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.


Southern Delivery System: The Pueblo County commissioners take first step to evaluate Colorado Springs’ 1041 permit compliance

March 31, 2015
Fountain Creek Watershed

Fountain Creek Watershed

From The Pueblo Chieftain (Jeff Tucker):

The Pueblo Board of County Commissioners got a first look at a resolution that will allow the board to retain legal counsel along with engineering consultants and other staff to evaluate whether Colorado Springs’ lack of any consistent stormwater funding is a deal-breaker for the Southern Delivery System.

The board took no official action on the measure, instead instructing attorneys Gary Raso and Ray Petros to fine-tune the resolution before it comes back for a vote.

The crux of the issue is the failure of a ballot measure in Colorado Springs in November that would have created a dedicated funding source for stormwater improvements in Colorado Springs that could mitigate the impact of runoff into the Fountain Creek.

The work that would be cleared by the resolution will allow staff to examine what’s been done so far and what still needs to be done for Colorado Springs to comply with the stormwater requirement in the SDS 1041 permit.

“We need to develop a factual basis for any action we take,” said Raso. “It would be the first time that Pueblo County would have an independently established set of facts about the stormwater flowing through the Fountain Creek.”

Petros told commissioners Monday that Colorado Springs has provided staff a summary of its stormwater expenditures.

Colorado Springs has indicated that it has budgeted $17 million this year for more improvements, but Petros said there’s yet to be any indication what those improvements are or if they’re among the 239 projects worth more than $534 million identified in 2013.

Commissioner Sal Pace said he wants a clear picture on what projects Colorado Springs has planned that directly mitigate impacts on the Fountain Creek and which ones are aimed at fixing the challenge of runoff from the various burn scars in the area.

It’s possible that building flood control projects for the burn scar will have an impact on the flooding in Fountain Creek. But Commission Chairwoman Liane “Buffie” McFadyen wondered whether the impacts of the Waldo Canyon Fire are accounted for under the current agreements over the SDS, since those were signed before the first spark of the catastrophic fire ever landed.

McFadyen also worried that the work set forth in the resolution may be at odds with the needs of the county’s own constituents in Pueblo West. The metro district ties into SDS.

“I don’t want to see Pueblo West used in a way that could be interpreted as gamesmanship in all of this,” she said.

Commissioner Terry Hart noted that the $50 million being paid to the Fountain Creek Watershed Flood Control and Greenway District likely won’t be enough to pay for the mitigation projects in Pueblo County and asked Petros and Raso to include a specific date in the resolution as to when the information will be ready.

Petros suggested the end of June, to give the newly elected mayor and City Council time to get sworn in after April 7 elections and for next month’s lawsuit over compensation by Colorado Springs to Walker Ranches to run its course.

However, Hart said he’d like to see it sooner.

“I didn’t create this problem,” he said. “What created this problem was the failure of the question in November.”

More stormwater coverage here.


Southern Delivery System: “It’s a wonderful, wonderful day to celebrate” — John Fredell

March 19, 2015

From The Colorado Springs Gazette (Jakob Rodgers):

The last 50-foot pipe of the 50-mile-long Southern Delivery System arrived at a construction site Wednesday, marking a key milestone for the project as it nears completion next year both on time and under budget.

“We put to rest a lot of doubters that we’d get this done,” said Lionel Rivera, Colorado Springs’ former mayor, who helped approve the project.

With Kool & The Gang’s “Celebration” playing in the background, a truck hauled the massive blue pipe to a site just south of Pikes Peak International Raceway. Crews will place it underground in the coming weeks, completing a system spanning from Pueblo Reservoir to a new water treatment facility in Colorado Springs, which is under construction.

More than 7,000 of the steel, 66-inch-diameter pipes were installed since in 2010. That included a mile-long stretch bored 85 feet below Interstate 25 – a tunnel that was $10 million cheaper than creating a surface trench, according to Colorado Springs Utilities.

Current and former elected officials from across southern Colorado, along with several contractors who have worked on the project, were among scores of people on hand to watch the pipe being delivered. Many signed their names on it.

