plans to construct recharge ponds on the 296 acres purchased by TMD in late 2020.
  • The district is adding a pick-up lane on Leather Chaps Drive at Bear Creek Elementary School. The construction is expected to be completed mid-July. The lane was installed at D38’s request to elevate safety for students during drop-off and pick-up times.
  • The Promontory Pointe overlay project was completed June 6.

Sexton said Martin Marietta had done a “nice job” on the mill and overlay project; it was well organized, but he had received multiple complaints from residents about the black footprints and tread marks on sidewalks and some driveways.

McGrady said from personal experience the black marks will come off, but it will take a couple of months.

Financial report

Sexton said the graph showing sales tax revenue from Monument shows the district’s portion is $20,000 less than collected last year.

McGrady said he discussed the tracking of sales tax revenue with Monument, and although the town purchased a software package to track sales tax, it had no staff to run the program. The town did hire a contractor to begin tracking sales tax. Upon investigation, he immediately noticed that no sales tax had been collected for the Tractor Supply Store for several months. Those are the types of errors that the town needs to get after, McGrady said.

Sexton said the sales taxes should be filed with the state monthly, and Monument will need to identify the businesses and contact the state.

McGrady said the district had almost $5.2 million in the Wastewater Enterprise Fund, and $3.8 million in the General Fund. About $1.8 million will be needed from the enterprise fund to pay for the remaining NDS balance.

Melville said the district needs to let the general fund grow to fund road repairs that will cost about $4 to $5 million every 10 to 12 years to avoid using a bond.

The district estimates that about 55 taps will be sold by the end of June. It budgeted 75 taps for 2024 and collects about $45,000 per residential tap. The taps are mainly from the homes built south of Higby Road.

McGrady said the district closed on the Colorado Water Conservation Board loan on June 15. The loan was for $5.2 million at 2.05% to pay for the Stonewall Springs Reservoir project. It is the crown jewel of the district, he said. See www.ocn.me/v23n11.htm#tmd.

The board unanimously approved the May financial report.

Higby Road widening project update

Director Jason Gross requested an update on when the Higby Road widening project would begin and asked about the funding now that the Zeal for Living apartments are approved.

McGrady said the project will cost about $10 million to $12 million. Funding will be a combination of a number of things, including road and bridge fees for both residential apartments and commercial property that will generate about $2 million. The developers will contribute, and the remaining $8 million will generated by Sub-district A issuing bonds (debt service) for filings 1-6 in the south Higby Road development. Homes are going in and bonds can be issued, but the payments will be low initially and increase as the development grows and the commercial area is built. Kiewit provided the estimate for the widening project, and the district will pay $750,000 for a water pipeline this summer. The developers are installing storm drainage. The preliminary utility work is expected to be installed this year. The financing will need to be in place before the road project begins, but the growth is there and plats are pre-approved, he said.

Speeding concerns

Director Amanda Carlton said a resident of Sanctuary Pointe requested the district install flashing speed signs along Sanctuary Rim Drive in both directions before and after Sanctuary Rim Park, to help slow traffic and ensure safety, just like the signs installed along Gleneagle Drive.

McGrady said the signs cost about $7,500 each and the district will look into adding signs.

Executive session

The board moved into an executive session at 7:43 p.m. pursuant to Colorado Revised Statutes sections 24-6-402(4)(a), for the purpose of acquisition of water/land, and 24-6-402(4)(b) to determine the positions relative to matters that may be subject to negotiations, developing strategies for negotiations, and instructing negotiators as it relates to potential development incentives.

Sheffield confirmed that after the meeting returned to the regular session no action was taken, and the meeting adjourned at 9:18 p.m.

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Meetings are usually held on the third Thursday of the month at the district office located at 16055 Old Forest Point, Suite 302. The next regular board meeting is scheduled for July 18 at 5:30 p.m. For meeting agendas, minutes, and updates, visit triviewmetro.com.

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

Other Triview Metropolitan District articles