Controversial amendment to water supply ordinance considered Monday in Colorado Springs

COLORADO SPRINGS, Colo. (KRDO) -- The City Council discussed a controversial proposed ordinance amendment Monday that would require the water supply from Colorado Springs Utilities to meet 130% of existing usage and the projected demand of a proposed extension area -- based on a three-year rolling average -- before extending water to new areas.

"That formula is at 126% right now," said Utiliies CEO Aram Benyamin. "But we can only guarantee current users in the city, not future development. There are around a dozen proposed annexations being considered right now."

Several Council members are critical of the proposed changes and want more time to study data related to what the percentages actually mean, and whether they could limit or halt current or future development.

"You can't combine the water ordinance with the annexation," said Councilman Bill Murray. "It's a volatile mix and we're not doing ourselves or the city a service."

The proposal could affect the plans for the proposed 3,200-acre Amara annexation that will be voted on by the Council next month; the Council expected to receive a fiscal and economic impact study of that proposal during Monday's work session.

"The study shows that the annexation would be good for the city and the economy," said Tom Strand, Council President. "I think we'll vote on it Nov. 22 even if the water matter is still unresolved. We'll see how much headway we make in the next 30 days. There may be a request to put it on hold, or delay it to some degree."

Nearly 10,000 homes could eventually be built on the Amara property, which is located between Colorado Springs and Fountain.

Murray described a town hall meeting on the annexation -- scheduled for 5 p.m. Tuesday -- as a waste of time, given the Council's request for more time to study the matter.

"We still need the public process, the public involvement," said Councilwoman Nancy Henjum.

Benyamin, city planning director Peter Wysocki and Marla Novak, of the Housing & Building Association of Colorado Springs, agreed that more time is needed to answer questions and address concerns.

Councilman Randy Helms said that he's worried about how the proposed ordinance amendment will affect developers.

"How are they supposed to invest their time, energy and money in a project when they may not know what the water formula is at a given time?" he asked.

Officials said that it could take a month, or longer, for the Council to be ready for a vote on the water ordinance.

In a related matter, KRDO NewsChannel 13 has learned that a request filed by a developer last year to "de-annex" 2,400 acres from the city of Fountain, was denied by city officials.

It's believed that developer -- for the property known as Kane Ranch -- wanted to join Amara, and be annexed into Colorado Springs, after Fountain officials told him that they couldn't guarantee a water supply at the development site along Squirrel Creek Road.

Kane Ranch and Amara are on opposite sides of the road.

"But I think it will work out for the Kane Ranch developer in the long run," said Todd Evans, deputy city manager for Fountain. "We're working on some reservoirs and acquiring some water rights that may get that development going."

Speaking of water rights, Colorado Springs Utilities recently paid between $27 million and $30 million to acquire rights to agricultural water in the eastern Arkansas River valley -- which would add significantly to the utility's water supply.

"The farmers are more efficient in watering because of pivot irrigation, and we made a deal for that extra water," Benyamin explained. "That's another 3,000 acre-feet of water. The deal should be finalized by the Council soon."