SUN photo/Karl Isberg
Nothin’ beats it: A hot day and a trip to the pool with your pals. Kids and staff members from the town’s Park Fun program enjoyed their time at The Spa pool last week. The program continues through July, involving participants in a wide variety of activities during the week.

Burdened with misdemeanor charges stemming from allegations she violated state statute while serving as one of the county’s chief financial managers, Archuleta County Treasurer Lois Baker resigned before Judge Jim Denvir in county court Wednesday.

During the proceedings, Baker tendered her written resignation in conjunction with a “no contest” plea to the misdemeanor charges, in addition to paying a $50 fine and court costs.

Although Baker’s resignation appeared similar to a district attorney deal, the treasurer’s attorney, Larry Holthus, said Baker had decided to resign before the offer was made.

According to court documents, Baker was charged with failure to keep funds separate per Colorado Revised Statute (C.R.S.) 30-10-710, and with transferring funds without Board of County Commissioner Approval, a violation of C.R.S. 30-10-707 — the alleged offenses occurring during 2006.

The charges and Baker’s resignation stem from an ongoing district attorney’s investigation into the individuals and financial management practices that may have contributed to the county’s financial meltdown in April 2007.

Both violations, according to statute, were misdemeanor offenses, and if Baker had been found guilty, she could have faced fines between $50 and $500, and the possibility of being removed from office.

According to Black’s Law Dictionary, no contest has a similar legal effect as pleading guilty; however, in a no contest plea, the defendant does not admit or deny the charges, although a fine or sentence may be imposed pursuant to the charges.

Holthus said Baker had the opportunity to request a jury trial, which would have forced the district attorney to prove beyond reasonable doubt Baker was guilty of the alleged offenses. Holthus said he wanted to go to a jury trial and believed his client had a strong case.

With none of the county commissioners, nor a representative from county administration present, Holthus likened the proceeding to a Greek tragedy, and said Baker had been an easy target and made a scapegoat for the county’s financial demise.

Others have called the pursuit of Baker a “political hack job.”

Archuleta County Clerk June Madrid lambasted members of the Board of County Commissioners for not attending Wednesday’s court proceedings and said her colleagues’ behavior was disrespectful. In fact, county administration scheduled a board meeting concurrent with Baker’s court appearance, and Madrid said that act demonstrated the commissioners’ disregard for Baker and that neither they nor their administrative staff had the courage to face Baker in court. Madrid said it was shameful to pursue only Baker, particularly when the record shows past and current boards, and the former treasurer and finance director, played roles in the county’s financial decline.

For example, court documents indicate the alleged violations occurred on or about Nov. 21, 2006, and the time frame begs questions regarding who was at the helm in the treasurer’s office when the alleged offenses occurred.

In February 2006, during the last year of former treasurer Traves Garrett’s term, Garrett was seriously injured in an auto accident while travelling in Oklahoma with her husband, Derall Garrett. Immediately following the accident, Baker, as Garrett’s deputy, took the helm while Garrett recovered, although treasurer’s staff have argued that Garrett managed the office’s day-to-day affairs until Baker took office in January 2007, following the uncontested 2006 election.

Questionable fund transfer documentation dated August 2006 between former finance director Bob Burchett and Garrett may indicate Garrett was, in fact, in charge of the office; thus, questions remain why the district attorney hasn’t brought charges against Garrett and Burchett.

In addition, in the years immediately preceding the crisis, the Board of County Commissioners approved error-riddled and poorly drafted budget documents, failed to take corrective financial action after problems were identified in audit reports, obligated taxpayers to vast sums in county matching funds for airport grants and other projects, and, according to members of the Citizen’s Financial Advisory Task Force, chronically overspent.

The county’s 2003 audit report provided the first foreshadowing that things could go awry, and the document cautions that many county accounts had not been reconciled prior to the commencement of the audit. In addition, because the county did not submit the 2003 audit by deadline, the state froze Archuleta County’s property tax revenue for two months.

The 2003 Board of County Commissioners consisted of Gene Crabtree, Bill Downey and Alden Ecker. Crabtree is seeking reelection in 2008 and has secured a slot on the August primary ballot.

