MAY FINANCE COMMITTEE MEETING

May 16th, 2025, from 8:30 a.m. – 10:30 a.m.

Dominion Water & Sanitation District

9205 E. Costilla Ave., Suite 400, Greenwood Village, CO 80112

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May 16, 2025 Finance Committee Meeting Agenda

1.   Hinkle & Co provide an update on 2024 Audit

2.   DWSD April Accounts Payable Report (Enclosed)

3.   YTD Budget Comparison and Update (Summary Tables)

4.   Discuss and Review Scope of Works & Fee Schedules for Consultant Agreements & recommend for 05/20/25 Board Consent Agenda.

A.     Engineering:

                       i.            CDM Smith, Inc – ICA: CDM Smith was asked to support Roxborough WSD and Dominion WSD in obtaining Colorado Department of Public Health and Environment (CDPHE) approval for the treatment modifications and optimization with respect to ACH conversion processes. This work is a direct response to the high manganese levels in our water distribution system. The scope includes permitting support, corrosion study, and field and engineering support during treatment conversion and optimization.

      Total cost is $95,240, of which Roxborough WSD has agreed to reimburse us 50%.

       2025 Budget – This project was not anticipated and was not included in the 2025 budget. However, due to manganese exceeding secondary drinking water standards and a number of discolored water complaints, Dominion staff elected to advance optimization of the Moore WTP. There may be additional costs associated with CDPHE requirements and will be brought to the Board as an amendment. Costs will be cost shared with Roxborough. This is a capital expenditure and will be captured on a new line on the 2025 Budget.

                  ii.               Encon Services, LLC – Amendment: This amendment is for total services to be provided through the duration of plant construction. Wade Vaughn was recommended to us by Leofwin Clark, one of our trusted advisors for construction contracts.  He has supported us to develop the scope, fee, and contract documents for the Progressive Design Build contract for the Chatfield Basin Water Reclamation Facility. He will continue to provide his expertise on a regular basis – participating in meetings, reviewing design and contract documents, and supporting the DWSD team in the management of this project.

        Cost is $393,910 for the duration of plant construction.

        This cost was included in the overall budget of $8 million for 2025 for the CBWRF project and shown on the 2025 Budget Line Wastewater System – Wastewater Treatment Plant – Design & Construction.

                iii.               Hazen Sawyer – ICA: Phase 1 of a two-phase process. This agreement is for Hazen Sawyer to assist DWSD in defining the GIS and Asset Management program we want to establish. Phase 2 will be implementing that program and will be an amendment to this ICA.  Hazen Sawyer was selected for this effort based on Andrea’s experience with them in this specialty.

        The cost for this phase is approximately $28,000.  We anticipate Phase 2 to be approximately $100,000

        This effort was identified as a gap during the 2025 discolored water event. While Dominion has access to as-built GIS information from CAB, the ability to quickly develop emergency responses or to provide transparent maps for public information is lacking. While there are potential interim solutions to address the mapping concern identified the long-term asset management may not be addressed and could have significant additional costs in the future, Hazen will conduct an initial needs assessment to identify a robust GIS solution that not only addresses short term needs but also long-term. Effort will be added to the General Capital Planning budget and as Phase 2 proceeds, the Phase 1 costs will be transferred to a GIS/AM project ID on the CIP.

                iv.                  Cloacina - Rental Agreement: Rent the MBR pilot as a part of the overall PFAS Pilot for the CBWRF. Cloacina was selected after an engineering analysis of 4 pilots from different manufacturers.  Cloacina best meets our technical needs and schedule.

         Cost for delivery, rental, and return is $43,310. Total cost for the pilot will include this rental, DeNora rental, PCL amendment, and the cost of chemicals and testing. 

         This is not in the budget. We have $115,000 in grant money that will offset a portion of the total cost, but the additional grant funding that we requested from the State was not awarded. Should the Finance Committee recommend proceeding and the Dominion Board authorize Staff to proceed a new line item will be added under capital for the 2025 Budget.

                     v.               DeNora - Rental Agreement: Rent the PFAS skid as part of the overall PFAS Pilot. DeNora was selected after an engineering analysis revealed only two options, and this is the only one that is available on our schedule.

       Cost for delivery, rental, and return is approximately $36,000. Total cost for the pilot will include this rental, Cloacina rental, PCL amendment, and the cost of chemicals and testing. As this is not in the budget, should the Finance Committee recommend proceeding and the Dominion Board authorizes Staff to proceed a new line item will be added under capital for the 2025 Budget.

                vi.                     PCL- PFAS Pilot – Change Order: This change to the PCL Contract would provide engineering and logistics assistance for the PFAS Pilot. It will include providing an office trailer, site grading, and utilities to support the pilot and the office trailer. It will also include manpower to run the plant, pull samples, and perform maintenance activities.

