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Final Tahoe and Martis Valley Municipal Service Review (pdf)

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Draft Final Municipal Service Review North Tahoe and Martis Valley MSR Placer LAFCo Meeting Date: August 8, 2018 Resolution No. tbd Draft Final Municipal Service Review North Lake Tahoe and Martis Valley Prepared for: Placer LAFCo 110 Maple Street Auburn, CA 95603 Prepared by: Meeting Date: August 8, 2018 Table of Contents Chapter Title Page Number 1 Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1 2 Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . 2-1 3 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 4 Summary of Mutual Water Companies . . . . . . . . . . . . . . . . . . 4-1 5 Regulations For Wastewater Systems . . . . . . . . . . . . . . . . . . . . 5-1 6 Alpine Springs County Water District. . . . . . . . . . . . . . . . . . . . . 6-1 7 Donner Summit Public Utility District. . . . . . . . . . . . . . . . . . . . 7-1 8 Mckinney Water District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-1 9 North Tahoe Fire Protection District. . . . . . . . . . . . . . . . . . . . . 9-1 10 North Tahoe Public Utility District. . . . . . . . . . . . . . . . . . . . . .. 10-1 11 Sierra Lakes County Water District . . . . . . . . . . . . . . . . . . . . . . 11-1 12 Squaw Valley Public Services District . . . . . . . . . . . . . . . . . . . . 12-1 13 Tahoe City Cemetery District . . . . . . . . . . . . . . . . . . . . . . . . . 13-1 14 Tahoe City Public Utility District . . . . . . . . . . . . . . . . . . . . . . . 14-1 15 Tahoe Forest Hospital District . . . . . . . . . . . . . . . . . . . . . . . . . 15-1 16 Tahoe Truckee Sanitation Agency . . . . . . . . . . . . . . . . . . . . . . 16-1 17 Talmont Resort Improvement District . . . . . . . . . . . . . . . . . . . . 17-1 18 Truckee Tahoe Airport District . . . . . . . . . . . . . . . . . . . . . . . . 18-1 19 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19-1 20 Comments Received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20-1 21 Glossary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21-1 22 Acknowledgements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-1 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A -1 AP.1: Enhanced Infrastructure Financing Districts AP.2: AB54 – Mutual Water Companies AP.3 CA Dept. of Finance New Population Projections AP.4: Placer County Water Systems AP.5: Demographic Report for Placer County AP.6: Notice of Public Workshop, August 2017 i North Tahoe and Martis Valley MSR Chapter 1 EXECUTIVE SUMMARY This Municipal Service Review (MSR) is consistent with the requirements of the Cortese-Knox- Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56000 et seq.). This is a regional MSR focusing on eastern Placer County and analyzing thirteen service providers including Alpine Springs County Water District, Donner Summit Public Utility District, Mckinney Water District, North Tahoe Fire Protection District, North Tahoe Public Utility District, Sierra Lakes County Water District, Squaw Valley Public Services District, Tahoe City Cemetery District, Tahoe Forest Hospital District, Tahoe City Public Utility District, Tahoe Truckee Sanitation Agency, Talmont Resort Improvement District, and the Truckee Tahoe Airport District. A fourteenth service provider, Northstar Community Services District was described in a separate 2014 MSR on file with Placer LAFCO. Draft Final MSR, August 2018 Executive Summary 1- 1 North Tahoe and Martis Valley MSR 1.1: PUBLIC SERVICES The services considered in this MSR are primarily provided to residents and visitors by special districts. The districts were originally established under a principal act, also known as enabling legislation. Districts are formed with charters allowing them to provide one or more services, within boundaries determined by their Local Agency Formation Commission (LAFCO). Some districts provide only one service, while others provide multiple services. There are 14 such special districts operating in eastern Placer County that are described in Municipal Service Reviews led by Placer LAFCO and 13 of these districts are the subject of this current MSR. The fourteenth district is Northstar CSD which is described in a 2014 MSR on file with Placer LAFCO. Ten public services are generally provided to residents and businesses in eastern Placer County by local government districts/agencies and sometimes by private companies and these services are described below in alphabetical order:  Airport Airport services considered in this review include the maintenance and operation of a public airport. The Truckee Tahoe Airport District is described in Chapter 18.  Cemetery Cemetery services include burials and disposal of cremated remains. The Tahoe City Cemetery District is described in Chapter 13.  Electricity Electricity services include the generation and distribution of electricity within the area. This service is provided almost entirely by a private company called Liberty Utilities, which is not monitored by Placer LAFCO. A public agency, Truckee Donner PUD, currently provides electrical service only to properties in Truckee and eastern Nevada County and is not included in this MSR since Nevada LAFCO is the primary LAFCO for this agency. However, it should be noted that Truckee Donner PUD’s near-term SOI does extend into a small portion of Placer County. NV Energy1 provides electricity only to properties within the state of Nevada and is not covered in this MSR.  