“It’s great – we’ve been at this a long time,” said John Fredell, the Southern Delivery System’s program director. “It’s a wonderful, wonderful day to celebrate.”

Three pump stations and the treatment facility are expected to be completed this year, with the system up and running for customers in Colorado Springs by the first quarter of 2016, Fredell said.

The project is on track to cost $841 million, below Colorado Springs City Council’s approved budget of $880 million in 2009, which did not account for inflation or rising material costs. The council also serves as Utilities’ board. Those savings rise to about $150 million when factoring in the cost of inflation and increases in material costs, said Fredell, who credited design changes to the pipeline and water treatment facility for much of the savings.

From the Denver Business Journal (Cathy Proctor):

One of the biggest water projects in the western U.S. will hit a major milestone this month, when the last piece of 50 miles of pipe is laid for the Southern Delivery System, the $841 million project to bring new water supplies to Colorado Springs and nearby communities.

The project includes 50 miles of pipeline, three pump stations and a water treatment plant. It will deliver water from the Pueblo Reservoir to Colorado Springs, Fountain, Security and Pueblo West.

More than 7,000 sections of blue-colored, welded, steel pipe 50 feet long and most of it 66 inches in diameter were installed on the project during the last 3 1/2 years of construction.

The project spent $204 million on pipe and installation, according to the Colorado Springs Utilities.

“The pipe is the main artery for this water project and we are extremely pleased with how the pipeline construction went,” said John Fredell, the program director for the Southern Delivery System project.

The project is in the final year of construction and Fredell said the costs are expected to be nearly $150 million under the original budget…

Northwest Pipe (Nasdaq: NWPX), based in Vancouver, Washington, manufactured the SDS pipe at its Denver plant.

Three contractors installed the pipe, Garney Construction, headquartered in Kansas City with an office in Littleton; ASI/HCP Contractors of Pueblo West; and the heavy civil division of Layne, a construction firm based in The Woodlands, Texas, which has four offices in Colorado.

Construction is continuing on other elements of the Southern Delivery System project, including a $125-million water treatment plant and pump station that will have the capacity to treat and pump 50 million gallons of water per day. Three pump stations will help move water uphill, about 1,500 feet in elevation, from the Pueblo Reservoir, also are under construction.

Construction on the remaining portions of the project are expected to be finished by the end of 2015.

From KRDO (Rana Novini):

Community leaders gathered Wednesday to celebrate the completion of pipeline construction for the Southern Delivery System (SDS). The project consists of more than 7,000 50-foot sections of steel pipe that have been installed over the last three and a half years. The pipe will transport water stored in the Pueblo Reservoir north to Pueblo West, Fountain, Security and Colorado Springs.

“It’s taken many years and it’s taken many city councils and it’s taken many leaders and many workers to accomplish this,” said Colorado Springs City Councilman Merv Bennett. “Our friends to the south, the Lord gave them the Arkansas River as their delivery system. To the north, Denver has the South Platte River as their delivery system. We have Fountain Creek and we ran out of that water in 1912.”

Proponents of the SDS argue the pipeline will ensure Colorado Springs and surrounding areas can continue to grow, especially toward eastern El Paso County. The region will have to worry less about drought and watering restrictions.

“Water is important. It’s the lifeline of a community,” said Lionel Rivera, former mayor of Colorado Springs. “It’s the way you grow and I think we’ve ensured the water supply for at least the next 50 years.”

Rivera was mayor from 2003 until 2011 and helped get the project rolling. He said Tuesday that it was one of the most rewarding things he did as mayor.

“It’s very exciting, a little bit emotional to see that pipe,” Rivera said. “It just made me think of all the stuff we had to go through to get this approved. We were told back when we started it that it couldn’t get done from a political standpoint, but we proved the doubters wrong.”

The project has had opponents over the years, many from Pueblo who are concerned over stormwater issues.

Though pipeline construction is complete, workers still need to build water treatment plants and pump stations. The first drop of water is expected to be delivered in spring 2016.

From The Denver Post (Bruce Finley):

Construction crews are poised to lay the final pipeline link for Colorado’s biggest water project in decades — an $841 million uphill diversion from the Arkansas River to enable population growth in Colorado Springs and other semi-arid Front Range cities.

