By James Robinson
Staff Writer

As the San Juan Water Conservancy District works to finalize a multi-million dollar land purchase that will later become home for the proposed Dry Gulch Reservoir, the Archuleta County Board of County Commissioners has issued a request for proposals asking for an independent review of a Harris Water Engineering Inc. report that, in part, justifies the 35,000 acre-foot reservoir and addresses the area’s future water needs.

Harris Water Engineering is the water district’s engineering consultant.

The move to authorize the request for proposals came during a March 20, board of county commissioners meeting, and the commissioners’ push for the independent review stems from three points of concern: Is a 35,000 acre-foot reservoir a priority? Secondly, considering that water will have to be pumped up out of the San Juan River and to the reservoir site, is Dry Gulch the most cost-effective location and is the engineering that supports the site’s viability sound? And third, should the county impose impact fees on new development, per a SJWCD and Pagosa Area Water and Sanitation District request, in order to help pay for a water storage project as large as Dry Gulch Reservoir?

Although the SJWCD is spearheading the land purchase, Dry Gulch is a joint SJWCD-PAWSD project.

Archuleta County Administrator Bob Campbell said the county isn’t necessarily opposed to levying impact fees, but he questions forcing residents to pay for water storage needs 50 to 100 years in the future when the county faces other, arguably more pressing financial issues such as roads, infrastructure, law enforcement and facilities.

“Studies say we need 12,000 acre-feet 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,” Campbell said.

The Dry Gulch Reservoir site is located about two miles northeast of Pagosa Springs and south of U.S. 160, near the Weber Sand & Gravel facility. As currently designed, and at full buildout, the reservoir could accommodate 35,300 acre-feet of water storage, including the district’s existing right to 6,300 acre feet. Included in the plans are a dam 3,000 feet long and 160 feet high and a lift station required to move water from the river to the reservoir. Upon completion, the reservoir’s total surface area at high water line will be roughly 621 acres. Total cost estimates have approached $140 million.

San Juan Water Conservation District Board President Fred Schmidt said although the Dry Gulch site could ultimately accommodate a 35,300 acre-foot reservoir, land acquisition doesn’t automatically guarantee construction of a reservoir that size. Schmidt said acquisition of the Dry Gulch site allows room to meet water storage goals for 2040 with space for future expansion to the 35,000 acre size depending on funding and need. Schmidt added that the project will most likely be built in phases.

According to the SJWCD Web site, PAWSD currently has 2,900 acre feet of water storage in its system, and will have 4,000 acre-feet with the completion of the Stevens Reservoir expansion due sometime next summer.

Harris studies indicate that by 2043, the district will require a total of 12,000 acre-feet. Thus, the district has a storage shortfall of 8,000 acre feet. According to district representatives, the first phase could result in an impoundment of 12,000 acre feet, while later Dry Gulch expansion could be undertaken as funding and needs allow.

“The size of the reservoir in 20 years will be decided on need and economic ability,” Schmidt said.

Schmidt said grant funding will play a major role in the success of the project, and that the district recently received tentative approval on a $1 million grant, plus access to a low interest, state-sponsored loan program that could save the district $4 to $5 million in interest over the next 20 to 25 years.

Schmidt said the grant award for land acquisition was virtually unprecedented and represented a tectonic philosophical shift in the state’s approach to solving long term water needs.

“To me, this (the grant award) is very unique and shows that after their staff has gone through all our studies, they see the need and importance of such a long term project for our economic well being,” Schmidt said.

And with escalating land prices, and development gobbling up suitable sites, Schmidt said the risks of not having storage capacity in the future are far too great.

“If we want to buy the land can we afford it? And second, will it even be available?” Schmidt said.

And once property not purchased now becomes lakefront property, per-acre prices could skyrocket, putting future purchases well out of the district’s reach.

Both PAWSD manager Carrie Weiss and Schmidt said neither they, nor their respective board members, have a personal business interest in property near the proposed reservoir. And Schmidt added that he does not know anyone with an interest in property near the Dry Gulch site.

Schmidt explained that the district began the project 14 years ago with 13 possible reservoir sites. After two years and site analyses, the district whittled those options down three. According to Schmidt, a developer beat the district to the punch on their first choice, and purchased the property before the district could do so. The property went for $800 an acre. The third option was not cost effective due to distance from PAWSD infrastructure, thus Dry Gulch came out on top due to its proximity to the San Juan River, town and existing water lines.

According to Schmidt, the Dry Gulch property will sell for more than $10,000 an acre, and that, according to Schmidt, is evidence that waiting any longer could make water storage cost prohibitive.

“Is it prudent to buy the land we need now? Yes it is,” Schmidt said.

Schmidt said negotiations on the sale of the Dry Gulch property are complete, and he anticipates the signing of the sales contract to occur in mid-April. Until the contract is finalized, Schmidt said he was unwilling to disclose the sales amount.

When asked about the appraised value, Schmidt said an updated appraisal was due out in 45 to 60 days.

Schmidt and Weiss said both districts have an open-door policy and have been willing to meet with the county to answer questions and to address their concerns. Weiss and Schmidt said that during the last two years, the county has not taken that opportunity, and both see the request for proposals as an expensive duplication of work already done.

Archuleta County Commissioner Bob Moomaw will soon take a seat on the conservancy district board, a move that Schmidt and Weiss supported.

Schmidt said he hopes the conservancy district board and the BoCC can sit down to discuss impact fees, site locations, engineering and future water needs before the county spends money on an independent review.

And Weiss added, “We welcome whatever reviews they want to do, but we have information here. I believe that whatever studies they go through will just reaffirm what our consultants have already established.”

According to Campbell, in addition to reviewing the Harris Water Engineering Inc. report, the independent engineering firm will also review PAWSD’s operational policies, and its rate and fee structure to determine if they are the best practices and in the best interest of the community.

Campbell said PAWSD’s policies and fee structure are of particular interest to the county as it moves forward with building new facilities. Campbell said $700,000 of the cost of the $22 million courthouse campus project will result from PAWSD related fees.

Staff writer Chuck McGuire contributed to this story.

james@pagosasun.com