Although the 2003 audit only hinted at what might come, the 2004, and particularly the 2005 and 2006 audits, fully illuminated the county’s poor financial management practices.

The three audits, again all submitted after deadline, which resulted in property tax freezes, detailed chronic financial mismanagement — failure to reconcile general ledger accounts on a timely basis, missing documentation, failure to rectify negative fund balances, poor or nonexistent internal controls, poorly documented interfund transfers and other financial practices described as gross deviations from generally accepted accounting principles.

In 2005 the Board of County Commissioners consisted of Mamie Lynch, Robin Schiro and Ronnie Zaday. In 2006, Lynch resigned. Schiro and Zaday served with John Egan.

Schiro is seeking reelection in 2008 and has also secured a slot on the August primary ballot.

While Crabtree asserts things were done effectively, efficiently and economically during his tenure as commissioner, Schiro argues her track record of abstentions and “nay” votes absolves her of blame in the county’s financial demise. Her abstentions and “nay” votes, however, are coupled with noted absences during key decision making dates during the crisis. As an example, on May 8, 2008, while Schiro’s fellow board members agonized over 22 forced layoffs and other cuts totaling $1.6 million, and heard the scathing, bombshell 2005 audit presentation detailing the deplorable state of county’s finances, Schiro was vacationing in Alaska. When questioned about that absence, Schiro said she had read the audit document.

While Baker’s resignation may provide closure for some on the board or in county administration, Madrid said Baker was made a scapegoat for the county’s financial crisis and she hopes the district attorney pursues charges against Burchett and Garrett.

With Baker’s resignation effective July 31, 2008, the board will begin the selection process for Baker’s replacement.

“We will advertise and interview and get the most qualified person available,” said Archuleta County Commissioner Bob Moomaw.

A civil suit filed in May against top brass in the county sheriff’s department began working its way through the courts Monday, and despite the plaintiff’s request for a continuance, Archuleta County Court Judge Jim Denvir denied the motion and scheduled trial for Sept. 15.

Monday’s proceedings were billed as a pre-trial conference and followed plaintiff Galen Erin’s filing of a suit against Archuleta County Sheriff Pete Gonzalez and Archuleta County Undersheriff John Weiss.

Erin is the chairperson of a committee intent on ousting Gonzalez with a recall election, and in the suit Erin alleges that Gonzalez and Weiss engaged in libel and defamation of character by communicating and publishing false statements intended to damage Erin’s personal and professional reputation and her reputation as a member of the sheriff’s recall committee. In addition, Erin alleges Gonzalez and Weiss are guilty of misdemeanor violations related to elections.

According to the suit, Erin alleges that Gonzalez’s comments — which appeared in a local online magazine article about the recall effort — have made her appear, “emotionally disturbed, professionally incompetent, intellectually dishonest, unethical and a quack.” The suit further states that neither Gonzalez or Weiss are “educated, trained, degreed or experienced in the mental health arena, nor do they possess any qualifications to psycho-analyze Plaintiff.”

Erin also alleges the sheriff’s comments quoted in the article were designed to impede the gathering of petition signatures for the recall effort, hence the allegations of misdemeanor violations related to elections.

Erin appeared in court without an attorney Monday, and court documents filed in May indicated Erin would represent herself. However, Erin has apparently reconsidered the strategy and sought the continuance to allow time to hire an attorney.

Denvir denied the request for a continuance in order to expeditiously move the case forward and he encouraged Erin to obtain an attorney and to file the required disclosure statement as soon as possible.

“I want to at least get this started,” Denvir said. “Your substantive rights will not be violated.”

During the proceedings it was revealed that, although the defendants’ attorney, Earl Rhodes, had submitted the disclosure statement by deadline, Erin had not, although she said she intended to do so. Denvir gave her 30 days for the task.

The disclosure statement is intended to give all parties, the judge, plaintiff and defendants, information regarding witnesses and what evidence might be introduced.

In addition, Denvir established a series of deadlines for Erin and Rhodes should they choose to file motions or pursue discovery.

Erin said Denvir’s timetable conflicted with her vacation plans and she needed about two weeks to find an attorney. Denvir reminded Erin that she was the individual who had brought the suit forward.

According to court documents, Rhodes describes Erin’s suit as “groundless and frivolous” and the defendants will seek an award of attorney’s fees.

With the Fourth of July falling on a Friday this year, and activities in town beginning today, Pagosa is gearing up for a four-day holiday filled with activities for everyone. Whether you’re looking for rodeo, rides, or river walks, there’s sure to be something to suit your holiday fun.

Today

The activities start today, with the carnival opening from 3-11:30 p.m. in the athletic field across from Town Park. The Red Ryder Roundup Rodeo will kick off at 6 p.m. this evening at the Western Heritage Arena. Tickets can be purchased at Goodman’s Department Store and at the gate. The Pagosa Springs Music Boosters will present the premiere of “Oliver,” Lionel Bart’s musical stage adaptation of Charles Dickens’ classic novel, at 7 p.m. at the high school auditorium. Tickets can be purchased at the Chamber of Commerce, www.brownpapertickets.com, or at the door.

Friday, July 4

The holiday will kick off officially with the annual parade through town at 10 a.m. This year’s theme is “Pagosa Springs: Exploring the Best of the West.” The parade will run on U.S. 160 from 8th Street to 2nd Street. The Park to Park Arts and Crafts Fair will also begin at 10 a.m. and run until 6 p.m. The arts and crafts fair will stretch along the Riverwalk between Town Park and Centennial Park. The carnival will open early, 10 a.m., and run until 11:30 p.m. The Red Ryder Roundup will begin at 2 p.m.

The Pagosa Piecemakers Quilt Show will begin July 4 at the Mamie Lynch Gymnasium at the corner of Lewis and 4th streets downtown. Visitors will be able to vote for their favorite quilt. Admission is $2 for adults and $1 for youth ages 10-18. The show will run through Sunday, July 6.

Later in the evening, gear up for the fireworks with a free musical concert at the high school athletic fields. “Brooks-I” Band, featuring Brooks Lindner, Bob Hemenger, Tone Madrid and Jason Doctor will kick things off at 6 p.m., and The Hot Strings will close out the entertainment at 7:30. Concessions from the Knights of Columbus will include hamburgers, hot dogs, brats, kettle corn, and snow cones.

Fireworks will begin at dark, approximately 9 p.m., at the high school athletic field, to end the night with a bang.

Saturday, July 5

The Arboles Fourth of July parade and barbecue will begin at 10 a.m. at the corner of Colo. 151 and CR 982 in Arboles. A barbecue will immediately follow the parade at the TARA Community Center.

The Park to Park Arts and Crafts Fair will be in business from 10 a.m. to 6 p.m. The Red Ryder Roundup will begin at 6 p.m. and the carnival will be open from 11 a.m. to 11:30 p.m.

A second performance of “Oliver” will take place at 7 p.m. in the high school auditorium.

Sunday, July 6

The Park to Park Arts and Crafts Fair will wrap up today, open from 10 a.m. to 6 p.m. The carnival will open from 11 a.m and run until dusk.

A special matinee performance of “Oliver” will take place at 2 p.m. in the Pagosa Springs High School auditorium.

Two recent accidents on U.S. 160 involving motorcycles resulted in one fatality after the driver veered off the road, while another driver was in critical condition following a collision with a deer.

The first accident occurred Sunday, June 22, at approximately 2:40 p.m. According to a report from the Colorado State patrol, Johnny P. Sanchez, 72, of Monte Vista, lost control of his 2003 Harley Davidson motorcycle while driving eastbound on U.S. 160 near milepost 133 in the Aspen Springs area.

Sanchez’ motorcycle veered off the right side of the road and travelled 442 feet, rolling and ejecting Sanchez. He was transported to Mercy Regional Medical Center in Durango, where he died from injuries sustained in the crash. The cause of the accident is still under investigation. Sanchez was not wearing a helmet.

The second accident occurred on Saturday, June 28, at approximately 11:20 a.m.

Mark Wirkus, 41, of Mendota Heights, Minn., was traveling westbound on U.S. 160 near milepost 166 on Wolf Creek Pass on his 2004 Harley Davidson motorcycle. Wirkus’ motorcycle collided with a deer in the roadway, and the motorcycle rolled and ejected Wirkus, who sustained serious injuries. He was transported to San Juan Regional Medical Center in Farmington, N.M., and was in critical condition Wednesday. Wirkus was not wearing a helmet.

