Whetstone utility issues throw more curveballs at project

County frustrated but optimistic

By Mark Reaman

Any large construction project is expected to experience some hiccups, and the Whetstone community housing project is certainly dealing with more than its share of issues at the moment. As of this week it is not certain whether work will continue on the project this winter as anticipated, and if that happens what it could mean for the timing of its completion and ultimately its timeline to begin renting units which was projected to be 2027.

Most of the current issues and uncertainty appear to have stemmed from the utility extension providing water and sewer services from the town of Crested Butte to the development site located about two miles south of town. Expectations were to have water to the site by the end of this past summer but despite unusually warm weather and an extended construction season, that did not happen. Construction in town rights-of-way has halted for the season with the appearance of winter weather.

Montrose based subcontractor, Mountain Concrete Group, was hired by the primary contractor, Moss Construction, to put in the utilities but they did not complete the job. On top of that, some of their workers deliberately damaged a section of town-owned wetlands near the Crested Butte Community School. As a result, the company has since been taken off the job and been replaced by local company Spallone Construction.

Gunnison County manager Matthew Birnie admitted that the water main connection will not be completed this season, and as a result work might have to halt at the site for the winter at the insistence of the local fire district. But the hope is that a compromise can be achieved to keep workers safe and construction continuing through the ski season.

“As a result of not getting the water utility to the site, the Crested Butte Fire Protections District (CBFPD) has notified us that if a sustainable water source is not provided to the site, work must stop,” Birnie stated in an email. “The fire marshall had previously approved on-site water storage as a backup plan so work could continue.

“However, the new interim Fire Marshall is now rejecting that backup plan. We are assessing options and hope to work with the district on a reasonable resolution in the coming days,” said Birnie.

CBFPD chief executive officer Sean Caffrey told the Crested Butte News this week that the district has communicated to the Whetstone team that the International Fire Code requires a suitable water supply for fire protection be in place before combustible materials are brought on site.

“A temporary connection to the Riverland water system was in place during the early phases of construction and the target date for a more permanent water supply was September 15,” Caffrey said. “A sufficient water supply for a project of that size would be multiple fire hydrants connected to a water system. Clearly, significant construction has occurred on the site with combustible materials causing us great concern. We have articulated to the project team that we require a suitable water supply be in place by the end of November to allow additional construction.”

Caffrey said there are currently a handful of water trailers on the Whetstone site and while those trailers are helpful to mitigate the hazard, “they are insufficient to manage the potential fire load of what is already built. As such, a permanent water supply remains the requirement and the priority from the Fire District’s perspective.”

Unexpected challenges are common in large construction projects like Whetstone, Birnie said. “Which is why our development agreement with Servitas includes significant built-in contingencies for both schedule and cost. We remain focused on the outcome the County contracted with Servitas to deliver: new housing units ready for occupancy in 2027,” he emphasized. “Servitas has assured us they remain on track to meet those deadlines, and our contract protects the County from any financial risk if they do not, including full responsibility for delays and any associated missed rental payments due to not meeting the schedule.”

On a different but related topic, there was some concern that the original subcontractor did more damage to land around the Crested Butte Community School campus than expected, including damaging a necessary stormwater retention pond. Birnie rejected that concern. “That area was always planned for excavation and restoration,” he explained. “The retention pond has been returned to its proper depth and shape for winter and should function better than before as it had silted-in significantly. (Assistant county manager) John Cattles has been in ongoing coordination with the school’s facilities manager, Paul Morgan. The road adjacent to the Town wetlands has also been rebuilt to provide access for Town snow storage and to the Deli trail.”

Birnie said plans are in place to complete the water utility connection work next year and ensure it is up to the County’s standards of quality. Wetlands restoration work will also take place next construction season.

“We are disappointed, of course, in the schedule miss for the water connection and the fire district’s change in position, but the bottom line is that this project remains on solid footing, and the County is protected, and the units will be delivered,” emphasized Birnie.

County commissioner chair Laura Puckett Daniels agreed. “We’re frustrated that this is the situation we’re in. It is not where we hoped to be, and, all we can do at this point is move forward,” she said. “We’re focused on finding solutions and we are confident that with our strong partners and strong contracts, it will work out. There are likely more hurdles to come, but we still believe we can get working people living in Whetstone Village by the end of 2027.”

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