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OCN > 2310 > Woodmoor Water and Sanitation District, Sept. 18. Contracts awarded for infrastructure.

Woodmoor Water and Sanitation District, Sept. 18. Contracts awarded for infrastructure.

By James Howald

Construction contracts were the focus of the Woodmoor Water and Sanitation District (WWSD) at its September meeting. The board awarded two new contracts and changed the award of a third to a different company. It continued the discussion of water and sewer tap fees that began in its previous meeting, hearing a presentation from the consultants that provide the district with rates analysis. The board also heard operational reports.

Two new contracts awarded.

District Manager Jessie Shaffer gave the board a summary of the scope of work included in the construction contract for the Well 22 pumphouse project. Well 22 is south of County Line Road and east of I-25, and the drilling was completed in July 2022. The project includes the construction of the well house, the installation of the well’s pump, motor, and drop pipe, and associated piping, electrical support, and controls.

Richard Hood, of JVA Inc., an engineering company that advises WWSD, told the board that four bids for the project were received and Native Sun Construction was the low bidder at $1.17 million. Hood said Paintbrush Hills Metropolitan District, Woodmen Hills Metropolitan District and the City of Boulder gave Native Sun Construction positive recommendations.

Hood recommended that the board award the contract to Native Sun Construction, and the board voted unanimously to do so.

Rachel Frei, of BB&A Water Consultants Inc., presented her recommendations for the drilling, construction, and testing of a new Dawson aquifer well, to be drilled on the site of the Central Water Treatment Plant (CWTP), which is on Deer Creek Road adjacent to the Lewis-Palmer Middle School football field.

Frei said the proposed well would be designed to a different standard than other WWSD wells. Previously, WWSD has used the municipal standard for its wells, Frei said, but the last long-range plan completed by the district allows for some new wells to be built to the standard for commercial wells, which typically use lower quality and less expensive hardware components. Additional savings result from using smaller drilling rigs, she said. Commercial grade wells are usually 77% less expensive than wells built to the municipal standard.

Frei estimated the new well would produce 25 gallons per minute. WWSD’s Arapahoe aquifer wells typically produce 200 or more gallons per minute.

Shaffer said the well would be a test case for the district. He pointed out the commercial standard involved a bit more risk but would provide a much lower cost per acre-foot of water produced. The proximity to the CWTP meant less would be spent on pipeline and on building to house the well.

Frei recommended that the contract be awarded to Winegar Well Service LLC, which bid $219,315 for the project. The board voted unanimously to award the contract as Frei suggested.

Contract re-awarded.

At its previous meeting in August, the board awarded a contract to install the infrastructure for a new pressure reduction zone required by the Monument Junction development to Aslan Construction. Classic Homes, the developer of Monument Junction, was to be responsible for a portion of the project, but in August the WWSD board believed that Classic Homes would have WWSD manage the project and be reimbursed by Classic Homes for its portion of the work. Details about the original award of the contract can be found in a previous issue of Our Community News here: https://www.ocn.me/v23n9.htm#wwsd.

In September, Shaffer told the board there had been new developments. Classic Homes opted to use their own contractor to do its share of the work, he said, and Aslan Construction notified him that it had made a $170,000 error in its bid. As a result, Aslan withdrew its bid, Shaffer said.

Shaffer said he did not recommend rebidding the project. He recommended that the board award the contract to Midcity Corp., which had bid on the work along with Aslan.

After some discussion to sort out the consequences of Classic Homes choosing to use its own contractor rather than let WWSD manage the entire project and be reimbursed, the board voted unanimously to authorize Shaffer to move forward with Midcity’s bid of $438,722.

Tap fee debate continues.

At its previous meeting, the board heard a presentation on tap fee strategy from Andrew Rheem of Raftelis, a company that advises WWSD on rates and fees. At that meeting, the board voted to authorize Raftelis to continue its work, begun a year ago, to help determine how WWSD should set its water and sewer tap fees to ensure the district can fund the cost of service delivery and capital improvements looking out 10 years.

At the September meeting, Rheem and his colleague Harold Smith presented some preliminary results. They said they had developed scenarios that addressed issues such as how WWSD will finance its portion of the water re-use project often referred to as “The Loop,” which will build infrastructure to allow WWSD and other participating water districts to divert water from Fountain Creek, including treated effluent, and return it for reuse by customers.

Rheem and Smith said they estimated the final buildout of the WWSD service area would occur by 2042, with 6,500 connections to the water distribution system and 6,200 connections to the sewer system. They calculated the Replacement Cost New (RCN) of those systems to be $134.87 million. RCN is the amount it would cost to build systems of equal capacity at today’s prices and is a factor when tap fees are considered as a fee to buy a share in an existing system.

The discussion that followed raised some questions about the assumptions used to calculate the RCN. Operations Superintendent Dan LaFontaine pointed out that developers build pipes at their expense that are later conveyed to the district and asked how that was built into the RCN calculation. Other issues were how $7 million in recent capital improvements were calculated into the RCN, and how to account for the debt incurred by the purchase of Woodmoor Ranch, the debt service for which is paid by district customers every month in the form of the $40 per month Renewable Water Infrastructure Fee.

Uncertainty about how The Loop water reuse project would be financed—with revenue bonds or general obligation bonds that would require a vote for approval—complicated the issue of future tap fees.

Rheem and Smith presented a case for raising water tap fees, which are one-time fees paid when a new building is connected to the water distribution system, by $12,000 to $42,000. Board President Brian Bush argued that increase could not be made in one year. He also pointed out that federal and state regulations governing water quality were not likely to remain unchanged for 10 years and new regulations would impact the cost of delivering water to customers. Shaffer said the increase suggested by Rheem and Smith would raise objections on the part of developers.

The board did not vote following the discussion. Rheem and Smith said they would continue to work on their analysis, taking into consideration the questions raised.

Highlights of operational reports.

  • In his financial report, board Treasurer Roy Martinez said that revenue from water sales was down due to the unusually rainy summer and spring.
  • The 12-month rolling average for unaccounted water is 5%, which is low by industry standards.
  • 1,400 of the district’s residential water meters have been replaced with newer meters that are better integrated with the district’s billing system and support advanced functions such as helping customers avoid unexpectedly large water bills by notifying them when there is a leak on their property.
  • WWSD is issuing water taps for the west side of the Monument Junction development.

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The next meeting is scheduled for Oct. 9 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.

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