Poncha Springs Suing Salida Over Alleged Violation of Unified Sewer System Agreement

Posted By: Dan R May 19, 2023

The Town of Poncha Springs is suing the City of Salida over what Poncha Springs says is a violation of a 2010 intergovernmental agreement.    

Poncha Springs, in conjunction with two development companies, Tailwind Group, LLC, and Full Views, LLC, have filed a Summons and Complaint in Chaffee County District Court.

The Town of Poncha Springs says the town and the City of Salida entered into agreements in 2010 to create a unified sewer system, designed to serve all existing and future customers of both municipalities. The City and Town agreed at that time that all customers of the unified system would pay the exact same rates for tap fees and sewer service.

However, the Town of Poncha Springs says that Salida has recently decided to unilaterally refuse access to the sewer system for new customers in Poncha Springs unless the Town agrees to revise the 2010 agreements to place the $14 million cost of a new interceptor only on Poncha Springs customers. This is contrary to the 2010 agreements and is having the effect of shutting down all development in Poncha Springs—another violation of the agreements as Salida agreed to assume immediate and sole duty and responsibility for financing, operating, maintaining, improving and expanding the sewer system serving Poncha Springs’ existing and future corporate limits.  

Salida further agreed to operate, maintain, and expand the sewer system to accommodate and not inhibit planned growth and development within Poncha Springs. 

In their statement, Poncha Springs says they have tried repeatedly to come to agreement with Salida on the issue, but the City has consistently held to the position that this is solely a Poncha Springs cost and that is simply not what the 2010 agreements say. Poncha Springs says was left with no alternative other than bringing suit against Salida to enforce the rights that it bargained for in 2010. Poncha Springs is joined in that suit by the project developers of the Tailwind and Full Views developments, both of which have been denied sewer service and whose developments are completely halted by Salida’s actions. 

The statement concludes, The Town of Poncha Springs continues to have optimism that Salida will come to recognize the Town’s rights under the agreements, but in the meantime, will vigorously act to enforce those rights in court.

Dan R
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