HomeMy WebLinkAboutGeneral Fund TRUCKEE DONNER PUBLIC UTILITY DISTRICT
STATEMENT OF GENERAL FUND - September 13, 1978
Bank Balance - August 31 , 1978 $ 86,758.55
Truckee Electric & Water Revenue 61,568.53
Donner Lake Electric Revenue 24,779.47
Electric Connection Fees 7,000.00
Water Connection Fees 2,390.00
Standby Revenue 86.25
Miscellaneous Billings Revenue 2,438.38
Miscellaneous Revenue 2.25 $ 185,023.43
Approved Billings
Less Listing Errors: $156,362.57
Graybar Electric (617.38)
Red Star Ind. Serv. ( 96.50) $ 155,648.69
Bank of America - Federal Tax Deposit 2,849.51
State of California - Dept. of Benefit Payments
State Income Tax and State Disability Insurance 1,332.56
Bruce Grow - Travel expenses to Meter Tech. School 450.00
Petty Cash - Replenish fund 189.74
T.D.P.U.D. - Interest on Consumer Deposits 3.25
U.S. Postmaster - Trust Fund 20.00
Postage Meter 200.00 $(160,693. 75)
PAYROLL
8/31/78 OT DT Standby Gross Net
Barry 686.40 523.04
Chapman 739. 17 522.20
Connell 732.38 524.09
Craig 537.50 384.74
Grow 954.24 695.39
Jones, N 520.32 374. 11
Marsh 653.76 474.93
Lopez 36.92 923.00 645.35
Pomponio 617.28 451.96
Reynolds 94.20 981.76 721.20
Rose 716. 16 461.81
Rully 347.99 1,129.43 675.57
Seymour 1,250.00 936.31
Silva 134. 19 119.28 99.40 1,311.61 884. 79
Slattery 750.00 547.79
Straub 55.38 941.46 656.49
Tamietti 305.25 11091. 19 801.88
Waltrip 4.83 603.75 443.33
Bennett 567.36 436.88
847.64 156.20 193.60 15,696.77 11,161.86
-^ Temporary and Part-time Employees:
Jones, T 444.00 327.30
Mannix 392.64 316.92
McQuary 225.25 180.27
Painter 98. 16 86.89
1,160.05 911.38
847.64 156.20 193.60 16,856.82 12,073.24 (12,073.24)
Bank Balance - September 13, 1978 $ 12,256.44
Bills for Board Approval :
Aetna Life & Casualty- Renewal Rate Change 35.42
Crown Life Insurance - September Premium 322.41
Graybar Electric - Dials , lexan covers, brady
reflective numbers 613.78
Red Star Ind. Service - Linen service 54.00 (1,025.61)
Bank Balance after payment of above $ 11,230.83
General Fund Balance in LAIF is $ 436,333.70
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
FmHA CONSTRUCTION FUND STATUS REPORT - September 13, 1978
Bank Balance - August 31, 1978 $ 37,172.95
Approved Billings $ 6,402.67
Jetco Underground Const. - Partial Payment #3 7,051.50
C.W. Roen Construction - Partial Payment #3 7,020.00 (20,474. 17)
Bank Balance - September 13, 1978 $ 16,698. 78
Bills for Board Approval :
Cook Associates - Water Source Augmentation and
Elimation of System Losses (3,825.65)
Balance in account after payment of above $ 12,873. 13
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TRUCKEE DONNER PL )ILITY DISTRICT 1
BALANCE SHEET
JUNE 30, 1978
ASSETS MARGINS AND LIABILITIES
Facilities, Buildings, Land: Margins:
Plant in Service Operating margins - Cumulative 1 ,285,107
Electric plant 2,197,562 since 1927
Water plant 878,132 Other equities - Profit on sale 608,856
General plant 388,123 of non-utility property
Plant in service 3,463,817 Year to date margins 192,521
Less accumulated depreciation (1 ,829,538) Total Margins 2,086,484
Net Plant in Service 1 ,634,279
Construction work in progress 42,659
Acquired plant 3,683 Long-Term Debt:
Net Utility Plant 1 ,680,621 REA bonds payable 348,574
Note payable to Sierra Pacific 66,573
Power Company
Real Property - PUD House 23,627 Sewer assessments payable 16,895
Other - Computer loan, truck loan 22,841
Total Long-Term Debt 454,883
Restricted Funds 360,890
Current Assets: Current Liabilities:
Cash 571 ,915 Accounts payable 336,823
Notes receivable - Van Wetter 1 ,500 Consumer deposits payable 4,556
Accounts receivable - Electric 241 ,095 Accrued liabilities - Payroll taxes, 25,386
and water usage billings interest on notes
Accounts receivable - Standby 13,519 Total Current Liabilities 366,765
Accounts receivable, Other - Line 37,940
extensions, connection fees, misc.
Materials and supplies 195,020 Customer Advances For Specific Improve- 241 ,056
Other current assets - Insurance 23,061 ments to System (Restricted Funds)
prepmt., interest receivable, future
line extension costs
Total Current Assets 1,084,050
TOTAL ASSETS 3,149,188 TOTAL MARGINS AND LIABILITIES 3,149,188
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
STATEMENT OF REVE EXPENSES
For the month of and six li+ul s ended June 30, 1978
ELECTRIC DEPARTMENT _ WATER DEPARTMENT ELECTRIC AND WATER TOTAL
Current Month Year to Date Current Month Year to Date Current Month Year to Date
1977 1978 1977 1978 1977 1978 1977 1978 1977 1978 1977 1978
Net Revenues 162,602 177,242 1,089,704 1 ,230,129 31 ,942 18,282 138,621 116,268 194,544 195,524 1,228,325 1 ,346,397
Purchased Power 94,072 106,288 727,348 790,380 -0- -0- -0- -0- 94,072 106,288 727,348 790,380
Operating Expenses 7,053 7,582 33,071 40,600 9,521 10,857 37,281 47,767 16,574 18,439 70,352 88,367
Maintenance Expenses 4,056 2,599 21,434 36,360 2,766 4,272 11 ,566 16,047 6,822 6,871 33,000 52,407
Customer Accts. Expenses:
Meter reading, billing 6,820 11 ,383 36,313 54,223 1 ,814 3,523 8,942 13,317 8,634 14,906 45,255 67,540
customer services
General and Administra- 7,884 8,998 45,625 49,965 3,427 4,449 19,602 24,289 11 ,311 13,447 65,227 74,254
the Expenses
outside Services 8,370 1 ,808 40,930 16,334 4,919 1 ,923 18,265 20,839 13,289 3,731 59,195 37,173
Depreciation 6,940 7,243 41 ,451 42,807 2,583 2,594 15,488 15,549 9,523 9,837 56,939 58,356
Interest Expense on 996 995 6,630 6,152 317 60 1 ,612 ( 2,903) 1 ,313 1 ,055 8,242 3,249
Loans
Unallocated Overhead ( 1,922) ( 3,245) 3,832 ( 5,864) -0- -0- -0- -0- ( 1 ,922) ( 3,245) 3,832 ( 5,864)
Total 0perating 134,269 143,651 956,634 1 ,030,957 25,347 27,678 112,756 134,905 159,616 171,329 1 ,069,390 1 ,165,862
Expenses
Total Operating 28,333 33,591 133,070 199,172 6,595 ( 9,396) 25,865 ( 18,637) 34,928 24,195 158,935 180,535
Margins
Other Income and - - - - - - - - 2,486 ( 204) 5,372 11 ,986
Expenses
Net Margins - - - - - - - 37,414 23,991 164,307 192,521
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TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
POST OFFICE BOX 309
TRUCKEE, CALIFORNIA 95734
TELEPHONE 387-3896
MANAGER'S REPORT
September 18, 1978
GENERAL STATUS OF DISTRICT
Since the last report for the Board Meeting of September 5, 1978,
there have been no significant electrical outages in the District. There
have been a few temporary water outages caused by construction activity either
on Phase II of the Tahoe Donner pipeline project or caused by contractor op-
erations working on the Farmers Home Administration project 77-1 . None of the
outages have been serious.