           Cost for this Change Order was proposed as $575,000, but we are looking for savings that can bring this cost down.  Total cost for the PFAS Pilot will include this, the rental costs, chemicals, and laboratory testing.  Rough cost estimate:

           Cloacina - $43,310

           DeNora - $36,000

           PCL - $575,000 (or possibly $375,000)

           Chemicals and testing - $300,000

           Total - between $715,000 and $915,000

Grant offset = $115,000

As this is not in the budget, should the Finance Committee recommend proceeding and the Dominion Board authorizes Staff to proceed a new line item will be added under capital for the 2025 Budget.

              vii.                  LRE – ICA Amendment #4: Provide additional sampling support on the South Platte River to advance the mass balance analysis for the easement acquisition.

         Cost is  $128,000.

         Staff identified the need for additional background sampling to be collected at Denver Water facilities to assist in potential claims brought by Denver Water regarding water quality impairment. As this is not in the budget, should the Finance Committee recommend proceeding and the Dominion Board authorizes Staff to proceed a new line item will be added under capital for the 2025 Budget. Associated with the WWTP

B.        Operations:

                 i.                     Brown’s Hill – ICA Amendment #4: Provide and install security cameras on Low Zone Tank and flow control vault.

           Cost is $33,563

           This is in the budget under Capital Planning - Risk and Resiliency ($200,000).

C.           Finance:

              i.            Honey Creek Resources, Inc – ICA: Staff would like to advance a Cost-of-Service Analysis (COSA) based on the 2024 rate model completed by Carollo Engineers. The purpose of this COSA is to equitably proportion Dominion’s wholesale water and wastewater cost structure to those types of uses that cause the most strain on the wholesale facilities, thus not subsidizing those uses with lower water users in Dominion’s service area. This analysis is critical in identifying a wholesale water and wastewater rate for potential new retail districts to include The Range, Louviers and Sedalia. Honey Creek Resources is owned and run by George Oamek who was instrumental in establishing the rate structure for Dominion prior to any homes being constructed and is familiar with Sterling Ranch and existing rates.

                     Cost is $21,800

A Rate Study was included in the 2025 Budget Line Contract Services – Rates and Fees for $90,000. This effort is $21,800, significantly below the 2025 Budget.

             ii.            Pinnacle Amendment –The Board directed staff at the April 15, 2025 board meeting that Staff enter into an amendment with Pinnacle to expand services to include more robust accounting and financial reporting support.

         The estimated cost is not to exceed $210,000, a final scope and fee has not been received. Accounting services are included in Budget Line Contract Services – Accounting and Audit Services, however the expanded services is $60,000 above the 2025 Budget of $150,000.

D.        District Management:

                 i.                 Brown & Caldwell – Amendment #1: This is an amendment to the Regulatory On-Call contract we have, that will allow Brown and Caldwell to provide non-expert testimony support on the easement acquisition and CDPHE permit modification for the Chatfield Basin Water Reclamation Facility, as well as continue to provide regulatory on-call support for the District. 

           Cost is an hourly rate, not to exceed $30,000

           The regulatory review and support portion was not incorporated in the 2025 Budget. A portion of this work effort will be coded to the CBWRF permitting efforts. Should the Finance Committee recommend proceeding and the Dominion Board authorizes Staff to proceed a new line item will be added under operations and capital for the 2025 Budget.

               ii.                     Brown & Caldwell – Amendment #2: An amendment to the Regulatory On-Call contract we have, this will allow Brown and Caldwell to provide expert testimony related to the easement acquisition for the CBWRF discharge.   

           Cost is an hourly rate, final scope and budget forthcoming based on review of the expert testimony contract language. Should the Finance Committee recommend proceeding and the Dominion Board authorizes Staff to proceed a new line item will be added under capital for the 2025 Budget.

          iii.              iSolved HCM, LLC – ICA: iSolved HCM, LLC is a payroll and timekeeping services provider that will be replacing our current platform, ProLiant due to its inefficiency and inability to provide a proficient and accurate account of information as it pertains to staff hours, paid time off and payroll. iSolved is a platform that Ms. Byers used extensively at her previous place of employment and can attest to its seamless and accurate accounting of information tracking between payroll, timekeeping and human resources. It also offers an expense reporting feature that we currently do not have. The cost to onboard the new system will be $460. The fixed monthly cost will be $262, which is comparable to ProLiant’s average monthly cost of $215.

                     Total costs for 2025 are $1,901.

                     This effort is included with a separate vendor in the 2025 Budget Line Payroll Fees.