dwsd – Page 4

2024 budget overview.
Water tank rehab contract awarded.
Effluent water lease extended.
Surplus VFD to be sold.
HMO testing moves forward.

By James Howald and Jackie Burhans

At its September meeting, Donala Water and Sanitation District (DWSD) General Manager Jeff Hodge and Accounts Payable specialist Christine Hawker presented a preliminary draft of the district’s 2024 budget. The board awarded a contract for rehabilitating the district’s water tanks, updated a lease to sell effluent water, and made plans to sell a surplus variable frequency drive (VFD). Finally, district staff updated the board concerning the district’s testing of hydrous manganese oxide (HMO) to reduce radium in its treated water.

2024 budget overview.

The preliminary budget presented showed an increase in total revenue from $6.86 million projected for 2023 to $7.60 million budgeted for 2024. Water sales and interest income are projected to increase in 2024. Property tax revenue for 2024 was projected to be $2.24 million; that number reflects a $600,000 decrease in the county’s assessment due to the possibility of Proposition HH passing. Hodge said the 2024 budget assumes the district will not see any increase in revenue from increased property taxes.

On the expense side, total operating expenses are estimated to increase from $4.92 million projected for 2023 to $6.24 million budgeted for 2024. In the 2024 budget, $365,351 was moved from administrative expenses to operating expenses because upgraded accounting software enables better tracking of contract services. Utility costs for 2024 are budgeted to increase by $257,000 due to an estimated 10% increase in electrical costs by Mountain View Electrical Association. Engineering costs and well maintenance costs are also projected to increase in 2024.

Total capital and bond expense is estimated to increase from $3.44 million projected for 2023 to $4.31 million budgeted for 2023.

A total of $3.57 million was budgeted for capital improvement projects in 2024, with rehabilitation of three storage tanks, filter media rehabilitation at the R. Hull treatment plant, and funding for “The Loop” water reuse project at the top of the list.

Hodge emphasized that water and sewer revenue would cover the district’s operating expenses, and he estimated DWSD would have $8 million in reserves.

Board President Wayne Vanderschuere said the budget would need to be presented to the state by Oct. 15 and the board would hold a special meeting on Oct. 12 to formally accept a final 2024 budget.

Water tank rehab contract awarded.

Hodge recommended the board award a contract for water tank rehabilitation to Viking Painting LLC, which bid $1.05 million to rehabilitate the district’s three tanks. The contract had previously been awarded to Swedish Industrial Coatings LLC, but that company was unable to do the work.

The board voted unanimously to award the contract as Hodge suggested.

Effluent water lease extended.

Hodge asked the board to consider extending for two years a contract for DWSD to lease up to 6.5 acre-feet of effluent water per year to Letha Robison. The state of Colorado requires pond owners to replace water lost to evaporation. Hodge explained the new contract would raise the price of the water from $150 per acre-foot to $300. The board voted unanimously to extend the contract.

Surplus VFD to be sold.

Hodge told the board he had a buyer for a VFD the district is taking offline. VFDs control the operation of the motors that drive well pumps and allow them to ramp up or down smoothly rather than being completely on or completely off, thereby saving energy costs and reducing the wear and tear on pipelines. Water Operator Ronny Wright said he expected the VFD to be sold for $7,500.

HMO testing moves forward.

Wright updated the board on the status of the demonstration project the district is running to prove that treatment with HMO will reduce to acceptable levels the radium in the water delivered to customers. Wright said samples treated with HMO were taken between Sept. 11 and 17 have been submitted for testing. Two more samples will be taken in mid-October and in November, he said, adding he expected results by late December. When all results are received, the district will have 30 days to send the results to the state. Wright said he anticipated the state would respond by April, allowing DWSD to proceed with the design of an HMO-based radium treatment process.

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The next meeting is scheduled for Oct. 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.

Well 16A nears completion

Hodge told the board that drilling and hardware installation are complete for Well 16A, which will pump from the Arapahoe aquifer. Bids are out for drilling a pipeline to connect the well to the district’s infrastructure and to construct a vault for the well. The final bid is for electrical work, Hodge said.

Roger Sams, of GMS Engineering Inc., said the electrical work consisted of conduits, wiring, and installation of some equipment that has been received. There were two bids submitted for the work, Sams said: one from McDade-Woodcock Inc. for $134,551 and a second from Sun Valley Contractors LLC for $94,406. Sams advised the district to award the contract to Sun Valley Contractors.

The board voted unanimously to award the contract to Sun Valley Contractors.

Details of operational reports

Hodge told the board that water sales had increased during July, and much of the revenue lost due to exceptionally rainy May and June had been recovered. He gave a generally positive picture of the district’s finances, remarking that electrical expenses budgeted at $73,000 would be closer to $50,000 due to the lower water usage in previous months. Repair and maintenance was also under budget, he said.

Hodge said the district was rebidding the project to recoat the district’s water tanks.

Commenting on the district’s recent changes to billing for sewer service, which took effect in July, Hodge said only four calls from the district’s 2,900 customers had been received, with two callers unhappy with the changes and two happy. Hodge said July billing for sewer service was up $20,000.

Hodge said only 57 meters remained to be replaced out of the 2,819 in the district. He noted that the new meters were better integrated with the district’s billing software, allowing office staff to have accurate real-time data to assist customers.

Summarizing progress by the El Paso County Regional Loop Water Authority, of which DWSD is a participating district, Hodge said he noticed Colorado Springs Utilities (CSU) was becoming more flexible in the options it was willing to consider for how the loop project might use CSU’s infrastructure. The loop might be able to save money by using some of CSU’s infrastructure instead of building its own, he said.

Hodge also mentioned that due to staff changes, he was now the Operator in Responsible Charge (ORC) for the Upper Monument Creek Regional Wastewater Treatment Facility.