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El Paso County Regional Loop Water Authority, Nov. 21 – Board approves 2025 budget

By James Howald

In November, the El Paso County Regional Loop Water Authority (EPCRLWA, or the Loop) board held two special meetings on the same day. The first special meeting consisted entirely of an executive session. The agenda for that meeting gave a very general reason for the executive session: to confer with an attorney to receive legal advice on matters that may be subject to negotiations.

At the second special meeting, the board held a public hearing on its proposed budget for 2025 and heard an update from John Kuosman, a water practice leader with Merrick and Co., who serves as the Loop’s workflow manager. Nicole R. Peykov, the Loop’s attorney, asked the board to approve two resolutions addressing administrative matters.

2025 budget squared away

Board President Jessie Shaffer opened a public hearing on the Loop’s 2025 budget. There were no comments from the public, and the hearing was closed. The board voted unanimously to approve the 2025 budget and, in a separate vote, appropriated the funds needed.

Progress report

Kuosman told the board that he had met with the El Paso Board of County Commissioners to thank them for their support of the Loop. The commissioners played an important role in the launch of the Loop by awarding it $4 million in funds from the Biden administration’s American Recovery Plan Act (ARPA). Kuosman said he told the commissioners how the remainder of the ARPA funds would be spent, and they asked for a written summary of where the Loop stands by Dec. 6. Kuosman offered to draft that response and the board authorized him to do so.

Kuosman said Requests for Proposals (RFPs) were being drafted to address the planning and financing needed to move the Loop from its current conceptual design phase to a preliminary design. The focus of the RFPs would be on the water treatment portion of the project, he said. The board gave Kuosman permission to proceed with the RFPs.

Kuosman also said he was discussing issues with Vidler Water Co. Inc., and he believed a non-disclosure agreement would be necessary to cover those talks. Vidler Water develops water supplies.

Peykov asked the board to approve two resolutions: an annual “administrative matters” resolution that covers procedures and directives for the Loop’s consultants and a resolution that increases the fee that the board can charge for Colorado Open Records requests to $41 per hour. The board voted in favor of both resolutions.

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The next regular meeting is scheduled for Dec. 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 El Paso County Regional Loop Water Authority articles

El Paso County Regional Loop Water Authority, Oct. 17 – Board hears financial reports

By James Howald

In October, the El Paso County Regional Loop Water Authority (EPCRLWA, or the Loop) board received the results of its 2023 audit and a report on its monthly finances. John Kuosman, a water practice leader with Merrick and Co. who serves as the Loop’s workflow manager, gave the board an update on his activities. The board considered a request from one of its providers to address a potential conflict of interest regarding the Loop’s law firm Spencer Fane.

The Cherokee Metropolitan District was represented at the meeting by Kevin Brown, who replaces Amy Lathen as the Loop’s treasurer.

2023 audit receives clean opinion

Kath Fromm, of Fromm & Co., the Loop’s accountant, told the board that the audit of its 2023 finances had received a clean, unmodified opinion and she had filed copies of the audit report with Colorado’s Department of Local Affairs and other states agencies as required. The board voted unanimously to accept the audit report.

Fromm said she had sent the board members copies of a draft budget for 2025 and recommended they hold a public hearing on it at the board meeting in November.

Board President Jessie Shaffer asked Fromm when the Loop would be reimbursed by the El Paso Board of County Commissioners (BOCC) for expenditures that are covered by the money the BOCC received from the American Recovery Plan Act (ARPA). Fromm said she had submitted a reimbursement request on behalf of the Loop and she would check with the BOCC about the timeframe for reimbursement.

Shaffer listed the invoices submitted to the Loop in October:

  • Colorado Water Congress dues, $2,050.
  • Fromm & Co., $5,026.
  • JVA Inc., $3,230.
  • Spencer Fane, $7,608.

The board voted to authorize payment of the invoices.

Progress report

Kuosman told the board that he had worked with Fromm on the draft budget for 2025, and it reflects financial requests from participating water districts beyond the initial $4 million that ARPA provided for the project. He will meet with the county to discuss the Loop’s projected costs for engineering, design, and land acquisition for 2025. He said those projected costs would be used by the county to encumber the ARPA funds that the county disburses.

Kuosman said he was brainstorming with Vidler Water Co. Inc. and Tallgrass Water, a water infrastructure company, concerning how to connect the Loop’s pipelines with existing infrastructure.

Potential conflict of interest resolved

Nicole R. Peykov, the Loop’s attorney, told the board that her firm, Spencer Fane, represents a subsidiary of EPCOR in another state. EPCOR is one of the Loop’s partners and has asked the Loop to provide a waiver regarding any potential conflicts of interest, which Peykov said were unlikely to occur. The board voted unanimously to approve a letter Peykov drafted waiving EPCOR from any liability arising from potential conflicts of interest.

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The next regular meeting is scheduled for Nov. 21 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

El Paso County Regional Loop Water Authority, Sept. 19 – Board postpones non-disclosure agreements

By James Howald

The El Paso County Regional Loop Water Authority (EPCRLWA, or the Loop) board met briefly in September to hear a progress report from John Kuosman, a water practice leader with Merrick and Co., who serves as the Loop’s workflow manager. Board President Jessie Shaffer gave a financial report. The meeting ended with an executive session after which no action was taken.

