Pueblo Board of Water Works leases net $1.07 million in revenue

August 20, 2014
Pueblo photo via Sangres.com

Pueblo photo via Sangres.com

From The Pueblo Chieftain (Chris Woodka):

Improved weather conditions have freed up more water for the Pueblo Board of Water Works to lease, filling in a potential hole in revenues. Water leases on the spot market this year will bring in about $1.07 million, with 8,567 acre-feet (2.8 billion gallons) leased through the bidding process.

An additional 2,535 acre-feet in leases to two well augmentation groups and to Mauro Farms were approved Tuesday, bringing in $228,750, after the initial round of leases in March. The additional water is being provided because imports from the Western Slope are higher than expected, while demand in Pueblo has tapered off during a cool, wet summer, said Alan Ward, water resources manager.

Pueblo’s transmountain water sources have yielded more than 19,000 acre-feet in the first six months of this year, about 128 percent of average. More than 44,000 acre-feet of water are in storage, 114 percent more than last year at the same time.

At the same time, Pueblo pumped just above 5 billion gallons through its treated water system as of July 31, a decrease of 7.83 percent from the five-year average. The board has 39,890 accounts, which represents an increase of 324 over 2005.

Roughly two-thirds of the board’s revenue comes from metered water sales within the city, which are projected to bring in $23.3 million. However, if decreased use continues, that figure could be about $1 million less by the end of the year.

More Pueblo Board of Water Works coverage here.


Pueblo Board of Water Works board meeting recap

July 16, 2014
Colorado Springs circa 1910 via GhostDepot.com

Colorado Springs circa 1910 via GhostDepot.com

From The Pueblo Chieftain (Chris Woodka):

Colorado Springs will be taking a more regional approach and looking at risk factors as it develops its 50-year water plan. That’s a shift from the 1996 water resources plan that focused solely on supply and led to Southern Delivery System, said Brett Gracely, water resources manager for Colorado Springs Utilities.

“We are seriously evaluating the timing of future SDS components,” Gracely told the Pueblo Board of Water Works Tuesday.

Utilities is updating the plan that will determine its actions in water development after SDS comes online in 2016. The plan will look at watershed health, fire vulnerability and climate change, as well as social values and tradeoffs. It also will incorporate traditional factors like water supply, demand and quality.

“Because of changes in technology and software, we can run thousands of scenarios through our models,” Gracely said.

Another key difference is that Colorado Springs Utilities is not planning on building another $1 billion pipeline as a result of this plan, but more carefully evaluating its options after SDS.

“It’s a completely blank page,” Gracely said. “But it will have no effect on SDS phase I.”

The first phase is a 50-mile pipeline from Pueblo Dam to Colorado Springs, served by three pump stations and a treatment plant. The second phase of SDS includes the construction of two reservoirs on Williams Creek southeast of Colorado Springs.

Water board members Tom Autobee and Kevin McCarthy questioned Gracely on what conservation measures Colorado Springs envisions in order to cut demand. Reduced water use after the 2002 drought has been complemented by a tiered rate structure that makes expanded water use more costly, he explained. Colorado Springs also has dropped minimum landscaping requirements that at one time would have encouraged greater water use.

“What is your telescope telling you about West Slope imports?” McCarthy asked.

“Warmer weather is what we’re expecting,” Gracely replied. “Half the (climate) models are showing it will be wetter, and half drier, but they all say it will be warmer.”

More Pueblo Board of Water Works coverage here.


Pueblo: Rates are a complex question

July 8, 2014
Orr Manufacturing Vertical Impact Sprinkler circa 1928 via the Irrigation Museum

Orr Manufacturing Vertical Impact Sprinkler circa 1928 via the Irrigation Museum

From The Pueblo Chieftain (Chris Woodka):

Other cities in the West ration water, use block rates to discourage water waste and even pay property owners to rip out sod. Pueblo does none of those things, and a couple of people who attended last week’s state water plan meeting at Pueblo Community College wondered why.

“It’s driven by economics,” said Terry Book, executive director of the Pueblo Board of Water Works. “Using less water drives up rates. That puts more of a burden on poorer customers. It’s a complex question.”

For years, the Pueblo water board has seen a decrease in water use that began after the city put outdoor watering restrictions in place following the 2002 drought. A 2007 study found customer attitudes had fundamentally changed. Instead of dragging hoses to water the lawn in the hottest part of the day, more Puebloans chose to set up automated sprinkler systems to run in the morning or evening. The water board also promotes Wise Water Use online and in its outreach programs. At the same time, Pueblo has kept its water rates the lowest on Colorado’s Front Range.

One woman wanted to know why homeowners are penalized for not watering their lawns. There is a difference between xeriscaping and simply letting the weeds take over, Book said. Again, it’s the poor who suffer because redoing a landscape with drought tolerant plants and reducing the square footage of bluegrass can cost thousands of dollars. Many lawns in Pueblo have been lost because of the choice to cut back on the water bill, he said.

