Triview Metropolitan District, Jan. 19 – Rate increases approved; NDS pipeline project moving along

Rate and fee increase discussion
Northern Delivery System update
District receives reimbursement
Reservoir level outlook
Higby Road widening project
Public Works, parks, and open space update
Public comments
Executive session

By Natalie Barszcz

At the Triview Metropolitan District (TMD) meeting on Jan. 19, the board approved water and wastewater rate increases effective Feb. 1, received an update on the Northern Delivery System (NDS) pipeline project, received multiple other updates, and held an executive session to discuss water delivery infrastructure and water and property acquisitions.

Director Marco Fiorito was excused.

Rate and fee increase discussion

District Manager James McGrady said a comprehensive rate study a few years ago looked at the district’s future revenue requirements. The study revealed that over the next five years the district needed to consider an annual 10% rate increase. An increase was implemented last year, and this year it is necessary based on capital projections, he said.

Vice President Anthony Sexton said that last year the increase did not equate to 10% due to the adjustment of the rate tiers. It actually lowered water rates for the bulk of the users.

In 2022 the Tier 1 water rate was increased by 2,000 gallons, from 6,000 to 8,000 gallons from previous years. Average ratepayers did not notice much of an increase. This year, the district does not have that option and a rate increase across the board is needed, Sexton said.

Director James Otis recommended the district include an explanation in the district newsletter to avoid any bad feelings. Two years ago, the rate increase blew up on social media, because everyone shut off their sprinklers due to an early freeze, and when they turned them back on the rates were higher, and that caused bad feeling until calmer heads prevailed, he said.

President Mark Melville asked what was causing the incremental rate increases over five years.

McGrady said the debt service, obtaining water rights, and the NDS pipeline project were causes. The district can pay for the vast majority of the NDS project with saved revenues, but it will deplete reserves. The budget has set aside about $16 million on the NDS, but the total cost of the project is about $20 million. The downturn in the housing market has also reduced revenue. It was common to sell 10-15 taps per month, and over 12 months that equated to 150-200 homes at $26,000 per tap ($2.6 million-$3 million), but now the district is selling half that amount of taps. The district needs to pay the debt service, replenish reserves, and recapture the expenditure because of the slowdown in the housing market, and that is what is driving the rate increases, he said.

Treasurer/Secretary James Barnhart said that on the plus side, the district will have renewable water, but we cannot change or predict the housing market.

Sexton said that after the study, the district enacted the recommended plan, but it ought to conduct another study, because at the time the district did not know the cost of the NDS project.

Water attorney Chris Cummins said that when he resided in the neighboring Donala Water and Sanitation District, a 30% increase year over year was implemented for two or three years when they were purchasing renewable water resources. The costs are significant, and in the long term the resources are extremely beneficial to the residents, but the residents need to know in the monthly newsletter—knowing ahead of time did soften the blow for Donala customers, he said.

Otis said unlike TMD, Donala residents have a distinct lack of commercial revenue, and the TMD residents are used to having a gravy train.

McGrady said at the conception of the NDS project the district was fortunate to know the cost, but that was when the plan was to use 24-inch pipe, and when neighboring partners were onboard. To make matters awkward, piping increased in price, so the pipe was downsized to 16-inch pipe, and now the district is without partners in the project. A study in 2024 would be beneficial, because sooner or later the development will go away. Without the tap fees from the hundreds of homes, the district would not have been able to obtain water rights and build the NDS.

Melville said in retrospect the district has made capital purchases when interest rates were low, some very timely decisions that were needed for the future of the district.

McGrady said that most of the bonds that were issued had less than 3% interest rates.

Melville opened a public hearing for the 2023 water and wastewater rates and fees, effective Feb. 1.

Resident Jason Gross said McGrady did a good job explaining the reasons for the rate increases.

Hearing no other comments, Melville closed public hearing.

Later in the meeting, the board approved 4-0 the 2023 increase in the district’s water and wastewater rates and fees.

Note: The new base rate (renewable water fee) increased by $3; the metering and billing charge per month increased by 50 cents. The volume rates per 1,000 gallons are: Tier 1: 0 to 8,000 gallons—increased by 62 cents. Tier 2: 8,001 to 20,000 gallons—increased by 95 cents. Tier 3: 20,001 to 30,000 gallons—increased by $1.69. Tier 4: 30,001 to 40,000 gallons—increased by $2.21. Tier 5: Over 40,000 gallons—increased by $3.27. The wastewater base rate will be $52.44 per month. For more information and the full rate table, visit: www.triviewmetro.com.