REPORT ON INVESTIGATION OF NON-PAYING WATER CUSTOMERS
The attached list of problem water customers has been distilled
from Books 1 through 4 of the District 's customer records. As can be seen
from the list, there are some of these accounts that we can do little but
to start billing them and perhaps pick up a few months back water bills.
Others, we may be able to go back as far as three years and also collect a
connection fee. We will continue to investigate other non-paying water cus-
tomers as shown in other meter reading books and report to the Board again
in about one month on our efforts to clear up additional problems.
REPORT RE FOLLOW-UP ON HYDRO PLANTS AT BOCA AND PROSSER
No further action has been taken on this item.
REPORT ON WATER LEAKS IN DISTRICT
During the past two weeks, the instance of water leaks has great-
ly diminished compared to the number we were experiencing in August and July.
REPORT RE WHETHER OR NOT COST REPLACEMENT FOR NORTHSIDE WELL AND REPAIR OF
MOTOR FOR STANDBY CAN BE CHARGED TO TAHOE DONNER TRUST FUND
have inquired of Martin McDonough and asked Don Strand to
obtain Dart Industries ' interpretation of whether or not our purchase of the
new pump motor and the rebuilding of the old pump motor for the Northside
Well could be charged to the Tahoe Donner Trust Fund. As of yet, I do not
have a response from either individual .
BACKGROUND INFORMATION ON 2 INCH LINE SERVING SOUTHERN PACIFIC RAIL ROAD
TRAILERS
Research on this particular subject is still in progress. I have
not yet been able to find all of the old correspondence relating to this 2
inch line. 1 will report at the next meeting on this matter.
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Manager's Report - continued
September 18, 1978
REPORT REGARDING WHITE PINE COUNTY 'S PROPOSAL FOR ELECTRIC GENERATING PLANT
I have talked to the County Manager of White Pine County Nevada
regarding their proposed electric generating plant. The meeting that was'
held on August 24, 1978, was attended by some 20 interested power users. Ac-
cording to the Manager, there is still capacity left to be spoken for. He
has suggested that we direct an inquiry to Mr. Tom Bath, a member of the
Board of Directors of Mount Ely Electric, who is the Chairman of the Citizens
Steering Committee on this project. To the best of his knowledge, the pro-
ject is going to go forward. They do have some reservations regarding the
Federal Government wanting to declare major parts of White Pine County as
wilderness area , which would prohibit the installation of the power plant.
Apparently the new wilderness area bill has not yet passed Congress, but
there may be some jeopardy if it does pass in its present form. He also in-
formed me that before the project can really be undertaken, it is going to
require some changes in Nevada statutes to allow White Pine County to engage
in the business of selling electric power wholesale.
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WATE,.
�ROBLEMS - BOOKS 1 THROUGH 4
September 18, 1978
Hookup Fees Monthly Water '
Account No. Name Paid Charged Comments
ing
1-105-01 H. Quandt No, but billed Yes, 9-18 Perm.
billedlastofc new rowner, hooked vice 1-78, tup aer efew
weeks prior to Sept. , 78.
1-117-01 ' A. Freed No Yes, 8-78 Perm electric service 10-77.
1-119-01 R. Gebhardt No Yes, 8-78 Temp. electric service to present since 12-74.
2-163-01 T. Takata Yes No New permanent service, paid $140 water fee
10-13-77, permanent service, 3/78.
2-411-01 Beckinger Yes No Hooked
12-77.uPPaidswater perm.
fee ofelectric
ons10-7ce
7.
2-917-02 B. Burkett No Yes, and Hooked up himself by prior owner, Smith.Can
since 1975 find no record of ever paying connection fee.
4-112-01 Troy's Radiator Works Over 10 yrs. See comments Duplex next door. Each unit being charged
in existence mo. water. Water from duplex going to
this account. No water being charged to
account 4-112-01
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TRUCKEE DONNER PUBLIC UTILITY DISTRICT
BOARD MEETING SEPTEMBER 18, 1978
ENGINEER'S REPORT
Unfinished Business , Item 7: Acceptance Phase I
Attached to the back of this report is submission of
August 18, 1978 for your use in deliberating this item.
The Notice of Completion was recorded August 25, 1978.
1. Status Reports :
A. Abandonment of the Prosser Well:
I am told that the attorneys have completed their report
to the Board on this item and have concluded that the
next step is for me to formalize in report form the
various data that I have previously submitted on this
subject.
If it is the opinion of the Board, I shall complete the
requested report and submit same for your consideration.
� B. Project 77-1:
1) Roen is completing the Southside Well No. 2. There
will be a delay with the electrical work and final
completion will occur in late October.
Attached as page .3 through C is Roen's C.C.O. #3
in the amount of $5,700 to relocate the Southside
P.R.V. $2,000 was included in the budget for this item
in addition to the labor cost.
2) Jetco is moving slowly to completion. The line is
completed and disinfected with the relocation of the
services the remaining items of work.
3) The- 77-1 Project fund balance is $16,698.78 and the
anticipated payments to the contractors is some
$45,000 at the October 2 Board meeting. The Auburn
Fm.H.A. office informs that they have a check for the
District, however they are holding pending advice of
regional council.
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• _ UNITED STATES DEPAR-r-MENTT OF AGRICULTURE - �'-
Forrrt FHA 424-7 FARMERS IIO`IE ADMINISTRATION o soeFr rro_
(Rev. 8-22-69) 3
CONTRACT CHANGE ORDER DATE "
September 15 1978 [
STAT E
California
Elimination of couvr,r
CON"r FtACT FOF2 - i
ZJater Source_ Augmentation & System Losses
OWt4 EFL � -
Truckee Donner Public -Utility District, Schedules'B, C & D t
-- t
C: W. _Roen Construction, Danville, California__—_________________
You are hereby requested to comply with the following changes fro the contract plans and specifications_
L
Description of Changas DECREASE INCREASE
(Supplemental Plans and Specifications Attached} in Contract Price in Contract Price
$ $
See Attached Sheet -
- - - - - - ---- == $5,700__-----
TOTALS S - - -- ------ - -------------------
S,700 --
NET CHANGE IN COtiTP,ACT PRICE S ---_----.-------•------------------- --- - -'�--- -
JUSTIFICATION_- To provide pressure control for an area that has experienced j
excessive eater pressures causing users inconvenience`: and expense due to
1owouts- and leaks . The existing pressure reducing valves are not required
a their present location. - Furthermore, they cause a fldw restriction as
I resently installed..
The amount of the Contract will be(Decreased)(Increased) By The Sum Of:
Five Thousand Seven
5 ,700.00
�ff
Hundred Dollars Dollars CS
)- r
One Hundred Forty Three F _
The Contract Total Including this and previous Change Or 5tiilI Be. !