Eleven 2,000-plus horsepower pumps driven by coal-fired power plants will propel the water from a reservoir near Pueblo through a 50-mile pipeline with an elevation gain of 1,500 feet.

This is the first phase, moving up to 50 million gallons a day, for a Southern Delivery System that utility officials estimated will eventually cost $1.5 billion.

“It means we will have greater water security,” Colorado Springs utilities spokeswoman Janet Rummel said. “Businesses need water. Our communities need water to survive. It means we can continue to serve our population as it grows.”

Water challenges loom across Colorado, with state officials projecting a 163 billion-gallon shortfall. A few years ago, drought forced Colorado Springs to stop watering municipal parkways and gardens.

The diverted water can be used only within the Arkansas River Basin, officials said, ruling out sales to south Denver suburbs. And the river water, after treatment, must be returned to downstream farmers.

Colorado Springs residents have been paying for the project through water bills, which increased by 52 percent over four years. Utility officials spent $475 million from bonds.

The water will flow by next March, officials said. At full buildout, the system will store water in two new reservoirs east of Colorado Springs.

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):

The Southern Delivery System pipeline’s completion was marked by a contingent of El Paso County officials and a smattering of Pueblo County folks as well.

For John Bowen, president of ASI Constructors of Pueblo West, the SDS project has meant bread on the table as well as water in the pipes.

“It’s generated $50 million in contract values for our company,” Bowen said during a ceremony to mark completion of the SDS pipeline from Pueblo Dam to Colorado Springs. “We were able to grow as a business during a time when a lot of contractors were laying people off.”

ASI was the primary contractor for the connection at Pueblo Dam, as well as 12 miles of the 50-mile SDS pipeline route, and relied on 70 local businesses for support services. The SDS project generated $800,000 in wages for ASI workers.

More Southern Delivery System coverage here and here.


Southern Delivery System update: Damages awarded to rancher vacated by Colorado Supreme Court

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

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

The Colorado Supreme Court vacated a Pueblo District Court order that would have required Colorado Springs to pay Pueblo County rancher Gary Walker more than $500,000 in costs in a legal dispute over Southern Delivery System.

The order, issued last week, throws out former District Judge Victor Reyes’ Dec. 4 decision to award Walker Ranches $387,000 plus 8 percent annual interest since 2011 for costs leading up to a trial that has been postponed several times. That amounted to about $509,000.

Reyes retired at the end of last year.

Reyes issued a supplemental order that the payment was binding because of Colorado Springs’ 1041 land-use agreement with Pueblo County that prevents “undue financial burdens” for Pueblo County residents affected by SDS.

The state Supreme Court directed Pueblo District Court to determine costs after a trial to determine the value of the easement for SDS across Walker Ranches. The trial is scheduled to begin in April.

Colorado Springs had argued legal costs should not be negotiated until after the trial concluded, while Walker’s lawyers said costs were incurred even as Colorado Springs sought delays for trial.

Walker has not made a request for payment under the 1041 agreement from Pueblo County commissioners, and the county is not a party to the dispute over payment, said Ray Petros, special counsel for Pueblo County.

Walker and Colorado Springs are miles apart on the value of the SDS pipeline easement. Colorado Springs contends it is worth $100,000, while Walker’s attorneys filed documents indicating damage to the ranches as a whole from the pipeline is $25 million.


Pueblo County is caught between enforcing water quality upstream and supporting a variance for the City of Pueblo

January 24, 2015

Fountain Creek Watershed

Fountain Creek Watershed


From The Pueblo Chieftain (Chris Woodka):

Pueblo city and county officials are at odds over water quality regulations that could add millions of dollars to city sewer expenses.

The rift was great enough that the Pueblo Area Council of Governments backed down from a vote Thursday to support a variance for selenium and sulfates the city is seeking from the Colorado Water Quality Control Commission.

PACOG delayed its vote one month, after putting it off in December as well, in order to allow Pueblo County Commissioner Terry Hart to participate in debate.

