Frequently Asked Questions

Q:  How large will the reservoir be?

A:  The size of the first construction phase of Dry Gulch Reservoir has not been determined.  This decision will be made around 2016 and will be based on growth, water demand and financial projections at that time.  At a minimum it will have a storage capacity of 12,500 acre-feet.  At a maximum it will hold 35,000 AF, which is the maximum size allowable by the site topography.

The table below is helpful when visualizing size.

Q:      If the reservoir size has not yet been determined, why has 35,000 acre-feet been used as the basis for cost projections and the Water Resource Fee component of the Capital Investment Fee?  It sounds like we’re paying on a foregone conclusion.

A:   It is the chicken or egg conundrum:

In the field of civil engineering, it is industry standard to design a road, bridge, building or reservoir for its maximum lifespan or usefulness.  A reservoir typically has a useful lifespan of at least 100 years, as illustrated by numerous reservoirs existing in Colorado and in continuous use for the past 75-100+ years.  In the case of the Dry Gulch Project, the site will accommodate up to 35,000 acre-feet of water storage, therefore, the project was initially designed for the purposes of estimating costs to that maximum capacity or usefulness.  It was necessary to do this initial design and cost estimating in order to begin to collect revenues to finance the project.  These revenues have ranged from the Water Resource Fee, to grants, to a low interest state-supported loan, and all are currently paying for the private land necessary for any size of reservoir up to 35,000 acre-feet.  If revenues come in less than projected, it may not be possible to finance the full 35,000 acre-foot size until farther in the future.

Which comes first:  the size/cost estimate or revenue collection (without any basis) that indicates what the size/cost estimate should be?

Q:  Why are 800 acres of private land being purchased for, at most, a 590-acre reservoir?

A:  Water surface acres and elevation, as shown on the Dry Gulch topographic map , are not indicative of the amount of property needed.  First, 590 acres is not the surface acreage at the crest of the dam.  The water level at the crest of the dam creates the need for extra property as a flood surcharge “zone”, into which it is undesirable for permanent structures to encroach.  Therefore, it is important to secure this property around the perimeter of the reservoir.  Second, additional property is necessary to accommodate the facilities associated with the reservoir, such as the dam itself, the water treatment plant, pump station and pipelines.  Much of this additional property was included in the private land already acquired.

Q:  How are future water demands projected?  How do you know we will need a large reservoir?  After all, we are in an economic recession that might last years.

A:    When calculating future water demands, the only real basis is to look backwards several years or decades and assume the average trend, which is an average of economic highs and lows, will continue into the future.  We know that our existing storage will be adequate for a few more years, or even more if indeed a recession is prolonged and growth is limited.  This is a good thing; it buys us time to save money and secure necessary land and permits because at some time in the future, it is certain that we will need more water storage than is available today.

Q:  How much will this project cost?

A:  MWH Americas, Inc. and Briliam Engineering are currently updating project cost estimates.  These should be available in late fall 2008. 

Q:  Why do the numbers keep changing?

A:  Over the next twenty years (the minimum planning horizon for this type of project), project costs will likely fluctuate for a variety of possible reasons:  inflation, increased regulations, legal actions and changes in project scope due to changes in the economy and community demographics.  The only way to make financial considerations for the unknown is to consider the known:  what have been the overall trends in our community for a period of prior years?  These growth trends are used as the bases for project size and cost projections, and then the projections are adjusted as future unknowns become past knowns.

Q:  Why did PAWSD proceed with this project and purchased property even though the voters voted against it?

A:    A San Juan Water Conservancy District 2004 ballot issue asked voters to approve an increase in property taxes collected by the District, paid by all property owners within the District, in order to purchase property for a reservoir.   It was voted down.  Many reasons for the issue rejection have been suggested:  not enough information was disseminated, the voters thought growth and not existing customers should pay, or the voters thought that if there is a limit to water, growth would stop.  Regardless of the reason for the 2004 ballot issue outcome, the project remains necessary to ensure adequate water supply for the community's future needs.

Aside from obtaining grants, raising taxes is the only mechanism available to the SJWCD to increase its revenue stream. Thus, other funding mechanisms by teaming with PAWSD and the Town of Pagosa Springs were considered and ultimately adopted in order to secure the reservoir property before it became unavailable. 

Q:  What is the difference between PAWSD and the San Juan Water Conservancy District?

A:   Both SJWCD and PAWSD are quasi-municipal bodies authorized by the State and approved by the voters. The SJWCD’s primary purpose is the preservation of the various water rights owned by individuals and entities within its District boundaries, and to ensure that there are adequate water supplies to support the current and future growth of the community.  Water storage has been a main concern of the SJWCD since its inception in 1987, and it has been steadily working towards the acquisition of land and obtaining the necessary permits and water rights for a raw water storage reservoir during that time.

PAWSD is tasked with providing water service to the Town and much of the surrounding unincorporated area such as Loma Linda, Timber Ridge and Pagosa Lakes.  PAWSD also provides wastewater service to areas primarily west of Piedra Road.  Water supply is a crucial issue for both Districts to meet the demands of the rapidly growing community as well as providing adequate water storage for protection against future droughts.   Due to the magnitude of the reservoir project, including the importance of such a project to both the current and future economic well being of our community, both the SJWCD and PAWSD have been working and will continue to work jointly towards completion of the Dry Gulch Reservoir project. 

Q:  Aren’t there less expensive reservoir sites, such as Hidden Valley or some place in the National Forest?

A:   In 1989, the San Juan Water Conservancy District studied 13 different sites that had the topographic potential for a reservoir.  The Hidden Valley and Dry Gulch sites were found to be the most suitable.  Click here for this study.

After commissioning the 1989 study and authorizing subsequent geotechnical work on the most suitable reservoir sites, Hidden Valley was identified by the San Juan Water Conservancy District Board in 1991 as the optimal site.  Purchase of the site was pursued for $1000 per acre.  During this time, however, a developer purchased the property for private use.  An agreement with the developer would have allowed the Districts to use the property for a 3,000 acre-foot reservoir if the Districts built the dam, restricted drawing down the water, limited access to only the owners in the development and required to PAWSD to relocate an easement and water rights on the San Juan River.  In return, the developer would have had to obtain adequate domestic (as opposed to existing agricultural) water rights.  The developer was unable to secure these.  Because sufficient water rights were questionable and restrictions on use of the reservoir would have been imposed, the Boards of both Districts chose to pursue the costlier, but in the end more suitable, Dry Gulch site. Ultimately, the Hidden Valley reservoir size would have been insufficient for long-term future water security.  The Dry Gulch is now the only remaining location that can accommodate sufficient water capacity and has proximity to our main water supply lines and population centers.

The U.S. Forest Service has substantial legal and environmental regulations on the use of public lands, and complying with such regulations has significant cost.  Locating a reservoir project wholly on U.S. Forest Service lands would add a very high cost for permitting considerations.  Only a portion of the Dry Gulch site will be on public lands.  PAWSD and SJWCD are working with the Pagosa Ranger District to acquire a Forest Service Special Use permit or land exchange for this portion of the Dry Gulch site.  Acquiring the permits or effecting a land exchange on a portion of the project property should be less costly than for a project located entirely on U.S. Forest Service lands.

Q:  Who will benefit from the Dry Gulch project?

A:    The community as a whole will benefit from this project.  The project is necessitated by growth in water demand that is projected to occur into the future as a result of our community’s economic growth and vitality.  We live in a beautiful place and people will continue to want to come here.  The PAWSD and SJWCD Boards have determined the necessity to accommodate them.

Specific beneficiaries include current and future residents and businesses within the PAWSD service area, those who wish to be included in the service area but are not currently, those who use the fill stations and those who may not have dependable wells.  The agricultural community will benefit because no agricultural land needs to be taken out of production to develop this water supply.  The Forest Service and other wildfire fighting agencies will also benefit by having a dependable water source.

PAWSD recognizes that it is not in the recreation business.  However, as a public organization with responsibilities to the general public, the PAWSD Board believes that water is a public resource and as such, access to a reservoir should be public.  Although this is not its priority or mandate, PAWSD will cooperate with appropriate entities if they wish to investigate potential recreational opportunities.

Q:  Aren’t some of the people pushing this project going to benefit by having waterfront property?

A:  SJWCD Board members recognized the need and identified possible sites for raw water storage 20 years ago.  The SJWCD and PAWSD Board members who have pursued the Dry Gulch Project since that time do not have any personal financial interest in the project’s completion; at maximum capacity the reservoir would be primarily bounded by U.S. Forest Service lands and PAWSD and SJWCD lands.  In addition, it will be at least 20 years before any entity holds lake front property and, because the size of the reservoir is yet to be determined, there is no way to predict where the “waterfront” would exactly be located.

Q:  Won’t the San Juan River be depleted?  What about the fish or boating?

A:  The reservoir should have little or no impact on wildlife, the quality of fisheries or rafting/kayaking.  Unlike many reservoirs, the dam will not be across the river itself; water will be diverted from the San Juan River and pumped into the reservoir.  The initial diversion will occur during periods of high river flow over the course of two or three years, and only when the stream flow in the San Juan River exceeds the instream flow water rights established by the Colorado Water Conservation Board ("CWCB") to protect the fishery and natural environment.  The reservoir will be filled and refilled as the District water rights, CWCB instream flow water rights, rain, snowmelt and dam safety allow.  Thus, the capacity of the reservoir has little bearing on the amount of water diverted from the river.