Donala Water and Sanitation District, June 15 – Contractor selection process defined

RFQ document approved; contractors pre-qualified
Personnel policies updated
Operating rules and regulations reviewed
Energy costs to rise
Highlights of financial and operational reports
Executive session

By James Howald and Jackie Burhans

At its June meeting, the Donala Water and Sanitation District (DWSD) debated a Request for Qualifications (RFQ) document that will be used to select engineers and other contractors. Updates of the district’s personnel policies and operating regulations were discussed. Board President Wayne Vanderschuere discussed what he learned about energy costs at a recent Mountain View Electric Association (MVEA) meeting. The board heard details of financial and operational reports.

The meeting ended with an executive session to receive legal advice on DWSD’s Upper Monument Creek Regional Waste Water Treatment Facility (UMCRWWTF) Intergovernmental Agreement.

RFQ document approved; contractors pre-qualified

At the May board meeting, General Manager Jeff Hodge told the board that the district is receiving federal funds via the American Recovery Plan Act, and those funds bring with them a requirement to implement a standard process to evaluate contractors that aligns with federal regulations. He presented a draft of an RFQ form to be used when evaluating contractors. The board voted to refine the form and make a final decision at its next meeting.

Following discussion at the June meeting, the board committed to use the RFQ form as presented.

Hodge said four contracting companies had been evaluated using the new process. He presented the evaluations of Merrick & Co., Kimley-Horn, Meyer & Sams Inc. and LRE Water. All four companies scored between 95 and 100 points using the new evaluation process.

Hodge explained these companies were now pre-qualified to be awarded contracts up to $60,000 without further evaluation. Each company had its own areas of expertise, he said.

The board voted unanimously to approve the RFQ document and to add the four companies to the district’s list of pre-qualified contractors.

Personnel policies updated

Madison Phillips, a lawyer with Cockrel Ela Glesne Greher and Ruhland, the law firm representing the district, presented the results of her review of the district’s personnel policy document. Phillips said she had made all the substantive changes requested by the board. She mentioned that the updated policies now used the Consumer Price Index in Denver only as a data point, allowing the use of other information to determine salaries. She also said the policy for time off now specifies Paid Time Off will be used first and when that is exhausted Short Term Disability leave will be used. When that ends, the employee will transition to Long Term Disability.

The board voted unanimously to approve the updated policies.

Operating rules and regulations reviewed

The board considered a new version of its rules and regulations, which govern all aspects of the district’s operations, including how to apply for service, how service will be measured, fees, penalties and charges, control of prohibited waste, and enforcement.

Phillips said some changes had been made to align the rules with changes to the Clean Water Act.

The board voted unanimously to approve the updated rules and regulations.

Energy costs to rise

During the directors’ comments portion of the agenda, Vanderschuere told the board that he attended the MVEA annual meeting, and that he had learned that Tri-State Generation and Transmission Association Inc., MVEA’s supplier of electrical power, will increase the wholesale price of electricity by 8% in 2023. Wholesale power costs are 66% of MVEA’s costs, since MVEA does not produce power itself. MVEA has not increased prices for residential customers in six years, he said, and it will try to cover the increased cost, but it will be difficult for them to do so.

Time of day billing, which charges MVEA’s commercial customers, including DWSD, higher rates at peak usage hours, will be a bigger factor, he said, adding that DWSD should concentrate on timing work to align with the lower-cost time periods. Vanderschuere said the price during peak hours was 24 cents per kilowatt hour and the price was 10 cents per kilowatt hour during the less expensive hours of the day.

Hodge pointed out that increasing energy costs are one of the reasons DWSD is adding variable flow devices (VFDs) to its wells. They reduce energy costs, he explained.

Vanderschuere said energy cost increase will be a factor in DWSD’s future budgets, and he thought the district should plan for the worst.

Highlights of financial and operational reports

Hodge said revenues for water sales were low—25% of what was expected midway through the year—due to the rainy weather. That will change during the summer months.
Hodge said moving to Piper Sandler Investment Bank saved DWSD $150,000.
Water Operator Ronny Wright said wells 1A and 8A have had VFDs installed. Well 14A was due to have a VFD installed on June 26. Well 16A, which is under construction, will also have a VFD installed. Energy suppliers are offering rebates up to $20,000 when VFDs are installed, and VFDs can be remotely managed by software to further reduce energy costs.

Executive session

The meeting ended with an executive session to receive legal advice concerning negotiations regarding the UMCRWWTF Intergovernmental Agreement.

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The next meeting is scheduled for July 20 at 9:30 p.m. so that a tour of UMCRWWTF can be held. 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.