Colorado Springs Utilities to pay $7.1 million to settle lawsuit with Pueblo County rancher — Colorado Springs Gazette

July 6, 2015
Southern Delivery System route map -- Graphic / Reclamation

Southern Delivery System route map — Graphic / Reclamation

From The Colorado Springs Gazette (Billie Stanton Anleu):

Utilities announced the settlement Thursday. It had appealed the jury decision May 7, followed by Walker’s appeal May 14. Under the settlement, both appeals will be dismissed.

The city-owned utilities company also will fence revegetated areas on the ranches to protect them from cattle and will erect berms to reduce erosion across the 5.5-mile easement Walker provided for installation of the Southern Delivery System pipeline.

The rancher and Utilities had agreed that the easement was worth $82,900, and the pipeline was installed there in 2012…

But the SDS easement caused problems, Walker said at trial, with rain eroding the pipeline scar and Utilities introducing soils contaminated with seeds of invasive species. He also said the pipeline jeopardized a $25 million conservation easement he was negotiating with the Nature Conservancy for $1,680 an acre on 15,000 acres.

The settlement says both parties are committed to work together to manage and maintain the right-of-way.

Utilities said the pact gives it “additional certainty” about SDS costs, thus minimizing risk to ratepayers.

“It has always been our intent when working with property owners to use the court process as a last resort,” SDS program director John Fredell said in a news release. “By successfully resolving these issues with Mr. Walker, we can focus on completing the required revegetation on his property and finishing the SDS project on time and under budget.”

From the Colorado Springs Independent (Pam Zubeck):

Colorado Springs Utilities and Pueblo County rancher Gary Walker have come to terms to settle a lawsuit over land needed for the Southern Delivery System water pipeline.

The city-owned utility will pay Walker Ranches $7.1 million, ending litigation that led to a jury award of $4.75 million earlier this year and subsequent appeals filed by both the city and Walker.

More Southern Delivery System coverage here.


Southern Delivery System: Springs, Walker settle for $7.1M — The Pueblo Chieftain

July 3, 2015

From The Pueblo Chieftain (Chris Woodka):

Colorado Springs Utilities and Gary Walker have reached a $7.1 million settlement for the damage to Walker Ranches from the Southern Delivery System pipeline.

The pipeline crosses 5.5 miles of the 63,000-acre property on its route from Pueblo Dam to Colorado Springs. The $841 million SDS project is scheduled to go online next year and will supply water to Colorado Springs, Fountain, Security and Pueblo West.

On May 6, a jury awarded Walker $4.75 million, which included a $4.665 million judgment beyond the $82,900 stipulated value of the easement across Walker Ranches. Damages plus interest would have brought the total payment to $5.78 million, according to a joint press release.

Utilities disputed the amount, and filed an appeal on May 7. Walker Ranches appealed the decision on May 14. Those appeals were dismissed as part of the settlement reached June 16, but announced on Thursday.

The final agreement resolves all claims for $7.1 million, the press release said.

Utilities will also install fencing on Walker Ranches to prevent cattle from entering the area of the SDS pipeline scar that is being revegetated, and will work with Walker to erect berms on the property to reduce erosion.

The agreement also commits both parties to work together in the future to protect the right of way.

Utilities said the settlement provides more certainty about the ultimate cost of the project, reducing the possibility of an expensive appeals process.

“It has always been our intent when working with property owners to use the court process as a last resort,” John Fredell, SDS program director, said in the news release. “By successfully resolving these issues with Mr. Walker, we can focus on completing the required revegetation on his property and finishing the SDS project on time and under budget.”

Walker, when contacted by The Pueblo Chieftain , declined to comment because of the conditions of the settlement.

During the trial, Walker claimed the SDS project had compromised a $25 million conservation easement on 15,000 acres he was negotiating with the Nature Conservancy. He has used about $13 million from past easements to expand the ranches, which is part of a long-term plan to prevent further urban sprawl in northern Pueblo County.

Ray Petros, Pueblo County’s special counsel, said he has not seen the settlement agreement, so he is uncertain about how the county’s 1041 permit for SDS would be affected. The county is teeing up compliance hearings later this year on revegetation and Fountain Creek flood control, which are referenced in conditions that are part of the 1041 permit.

More Southern Delivery System coverage here and here.


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.


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.


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.


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