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Articles from Vol. 24 No. 9 - September 7, 2024

NDS ribbon cutting, Aug. 14

By Natalie Barszcz

Triview Metropolitan District (TMD) Manager James McGrady welcomed about 40 invitees and said the Northern Delivery System (NDS) will forever change how TMD and Forest Lake Metropolitan District (FLMD) provide water to almost 3,000 single-family homes along with multifamily and commercial customers. TMD will no longer be dependent on nonrenewable ground water to supply the demands of its customers. The districts’ Denver Basin wells will be used as a supplemental supply on max use days and during periods of drought in the future.

About nine years ago, TMD set about acquiring and decreeing 1,950 acre-feet of renewable water rights for municipal use, and since then the district has constructed 1,630 acre-feet of storage in the South Reservoir, a part of the Stonewall Springs Facility. The district also has access to over 1,000 acre-feet of storage in Big Johnson Reservoir as a result of its majority ownership in the Fountain Mutual Irrigation Co., and leases 999 acre-feet of water storage from the Bureau of Reclamation. The NDS pump station is capable of delivering up to 4.0 million gallons per day of renewable water to Northern El Paso County, imparting about 550 feet of head and lifting the water to the districts “C Plant” tank located in the Sanctuary Pointe subdivision. The district’s water rights will be delivered to the Highway 83 Tank using Colorado Springs Utilities (CSU) extensive conveyance, treatment, and distribution system.

The majority of the $24 million delivery system design and infrastructure project was funded with cash acquired from the sale of tap fees from development within the district. While the construction of the pipeline was completed in less than 16 months, it took the last seven years to build and permit the project. The NDS pipeline will deliver the district’s collection of water rights obtained for about $40 million and made possible by a $10 million 25-year agreement with CSU, for a total project cost of about $75 million, McGrady said.

McGrady thanked President of T-Bone Construction Mike Thibault, Kiewit Project Manager Max McClean, Operations Manager Kiewit Infrastructure Mike McDonald, RESPEC Engineering staff John McGinn, Gwen Dahl, and Mario Dipasquale, TMD staff Rob Lewis, Kevin Fackerell, Steve Sheffield, and Matt Rayno, and the many sub-contractors involved in the project and the TMD Board of Directors’ past and present for their leadership.

Above: The NDS pump station built by T-Bone Construction is pictured on Aug. 14. Photo by Natalie Barszcz.
Above: Ribbon cutting Aug. 14 at the NDS pump station built by T-Bone Construction. From left, Tri-Lakes Chamber of Commerce Ambassador Sandy Shook, President of T- Bone Construction Mike Thibault, Treasurer/Secretary James Barnhart, Triview Metropolitan District (TMD) Manager James McGrady and District Manager Forest Lakes Metropolitan District (FLMD) Ann Nichols cutting the ribbon, Vice Chair Anthony Sexton, Director Jason Gross, Monument Town Council member Marco Fiorito, Kiewit Project Manager Max McClean, Operations Manager Kiewit Infrastructure Mike McDonald, and President Mark Melville in front of the TMD Northern Delivery System (NDS) pump station at the ribbon cutting event on Aug 14. Director Amanda Carlton was unable to attend. Photo by Natalie Barszcz.

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

Other Water-related articles

Donala Water and Sanitation District, Aug. 15 – Board debates waiving term limits

By James Howald and Jackie Burhans

At its August meeting, the Donala Water and Sanitation District (DWSD) board discussed waiving its current policy which allows directors to serve a maximum of two four-year terms. Removing term limits would need approval from the district’s voters. The board heard operational reports. Directors Bill George and Ed Miller were excused from the meeting.

Term limit policy considered

General Manager Jeff Hodge told the board that the current policy limiting directors to two four-year terms could lead to discontinuity where long-term projects, such as the district’s participation in the Loop water re-use effort, were concerned, and made it hard to find candidates to serve on the board. He asked the board to consider putting a waiver to the term limit policy before the voters in February.

Board President Wayne Vanderschuere said previous boards had considered changing the term limit policy, but the policy is difficult for small districts. He said he would be affected by retaining or changing the policy and would recuse himself from any votes.

Director Kevin Deardoff said it was hard to find people to run for seats on the board and he would support removing the limit of two terms.

Director Scott McCullough said he supported term limits in general and would not like to see the same people serving on the board forever. He asked if it was possible to extend the terms beyond four years but retain the limit to two terms. Hodge said the state of Colorado allowed only a limit to two terms or no limit whatsoever.

