What’s at Stake for Ratepayers

PAWSD at a Crossroads

PAWSD is hemorrhaging 40% of its treated water through aging pipes while ratepayers face a $64+ million infrastructure bill—and the district just lost its general manager, chief engineer, project manager, AND finance director all at once.

Why Ratepayers Should Care

• Problem: PAWSD faces a perfect storm of leadership vacuum and infrastructure crisis, with critical decisions on $64+ million in upgrades being made during a management transition
• Stakes: Ratepayers could see dramatic rate increases if the new leadership mishandles major projects like the $44M Snowball plant and sewer system upgrades
• Solutions: The new general manager must immediately tackle water loss, complete required projects, address rate inequities, and rebuild the management team

The System in 90 seconds

PAWSD Operates a Complex Dual-District System:

• District 1 (Downtown): Pays minimal sewer rates ($3.20/month, according to a board member)
• 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.

The Numbers

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 possibe solar substation income

Possible Solutions

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

Counter-Arguments & Rebuttal

• “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

What “Good” Looks Like in 5 Years

• 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

Call To Action

1. Attend the board meeting – 10 a.m. Monday at PAWSD offices during General Manager candidate review
2. 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 Pogasa Springs Medical Center board packets for examples.

Further Reading

• PAWSD Board Meeting Schedule
• Best Practices to Control Water Loss
• PAWSD Torpedoes Joint Agency Affordable Housing Plan

Carl Young is a Project Management Professional (PMP), Scrum master, and business analyst.