The titanic issues of limited water supply and the housing shortage clashed at the Colorado Springs Utilities board meeting Wednesday, along with major players in the housing industry. 

At the center of the debate is a proposed city ordinance that would require Utilities to have 130% of the water required to serve existing demand and the projected demand from undeveloped land asking to be annexed. The requirement, as proposed, would block the annexation of a 3,200-acre proposed community southeast of town, called Amara, if it took effect before the vote on Amara’s annexation in November. 

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The board did not take any action on the rule, proposing instead to take additional public comment after hearing fierce opposition and concerns about unintended consequences of limiting affordable housing and growth. An updated version of the proposed rule could be presented to the Colorado Springs City Council during a work session on Monday. The members of the Utilities board also serve on the City Council. 

Utilities board member Bill Murray pointed out the new proposal was a radical shift from last week when Utilities staff said it could serve the development proposed by La Plata Communities, which also developed a large portion of Briargate. 

“Monday I was told very precisely that a project like Amara could be handled,” Murray said. 

La Plata Communities President Doug Quimby accused Norwood, another major developer in town, of writing the proposed ordinance that would block Amara, limit competition and potentially increase housing costs.

“It was drafted in such a way to preclude the Amara annexation,” Quimby said. He said Utilities staff had assured him it could serve his proposed development, but last week between Monday and Wednesday the proposed ordinance appeared. 

Asked whether his company drafted or suggested the proposed ordinance, Norwood’s Senior Vice President Tim Seibert said in an email that the company has become increasingly concerned about drought conditions across the West and the community’s reliance on the drought stricken Colorado River basin. Colorado Springs receives about 70% of its water from the basin.

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“This has become an urgent matter for Colorado Springs and for virtually every municipality across the West. We, like many others, have met with city leaders on this subject and suggested specific solutions for discussion,” he said. 

During the meeting, Seibert voiced concerns about flag pole annexations including Amara that are connected to the city limits by a road rather than being adjacent and the pressures that could put on city infrastructure.  

WaterOrdinance_Draft.pdf

“The question ultimately is how do you want to grow,” Seibert told the board. Norwood owns a major chunk of Banning Lewis Ranch, a 28,000-acre property that is largely undeveloped, but is within city limits on the east side. The undeveloped property within Norwood would not be subject to the new water rule. 

Under the proposed 130% requirement, Utilities would be a few thousand acre-feet shy of what it would need to allow Amara to annex. Utilities estimates it provides on average 75,000 acre-feet of treated water to the community and it could provide 95,000 acre-feet of treated water, a significant existing buffer, according to slides presented during the meeting. An acre-foot of water can serve about three households. The city could lower its average use to allow more annexation or add additional water treatment capacity and infrastructure under the proposed rule.

The city is considering the rule as the West and particularly the Colorado River are facing a megadrought and the Bureau of Reclamation is asking the seven states that rely on the river to come up with 2 to 4 million acre-feet of savings next year. 

Utilities CEO Aram Benyamin said the staff arrived at the 130% buffer because it was an achievable goal. It was developed after “months and months of discussion,” Colorado Springs Chief of Staff Jeff Greene told the board. 

But Renee Zentz, CEO of the Housing & Building Association, said her group had not had enough time to take a position on the proposed water rule since last week. 

“We are asking to have a seat at the proverbial table,” she said. 

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Several Utilities board members called for greater public involvement for the proposed rule and suggested whether including it on the Monday work session would be best. Chairman Wayne Williams said releasing an updated proposed ordinance on Monday would give the public a chance to see tweaks. Following the work session, there could be a chance for major revisions, such as changes to required percentages, Williams said.

If the City Council does not act, board members said there could be a question placed before voters that could guide water requirements for annexations.

“I want it on our shoulders,” board member Randy Helms said.