Vanderschuere said he agreed with McCullough on a philosophical level but thought waiving the term limit made sense for DWSD. The current policy allows a director to serve additional terms after four years off the board. He suggested the required time off the board could be reduced. He asked for the issue to be tabled until September when all the board members would be present.

Hodge said he would discuss potential alternatives with the district’s lawyer.

Operational reports

In his financial report, Hodge said the district’s finances were in better shape than they were at the same time in the previous year. He said $700,000 in water sales were needed over the remaining half of the year to meet the estimated revenue budgeted, and he expected that amount to be met. The district was not using water from its Willow Creek Ranch property and was not paying Colorado Springs Utilities to convey, treat, and deliver that water, which represented a savings of about $900,000. Bond payments were made on schedule, he said.

The board tabled a vote on the financial report until its September meeting, due to the excused absence of two members.

In his manager’s report, Hodge commented on the special legislative session underway at the state capital to discuss reducing property taxes. Potential changes to the property taxes collected by counties would impact DWSD’s finances, Hodge said.

Progress was being made on Well 16A and on the repairs to the district’s water tanks, Hodge said.

Brett Gracely, a project engineer with LRE Water, told the board that he was considering how DWSD could store water in Turquoise Lake or in the Willow Creek Reservoir due to the Pueblo Reservoir nearing its capacity.

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The next board meeting is scheduled for Thursday, Sept. 19 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

El Paso County Regional Loop Water Authority, Aug. 15 – Board amends contract with Merrick and Co.

By James Howald

In August, the El Paso County Regional Loop Water Authority (EPCRLWA, or the Loop) board met to amend its contract with Merrick and Co., the company which provides the Loop with project planning and workflow management. John Kuosman, a water practice leader with Merrick and Co. who serves as the Loop’s liaison with Merrick, gave the board a progress report. The board scheduled a public hearing on its budget. The meeting ended with an executive session after which no action was taken.

Contract with Merrick updated for next phase

Loop board President Jessie Shaffer asked the board to approve an amended contract with Merrick that had been reviewed by Spencer Fane, the Loop’s legal advisors.

Kuosman told the board that its current contract with Merrick focused on the first phase of the project: creating a water authority and embodying the commitments of participating districts in legal agreements. Now the project is moving to its next phase, he said, and its contract needed to be amended to address land acquisition processes, preliminary design issues, and the development of an operations model. Kuosman said his job was to work with the Loop authority and the hired consultant community to move the project forward. “Our job is to be the extension staff to execute that work,” he said.

Kuosman said he planned to schedule a workshop with the Loop board and the Special District Association of Colorado (SDAOC) in September. The SDAOC serves the interests of special districts in Colorado by assisting them with research, communication legislative input, and administrative support.

The board discussed updating its contract with Merrick at length at its previous meeting in July. That meeting was reported in the August issue of OCN here: https://wp.ocn.me/v24n8loop/.

The board voted unanimously to approve the amended contract.

Next steps

Kuosman told the board that he was discussing water quality testing with JVA Inc., the company the Loop has hired to design the water treatment portion of the project.

Kuosman said he had scheduled a meeting with EPCOR, a company that invests in infrastructure projects. EPCOR’s perspective on the funding options for the Loop would be available to the board before its meeting with SDAOC in September.

Kuosman told the board he met with Vidler Water, a private-sector water resource company that develops water supplies in areas where water is scarce, and was continuing his discussion with Jenny Bishop of Colorado Springs Utilities concerning ways that it could partner with the Loop.

Public hearing on budget scheduled

The board voted to schedule a public hearing on its 2025 budget for Nov. 21.

Executive session

The meeting ended with an executive session to receive legal advice from the Loop’s attorney and to discuss negotiating positions concerning the Sundance pipeline owned by the Cherokee Metropolitan District. No votes were taken after the executive session.

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The next regular meeting is scheduled for Sept. 19 at 9 a.m. Regular meetings are held on the third Thursday of each month at 9 a.m. at the Monument Town Hall at 645 Beacon Lite Road. Workshop meetings are held the first Thursday of each month at 9 a.m. at the Cherokee Metropolitan District offices at 6250 Palmer Park Blvd., Colorado Springs. Please see loopwater.org or call 719-488-3603 to verify meeting times and locations.

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

Other Loop Water Authority articles

Monument Sanitation District, Aug. 21 – Board approves four-day work week

By Jackie Burhans and James Howald

In August, the Monument Sanitation District (MSD) board met to discuss moving to a four-day work week and to hear an operational report from District Manager Mark Parker.