Hart, along with Commissioners Sal Pace and Liane “Buffie” McFadyen, raised concerns that the county’s ability to insist on standards from upstream communities in El Paso County under the 1041 permit for Southern Delivery System would be compromised if they agreed to support a variance for Pueblo.

“Commissioner Hart is not here, and he wants to have a say,” McFadyen said. “In our future, we will have water quality issues in this county and we need to be consistent.”

That means the city will have to go into a state pre-hearing on Feb. 4 without support from other local governments. The variance itself will be considered by the state in April.

Pueblo City Manager Sam Azad said sewer fees could double or triple if the city is forced to meet numeric standards.

The reach of the Arkansas River below the Pueblo wastewater treatment plant has naturally high levels of selenium and sulfates. If numeric standards are enforced, no additional releases would be allowed.

Pueblo would have to pay up to $92 million and $9 million annually to seal its wastewater lines from collecting groundwater and to treat water released from the plant to remove all traces of contaminants, said Wastewater Director Gene Michael.

Sealing the lines from collecting groundwater, $35 million of the total, would actually increase selenium because existing treatment removes some of it from water that’s released. The disposal of waste from reverse-osmosis treatment would compound environmental damage, Michael said.

“Let me be crystal clear, the county is not in favor of spending $92 million,” Pace said.

One of the conditions of the delay was to give environmental attorneys John Barth of the county and Gabe Racz of the city time to work out a way to gain county support for the resolution without jeopardizing future SDS deliberations.

While Pace said that agreement was close, the city disagreed.

“It’s unlikely John Barth and the city would agree to anything,” said Dan Kogovsek, city attorney.

After an hour of discussion, City Council President Steve Nawrocki agreed to back off a vote until the February meeting in hopes of getting unanimous support from PACOG before the April state rule-making hearing. Pace and McFadyen promised the vote would not be delayed again.

More water pollution coverage here. More Fountain Creek watershed coverage here. More wastewater coverage here. More stormwater coverage here. More Southern Delivery System coverage here.


Stormwater hangs up SDS request — The Pueblo Chieftain

January 17, 2015
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

Controlling stormwater on Fountain Creek has surfaced as a key issue for use of the Southern Delivery System in light of the rejection of the Pikes Peak Drainage Authority by El Paso County voters in November.

A proposal to use the SDS pipeline to deliver water to a system just north of Colorado Springs could be a test of Pueblo County’s 1041 regulations for SDS.

Donala Water and Sanitation District has asked for an exemption or finding of no significant impact from Pueblo County 1041 conditions on its plan to move water from rights it purchased in 2009 on the Willow Creek Ranch south of Leadville.

A Pueblo County analysis of votes in the Donala district shows its residents rejected stormwater control by a 60-40 margin.

“Serious concerns over compliance with (1041 conditions) are raised by the failed efforts in El Paso County, including within the city of Colorado Springs and Donala, at establishing, financing and maintaining stormwater controls,” Pueblo County Planner Joan Armstrong wrote in a letter to Donala last week.

“The recent failure of the November ballot pro­posal in El Paso County on stormwater fees only heightened those concerns.”

Donala plans to use excess capacity in the SDS pipeline from Pueblo Dam to Colorado Springs and a conveyance agreement with Colorado Springs Utilities to move an average of about 436 acre-feet (143 million gallons).

SDS is not expected to come on line until at least 2016, and Donala is not the only community interested in using it. Colorado Springs has the majority of capacity in the line, which won’t reach its full volume of 78 million gallons daily for several decades.

The move would provide about one-third of the water for 2,600 taps serving 8,000 people in the Donala district. It also would reduce Donala’s dependence on non-renewable groundwater from the Denver Basin aquifer.

Donala asked for the exemption because the amount of water falls short of the 500-acrefoot threshold that normally would trigger a 1041 permit review.

Armstrong asked Donala to address the question of whether larger amounts of water could be moved through the pipeline.

She also explained that the county also is interested in the maximum — not just the average — flows that could be moved to Donala through SDS, and in complying with certain conditions of the 1041 permit for SDS, including stormwater control.

The county asked Donala if it still intends to amend its service plan to control stormwater, as manager Kip Peterson indicated in a 2013 interview with The Pueblo Chieftain.

The county also wants to know which of the projects identified in the 2013 El Paso County Stormwater Needs Assessment by CH2MHill would serve Donala and whether the district intends to fund or construct any of those projects.

More Arkansas River Basin coverage here.


Southern Delivery System: 1 mile bore under I-25, Fountain Creek, and the railroad should be completed 1st quarter

December 28, 2014
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Colorado Springs Gazette (Monica Mendoza):

A giant teeth-gnashing machine is boring its way 85 feet under Interstate 25, two sets of railroad tracks and Fountain Creek. The machine is cutting a 1-mile long tunnel about 20 miles south of downtown Colorado Springs for a section of a massive pipeline project that will carry millions of gallons of water from the Pueblo Reservoir to Colorado Springs. It is the most complicated and dangerous part of the 50-mile stretch of the Southern Delivery System project, said Brian Whitehead, Colorado Springs Utilities project manager. If all goes as planned the tunnel should be completed in the first quarter of 2015.

“This is the last section of the pipe to be constructed and the most complex part,” Whitehead said. “There are risks – it’s not something anyone can do.”

Construction on the biggest Utilities project in its history began in 2010. The Southern Delivery System project was envisioned as the way for the city to handle future growth, said Jay Hardison, Colorado Springs Utilities water treatment plant project manager. It took years to plan and receive the proper permits from federal, state and county officials. The plan also was reviewed and approved by the Federal Aviation Administration because the new water treatment plant and holding tank off Colorado 94 are in the flight line near Colorado Springs Airport.

SDS cost, water rates

– Project cost: $841 million.

– Utilities customers’ water rate increased by 12 percent in 2011 and 2012 to cover cost of project.

– Utilities customers’ water rate increase by 10 percent in 2013 and 2014.

Southern delivery system timeline

2009: Final approvals and permits secured.

2010: Construction started.

2011: Construction began at Pueblo Dam and on the raw water pipeline.

2012: Pueblo Dam connection complete.

2014: Raw water pipeline construction complete.

2015: Raw water pump stations expected to be complete.

2016: Water treatment plant and finished water pump stations expected to be completed and SDS delivers water to Colorado Springs, Fountain, Security and Pueblo West.

2020-2025: Phase 2 could begin to expand capacity at the water treatment plant

Source: http://www.sdswater.org

More coverage from Monica Mendoza writing for The Colorado Springs Gazette:

At the start of the economic recession in 2008-09 work slowed at the Northwest Pipe company, which manufactures pipe in Denver. Then in 2010, the contracts for the massive $841 million Southern Delivery System project started dropping, said John Moore, Northwest Pipe operations manager. Colorado Springs Utilities was building a 50-mile pipeline from Pueblo Reservoir to Colorado Springs.

“When it dropped, we went from hanging on, hibernation mode, to Pueblo and production,” Moore said. “At the apex, we had 235 people employed working two shifts. For us it meant business was up.”

Utilities has hired 380 businesses in Colorado to plan and build the pipeline and water treatment plant, spending an estimated $489 million on contracts in the state. Of that, Northwest Pipe won $110 million in work.

The company made four to five pipes a day. In all it manufactured 7,000 pieces of pipe for the project. Beyond the direct contracts, there was a ripple effect, Moore said.

“Anytime you have a project this size, you are coordinating with suppliers and trucking companies,” Moore said. For example, during peak production, as many as 25 trucks a day left Northwest Pipe’s manufacturing facility. “We used local suppliers – the truck company was local.”

“The other thing that might be missed in the number is that most of the people who work on these crews putting the pipe in, there is a lot of inspection required, people making sure they are doing things right,” Moore said. “We have reps coming in, there is a huge travel industry associated with this project in rental cars, hotels and air travel.”

There is about one mile of pipeline left to complete in the project. Then Northwest Pipe will be done and moving on to water projects in Texas and other states, Moore said. The company has nine manufacturing plants across the country.

“Across the country, water infrastructure is getting old – water pipes are getting old,” Moore said.

More Southern Delivery System coverage here and here.


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