Fire Protection and Emergency Services Fire protection and emergency services consist of a variety of different services, including firefighting and fire prevention, emergency medical response, hospital service, ambulance and rescue services. These services are somewhat interrelated in nature and overlap in functional application. Fire protection services generally serve two basic types of landscape: 1) urban and suburban and 2) wildland. This MSR focuses on local agencies that provide fire protection services to urban and suburban areas in the North Tahoe and Martis Valley 1 Details on NV Energy available on-line at: < https://www.nvenergy.com/company/territory.cfm> Draft Final MSR, August 2018 Executive Summary 1- 2 North Tahoe and Martis Valley MSR areas. Wildland areas receive fire management services from their primary property owner/manager which is often the U.S Forest Service with support from CALFIRE. As the future unfolds, landscape FIGURE 1-1: FIRE RISK management experts predict that summer dryness may begin earlier and last longer. Dry climate will facilitate drying of vegetation and this may exacerbate wildfire occurrences. Cal-Adapt, a website with analytical tools sponsored by the California Energy Commission at http://cal-adapt.org/ graphically depicts the potential risk of large wildfires in California as shown in Figure 1-1. Several agencies described in this MSR provide fire protection services including Alpine Springs County Water District, Northstar Community Services District, North Tahoe Fire Protection District, and Squaw Valley Public Services District. Each of the district’s service area is equal to its boundary area. In addition, fire protection services may be provided outside of their specific boundaries via participate in mutual and automatic aid agreements such as the California Fire & Rescue Mutual Aid System. The North Tahoe Fire Protection District (Chapter 9), Northstar Community Services District (separate MSR), and the Squaw Valley Public Services District (Chapter 12) each provide fire protection services in eastern Placer County. Emergency services are provided by paramedics working in local fire departments, private ambulance providers, private air ambulance service operating out of the Truckee Tahoe Airport and the Reno airport, and by the Tahoe Forest Hospital District. These emergency service providers work together to support ensure public safety and health.  Park and Recreation Services Parks and recreation services include the provision and maintenance of parks and recreation services. Placer County provides such services in addition to several districts. The recreational services provided by the United States Forest Service, the California Department of Parks and Recreation, and the Truckee Donner Recreation and Park Draft Final MSR, August 2018 Executive Summary 1- 3 North Tahoe and Martis Valley MSR District are not included within this study. Additionally, the Town of Truckee, Truckee Sanitary District, Truckee Donner Public Utility District, the Tahoe-Truckee Sanitation Agency, Tahoe City Public Utility District, the Squaw Valley Public Services District, and the Northstar Community Services District collaborate to support regional trails. Three districts studied in this MSR directly provide parks and recreation service including Alpine Springs County Water District (Chapter 6), North Tahoe PUD (Chapter 10) and Tahoe City PUD (Chapter 15). Given this plethora of recreation service providers, this MSR generally recommends that LAFCO and its subject districts should study whether additional efficiencies could be gained through structural or organizational changes in recreation service provision.  Roadway Services Roadway services include construction, maintenance, and planning of roads, roadway lighting, and snow removal. Placer County and the State of California primarily provide these services. In eastern Placer County only Northstar Community Services District (separate MSR) provides roadway services. The Talmont Resort Improvement District provides snow removal services (Chapter 17).  Police Protection Police services in eastern Placer County are provided by the Placer County Sheriff’s Department and this Department is not analyzed in this MSR.  Sanitary Sewer Sanitary sewer services include the collection, transmission and treatment of wastewater. Information about the state and federal regulations that apply to the provision of wastewater services within the MSR study area is contained in Chapter 5. Eight districts/agencies provide wastewater services in eastern Placer County including Alpine Springs CWD (Chapter 6), Donner Summit PUD (Chapter 7), Northstar CSD (separate MSR), North Tahoe Public Utility District (Chapter 10), Sierra Lakes County Water District (Chapter 11), Squaw Valley Public Services District (Chapter 12), Tahoe City Public Utility District (Chapter 15), and Tahoe Truckee Sanitation Agency (Chapter 16).  Solid Waste Disposal Solid waste includes the collection and disposal of solid refuse. Although this service is generally performed by a private contractor under franchise to the County of Placer, some districts (such as Northstar CSD and Squaw Valley) have the authority to provide or regulate the service within their boundaries. The only private contractor that operates in the North Tahoe and Martis Valley region is the Tahoe Truckee Sierra Disposal Company. In the Serene Lakes and Donner Summit areas, Tahoe Truckee Sierra Disposal provides garbage collection service. Placer County maintains a Regional Materials Recovery Facility commonly referred to as the “Eastern Regional Landfill Truckee Area”, located on Cabin Creek Road, off of Hwy 89 and north of Squaw Valley. At the Placer Draft Final MSR, August 2018 Executive Summary 1- 4 North Tahoe and Martis Valley MSR County facility, refuse is sorted and recycled to meet California’s mandatory solid waste diversion requirements.  Water Service Water services include the access to, treatment of, and distribution of water for municipal purposes. Water service is dependent on two factors: 1) water supply and 2) water quality. Water supply is derived from two sources: 1) surface water, including Lake Tahoe and various streams and 2) groundwater. There are several groundwater basin included within this MSR study area including the Tahoe Valley Groundwater Basin (USGS, 1997), the Martis Valley Groundwater Basin (Northstar et.al., 2013), and the Olympic Valley Groundwater Basin (Squaw Valley, 2007). These groundwater basins have a patchy geographic distribution and some areas do not have access to groundwater and must therefore rely FIGURE 1-2: GROUNDWATER BASINS 1 upon surface water as a source. The primary issue with water supply in California during the years 2012 to 2015 has been a drought. In response to this drought, the State Water Board, Division of Drinking Water, reviewed community public water systems to ensure each system has a reliable source of water. As a result of this review, the Water Board issued orders to 22 community public water systems and the orders (essentially a moratorium) prohibit new water service connections to residences and businesses in the service area, require metering for all customers, and establish a schedule to develop a reliable alternate source of supply. Although there were systems to the north (Sierra County) and to the south (El Dorado County), there were NO water systems in Nevada County or Placer County that were subject to these orders2. Water supply is related to the amount of precipitation a region receives and in the Tahoe region much of this precipitation is in the form of snow. Climate experts have projected changes in the Truckee area snow pack as shown in Figure 1-3 (next page). The snowpack during the spring season in the Sierra Nevada is expected to be reduced significantly creating potential challenges for water managers, ski resorts and other snow-dependent activities. 