Parker told the board the MSD office typically receives only one or two calls on Friday, and he recommended transitioning to a four-day work week, with the office open Monday through Thursday. The office phone is programmed to ring forward to his cell phone, Parker said, so emergencies and requests to locate utilities would still be dealt with quickly. A four-day work week would save the district a little bit of money. Parker pointed out that Woodmoor Water and Sanitation District, Mountain View Electric Association, and Black Hills Energy all used four-day weeks.

The consensus of the board was that, starting Sept.1, the MSD office would be open from 6:30 a.m. to 4:30 p.m. Monday through Thursday, and closed on Fridays.

Manager’s report

In his manager’s report, Parker updated the board on the progress that had been made bringing the district’s website into compliance with the requirements of HB 21-1110 and with the requirements of the Americans with Disabilities Act. Streamline, the company hired to update the webpage, had a new version online. Initially the plan was for the new page to use the same URL as the old page, but it was decided to use a new URL for the updated page, which can be found at https://MonumentSanitationDistrict.org. The old page will be set to forward users on to the new page for 90 days, Parker said, and then the old page will be deleted.

Parker said that the decision to move to a local accounting company, which he announced at the previous board meeting, had to be reversed because the local company was not able to meet MSD’s requirements. Haynie & Co. will continue as MSD’s accounting company, Parker said.

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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 Sept. 18. See https://MonumentSanitationDistrict.org. For a district service map, see https://MonumentSanitationDistrict.org/district-map. 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

Triview Metropolitan District, Aug. 22 – 2023 budget amended; 2023 audit presented; district opposes initiatives 50 and 108

By Natalie Barszcz

At the Triview Metropolitan District (TMD) meeting on Aug. 22, the board held public hearings to amend the 2023 budget and accepted the 2023 audit draft presented by Haynie and Co. for the district’s audited financial statements. The board approved multiple resolutions relating to the 2023 budget amendment and the audit, and the 2024 employee handbook.

The board adopted a resolution in opposition to statewide proposals for initiatives 50 and 108 and approved an agreement between the district and the Town of Monument (TOM) to receive Highway User Tax Funds (HUTF). The board held an executive session to discuss water and land acquisitions, and potential development incentives and intergovernmental agreements.

Treasurer/Secretary James Barnhart was excused.

2023 budget amendment

District Manager James McGrady said the 2023 budget requires amendments because projections of how much money will be spent is a bit of a guess, and various things can happen. The 2023 budget projected in October 2022 allocated about $7.999 million for the General Fund/Capital Projects Fund, but in reality, it needed to be about $8.1 million to cover expenditures, so about a $100,000 difference.

About $25.254 million was allocated for the Water and Wastewater Enterprise Fund/Capital Projects Fund but the district actually spent about $29.146 million, with most of the additional funds used to purchase materials in advance for the Northern Delivery System. He requested the board approve the 2023 budget amendment for the General Fund/Capital Projects Fund and for the Water and Wastewater Enterprise Fund/Capital Projects Fund to balance the books before the 2023 audit is presented for approval.

The board approved Resolution 2024-08, amending the 2023 budget.

2023 audit presentation

Audit Manager Greg Ingalls of Haynie and Co. presented the 2023 audit and said his audit partner Christine McLeod had some small items to complete before the audit can be finalized. The opinion will be unmodified based upon the testing procedures and would be issued upon acceptance of the draft audit.

District Accountant Kathy Fromm, of Fromm and Co., said the audit is subject to final review for some open items.

The board accepted the draft audit subject to final audit review with direction to staff to file the audit with the state.

District opposes statewide ballot initiatives

District counsel George Rowley of White Bear Ankele Tanaka and Waldron law firm said two statewide proposed initiatives 50 and 108 have been approved by Secretary of State Jena Griswold and will likely be on the ballot in November. A special legislative session has been called to try to appease the people who have sponsored the initiatives and get the sponsors to remove the initiatives. Rowley said:

  • Initiative 50 would amend the Colorado Constitution to limit property tax growth to 4% per year and would require a statewide vote for any increase above that percentage, but in many years natural inflation has been more than 4%.
  • Both initiatives turn local government budgeting decisions for “special districts” such as water/wastewater and fire districts, over to a statewide voter decision.
  • It is unknown how Initiative 50 will be applied and although Initiative 108 is a little less scary, the cuts would be significant and require the district to cut back.
  • Initiative 108 reduces the residential property tax rate from 6.7% to 5.7% and the commercial property tax rate from 27% to 24%.