At one point in the meeting, Book said Pueblo has a water supply for 220,000- 225,000 people — but the water board has learned that severe drought can stress even that supply. In most years, the water board has extra water to lease, mostly to farmers. Recently, the water board increased its rate on longterm contracts as a way to generate more revenue in order to keep rates low. By contrast, growth in El Paso County to the north will put pressure on other water resources in the Arkansas River basin, and water comes at a higher price.

While Pueblo’s supply seems ample for now, the water board already has taken steps to provide water for future generations by buying water rights on the Bessemer Ditch. For now, the water is being leased back to farmers at a low cost. This decision was questioned by farmer Doug Wiley, who came to the meeting and suggested fallowing urban landscapes in times of drought to provide more water to farms.

Both Wiley and Book agreed, however, that the quality of water in Pueblo is better than the Lower Arkansas Valley and so the water resources in this area should be preserved. Dissolved salts, selenium, radionuclides and minerals increase along the Arkansas River as it flows to Kansas.

“The quality of water is the issue as you move down the Arkansas Valley,” Book said.

More conservation coverage here.


The Pueblo Board of Water Works okays water for marijuana operations within the city limits

June 18, 2014
Pueblo photo via Sangres.com

Pueblo photo via Sangres.com

From The Pueblo Chieftain (Chris Woodka):

Water for marijuana operations within Pueblo city limits will be available as long as the feds remain lukewarm on enforcement, but the Pueblo Board of Water Works wants more time to think about supplying other Pueblo County operations. The board Tuesday approved a resolution to provide water from its non-federal sources to growers within city limits, provided that federal laws do not become more restrictive. The choice to make water available within city limits was unanimous, even though some board members are not fans of legal marijuana.

“Colorado and the city have legalized it, so it makes it tough for us to say, ‘No, you won’t have access to water,’ ” said board member Nick Gradisar.

Gradisar explained that federal enforcement under the current administration is deferential to Colorado and Washington laws on recreational marijuana, although the Department of Justice could crack down on marijuana operations if certain priorities such as organized crime involvement or weapons are violated.

The rest of the board joined him with varying levels of enthusiasm.

Jim Gardner supported the resolution wholeheartedly, comparing society’s attitudes toward marijuana with the prohibition of alcohol in the 1900s.

“These are things that are going to happen in our culture,” Gardner said.

Tom Autobee said the state has not done enough to regulate marijuana, and the city needs to treat marijuana like liquor licenses, taking neighborhood concerns into consideration. He supported the resolution “with reservations.” “This is a social experiment and I would ask people to use marijuana responsibly,” Autobee said.

Kevin McCarthy said the will of voters comes first, but was also uncertain about marijuana use in general.

“While I am uneasy about where this is going, there are sufficient protections in this ordinance,” McCarthy said.

Board President Mike Cafasso also had misgivings about marijuana, but saw the need to support city and state laws.

“This is not an easy decision for me,” Cafasso said. “I’m not a fan. I don’t believe it’s good for Colorado; it’s not good for our county; and it’s certainly not good for Pueblo,” Cafasso said.

A second ordinance that would allow the Pueblo water board to sell 800 acre-feet (260 million gallons) of raw water annually at top dollar (about $500,000 at 2014 rates) was tabled. That water most likely would be used for well augmentation. The water board has received about three serious inquiries about such water, according to Executive Director Terry Book. Initially, the board defeated the ordinance on a 3-2 vote.

Gardner and Gradisar voted for it, while the other three members wanted to table it, pointing out that there is no obligation under the city charter to make water available for marijuana.

“We have to be careful about making a judgment about who we will sell water to,” Gradisar said, pointing out that some would argue against selling water to coal-fired power plants.

“This is going to be an economic boon to Pueblo County.”

Cafasso convinced the others that it should not be a dead issue, but that staff needed to talk to other water providers to determine how the issue is being handled. So the board voted 5-0 to reconsider a similar resolution in 60 days.

“Let’s make sure before we parachute off the cliff we know where we are going to land,” McCarthy said.

More Arkansas River Basin coverage here.


“If we commit too much water, we lose our flexibility for operating during times of drought” — Alan Ward

April 17, 2014

cripplecreekrvtravel.com

From The Pueblo Chieftain (Chris Woodka):

A gold mining company will lease some of Pueblo’s raw water for the next decade at a record price. The Pueblo Board of Water Works Tuesday approved a 10-year lease of 400 acre-feet of water to the Cripple Creek & Victor Gold Mining Co. in Teller County. The water will lease for $630.63 per acre-foot (an acre-foot is 325,851 gallons) initially, and will be adjusted annually by the same percentage as Pueblo water rates. That will mean more than $250,000 in revenue for the water board this year.

“The 400 acre-feet is a relatively small amount,” said Alan Ward, water resources manager. “If we commit too much water, we lose our flexibility for operating during times of drought.”

That amount also should not interfere with the water board’s other multiyear leases.

The price represents 1.5 times the price of the Comanche power plant lease, reflecting the water board’s policy of charging a 50 percent premium to customers outside city limits, Ward said.

Cripple Creek & Victor plans to use the water to augment its supplies and replace depletions to local waterways.

The water will be delivered to either the mouth of Fourmile Creek or Beaver Creek, or to the town of Victor’s account in Lake Pueblo. From there, it will be the gold mining company’s responsibility to exchange it upstream to operations located about 25 miles from the Arkansas River.

Revenue from the lease will be used to offset Pueblo water rates in the water board’s $34 million budget.

Metered water sales are expected to generate $23.3 million this year, while leases of water will contribute more than $8.2 million.

More Pueblo Board of Water Works coverage here.


Arkansas Valley Conduit backers hope to make deal for excess capacity in the Pueblo Dam south outlet works soon

March 27, 2014
Pueblo Dam

Pueblo Dam

From The Pueblo Chieftain (Chris Woodka):

A plan is hatching to get pipe in the ground ahead of schedule for the Arkansas Valley Conduit. It would reduce the initial costs of the project and allow some negotiations to proceed even with a reduced amount of federal funding, said Jim Broderick, executive director of the Southeastern Colorado Water Conservancy District, project sponsor.

“We were under the impression that all the money had to be in place up front before negotiations began, but the Bureau of Reclamation decided that’s not the case,” Broderick said. “If those negotiations are successful, we’ve got pipe in the ground and the conduit can begin to move ahead.”

That means Reclamation will be able to begin negotiations with the Pueblo Board of Water Works and Colorado Springs Utilities for use of the joint use pipeline that leads from the south outlet of Pueblo Dam to the Whitlock Treatment Plant.

The Pueblo water board owns the pipeline and the treatment plant. Colorado Springs Utilities paid the water board $3.5 million to upsize the pipeline by one foot in diameter, planning to use it for the Southern Delivery System. Since that time, SDS has taken a different route to move water from Lake Pueblo through the north outlet on the dam, and would not need the additional capacity.

The pipeline from the south outlet has a total capacity of 248 million gallons per day. Of that, 40 mgd is reserved to serve Comanche power plant and 140 mgd to serve Pueblo.

By paying to upsize the pipeline, Colorado Springs reserved 68 mgd, but the conduit would only require 14 mgd, said Terry Book, executive director of the Pueblo water board.

Reclamation also must negotiate with the Pueblo water board for locating a treatment plant at Whitlock to filter water used in the Arkansas Valley Conduit. By moving those discussions ahead, the federal cost will be reduced from $12 million to about $3 million in the coming year, but more funds would be required to begin actual design work, Broderick said.

Meanwhile, Colorado lawmakers continue to fight for more federal funding.

During a U.S. House committee hearing this week, Rep. Scott Tipton, R-Colo., told Reclamation officials the conduit is a high priority.

“The members of the Colorado delegation are committed to the Arkansas Valley Conduit. Reclamation knows that this project offers an effective regional answer to meeting federally mandated Safe Drinking Act standards,” said Tipton.

More Arkansas Valley Conduit coverage here and here.


Fryingpan-Arkansas Project update: Reclamation approves cross-connection for the North and South outlet works

March 9, 2014
The new north outlet works at Pueblo Dam -- Photo/MWH Global

The new north outlet works at Pueblo Dam — Photo/MWH Global

From The Pueblo Chieftain (Chris Woodka):

Ever since it began storing water 40 years ago, the Pueblo Dam has been evolving as the needs of water users change. The next step will integrate the south outlet works with the newly constructed north outlet works on the face of the dam to provide more reliability to the urban populations that depend on Lake Pueblo as a source of water. The cross-connection is part of the package approved last week by the Bureau of Reclamation. Other pieces are the Arkansas Valley Conduit and a master contract for some members of the Southeastern Colorado Water Conservancy District.

“We get a better quality of water coming out of the reservoir. That cuts down on chemicals used for taste and odor issues,” said Terry Book, executive director of the Pueblo Board of Water Works.

The cross-connection will allow users of both outlets to continue using the dam when one outlet or the other is closed in an emergency or for planned maintenance.

“When one goes down, you can pull from the other side and still get part of your water,” Book said.

The dam was completed in 1974, but the south outlet — as the name implies, is on the south side of the Arkansas River — wasn’t used until 1983, when Pueblo West took its initial diversion of water. Two years later, the Fountain Valley Conduit, which serves Colorado Springs and four nearby water providers, began drawing from the south outlet. Pueblo hooked onto the south outlet in 2002, after gaining a license in 2000. The south outlet also supplies the Pueblo fish hatchery, operated by Colorado Parks and Wildlife.

The north outlet — formerly the primary outlet for the Arkansas River — was completed last year as part of the Southern Delivery System, which will begin serving Colorado Springs, Fountain, Security and Pueblo West in 2016.

The Southeastern district, Colorado Springs and Pueblo water board are jointly developing a hydropower project at the north outlet works, which also continues to provide water to the Arkansas River.

There also are three gates that can empty water into the basin below the dam when the north outlet is closed. The Bessemer Ditch also has a direct connection to Pueblo Dam.

Before the interconnect is constructed, it would require a 40-year contract between Reclamation and those parties using the outlets.

More Fryingpan-Arkansas Project coverage here and here.


Follow

Get every new post delivered to your Inbox.

Join 1,015 other followers

%d bloggers like this: