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OCN > 2604 > Woodmoor Water and Sanitation District, March 9 – Board deals with 100,000-gallon water loss

Woodmoor Water and Sanitation District, March 9 – Board deals with 100,000-gallon water loss

Highlights

  • The Woodmoor Water and Sanitation District approved supplemental water for the Mines Shopping Center (MSC) and discounted an $8,481 overage invoice tied to a equipment failure at a new tenant, with MSC also seeking to purchase additional supplemental water.
  • The board unanimously approved selling MSC the requested 0.5 acre-foot of supplemental water for $17,250 per year and covering $4,625 in lost option costs, offsetting MSC's liability by about $3,857.
  • WWSD agreed to purchase Monument Fire District's building at 1855 Woodmoor Drive for $1.26 million and approved a separate supplemental water agreement to supply the new fire station on Jackson Creek Parkway at 2.7 acre-feet per year for $104,138 annually.
  • The board vacated a flowage easement for the North Bay at Woodmoor development and extended Apollo's Peak Solar LLC's lease for a 60-day extension to draft new terms, ensuring any transfers remain within lease provisions.
  • Monument Junction Metropolitan District (MJMD) was allowed to defer payment on its supplemental water agreement until December 2026 due to delays in development and price differentials, with the district noting improved clarity on commercial progress.
  • Financials showed January water sales beating budget projections (5.16% vs. 2%), with tap fees also surpassing estimates (12.5% vs. 6%), while warmer winter conditions contributed to more line breaks.

By James Howald

The Woodmoor Water and Sanitation District (WWSD) board heard a request from Woodmoor Village LLC, also known as the Mines Shopping Center (MSC), to provide supplemental water and to annul a charge of $8,481 for exceeding its allowed water service. The board also considered an agreement with the Monument Fire District (MFD) to purchase its building on Woodmoor Drive, which is to be replaced by a new fire station on Jackson Creek Parkway, and a second agreement with MFD to provide supplemental water service to the new station.

The board vacated a flowage easement at the proposed North Bay at Woodmoor development and amended its lease with Apollo’s Peak Solar LLC. The board agreed to allow Monument Junction Metropolitan District (MJMD) to defer payment on its supplemental water service agreement. The board heard financial and operational reports, and the meeting ended with an executive session.

Supplemental water approved; charge for lost water discounted

Greg Nagel, owner of MSC, located just north of Lake Woodmoor Drive, asked to purchase an additional half-acre-foot of supplemental water for $17,250 per year, and asked the district to waive an invoice for $8,481 that resulted from the center exceeding its current supplemental water allotment. Supplemental water is charged at a much higher rate than the standard allotment of one-half acre-foot of water per acre of land. Director Tom Roddham recused himself from the discussion because his business is a tenant of the shopping center.

Nagel told the board that the excessive water use resulted from an equipment failure at the Goat Patch Brewery, a new tenant that replaced Pikes Peak Brewing. One hundred thousand gallons of water were lost when a float failed, he said. The resulting invoice was equal to 30% of the shopping center’s annual water bill, which Nagel argued was too high.

Board President Brian Bush asked District Manager Jessie Shaffer how this situation had been handled in the past. Shaffer said the district had reduced similar bills for overuse in the past and went on to provide some history of the district’s history with the shopping center. He said MSC had purchased an option for 4.8 acre-feet of supplemental water in 2017. MSC executed 1.24 acre-feet of its option the same year, and in 2019 added 0.4 acre-feet, leaving 3.16 acre-feet available.

Then, to reduce the cost of its option, MSC asked to relinquish portions of it three times and finally, in 2021, asked to cancel the remaining option altogether. In addition, Shaffer said, MSC elected to use its own method to calculate its future supplemental water need rather than using the methodology provided by the district. When customers make that choice, Shaffer explained, the district expects them to accept the consequences of their alternative methodology. The overage fee is 1.65 times the cost of the excess water used.

Shaffer said the board should consider recovering from MSC the revenue lost on the carrying charges of the option due to MSC’s cancellation, which he calculated to be $4,625. Had MSC retained its option for supplemental water, it would have avoided the surcharge that resulted in the invoice. When MSC cancelled its option, Shaffer pointed out, it assumed additional risk. Other customers pay their annual option fee to avoid the risk of exceeding their supplemental allotment.

Bush suggested selling MSC the one-half acre-foot of supplemental water it requested for $17,250 per year and recovering the lost option costs of $4,625, which would reduce MSC’s liability for the lost water by $3,856.65. The board voted unanimously to implement Bush’s suggestion.

WWSD to purchase fire station

Shaffer told the board that the district had offered to buy MFD’s building at 1855 Woodmoor Drive, adjacent to the WWSD headquarters building, for $1.26 million. Fire Chief Andy Kovacs took the offer to MFD’s Board of Directors, which authorized execution of the agreement. Shaffer said the WWSD board needed to accept the agreement as complete, and Roddham made a motion to do so. The board approved the motion unanimously.

The board also approved a supplemental water agreement for the new fire station on Jackson Creek Parkway, just north of the YMCA. The agreement calls for the district to provide an additional 2.7 acre-feet of water per year to the new station, at an annual cost of $104,138.25.

Flowage easement vacated

The board voted unanimously to partially vacate a flowage easement in the North Bay at Woodmoor, a six-single-family residence development planned for a site just north of Lake Woodmoor. A flowage easement is a legal claim on a property that allows another party to use a portion of the land for water management purposes, including flooding the property as needed. Bush said the easement was no longer needed due to determinations of water levels in the lake.

Solar lease extended

Shaffer asked the board to amend its lease allowing Apollo’s Peak Solar LLC to use a portion of the district’s Woodmoor Ranch as a location for a solar array. The amendment formalizes a 60-day extension of the lease, which is needed to allow new business terms to be drafted into the agreement. Tamara Seaver, WWSD’s attorney, said that because the lease was originally signed with Enerfin Renewables LLC and then transferred to Apollo’s Peak, she wanted written affirmation that the transfer, or any future transfer, is allowed by the terms of the lease. She said she wanted to ensure that Apollo’s Peak is bound by the original terms of the lease.

The board voted unanimously to accept the amendment to the lease.

MJMD gets more time to pay

Shaffer told the board that the terms of the district’s supplemental water agreement with MJMD gave it one year to put the supplemental water to beneficial use. MJMD did not meet this time limit, and the price of its supplemental water increased during the interim, creating a large differential in price. Shaffer asked the board to allow MJMD to defer payment for its supplemental water until December 2026, by which time it would know more about the commercial developments on its property. The board voted to defer the payment.

Financial and operational reports

Director Roy Martinez gave the board a financial report on behalf of board Treasurer Dana Franzen, who was excused from the meeting. Martinez said January was a good month—water sales were budgeted at 2% but came in ahead of expectations at 5.16%. Tap fees, which were budgeted at 6%, came in at 12.5%.

In his water report, Operations Superintendent Dan LaFontaine said that the warmer-than-usual winter temperatures were contributing to line breaks by increasing ground movement, which typically is low during the winter months.

Executive session

The meeting ended with an executive session regarding the purchase or sale of real property and to receive legal advice on agreements with El Paso County and Lake Woodmoor Holdings LLC. No action was taken following the executive session.

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The next meeting is on April 13 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.

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