The Pueblo County Commissioners hire Wright Water Engineering to review SDS 1041 permit compliance

May 22, 2015
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Jeff Tucker):

If rushing water had to threaten a county road, the timing couldn’t have been better for the Pueblo Board of County Commissioners.

The commissioners on Wednesday unanimously approved a contract with Wright Water Engineering to the accompaniment of text messages from the public works department informing them that the surging Fountain Creek was threatening a portion of Overton Road.

The $115,000 contract will allow the county to tap into Wright Water’s expertise as it continues to evaluate whether Colorado Springs has complied with provisions of the permit regarding stormwater control that allowed Colorado Springs to build the Southern Delivery System water pipeline from the Pueblo Dam to Springs.

County Land Use Attorney Gary Raso said that in his conversations with the engineers at Wright, they were very familiar with the Fountain Creek and its issues in the past.

The Fountain serves as the primary drainage for Colorado Springs, along with other communities including Fountain, Monument, Security and Widefield.

“Pueblo County is incurring significant costs due to the failures of the north,” said Commissioner Terry Hart.

But the study focuses on Colorado Springs, particularly whether the city’s lack of any sustainable funding for stormwater improvement projects that would mitigate the impacts to Fountain Creek is a violation of the agreement.

The county is waiting until August to decide whether to issue a showcause hearing to Colorado Springs on whether to revoke or make significant changes to the agreement.

Again, the commissioners discussed the impact of the various burn scars in the area, including the Waldo Canyon burn scar.

But Commissioner Sal Pace noted that the Springs had eliminated its stormwater enterprise long before the Waldo Canyon Fire devastated the community.

“I think talking about the burn scar is a distraction,” Pace said. “These problems existed before the Waldo Canyon Fire. It implies that this is a new problem because of an act of God, when it was an act of man.”

Commission Chairwoman Liane “Buffie” McFadyen noted that the burn scar brings the overall lack of stormwater infrastructure into greater focus.

“This particular set of storms, combined with the burn scar, combined with the lack of infrastructure, will give Wright engineering a worst-case scenario,” she said.

More Southern Delivery System coverage here and here.


Pueblo County considering show cause 1041 hearing for Southern Delivery System

May 12, 2015
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

Pueblo County is a step closer to calling for a hearing to decide whether to repeal or significantly alter the provisions of a 1041 permit allowing the Southern Delivery System to be built through the county.

On Monday, commissioners gave direction to staff to release a report to Colorado Springs detailing the progress of an investigation into whether that city’s lack of any specific funding for storm water permits constitutes a violation of the permit.

According to the report, staff’s recommendation is that, so far, the investigation shows there’s enough evidence to go forward with a show cause hearing on the 1041 document. But staff also asked for permission to hold off on issuing such an order until the first of August.

Waiting two months would give staff time to continue working with Colorado Springs, hire Denver-based Wright Water Engineering as a storm water consultant and give the new mayor and city council in Colorado Springs time to assess the issues for themselves.

“I am confident that there is some probability of success in coming up with some solutions to bring to the board, either as revised conditions or new amendments to the agreement,” said Ray Petros, water counsel to Pueblo County.

Petros said that it’s been six years since there was any dedicated funding in place for Colorado Springs’ storm water improvements and in that time, the number of infrastructure improvements that could help mitigate flows and improve water quality in the Fountain Creek have backlogged to the point that nearly $534 million worth of projects are awaiting completion.

Staff has been investigating the issue since April. Petros said it has been difficult to ascertain what high-priority projects have been completed or what kind of money has actually been spent on projects that would be beneficial to Pueblo County.

At the core of the investigation is the Springs’ decision to disband its storm water enterprise in 2009, along with the failure at the polls in 2014 of a measure to establish a new enterprise.

“Our issue has been from Day 1 that the 1041 permit requires some kind of dedicated funding,” said Commissioner Terry Hart. “No pun intended, but it’s been six years of water under the bridge and we’re painfully aware of that.”

Petros quoted a few passages within the 1041 permit that mentioned the funding source specifically, including the environmental impact statements attached to the permit.

The original staff report noted that the delay also gave Colorado Springs Utilities time to respond to information requests, but Hart said he felt Pueblo should set the timeline on that response.

Public Works Director Alf Randall said that the information requested by staff wasn’t complicated but understood if Colorado Springs staffers preferred to wait until the new mayor and council were sworn in.

Randall also said it would be good to have the information once Wright Water’s contract with Pueblo was finalized.

“I don’t understand what would be highly complex about providing staff a list of projects in 2015,” Randall said.

He said he thought it could be done by June 1.

The commissioners then directed that the June 1 deadline be included in the memo to Colorado Springs.

There are likely more investigations to follow. Commissioner Sal Pace asked staff to consider land purchases, reclamaneighbors. tion issues and potential impacts to Pueblo West homeowners in the investigation.

But the investigation came from a resolution focusing specifically on storm water issues.

All three commissioners said they would like to see future investigations into those other issues.

The commissioners also noted that the past week’s rainfall was a reminder of the urgency for the improvements, as runoff from Colorado Springs churned mud and debris in Fountain Creek and eroded property along Overton Road.

“We have a job to advocate for our constituents and I think the representatives from Colorado Springs, whether they like the process or not, would agree there’s been an impact to the community,” said Commission Chairwoman Liane “Buffie” McFadyen.

More Southern Delivery System coverage here and here.


Colorado Springs Utilities plans to appeal judgment that favored Pueblo-area rancher — The Colorado Springs Gazette

May 11, 2015
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Colorado Springs Gazette (Billie Stanton Anleu):

Colorado Springs Utilities has filed notice that it intends to appeal a jury’s $4.6 million judgment in favor of rancher Gary Walker, who let Utilities build a 5.5-mile pipeline on his land for the Southern Delivery System.

Walker and Utilities had agreed that the easement was worth $82,900, and the pipeline was installed on his northern Pueblo County land in 2012 as a conduit for the Southern Delivery System, or SDS.

That regional project is designed to pump Arkansas River water from the Pueblo Reservoir to Colorado Springs, Fountain, Security and Pueblo West, delivering up to 96 million gallons a day to those communities. Water delivery was expected to begin in 2016.

At trial, Walker’s counsel said Walker was negotiating a conservation easement worth more than $30 million with the Nature Conservancy, but degradation of the utility easement destroyed those prospects.

Colorado Springs, which owns Utilities, “had no opportunity to prepare a rebuttal to this surprise, unprecedented argument,” said the notice of intent to appeal filed late Thursday.

The notice questions, among other things, how a property value can be agreed upon at $82,000 and then valued at more than $30 million before a jury, and whether it was appropriate to deny the jury an opportunity to view the property.

The Pueblo County District Court jury deliberated for nine days before rendering its verdict April 23.

Neither Walker and his attorneys nor the Nature Conservancy returned calls Friday.

But SDS spokeswoman Janet Rummel said storms on the land drained water onto the pipeline alignment, causing erosion after the easement had been restored.

“We’ve been working ever since to fully restore it,” Rummel said. “His attorney was claiming actually not as much about the reclamation, but really about his lack of ability to ensure future conservation easements on his property. We really saw no evidence presented that that was the case. That was changing the big concern at the 11th hour of this trial. We need to take into account the effects on our ratepayers.”

Utilities paid Walker about $720,000 to move his cattle and laid irrigation lines along the easement to ensure that plants for restoration would survive, she said.

“From our perspective, we’ve gone above and beyond to address the concerns raised.”

The Fountain Creek Watershed, Flood Control and Greenway District isn’t taking a position on the legal battle, said Executive Director Larry L. Small. But the district is supposed to receive $10 million every year for five years to mitigate the extra flow that Fountain Creek will experience.

“If this drags on, it could impact SDS from becoming operational – and our revenue. That wouldn’t be too good because we’re waiting for that money to begin doing the work we need to do.”

From The Pueblo Chieftain (Chris Woodka):

Rains along the Southern Delivery System pipeline scar through Walker Ranches is again causing flooding problems in northern Pueblo County.

“Prior to the SDS crossing Walker Ranches, we never had floods like these from that area,” said ranchver Gary Walker. “Mother Nature’s defenses took care of it.”

Walker is involved in litigation with Colorado Springs over the 5.5-mile stretch of buried 66-inch diameter pipeline. A jury in April awarded Walker $4.665 million in damages, which Colorado Springs is appealing.

On Friday, rains created a river of mud along the pipeline route, causing some flooding in adjacent areas. Walker supplied aerial photos to The Pueblo Chieftain that show water crossing and sheet off the pipeline scar, with several hundred feet of plastic irrigation pipe — used for revegetation — hanging above a chasm of rushing water.

Walker said this is a violation of Colorado Springs Utilities’ commitments under Pueblo County’s 1041 permit for SDS because the area has not been returned to pre-construction conditions.

He first raised the issue of the pipeline route, which crosses arroyos, in 2008. He wanted the pipeline to follow the route of the Fountain Valley Conduit, constructed in the 1980s, which he said would be less damaging to his ranchland.

“Now Walker Ranches will become part of the flooding problem to downstream residences of Fountain Creek and the Arkansas River,” Walker said. “These are not Biblical events. Our weather is just returning to normal and our drought is ending, as any ‘old-timer’ like me will tell you.

From The Pueblo Chieftain (Chris Woodka):

Colorado Springs Thursday appealed a $4.665 million jury award for damages to Walker Ranches by the Southern Delivery System water pipeline.

The appeal was made in Colorado Court of Appeals in Denver.

The city’s lawyers said the April 23 verdict was delivered after a nine-day trial without any other findings or calculations.

The city’s lawyers added they had no chance to rebut the closing argument of Walker Ranches’ lawyers that the SDS pipeline across 5 miles of the property had diminished the value of surrounding land and that testimony did not support the verdict.

They also claimed the basis for diminished value of the property was not revealed until opening arguments and the value itself only in closing arguments.

A court judgment on the $4.665 million award was entered Wednesday by Pueblo District Judge Jill Mattoon.

Gary Walker, whose family owns the land, said the Nature Conservancy was negotiating with him to buy conservation easements for $1,680 per acre on about 15,000 acres, about $25 million.

“The city had no opportunity to reply to this surprise, unprecedented argument,” Colorado Springs attorneys wrote in the appeal.

Neither side disputed the value of the $82,900 150-foot-wide utility easement for a buried 66-inch diameter pipeline which Colorado Springs offered $1,400 an acre.

Colorado Springs’ filing lists 14 points of law, as well as a catch-all “any other issues” that were not covered by crossappeal.

Among the points raised by Colorado Springs lawyers is whether conservation can be considered the highest and best use for property, a topic Walker elaborated on in an interview with The Pueblo Chieftain after the trial.

Walker explained that conservation is the main purpose for Walker Ranches and illustrated that by pointing out that the millions of dollars from previous conservation easements was used to purchase more land with the intent of preserving ranch land and open spaces for future generations.

Colorado Springs’ attorneys also raised the question of whether Mattoon erred by denying the jury an opportunity to view the property.

More Southern Delivery System coverage here.


Southern Delivery System: Jury awards rancher $4.6M — The Pueblo Chieftain

April 28, 2015
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

A Pueblo jury late Thursday awarded rancher Gary Walker a $4.6 million judgment against Colorado Springs Utilities for the Southern Delivery System pipeline crossing Walker Ranches in Northern Pueblo County.

Walker contends the amount is far short of what the pipeline has cost him. During the trial, he contended that the conditions of the SDS easement have jeopardized a $25 million conservation easement he was negotiating with the Nature Conservation for $1,680 an acre on 15,000 acres.

Walker said the conditions of the utility easement through his property allow for access that negates the value of the conservation easement, and that soils from offsite that were used as fill are contaminated with seeds from invasive species. Rain storms already have caused erosion on the pipeline scar and the damage could be greater in the future.

He also said he is fearful that Colorado Springs will take action against him if normal ranch activities interfere with the SDS permanent easement that is 100 feet wide across 5.5 miles of Walker Ranches.

The jury awarded Walker $4.665 million in damages in addition to the $82,900 actual value of the easement. The actual value was part of Judge Jill Mattoon’s instructions to the jury.

“We stung Colorado Springs, but it will do little to protect the next little guy or rare environmental landscape that gets in their way,” Walker said in a written statement provided to The Pueblo Chieftain. “My attorneys were amazed at CSU’s response against one rancher. It was like using a tank to kill a fly.”

The rancher charged that Colorado Springs drove up litigation costs intentionally. In December, Walker won a Pueblo District Court decision on costs of about $500,000 to that point, but the state Supreme Court pushed the decision back until the trial concluded. In that case, Walker said Colorado Springs had needlessly delayed trial.

“Colorado Springs punished us a great deal both financially and emotionally but I am glad we did it and I would do it again even though we lost a lot more than we gained,” Walker said. “Our financial loss is minor when compared to the loss of another open space and protected wildlife habitat area.”

Walker plans to raise the issue of how he was treated by Colorado Springs to Pueblo County commissioners, who issued a 1041 permit for SDS in 2009.

“My hope is that Pueblo County stands their ground and protects everyone by holding the city of Colorado Springs and their utility company to the terms of the 1041 contract they signed in 2009,” Walker said.

Walker also indicated that he is nervous about whether he will actually be able to collect the $4.6 million, since he expects Colorado Springs to appeal.

Colorado Springs has not indicated if it will ap- peal the judgment.

“We are disappointed in the outcome and will be exploring our options to protect the interests of those residents who are helping to fund the SDS project and will be impacted by this outcome,” said Janet Rummel, SDS spokeswoman for Colorado Springs Utilities. “We do not believe the result was supported by the evidence presented.”

She contended that Colorado Springs has worked to address Walker’s concerns and to offer fair compensation for the easements, along with paying $720,000 to relocate cattle during construction.

“We will continue to work with Mr. Walker and all easement holders on the SDS alignment to complete successful restoration and revegetation, as well as to responsibly maintain the condition of our easements,” Rummel said.

More Southern Delivery System coverage here.


Southern Delivery System: Closing arguments expected to conclude today in Walker Ranch lawsuit

April 22, 2015
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

Closing arguments are expected to wrap up sometime today in a jury trial to determine the value of the Southern Delivery System easement across Walker Ranches in Pueblo County.

Expert witnesses for Colorado Springs testified Tuesday, the seventh day of the trial.

Attorneys for both sides indicated the testimony would wrap up soon and they were preparing to present closing arguments today. After that, the jury will begin its deliberations.

Court records indicate Gary Walker was offered $100,000 for easements on a 150-foot wide strip 5.5 miles long through Walker Ranches in northern Pueblo County. Colorado Springs, which is building SDS, also paid Walker $720,000 to relocate cattle during three years of construction.

Construction on SDS began in 2011, and includes 50 miles of underground pipeline 66 inches in diameter in Pueblo and El Paso counties. The final phase of construction in Pueblo County is the Juniper Pump Station being built near Pueblo Dam.

Walker claims the choice of pipeline route has contributed to erosion and diminished the value of his land. His court records claim SDS has caused $25 million worth of impact on his ranches, which total 65,000 acres. He’s also claiming damages under Pueblo County’s 1041 permit for SDS, which protects landowners from out-of-pocket expenses and requires Colorado Springs to use eminent domain only as a last resort.

District Judge Jill Mattoon is presiding over the trial.

More Southern Delivery System coverage here.


Trial opens on Walker’s SDS costs — The Pueblo Chieftain

April 15, 2015
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

A contentious jury trial over the value of easements for the Southern Delivery System pipeline crossing Walker Ranches opened Monday in District Judge Jill Mattoon’s courtroom.

Colorado Springs Utilities offered about $100,000 for the easements, and has paid rancher Gary Walker $720,000 for moving cattle to alternate grazing pastures. Walker claims the value of SDS impacts on his land are $25 million, according to court documents. The 66-inch diameter pipeline has a 50-foot permanent easement and 100-foot temporary easement across 5.5 miles of Walker Ranches.

The total length of the SDS pipeline from Pueblo Dam to Colorado Springs is about 50 miles.

Walker spent about eight hours on the stand Monday and Tuesday testifying about the impact SDS has had on his cattle, violating existing conservation easements, introducing toxic materials and invasive species and other issues he has experienced since Colorado Springs constructed the underground pipeline in 2011. Water from the pipeline scar flooded other areas of the ranches and contributed to erosion, Walker said.

Walker stressed throughout that he does not believe he has been treated fairly in his dealings with Colorado Springs.

“After dealing with Colorado Springs since 2011, I’m worried about anything that occurs between you and I,” Walker pointedly told Colorado Springs attorneys during a testy cross-examination.

Colorado Springs in February won an appeal to the state Supreme Court to overturn a $500,000 judgment for court costs awarded by retired District Judge Victor Reyes in December. Walker had claimed Colorado Springs delayed the trial while he accrued costs for expert witnesses.

Colorado Springs is questioning Walker’s basis for damages, claiming conservation easements do not affect the parcels where the pipeline was built and that Pueblo County’s 1041 permit is an agreement between Colorado Springs and Pueblo County, not individual landowners. One of the conditions of the 1041 permit states that landowners should not have out of pocket expenses because of real estate transactions related to SDS.

Because of the large volume of documents in the case, the trial is expected to take about two weeks.

More Southern Delivery System coverage here.


Water in the West and California’s drought: Why Colorado Springs should care — Colorado Springs Utilities

April 8, 2015

Colorado Springs circa 1910 via GhostDepot.com

Colorado Springs circa 1910 via GhostDepot.com


From Re:Sources Blog (Patrice):

Living in the West offers many advantages. Wide open spaces, majestic mountains and amazing recreational opportunities, to name a few. Still, there are challenges and water is certainly one them.

If you’ve seen the recent news, extreme drought is taking its toll in California. In light of this, we caught up with our own water planners – Abby Ortega and Leon Basdekas – to learn if what’s taking place with our neighbors could affect our community and why we need to stay involved in what’s happening around the region.

Some of our customers many ask, could what’s taking place in California happen in Colorado?

Extreme drought can happen anywhere, and we are certainly not immune. We continuously monitor our water supply situation and maintain a storage reserve in our reservoirs to meet customer demand for at least one year.

Why should we take an interest in or follow what’s happening with drought in the West?

In Colorado Springs and across the Front Range, we are heavily reliant on the Colorado River for our water supply. The Colorado River starts in Colorado, but we only keep a portion of the flow for use in the state per the Colorado River Compact. The Colorado River also serves Arizona, Utah, Nevada, Wyoming, New Mexico and California (see below for a breakdown). There is also an obligation to Mexico. When any of the states or Mexico are in an extreme drought, their reliance on the Colorado River water may increase, possibly resulting in ripple effects that could negatively impact us. At any given time, the Colorado River supplies about 70 percent of our community’s water. Drought can also affect the levels in Lake Powell and Lake Mead, which part of the western United States relies on for power production.

Will Colorado Springs experience any impact from the situation in California?

The California drought will not have direct impacts to our community’s water supply yet. We are working closely with the Upper Basin States to create a proactive contingency plan in the event that storage levels in Lake Mead and Lake Powell drop to critical levels.

What is Colorado Springs Utilities doing to help protect our community from this type of situation?

Maintaining a dependable water supply for Colorado Springs residents and businesses is one of our community’s greatest challenges. Continuous long-term water planning is the reason we have a reliable water system today that supports our economy and quality of life. For us, planning is part of our daily responsibilities and includes factors such as water sources, demand, water rights, infrastructure, storage and much more. In addition, we are currently updating our Integrated Water Resource Plan, which provides the roadmap for sustainably addressing water supply and demand issues, while reflecting our community values.

What can customers do to help?

The intelligent use of water will always be a priority for our community, which has done a great job of adapting to our semi-arid climate. Our customers continue to find ways to use water wisely and we can help. A good place to start is our website, which has free xeriscape class schedules, efficiency ideas, DIY videos, and more. Folks should also join in the conversations we’re having through the Integrated Water Resource Plan process. There are opportunities for input, whether online or at upcoming meetings.

More Colorado Springs Utilities coverage here.


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