How will CSU’s $50 million for Fountain Creek mitigation be spent?

October 2, 2014
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

While the decision of how to spend $50 million for flood control on Fountain Creek to benefit Pueblo will be made by the parties directly involved, other input will be needed.

“Anyone who wants to come to the table and says, ‘We want to find out where money for these projects will be available,’ is welcome,” Pueblo County Commissioner Terry Hart said.

Last week, Hart made a pitch to the Fountain Creek Watershed Flood Control and Greenway District to begin planning now for the arrival of $50 million in payments from Colorado Springs Utilities after Southern Delivery System goes online in 2016. That money is seen as seed money for projects that could amount to $150 million or more identified in a corridor master plan. The money was negotiated by Pueblo County under its 1041 agreement with Utilities in 2009 for the construction of the SDS water supply pipeline through the county. It is to be used for flood control projects on Fountain Creek that benefit Pueblo County. When the district was established later in 2009, it became the recipient of the money.

“At a minimum, Pueblo County, CSU and the Fountain Creek district need to be involved, and they will have the final say,” Hart said.

But the city of Pueblo and the Lower Arkansas Valley Water Conservancy District also should have input about how the money will be used, Hart said.

The greatest potential damage from Fountain Creek flooding is within the city of Pueblo and in the communities of the Lower Ark Valley downstream from Fountain Creek.

“The Lower Ark District was instrumental in developing the corridor plan, and we definitely need the technical input from the city of Pueblo,” Hart said.

The corridor plan, a joint effort of Utilities and the Lower Ark district, identifies projects between Fountain and Pueblo that could cost several times the $50 million that was earmarked under the 1041 agreement. Pueblo already has participated in pilot projects to demonstrate flood control techniques.

In addition to technical assistance, Pueblo County’s attorneys will have to be involved to determine whether projects meet the conditions of the 1041 permit. This will be important to avoid the kinds of dispute that developed when the Lower Ark raised objections about how its contributions to the district were being spent.

“I see this new committee working in concert with the steering committee (Utilities, Lower Ark and the Fountain Creek District),” Hart said.

More Fountain Creek coverage here.


Whatever else is in it, the biggest element of #COWaterPlan plan will be cooperation — Chris Woodka

August 24, 2014


From The Pueblo Chieftain (Chris Woodka):

Whatever else is in it, the biggest element of Colorado’s water plan will be cooperation.

“Water can either divide or unite us. In the end, it’s our choice,” Gov. John Hickenlooper told the Colorado Water Congress last week. “In this state, we work together, and we have to make sure it doesn’t divide us.”

When Hickenlooper called for a state water plan last year, it had a direct impact on most of the water professionals attending the summer workshop. Four months from the finishing line, the governor reiterated the importance of water to Colorado. The draft plan will be on the governor’s desk in December, whether or not Hickenlooper survives an election challenge from Republican Bob Beauprez. Beauprez addressed the Water Congress Friday.

Hickenlooper heaped praise on the work of basin roundtables, which have been meeting since 2005, and have spent the past year developing basin implementation plans.

“The roundtables, while not as glamorous and sexy as bare-knuckle water brawling in neighboring states and here in the past, have moved forward,” he said.

“It has not been just a small group of people in Denver directing how it will be used, but a broad group of people working together to write a plan.”

Hickenlooper highlighted the Arkansas Valley Conduit as an example of water projects that benefit the outlying areas of Colorado. Hickenlooper said he and Colorado Water Conservation Board Executive Director James Eklund talked with Mike Connor, deputy secretary of the Interior, earlier this year to ask him to move funds to provide more money for the conduit. Last week, the Bureau of Reclamation announced $2 million in funding for the conduit this year.

“That $2 million is a good first step for Southeastern Colorado, an area that has been in a drought for years,” he said.

From The Pueblo Chieftain (Chris Woodka):

Whether it’s putting in a new dam or pipeline, leasing water from farms or simply conserving water, municipal customers should be prepared to pay more for mitigation.

