The Pueblo County Board of County Commissioners voted 3-0 on March 18, 2009, to approve a 1041 land-use permit for the Southern Delivery System with its staff recommended terms and conditions. On April 14, 2009, the Colorado Springs City Council voted 8-1 in favor of a resolution to formally recognize the commitments in the terms and conditions of the Pueblo County 1041 land-use permit, preserving our ability to construct the SDS Preferred Alternative – a pipeline from Pueblo Reservoir.

The following documents contain the proposed terms and conditions, mitigation requirements and two memoranda of understanding related to the project:

Details of the Pueblo County 1041 Permit Conditions

Following is a high level summary of the Pueblo County proposed conditions. Colorado Springs, acting in the capacity of project manager for SDS, would be required to:

Mitigation of Fountain Creek Impacts

•	Mitigate impacts to Fountain Creek from SDS by funding $50 million to the new Fountain Creek Watershed, Flood Control and Greenway District (District) or similar entity for erosion, sedimentation, flood control or water quality improvement projects.
•	Payments would be made in five annual installments after water begins flowing through the SDS pipeline.
•	Of that total, Colorado Springs would pay $300,000 in equal annual installments of $100,000 each beginning July 1, 2009, to assist in the identification and prioritization of projects, and to fund a study or studies of opportunities for constructing flood control and sediment control facilities which may include the feasibility of a dam or dams on Fountain Creek or its tributaries in order to improve flood protection for the Fountain Creek Basin.
•	Colorado Springs Utilities to invest $75 million in planned improvements to its wastewater collection system or reuse systems by Dec. 31, 2024 to protect against future spills, increase its opportunities for reuse, and mitigate possible water quality impacts from SDS.
•	Reduce sediment load in lower Fountain Creek prior to SDS construction by dredging and sediment-collection.

Stormwater Management

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Maintain stormwater controls and other regulations intended to ensure that Fountain Creek peak flows resulting from new development served by the SDS project within the Fountain Creek basin are no greater than existing conditions. This requirement can only apply to Project Participants who have the legal authority to regulate in this manner.

Protection of the Arkansas River/Pueblo Reservoir

•	SDS participants would continue participation in the Pueblo Flow Management Program to protect Arkansas River flows below Pueblo Dam for recreation and the Arkansas River Corridor Legacy Project.
•	· Colorado Springs Utilities to work with the Pueblo Board of Water Works to outline how the two cities will maintain a storage pool in Pueblo Reservoir to permit the release of water into the Arkansas River during times when the flow in the river could fall to dangerously low levels – at or below 50 cubic feet per second (cfs).
•	· Wait to begin construction at or near Pueblo Reservoir Dam until after the Bureau of Reclamation performs its dam-safety review and accepts the design construction plans.
•	· Colorado Springs Utilities would voluntarily participate in developing a management plan for Pueblo Reservoir to protect reservoir levels and recreational opportunities on Pueblo Reservoir to the extent feasible, when and if the Southeastern Water Conservancy District, Reclamation and other affected parties agree to develop such a plan.

Other Water Users

•	Colorado Springs could elect to add SDS project participants if the entities are located in El Paso and Teller Counties within the Arkansas River Basin and agree to meet criteria outlined in the conditions.

Property Owners/Construction

•	Treat private property owners fairly, avoid creating financial burdens for property owners, and use power of eminent domain “only as a last resort” to acquire property and easements.
•	Mitigate construction impacts and restore disturbed lands.
•	Take “substantial steps” within 36 months to “construct the permitted development.”

City County Review

•	The Pueblo Board of County Commissioners approved the 1041 Permit with conditions, subject to recognition by the Colorado Springs City Council of the commitments contained in the terms and conditions.

Colorado Springs to Review 1041 Permit Conditions

The Pueblo Board of County Commissioners approved the 1041 Permit with conditions, subject to recognition of the commitments contained in the terms and conditions.

“The announcement of these conditions is a major step forward to obtaining a land use permit in Pueblo County,” said SDS Project Director John Fredell. “But now our community must carefully review these conditions. With the approval of the 1041 Permit, we are in the good position of having two very good alternatives to choose from. SDS ensures we will have a dependable and cost effective way to deliver water to our community.”

A pipeline from Pueblo Dam still appears to be the less expensive of the two alternatives, although some of the conditions proposed by Pueblo County will narrow the price difference.

The Pueblo Dam alternative also has the advantage of taking water from the reservoir, a more stable source of water than taking it directly from the Arkansas River.