Woodmoor Water and Sanitation District, Aug. 14 – General manager reviews water resources

Four approaches to water resources
Construction contract awarded
EPCRLWA resolution passes
Tap fees due for review
Highlights of operational reports
Executive session

By James Howald

At its meeting in August, The Woodmoor Water and Sanitation District (WWSD) heard a presentation from General Manager Jessie Shaffer explaining the approaches to water resources the district could use to plan future needs. The board considered awarding a construction contract, voted for a resolution affirming the district’s participation in the El Paso County Regional Loop Water Authority (EPCRLWA) and launched an analysis of water and sewer tap fees. The board heard operational reports. Finally, the meeting ended with an executive session.

Four approaches to water resources

In response to a request from the board made at the previous meeting, Shaffer gave the board his thoughts on possible approaches the district could take to manage its present and future water sources with a focus on long-term sustainability.

If the district does nothing, Shaffer said, the Denver basin aquifers currently supplying customers will decline, with or without growth. More wells will need to be drilled and the cost of well drilling will escalate. The water pumped from aquifers will become more and more costly. Beyond a certain number of wells, it is hard to avoid well interference and it is harder to site wells, which can’t draw from outside the district boundaries. Long-term sustainability requires other sources, he said.

Shaffer characterized the next approach as “Go it alone”—by which he meant treating and transporting water from the Woodmoor Ranch without relying on any partnering water districts. This approach offers a sustainable supply of surface water, with the advantage that WWSD would retain complete control over its operations. The downside is affordability: The cost is likely to be near $180 million, which would be born entirely by WWSD ratepayers. Shaffer said this approach is not achievable due to cost.

The third approach Shaffer discussed involves relying on Colorado Springs Utilities (CSU) to convey, treat, and deliver water to WWSD customers. The short-term costs of this approach make it seem attractive, Shaffer said, but the long-term costs are higher than other alternatives, with a cumulative cost break-even point at nine years, and CSU could raise rates at any time so WWSD would lose control of its costs under this approach. Infrastructure to connect to CSU’s system would need to be built, and there are many fees that that would apply.

Finally, Shaffer discussed using a group approach and partnering with other districts. He said the EPCRLWA, in which WWSD is participating, is an example of this approach. A considerable challenge here is creating consensus among the partners, Shaffer said, but this approach offers economies of scale and sustainability.

Following the presentation, board President Brian Bush said the “do nothing” approach should be dropped as it violates WWSD’s mission to provide water to its customers on a sustainable basis.

Construction contract awarded

District Engineer Ariel Hacker told the board that the Monument Junction development currently under construction by Classic Homes has created a need for an additional pressure management zone within the district. The cost of building the new zone would primarily be paid by Classic Homes but some of the needed infrastructure would be installed beyond the boundaries of Classic Homes’ property to serve other WWSD customers, so WWSD would be responsible for a portion of the project. Classic Homes is responsible for installing a total of three pressure reducing valves and related pipelines, while WWSD is responsible for one valve and its pipelines, she said.

Hacker said three bids for the project were submitted but two contained substantial errors, so she recommended the third bidder, Asland Constructors.

Shaffer said that typically if a developer creates a need for additional infrastructure, the developer pays the associated costs, but in this case, since some of the work is off the developer’s property, Classic Homes approached the district and asked WWSD to manage the entire project, with Classic Homes paying WWSD for its portion of the project and adding a 20% contingency fee. Shaffer said if WWSD managed the entire project it would mean a single set of inspections, making the project more efficient.

The board voted unanimously to authorize awarding the contract to Asland Constructors. Bush asked that work not begin until Classic Homes had paid WWSD for its portion of the costs.

EPCRLWA resolution passes

The board voted unanimously in favor of a resolution formalizing WWSD’s participation in the EPCRLWA, informally known as the loop. Of the three other participating districts, Donala Water and Sanitation District has also signed a similar resolution and Cherokee Metropolitan District and the Town of Monument are expected to take the same step soon.

Tap fees due for review

Shaffer introduced Andrew Rheem of Raftelis, the company WWSD works with to model rates and fees and told the board he had asked Rheem last year to begin an analysis of the district’s tap fees.

Rheem said his goal was to ensure that growth in the district was paying its own way, explaining that there were some legal restraints on how tap fees would be used. For example, if they are used for debt service, the debt must be acquired due to development.

Rheem defined water and sewer tap fees as a one-time charge assessed to new customers when they connect to the district’s infrastructure for the first time or when they increase their service. New customers are paying for their share of the district’s capacity, he said. Currently, a new residence in WWSD’s service area pays $29,788 for a ¾-inch water tap and $10,390 for a sewer tap. Larger capacity taps pay a higher fee, he said.

Rheem explained three approaches to setting tap fees. The “buy-in” method is often used in districts where capacity is available and a new customer is buying into the existing system. The system is valued at its replacement cost in this method. The “incremental” approach is used where the existing system has little or no capacity for growth and the tap fees will be used to increase capacity. Finally, the “hybrid” approach when there is current capacity, but more is needed.

Rheem said his analysis would evaluate the maximum water and sewer tap fees under all three approaches and would recommend tap fees for all meter sizes.

Bush asked what timeframe would be used for the analysis, and Rheem said that was an open question. Bush said the board should avoid getting locked into something it does not want going forward.

The board voted unanimously to authorize Bush to sign a service agreement with Raftelis to complete the study.

Highlights of operational reports

Operations Superintendent Dan LaFontaine noted that the district’s customers were currently receiving surface water treated at the Central Water Treatment Facility.
LaFontaine said he had been investigating how stormwater was infiltrating the system and said he believed that, due to the rainy weather, a number of customers were using sump pumps to drain their basements and sending that water into the wastewater system where it would be treated. This is an illegal discharge, he said, adding water from basements should be distributed to the homeowners’ property.

Executive session

The meeting ended with an executive session to confer with legal counsel on questions relating to the EPCRLWA and to negotiations with CSU regarding the conveyance, treatment, and delivery of water.

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The next meeting is scheduled for Sept. 11 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.