Donala Water and Sanitation District, Feb. 20

Voters approve unlimited terms
Cost-of-service analysis confirms 5% rate increase
Manager’s report
Water report
March board meeting rescheduled
Executive session
Correction

By James Howald and Jackie Burhans

At its February meeting, the Donala Water and Sanitation District’s (DWSD) board heard the results of a special election held earlier in the month and a cost-of-service analysis. General Manager Jeff Hodge and Superintendent of Water Operations Ronny Wright delivered their monthly operational reports. The board rescheduled its March board meeting.

The meeting ended with an executive session.

Voters approve unlimited terms

Accounts Payable Specialist Christina Hawker presented the results of a special election held Feb. 4 to the board. By a vote of 54 to 39, the district’s voters removed the requirement that board members be limited to two consecutive terms on the DWSD board. The board put the issue before the voters due to the difficulty of finding experienced candidates willing to serve on the board on a volunteer basis.

Hawker said the seats held by board President Wayne Vanderschuere and Director Ed Miller are up for re-election in 2025. Removal of term limits means Vanderschuere and Miller can run again if they choose to do so. Hawker said the complete list of candidates would be known on March 4 and, if the number of candidates matches the number of seats available, the election, scheduled for May 6, would be cancelled.

Cost-of-service analysis confirms 5% rate increase

In November 2024, the board asked Todd Cristiano, a consultant with Raftelis, a company that does financial modeling and rate studies for local governments and utilities, to analyze DWSD’s rates with an eye to determining if they cover the cost of delivering water and sewer service and upcoming capital improvement projects. At that time the board had considered rate increases as high as 10% but had settled on a 5% across-the-board increase and it wanted Cristiano to determine if the lower increase would be adequate.

Cristiano told the board he had studied how much revenue DWSD needs going forward, whether the rates are fair to all customers and if rates would deliver revenue stability. He noted that the district’s sewer service reserves were somewhat behind the water service reserves.

Cristiano said he analyzed two scenarios: rehabilitating the R. Hull treatment plant and successful completion of the Loop water re-use project. He did a 10-year analysis of those scenarios. He concluded a 5% rate increase would cover both scenarios. Reserves would accumulate at first and then be spent down with a 5% increase, Cristiano said. Tap fees were included in his analysis.

Four customer classes were used in Cristiano’s planning: residential customers, who make up 84.7% of revenue; irrigation customers, who make up 6%; multifamily customers, who make up 5%; and commercial customers, who make up 4.3%. The costs for average day consumption and peak day consumption were also factored into Cristiano’s analysis. He explained that his model showed the same amount of revenue would be recovered but it would be allocated a bit differently among customer classes. The current sewer rates were fair and equitable, he said.

In his conclusion, Cristiano said a 5% rate increase would cover the costs of service delivery and needed reserves. He said the board should look at its financial plan on a regular basis and should decide how it wants to handle the rates for multifamily residences.

Vanderschuere pointed out the district has few multifamily residences and suggested the board might be chasing a solution for a problem that it doesn’t have. He said he was leaning toward leaving the current multifamily rate in place. He said he favored moving forward with the 5% rate increase, which would include a 5% increase on tap fees, holding the needed hearings in March so that the rates could be implemented in April.

Manager’s report

Hodge told the board that not much financial data had been generated in the first two months of the year, but “all is well” in terms of the budget. In his update on the Loop, he noted that John Kuosman had left his position with Merrick Inc. and would be replaced by Mark Valentine as the Loop’s workflow manager. The Loop was focusing on water treatment design and had received bids from seven companies.

Hodge gave an update on redrilling Well 7D, which is adjacent to the treatment plant and district offices at 15850 Holbein Dr. Trees would be coming down soon and 40-foot sound-damping walls would be going up. The district was using the greatest amount of noise prevention technology during the three-week drilling period, he said. The goal was to have the redrilled well in production by May or June.

Water report

Wright said the state of Colorado had been in the district to complete a water sanitary survey in February. The survey went well: Two deficiencies were noted and corrected the same day.

March board meeting rescheduled

The board voted to delay its March meeting from March 20 to March 27 to allow 30 days’ notice of a public hearing on rates.

Executive session

The meeting ended with an executive session to determine negotiating positions relative to participation in the North Monument Creek Interceptor project.

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Correction

Last month’s article listed the Academy Water and Sanitation District (AWSD) as one of the operators of the Upper Monument Creek Waste Water Treatment Facility (UMCWWTF). The UMCWWTF does in fact treat AWSD’s wastewater, but AWSD does not have any operational role in the facility. AWSD is a customer of DWSD, which shares operational responsibilities for the facility with Triview Metropolitan District and Forest Lakes Metropolitan District.

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The next board meeting is scheduled for Thursday, March 27 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 March meeting was delayed by one week to allow adequate notice of a public hearing. 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.

Donala Water and Sanitation District, Feb. 20 – Voters remove term limits