SUN photo/Terri House
Joe S. Lobato, a one-year pancreatic cancer survivor, plants a kiss on his great-grandson Kyler Henderson’s cheek following the Survivor’s Lap at Relay for Life. The annual event was held Friday and Saturday at Golden Peaks Stadium.

SUN photo/Louis Sherman
2008 Red Ryder Roundup Queen Lashay Fredlund (right) and Princess Breann Decker will represent the rodeo throughout its 59th year and are preparing for upcoming Fourth of July rodeo performances and the annual parade. Performances of the 59th annual Red Ryder Roundup are set for July 3, 4 and 5.

An auditor’s report delivered to the Board of County Commissioners during Tuesday’s meeting provided further indication that fraud or other criminal activity may not have played a role in the county’s financial unraveling, although a district attorney’s investigation continues.

After analyzing a series of questionable wire transfers and vendor payments, Karla Willschau of the Alamosa-based auditing firm Wall, Smith, Bateman & Associates, Inc., said, “I think the bottom line is that the wire transfers look like good, valid wire transfers, and the vendor payments look good.”

Archuleta County commissioned Willschau’s firm to complete work initially begun by forensic auditors with Clifton Gunderson LLP.

Clifton Gunderson issued a forensic audit Jan. 21, 2008; however, key county staff and members of the board said the document left too many key questions unanswered, and thus, added insult to injury, after Clifton Gunderson missed a series of critical deadlines, and failed to provide information necessary to complete the 2006 government audit in a timely fashion.

With Clifton Gunderson and the county at loggerheads over scope of work, deliverables, and ultimately payment, the county turned to Wall, Smith, Bateman & Associates for help. Wall, Smith, Bateman & Associates conducted the county’s state mandated 2005 and 2006 government audits.

According to the agreement between Archuleta County and the firm, Willschau was to dig deeper into certain financial issues, as highlighted in the Clifton Gunderson report, but which Clifton Gunderson failed to fully explore. (Clifton Gunderson auditors said insufficient funding thwarted a complete examination of key documents, hard drive and other computer data, and a full analysis of certain transactions.) For example, the Clifton Gunderson report identified wire transfer activity and vendor payments “that warranted further investigation,” and Willschau picked up where Clifton Gunderson left off.

According to Willschau, she took a random sampling of 20 wire transfers over $100,000 from between June 1, 2004, and April 30, 2007, as identified on a Clifton Gunderson spreadsheet. Willschau said her task was to determine if documentation could support the validity of the transfers.

Willschau said the transfers were well documented and added, “I felt comfortable, that those transactions were valid wire transfers.”

In analyzing vendor payments, Wilschau said she took samples from areas Clifton Gunderson identified as “high risk.”

Although Wilschau said invoices were missing in some cases, she noted no major problems and prior audits noted no anomalies.

“This brings closure to the forensic audit, and, based on information from Clifton Gunderson and Wall, Smith and Bateman, there’s no information that gives us reason to believe there was fraudulent activity or inappropriate expenditures,” Archuleta County Administrator Greg Schulte said.

With fraud, criminal activity and inappropriate expenditures being gradually ruled out, it remains unclear how the county financially imploded, although shoddy budgets, commissioner overspending and staff incompetence are emerging as the likely culprits.

Nevertheless, District Attorney Craig Westberg has said his office continues to investigate, and Archuleta County Treasurer Lois Baker now faces misdemeanor charges stemming from allegations she violated state statute in her duties as one of the county’s key financial managers.

If found guilty Baker faces fines of $50 to $500 and the possibility of being removed from office.

Although Baker faces prosecution, questions remain whether there is sufficient evidence to bring charges against former finance director Bob Burchett and former treasurer Traves Garrett. Both held tenure in the years leading up to financial meltdown, and documentation may indicate statutory violations also occurred on their watches.

If statutory violations are discovered under the Burchett-Garrett tenures, Kim Kitchen of the district attorney’s office said expiration of statutes of limitation may hamstring her office’s ability to prosecute.