143,680.00
Thousand Six Hundred Eighty Dollars Dollars(S )-
30 calendar days after approval
The Contract Period Provided for Completion Will Be(Increased)
This document will become a supplement to the contract and all provisions will apply hereto-
Requested
GrOuO crAees ity
Recommended sociates (Own ': `
Arch:tect/Enb^in ee) l
AcceptedW. Roen (�ontra�t�r1 rpo:
Approved By FHA (Name and Title)
-�"- t1.s_ G_P.O_ 1976-665-664/19a- REG-95 Poeizion 6 � _ FHA 424-7 (Rev_ 9-22-69)
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August 16, 1978
Board of Directors
Truckee Donner Public Utility District
P.O. Box 309
Truckee, California 95734
Re: Tahoe Donner Off-Site 16" Transmission iiain
i
Phas e I
t
Dear Directors:
i
The construction work by T & S for the installation of the
_ above transmission main Project is now complete.
The line was tested for pressure and leakage .August 10, 1978.
The test was very successful; a copy signed by the responsible
I parties is attached for your consideration and files.
Continuous on -site inspection was provided by Steven Harvey,
as well as overview inspections by the undersigned. Mr.
Henry Bohlander represented Dart during the construction
activities. Ductile cast iron pipe was used and good construction
skills and techniques were employed bytthe Contractor, resulting
in a major addition to the water distribution system that
i
should serve the 'Truckee community well beyond 2080 A.D.
I recommend acceptance of the Tahoe Donner Off--Site 16" diameter
transmission main, Phase I, without conditions or qualifications.
i
i Very truly yours,
COOK ASSOCIATES
DJC/cab
Enclosure
cc: Don Strand Dan J. Cook
T & S Const. Civil Engineer
I
Board of Ili ructors
Truckee Ponder 1"Oh.1 i.r_ 11L.i 1 .i_ty
13 . 0. iiux "JU9 }
Trui.kue, Califr-lrni.a �15134
Gentlemen:
This is in reference to the subdivision known as / f� ;S� -�
d tests of the water. distr.ibution system .therein.
WITNE55ETH:
- z
the undeirsigned' contractor (or tiffs authorized representative )
hereby certify drat prnssure_ tests for the teferenced subdivision 1
have been made in accordance_ with specifications of the District t
and of the Mariufac-t.urer. Said tests were made In the presence of
a representative of the district. Following are details of those
tests:
Date of Tests :
Size R. Length of Line Tested : ./ /j�L_cc 2 7 L
e
r
P , Minutes
I essure Maintained :
Loss ( gal ) during elapsed .time:
GUNTRACTOR :
�-- Date.
License No
I
THE :DI5TRICT: I certify that I was F-tresent during pressure
tests above, that the "statements are true and correct and I
hereby approve said tests as satisfactory.
Signed
(For thf: -Dis L 7 t )
(� E
- r
E
Execute in triplicate
Original District File.
2nd : Contractor
3rd : Insiiector
D2 4
RESOLUTION NO.
OF
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
APPROVING AND ACCEPTING THE TAHOE DONNER
OFF-SITE WATER TRANSMISSION SYSTEM, PHASE I
WHEREAS, TRUCKEE-DONNER PUBLIC UTILITY DISTRICT entered into an
agreement dated March 19, 1970 with LAKEWORLD DEVELOPMENT COMPANY
wherein and whereby LAKEWORLD agreed to construct a water
distribution system in a subdivision development at Truckee,
Nevada County, California, then known as "Tahoe Northwoods",
with the costs of construction to be borne by LAKEWORLD; and
WHEREAS, said agreement calls for conveyance of the water distri-
bution system to the District after completion thereof; and
WHEREAS, on February 23, 1971, DART INDUSTRIES, INC. , a Delaware
Corporation, purchased said development subject to said agreement
and changed the name of the project to TAHOE DONNER; and
WHEREAS , on October 15, 1973, a supplemental agreement was entered
into by the District and Dart concerning the water service to said
development, which agreement supplements the said March 19, 1970
agreement with the 1970 agreement remaining in full force and
effect; and
WHEREAS , under said 1970 agreement the District was required to
approve the plans and inspect the construction and assure itself
that said works and water distribution system was constructed in
accordance with the approved plans and specifications and there-
after accept said water distribution system and from the date of
acceptance to assume all responsibility for future operation,
maintenance and repair of the system and to be forever thereafter
responsible therefor; and
WHEREAS , the District received assurance from Cook Associates,
Engineering Consultants, the plans , specifications and construction
documents were appropriate and recommended same for approval by
the Board of Directors ; and
WHEREAS , the Board of Directors approved the plans , specifications
and contract documents by Resolution 78-35 at the regularly
called and conducted Board Meeting of June 21, 1978; and
WHEREAS , the District received assurance from Cook Associates,
Engineering Consultants that the 16" diameter pipeline has been
installed in substantial compliance with the approved plans and
that continuous inspection by Cook Associates staff members was
accomplished; and
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Recorded at the request of '� f
---------------------------------------- ------------ ----- -- ----•-------------
Return to
-------------------------------------------------------------------------------------
--------------------------------------------------------------- --------------- -
--------------------------------------------------------------------------------- ------
Documentary transfer tax$.................. .......
Cl Computed on full value of property conveyed, or
❑ Computed on full value less liens and encumbrances
remaining thereon at time of sale.
Signature of declarant or agent determining tax—firm name
Quit Clatm 71131eeb
DART INDUSTRIES INC_, a Delaware corporation
do es quit claim unto TRUCKEE PUBLIC UTILITY DISTRICT, a Body Politic
all that real property situate in the County of Nevada
State of California,described as follows:
Any and all right, title and interest in and to that certain easement as
described in the Easement Right of Way Grant dated June 10, 1968, recorded
June 11, 1968, in Book 448, Page 509, Official Records, executed by Richard
Joseph to Truckee Public Utility District, a Body Politic together with
any and all rights , title and interest in .the 16" diameter water
transmission main and all related appurtenances , also known as
Dart's Transmission Main Phase I, as constructed by T & S
Construction Company. The Notice Of Completion for the subject
transmission main having been recorded 8-25-78.
DART INDUSTRIES, INC_, a Delaware corporatio2
Dated 19
BY-
BY-
STATE OF CALIFORNIA
--•-------------------------County of---------•--•----------------------------
ss.
On•-------------- -........19.......-,before me,--.......----
a Notary Public,in and for said State,personally appeared------------------------------------------------
------------------------------------------------ nd--------••-•---------------------------------------------------•--....known to me
to be the..............President and the................Secretary of the corporation that executed
the within instrument, and also known to me to be the persons who executed it on
behalf of such corporation, and acknowledged to me that such corporation executed
the same,and further acknowledged to me that such corporation executed the within
instrument pursuant to its by-taws or a resolution of its Board of Directors.
Aly commission expires-----•-----------------_------- •------•----------------------------------------
Notary Public
101
N E I L E.FALC-E,", LAW OFFICES OF
MARV COUNSEL
IN D.MCAT GN STEIN
MARL L.MONHEIM ER STEIN HAR T, GOLDBER G, FEIGENBAUM 86 LADAR JOHN J.GOLDBERG
BRUCE M.COWAN B.J.FEIGENBAUM
ANDRE L.de BAUBIG NY ONE POST STREET SAMUEL A.LADAR
MICHAEL R.MARRON JOHN H.STEINHART
E.LEWIS REID SAN FRANCISCO,CALIFORNIA 04IO4 MARVIN T.TEPPERMAN
JOHN W.S.EEHY,JR- J/
JAMES T.FOUSEKIS
ROB ERT E.MERRITT,JR.
GEORGE H.GNOS S,JR_ TELEPHONE C416) 392•'6010 TELECO PIER
GOV M.G RUNSCHLAG (4I5)956-5363
JOHN CURRAN LADD T
RI CHARD_I FRICK ELEX
RO NALD J.GI LSO. 3-4713
ROBERT T.FRIES September 16, 1978
JOHN A.PIERCE
DAVID F.BOYLE
�^ MICHAEL E '
J OHN V"
-�
DONALD LE E.KELLEY.JR. 1(
DAVID NSK J ROMAI }
ELIOT S..JUSELIRER
EVELYN A.LEWIS f!!! S
JOHN W.HANLEY,JR.
