Stratmoor Hills board approves 2024 audit and GIS contract; manager reports PFAS payment and funding updates

At its Aug. 20, 2025 regular meeting, the Stratmoor Hills Water and Sanitation District board unanimously approved the district's 2024 budget audit and a contract with IMEG to develop GIS capabilities, and accepted the July 2025 financial report.

Jessie Seibert, representing Hoelting & Company, Inc., presented the 2024 audit. Director John Willcox moved to approve the audit; Director Richard Bond seconded and the board voted 4-0 to adopt it. Under agenda item W-2, Director Willcox moved to approve the contract with IMEG; Director Bond seconded and the motion passed 4-0. Director Willcox likewise moved to approve the July financial report, which the board approved unanimously. All procedural motions (approval of the July 16 minutes, the meeting agenda and adjournment) were moved by Director Willcox, seconded by Director Bond and adopted 4-0.

District Manager Darren Adame delivered the manager's report and itemized several funding and operational updates. He said staff interviews were held Aug. 18–19, 2025 in connection with an ongoing suit by former employees and that an investigator will present findings to the board. Adame reported that the Colorado Springs Utilities interconnect project is scheduled for completion on Nov. 9, 2025 and that El Paso County has ARPA funds pledged to reimburse the district $682,000 for the project.

On PFAS-related litigation, Adame said the district received a first settlement payment of $68,262.35 and expects a larger second payment by the end of the summer, with additional payments anticipated from DuPont, BASF and Tyco by year-end. He also reported that the Air Force agreed to raise its contribution to the water treatment plant's operational costs from $318,000 to $504,000; Board President Robert Colgrove signed that agreement on Aug. 8, 2025. Adame said he submitted a letter to the Air Force requesting assistance to replace the Ion Exchange unit (Account #8006), which he estimated would save the district about $100,000.

Adame said he submitted paperwork to Colorado Springs Utilities to recover $396,025 the district paid on Aug. 27, 2024 for increased surface water costs, and that resolution of a $124,950 EPA reimbursement tied to a 2021 grant is expected next month. Reporting on safety matters, Director Willcox noted, "It has been 78 days since the latest accident, and 264 days since the latest close call," and said the next safety committee meeting is scheduled for Sept. 10, 2025.

With no further business, the board adjourned at 4:51 PM. An investigator is scheduled to present findings from the staff interviews at a later meeting; no vote or action on that matter was recorded at this session.