Madeline Vandenhoek, the interim town manager for the Town of Monument, replaced the previous Town Manager Mike Foreman. The Cherokee Metropolitan District did not have a representative at the meeting.

Progress report

Kuosman told the board he had sent a letter to Colorado Springs Utilities (CSU) asking for its timeline on allowing the Loop to use the Southern Delivery System pipeline to convey the Loop’s water and to use the Edward W. Bailey Water Treatment Plant to treat its water. The Loop has been trying to negotiate the use of CSU’s infrastructure for several months without reaching an agreement. Kuosman said he thought CSU could be open to sharing resources with the Loop at the end of 2025.

Kuosman said three of the Loop’s providers—EPCOR, a financing company, Vidler Water Company Inc., which develops water supplies, and Tallgrass Water, a water infrastructure company—had requested the Loop board sign non-disclosure agreements (NDAs) with them to protect their financial estimates. Kuosman said he and Nicole R. Peykov, the Loop’s attorney, recommended waiting before signing the NDAs provided in the board packet for the meeting. In response to Kuosman’s recommendation, the board tabled its vote on the NDAs.

Financial report

Shaffer listed five invoices the Loop had received in the last month from providers:

  • Fromm & Co., $592.
  • JVA Inc., $5,268.
  • Kimley Horn, $1,780.
  • American Co., $12,010.
  • Spencer Fane, $4,204.

The board voted unanimously to approve paying the invoices.

Executive session

The meeting ended with an executive session to receive legal advice from the Loop’s attorney on negotiating positions regarding the use of the funds remaining from the $4 million American Recovery Plan Act (ARPA) grant the Loop received from the Biden administration via the El Paso Board of County Commissioners. No votes were taken after the executive session.

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The next regular meeting is scheduled for Oct. 17 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 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

El Paso County Regional Loop Water Authority, July 18 – Board considers new roles for Merrick and Co.

By James Howald

The El Paso County Regional Loop Water Authority (EPCRLWA or the Loop) board met in July to hear to hear suggestions for next steps from John Kuosman, a water practice leader with Merrick and Co., who also serves as the Loop’s project planning and workflow manager, and to consider a new contract between the Loop and Merrick. Board President Jessie Shaffer presented invoices from the previous month. The board also held an executive session, which was attended by representatives from all the participating districts, after which no action was taken.

Will Colorado Springs Utilities play a role?

Kuosman told the board that the option for Colorado Springs Utilities (CSU) to have a near-term partnership with the Loop was still being considered. The possibility that the Loop could make use of CSU’s pipelines and its Edward W. Bailey Water Treatment Plant has been discussed for months. Kuosman explained that a formal request to CSU had been made by the Loop and he expected CSU to provide a timeline and preliminary costs by mid-August. The possibility that the Loop could make use of CSU’s pipelines and excess water treatment capacity has a direct impact on the final cost of the Loop’s project.

Kuosman also said CSU is studying indirect potable reuse of water. “Indirect potable reuse” refers to systems where treated effluent from wastewater treatment facilities is released into a stream or river and then an equal amount of water is diverted from the stream or river to be reused by customers. The Loop is an indirect potable reuse design, with effluent from treatment facilities in northern El Paso County being released into Monument Creek and traveling downstream to Fountain Creek, where it is diverted, treated, and then conveyed north to customers for reuse. Kuosman said there were lots of overlap between CSU’s long-term plans and the Loop. CSU’s goals aligned with the Loop, he explained, but CSU’s timeline was years behind the Loop’s schedule.

New contract with Merrick for next phase

Kuosman told the board that its current contract with Merrick covered activities up to the drafting of the Member Agency Financing and Contribution Agreement, which defines the benefits and responsibilities of the participating districts. That contract is now complete, he said, and the board should consider a new agreement with Merrick for services related to the next phase of the project.

He briefly discussed financing options for the Loop, which include use of municipal bonds, federal grants, and public/private partnerships. He said he was working with Piper Sandler on financing options and with EPCOR, a company that invests in infrastructure projects and recoups its investment over the long term.

Kuosman said that the Loop’s current contract with Merrick covered project planning, workflow management, and advancing a conceptual design to the point where costs could be estimated. He suggested that the contract with Merrick for the phase two scope of service should include:

  • Project management, including attending board meetings, meetings with other agencies, and weekly phone calls.
  • Securing easements for 30 miles of pipelines.
  • Development of a hydraulic model for the project that will be used by engineering companies.
  • Exploring federal grants, federal programs, and public/private partnerships.
  • Pumping and storage, treatment and processing, and pipeline designs.
  • Putting BBNA’s conceptual design into an operating agreement for the participating districts to sign.
  • Long-term staffing plans.

Invoices

In his financial report, Shaffer mentioned four invoices that had arrived in the last month:

  • JVA Inc. for $5,519.
  • Kimley Horn for $3,150.
  • Spencer Fane LLC for $4,202.
  • The American Company for $18,341.

The board voted unanimously to accept the financial report.

Executive session

The meeting ended with an executive session to receive legal advice from the Loop’s attorney and to discuss negotiating positions. The session was attended by representatives from the participating districts, to whom the Member Agency Financing and Contribution Agreement was presented. No votes were taken after the executive session.

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The next regular meeting is scheduled for Aug. 15 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