DONALD B.SHAW 1
ROBERT F.KNOX l
JAM ES R.BUSSELLE
SUSAN BARTLETT FOOTE
Board of Directors
Truckee-Donner Public
Utility District
c/o Mr. Milton Seymour, Manager
P.O. Box 309
Truckee, California 95723
Re: Threat Posed by Prosser Well
Dear Board Members:
You asked our opinion with respect to certain
questions raised relative to the existence of the Prosser
Well and the potential threat it poses to the water supply
of the Truckee Donner Public Utility District (the "District" ) .
The. following sets forth a summary of the problem, the facts
surrounding the construction and use of the well and our
findings and recommendations as to available courses of
action.
I . THE PROBLEM
The Prosser Well is located on privately owned
land in the Martis Valley aquifer approximately 60 feet
easterly from a high pressure petroleum pipeline constructed
by Southern Pacific Pipeline, Inc. The easement for the
pipeline was recorded in August, 1956, and it is assumed
that the pipeline was constructed around that time, some
fourteen (14) years before the Well was drilled.
The District is concerned that should the pipeline
be ruptured by seismic activity or otherwise, there is a
danger that petroleum from the line would flow into the
Prosser Well and then into the Martis Valley aquifer and
possibly to other underground water sources, contaminating
the water supply of the District. The District Engineer,
Dan Cook, has expressed his opinion that such potential
danger is presented because of the proximity .of the Well to
STEINIIART, GoLDBERG, FEIGErBAum 8t LADAR
Mr. Milton Seymour
September 16, 1978
Page Two
the pipeline, the depth of the Well, the nature of the
contents of the pipeline, the pressure under which the
contents are carried and the history of seismic activity in
the area. The danger would not exist if the Well and the
pipeline were sufficiently far apart.
We understand (and for the purposes of our study
and recommendations have assumed) that if the Prosser Well
is destroyed by filling it with cement or a similar imper-
vious material, the danger posed by the present location of
the Well would be virtually eliminated. However, the present
owners of the property upon which the Well is located, the
Paynes, have granted the use of the well to an adjoining
landowner who has recently installed pumping facilities and
pipelines in order to make private use of the Well's water
supply for his own property. In view of this, it is expected
that the Paynes will object to destruction of the Prosser
Well.
II . FACTS REGARDING CONSTRUCTION AND USE OF THE WELL
The following information regarding the location,
construction, and use of the Well was gathered from Board
minutes, reports, correspondence and interviews with various
parties.
A. Historical Sequence of Events
Around 1970 Fibreboard Corporation ( "Fibreboard" )
was considering future development of property which it
owned in the Martis Valley aquifer area. George Cattan, the
Manager of the District at that time, advises us that around
the same time it was known that an additional water supply
was needed to service a nearby development, Prosser LakeView
Estates . With these water needs in mind, Mr. Cattan obtained
a $15,000 "gift" from LakeWorld Development Corporation
( "LakeWorld" ) for the construction of a well on the Fibreboard
property as part of the 1970 Agreement between LakeWorld and
the District relating to the then proposed Tahoe Donner
Development. Mr. Cattan then visited the Fireboard property
to select a potential well site. Mr. Cattan stated that he
selected the site for the Prosser Well because it was near a
successful private well somewhere to the north and because
he wanted to avoid drilling a dry well.
Mr. Cattan informed Fibreboard of the proposed
location, and Fibreboard, still anticipating a development
some years in the future, executed a document dated May 26,
STEINIIART, GoiDBERG, FEIGENBAUM LAC LADAR
Mr. Milton Seymour
September 16, 1978
Page Three
1970 (sometimes referred to herein as the "Fibreboard Grant" )
which granted certain easements to the District, relating to
r the site selected by Mr. Cat-tan. Specifically, the Fibreboard
Grant provided an easement for:
"installation, maintenance, and operation of a
water well or wells, together with such structures,
tanks or pumps, or related facilities as may be
necessary for the preservation, protection, and
operation of the same, including the right to
extract underground water thereby. . . "
The Fibreboard Grant also gave the District a temporary
right-of-way for ingress and egress at the proposed well-
site. ( It was contemplated by the terms of the grant that a
permanent right-of-way would be granted in five years after
the exact parameters of the required amount of road access
had been determined) . The Fibreboard Grant, to be binding
upon the successors and assigns of Fibreboard, also provided
that the rights granted thereby:
"shall be effective as long as said easements and
right-of-way shall be actually used for the purposes
specified and all rights [thereunder] shall revert
to the owner of the land as soon as the said use
thereof shall be abandoned and discontinued for a
r
period of two years or more. "
The Well was drilled by C & M Drilling, Bijou,
California, in June and July, 1970. Upon completion of the
Well it was capped until needed to service the development
contemplated by Fibreboard. Apparently this development
never materialized. Consequently, the Prosser Well has
never been used or connected to the District's water system.
The Fibreboard Grant was never recorded by the
District; the grant was placed in the 1970 minute books of
the District and present Board members and employees of the
District were unaware of its existence until recently.
In late 1977 District Engineer Dan Cook undertook
an investigation to establish the exact location of the
Well. When Mr. Cook visited the property in question and
r�
STMISTUART, GOLDBERG, FEIGERBAUM £x LADAH
Mr. Milton Seymour
September 16, 1978
Page Four
located the Well he observed the high pressure petroleum
pipeline, which he says is highly visible in the near vicinity.
.�-- He became concerned and sought advice from the Department of
Health, Sanitary Engineering Section, as to whether the Well
could be connected to the District system in light of its
proximity to the petroleum line. Lloyd R. Heinzel, Senior
Sanitary Engineer of the Sanitary Engineering Section, in a
letter dated December 9, 1977 to Mr. Cook (a copy of which
is attached as Appendix "A" ) replied that the Department of
Health could not approve the use of the Prosser Well in the
District' s system unless a minimum of 500 feet horizontal
separation existed between the Well and the pipeline. The
letter then states, "If the separation cannot be provided,
Prosser Well should be destroyed in accordance with the
State Water Well Standards to prevent possible contamination
of usable water aquifers. "
Mr. Cook relayed the Department of Health's response
to the Board and proceeded to order a title report to discern
the present property owners of the well-site. The first
title report, dated December 15, 1977, revealed that Fibre-
board was still the owner of the property. However, a subse-
quent title report, dated June 8, 1978, indicates that Mr.
William C. Payne, a married man, now owns the property and
that he acquired it from Fibreboard on March 30, 1978.
Since the Fibreboard Grant was never recorded, neither of
these title reports reflects the existence of the Well or
the District' s easement. However, the 1978 Deed from Fibre-
board to Mr. Payne (of which we obtained a copy from the
Nevada county records ) provides that title to the property
is made subject to "all conditions or matters discernable
from a visual inspection of the said property. "
In light of the discovery of the new ownership of
the property (and still under the assumption that the District
did not have an easement for the Well) , Cook drafted a letter
to Mr. Payne explaining the problem with the location of the
Well and requesting that Mr. Payne execute a Right of Entry
form which Mr. Cook had prepared giving the District permission
to come onto the property and to seal the Well. (A copy of
this letter and the enclosed form of Right of Entry is
attached as Appendix "B" ) _ This letter was sent to Steven
Grumer, the District' s attorney, for review in late June
1978, and shortly thereafter Mr. Cook mailed the letter to
Mr. Payne. Later, Mr. Cook discussed the problem with
Mrs. Payne by telephone and learned that the Paynes had
granted the use of the Well to an adjoining landowner.
