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HomeMy WebLinkAbout1978-04-13 Min - Board SPECIAL MEETING APRIL 10, 1978 The special meeting of the Board ©f Directors of the Truckee Donner Public Utility District was called to order by the President in the District office at 7: 15 P.M. ROLL CALL: Directors Huber, Kuttel , and Maass were present. Director Sutton was ., absent. EMPLOYEES PRESENT: A. Milton Seymour and Susan Craig were present. CONSULTANTS PRESENT: Dan J. Cook, District Engineer was present; District Counsel Steven E. Grumer was expected to arrive prior to the public hearing. OTHERS .PRESENT: Don Strand, Michael L. Bergstrom, L. Martin Duffy, Robert Claar, James Thompson, John Sharp, and Linda Heckendorn. REPORT ON TRUCKEE SANITARY DISTRICT BOARD MEETING REGARDING AGENDA ITEM RELATED TO MERGER OF SERVICES; 'POSSIBLE BOARD ACTION Mr. Seymour reported that there was fairly good attendance at the Truckee Sanitary District Board Meeting held on April 4, 1978, and the public seemed some- what interested in a merger of services of the two districts. Community benefits of such consolidation were discussed at the meeting. Director Kuttel , also pre- sent at the meeting, advised that he spoke in favor of placing this matter on the ballot for public determination. He further advised that Don Strand, at the TSD meeting recommended that the Taxpayers' Association pursue the matter. Mr. Strand noted that a meeting of the taxpayers' group would be held regarding such merger. A meeting between D i str i ct Engineer Cook, Jack Marquette, Manager for the Truckee Sanitary District, and Mr. Seymour was discussed briefly. No action was taken. LETTER TO CUSTOMERS RE NEW WATER RATE President Maass suggested a letter be written to the water customers regarding the new rates if the proposed Ordinance is passed. District Counsel Grumer arrived at 7:30 P.M. SPECIAL BUSINESS Consideration of proposed Resolution adopting Electric and Water Cash Flow Budget for 1978 Consideration of proposed Ordinance establishing new water rates Mr. Seymour explained the proposed water rates which will include pumping charges determined by zone, and the proposed 1978 Budget. PUBLIC HEARING At 7:40 P.M. , President Maass opened the continuation of Public Hearing from the April 3 rd meeting. Bob Claar of Fiberboard Corporation had questions concern- ing pumping charges and zones for commercial users. Mr. Seymour clarified for Mr. Claar that the Water Department had been operating at a loss and also explained that the Water and Electric Departments Operated separately. Mr. Claar stated that he was not objecting to the rate changes; he simply wished clarification as to the reasons. The President closed the Public Hearing at 8:01 P.M. Director Huber moved that the resolution adopting the Electric and Water Cash Flow Budget for 1978 be passed; the motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass , aye. SO MOVED A motion was made by Director Kuttel that the Ordinance establishing new water rates be adopted, said Ordinance becoming effective with consumption com g - mencin June 1 , 1978, and the statements rendered on July 1 , 1978. Director Huber seconded the motion. ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye. SO MOVED. TAHOE-DONNER MATTERS Review of James Thompson's letter of March 30, 1978 Environmental review for Sanders Wells #2 and #3 President Maass requested that Mr. Thompson' s letter dated March 30, 1978 become an attachment to these minutes. Environmental assessment of the two new well sites and the new supplemental agreement between the District and Dart were discussed. Concerning Sanders No. 2 Well , Dart' s provision of a mitiga- tion agreement prior to exploratory drilling was requested by Director Huber. Mr. g Thompson agreed to provide such agreement. Director Huber further advised p of her concerns respecting the Northside Well , the proximity to sewers, abroga- tion of the present agreement, and s i esm i c action in the area. The possibility of utilizing the Airport Well for Tahoe-Donner's needs and probable cost were discussed; Mr. Thompson advised that Dart felt there were less costly ways of accomplishing their goal . D r. Sharp, Hydrologist for Dart, spoke respecting exploratory drilling at the proposed well sites. Mr. Seymour expressed the concern that Dart agree that there will be ade- quate water for Tahoe-Donner at full build-out. Operation and maintenance of the system and the possibility of making Tahoe-Donner a special rate district were discussed. The necessary review process , environmental issues,and appropriate mitiga- tion measures were deliberated. M r. Thompson requested that M r. Cook proceed with his work and provide reports to the District. Director Huber moved that the Board direct Mr. Cook to go forward with the environmental review process for the Trout Creek Well and to investigate the necessity of a mitigation agreement before the exploration hole is started on the Sanders Number 2 Well utilizing the new CEQA ordinance, and report back to the Board to expedite Tahoe-Donner' s natural concern for time. The motion was seconded by Director Kuttel . ROLL CALL: Huber, aye; Kuttel , aye; Maass, aye. SO MOVED. A meeting of the Special Committee on Tahoe-Donner matters with Dart representatives was scheduled for Wednesday, April 19th at 2:30 P.M. ADJOURNMENT The meeting was adjourned by general consensus at 9:05 P.M. TRUCKEE DONNER PUBLIC UTILITY DISTRICT By J s A. Maass, P esident of the Board Approved: April 17, 1978 Signed: --- ' Susan M. Craig Executive Secretary smc KRONICK1 MOSKOVITz, TIEDEMANN CONE&PM: E TANLEY W. KRr-NICK jL PPOF C 5 5 IONAL t op P(.)RA7 ION Boo rd C)!j KOVI T Z ADOLPH M IU�-MANfJ AT TOR t4 EYS AT L-AW Dkt6rt Fngr. _QF COUNSEL L LC)Y 0 H I N K t',k,M A N MALL�j,-S C-.APITOL f7j.