From The Pueblo Chieftain (Chris Woodka):
Colorado Springs is upping the ante for what it would pay for stormwater control on Fountain Creek after getting a cold shoulder by Pueblo officials from presentations in January.
“I’ve dug and dug and dug,” Colorado Springs Mayor John Suthers told The Pueblo Chieftain editorial board Monday. “This is an enforceable contract.”
Colorado Springs is offering to spend at least $445 million over 20 years on 73 critical projects that have benefit both to the city and Pueblo County. That is more than double than the $190 million over 10 years If the projects are not done by that time, Colorado Springs would spend another $24 million annually until they are complete.
The offer was made Friday to Pueblo County commissioners as part of negotiations over the 1041 permit for the Southern Delivery System.
In addition, the city is offering to make EPA requirements enforceable by Pueblo County, to pay for $125,000 in administrative costs of the Fountain Creek district, offer more help with dredging and provide $3 million more for dredging Fountain Creek in Pueblo.
Finally, it would release the first $10 million for Fountain Creek dams to the district as part of the condition to provide $50 million over a 5-year period.
Colorado Springs wants to tie up all of the loose ends with the 1041 permit by the end of April, when testing of SDS will be complete.
“The city is not going to delay operating the system and let warranties expire on a $900 million project,” Suthers said, adding that litigation would be the next step if an agreement with Pueblo County cannot be reached.
Pueblo County commissioners must decide whether commitments made in the 1041 permit have been met before SDS is turned on. There is no timetable for when that would happen.
In January, Suthers and other Colorado Springs officials met with the commissioners, Pueblo City Council and the Pueblo Board of Water Works on the stormwater issue. Commissioners asked for more long-term assurances and more commitment to resolving Fountain Creek concerns. City Council asked for $500 million over 10 years, along with other conditions. Even the water board, which works cooperatively with Colorado Springs Utilities, backed the county.
Suthers outlined how the $445 million would be spent over the 20year period, escalating from about $20 million annually to $25 million per year. It would not include any outside grants. Payments would be guaranteed by excess revenue payments from Colorado Springs Utilities that total about $32 million a year.
Pueblo County engineers, at Colorado Springs’ expense, would be able to jointly review projects in order to ascertain benefits.
“CSU is an enterprise, and will guarantee the expenditures if we fall short,” Suthers said. [ed. emphasis mine]
There would be fines of up to $1 million annually if the required amounts were not spent, he added. Provisions for dispute resolution are included, and Colorado Springs would pick up the legal tab if Pueblo County prevailed in a court case.
Initially, the money would come from city cutbacks, refinancing and Utilities. That would not preclude Colorado Springs from identifying a permanent source of funding.
“Also, whatever we resolve with the EPA by court order or consent decree would be incorporated in the IGA, so is enforceable by Pueblo County,” Suthers said, referring to the city’s current violation of its stormwater permit under the Clean Water Act.