“With any project, we have to be prepared to look at the question: What are the underlying costs?” said Mark Pifher, permit manager for the Southern Delivery System being constructed by Colorado Springs Utilities.

Pifher led a panel of those who have worked on Colorado’s largest municipal water projects to explore the obvious and hidden add-on costs of water development. The event was part of the Colorado Water Congress summer convention.

In the case of SDS, an $840 million pipeline from Pueblo Dam to Colorado Springs, about $150 million in additional costs to meet permit requirements has been tacked on.

Aurora paid additional costs for its lease of High Line Canal water 10 years ago, with an additional $1.3 million on top of $10.8 million in direct payments to farmers and $1.4 million for a continued farming program now in its tenth year on the Rocky Ford Ditch.

In the Rocky Ford Ditch program, Aurora provides some of the water it purchased to allow farmers to stay in business.

“We’re thinking we’ll continue the program in the future,” said Tom Simpson, Aurora’s engineer in the Arkansas Valley. “One thing of concern is the availability of water in the Arkansas basin.”

New storage projects also come with a price tag for mitigation.

Travis Bray of Denver Water said the $360 million Gross Reservoir expansion project, designed to increase yield by 18,000 acre-feet, has cost an additional $30 million in mitigation so far, as it moves toward full permitting, projected to happen in 2015.

Jeff Drager of the Northern Colorado Water Conservancy District said its $300 million Windy Gap Project, designed to increase storage by 90,000 acre-feet, has cost $19 million in mitigation and 3,000 acre-feet of water.

Along with the money, agreements with affected communities cost time. Both projects are a decade behind schedule.

“I was a young guy when we started, and now my kids are out of college,” Drager said. “I’d just be happy to get this done by the end of my career.”

Even conservation has hidden costs, said Jason Mumm with MWH Global, a consultant on many municipal projects. He presented detailed analysis that showed how reduction of water use drives water rates up. As a result, customers may wind up paying the same amount of money or more after paying for appliances that reduce water use.

“Conservation is good, but we do need to understand that it comes with its own costs,” Mumm said.

More Colorado Water Plan coverage here. More conservation coverage here. More Windy Gap Firming Project coverage here and here. More Moffat Collection System Project coverage here and here. More Southern Delivery System coverage here and here.


Southern Delivery System: Pueblo county firms net $65 million in orders during construction

August 7, 2014
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

The estimated construction cost of the Southern Delivery System, a water pipeline from Pueblo Dam to Colorado Springs, has been lowered to $841 million, about $145 million less than earlier estimates.

“It’s our responsibility to manage project costs as closely as possible to protect the investment being made by the SDS partner communities,” said Janet Rummel, spokeswoman for Colorado Springs Utilities.

The timing of SDS construction saved money primarily because of lower interest rates and lower pricing for materials and services, she said.

“Competitive bidding has allowed more than 100 Pueblo County-based businesses to benefit from $65 million in SDS spending so far,” Rummel said.

Although most of the benefit from SDS goes to Colorado Springs, Pueblo West, Security and Fountain also are SDS partners.

The pipeline has a capacity of 96 million gallons per day, with 78 mgd going to El Paso County.

Pueblo West will increase its capacity by 18 mgd through a connection to the newly constructed north outlet works.

Its current connection at the south outlet delivers 12 mgd — just above the metro district’s peak-day delivery. The outlet is shared by the Pueblo Board of Water Works and the Fountain Valley Authority. It also will be the hookup for the Arkansas Valley Conduit.

Pueblo West has paid $6.5 million for construction of its SDS connection, and estimates it will have paid a net price of $6.7 million — when all bills and refunds are totaled — by 2017.

The money came from reserves, said Jack Johnston, metro district manager.

“We have cash-funded the project out of reserves that were collected primarily during the growth years,” Johnston said. “They were fees that were set aside to help build the reserves to do capital projects.”

Pueblo West got some of the SDS savings, but just for the construction nearest the dam, where its 36-inch-diameter connection splits off from the 66-inch-diameter line that runs 50 miles north.

“Whatever savings were realized in building the north outlet works were passed on to us,” Johnston said.

Pueblo West had been negotiating an agreement to turn on SDS ahead of schedule, since its spur from the dam will be ready for use ahead of the rest of the project.

However, the board last month delayed action on a draft agreement that could allow early turn-on of SDS. If no agreement is reached, the startup would be whenever Colorado Springs gets the go-ahead from Pueblo County to turn on SDS, expected in 2016.

Colorado Springs must meet Pueblo County’s 1041 permit conditions in order to start SDS.

Those conditions include $50 million in payments, plus interest, to the Fountain Creek Watershed Flood Control and Greenway District; $15 million for road rehabilitation in Pueblo West; and $2.2 million for Fountain Creek dredging in Pueblo. All of those payments are included in the $841 million construction cost.

Colorado Springs also will pay $75 million for wastewater system improvements by 2024 within the city under the 1041 permit, but that cost is not included in the estimate.

More Southern Delivery System coverage here.


SDS construction reaches Colorado Springs ahead of schedule and under budget — The Colorado Springs Gazette

July 24, 2014
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Colorado Springs Gazette (Emily Donovan):

Huge pipes being tunneled underground near the intersection of Powers Boulevard and Constitution Avenue is the first big sign after almost two decades of work to increase the water available to the Colorado Springs area by a third…

Pipeline construction at the busy intersection is ahead of schedule, expected to be complete in September rather than November, said SDS spokesperson Janet Rummel…

A $125 million facility that will be able to process 50 million gallons of water a day, the treatment plant on the east side of Colorado Springs is halfway constructed, also ahead of schedule. Construction began in March 2013 and will be finished in fall of 2015. The plant is expected to put out drinking water in April 2016…

SDS construction is estimated to cost $847 million – $147 million less than the original estimation in 2009.

Rummel said money was saved by asking engineers to make designs that would be cost-effective without damaging drinking water quality, like keeping every part of the water treatment plant under the same roof instead of separate buildings.

This means SDS will cause less of a utilities rate increase for CSU customers than originally expected in 2009…

“This is the future of Colorado Springs,” said Jay Hardison, CSU water treatment plant project manager.

More Southern Delivery System coverage here and 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.


Colorado Springs: What do the next 50 years look like after SDS is completed?

July 1, 2014
Arkansas River Basin -- Graphic via the Colorado Geological Survey

Arkansas River Basin — Graphic via the Colorado Geological Survey

From The Pueblo Chieftain (Chris Woodka):

With Southern Delivery System nearing completion, Colorado Springs is going to work on a plan to provide water for the next 50 years.

“There is a lot of uncertainty in the West when it comes to water,” Leon Basdekas, project manager for Colorado Springs Utilities integrated water planning, told the Fountain Creek Watershed Flood Control and Greenway District board Friday.

Utilities’ last water plan was in 1996 and focused almost entirely on supply. It provided options about how to develop water rights that Colorado Springs obtained in the Arkansas Valley during the 1980s. Among the options were direct reuse, reservoirs and pipelines. The water plan eventually led to SDS, a $940 million pipeline from Pueblo Dam to Colorado Springs that will be completed by 2016. Those types of options still will be considered.

“Everything is on the table,” Basdekas said.

But the new plan also will look at demand, water quality, infrastructure, energy, regulation, legal issues and public opinion, he added. The goal is to develop a sustainable future supply that also respects social values, Basdekas said.

Among the biggest challenge is managing risk during climate change. Severe drought in 2012-13 was only one indication of how future water supplies could be affected.

At the same time, Colorado Springs is looking for as much public input as possible as it begins looking at the next 50 years.

“We need public involvement, so we just don’t go into a dark room and come out with a plan,” he said.

More Arkansas River Basin coverage <a href="


SDS: There is no Plan B — Colorado Springs Business Journal

June 29, 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 Colorado Springs Business Journal (John Hazlehurst):

CSU’s ongoing billion-dollar bet is the Southern Delivery System. Scheduled to go online in 2016, SDS will convey water from Pueblo Reservoir via a 66-inch-diameter underground pipeline to Colorado Springs. It will expand the city’s raw water delivery capacity by an eventual 55 million gallons per day (MGD), a nearly 50-percent increase in system capacity…

“What we’re hoping for is a record snowpack,” CSU Chief Financial Officer Bill Cherrier said in late March, “followed by a hot, dry summer.”

Cherrier said it with a smile, but he had neatly summarized CSU’s dilemma. Water in the reservoirs must both be replenished and sold. The sell side of the equation is driven by fixed costs, including system maintenance and replacement, energy costs and continuing capital investment. But buyers don’t care about CSU’s problems; they prefer to water their lawns with free water from the skies.

Per-capita water use has dropped sharply in the past 20 years, leading to corresponding reductions in the city’s long-term consumption estimates.

“The Base (i.e. revenue) forecast is for an estimated service area population (city, suburban, Green Mountain Falls, military) of about 608,552 and about 106,000 AF/yr for demand,” wrote CSU spokesperson Janet Rummel in an email. “The ‘hot and dry’ scenario uses the same service area population and estimates about 120,000 AF/yr demand. This particular ‘hot and dry’ scenario equates to an 80 percent confidence interval and adds about 13 percent to annual demands.”

That’s a precipitous drop from the high-side estimate of the 1996 water resources plan, which forecast a population in 2040 as high as 900,000 and water demand of 168,150 acre-feet. The base forecast, at 106,000 acre-feet annually, is only 1,800 acre-feet more than the community used in 2000, 40 years previously.

Does that mean CSU’s water managers dropped $841 million into a new water delivery system that we may not need until 2016? Does this prove that the project, originally conceived to furnish water for the Banning-Lewis Ranch development, is now entirely unnecessary?

Perhaps not…

“SDS is not a short-term solution,” Rummel said in a 2010 email. “The time to build a major water project is not when you have run short of water … [we need] to better prepare our community for drought, climate change and water supply uncertainty on the Colorado River.”

Many factors entered into the decision to build SDS. In 1996, there was no discussion of system redundancy, of having an additional water pipeline that could serve the city in case one of the existing conduits needed emergency repair. But 18 years later, the pipelines are that much more vulnerable to accident or malfunction.

In 1996, population growth and per capita water use were expected to continue indefinitely at historic levels. But they didn’t. Commercial and industrial use declined, and price-sensitive residents used less water. Indoor use declined as well as outdoor, thanks to restricted-flow shower heads and low-flush toilets.

SDS stayed on track. In the eyes of the water survivalists who conceived and created the project, the city’s rights on the Arkansas River had to be developed. They saw long, hot summers in the city and dry winters in the mountains. Opponents could make any arguments they liked, but these five words trumped them all.

Use it or lose it.

Undeveloped water rights are like $100 bills blowing down the street — someone will grab them and use them for their own benefit…

“This will be our last pipeline,” said CSU water resources manager Gary Bostrom. “We will never be able to develop a new water delivery system. When SDS is finished, that’s it.”

Bostrom’s peers in Las Vegas, Phoenix, San Diego and Los Angeles have reason to envy him. Colorado Springs has won the water wars. We’ve bought ourselves decades of time. Whether we save or squander this liquid bounty is up to us.

In 2040, the city may have 30,000 to 50,000 acre-feet a year of unneeded delivery capacity. That cushion will allow for decades of population growth and for the introduction of sophisticated irrigation techniques that will preserve our green city and minimize water use.

In years to come, members of the Colorado Springs City Council will decide how to preserve the city’s future. Will they heed Bostrom’s warning and encourage radical conservation? Will new developments be required to xeriscape, and preserve trees with drip irrigation devices?

More Southern Delivery System coverage here and here.


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