A proposed water-supply rule that could block properties from annexing into the city of Colorado Springs took a step forward Monday, with staff recommending against an alternative proposed by a developer.

The draft rule requires Utilities to have 130% of the water required to serve existing city demand and the proposed future demand of a property wishing to annex, a rule that could block a 3,200-acre parcel east of Fountain from coming into the city. 

Colorado Springs hearing on Amara annexation pushed back

La Plata Communities, the company proposing the 3,200-acre annexation known as Amara, suggested an alternative rule last month that would have applied a water supply standard further along in the development process. 

Abby Ortega, Utilities’ water resources manager, said applying a water supply rule after properties have been added to the city and before homes are built could lead to infrastructure problems. For example, if a developer ultimately wants to build 1,500 homes but Utilities only has water for 200, the pipeline built out to those homes could be larger than needed. A small amount of water in a large pipeline can lead to water quality issues, she said. 

If the city does not have the water to serve homes after they are annexed, developers may then seek to leave city limits, she said.  

“You have got a lot of risks on both the developer and the city,” Ortega said of the proposal to apply water rules after annexation. 

Utilities board members, who are also members of City Council, raised other questions about the water rule, including whether the underlying metrics used to determine the 130% supply will change in the new year with new data. 

Residents raise drought concerns at meeting on annexation southeast of Colorado Springs

The staff is recommending using a five-year average to determine current city water demand, about 72,000 acre-feet of water, and that average is not expected to change, Ortega said. An acre-foot of water can cover an acre under a foot of water. Utilities staff also estimate they could provide 95,000-acre-feet of water annually, which provides a buffer for dry years and accommodates growth.

However, Ortega said while Utilities has been modeling for climate change and changes to water management along the Colorado River, those changes to water supply are happening quicker than anticipated. Colorado Springs relies on the Colorado River for about 70% of its water.  

Councilman Dave Donelson asked if other communities along the Front Range are applying a similar water supply rule. Ortega said similar communities, such as Aurora, are getting more risk averse but they haven’t applied a similar 130% standard. 

Kevin Walker, a Housing and Building Association of Colorado Springs representative, said his group is expected to come down in favor of a water supply standard, but proposed lowering the standard to 128%. He also asked for a more thorough discussion of how numbers are calculated. 

At the lower standard, Amara still would not meet the threshold for annexation, Utilities staff said. 

Fountain says it would welcome Amara, but developers say it couldn’t be done

La Plata Communities Chief Operating Officer Mike Ruebenson asked the board to consider grandfathering in Amara, a community expected to have 9,500 homes, and not applying the new water standard to the property. He also asked the board to consider the project a unique or extraordinary circumstance given the city’s need for additional housing. The board would consider those arguments when it considers the annexation petition for the property, Utilities Board Chairman Wayne Williams said. 

The City Council could vote on the water rule at meetings on Jan. 10 and Jan. 24. 

“We are continuing to receive input. We welcome that,” Williams said.