Northern Delivery System update

McGrady said the following:

The plans for the NDS pipeline are almost at 100% and the pump station plans are at about 90%.
The 16-inch pipe has been ordered, with about a 16-week delivery time. There are no other apparent supply delays.
The installation of the pipeline will begin at TMD plant “C” (behind the Sanctuary Pointe development) and be installed from there toward Roller Coaster Road beginning in April. The district expects to have all the pipe installed by September.
The convey, treat and deliver contract was expected to be delivered for comment by the end of January. The Colorado Springs Utility Board will then consider the contract in late February, followed by a review in March by the Colorado Springs City Council.
Segment “C” of the NDS pipeline, from Agate Creek Park through Homeplace Ranch and up to serve Jackson Creek filings 3-6 is complete. The project went over cost by $30,000 due to an additional bore of 30 feet at $500,000 per foot and the addition of poured concrete bores to secure giant reverse anchors to hold the pipeline in place and prevent sagging. The final cost was $1.699 million. See www.ocn.me/v22n12.htm#tvmd.

District receives reimbursement

McGrady said the district received about $537,147 from the Colorado Water Conservation Board (CWCB) to help reimburse the costs for the work the district completed on the south reservoir. The district has almost $300,000 remaining on a 2022 loan at 2.05%.

Cummins said CWCB is almost begging districts to build water storage facilities.

Reservoir level outlook

Cummins said the snowpack statewide is terrific, particularly in the upper and lower Colorado River basin where it is about 158% above normal. The Arkansas River basin is at about 72% and maybe better by late January. The levels emphasize how necessary it was for the district to purchase water rights diversification and the development of adequate storage, because the long-term forecast is wet and cold this winter, and depending on where the low pressure passes along the Front Range, somewhere the district owns water rights that will receive snow, he said.

Higby Road widening project

McGrady said he had met with the Lewis-Palmer High School principal, the D38 school board, and the administrative staff to discuss the widening of Higby Road. The district shared its design for the widening project, and it was generally happy with the district’s design, but the intersection has not been defined. A solid island with a pass through is included in the design from Bowstring Road to Jackson Creek Parkway. Students will be able to exit and travel east on Higby Road. It is a tough spot and school officials rejected a traffic circle that would create excessive traffic pouring into the neighborhoods along Bowstring Road, he said.

Otis said that the final plan needs to be idiot proof, unlike the traffic islands on Baptist Road that adults cannot navigate safely. The island should be just high enough that no one will plow over it, exactly like the islands along Jackson Creek Parkway, he said.

Gross said that he would prefer the district spend extra dollars during the widening of Higby Road to ensure the high school students can navigate the Lewis-Palmer High School area safely. One life of a student saved will be worth it, he said.

Public Works, parks, and open space update

Superintendent Matt Rayno said the following:

The Public Works Department had been clearing snow from the streets in Forest Lake Metropolitan District, another 3-4 miles of road in addition to TMD roads.
Some minor repairs and preventive maintenance were made to the snow removal equipment.
Public Works implemented additional webinar safety training for 2023, along with the regular weekly training.
Staff are working around the weather to put the landscaping back at Agate Creek Park.
Detention pond repairs and maintenance will be made in February, before the spring snow run-off begins.
At the end of February and in early March, the pre-emergent herbicide weed control application will begin.
Snow clearing is the priority in the winter.

Barnhart complimented the district on the snow clearing during the Jan. 17-18 storm, saying the Public Works staff did a phenomenal job.

Rayno said the crews worked 10-hour shifts to complete the major roads and side streets in the recent heavy storm, the staff are getting better educated with every storm, and he thanked the board for their compliments.

Otis asked about street parking problems during snow clearing operations.

Rayno said it happens just about everywhere, but it is the worst in Sanctuary Pointe where the roads are narrow, and due to the higher elevation of that neighborhood the roads become icy, and it is challenging. It is the homeowner’s responsibility to clear driveways and sidewalks, and the staff make every effort to slow down and avoid spraying snow back on sidewalks, he said. For the Public Works snow removal policy, visit www.triviewmetro.com.

Public comments

Resident Eric Lingle said at the request of a neighbor, the district installed signs in his neighborhood stating “private property of Triview.” That same neighbor has also planted shrubs in the space and had thrown dog excrement into the open space to deter trespassers. It appears they are attempting to claim the space as their private property along an unofficial path that runs up to a district park. Those same neighbors ran out of their house last night to scream at children sledding on the open space in an effort to enforce the signs.

Lingle said it is a joy to see kids playing in the woods, and it does not bother him, but his grave concern is that children go home and complain to parents, and that could escalate into a bad interaction between neighbors. He has not seen anyone misusing the path in 12 years, and other neighbors are not bothered by the children playing. He can, however, hear everything that is going on whenever there is an interaction on the path, and it would be beneficial if the district could incorporate the path into the greenbelt of the district and remove the signs, he said.

Executive session

The board moved into an executive session at 7:15 p.m., pursuant to Colorado Revised Statutes 24-6-402(4)(a), (b), (e), to discuss acquisitions, receive legal advice, to negotiations, regarding water delivery infrastructure, water, and property acquisitions.

The district administrator confirmed that no decisions were made or approved when the board returned to the regular meeting.

The meeting adjourned around 8:35 p.m.

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Meetings are usually held on the third Thursday every month at the district office at 16055 Old Forest Point, Suite 302. The next regular board meeting is scheduled for Feb. 16 at 5:30 p.m. For meeting agendas, minutes, and updates, visit https://triviewmetro.com.

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