�1
STEINIIART, GOLDDERG, FEIGEABALNI Lac LA AR 1
Mr. Milton Seymour
September 16, 1978
Page Five
At a July 17, 1978 meeting of the Board, Mr. Cook
informed the Board that the Paynes were taking the position
.� that they would not consent to the sealing of Prosser Well
unless a replacement well is provided. It should be noted
however, that at that time the Paynes had been informed that
the District did not have an easement relating to the Well.
It was not until August 1, 1978 that representatives of our
office discovered the existence of the easement while re-
viewing the District's Board minutes.
B. Department of Health Requirements.
Shortly after our discovery of the easement we
contacted Mr. Heinzel at the Department of Health to learn
more about the legal basis of that Department's objections
to the Well . Under Sections 4010-4035 of the California
Health and Safety Code (referred to as the California Safe
Drinking Water Law) the Department of Health is given
regulatory power over sources of domestic water supply
provided by public utilties and other public entities.
Under this Law every public utility must obtain a permit
from the Department of Health to supply water from any
source. After such an initial permit is granted, any modifi-
cation, addition or change in a utility' s sources of supply,
distribution system or treatment of water which does not
meet minimum State requirements for design and construction
is subject to review and prior approval by the Department.
r See the regulations under this Law at 17 Cal. Admin. Code §
7050 et sect. The Safe Drinking Water Law, which has been in
effect since before 1947, does not give the Department of
Health any powers to regulate the use of water supply facili-
ties by private parties for private purposes.
In reviewing applications for permits under that
Law, the Department of Health has the power to investigate
proposed water sources, and the plans for construction and
location of such sources, and to order any alteration in
use, construction or location to insure good quality water
for domestic purposes. The regulations under the Law
simply provide that all facilities shall be constructed so
that "they are free of structural and sanitary hazards. "
This requirement is the basis for the Department of Health's
letter to the District to the effect that the Prosser Well
can not be connected to the District' s existing system.
.r-1
STEINHART. GoLDDERG, FEIGEND-s-um & LADAR
Mr. Milton Seymour
September 16, 1978
Page Six
Mr. Heinzel at the Department of Health informs us
that enforcement of these regulations is difficult since,
for example, they do not incorporate specific standards.
However, some general guidelines issued by the Department of
Water Resources (e.g- Bulletin #74) do set forth more specific
standards which the Department of Health uses on an informal
basis in administering the provisions of the Safe Drinking
Water Law. These general guidelines provide for a minimum
separation of 500 feet between petroleum pipelines and
wells. Some counties have adopted these guidelines giving
them the force of law governing private as well as public
entities over and above their use by the Department of
Health for regulation of public entities. Nevada County has
not adopted these guidelines.
The Law provides that every person who knowingly
violates its provisions is guilty of a misdemeanor. Any
such violation is specifically defined as a "public nuisance"
which may be abated by appropriate authorities. Also existence
of any violation beyond the time stipulated for compliance,
constitutes a separate and distinct offense. See Health and
Safety Code §4032-4034.
The December 9, 1977 letter from the Department of
Health to Mr. Cook (Appendix "A" ) could be viewed as notice
of a violation under the Safe Drinking Water Law. However,
in view of the fact that the Well has never been used by the
District or made a part of the District' s system and the
passage of time since it was drilled, we do not believe
there is a danger that the Department will charge the District
with violation of the Law_ Nevertheless, the existence of
this Law and the regulations and guidelines thereunder,
together with the letter of December 9, 1977 from the Depart-
ment, may provide support for a decision by the District to
destroy the Prosser Well.
III . POSSIBLE LEGAL BASES FOR DESTROYING THE WELL
It is our understanding that the District is
prohibited from utilizing the Prosser Well for its own
purposes; that it would not choose to utilize the Well in
any event; and that since it believes, based upon Mr. Cook' s
opinion, that the continued existence of the Well in proximity
to the operating petroleum pipeline provides a means whereby
its entire water system could be destroyed, it considers
destruction of the Well mandatory. Moreover, because of the
magnitude of the threat posed by the continued existence of
STEINIIART, GOLDBERG, FEIGENBAUM & LADAR
Mr. Milton Seymour
September 16, 1978
Page Seven
the Well, it is felt that the Well should be destroyed as
soon as possible.
However, since the Well exists on private property
and is viewed as a valuable asset, action to destroy the
Well, without adequate prior legal safeguards, would probably
subject the District to litigation. Such litigation would
possibly seek first, to prevent entrance and/or destruction
of the water source and upon destruction, would seek damages
for loss of the Well.
Thus steps should be taken to accomplish the
District' s purposes as soon as possible while reducing the
Districts possibility of exposure to damages. With this
objective in mind we have studied the legal implications of
a number of approaches to the problem. This has included a
study of the effect and continued vitality of the Fibreboard
Grant, the doctrines of eminent domain and nuisance as they
might apply so as to provide the District with a basis for
legally destroying the well, and the procedures available to
the District to seek assistance from other agencies in
destroying the well . The following is a summary of our
investigation of these areas:
A. The Fibreboard Grant
The District could take the position that the
Fibreboard Grant is still operative and that the District
still has control of the Well and the right to destroy it.
However, there are several problems inherent in such approach:
1. The easement was never recorded. Under Califor-
nia law the Paynes are not bound by the easement unless they
had "actual" or "constructive" notice of it when the property
was purchased. Recordation of the easement would have
constituted actual notice but since the easement was not
recorded the District must argue that the Paynes had "construc-
tive" notice. Generally all that is required to prove
constructive notice is that the Paynes had knowledge of
certain facts which would put them to a reasonable inquiry
as to the interest of the District in the Well. The 1978
Fibreboard deed to the Paynes specifically excepts conditions
which are discernible from a visual inspection of the property_
We understand that the Well is clearly visible and that it
is common knowledge in the area that the Well was owned by
the District. These facts provide a basis for arguing that
the Paynes had constructive notice of the Well and the
District' s interest therein. Debate over this issue could
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Y�
STEINIIART, GOLDBERG, FEIGENBAUM & LAD AR
Mr. Milton Seymour
September 16, 1978
Page Nine
granted to the adjoining property owner are inconsistent and
in conflict with the District' s rights in the Well. The
District could also argue that the facilities and structures
comprising the Well are the District' s property and that no
one else has a right to use this property until such time as
the District actually abandons the well. Still, this issue
is another ambiguous area which may be the subject of debate
with the Paynes.
Given the above problems reliance solely on the
easement as a basis for proceeding to destroy the Well poses
more problems than it solves. The issues relating to the
easement are not easily resolved or answered. The District
could initiate the process of resolving these issues by
bringing a quiet title action or a declaratory judgment
proceeding in Superior Court. This could involve prolonged
litigation between the Paynes and the District during which
time the Well would continue to exist. Thus this course of
action is not recommended.
B. Eminent Domain Proceedings
California Public Utilities Code Section 16404
gives Public Utility Districts the right of eminent domain
to take any property necessary or convenient to the exercise
of its powers. Thus the District could consider condemning
the property for public use pursuant to eminent domain
proceedings. There are specific procedures which must be
followed if this route is pursued. One of the primary
rights given to condemnees in eminent domain proceedings is
the right to be compensated for the property taken. If the
District can establish that the Well still belongs to it the
compensation to which the Paynes would be entitled would be
minimal . Otherwise, California Civil Code Section 1263 .310
provides that the compensation awarded must be the "fair
market value of the property taken" or if market value
cannot be determined then another method of valuation which
is just and equitable must be used. If the property taken
is part of a larger parcel (as is the case here) compensation
must be paid for the injury or reduction in value of the
remainder of the land. Since the Prosser Well will no doubt
be claimed by the Paynes to be of great economic significance,
substantial compensation to the Paynes could be awarded. If
the District is able to prove that the Well is a potential
nuisance subject to abatement proceedings the compensation
awarded under eminent domain proceedings should be signifi-
cantly reduced, however.
