Donala Water and Sanitation District, June 20 – Loop water reuse project discussed

By James Howald and Jackie Burhans

The Loop focuses on financing, member obligations, and easements
District decides to lease water
Operational reports

In June, District Manager Jeff Hodge gave the Donala Water and Sanitation District (DWSD) board a detailed update on the status of the water reuse project, often called The Loop, in which DWSD is an active participant, along with Woodmoor Water and Sanitation District and Cherokee Metropolitan District. The board also considered a recommendation from Brett Gracely, a project engineer with LRE Water, to lease surface water from DWSD’s Willow Creek Ranch to the Arkansas Groundwater and Reservoir Association (AGRA). (Arkansas in this instance refers to the Arkansas River, not the state.) The board also heard financial and operational reports.

The Loop focuses on financing, member obligations, and easements

Hodge told the board that The Loop leadership is drafting a Member Agency Financing and Contribution Agreement that will define the benefits and responsibilities of participating agencies. He mentioned that some of the agencies are seeing personnel changes that will affect who represents them on The Loop board. A “Go or No Go” decision is expected from participating agencies in September. The agreement will help The Loop get the bonds needed to complete the project, Hodge said. DWSD was slated to receive 500 acre-feet of water per year, roughly 13% of the water produced, at a cost between $20 million and $25 million. That amount is equal to the cost of drilling eight wells, Hodge said. He pointed out that the average productive life of a well is 40 years, but The Loop, which will allow customers to reuse return flows from DWSD’s treatment facility after they have made their way through the watershed to Fountain Creek, will have a useful lifetime closer to 100 years.

Recalling the history of The Loop, Hodge explained that when American Recovery Plan Act funds became available in 2021, The Loop’s board asked for $145 million, enough to complete the entire project, but received $4 million, enough to reimburse the seed money that participating agencies invested in the project. Initially, the participating agencies signed a Memorandum of Understanding to get the project underway, and then formed the El Paso County Regional Loop Water Authority

Hodge said The Loop was still discussing how it could partner with Colorado Springs Utilities, which has its own goals for water reuse. He also pointed out that some of the initiatives expected on the ballot in November could impact the financing for DWSD.

At The Loop meeting held earlier in the day on June 20, a contract was awarded to a company that will manage the acquisition of the easements needed by the pipeline that will convey The Loop’s water from Fountain Creek to customers in northern El Paso County. Purchasing the easements represents a risk for the project, Hodge said. See The Loop board meeting article on page < 17 >.

Board President Wayne Vanderschuere asked Hodge to get the agreement to the DWSD board for review as soon as possible so that the board would have enough time to review it thoroughly.

District decides to lease water

Gracely told the board that due to heavier than usual precipitation over the last year, some of the reservoirs where DWSD stores water are full, leading to the risk that some of DWSD’s water stored in those reservoirs might need to be released rather than delivered to customers. AGRA has a beneficial use for surface water from the Willow Creek Ranch owned by DWSD and stored in the Pueblo Reservoir. Permission was granted by the state’s engineer for AGRA to use a portion of DWSD’s water stored in the Pueblo Reservoir, Gracely said.

Gracely asked the board to give Hodge the authority to enter a revised or new lease with AGRA, subject to review by the district’s water counsel. The board voted unanimously to give Hodge that authority.

Operational reports

In his financial report, Hodge said water sales were on track to meet revenue goals in 2024. In 2023 abundant rainfall meant residents had less need to water lawns and gardens and that reduced the district’s revenue from water sales. Hodge anticipated that tap fees would generate higher than budgeted revenue because of a 44-home residential development planned by Classic Homes adjacent to the Big R Store east of I-25. Property taxes were being received as expected, Hodge said.

Hodge said legal review of the district’s agreement with The Loop would raise legal fees slightly, and upgrades to the district’s phone system would raise the large office equipment budget line item.

The board voted unanimously to approve the financial report.

Water Operator Ronny Wright told the board progress was being made in returning Well 16A to production. Issues with Well 1A were being analyzed, he said. Wright said he expected the repairs to the district’s water storage tanks to be complete before July.

On the wastewater side, Chief Waste Plant Operator Aaron Tolman reported E. coli numbers were down from the previous month at about 14% of the allowable level.

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The next board meeting is scheduled for Thursday, July 18 at 1:30 p.m. 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.

The Loop focuses on financing, member obligations, and easements

District decides to lease water

Operational reports

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