Feds to provide nearly $1M in relief to Gypsum as town searches for ways to reduce taxpayer burden on $85M sewer plant

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The town of Gypsum has been hard at work looking for ways to reduce the taxpayer burden on the most daunting of all the projects it must undertake in the coming years: an $85 million wastewater treatment plant upgrade that’s been ordered by the state.
Gypsum’s current wastewater treatment plant has been pushed to more than 80% capacity, which triggers a regulation saying the town must begin designing a new facility.
Council members were aghast in receiving a $120 million estimate from the project’s only bidder last year, and town staff ordered MWH, the contractor, and Dewberry, the engineer, to come up with a less-expensive option.
The firms were able to value engineer about $35 million off the cost while the town got to work on finding grants and other funding sources.
Some of those efforts have paid off in recent days. Last week, it was announced that the town was awarded $959,752 in the final FY2024 Federal Appropriations bill, spearheaded by the local congressional delegation including U.S. Sens. Michael Bennet and John Hickenlooper, along with Rep. Joe Neguse.

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Bennet said Gypsum’s wastewater plant upgrade is one of nearly 80 projects across 30 Colorado counties toward which the delegation has directed funds.
“Throughout this process, I’ve sat down with municipalities, nonprofits, and leaders across the state to hear directly about the challenges their communities face and how Washington can be a better partner,” Bennet said.
Town Manager Jeremy Rietmann said the funding will help reduce some of the costs that would otherwise fall on local ratepayers.
“This infrastructure is critical in safeguarding the health of our residents as well as our local rivers and streams,” Rietmann said.
The grant is one of several that the town is seeking. Gypsum is allocating $1.8 million from the American Rescue Plan Act toward the wastewater treatment plant project and has also applied for a $1 million grant from the Department of Local Affairs Energy Impact/Mineral Assistance Grant Program for capacity expansion of the primary sewer main that enters the plant.
“Currently, the Wastewater Treatment Plant project is in the final design and pricing phase, with plans to break ground late this summer,” the town confirmed in a press release issued Friday. “Anticipated to span three years, the project will undoubtedly impact the Gypsum community, with the Eagle River Estates neighborhood experiencing the bulk of the construction activity. During the construction phase, Riverview and Porphyry Roads will experience increased construction traffic. Additionally, the Eagle River Estates Park and the basketball court will be closed during construction.”
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The new plant will require, according to state regulations, a 2,550 square-foot headworks building to house new mechanical screens and grit removal, along with a secondary process capable of treating wastewater to meet the effluent requirements.
That secondary process, known as a “Johannesburg process,” will require four secondary process basins with five zones each (sludge denitrifying, anaerobic, anoxic, swing and aerobic); three secondary clarifiers and a 4,600 square-foot secondary process building.
The plant will also require a 2,250 square-foot ultraviolet disinfection building and a 1,500-square-foot truck loading area.
“We understand that the temporary closure of the Eagle River Estates Park will disappoint some residents, but it’s necessary to facilitate construction staging and vehicle access and ensure a safe construction site,” Rietmann said. “The park will be restored and opened to the public when the project is completed.”
The town plans to undertake ongoing communication efforts regarding the project’s progress and potential impacts to keep residents informed, particularly those in the immediate vicinity of the wastewater plant.
To kick things off, the town is hosting a 2024 Construction Project Open House on April 4, 2024, from 6-8 p.m. in the Gypsum Town Council chambers, providing residents with detailed information on all major construction projects for the season, including the Wastewater Treatment Plant Project.
For those unable to make the event in person, the presentation and Q&A portions of the event will be live-streamed on the town’s Public Meetings & Notices page. Subsequently, the town plans to hold another meeting specific to the Wastewater Treatment Plant Project for Eagle River Estates residents, with the date to be announced, pending final construction scheduling.
Other significant projects slated for 2024 in Gypsum include:
- U.S. Highway 6 paving
- Interstate 70 north ramp roundabout
- Red Hill road work
- Cottonwood Pass road work
- Eagle Street sewer line replacement
- Various Town Park equipment replacements, landscaping updates, and irrigation modifications
- Community garden
- Water-wise demonstration garden
There is also design work planned for a Valley Road/Highway 6 roundabout and lane expansion on Highway 6, from Valley Road north to the I-70 on and off ramps.