2 The full list of water systems subject to orders from the State Water Board is available at: http://www.waterboards.ca.gov/waterrights/water_issues/programs/drought/curtailment_compliance_orders.shtml Draft Final MSR, August 2018 Executive Summary 1- 5 North Tahoe and Martis Valley MSR Water quality is also an on- going concern for all water service providers in California. Although surface water supplies in the north Tahoe region generally yields very high quality water, groundwater supplies often reflect the FIGURE 1-3: SNOWPACK local geologic matrix which contains naturally occurring minerals, such as arsenic, radium, iron, manganese, and other constituents. A 2007 U.S. Geological Service investigation of water quality of groundwater in the Tahoe-Martis area was conducted as part of the Priority Basin Project of Groundwater Ambient Monitoring and Assessment Program and this study showed that groundwater in the Lake Tahoe Basin generally meets state water quality standards; continued monitoring is warranted (Fram, et. al., 2012). Projects that result in shifting drinking water supply from surface water supply to groundwater supply should be cognizant of the difference in water quality of groundwater as compared to surface water. For example, on the west shore, Tahoe City PUD had a well accessing groundwater and serving the McKinney Quail water system. This well eventually developed both water supply and water quality problems, including the need for additional testing for lead and copper. The Tahoe City PUD determined that surface water was a more reliable water source for their customers3 in this case. Another factor that future proposals to shift supply from surface water to groundwater should consider is the additional cost and carbon emissions associated with the energy needed to run water pumps. Water quality in the region is regulated by the State Water Resources Control Board and the Lahonton Regional Water Quality Control Board. In June 2015, the State Water Resources Control Board (SWRCB) adopted the Safe Drinking Water Plan for California. This Drinking Water Plan contains a comprehensive description of regulations that affect the providers of drinking water and this Plan is 3 Details available on Tahoe City PUD website at: <http://waterplant.tcpud.org/faqs/> Draft Final MSR, August 2018 Executive Summary 1- 6 North Tahoe and Martis Valley MSR available on the SWRCB website at: <http://www.waterboards.ca. gov/publications_forms/publications/legislative/docs/2015/sdwp.pdf>. Also in 2015, Governor Brown signed several new laws related to the provision of water service including the following: • SB 555, by state Sen. Lois Wolk, D-Vacaville, requires California's urban water departments and private water companies to audit their systems for leaky pipes. • Assembly Bill 1164, by Assemblyman Mike Gatto, D-Los Angeles, bans cities and counties from prohibiting drought-tolerant landscaping, including synthetic grass and artificial turf. • AB 1390 (Assemblyman Luis Alejo, D-Watsonville): Establishes special procedures for adjudicating disputes over groundwater extraction rights. Electricity and police protection services are not described in this MSR because the providers of these services are not one of the thirteen providers analyzed in this MSR. 1.2: SERVICE PROVIDERS This MSR addresses thirteen service providers in eastern Placer County: Alpine Springs County Water District, Donner Summit Public Utility District, Mckinney Water District, North Tahoe Fire Protection District, North Tahoe Public Utility District, Sierra Lakes County Water District, Squaw Valley Public Services District, Tahoe City Cemetery District, Tahoe Forest Hospital District, Tahoe City Public Utility District, Tahoe Truckee Sanitation Agency, Talmont Resort Improvement District, and the Truckee Tahoe Airport District. The districts in eastern Placer County that fall under the jurisdiction of Placer LAFCO and which provide the above services are listed in Table 1-1, shown on the next page. In addition to the 15 districts listed in Table 1-1, it should be noted that three Districts (Truckee Donner PUD, Truckee Sanitary District, and the Truckee Fire Protection District) provide public services (water, electricity, wastewater collection, and fire protection) to the Truckee area, including a small portion of unincorporated Placer County. However, since each of these districts are within the jurisdiction of Nevada LAFCo, they are not further discussed in this MSR. Draft Final MSR, August 2018 Executive Summary 1- 7 North Tahoe and Martis Valley MSR Table 1-1: Districts and Services in Eastern Placer County Name of District Ai r p o r t A m b ul e n c e C e m e t a r y E m e r g e n c y M e di c al Fi r e F u el s M a n a g e m e nt H o s pi t al & M e di c al Li g h ti n g P a r k s R e s c u e R o a d M a i n t e n c e S n o w R e m o v al S o li d W a st e T r a il s W a s t e w a t e r W at e r Alpine Springs County Water District X X X X X X Donner Summit Public Utility District X X McKinney Water District X Northstar Community Services District X X X X X X X X X X X North Tahoe Fire Protection District X X X North Tahoe Public Utility District X X X Sierra Lakes County Water District X X Squaw Valley Public Services District X X X X X X X Tahoe City Cemetery District X Tahoe City Public Utility District X X X X Tahoe Forest Hospital District X Tahoe Truckee Sanitation Agency X Talmont Resort Improvement District X X Truckee Tahoe Airport District X Draft Final MSR, August 2018 Executive Summary 1- 8 North Tahoe and Martis Valley MSR Size of Agencies This section presents a cross-functional analysis of the size for both population and geography for each agency evaluated in this MSR. The following table summarizes the population and geographic size across the agencies. Table 1.2: Size of Agencies in North Lake Tahoe and Martis Valley MSR Permanent Size (acres) of Size (acres) of Agency Population (per boundary SOI only** 2010 US Census)* area Alpine Springs County Water 0 191 3,779 District Donner Summit Public 1,198 93 8,320 Utility District Mckinney Water District 156 266 0 North Tahoe Fire Protection 0 14,010 13,731 District. North Tahoe Public Utility 6,567 5,486 4,112 District Sierra Lakes County Water 1194 205 2,489 District Squaw Valley Public Services 0 950 6,331 District Tahoe City Cemetery 122,369 19,500 43,404 District Tahoe Forest Hospital 196,035 33,482 390,585 District Tahoe City Public Utility 17,403 8,524 19,840 District Tahoe Truckee Sanitation n/a 33,184 n/a Agency Talmont Resort 0 300 613 Improvement District Truckee Tahoe Airport 0 33,482 310,256 District Source of geographic size data: Placer County GIS database as queried by Ms. Stolen, Consultant *Note: The permanent population of a district in the North Tahoe/Martis Valley region is a small fraction (ranging from 25% to 33%) of the total population that a district serves due to the high number of vacation homes and hotel/lodges (temporary overnight visitors) and daytime visitors. **Note: SOI acreage calculation does not include the boundary area Draft MSR, September 2016 Executive Summary 1- 9 North Tahoe and Martis Valley MSR The largest agency studied in terms of population and geographic size is the Tahoe Forest Hospital District. The smallest agency studied in terms of permanent population is Donner Summit Public Utility District. The agency with the smallest geographic extent is the Mckinney Water District. Website Comparison Websites are a modern tool that serve to facilitate transparency in local government agencies by making key pieces of information readily available in a timely manner. Assembly Bill 1344 (Feuer) was approved by the Governor in October 2011 and requires that every special district with a website must post its agendas on that website as well as at a physical location 72 hours before a regular meeting and 24 hours before a special meeting. Each of the thirteen districts studied in this MSR meets the requirements of AB1344. The table below presents a cross-functional analysis of the websites for the agencies studied in this MSR. Table 1-3. Website Comparison Agencies in North Lake Tahoe and Martis Valley MSR Current Meeting Current Agenda and Agency Website Budget/Audit on Minutes on Website? Website? Alpine Springs County Budget: No Agenda: Yes Yes Water District Audit: No Minutes: Yes Donner Summit Public Budget: Yes Agenda: Yes Yes Utility District Audit: Yes Minutes: Yes Mckinney Water District Budget: Yes Agenda: Yes Yes Audit: No Minutes: Yes North Tahoe Fire Budget: Yes Agenda: Yes Yes Protection District Audit: Yes Minutes: Yes North Tahoe Public Budget: Yes Agenda: Yes Yes Utility District Audit: Yes Minutes: Yes Sierra Lakes County Budget: Yes Agenda: Yes Yes Water District Audit: Yes Minutes: Yes Squaw Valley Public Budget: Yes Agenda: Yes Yes Services District Audit: Yes Minutes: Yes Tahoe City Cemetery No None No District Tahoe Forest Hospital Budget: Yes Agenda: Yes Yes District Audit: Yes Minutes: Yes Tahoe City Public Utility Budget: Yes Agenda: Yes Yes District Audit: Yes Minutes: Yes Draft MSR, September 2016 Executive Summary 1- 10 North Tahoe and Martis Valley MSR Tahoe Truckee Sanitation Budget: No Agenda: Yes Yes Agency Audit: No Minutes: No Talmont Resort Budget: Yes Agenda: Yes Yes Improvement District Audit: No Minutes: Yes Truckee Tahoe Airport Budget: Yes Agenda: Yes Yes District Audit: Yes Minutes: Yes As shown in Table 1-3, eight of the thirteen districts have all five items (website, budget, audit, agenda, and minutes) including Donner Summit Public Utility District, North Tahoe Fire Protection District, North Tahoe Public Utility District, Sierra Lakes County Water District, Squaw Valley Public Services District, Tahoe Forest Hospital District, Tahoe City Public Utility District, and the Truckee Tahoe Airport District. These seven districts have websites that meet a high standard for public transparency. Three districts have four of the items (website, budget, agenda, and minutes) including the Alpine Springs CWD and the Mckinney Water District, and Talmont Resort Improvement District. These two districts do not have audited financial statements posted on their website. The Tahoe Truckee Sanitation Agency has a website and does post meeting agendas on its website. However, it does not post recent meeting minutes, budgets, and audited financial statements to its website. Lastly, only one district, the Tahoe City Cemetery District, does not have a website. In June 2015, the Placer County Grand Jury published a “Review of Government Websites” on their website at: http://www.placer.courts.ca.gov/grandjury/2014- 2015/Review%20of%20Government%20Websites.pdf . This document reviewed several websites for several cities and districts including two districts from eastern Placer County: [Northstar CSD (in 2014 MSR) and the Truckee Tahoe Airport District]. Additionally, the Grand Jury made eleven recommendations and they indicate that nine of these recommendations should be applicable to all special districts in Placer County. While a review and status check on each of these nine recommendations as applicable to the thirteen districts is beyond the scope of this MSR, one recommendation is highlighted below: The Special District Leadership Foundation has developed a best-practices checklist. All Special Districts/Agencies should assure that their websites, at a minimum, meet the best- practices checklist from the Special District Leadership Foundation available on-line at: http://media.wix.com/ugd/e1128e_4ad2fb79879944249dfc30c4a71b8ba3.pdf (Source: Placer County Grand Jury, 2015). It should also be noted that the Institute for Local Government also describes best practices for websites and their best practices are available on-line at: http://www.ca-ilg.org/website-best-practices . Draft MSR, September 2016 Executive Summary 1- 11 North Tahoe and Martis Valley MSR Since the promotion of transparency in local government agencies is within LAFCO’s purview, it is recommended that Placer LAFCO review the best practices guidance from the Special District Leadership Foundation and from the Institute for Local Government and establish guidelines for websites for cities and special districts that can assessed during future MSRs. Collaboration Among Agencies LAFCO is concerned with efficiency and ensuring that local districts due not waste financial, natural or human resources. One way to increase the efficient use of limited resources is to share and collaborate. Since there are no large cities in the region (aside from Truckee in Nevada County) and since county government (Placer, Nevada, and El Dorado) has a limited presence in the region, the local districts studied in this MSR represent local government and most of these agencies work together and collaborate with each other to best serve the interests and needs of their community. Partnerships, shared services and joint use of facilities can be employed by local agencies to increase staffing efficiencies, facility utilization and to reduce costs. Such collaborative efforts often involve neighboring government agencies, nonprofits, businesses, or social service organizations. The outcome of these efforts are improved access to services and support and this benefits the overall community. When local agencies work together to serve shared constituencies and clients, they can continue to provide essential services in a sustainable manner and maximize limited resources. Chapters 6-18 in this MSR analyze each of the thirteen service providers in detail and these chapters describe collaboration and sharing among neighboring districts. Table 1-4 presented below is a collaboration matrix that summarizes who is collaborating with whom and how. Please note that Northstar Community Services District and Placer County Water Agency Zone 4 were studied in a 2014 MSR focused on these two agencies. Since then, LAFCO has agreed to allow Northstar Community Services District to assume responsibility for PCWA Zone 4 and this is why PCWA is not listed in the collaboration matrix (Table 1-4), below. Draft MSR, September 2016 Executive Summary 1- 12 North Tahoe and Martis Valley MSR Table 1-4: Collaboration Matrix D Name of District A S C W D S P U D M W D N C S D N T F P D N T P U D S L C W D S V P S D T C C D T C P U D T F H D T- T S A T R I D T T A D Alpine Springs County Water District C M Donner Summit Public Utility District A McKinney Water District A Northstar Community Services District North Tahoe Fire Protection District C A MOU North Tahoe Public Utility District A M Placer County Water Agency, Zone 4 Sierra Lakes County Water District A Squaw Valley Public Services District A A M Tahoe City Cemetery District Tahoe City Public Utility District A MOU A A M A Tahoe Forest Hospital District Tahoe Truckee Sanitation Agency M M M M Talmont Resort Improvement District Truckee Tahoe Airport District A Symbols: C=contract MOU = Memorandum of Understanding M = Membership A = Agreement Draft MSR, September 2016 Executive Summary 1- 13 North Tahoe and Martis Valley MSR 1.3: DETERMINATIONS This Municipal Service Review (MSR) contains analysis and conclusions, known as determinations, regarding six topic areas that are codified in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56000 et seq.). These areas of analysis contain the essential operational and management aspects of each service provider, and together constitute a review of the ability of the providers to meet the service demands of the residents within their boundaries. The seven topic areas covered in the determinations include the following factors:  Growth and population projections for the affected area  Disadvantaged unincorporated communities  Present and planned capacity of public facilities  Financial ability of the agency to provide services  Opportunities for shared facilities  Accountability for government service needs  Any other matter relative to service delivery as required by Commission Policy The specific determinations and the key facts that support each determination for each service provided are discussed in Chapters 6 through 18. The areas of analysis contain the essential operational and management aspects of each service provider and together constitute a review of the ability of the providers to meet the service demands of the residents within their boundaries. The services considered in this are primarily provided to residents and visitors by special districts, collectively referred to as “agencies.” Agencies are typically operated under the provisions of their “principal acts,” and they govern the provision of one or more public services. Boundaries and spheres of influence are determined by their Local Agency Formation Commission (LAFCO). Chapters 6 to 18 list the determinations for each of the 13 service providers. REFERENCES Fram, M.S., and Belitz, Kenneth, 2012, Status and Understanding of Groundwater Quality in the Tahoe-Martis, Central Sierra, and Southern Sierra Study Units, 2006–2007— California GAMA Priority Basin Project: U.S. Geological Survey Scientific Investigations Report 2011-5216, 222 p. Draft MSR, September 2016 Executive Summary 1- 14 North Tahoe and Martis Valley MSR Chapter 2 PLACER LAFCO RESOLUTION OF APPROVAL Page intentionally left blank Draft Final MSR, July 2018 Resolution 2-1 North Tahoe and Martis Valley MSR Page intentionally left blank (paste here) Draft Final MSR, July 2018 Resolution 2-2 North Tahoe and Martis Valley MSR Chapter 3 INTRODUCTION This Municipal Service Review (MSR) has been prepared to provide technical and governance information for service providers within Eastern Placer County. Thirteen service providers, including the Alpine Springs County Water District, Donner Summit Public Utility District, Mckinney Water District, North Tahoe Fire Protection District, North Tahoe Public Utility District, Sierra Lakes County Water District, Squaw Valley Public Services District, Tahoe City Cemetery District, Tahoe Forest Hospital District, Tahoe City Public Utility District, Tahoe Truckee Sanitation Agency, Talmont Resort Improvement District, and the Truckee Tahoe Airport District are reviewed herein. See Figure 3-1 for a map of the districts contained in this MSR. Draft Final MSR, August 2018 Introduction 3-1 North Tahoe and Martis Valley MSR 3.1 ROLE AND RESPONSIBILITY OF LAFCO Local Agency Formation Commissions (LAFCo’s) are independent agencies that were established by state legislation in 1963 in each county in California to oversee changes in local agency boundaries and organizational structures. It is LAFCo’s responsibility to:  oversee the logical, efficient, and most appropriate formation of local cities and special districts,  provide for the logical progression of agency boundaries and efficient expansion of municipal services,  assure the efficient provision of municipal services, and  discourage the premature conversion of agricultural and open space lands (Government Code [GC] §§ 56100, 56301, 56425, 56430, 56378). The Cortese-Knox-Hertzberg (CKH) Local Government Reorganization Act of 2000 (CKH Act) requires each LAFCo to prepare a MSR for its cities and special districts. MSRs are required prior to and in conjunction with the update of a Sphere of Influence (SOI). This review is intended to provide Placer LAFCo with the necessary and relevant information related to thirteen service providers within the eastern County (see above), specifically regarding the appropriateness of each service provider’s existing and proposed boundaries and SOI. About Placer LAFCo Although each LAFCo works to implement the CKH Act, there is flexibility in how these state regulations are implemented so as to allow adaptation to local needs. Placer LAFCo has adopted policies as found on Placer LAFCo’s website (http://www.placer.ca.gov/~/media/ lafco/documents/LAFCO%20Policies.pdf). LAFCo’s policies relating to MSRs are listed below: 1. POLICY: LAFCO will encourage regional Municipal Service Reviews over project-specific reviews. Regional reviews are those that cover “logical” geographic areas defined by such things as a general or community plan or a drainage basin, et cetera. 2. POLICY: If an agency or private party submits a request to initiate a proposal for a Municipal Service Review to LAFCO, staff will review the proposal with the applicant to discuss the potential parameters of the study. Following this, staff will make a recommendation to the Commission regarding the request. The Commission may or may not authorize the study and adopt parameters for it. 3. POLICY: If a particular party is interested in initiating a project that will require a Municipal Service Review, they will be liable for the costs associated with doing the study. 4. POLICY: LAFCO may choose to initiate certain studies on its own volition when there appears to be a need to study the organization and provision of services in a specified area. 5. POLICY: When up-dating a general or community plan the County and cities should coordinate with LAFCO to see that a corresponding municipal services review is completed in conjunction with the plan. This MSR implements Policy #1 in that it is a regional MSR covering the North Tahoe and Martis Valley area. Policy #4 is pertinent to this MSR because in this case, LAFCO chose to initiate Draft Final MSR, August 2018 Introduction 3-2 North Tahoe and Martis Valley MSR this MSR on its own volition because state law requires that MSRs be updated on a regular basis. MSR is an information tool that can be used to facilitate cooperation among agency managers and LAFCo to achieve the efficient delivery of services. Describing existing efficiencies in service deliveries and suggesting new opportunities to improve efficiencies is a key objective of this MSR, consistent with LAFCo’s purposes. Since this MSR will be published on LAFCo’s website, it also contributes to LAFCo’s principle relating to transparency of process and information. A public hearing was conducted by LAFCo on this MSR, thereby contributing to LAFCo’s aim of encouraging an open and engaged process. Additional Information Additional reference documents, such as previous MSR’s or sphere studies are available from LAFCO’s office and website and contact information is shown below: Placer LAFCO Attn: Kris Berry, Executive Officer 110 Maple Street (Air Pollution Control building) Auburn, CA 95603 Phone: 530-889-4097 http://www.placer.ca.gov/departments/lafco 3.2 PURPOSE OF THE MUNICIPAL SERVICE REVIEW MSRs are intended to provide LAFCo with a comprehensive analysis of services provided by each of the special districts and other service providers identified within this MSR and that fall under the legislative authority of the LAFCo. The MSR makes determinations in each of seven mandated areas of evaluation, providing the basis for LAFCo to review proposed changes to a service provider’s boundaries or Spheres of Influence (SOI). About Spheres of Influence This municipal service review provides Placer LAFCo with the information and analysis necessary to evaluate existing boundaries and consider spheres of influence for these service providers. An SOI is defined in GC § 56425 as “a plan for the probable physical boundary and service area of a local agency or municipality as determined by the Commission.” LAFCo is required to adopt an SOI for each city and each agency in its jurisdiction. Chapter 19, Conclusions, contains a general recommendation that LAFCo update the SOI for each district studied in this review and Table 19-1 lists the date LAFCo approved the most recent SOI update for each district studied in this MSR. Draft Final MSR, August 2018 Introduction 3-3 NEVADA CO. UV 89 §¨¦ 80 SouthYubaRiver Donner Lake UV 267 T ru c k A mericanRiver e e R iv e r UV 28 NorthFork UV River 89 PLACER CO. merican A ork F Middle UV 89 French Meadows Reservoir Lake Tahoe Hell Hole Reservoir McKinney Water District Talmont Resort Improvement District Northstar Community Services District Alpine Springs County Water District Ru b ico Squaw Valley Public Services District n R T S N a i . e h T r o a ra e h o L C e a it k y F e i P r s e u C b P o l r i u c o