Westberg was unavailable for comment by press time Wednesday.

Residents with road rage lobbied the Board of County Commissioners during Tuesday’s meeting, and although the board ultimately approved a road capital improvement plan for 2008, the project list left some attendees pleased, and others chagrined.

On the proposed funding list were resurfacing projects slated for County Road 975, Park Avenue and Holiday Avenue, in addition to $50,000 committed via contract, to intersection design work at North Pagosa Boulevard.

While board members said they couldn’t walk away from the $50,000 for North Pagosa Boulevard, bids for the other projects exceeded dollars available, and the board was forced to choose.

Ultimately the board approved a $52,384 bid to chip seal Holiday Avenue, taking the dollars from the Ballot Issue 1A fund, and caging the project as “maintenance.”

In addition, the board approved a $205,338 bid to chip seal 2.5 miles of Park Avenue from North Pagosa Boulevard to Carlee Place.

County Road 975 caused consternation among board members because paving the three-mile stretch in question would have obliterated the 2008 road capital improvement budget and chip seal, although more affordable, would not likely withstand the pounding of heavy truck traffic found on the road.

Ultimately the board approved the $717,185 bid to pave the first mile of County Road 975 from Colo. 151 south.

Although the commissioners unanimously voted to chip seal Park and Holiday avenues, the board split on the engineering for North Pagosa Boulevard and County Road 975.

Archuleta County Commissioners Bob Moomaw and Ronnie Zaday acknowledged their contractual obligations and voted in favor of funding the design work, while Archuleta County Commissioner Robin Schiro voted against.

Schiro said the engineering work could have been done “in house,” yet discussions when the project was first put forth indicated the county did not have an engineer capable of handling the complexities of the project, hence, the hiring of the firm.

Schiro also voted against paving the first mile of County Road 975, and said the dollars could be used to do “three roads for the price of one.” However, the board, on which Schiro sat, agreed to improve the road in January 2005, and $500,000 in grant money had been secured, while county crews had recently completed drainage work necessary for the resurfacing project.

When asked why the “nay” vote, Schiro said times and circumstances had changed.

While one vocal resident of County Road 975 left the meeting pleased, a cadre of Fourmile Road residents left the meeting dejected.

Jim Pruitt championed their cause, citing public health and safety concerns related to dust, traffic and excessive speed, and asked that paving Fourmile Road be added to the 2008 project list.

Pruitt’s request was denied; however, the board agreed to an expedient application of mag-chloride — a dust inhibitor — and said it would review other solutions suggested by Pruitt such as reducing the speed limit and not grading the road in order to slow traffic. The commissioners said they will continue discussions with Fourmile Road residents in July, and will look at short- and long-term remedies for the problems, including the possibility of placing Fourmile Road as a priority project on a forthcoming, five-year road capital improvement plan.

Interim Public Works Director Chris Tanner said countywide mag-chloride applications would begin in early July.

Local law enforcement officers netted an 11th suspect June 12, in an ongoing investigation into narcotics distribution in Archuleta County, with 29-year-old Tammy Coen of the Pagosa Springs area appearing before Judge Jim Denvir yesterday.

Coen faces a Class 3 felony charge of possession with the intent to distribute a controlled substance.

Archuleta County Undersheriff and Public Information Officer John Weiss said Coen was arrested on suspicion of distribution and her alleged connection to David Bradley — one of eight individuals arrested during a raid launched June 1. Weiss said two other suspects were arrested earlier in the year.

Weiss said the June 1 raid was the result of a 10-month interagency investigation led by Det. T.J. Fitzwater, a joint, town and county narcotics officer.

Archuleta County Detective Sgt. Carl Smith said the eight suspects arrested during the raid and in follow-up operations have been charged — preliminary hearings are scheduled for July 3.

Although sheriff’s department staff would not comment on the amount of drugs seized during the June 1 sting, Weiss said buys of nearly 100 grams of methamphetamine and cocaine led to obtainment of the arrest and search warrants needed to mount the operation.

The crime scene read like a scene from “CSI: Miami” — a shattered window, glass shards, fumes of bleach — but according to investigators it was just a standard, small-town liquor store burglary, the alleged offenders juveniles who had apparently watched too much TV.