STRINII ART, GOLDBERG, FEI0L'NBAU-4 8c LADAR
Mr. Milton Seymour
September 16, 1978
Page Ten
It is our understanding that it is possible that
another well in the Martis valley aquifer area (located a
sufficient distance from the pipeline) may be needed in the
near future to serve the future needs of the District. If
`y this is true, the District could consider drilling such a
well and if feasible could offer the Paynes ' and their
adjoining landowner certain rights to use the water from
this well as compensation for destruction of the Prosser
Well. The feasibility of this solution will depend upon the
cost of drilling a new well, the funds which the District
has to construct such a well, and the physical limitations
and cost effectiveness attendant to working out such an
arrangement with the Paynes.
Since compensation is a necessary element of
eminent domain proceedings and since such proceedings can be
protracted, we do not view this procedure as one to be
followed.
C. Public Nuisance.
The most attractive of the possible approachs
appears to be to treat the well as a public nuisance under
Civil Code Section 3480 and to use the District' s police
power to abate the nuisance under Civil Code Section 3494.
A nuisance is defined in Section 3479 of the California
Civil Code as "anything which is injurious to health, or is
�^ indecent or offensive to the senses. " A public nuisance is
"one which affects at the same time an entire community or
neighborhood, or any considerable number of persons.
The advantage of nuisance proceedings is that
normally the Paynes would not be specifically entitled to
compensation for destruction of the Well unless they could
persuade a trier of fact that the Well was not a nuisance or
unless in destroying the Well the District ni advertently
damaged the Payne property in some other way (in which case
the damage would have to be remedied or the Paynes would be
entitled to compensation for the damage) .
As noted above the Safe Drinking Water Law specifi-
cally provides that violations of the Law are "public nuisances"
and this could be of use to the District in proving the Well
to be a nuisance in an action to abate the nuisance.
The available remedies against a public nuisance
are: 1) criminal proceedings; 2 ) a civil action against the
party maintaining the nuisance to seek an injunction and
021
STEINIIIIRT, GGLDBERG, FEIGENBAum & LADAR
Mr. Milton Seymour
September 16, 1978
Page Eleven
abatement of the nuisance; and 3) self-help abatement. The
latter two remedies are most appropriate to this situation
and the differences between the two remedies are explained
below_
1. Civil Action.
Procedurally this involves filing suit against the
Paynes to seek a prior declaration from a Court that the
existence of the Well is actually a public nuisance and that
the nuisance should be abated, i.e. , eliminated, by sealing
the Well. If a Court makes such determination the party
bringing suit can proceed to seal the Well without fear that
it will be sued for trespass or damages for such action.
Normally the party sued and charged with maintaining the
nuisance will be charged with the costs of abating it.
However, here, since the District is responsible for the
placement of the Well, this expense will probably be imposed
upon the District.
In making its determination as to whether the Well
constitutes a nuisance which should be abated the Court will
consider factors such as (i) the fact that the District is
responsible for the creation of the nuisance (ii) the economic
loss to the Paynes if the Well were destroyed; (iii) whether
the danger presented by the Well can be eliminated or decreased
by some other means which would not involve the destruction
of the Well, and (iv) the imminency and scope of the risk to
the District water system. As to this latter point there is
sure to be conflicting expert testimony presented by engineers
hired by the Paynes as to whether the risks and dangers
expressed by Mr. Cook have a sound basis.
The District can commence a civil action in abate-
ment on its own motion. Alternatively, California Code of
Civil Procedure Section 731 sets forth a procedure by which
the action could be brought by the Nevada County District
Attorney or the Truckee City Attorney. This section provides
that if the Board of Supervisors of the County or the City
Counsel of Truckee so directs then the District Attorney or
the City Attorney, respectively, must commence an action to
abate the nuisance.
In light of this the District can consider request-
ing the Nevada County Board of Supervisors or the Truckee
City Counsel to authorize commencement of such an action
against the Paynes. However, a representative of the California
Attorney General ' s office has pointed out that although this
STEINIIART, GOLDDERG, FEIGENBAUNI & T-A AD R '��
Mr. Milton Seymour
September 16, 1978
Page Twelve
section appears to be mandatory, as a practical matter, a
District Attorney or City Counsel probably would not commence
r, such an action because of workload priorities, unless the
risk of damage was imminent.
Moreover, as is true with any litigation, it is
time consuming and the outcome is never guaranteed.
2. Self-Help Abatement.
Instead of commencing an action seeking a prior
court order sanctioning the abatement of a nuisance, a
public entity such as the District can proceed to abate the
nuisance without such prior sanction_ Generally, the self-
help route should not be pursued unless one is quite sure of
the necessity for such an action and that a Court would
agree that a nuisance existed. If this is not the case,
then the self-help abater will be liable to the property
owner for damages for destruction of the property.
We reiterate that Mr. Cook' s opinion will be
crucial to the question of whether the Prosser Well constitutes
a nuisance.
Even where an entity feels strongly that a given
situation is a nuisance which should be abated by self-help
certain procedures must be followed. Unless there is an
emergency, the entity must give all interested parties
notice of the intended action and an opportunity, usually at
a set hearing time, to present objections and opposing
testimony. The time period involved in providing for such a
notice and a hearing can be substantially less than that
required to bring a prior civil action to resolve the matter.
We investigated the possibility of persuading
another agency with jurisdiction over this matter to assume
responsibility for instituting one of the above types of
abatement proceedings. We have already discussed the possibi-
lity of requesting that the District Attorney of Nevada
County or the City Attorney for Truckee be instructed to
commence a civil action to seek an order requiring abatement
of the nuisance. Other agencies with which we discussed
this problem were the Department of Health and the Lahontan
Regional Water Quality Control Board.
The Department of Health. The Department of
Health has jurisdiction over this type of matter under two
STEINIIART, GOLDBERG, FEIGENDAUM 8e RADAR �33
Mr. Milton Seymour
September 16, 1978
Page Thirteen
different statutory schemes: (i) the provisions of the
California Safe Drinking Water Law discussed above which are
not applicable to private uses; and (ii) the very broad
general powers given to it to examine and prevent the pollution
of sources of public domestic water under Health & Safety
Code Sections 203-207. The latter provisions do not appear
to distinguish between private and public uses . Under these
provisions, the Department is given specific power "to
enjoin and abate nuisances dangerous to health" , either by
the commencement of a civil action or by self-help abatement.
See Health & Safety Code Sections 205(b) and 206.
When we inquired as to whether the Department
would consider assuming the responsibility for abatement in
this case, the Department representative stated that since
the specific standards regarding separation of wells and
petroleum lines were merely guidelines rather than specifi-
cally enforceable laws, the Department would be hesitant to
act on the matter. We were then referred to the Lahontan
Regional Water Quality Control Board. Apparently, the
Department will not independently take action under these
circumstances.
Lahontan Regional Water Quality Control Board.
The Lahontan Board is specifically charged under the California
Porter-Cologne Act (Cal. Water Code §§1300 et seq. ) with the
control of pollution and contamination of water from "waste"
substances. Arguably, if the petroleum pipeline were to
rupture, the resulting flow of oil into the water system
would be "waste" within the meaning of this Act. When we
explained the Prosser Well problem to a representative of
that office, David Atonnucci, he expressed his appreciation
of the District' s concern and the seriousness of the problem
and the need for some type of action. However, when we
inquired as to the possibility of the Lahontan Board initiating
abatement proceeding pursuant to its cease and desist powers
under Water Code Section 13304 (which specifically gives the
Board authority to take appropriate actions against a
"threatened" pollution or nuisance) , we were told that the
threatened danger was "not imminent enough" for the Lahontan
Board to take action on its own initiative. Mr. Atonucci
stated however, that the Lahontan Board would certainly be
willing to write a letter supporting the District' s position
that the Prosser Well should be destroyed.
Despite the hesitancy of the Department of Health
and the Lahontan Board to become directly involved in this
matter, it should be remembered that the inquiries to these
STEINHART, GOLDBERG, FEIGETNMAUM & LADAR
Mr. Milton Seymour
September 16, 1978
Page Fourteen
agencies were made on an informal basis. The District Board
might consider making a formal request for an investigation
�..� of the problem by one or both of these agencies with the
view of obtaining a formal decision as to the action which
these agencies choose to take. The Porter-Cologne Act,
which governs the Lahontan Board, specifically contemplates
such formal requests and provides for a procedure by which
the District could request review of a negative decision by
the State Water Resources Control Board.
Of course, if the District were to consider pursuing
this avenue there would be an additional delay in resolving
the Prosser Well problem while these agencies investigate
the matter and then make a determination.
IV. POTENTIAL LIABILITY OF THE DISTRICT
If the Board takes no action to destroy the Prosser
Well or delays such action and the pipeline ruptures and
results in the contamination of the District' s water supply,
the District could arguably be liable for substantial damages,
for maintenance of a nuisance. Every citizen of the District
affected by such a disaster might have a claim against the
District for such things as dimunition in the value of their
property, economic loss of business, and consequential
damages. There is authority for the proposition that the
District does not have the shield of governmental immunity
to protect it from liability in the nuisance area. Liability
on the part of the District would probably derive from a
finding that the District had control of the Well and thus
maintained the nuisance. This of course relates to whether
the District still has rights under the Fibreboard Grant,
discussed above. Therefore, if the District decides to take
no action itself, at the least it should formally acknowledge
its abandonment of the Well and any claim of right under the
easement and give the Paynes formal notice that they are
maintaining a nuisance which should be abated. However, if
the Paynes then refuse to seal the Well as a result of such
notice, the District may still be liable as a public entity
for failing to take some action itself to see that the
nuisance is abated. This action might take the form of
requesting another agency to take action to abate the nuisance.
As discussed above the results under such a procedure are
questionable.
If on the contrary, the District decides to take
action on its own relying solely upon the Fibreboard Grant
as still being operative and as giving it the right to enter
3�
STEINHART, GOLDnERG, FEIGENBAum LvG LA An
Mr. Milton Seymour
September 16, 1978
Page Fifteen
and destroy the Well, it may be liable for damages for
trespassing and for destruction of the Well if a Court
decides that the easement did not give the District such
rights. In defense, the District can argue that the legal
doctrine of public nuisance as well as the existence of the
easement gives the District the right to destroy the Well.
However, to preserve the efficacy of this defense the District
must follow the procedures required for self-abatement of a
nuisance discussed above.
V. RECOMMENDED COURSE OF ACTION
After consideration of all of the above we are
prepared to present to the Board a recommended course of
action. We note, however, that the discussion and our
recommendations are based upon our assumption that Mr.
Cook's opinion as to the substantial threat of irremedial
damage which the Well poses would prevail as against arguments
to the contrary if presented to an objective trier of fact.
If such opinion does not have that force, then the basis for
the District' s desired action is weakened, if not vitiated
entirely. To the extent that the basis is weakened, any
action by the Board to destroy the Well will be more subject
to successful attack by litigation.
A. Documenting the Basis for Concern
Given the importance of the engineering concerns
involved with respect to this matter, we believe the District
Engineer should be directed to immediately prepare a formal
report to document his analysis of the situation and his
conclusions with respect to the threat posed and the damage
potential as related to the District water supply. As noted
earlier, the exposure the District runs is generally of
three types: (1) private litigation for trespass and destruc-
tion of the well and consequential damage to the property
owner; (2 ) the practical damage of total destruction of the
water supply; and (3 ) general litigation damage which would
be a concomitant of destruction of the water supply.
s--
STEINUART. GOLDDERO, FEIGEYBALTII & LA.DAR
Mr. Milton Seymour
September 16, 1978
Page Sixteen
Mr. Cook' s report should also discuss the feasibility
of taking some other less drastic action than destruction of
the Well which can substantially reduce the hazard presented
by the Well, with his evaluation as to the effectiveness of
such action. For example, it has been suggested that an
inquiry should be made to Southern Pacific to discern what,
if any, safety facilities presently exist or can be installed
on the pipeline to prevent or reduce seepage from the pipeline
in the event of its rupture. If such safety equipment
exists Southern Pacific might reasonably request that the
District pay the cost of the installation of the equipment
since the Pipeline was constructed before the Well and the
District thus arguably created the nuisance.
B. Initiating Proceedings to Resolve the
Problem.
Assuming that the District Engineer will continue
to adhere to his present opinion as to the scope and urgency
of the danger presented by the Well, time is of the essence
(particularly in view of the continuing seismic activity
throughout the State) . We recommend that the District
consider taking the following steps to commence self-help
abatement proceedings:
1. As stated above, a detailed formal report
should be obtained from Dan Cook. It should contain his
conclusion that the District must, for the protection of its
existing water supply, destroy the Prosser Well.
2 . Upon receipt of such report (or immediately,
acting upon prior letters and communications from Mr. Cook)
the Board should meet and by resolution: (i) recognize the
preliminary determination that the Prosser Well constitutes
a public nuisance; (ii) set a hearing date at which sworn
testimony as to all objections to such determination will be
tell
STEINHART, GOLDBERO, FEIGENBAUM 8C TA AR
Mr. Milton Seymour
September 16, 1978
Page Seventeen
�1
heard and Mr. Cook' s report considered; and (Iii) order that
proper written notice of such determination and hearing date
be given immediately to the Paynes and interested parties
and that a similar notice be posted at the well-site (if
possible) and at the District' s offices. The hearing date
should be set a reasonable length of time after the date of
the resolution-
3 - The hearing should be held, and Mr. Cook' s
report considered along with any opposing reports, and
testimony and other evidence and a formal finding and determi-
nation should be made as to whether the Prosser Well is in
fact a nuisance which should be abated. Such determination
should be made on the basis of competent sworn testimony and
evidence. At the hearing the Paynes and the adjoining
landowners have the right to be represented by counsel and
the right to have their own and any other expert' s opinion
considered.
Upon final determination of the issue, the Board
should also consider enacting a general Ordinance providing
that no other well can be built within 500 feet (or such
,.� other separation as may be recommended by Mr. Cook) of any
petroleum pipeline within the District and that violation of
the Ordinance shall constitute a public nuisance.
Upon determination of the issue, notice of the
findings and conclusions (and the Ordinance, if enacted)
should be given to the parties, and a reasonable period of
time specified before taking action to abate the nuisance.
During this period it is possible that the Paynes will sue
the District to enjoin it from destroying the Well. If this
occurs the District will be forestalled from destroying the
Well until the court makes a determination of whether there
is a nuisance. Such determination could be expected in a
relatively short period of time, given the expected position
of the District. If the Paynes lose this suit the District
can proceed to destroy the Well. If the District should be
enjoined by the court then at least it should be relieved
from liability for damages for failure to abate the nuisance.