n t U e ty c ti t l W i i o ty n a D t D e i r s i s t D r t i r i c i s c t t t rict SouthForkRubicon River iv e r Donner Summit Public Utility District North Tahoe Public Utility District ± EL DORADO CO. Truckee Tahoe Airport District Tahoe City Cemetery District Tahoe Truckee Sanitation Agency Tahoe Forest Hospital District 0 2 4 Miles Figure 3-1 REGIONAL MAP North Lake Tahoe and Martis Valley MSR  In determining the Sphere of Influence for an agency, LAFCo must consider and prepare written determinations with respect to the following four factors [Government Code §56425(e)]: The present and planned land uses in the area  The present and probable need for public services and facilities in the area  The present capacity of public facilities and adequacy of public services that the agency provides  The existence of any social or economic communities of interest in the area if LAFCo determines that they are relevant to the service provider Additionally, agencies that provide water, wastewater, or structural fire protection services must also consider the presence of disadvantaged unincorporated communities. The intent of an SOI is to identify the most appropriate areas for an agency’s service area in the probable future. LAFCo discourages inclusion of land in an agency’s Sphere if a need for services provided by that agency cannot be demonstrated. Accordingly, territory included in an agency’s Sphere is an indication that the probable need for service has been established, and that the subject agency has been determined by LAFCo to be the most logical service provider for the area. SOIs are also important to LAFCO because they relate to LAFCO’s control of nine types of boundary changes as listed below:  Annexations  Incorporations  Consolidations  Mergers  Detachments  Subsidiary Districts  Dissolutions  Reorganizations  Formations About this MSR Ideally, an MSR will support not only LAFCo but will also provide the following benefits to the subject agencies:  Provide a broad overview of agency operations including type and extent of services provided  Serve as a prerequisite for a sphere of influence update  Evaluate governance options and financial information  Demonstrate accountability and transparency to LAFCo and to the public  Allow agencies to compare their operations and services with other similar agencies This MSR is designed to provide technical and administrative information on each of the thirteen service providers to Placer LAFCo, so that LAFCo can make informed decisions based on the best available data for each service provider and area. Written determinations, as required by law, are presented in Chapter 19 Conclusions of this MSR for LAFCo’s consideration. LAFCo is ultimately the decision maker on approval or disapproval of any determinations, policies, boundaries, and discretionary items. Draft Final MSR, August 2018 Introduction 3-5 North Tahoe and Martis Valley MSR Also included in this MSR is a discussion of mutual water companies in eastern Placer County (Chapter 4 Overview Mutual Water Companies). Mutual water companies are private non- profit organizations that provide water to specific property owners. These systems represent only four of the water systems in the area. 3.3 METHODOLOGY AND APPROACH TO THIS MSR The CKH Act indicates that LAFCO should review and update a sphere of influence every five years, as necessary, consistent with GC § 56425(g) and 561061. Many LAFCOs aim to update MSRs on a similar five to ten year schedule. Placer LAFCO’s first MSR for the Tahoe and Martis Valley region was prepared in 2004. Although the 2004 MSR provided a solid foundation for each district and made the required determinations, its approach and format was focused on service functions such as fire protection or water service rather than on individual districts. This current (2018) MSR takes a different approach and provides a comprehensive and data driven analysis focused on each individual district. The chapters for each district are intended to be stand-alone such that a person interested in a district only needs to refer to the district’s specific chapter rather than the entire MSR. Since fourteen years have passed since the 2004 MSR, this new version updates all the details necessary to support LAFCO’s determinations. A cross-function analysis that facilitates comparison of various traits of the thirteen service providers is provided in the Executive Summary (Chapter 1) of this MSR. For each of the thirteen service providers, an evaluation of the structure and operation and a discussion of possible areas for streamlining, improvement, and coordination is described in Chapters 6-18 of this MSR. Key references and information sources for this study were gathered for each agency considered. The reference utilized in this study include published reports; review of agency files and databases (agendas, minutes, budgets, contracts, audits, etc.); master plans; capital improvement plans; engineering reports; EIRs; finance studies; general plans; and state and regional agency information (permits, reviews, communications, regulatory requirements, etc.). Additionally, the consulting team, in coordination with the LAFCo Executive Officer, sent each agency a Request for Information, and the agencies’ responses to these requests were a key information source. Members of the consultant team also conducted site visits and personal interviews with each agency. A bibliography is provided at the end of each chapter so that readers can readily access the source material. This MSR forms the basis for specific judgments, known as determinations, about each agency that LAFCo is required to make (GC § 5425, 56430). These determinations are described in the 1 Section 56106 of CKH states that all timeframes are directive. Any provision governing the time in which commission is to act, is deemed directory rather than mandatory Draft Final MSR, August 2018 Introduction 3-6 North Tahoe and Martis Valley MSR MSR Guidelines from the Office of Planning & Research (OPR) as set forth in the CKH Act, and they fall into seven categories, as listed below: 1. Growth and population projections for the affected area 2. Location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence 3. Present and planned capacity of public facilities and adequacy of public services including infrastructure needs or deficiencies 4. Financial ability of agency to provide services 5. Status of, and opportunities for, shared facilities 6. Accountability for community service needs, including government structure and operational efficiencies 7. Any other matter related to effective or efficient service delivery, as required by commission policy An MSR must include an analysis of the issues and written determination(s) for each of the above determination categories. Within each chapter that describes a specific service provider, there are sections corresponding to the seven determination categories required by the CKH Act. Each of these seven determination categories is described in the chapter for each agency. An explanation of these seven determination categories is provided below. 