Archuleta County Undersheriff and Public Information Officer John Weiss said the sheriff’s office received a call about a burglary at Pagosa Liquor May 17, and apparently the burglars hit two nights in a row, May 16, and then again on the night of May 17 — the first night to steal liquor and the second to cover their tracks.

“(After the first incident) it looks like they went home, got bleach, returned to the scene and sprayed the scene with bleach to kill their DNA. And, while they were there, they stole more liquor,” Weiss said.

Nearly a week after the Pagosa Liquor incident, deputies were dispatched May 22 to Boss Hogg’s restaurant to respond to a call of another liquor theft.

Weiss said the district attorney’s offices is reviewing an investigation conducted by the Archuleta County Sheriff’s Department which yielded four suspects, all of whom are juveniles.

Depending on the outcome of the district attorney’s review, Weiss said charges may be filed.

Photo courtesy Bethany Wanket
The 4-H rabbit project will host the first American Rabbit Breeders Association rabbit show in Pagosa Springs Saturday. Project members invite the public to attend and see what a rabbit show is all about. The show starts at 8 a.m. at the Extension Building. In addition to the rabbit show, there will be a variety of contests including a rabbit dress-up contest, showmanship, rabbit breed identification, and kids’ rabbit judging. There will be pet and show-quality rabbits for sale. From left are project members Breanna Voorhis, Bethany Wanket, Brandon Tanner, Angel Lucero, Kayla Walker and Jessica Tanner.

SUN photo/Terri House
Last Saturday morning, on Flag Day, members of American Legion Mullens-Nickerson Post 108 honorably retired 89 unserviceable American flags during a ceremony at the post on Hermosa Street. From left are Legionnaires Fred Uehling, Raymond Taylor and Hal Hawlowe.

Searchers Monday discovered the remains of Michael George and Kyle Kerschen, both 27 and both of Albuquerque — snowboarders who went missing at Wolf Creek Ski Area on Jan. 4.

Mineral County Sheriff Fred Hosselkus said Monday that George and Kerschen were found by members of an independent search team organized by the parents of the missing men.

According to Hosselkus, dogs being used by searchers working the “Knife Edge below Alberta Peak” caught a scent and searchers soon after discovered Kerschen.

Hosselkus said Davey Pitcher, of Wolf Creek Ski Area, was riding as the observer in a helicopter and spotted a red color in the trees approximately a tenth of a mile from the site where Kerschen was found. The red was a jacket worn by George. “It was a pretty lucky find,” said Hosselkus.

Hosselkus said George and Kerschen apparently snowboarded off the back side of the ski area and were ultimately found outside of ski area boundaries, south and east of Alberta Peak and technically in the East Fork drainage. Hosselkus said the men were found with their snowboards.

The sheriff said the Mineral County coroner accompanied the bodies to Colorado Springs for autopsy and the cause of death for both snowboarders was determined as hypothermia due to exposure.

“I’m glad it’s over,” said the sheriff.

George and Kerschen were supposed to meet with family members in Pagosa Springs Jan. 3, and the pair never showed. On the morning of Jan. 4, ski area staff verified the snowboarders’ car was in the ski area parking lot, and the men were officially reported missing.

A multi-agency search was organized at the time, involving 50-60 individuals. Ground crews and helicopters were used in the search, with air efforts interrupted by weather and ground efforts undertaken in the face of severe weather, heavy snowfall and high avalanche danger.

Staff from Mineral, Rio Grande and Archuleta counties, the Forest Service, Wolf Creek Ski Area, Upper San Juan Search and Rescue, and volunteers from New Mexico participated in the initial search that included areas into which people often venture out of bounds.

A 31-year-old Mexican national, Sergio Bustillos Cervantes, arrested in Pagosa Springs in March 2007, and convicted of offenses March 24, was sentenced in District Court Tuesday, convicted on four counts of cocaine distribution, one count of attempted distribution and one count of possession of cocaine for sale — all felony offenses.

Cervantes had also been charged with importation of a controlled substance into the State of Colorado and possession of a firearm available for use, which added to the severity of his sentence.

