By Chuck McGuire
Staff Writer

Two months after submitting a million-dollar grant application to the Colorado Water Conservation Board, the San Juan Water Conservancy District Board of Directors received tentative approval Tuesday afternoon. Once fully funded, the money will go toward the purchase of land for a proposed Dry Gulch Reservoir outside of Pagosa Springs.

As a state agency, the CWCB serves to “conserve, develop, protect and manage Colorado’s water for present and future generations.” Through two different programs, it offers limited loans and/or non-reimbursable funding to various entities for water projects, programs or studies of statewide impact. The district appealed to the board for its grant in early January.

“This is a big first step in a long process,” said board president Fred Schmidt in light of the approval. “Building a reservoir takes time and a lot of money. If we’re going to meet future water needs in the community, we have to start now.”

As currently designed, the proposed Dry Gulch Reservoir will contain a total capacity of 35,300 acre-feet of water storage, including the district’s existing right to 6,300 acre-feet. The proposed site is about two miles northeast of town, and includes a dam approximately 3,000 feet long and 160 feet high. Upon completion, the reservoir’s total surface area at high water line (elevation, 7,400 feet) will be roughly 621 acres. Total cost estimates have approached $140 million.

While various district board members expressed elation over the grant approval, the CWCB has attached a few minor contingencies, not the least of which is a necessary reconciliation of differing water needs studies over the past 25 years.

Schmidt explained that changing demographics and unusual weather patterns, including the 2002 drought year, significantly altered flow averages and other conditions, lending an air of inconsistency between reports. He seemed confident, nonetheless, that district engineering consultant Steve Harris could appease CWCB concerns in short order.

When asked about the nature of other contingencies, Schmidt said the CWCB hasn’t spelled them out just yet, but said a formal grant letter should be forthcoming. He expects the letter will contain a few minor issues, such as need for a complete project legal description, but anticipates full grant funding by summer or early autumn.

Although Trout Unlimited has appealed the decision, District Court Judge Lyman granted the district and Pagosa Area Water and Sanitation District sufficient water rights to develop Dry Gulch last year. In the meantime, land purchase negotiations are ongoing with individual site owners, as both districts examine the possibility of a land exchange with the U.S. Forest Service for additional key holdings.

Even as the water districts jointly move forward in pursuit of Dry Gulch, Archuleta County officials appear skeptical of the project’s planned size.

According to the SJWCD Web site, PAWSD currently has 2,900 acre-feet of water storage in its system, and will have 4,000 AF, once the enlargement of Stevens Reservoir is finished, sometime next summer. Harris studies, meanwhile, indicate that by 2043, the district will require a total of 12,000 AF in its system. As mentioned, Dry Gulch will hold more than 35,000 AF at full build-out.

Both water districts have asked the town of Pagosa Springs and the county to impose impact fees on new development, in order to help pay for Dry Gulch. To date, however, the town has established such fees, while the county has not.

In recent weeks though, Archuleta County Commissioner Bob Moomaw has asked the SJWCD for all documents pertaining to the reservoir plan. In addition, the Board of County Commissioners will vote Tuesday, whether to employ an outside firm to review justification for Dry Gulch.

“This is one of those issues we need more information on before we continue,” Moomaw said at a Tuesday BoCC meeting.

In a recent phone interview, County Administrator Bob Campbell explained that the county isn’t necessarily opposed to impact fees, but faces funding issues on several fronts. He cited roads, infrastructure and law enforcement as other areas requiring immediate attention, and questioned the validity of forcing residents to pay for water needs 50 or 100 years down the road.

“Today, I’d rather drive a road without potholes, than worry about water needs in the year 2100,” Campbell said. “Studies say we’ll need 12,000 AF in 2040, but we’re not sure we should make today’s taxpayers pay for water development much beyond that. Besides, we feel there may be other smaller alternatives to look at.”

Meanwhile, Schmidt and others have suggested that Dry Gulch may never reach its projected size, and would certainly be built according to what the combined districts can afford.

“We may build it in phases, if necessary,” Schmidt said Wednesday. “We’re only going to build what we can afford. That’s why grants are important. If we can afford to build it all, we should, but we’re missing the boat by not imposing impact fees. Our goal is to have new development pay its way.”

District representatives have said reservoir construction might occur in two phases, with the first resulting in an impoundment that will hold 12,000 AF of water. The second phase would be an addition to the first, its size determined by later needs and, of course, available funding.

For now, both the SJWCD and PAWSD continue working toward bringing Dry Gulch closer to reality, as county officials toil over future water needs predictions and how best to fulfill them.

chuck@pagosasun.com