PAWSD’s Critical Challenges

Water Loss, Rate Inequity, and Leadership Gaps

District 1 (Downtown): ~~Pays minimal sewer rates ($3.20/month, according to a board member)~~ The number isn’t published, but back of the envelope arithmetic indicats the number is around $17.
District 2 (Uptown): Treats sewage for both districts and individual ratepayers are charged $47/month for sewer treatment for both districts
Current Projects: $44M Snowball water treatment plant (incomplete), sewer plant upgrades ($12M estimated)
Water Sources: Water from Stevens can be moved to the main PAWSD water source, Hatcher Lake, but only by sending water downhill through the lake system and then pumping it uphill to Hatcher
Major Issue: 40% water loss through deteriorating distribution system
The Running Iron Ranch proposed reservoir site. PAWSD is suing the agency responsible for the reservoir, delaying revenue-generating proposals such as installing a solar-powered LPEA substation.

Pagosa Water Storage and Supply

Metric	Status	Cost Impact	Notes
Water Loss Rate	40%	High	No written monthly reporting showing changes over time and efforts to fix
Snowball Plant	$44M committed	Ongoing	Serves Downtown only when complete, Uptown and Downtown residents pay for it
Sewer Rate Gap	Uptown pays 15x more	$20M question	No written plan to address the gap
Management Vacancies	4 key positions	Critical	GM, engineer, PM, Finance Director need filling
Lawsuit over the Running Iron Ranch Proposed Reservoir	Active litigation	Revenue loss	Attorney fees, blocking possible solar substation income

Emergency Water Loss Program – Immediate infrastructure assessment and leak repair prioritization – Industry standard is <15% loss
Rate Equity Study – Independent analysis of fair cost allocation between districts
Project Reporting – Standard, written progress reports for Snowball plant construction
Regional Partnership – Joint operations with the town or cost sharing

“We can’t afford major repairs now…” → Actually, 40% water loss costs more long-term than fixing the system properly
“Rate equity can wait…” → $44/month difference ($528/year) between identical services is legally questionable
“Leadership gap is temporary…” → PAWSD should publish a timeline of when the vacancies will be filled so ratepayers know what to expect

Metric: Water loss below 15% industry standard
Metric: Rate equity achieved between districts
Governance: Monthly project reports and water loss data published
Infrastructure: Snowball plant operational and serving both districts
Infrastructure: Lakes Stevens and Hatcher directly connected
Financial: Detailed, timely financial information including budget vs. actual performance, net income, cash reserves, and upcoming major expenses

Attend the board meeting – 10 a.m. Monday at PAWSD offices during General Manager candidate review
Ask specific questions:
- How will the new GM address 40% water loss?
- What’s the timeline for rate equity between districts?
- When will written monthly financial, project, and operations reporting begin? See the Pagosa Springs Medical Center board packets for examples.