­ E. KENDELL OAS C_'LIFFORL) W, SACRAMENTO, CAL E1 IFORWA OS14 Dill.trict COUnSal -JAMES E. THOMFISON f4oBERT E. MURPHY TELLPHQNE (916) 444-0920 F-1 Lir)t. T Ji,NE ir ire$ V E* t E r�EA fR y Olt"' T K, GOLDSMITH L ;1AUL M, R J3 A R A March 30 , 1978 Truckee-Don ner Public Utility District Board of Directors P. o. Box 309 Truckee, CA 95734 Gentlemen: I am writing to you on behalf of my client, Dart 6 spirit Of Industries, Inc, This letter is written in the Cooperation in hopes that a clear understanding of Dart' s position and a brief explanation of its basis will be useful to the District Board of Directors in reaching an informed decision as to whether the district should proceed at once to initiate environmental assessment of the two now well sites proposed by Dart. On January 4 , 1978, Dart appeared before the District Board and formally requested that the District commence 0.11vironmental review of two new well sites . One of ti-ie sites is located inu-aed iate ly ad jacent to the pipeline route to the Sanders Well and immediately to the west of the point where State Highway 267 crosses beneath Interstate 80 Freeway. The second site is located near Trout Creek Road, south of State lligl-lway 89 . The Board deferred action on this request. it is Dart' s position that the District has a clear duty under the 1973 Silipplemental Agreement to proceed immedi- -1t,c,,ly wi.th enironmen .v. tal assessment Of the proposed new well. i sites . This duty arises under the following provisions of the 1973 Supplemental Agreement. 1. Paragraphs 12. and 13 of the agreement give Dart I and facilitiese thIl- right to develop additional water sources eminent part: specifically Paragraph 13 provides in per i ( public Util , ty DiStr Ict F�ruckcc�Donner March 30f 1978 2- tilnes have the DartS all 0 hall at in to 9 and transferl option of providing District shall 4 r ' cti and thee-Rel(Z and • the DistI nal water soiarceS accept, additiO he requirements Of -Ii.ties meeting t lieu. of facl 12 above in lie paragraphs 11 and Exhibit B constructing the the Oistrlct con facilities• ref(arcnce is made in the I is, Silitabile paragraph 12 , to wh*-C" refers to 13 quoted above, ision of paragraph c. lities , yielding at least 250 prov and fa i ict at no cost to the itionz.1. water source to the I)i.str g demands ell add to be provIded by Dart ros increasing gpm . t Ilin till1p, to meet Tahoe Donne cooperate Distric. paragraph 14 requires the District to 2, add water sources and a elopment Of a I anh 14 provides: with Dart in the. .dev of Paragrz, facilities4p The first Sentence. t Dart in "The District Shall developing add,tTonal water locating and facilities which would delay sources and cessity of constructing or obvi.ate the ne_ _ (Emphasis added) a the Exhibit B facilities* ent, paragraph 191 elemental. Agreem ualitY Under the 19�3 Su # ironmental Q ions Of the California Envi make anzci env iron- the dutY to the pf-c)vis-- the right and locations . If the District has sed new well Act, Sessment Of the PrOPO * S capable of being mental as ntial adverse impact nt' fiedf it is the potent -al- substa. measures are ide I ment as well P oplemental Agree nji.tigated by feasible meas to strict C's right under the 1973 SU Environmental Quality Law DistriCalifornia Enviro- project ­C" cluty under the Cal measures into the pro which as its mitigation measu the right, incorporatC thosc-1-1 ict (300,s not have 0 onin.ental C1.0arly tj,c Distr aelay its envir 0 n of ,low(.%\I(%.r I asserted it has , to tes until the cOnsummati-O t1le Board has -iew well sl 0 to provide water ssmo Tot and Dart asso- nt of the two he DI-Strl any other sil1jilar Cnt between t :,s - or for a new agree'" ssion facilitie source and transmi permitsr Dart reason- 1978 , as weather the two 7�s soon after May drilling On each Of 0 ,mental intends to coijimence exploratory requested envir ` -�-n,cz for which Dart reque en available to VropOsed well sl%"--b­. Ample time has be iron- iary 4 , 1978, propr Tate env assessment Janu _nce and complete any ap 4 t t 0 c omme the I)istric f these Siteso mental assesswkelAt 0 Truckee-Donner Public Utility District March 30, 1978 Page -3- These two sites have been selected for exploratory drilling for several sound reasons. First, the probabilities of developing substantial water yields appear to be highly favorable in the opinion of the consulting hydrologist, Dr, John Sharp. Ilis opinion is based upon 'information gained in the drilling, testing and performance of the,I Northside Well and Sanders Well No. 1 . Moreover, these- sites Piave the aulditional advantage of lying fairly close to the District' s existing water transmission facilities or to those which are to be constructed to tic. the Sanders Well into the District' s existing water system, This will result in substantial savings in capital costs of Pipeline construction, as well as minimum disruption of the environment by pipeline construction, For comparative purposes, Dart has estimated the costs of the two proposed new wells as well as a new well at the location of the District' s existing Southside Well . The costs compare as follows: Cost Sanders No. 2* Trout Creek* Southside Drilling $400, 000. 00 $400r000. 00 $400, 000 . 00 PuTnp Station 175, 000 . 00 175, 000 . 00 175, 000 . 00 Pi P 0-1 i 11 Construction -0- 110f0oo - 00 400 , 000. 00 Total $575, 000. 00 $685r000 . 00 $975r000.00 As shown by these estimated costs, it is simply not justified from a financial standpoint to locate wells supply- ing the -total demand of Tahoe Donner at ultimate development in inore than one geno-ral area, Concern has been e_--.-pressed by District repro:enta tives that the proposed Sanders No. 2 Well would be loctated in an area where its operation might have some adverse influence on the capacity of the existing Northside Well. The District, of course-, riaist insure that Dart providos the District with new water sources sufficient to meet the ultimate demands of A proposed well for which environmental assessment by the District is requested. Truckee-Donner Public Utility District CP7.000� March 30, 1978 P a g e -4- hoo Donner. however, by taking into account only the net increase in total capacity of the Northside Well plus the proposed new well, Sanders No. 2, in calculating the total number of gallons per minute which Dart will � be obligated to provide through other source s, such a s the proposed Trout • Creek Well, the District can be fully protected from any adverse impact. Expressed another way, if the Sanders No, 2 Well influences the operation of the Northside Well , the rated capacity of the Northside Well will be decreased by the appropriate al"Ourit so that Dart will receive credit against its obligation to provide additional water sources only to the extent that the Sanders No. 2 Well provides additional water. As I -indicated to the Board at the meeting of January 4 , 1978, Dart is fully willing to enter into an appropriate contract with the District- to give full protection from thi s poten- tially adverse affect. However, Dart is not willing to permit the District to dictate selection of sites for well development for several very valid reasons. Well drilling in the Truckee area in- volves a high degree of rislK, Substantial drilling costs must be incurred before it is known whether the well will be pro- ductive. Since Dart must bear the risk - and the cost - of unsuccessful development, it is only proper that Dart be permitted to drill the wells where its consulting hydrologist, Dr Sharp, indicates the probabilities for succcss are the I'iiylest and the risk is the !.east. Moreover, as shown in the -lbove cost estimate, pipelinc--_1 Costs are also very substantial. This is particularly true in an area like Truckee where the soil is very rocky and trenching operations are difficult in ii,Lany locations. Dart is unwilling to undertake drilling operations within the boundaries of Tahoe Donner itself because it lies in an area of low groundwater potential and is unsuitable for more than marginal groundwater development. The unsuitability of that area is confirmed by the experience with the unsuccess- ful Sales office well . I C-Im certain that your hydrology consultant, William Nork, will advise you that a low proh- ability of success rules out the feasibility of drilling at Tr--Ihoo- Donner. The high cost of pipeline construction, illustrated above in the cost estima-L-es, for the various wells, clearly makes it infeasible to provide more than one transmission ee-Donner pul)llc Utility DDistrictTruck March 30, 1978 Page -5- ute to deliver t1je total water supply to Tahoe Donner unless ro I The remote possibility that a there is no other alternative . possibility catastrophe might occur which would destro y the transmission lines and interupt water service to Tahoe Donner • czannot rat-ionally just ify the ex penditure of. vast amounts of money to dupl icate transmission routes,& 0 It is necessary -to • Time is becoming critical. n after May 1978 , as commence explorato'ry drilling as soo that wcaffier permits. For this reason, Dart urgently requests the Di strict proceed without further delay to initiate appro- priate environmEmtal review procedures for Dart' s proposal to conuiience drilling at the Sanders No. 2 Well site as well as the Trout Creek Well Site. Please set a meeting date to take ter before April 10, 1978 . If the final action on this matter n before that dater I have been Board fails to take such actio authorized to commence appropriate litigation to compel the District to perform its contractual obligations , Such liti- gation is Of tL_-�,-, counte r-product i.ve and Dart very much hopes to 1 1 avoid the necessity for it in this situation. Dart is willing to continue negotiations with the ee looking toward a new water - agreement Board' s Water Comm a- tisfactory. it i s hoped • which the District may find more s -Lh,at this letter wi ll not • foreclose the District' s willingness to continue. the-so, negotiations as lo ng as the y hold out any iloweverf Dart will not permit reasonable prospect Of SLICcOss assessment of the proposed the District to delay environmental.such negotiations are pending. new well sites merely because /Very tr yourst U, ES E0 T OMPS, N J L""r