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S~TATEOF COLORADO .;. Colorado Water Conservation Board Department of Natural Resources 721 State Centennial Building 1313 Shennan Street Denver, Colorado 80203 Phone (303) 866-3441 FAX (303) 866-4474 . Roy Romer Governor MEMORANDUM James S. Lochhead Executive Director, DNR Daries C. We, P .E. Director, CWCB TO: The Pagosa Area Water and Sanitation District File FROM: Bill Green ~6"" DATE: March 19, 1996 SUBJECT: Status of the PAWSD Water Supply Project The purposes of this memorandum are to review, to the best of my knowledge, the intentions of the Pagosa Area Water and Sanitation District (P A WSD) with regard to a raw water storage project and to assess what may be needed before we enter into a contract with the PAWSD. Background Due to substantial population growth in the service area of the P A WSD, the District is intending to increase its raw water storage capabilities by the construction of a new reservoir or the expansion of an existing reservoir. In 1992, the PAWSD and the San Juan Water Conservancy District proposed to build a new reservoir at the Hidden Valley site on McCabe Creek 4.5 miles NW of Pagosa Springs and to enlarge the District's existing Stevens Lake Reservoir on Dutton Creek about 4 miles NW of Pagosa Springs. The Hidden Valley project was rejected by the P A WSD after the collapse of negotiations with private developers over the property at the reservoir site. The P A WSD then started investigations on a new site on Martinez Creek in the vicinity of Stevens Lake. Based on telephone conversations with Jack DeLange of the District, it is my understanding that the Martinez Creek site may be very expensive to develop and that the PAWSD may again consider enlarging the Stevens Lake Reservoir. To date,,,we have little or no documentation with respect to most of the preceding. Stevens Lake and Hidden V alley Reservoirs In a memo for the November 1992 Board meeting, the CWCB staff reviewed the basic concepts of the Stevens Lake and Hidden Valley projects with a recommendation, at that time, to lend a total of $6,982,000 from the Construction Fund for the two projects. The memo states that "the Districts have completed feasibility level studies to enlarge the Dam at Stevens Lake on Dutton Creek. "