The advantage of this procedure is that it forces the Paynes
to initiate litigation.
STEI-TII.IRT, Gor DDERG, FEIGE:VBAUM SC LADAR
Mr. Milton Seymour
September 16, 1978
Page Eighteen
* *
The above constitutes the results of our study,
consideration and research on the matter and our opinion as
to the recommended course of action for the District, recog-
nizing that it is all based upon certain assumptions and
that a great deal of weight is placed upon the strength of
Mr. cook' s opinion regarding the scope and nature of the
danger posed by the Prosser Well. The Board should consider
all of the options or avenues presented in this letter, and
the risks attendant to each before deciding whether to take
the action we recommend. The ultimate decision must be that
of the Board. In this regard we invite you to pose any
questions and to discuss with us any of the points raised in
this letter after you have had a chance to review and study
this report.
Ver1y/ tr y yours,
Michael R. Marron
• Sf ATE OF CALIFORNiA—HEALTH AND Y/ELFAFK .,ICY EDMUND G.BROWN JR., Governs �
D"EP IRTPAENT OF HEALTH l '
2135 AIGARD AVENUE, ROOM 14 CC::: ASSOCIATES
REDOING, CA_ 96001 R E C E I V E D Jam'
(91G) 246-6345 -
CEC 1 z '77
December 9, 1977
Cook Associates M
2060 Park Avenue
Oroville, California 95965
Attention: Mr. Dan J. Cook
In accordance with your request, I have reviewed the existing
separation between Truckee-Donner P.U.D. 's Prosser Well and the
Southern Pacific Pipeline Company's high pressure petroleum
product pipeline. The 60-foot separation is considerably less
than the 500-foot separation recommended in the enclosed stan-
dards.
We cannot approve the use of Prosser tell in the Truckee water
system unless adequate separation is provided between the well
and the petroleum transmission main. If separation cannot be
provided, Prosser Well should be destroyed in accordance with
the State Water Well Standards to prevent possible contamination
of usable water aquifiers.
49
' v
Lloyd R. Heinzel
Senior Sanitary Engineer
Sanitary Engineering Section
LRH:vs
cc: Nevada Co. Health Dept.
Encl .
APPENDIX A
141
1
j
,
C o o ASSOCIATES ENGINEERING CONSULTANTS
2060 PARK AV£NU£
OROVILLE. CALIFORNIA 93965
PFi ONE (Die) 533.6457
June 21, 1978
i
William C. Payne
201 Greenwood Drive
Woodland, California 95695
r
Dear Mr. Payne:
I am writing on behalf of my client, the Truckee Donner Public
Utility District. The District is the purveyor of dater and
power in the Truckee community. We were told by Inter-County
Title Company that you have recently purchased a major portion
of Section 1, Township 17 North, Range 16 East, M.D.M. , in
Truckee, California, from the Fibreboard Corporation.
Several years ago there was a development proposed lr Section 1
known as Timber Country that was to be a companion project to
the Northstar project in Placer County. There was also a proposal
" several years ago to construct a single family residential
development in Section l that was known as Caravan Estates.
Unfortunately, no one that was connected with the District at
the time of these proposals remains in the employ of the Truckee
Donner Public Utility District at this time. However, we do
know that in the early 1970' s a well was constructed, presumably
to provide a water supply for one or both of the above noted
proposed projects . Possibly the well was to supply water for
other areas of the community as well. The exact intended purpose
of the well is not known and the above possible purposes are
conjecture on my part.
What is known about the well and its physical location is that
it is unsuitable for a public eater supply. Unfortunately, the
person or persons that selected the well site failed to note the
high pressure petroleum products line which passes 65 feet to the
APPENDIX B
oay.l.cc.•':c r.
f
William Payne
Woodland, California ,
June 21, 1978
Page 2.
west of the well. The petroleum product line is obvious to all
persons that have visited the site and I am sure that you are
i^ aware of its location of your property. The State Health require-
ments specify the minimum horizontal separation from any petroleum
storage facility to a public water supply well at a minimum of
300 feet. There is nat. a specified separation standard for a high
pressure petroleum pipeline and a public water source, however,
the indications from the State Health Department have stated that
the horizontal separation should be at least 1000 feet. Obviously
the separation does not exist between the Prosser Well and the
Southern Pacific Pipeline Corporation' s high pressure petroleum
product line. It is therefore impossible to use the well as a
source of public water supply.
Even more important is the fact that the potential for petroleum
products reaching the groundwater aquifer are present due to the
type of construction and the physical location of the two facilities
in question. The Martis Valley aquifer is the major water source
for the entire Truckee Martis Valley area. The protection of the
aquifer is uppermost in the minds of the Board of Directors of the
Truckee Donner Public Utility District.
Another unfortunate occurrence that took place with the siting
of the Prosser Well. The Prosser Well is located on your property
near your north property line as shown on the attached sketch.
The District, so far as I have been able to determine, does not
have a rif;tit and/or an easement for the construction, operation,
repair and maintenance of the Prosser Well. The District wants
to seal off the well so as to prevent the possible contamination
of the Martis Valley aquifer. The District warts to enter onto
your property with your permission, in order to accomplish the
sealing of the well. Enclosed for your consideration is a Right
of Entry form that I would like for you to review, and if you
find appropriate, execute and return to our office for further
handling.
The work of sealing the well will be accomplished upon receipt
of the Right of Entry. The District now has a contractor working
on other water sources of supply facilities and it is the intention
of the District to seal the well by change order under the existing
construction contract with C . W. Roen Construction Company.
r
� 1
William Payne
Woodland, California
June 21, 1978
Page 3.
Should you have any questions regarding this matter, please do
�^ not hesitate to call either myself or Milton Seymour, General
Manager of the Truckee Donner Public Utility District at
916-587-3896.
Very truly yours ,
COOK ASSOCIATES
Dan J. Cook
Civil Engineer
DJC/cab
Enclosure
cc: Truckee Donner P.U.D.
Steven Grumer_ Es q.
RIGHT OF ENTRY
Truckee Donner Public Utility District
P.O. Box 309
Truckee, California 95734
Re: Abandonment and Sealing of the Prosser Well
Directors:
Permission is hereby granted to enter upon our land more
particularly described as follows:
All that real property situate in the County of Nevada,
State of California, described as follows:
All of Section 1, Township 17 North, Range 16 East, M.D.M.
EXCEPTING THEREFROM: All that portion of said Section 1,
lying southeasterly of the northwestern perimeter line of
the tract of land first described in the deed from
Fibreboard Paper Products Corporation, also known as
Fibreboard Products , Inc. , a Delaware corporation, to
State of California, dated January 8, 1958, recorded
March 6, 1958, in Book 243, page 266, Official Records
of Nevada County, State of California.
Permission to enter upon the said parcel of land is granted for
i^ the purpose of sealing And abandoning the Prosser Well for the
protection of the Martis Valley aquifer and accomplishing all
incidents thereto.
It is understood that the contractor who will perform said work
under this agreement is liable for any damage to the premises
caused by his negligence. It is also understood that the
contractor is required to restore the property in accordance
with the Contract Documents. It is further understood that
the governing body has required the contractor to obtain and
to keep in full force and effect adequate insurance to protect
all persons affected by the contractor' s operation.
This permission is granted wholly for the purpose of facilitating
the sealing and abandoning of the Prosser Well for the protection
of the Martis Valley aquifer, and accomplishing all necessary
incidents thereto, and shall continue in effect until completion
of said installation.
Very truly yours ,
William C . Payne, A Married Man
201 Greenwood Dr. Woodland Ca.
Signature
Date: