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OCN > 2504 > El Paso County Regional Loop Water Authority, March 20 – Contract awarded for water treatment plant design and pilot test

El Paso County Regional Loop Water Authority, March 20 – Contract awarded for water treatment plant design and pilot test

By James Howald

At its March meeting, the El Paso County Regional Loop Water Authority (EPCRLWA or the Loop) board awarded a contract for water treatment plant design and pilot testing. The board considered issuing a letter regarding possible use of eminent domain to Western States Land Services LLC, the company that the Loop has hired to acquire the easements needed for the project’s pipelines, which will convey water from Fountain Creek northward to customers in northern El Paso County.

Corbin Fromm of Fromm and Co. LLC, the Loop’s accounting company, gave the board a financial report. Board President Jessie Shaffer asked the board to consider authorizing a request for proposal (RFP) for pipeline and pump station engineering services and recommended the board hire a financial adviser.

The meeting ended with an executive session.

Burns and McDonnell selected for water treatment design and pilot

Mark Valentine, the Loop’s interim workflow manager, told the board that seven companies had responded to its RFP to provide water treatment plant design services. All the RFPs were well done, Valentine said. The proposals were reviewed by the Loop board members and by three engineers from Merrick and Co. The proposals were scored on their approach and the experience of the companies that submitted them. Black and Veatch, Burns and McDonnell, and CDM Smith submitted the top three proposals, Valentine said. Of the three, Burns and McDonnell’s proposal was the strongest, Valentine said, and he recommended the board select that company.

Shaffer said he liked the evaluation process and agreed with Valentine’s recommendation. The board voted unanimously to award the contract to Burns and McDonnell.

Eminent domain to be used only where negotiation fails

Shaffer said he did not want to “authorize a blank check” allowing Western States to use eminent domain to acquire land needed for easements. He asked Nicole Peykov, the Loop’s attorney, for direction on the issue. Peykov said the letter being considered does authorize the use of eminent domain but she recommended beginning with a more traditional approach without its use, and then using eminent domain only when negotiation fails, rather than giving Western States a blanket authorization to use it.

The board voted unanimously to authorize Western States to proceed with negotiations regarding easements.

Financial report

Fromm told the board that invoices totaling $39,000 had been received in February. The board voted to authorize Fromm to pay the invoices.

Fromm said a check from the El Paso Board of County Commissioners had been received and he expected another check from the same source for $500,000 to arrive soon. The checks were the first two payments of $4 million provided by the Biden administration’s American Recovery Plan Act to get the Loop project through its beginning stages. The Loop had reserves of $195,000, Fromm said.

Fromm said he recommended that the board authorize him to draft an engagement letter to Stockman Kast Ryan and Co. asking that company to audit the Loop’s 2024 finances. The board voted in favor of Fromm’s request.
Board authorizes RFP for pipeline and pump station engineering

Shaffer said the design of the project’s pipelines and pump station was the next step to be considered following decisions about treatment. He wanted to use the same process used for the treatment RFP. Shaffer said the pipeline and pump station design was simpler than the water treatment design and he proposed having Valentine and Merrick and Co. handle it on their own with less involvement from the Loop board. Board members Jeff Hodge and Tom Tharnish agreed with Shaffer, and the quorum authorized Valentine to proceed.

Financial adviser considered

Shaffer said it was time to hire a financial adviser to help with decisions regarding strategies to raise the funds needed to complete the Loop. He said he had a preliminary discussion with Holman Capital, a private equity fund. Shaffer suggested a workshop to consider how to fund the next stages of the project.

Executive session

An executive session was held to receive legal counsel regarding negotiating positions. No actions were taken following the executive session.

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The next regular meeting is scheduled for April 17 at 9 a.m. Regular meetings are held on the third Thursday of each month at 9 a.m. at the Monument Town Hall at 645 Beacon Lite Road. Workshop meetings are held the first Thursday of each month at 9 a.m. at the Monument Town Hall. Please see loopwater.org or call 719-488-3603 to verify meeting times and locations.

James Howald can be reached at jameshowald@ocn.me.

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