The district is opposed to these proposals and the statewide solution that would be devasting to most districts, Rowley said. If Initiative 50 passes, reducing tax growth to no more than 4% per year, it would halt government financing from general obligation bonds, and districts would not be able to predict budgets and pledge revenues. It would paralyze a lot of municipal financing within the state, because the 4% cap on tax growth applies to both residential and commercial, and it does not differentiate between new growth increasing the tax base or inflation, said Rowley.

President Mark Melville said with all the commercial growth coming into the district, the tax cap would cripple the district, and TMD would not see the revenue for years. If this initiative passes, anyone needing to build a pipeline will be doomed to begin a project without bonds. The district has roads to maintain and the expense of snow removal, but luckily TMD is trailing off on capital improvements, he said.

Vice President Anthony Sexton said the initiatives have been developed for old neighborhoods in Denver that have no new growth.

McGrady said that for example, the addition of a $50 million warehouse in the district would leave the district with no choice but to roll back the mill levy on the whole district to remain within the 4% cap. The measures will cripple special district fire departments that typically have a lot of debt, he said.

Water Attorney Chris Cummins said the initiatives are not written for local governments but as a populist measure to reduce taxes. If these measures had already been in place, the district would not have been able to build the NDS. However, the district had good financial planning, with its revenue bonds, and built in the greatest cycle of growth, particularly in the housing market. The property tax revenues went up and up with growth, and the board responded by lowering the mills back down for the residents, avoiding collecting all of the property tax revenue available. The district was able to build new infrastructure and purchase water rights with the addition of 150-200 homes per year. A 4% cap on tax revenue would restrict growth and services in the future, he said.

The board approved Resolution 2024-10, opposing the ballot initiatives.

2024 employee handbook

Michelle Fergusson of Ireland Stapleton Pryor Pascoe PC law firm said the key goal was to update the 2024 Policy and Procedures Employee handbook with the prolific number of changes made by federal and state employment laws over the past few years. The handbook has significant updates regarding the drug and alcohol policy, specifically for licenses and marijuana, vehicle requirements for personal and district-owned vehicles, discipline steps and termination, updated language for the FAMLI, a state benefit offering Colorado workers access to paid sick leave, with some incentive changes to the district’s own sick leave and vacation policies, said Fergusson.

McGrady said the old policy manual seemed geared around employees remaining with the district for only five years, but most employees have remained far beyond that tenure.

The board approved resolution 2024-09 adopting the handbook effective Sept. 1.

Highway Users Tax Fund agreement

McGrady said the Highway Users Tax Fund (HUTF) is a gasoline tax (.43 cents per gallon) collected for the entire state into a kitty, then held and distributed to entities responsible for the maintenance of public roads, in most cases for the state, counties, and municipalities. The cut is dependent on how many lane miles each entity maintains, but as more electric vehicles are purchased, less tax would be collected in the future, but Colorado is growing and the HUTF is growing. The district currently has about 135 lane miles to maintain, and the TOM has about 50 miles to maintain, for a total of about 185 miles of lane roads. The TOM is collecting only about 60 miles of revenue per year, and some of those roads are within TMD. The TOM is receiving about $300,000 annually for 60 miles but should be receiving about $900,000 annually from the HUTF if the TMD roads were included.

Rowley found a similar intergovernmental agreement (IGA) between a county in southwest Colorado and a metro district that had to maintain a lot of lane miles. A proposed IGA between TMD and TOM to allow a share back to the district for future road maintenance would be “free money” to really help the district without hurting the TOM. The district will calculate the total lane miles for both entities and include an additional 5% reimbursement to the town. The district maintains its own roads, represents about 60% of the Monument population, and has not previously been included in the town’s calculations for the HUTF, said McGrady.

The board approved McGrady and Rowley presenting the HUTF IGA agreement to the TOM for review and consideration, with a correction to the calculating line mile formula.

Higby Road update

McGrady said the 12-inch main pipeline under Higby Road had been completed. Due to an application error during the curing process, the asphalt overlay patch cured with a wavy appearance. The patch will be re-milled and sealed by the contractor at no additional cost to the district.

Sheffield said the design plans for the Higby Road improvements are complete and ready to be submitted to the TOM.

Director Jason Gross said he thought the final design for the Higby Road project had already been approved by the TOM.

McGrady said the district submitted the design to the TOM, the TOM made comments on it, then the district addressed the comments and re-submitted the design. The TOM approved the plat for the Zeal for Living apartments access road for the right-of-way and the Town Council were only concerned about the width of the right-of-way, but not the width of Higby Road design. The design is being submitted to the TOM staff, but the Town Council will not vote again during the process, he said.

Buena Vista land annexation update

McGrady said the annexation agreement for the Chicago Ranch (293.96 acres located in Chaffee County, across the road from the Buena Vista Rodeo Grounds) was approved for annexation into the town of Buena Vista and recorded on Aug. 22, and everything will be finalized by mid-September. The annexation was necessary for constructing recharge ponds for the district to control water rights associated with the Arkansas Valley Irrigation Canal Co.’s Ditch and change the water rights to municipal uses for the district’s purposes. The district hopes to construct the ponds as soon as possible, he said. See https://wp.ocn.me/v24n8tmd.

Northern Delivery System update

McGrady said the NDS ribbon-cutting ceremony was a success. See article on page < 14 >.

Assistant Manager Steve Sheffield introduced Gary Potter, the new Water Utilities superintendent, and said he had attended multiple NDS start-up coordination meetings with Kiewit staff, Colorado Springs Utilities staff, Timberline staff, electricians, and other stakeholders. The start-up date on Aug. 20 was a success, and the district pushed water from Colorado Springs Utilities through the district’s system, but the system was shut down until Aug. 28 due to some issues with the chlorine pressure reducing valve, some programming, and power issues. The district is making progress testing the system and the team did not expect to “flip the switch and walk away from it, it’s a process,” said Sheffield.

Water utilities update

Sheffield said the district had the highest record of well water pumped in July, producing about 54.679 million gallons (MG) (the district water pumped in July 2023 was 28.926 MG). The district billed 52.241 MG to customers in July. The percent loss for July 2024 would have been 4.45%, but the additional water was used for backwashing and to flush five miles of the NDS line in preparation for the NDS pump station start up. The actual billable water was 51.3 MG, and about a 1.8% water loss, said Sheffield.

Sexton asked if the district would have less water loss in the future when the district receives its water via the NDS that feeds directly into the tanks versus moving water from wells to the tanks.

McGrady said there should be less water loss in the system as the district will not backwash nearly as much as it did when reliant on its wells. The district’s water will enter the NDS pre-treated via Colorado Springs Utilities and 40 new meters throughout the district are bound to be more accurate. “Everything is as tight as possible,” he said.

Assistant manager’s report

Sheffield said the following:

  • The district staff is working toward the final design for a new administrative office space/shop to be built on a site west of I-25 and northwest of Baptist Road. Several significant changes to the building layout have been incorporated into the design since the July meeting. The site purchase has yet to be finalized and approved by the board.
  • Repairs were conducted on the Earth Cam camera at the South Reservoir. The camera had “seized” due to a communication wire that was cut due to rubbing on a sharp metal edge.
  • Work continues with NES and RESPEC teams to develop plans for a new 1.5-million-gallon water storage tank to be located adjacent to the existing storage tank in “B Plant” in Promontory Pointe. Plans will be submitted to the TOM soon.
  • The sporting field booking schedule for the Sanctuary Pointe Park is up and running on the district website. The interface between the website and the payment and scheduling aspect was more complicated than anticipated, but demand for field time is strong and launching the platform was a high priority.

Snow truck requested

Superintendent Matt Rayno requested the board consider approving the build of a new plow truck for the district snow removal services. The dump truck outfitted with a plow and a stainless-steel bed to prevent salt erosion could be built and delivered in early 2025 for $257,000 (the new truck is a 2022 model). The truck would be used for snow removal 90% of the time but would also be utilized for landscaping. The district has three trucks that are about 22-25 years old, and one truck would be sold upon delivery of the new truck. The existing trucks were all purchased used, including the truck purchased in 2023.

McGrady said the district will need to be careful with the 2025 budget, and the truck purchase might be the vast majority of the Parks and Open Space capital expenditures next year. The district roadways are in good condition, and the district could back down on an overlay project next year, and/or delay playground equipment for a year. The district is building its own office/shop space and will need to vacate the leased office space at the end of 2025, and has minimal road infrastructure to complete, but “we will need to watch the pennies,” he said.

The board instructed Rayno to proceed with the build-out of a new truck for inclusion in the 2025 budget.

Executive session

The board moved into an executive session at 8:20 p.m., pursuant to Colorado Revised Statutes section 24-6-402(4)(a), for the purpose of acquisition of water/land, and 24-6-402(4)(b), for the purpose of determining 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 and intergovernmental agreements.

Sheffield confirmed that after the meeting returned to the regular session, no action was taken and the meeting adjourned at 9:40 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 Sept. 19 at 5:30 p.m. For meeting agendas, minutes, and updates, visit https://triviewmetro.com.

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

Other Triview Metropolitan District articles