According to Det. Scott Maxwell of the Pagosa Springs Police Department, officers received information in February 2007 that Cervantes was involved in trafficking large amounts of cocaine into the Pagosa Springs area, and had been doing so for some time.

Cervantes and another suspect, Carlos Cruz-Cordova, were arrested after an investigation by the town police department and the sheriff’s department that involved purchase of controlled substances, and the discovery of evidence in Cervantes’ home following execution of a search warrant. Four vehicles were seized at the time of arrest, along with $2,000 in cash.

Cruz-Cordova, who authorities say worked for Cervantes, was sentenced earlier to two years in the Colorado Department of Corrections for his part in the drug sales.

Cervantes spent nearly a year in jail prior to the five-day trial in District Court in Pagosa Springs that ended March 24 with conviction on all counts.

Cervantes’ Tuesday sentencing totaled 54 years in state prison; however, because he is allowed to serve the sentences concurrently, he will spend 10 years behind bars.

Upon release, Cervantes will be deported to Mexico.

With the two local water boards selecting an engineering firm during Tuesday’s joint board meeting, the $148.6 million Dry Gulch Reservoir project continues to inch forward, despite public concerns regarding the project’s cost, funding mechanisms, and its scope and scale.

During the special session, board members from the Pagosa Area Water and Sanitation District (PAWSD) and the San Juan Water Conservancy District (SJWCD) selected the engineering firm MWH, and PAWSD manager Carrie Weiss said work has begun to draft a contract for both boards’ review and approval in July or August.

“We’re hoping by July to at least have a draft to present to both boards,” Weiss said.

The project is slated for construction on a 660-plus acre parcel of land about three miles east of Pagosa Springs off of U.S. 160, and according to PAWSD documents, MWH’s work will occur in two stages: stage one includes a river diversion of about five cubic feet per second (cfs) to fill the reservoir planned for stage two; a pump station initially sized for the five cfs to lift water 40 feet from the San Juan River bed to a new water treatment facility; and a pipeline to connect the pump station to the treatment plant.

Planning and design for stage one is scheduled from 2008 to 2013, with construction slated to begin in 2014.

The second stage involves, among other items, enlarging the diversion structure to accommodate up to 180 cfs and enlargement of the pump station to handle the increased capacity and construction of an earthen embankment dam capable of storing between 12,500 and 35,000 acre feet of water.

Construction on stage two is scheduled for 2020, yet some citizens are concerned whether the districts should embark on such an ambitious reservoir project in light of national and local economic downturns, and they point to PAWSD’s 2008 budget and the district’s financial practices to support their assertions.

According to PAWSD budget documents, the district intends to collect $650,000 in Water Resource Fees ($7,210 per equivalent unit) in 2008. Yet, as of April 30, 2008, Water Resources Fees collected total just $21,840 when they should hover around $214,000.

Secondly, when budget to actual comparisons are made on PAWSD’s Capital Investment Fee, the figures are equally as discouraging. According to PAWSD budget documents, Capital Investment Fee collections should total $350,000 for 2008. Yet, as of April 30, 2008, collections total just $14,549 — $100,000 less than should be in the coffers at this point in the year.

Weiss said although the numbers appear low, people are still scheduling tap connections and many are pending. Weiss said as of June 10 the district had completed 25 connections, with 12 more scheduled. Some of those connections, Weiss said, will add to the Water Resource Fee line item.

PAWSD staff has said the Water Resource Fee is one of the chief economic engines driving the Dry Gulch Project, yet with collections low, how does the district intend to fund the project?

According to Weiss, PAWSD has the authority to issue water revenue bonds, which, unlike general obligation bonds, don’t require voter approval.

According to PAWSD documents, water revenue bonds dating back to 1998 total $17.83 million in district debt, with 2008 debt service payments slated at $1.37 million. As part of the above total, a 2007 water revenue bond shows a debt service balloon payment of $8.6 million due to Wells Fargo in 2009, bringing 2009 water revenue bond debt service payments to $9.94 million.

Weiss said the $8.6 million dollar balloon payment will be handled with an $11.2 million loan from the Colorado Water Conservation Board, and Weiss said the loan will provide the district with enough revenue to pay back the loan, and to conduct environmental studies and purchase additional acreage necessary for the Dry Gulch project. Thus the public via PAWSD is currently obligated to $11.2 million.

Weiss said the district intends to go to voters in 2018 with a bond issue, and that grant funding will play a role in paying for the project.

However, some say the ability to float bonds without voter approval coupled with using future loans to pay back prior loans smacks of the county’s financial practices that led to its fiscal unraveling in April 2007.

Weiss challenged the assertion and said PAWSD is on firm financial footing, with sufficient reserves and a variety of mechanisms to generate revenue, including fee and rate increases if need be.

Weiss said in addition, PAWSD has the ability to suspend or slow the project as economic conditions warrant; however, she added, “If we had no more people move in here today, and no more tourism, we would still need Dry Gulch in one form or another.”

Weiss explained that even with the autumn completion of the Stevens Reservoir expansion, the district still cannot store sufficient water to meet its obligations and to provide a one-year safety supply margin.

With the state supreme court’s 2007 ruling that the district’s long term growth projections as justification for the 35,000 acre foot Dry Gulch project were shaky at best, and some citizen’s crying financial deja vu, PAWSD appears poised to embark on a public information campaign regarding the project. Stay tuned.

County residents will have a second opportunity to weigh in on a proposed nuisance ordinance, during a special work session Tuesday, June 24, with the Board of County Commissioners.

The meeting is scheduled for 6 p.m. in the commissioners’ meeting room at the courthouse in downtown Pagosa Springs — public comment is an integral part of the process.

“The purpose of having these workshops is not only to educate the public on the ordinance but to take comment,” said Archuleta County Administrator Greg Schulte.

The first work session May 27, Schulte said, drew a crowd expressing mixed support.

“There has been interest on both sides which I believe is healthy and welcome,” Schulte said.

Since the May 27 session, and utilizing citizen, county staff and board member comments, Schulte said county staff continue to refine the document, and public input has played a vital role in the process. Schulte added that although the comments have pinpointed details within the document in need of fine tuning, the ordinance has not undergone substantive changes since its unveiling in May.

At its simplest, and if ultimately approved, the ordinance would prohibit property owners from keeping abandoned, wrecked vehicles and boats, junk and other items such as rubbish and discarded appliances deemed “a danger to public health” on their property.

The ordinance allows for certain exemptions, such as materials stored for a building or renovation project, and it outlines processes for notification, hearings before the board of adjustments and penalties for violators. Ten-acre industrial tracts and agricultural parcels currently used for agriculture are exempt.

Although some citizens have expressed concern that the ordinance gives the county the power to arbitrarily and unilaterally control what an individual does on their private property, Schulte said the ordinance provides for a hearing an appeal process.

“There is some subjectivity,” Schulte said, “but there is due process.”

For example, a property owner who is notified of a violation can make their case before the board of adjustments.

Schulte said the ordinance is intended to ensure the health, safety and welfare of Archuleta County residents, while making the area more visually appealing to residents and visitors alike.

“There is an economic component to this,” Schulte said. “It (the ordinance) can help our county be a more attractive place.” An improvement Schulte said would help attract new businesses and residents.

Schulte said it is not the county’s intent to criminalize or penalize residents with the ordinance. Therefore, Schulte said the ordinance’s success will hinge, in part, on programs the county creates to facilitate compliance. To that end, Schulte said county staff are exploring a variety of options and developing an implementation plan, details of which will be provided as soon as they are available and as the adoption date nears.

A draft version of the ordinance is available on the county’s Web site at www.archuletacounty.org. Go to “News and Events,” then click on “Read the Nuisance Ordinance Draft.” Schulte said hard copy versions are available at the planning office and the courthouse.

Schulte said adoption is targeted for mid July.

SUN photo/
Terri House
First, you are crowned Queen, then you bowl a strike. That was Emilia Ennis’ plan Saturday at the kite festival at Town Park. Emilia, 3, was named Queen of the Parade for the color originality of her costume and her use of accessories. She then moved to the Big Brothers Big Sisters bowling alley to knock down some pins.

Williams said once the answer is filed, the case will begin working its way slowly through the courts.

james@pagosasun.com