• Stormwater under the Platte Avenue bridge a couple years ago.

As we reported last week, Pueblo County commissioners remain agitated over the city's abolishing its stormwater enterprise.

In its May 3 letter to the City Council and Mayor Steve Bach, they urged "immediate action" to solve a "funding deficit."

"Life and property within both El Paso County and Pueblo County are in peril each day that the city fails to control its stormwater flows in Fountain Creek," the letter says.

The letter refers to the stormwater enterprise, which was abolished in 2009 after voters approved a measure prohibiting exchange of money between the city and its enterprises. The campaign to rid the city of the "rain tax" was led by anti-tax crusader, Douglas Bruce, who now sits in jail convicted of tax evasion — a real role model.

Anyway, Pueblo's letter cites the Independent's Dec. 31, 2009, report "After the Storm," which provides background on the issue.

Pueblo commissioners then tie the stormwater fee to the Southern Delivery System.

After the enterprise was dismantled in 2009, the Springs City Council assured Pueblo County that a replacement funding source would be developed, Pueblo County commissioners note, but more than 2.5 years later, no such funding has been secured.

Pueblo County issued a construction permit for SDS, and that permit could be rescinded if Colorado Springs doesn't live up to its promises.

County President Pro Tem Jan Martin wrote a letter to Pueblo County dated May 10, two days after Bach talked of a stormwater-related "day of reckoning" awaiting the Springs. In it, Martin says, "Protecting our watershed is a high priority for City Council ..."

Really? Where's the evidence? Rather, the Council is busy getting its package of road projects together to be included in an extension of a sales tax for the Pikes Peak Rural Transportation Authority. The tax doesn't sunset until the end of 2014, but Councilors and others are rabid to get it renewed and want it on this November's ballot.

Earlier this month, the Council's priority was calling two special meetings to deal with the $1.15 million severance package of Memorial Health System's outgoing CEO and kick the board out of office. Another special meeting dealing with Memorial issues has been set for next week.

A movement to place a stormwater ballot measure on the November ballot, or any other ballot, isn't even up for discussion. The only attention it's gotten is when Bach vowed to "find efficiencies" in the city budget to carve out a few bucks for channels and drains, while calling on the Council as the Utilities Board to do the same. He's hoping they find upward of $10 million a year.

The city's stormwater backlog is $300 million, at a minimum.

This community has lost kids in flooding channels, for God's sakes.

Martin's letter lists things the city is doing about stormwater, but all three points she makes were pre-existing promises the city made to get the SDS permit, and the money comes from Utilities. And her third bullet point, fixing the sewer system, was triggered at least in part by a federal Clean Water Act lawsuit filed against the city.

Maybe Colorado Springs thinks a few kind words of assurance will placate Pueblo County. But history disproves that. Tenth Judicial District DA Bill Thiebaut of Pueblo has sued the Springs on more than one occasion over Fountain Creek, most recently winning a ruling involving Utilities' certification from the state to use the creek for SDS' return flows. The state will have to reassess whether it figured correctly in saying SDS won't cause much harm, if any, to the creek.

And let's get real. Isn't it about time to do something?

If you normally pay your utility bill at the drive-up dropbox off Colorado Avenue downtown, you can't do that for the next six weeks.

The parking lot is getting a face-lift, blocking access. Here's the press release with some other options for paying your bill:

Beginning Monday May 14, the Colorado Springs Utilities Customer Service Center (UCSC) east parking lot will be resurfaced, reducing the available parking space at this facility.

During this project, access from Colorado Avenue is restricted and the drive-up payment drop box will not be accessible. The project will last about six weeks, with a tentative end date of June 30.

The UCSC lobby, located at 111 S. Cascade Avenue (Cascade Avenue and Colorado Avenue) will still be open during normal business hours, Monday through Friday, 8 a.m. to 5 p.m. Customers will be able to access the UCSC facility from Cascade Avenue, with available parking in the south parking lot.

We apologize for the inconvenience and ask that customers consider using one of our other utility bill payment options.
Make a payment at a payment kiosk located at 7-Eleven® stores throughout Colorado Springs. Cash and debit card payments are free until June 30, 2012.
Use our free Autopay program to have payments automatically deducted from your bank account. You can sign up with our online registration form at csu.org
Pay by credit card, debit card or electronic checks online or by phone through Western Union Speed Pay®.
Pay your bill by cash, check or money order at more than 30 local retailers - including Safeway, Albertsons, King Soopers and Ace Cash Express - through Western Union Convenience Pay.
Use a payment dropbox. There are several locations throughout the city, including Wal-Mart, Safeway, Albertsons and King Soopers.

UPDATE: Memorial Health System Interim CEO Mike Scialdone sent this message to staff today:

On behalf of Memorial Health System, I would like to thank City Council for their work on what I know has been a very difficult issue. Memorial looks forward to working with the new Board of Trustees during what is a very exciting time for our health system and community.

On behalf of the associates, we also look forward to putting the noise and distractions behind us and focusing our community on what we are about, and that is great patient care.

———————————-ORIGINAL POST FRIDAY, MAY 4 11:10 a.m.———————————————

With a few revisions from earlier parameters, the Colorado Springs City Council named a new board Friday morning for Memorial Health System, effective immediately.

The group includes seven members, not five as previously indicated, and the appointees come from various backgrounds, not just health care as had been implied Tuesday when Council voted to remove the previous board effective Wednesday.

Going with seven instead of five was to accommodate the likelihood of absences during summer months when some might have prescheduled vacations, according to Council President Scott Hente. Also, several of the new group have served previously on the MHS board.

The new members:

Marcy Morrison, former state insurance commissioner, state House representative and Manitou Springs mayor;

Jim Johnson, head of GE Johnson Construction Co.;

Fred Veitch, an executive with Nor'wood Development Group;

Jan Weiland, vice president for investments, Cascade Investment Group;

Debbie Chandler, CEO of Colorado Springs Health Partners;

Dirk Draper, vice president of CH2M Hill engineering and construction company;

Curtis Brown, local executive with UBS Financial.

Named as alternates were Doug Stimple and Steven Gold.

"We thought they all had governance backgrounds, and all had a long commitment of service in the community," Hente says. Some were former board members, including Morrison, Weiland and Brown.

Hente says the Council didn't give the new board any marching orders per se, but that "the guidance is pretty clear. There's some pretty specific things in the city code, and we didn't expand on that." He didn't elaborate.

Hente says there's nothing new to report on the city's analysis of the former board's severance deal with CEO Larry McEvoy, who's last day is today. The previous board voted to pay him 18 months salary, $1 million, along with other perks valued at about $110,000. His contract called for only six months salary as severance pay.

Lastly, Hente says the interim ceo, Mike Scialdone, Memorial's CEO, who in a statement Tuesday said the "unprecedented" ouster "poses major risks" to Memorial, might have changed his mind.

"I've subsequently talked to Mike since then," Hente says. "If you were to ask Mike right now, he wouldn't necessarily have that opinion now. Just the normal caution you would have. He has since talked to a couple of oversight committees, bond agencies. He's explained the situation. I think he feels a lot better of where we're going now. They feel they understand what's going on. I think it was more nervousness, caution, but he's feeling better about things now."

Scialdone had expressed worry over the board change affecting Memorial's bond rating, which influences borrowing costs, "regulatory concerns" on which he didn't elaborate, and the "anticipated transition to University of Colorado Health," with whom the city is negotiating a lease. He didn't elaborate on why he was concerned about risks to those things.

We've asked Scialdone to elaborate but haven't heard back. Check later for more information.

• Memorial North

Meeting in special session Tuesday afternoon, City Council voted 7-0 to ask the Memorial Health System board of trustees to voluntarily resign by 5 p.m. Wednesday or be ousted at that time.

Council also voted 7-0 to spend up to two weeks further investigating its legal options regarding a $1.15 million severance package given by the board to Memorial CEO Larry McEvoy last week.

The exit pay deal created a firestorm of opposition from citizens, which came to a head when Council convened at 4 p.m. for the special meeting. Council members, without Brandy Williams and Bernie Herpin absent, heard legal advice from City Attorney Chris Melcher in closed session for 90 minutes before reconvening and taking the two actions.

• McEvoy: Council wants to revisit his exit deal.

Council quickly intends to replace the board members (secretary Marijane Axtell Paulsen resigned Monday for an unrelated reason, another board member said) by appointing a new five-member group with experience in health care. No names were mentioned, but Council President Scott Hente said the Council would meet at 9 a.m. Friday to select a new board.

McEvoy, 46, came to Memorial just over four years ago with limited administrative experience and quickly rose to the top, from which he promoted the idea of converting Memorial to an independent nonprofit. That idea, though, took a backseat in a bidding process to a proposal by the University of Colorado Health System to take Memorial into its fold. A lease with UCH is being worked out in preparation for an August public vote.

McEvoy leaves the position Friday making $670,009 a year, after receiving a $120,000 raise in January, and his contract called for paying six months salary as severance. However, the board offered 18 months or just over $1 million, along with other perks such as keeping his 2007 Camry Hybrid worth $15,000, and $20,000 for "career development" in seeking new employment

Board Chair James Moore and board member Vic Andrews told the Indy after the meeting ended they hadn't decided whether they would step down voluntarily. They quickly left City Hall without further comment. Moore has said the payment was increased to $1.15 million to be in line with industry standards, because McEvoy's pay and severance were much too low.

• Moore: Unsure he'll resign.

Hente said the Council will revisit the contract in open session no later than May 16, the next normal meeting day for the Utilities Board, which is comprised of City Council. The two-week interim is designed to give the city legal staff time to determine whether the deal the Memorial board made with McEvoy, which was signed Monday night, can be undone.

Before the vote on the board ouster, Hente said, "I do this very reluctantly. We had a discussion last week about citizens who volunteer their services and expect some kind of respect. ... These are great people, and I know them. I know what's in their heart. They're trying to do what's best for this community. But I think this Council wants to do what's best for the hospital." He said his top two concerns were great patient care and having a great hospital to merge with UCH.

Several citizens spoke during the public comment time, none in favor of the Memorial board's actions.

Dr. Ron Raines from Memorial spoke about the severance deal not helping morale, which already has been low "for a very long time." He also noted the line employees have paid the price for a low census of patients by being sent home when there's not enough business to keep a full crew.

Former City Attorney Jim Colvin said to allow the severance package to stand "will harm and perhaps even destroy the citizens' trust in the legislative branch of government of the city of Colorado Springs."

Former Councilman Sean Paige said the generous payment could set a precedent with other outgoing hospital officials expecting the same treatment. And resident Walter Lawson noted that Memorial gave McEvoy, who had never served as a hospital CEO before coming to Memorial, a great opportunity to gain experience "with a four-year OJT" (on-job training) and earn more than $2 million while doing so.

Former Councilman Tom Gallagher went so far as to suggest McEvoy get nothing, because severance pay is supposed to be paid when an executive is dismissed, not when he chooses to resign. McEvoy has said his departure was by mutual agreement with the board.

The board members, according to Memorial's website, are Chairman James Moore, Vice Chair Vic Andrews, Secretary Dr. Bill Crouch, Yolanda Fennick, Dr. Donald Gazibara, Paul Johnson, G. Jeff Murrell, Arlene Patterson, and ex-officio members, Chief of Staff Dr. Karen Anthony, who voted Monday not to ratify the severance package, and Dar Larson, auxiliary president.

Ironically, after previous Memorial CEO Dick Eitel retired in early 2008 after 33 years at the hospital (making $444,412 when he left), the Memorial board gave him only $118,624 for vacation and sick time, but no other severance other than six months of health insurance.

Mike Scialdone, the Memorial chief finance officer who takes over Friday as interim CEO, issued this statement after the Council's action:

While Memorial respects City Council’s decision, this unprecedented governance change poses major risks to the health system at a critical time. We will begin work immediately to address these risks, which include a potential change in our bond rating, possible regulatory agency concerns
and keeping Memorial stable for an anticipated transition to University of Colorado Health.

Memorial’s main focus is to ensure the quality of care and operational and fiscal stability and to put Memorial in a strong position for a smooth and successful transition to University of Colorado Health. Although the public remains focused on the separation agreement between the Board and outgoing
CEO Dr. Larry McEvoy, we are focused on keeping Memorial strong and healthy in the months to come.

On behalf of Memorial, I want to thank members of the Board of Trustees for their dedication and service to our patients, staff, physicians and volunteers. I’ve worked with this Board for four years, and they’ve devoted thousands of volunteer hours and years of their lives to ensure we meet our mission to provide the highest quality health care. Their commitment, professionalism, judgment and focus under extraordinary conditions have been exemplary.

• Steve Bach

Bach's town halls serve as forums for sharing his ideas and strategies with the public. His first town hall focused on downtown issues, such as surveillance cameras and an Olympic celebration. This one will address the southeast section of Colorado Springs, plans for streetscapes, the city budget and Community Advancing Public Safety (CAPS).

Here are the details:

MAYOR BACH’S TOWNHALL MEETING SET FOR MAY 2, 2012

Mayor Steve Bach will hold his next Townhall Meeting on Wednesday, May 2, 2012 at the Southeast YMCA from 6:30-8:00 pm. The Southeast Family Center/Armed Services YMCA is located at 2190 Jetwing Drive, Colorado Springs CO 80916. For directions, please visit http://southeast.ppymca.org/locations

You can also tune in from home:

Mayor Bach's Town Hall Meeting Streaming Live

Mayor Steve Bach's second town hall Meeting on Wednesday, May 2, 2012 will be streaming live from the Southeast YMCA beginning at 6:30 pm. You can see the live stream on www.bachsoffice.com. Questions will be submitted on cards during the meeting. Citizens can also submit questions before or during the meeting via email to: PublicComm@SpringsGov.com or via social media sites including twitter @MayorSteveBach and Facebook https://www.facebook.com/stephengbach.

Topics of discussion will be priorities for the Southeast section of Colorado Springs including:
* Job Creation
* Recruiting City Leaders
* Citizens Advancing Public Safety Program or CAPS
* Deerfield Hills Streetscapes
* Citizen Input on Priorities

The Southeast Family Center/Armed Services YMCA is located at 2190 Jetwing Drive, Colorado Springs CO 80916. For directions, please visit http://southeast.ppymca.org/locations. All questions about the meeting can be directed to the City Communications Office at 719-385-5906.

The terms of Memorial Health System CEO Larry McEvoy show he'll collect well over the $1 million previously reported. Here's the breakdown:

McEvoy will collect more than $70,000 in unused vacation time and drive away in his hybrid vehicle.

And in case you're wondering what "outplacement" means, that $20,000 will go toward "career placement services" in McEvoy's search for another job, according to a hospital spokesman.

McEvoy is departing by mutual agreement with the board and is being paid 18 months pay as severance, although his contract only called for six months pay if he was dismissed without cause.

McEvoy was paid $550,000 until Jan. 1, when he was given a raise to $670,000 — or, in language normal people would understand, $322.12 an hour. The raise was part of "an organization-wide market adjustment," Memorial spokesman Brian Newsome says in an e-mail.

He also adds:

About 1,000 employees received wage increases last year to bring the organization, as a whole, to the 50th percentile. This rollout began with employees, then directors, and lastly execs. Larry remains below the 25th percentile even after this adjustment. His total compensation is well below the 50th percentile. The average severance for a CEO in a comparably-sized system is 24 months. Eighteen months severance is at the 25th percentile.

McEvoy's contract never included provisions for severance pay if there was a "change of control" of the hospital, whereas other executives did have such a clause, which pays six months salary, Newsome says.

In case you wonder how Memorial treats the little people at Memorial, you know, the 1 percent, here's Memorial's policy for severance at various levels:

Severance Pay
The amount of severance pay is based upon your position in the organization and the length of service with MHS. The guidelines set by the Board of Trustees are:
Vice President and above – 26 weeks
Director & Manager – 12 wks + 1 wk/yr of service up to 12 wks for total maximum 24 wks.
Supervisors & Staff members – minimum 2 wks + 1 wk/yr of service up to 10 wks for total maximum 12 wks.

This pay will only be received if you sign and do not revoke the Waiver and Release Agreement

The news set off a explosion of protests, including this from Councilman Tim Leigh:

"McEvoy has to go so does the Board of Trustees."

City Council ceded its control of the MHS operations to the MHS Board in August 2010 by memo. [By the way, that Council included President Hente and Pro-Tem Martin.] With that action, “as long as the MHS Board operates within its annual budget” Council exercises no control over that board. The critical language is “as long as MHS acts within its budget”. McEvoy’s newly announced Exit Bonus was not part of the annual appropriation budget approved by City Council. Therefore, I’m not sure the MHS Board of Trustees can offer an Exit Bonus to McEvoy legally. And, by the way, this is not severance (it’s an “Exit Bonus” because McEvoy wasn’t fired and didn’t quit). He was settled.

I have received dozens of emails and phone calls regarding the Exit Bonus. Here are a couple of quotes from employees.

“I am very upset that none of the Memorial Employees including myself (with 17 years of service and outstanding performance evaluations) will receive a pay increase this year and yet he gets a cool million – not quite fair. I am also frustrated because all this time he has talked about “sticking it out” and not leaving; “we are a team” and there he goes.”

. . . “I’ve never seen moral so bad”. . . McEvoy got a pay raise last month over $100,000 and now is leaving plus his freaking out the door bonus. . . . He has his retirement in the bank while the rest of us assholes loose ours.”

Months ago, I asked for McEvoy and his senior leaders to be placed on administrative leave and called for an investigation into some of the real estate dealings at the hospital. Those statements caused the council President to ask for my censure at a minimum, while he contemplated my recall and I’m sure I’ll be taken out to the wood-shed again for pointing out the obvious. This is an egregious fleecing of the citizens and everyone should be outraged.

• Nancy Johnson: Cheap by comparison

After the sudden resignation of Nancy Johnson earlier this year, three major functions were left without a leader inside the Colorado Springs city government.

But that's changing. Planning has an interim director, public works has a new director, and today, the city announced that Mayor Steve Bach has appointed a parks director pending City Council approval.

That's right, three people have replaced Johnson, who served as deputy chief of staff, and head of parks, planning and public works — all for the single salary of $147,657 a year.

Helen Migchelbrink, the newly appointed director of public works, makes $125,000 a year. Kyle Campbell, interim director of planning, makes an astonishing $175 an hour, or $364,000 a year if he works full time. Karen Palus, the candidate for director of parks, will make $128,000 a year assuming she is confirmed.

That's a total of $617,000, or more than four times what Johnson was paid for the same duties. Even if Campbell only works 20 hours a week, the total still comes to a whopping $435,000.

Mayor announces Director of Parks, Recreation and Cultural Services

Mayor Steve Bach announced this morning the appointment of a new Director of Parks, Recreation and Cultural Services, pending confirmation by City Council on Tuesday, April 24. After a comprehensive two-month recruitment and interview process with over 120 nationwide applicants, Karen Palus was selected by the Mayor and will begin her position with the City of Colorado Springs on Monday, June 18, 2012. Ms. Palus will earn a salary of $128,000 per year.

