NEDERLAND — The Town of Nederland’s Utilities Department has been systematically completing a long list of expensive but necessary capital improvement projects for its water and wastewater infrastructure ever since concerns were raised two years ago that the Town was approaching the need for a multimillion dollar plant expansion. 

The discussion of an inevitable plant expansion has persisted for as long as there have been large development projects being proposed. From Ron Mitchell’s major plans for the Central Business District to TEENS, Inc.’s childcare center, the footprints of these developments are always measured against the Town’s aging framework. 

These concerns have caused the Utilities Department to prioritize projects that protect and improve the water and wastewater systems as they currently operate, in order to delay an expansion for as long as possible. 

$36M in upgrades needed

In October 2024, Nederland’s Utilities Department Manager Andrew Bliss presented the Board of Trustees (BoT) with two draft 10-year plans—developed in collaboration with the Town’s engineering consultants JVA and third party utilities management consultants Raftelis—for needed water and wastewater capital improvement projects.

Projects involving the Town’s water supply and infrastructure are estimated to cost more than $17 million. They include: $3,043,000 to construct raw water storage by 2027, a $2,704,000 expansion of the water treatment plant by 2034, building storage tanks in the Big Springs neighborhood by 2029 at a cost of $2,508,667, and replacing up to two miles’ worth of pipeline in Big Springs, currently at risk of freezing, by 2032, for an estimated price tag of $3,215,379. 

In addition, projects to improve the Town’s wastewater infrastructure, many of which involve capacity issues and potential regulatory changes, would cost more than $19 million. These projects include a $12 million expansion of the treatment facility; the permits alone are expected to cost an additional $1.6 million.

The estimated timeline for completion of these projects was based on a 20-year period at a rate of 1% population growth. Capacity and regulatory changes that would trigger the need for major facility expansions are dependent on the size and impact of specific developments.

During discussions in late 2024 about the 2025 Town Budget, Bliss requested $50,000 for a sanitary sewer design project, $20,000 for a new pump for the wastewater treatment facility’s digester, $100,000 for the construction of a bulk water fill station, $60,000 for a new generator and additional backup power equipment, and $250,000 for water main distribution improvements.

This request for $250,000 was lowered to $50,000 to pay for preliminary designs and plans in 2025. Additionally, during the last meeting of 2024, Trustees approved the Utilities Department’s purchase of a dump truck—with a maximum budget of $60,000—for the hauling of biosolids from the Town’s Wastewater Treatment Facility to be repurposed into compost.

Higher bills on the horizon

Bliss and representatives from Raftelis returned to the BoT at the very start of 2025 with an update on a recent Water and Wastewater Rate Study. The study covered the financial planning of the Utilities Department through 2034 using the most current data on operational expenses, capital improvement needs, and customer usage patterns. 

Plant Investment Fees (PIF) were stated to increase by 5% in 2025, as were both water and sewer rates. According to the rate study, a typical water bill was set to cost $46 in 2025, and is expected to cost $95 by 2034. A typical sewer bill that cost $89 in 2025 will increase to $141 by 2034. 

As PIF fees are typically based on meter size, a 3/4-inch meter resulted in a Water PIF of $46,285 in 2025, and a Sewer PIF of $21,511. A 1-1/2-inch meter resulted in a Water PIF of $154,284 and a Sewer PIF of $71,703. A 4-inch meter launched the fees up to $771, 427 for Water PIF, and $358,517 for Sewer PIF. 

In addition to inflation, debt obligations, and “slower-than-expected” growth for the Town, the $40 million cost of the 10-year Water and Wastewater Capital Improvement Plans was also listed as a factor contributing to the PIF increases.

Also at the start of 2025, Bliss, along with the Town’s engineering firm JVA, Inc., and Lindsey Danforth of Geographic Information System (GIS) Enterprise Administration, presented the latest version of the Nederland Water Model to the BoT.

The hydraulic model of the Town’s water distribution system, developed in coordination with the Nederland Fire Protection District, was updated to include pipe velocities, hydrant and valve spacing, and an updated system layout to identify dead ends and loops. The aim of this effort is to address pipe-freezing issues in the Big Springs neighborhood, plan additional hydrant locations and other capital improvements, and improve the flow of water required to fight fires. 

In direct response to the previous report on the new rate study, the BoT discussed in March the proposal to draft a more formal policy to “ensure consistency, transparency, and protection of the Town’s financial interests,” and possibly to introduce a structured payment policy for PIFs. That would include setting fixed terms of three to five years and allowing for use-based, tiered, or targeted deferrals.

Though the Board agreed that the issue was important to consider, they still directed the matter to be tabled until after the development of their Strategic Plan.

New rules, ongoing maintenance

In April, the BoT voted to place new regulatory procedures on local restaurants, breweries, and “industrial users” regarding the proper removal of harmful waste before it can reach the Town’s wastewater treatment facility.

Also in the Spring of 2025, the Utilities Department contracted with McDonald Farms for $22,241 for a grit removal project for Nederland's wastewater treatment plant. That included the installation of a new digester and equalization tanks to help removing the collected grit that had been filtrated.

“Staff will be working on moving sand removed from one tank back to sand filters to reduce the cost of purchasing new sand,” reads the Utilities Department’s report for May, 2025. “Moving forward, staff plan to propose cleaning two wastewater tanks each year as part of the annual operating budget for preventative maintenance.”

Last year, the Town began inspecting and flushing every hydrant in town on May 13. The Town completed a Drinking Water Sanitary Survey with the Colorado Department of Public Health and Environmental Protection that yielded two minor violations—quickly addressed—and the first load of compost created from the Town’s own biosolids was returned for use by residents.

Through the summer, the Utilities Department staff flushed and inspected all 174 fire hydrants in town, rebuilding five of them. They also cleaned and inspected over 14,000 feet of sewer mains in order to mitigate sewer backup and to identify other preventive maintenance.

“This maintenance includes testing the automatic transfer switch, changing oil, changing fuel, oil, and air filters, and taking oil and coolant samples for testing,” the department’s August report explains. “This is the first year this work was performed by staff to reduce costs.”

Fire drains water supply

The Town’s water infrastructure was put to the test in October during the Caribou Village fire. Though a water conservation notice was emailed to residents the morning of the fire, Town’s water tank levels maintained at least six feet of water before being refilled.   

“It is estimated that approximately 500,000 gallons of water was used for the fire between 4 a.m. and 12 p.m.” Bliss wrote in his October report. “Nederland’s annual daily average for water production is 144,000 gallons per day. It took two days of near max water production to return to normal operating conditions.”

By the end of 2025, 109 home water meters had been installed or repaired as part of the department’s $40,000 capital improvement plan. The $20,000 grit removal project was completed at far below the budgeted amount of $67,000. Further, the department had completely paid off its $66,000 loan for an excavator, a $21,000 digester pump had been ordered, and a generator and backup power equipment had been purchased and installed, for a total of $62,600. 

JVA completed the designs for the needed sanitary sewer improvements in November, stating that the total cost for the project could land at $1.8 million. Town staff will be actively seeking grant funding for this project in 2026. 

As for the department’s $50,000 Distribution System Improvements project, after having received contractor quotes which received administrative approval, several new hydrant installations were planned and one new fire hydrant was installed at the Nederland Community Center at the start of the new year. 

On February 3, 2026, Bliss was directed by the BoT to focus on designing and installing one more fire hydrant near the community center. Trustees also moved to authorize Bliss to draft amendments to Town code to establish earlier deadlines for annual backflow prevention assembly testing, and to allow PIFs to increase following the issuing of a building permit if no construction occurs within 12 months,  

A budget has not yet been provided for the proposed $100,000 Bulk Water Filling Station installation project. That project was previously planned to involve a third-party contractor, Ellemech, which was to construct a fully automated station for $41,250—with Supervisory Control and Data Acquisition systems— that would provide bulk water to customers at a cost.

The project is currently designated as being “on hold," according to the January 2026 Utilities Department report.

An upgrade to the department’s computer monitoring system is planned this year, with the intention of replacing the system with one that is more widely supported and has stronger cybersecurity. Meter replacements will continue throughout the year; the goal is 100, 20 of which have already been installed. Further rank cleaning and inspections will be completed at the wastewater treatment facility. 

Additionally, the Town’s water valves will continue to be mapped and exercised to ensure their reliability before they may be required for use in an emergency. The Utilities Department located and exercised 35 valves last year and is set to assess the remaining valves before the end of 2026.