“Karen's extensive experience in park and recreation, as well as her leadership at the local, state and national levels will be a great asset to Colorado Springs.” said Mayor Bach.

Karen brings over 20 years of parks and recreational experience with both city and county government. Most recently she served as the Director of Parks and Recreation for the City of Tampa where she worked for seven years. During that time, Karen successfully attained National Accreditation by the Commission of Accreditation (CAPRA) for the City of Tampa's Parks and Recreation Department. Ms. Palus developed a park in the downtown core of the City of Tampa, after which time the park received numerous awards and was named one of the top ten new parks in the country for 2011. She was the recipient of the Fellow Award, Achievement Award, Outstanding Service Award and Agency Excellence Award from the Florida Recreation and Park Association.

Ms. Palus began her career in Recreation for Brevard County Government in Florida. She also worked in recreation for Martin County and Orange County. Karen has a Bachelor's Degree in Education and a Masters in Public Administration. She is a Certified Parks and Recreation Professional as well as a Certified Youth Sports Administrator. She served as the Florida Recreation and Park Association President in 2004 and has been on their board of directors since 1997. She currently serves as the Head Faculty and Chairwoman for the Joe Abrahams Leadership Academy and is a trustee of the Florida Recreation and Park Association Foundation.

A Pueblo County judge has reversed a finding by a state agency about water quality certification under the Clean Water Act for the Southern Delivery System, sending the matter back to the state for further consideration.

The decision is a blow to Colorado Springs Utilities' SDS pipeline project, now under construction, that will bring water here from Pueblo Reservoir.

Utilities' spokeswoman Janet Rummel explains in an e-mail to the Indy:

The Colorado Department of Public Health and Environment's (CDPHE) Water Quality Control Division (Division) issued a 401 water quality certification under the Clean Water Act for the SDS project in April 2010, certifying that SDS would comply with all applicable state water quality requirements. The Rocky Mountain Environmental Labor Coalition (RMELC) and Pueblo County District Attorney, Bill Thiebaut, then appealed the CDPHE 401 certification for SDS.

Following extensive review, including testimony from experts at a hearing in December 2010, the Colorado Water Quality Control Commission voted unanimously in January 2011 to confirm the SDS 401 Certification issued by the Water Quality Control Division.

Today, we received Pueblo County Judge Reyes’ ruling regarding the RMELC and District Attorney Thiebaut’s request for a judicial review of the Commission’s affirmation of the Division’s certification. The judge reversed the Commission’s ruling and sent the case back to the Division to revise the 401 Certification.

We are disappointed that the Court disregarded several years of studies and evaluation by federal and state environmental agencies and the extensive mitigation already required of the project.

We are currently evaluating our appeal rights and coordinating with the appropriate state and federal agencies.

Construction of the SDS project is proceeding — providing hundreds of regional jobs and infusing tens of millions of dollars in the southern Colorado economy — while we work to resolve this issue in the courts.

In an editorial last May, the Pueblo Chieftain, a longstanding opponent of SDS, outlined Thiebaut's argument like this:

Mr. Thiebaut claims their actions to approve a certificate for SDS were arbitrary, capricious and contrary to law. He’s asking the court to reverse the decisions by the division and commission and to declare they exceeded their jurisdiction or abused discretion in issuing the certificate.

Mr. Thiebaut notes in his appeal — correctly — that SDS will adversely impact the water quality and water flows in the Arkansas River and the Fountain and Wild Horse creeks in Pueblo County.

The idea that Colorado Springs can suck huge amounts of water out of Lake Pueblo, pump it north, then send the return flows back to the Arkansas without adverse effects in Pueblo County is ridiculous. Fountain Creek, which would bear most of the return flows from El Paso County, already is a waterway overstressed with excess sedimentation and pollution by growth in Colorado Springs, which has drastically increased its domestic and stormwater returns.

Rummel tells us the court's ruling doesn't have an immediate impact on the pipeline project. It's unclear how long it will take the state to revisit the issue.