1. Growth and Population Section 3.4 evaluates existing and projected population estimates for the incorporated and unincorporated region of Placer County. The ability of each provider to accommodate growth and demand projections is considered in each chapter. 2. Location and Characteristics of any Disadvantaged Unincorporated Communities within or Contiguous to the Sphere of Influence Senate Bill (SB) 244, which became effective in January 2012, requires LAFCo to consider the presence of any Disadvantaged Unincorporated Communities (DUCs) when preparing a MSR that addresses agencies that provide water, wastewater or structural fire protection services. A DUC is a geographic area characterized as having a median household income of 80 percent or less of the statewide median household income. Although Placer LAFCo does not yet have specific policies related to DUCs, practices that are common throughout the state are utilized in this MSR. Within the unincorporated North Tahoe and Martis Valley region, three DUCs have been identified including Kings Beach, Carnelian Bay, and neighborhoods within Tahoe City, as of 2014. Eight Districts studied in this MSR contain DUCs. See Section 3.6 for additional details. 3. Capacity and Infrastructure Discussed in the service provider chapter is the adequacy and quality of the services provided by the agency, including whether sufficient infrastructure and capital are in place (or planned for) to accommodate planned future growth and expansions. Draft Final MSR, August 2018 Introduction 3-7 North Tahoe and Martis Valley MSR 4. Financing This section (in each service provider chapter) provides an analysis of the financial structure and health of each service provider, including the consideration of rates and service operations, as well as other factors affecting the financial health and stability of each provider. Other factors considered include those that affect the financing of needed infrastructure improvements and compliance with existing requirements relative to financial reporting and management. 5. Shared Facilities Opportunities for agencies to share facilities are described in the service provider chapters of this MSR. Practices and opportunities that may help to reduce or eliminate unnecessary costs are examined, along with cost avoidance measures that are already being utilized. Occurrences of facilities sharing are listed and assessed for more efficient delivery of services. 6. Government Structure and Local Accountability Each service provider chapter contains a subsection entitled Accountability and Governance. This subsection addresses the adequacy and appropriateness of existing boundaries and SOIs, and evaluates the ability of each service provider to meet its demands under its existing government structure. Also included in this subsection is an evaluation of compliance by each provider with public meeting and records laws (Brown Act). 7. Other Matters Related to Effective or Efficient Service Delivery, as Required by LAFCo Policy Other matters could relate to the potential future SOI determination and/or additional effort to review potential advantages or disadvantages of consolidation or reorganization. During the gathering of information for the service review, LAFCo may become aware of additional matters that will require some response or referral to another agency. A summary of determinations regarding each of the above categories are provided in Chapter 19 Conclusions of this document and will be considered by Placer LAFCo in assessing potential future changes to an SOI or other reorganization. Each of the evaluated agencies contributed data and other information. Many of the agencies provided comments on an administrative draft version of their chapter. The Commission conducted the first public meeting on this MSR on May 11, 2016, at the beginning of the public review process that was duly noticed. Later, on August 29 2017, LAFCo staff held two public workshops. The same presentation was provided at each workshop. The first workshop was held at 2:00 - 4:00 pm at the Truckee Tahoe Airport conference room, 10356 Truckee Airport Rd, Truckee, CA 96161. The second workshop was held 6:00 - 8:00 pm at the Tahoe City Public Utility District Board Room, 221 Fairway Dr, Tahoe City, CA 96145. Draft Final MSR, August 2018 Introduction 3-8 North Tahoe and Martis Valley MSR California Environmental Quality Act The California Environmental Quality Act (CEQA) is contained in Public Resources Code § 21000, et seq. Under this law public agencies are required to evaluate the potential environmental effects of their actions. This MSR is exempt from CEQA under a Class 6 categorical exemption. CEQA Guidelines § 15306 states that “Class 6 consists of basic data collection, research, experimental management, and resource evaluation activities that do not result in a serious or major disturbance to an environmental resource.” It should be noted that when LAFCo acts to establish or update a SOI for the agencies at some point in the future, an environmental document will need to be prepared to satisfy CEQA requirements. The lead agency for this future document would most likely be LAFCo. Principal LAFCO Several of the districts in the Tahoe/Martis Valley cross county and/or state lines. In situations where a district’s boundary area encompasses Placer County and either Nevada County or El Dorado County, the “principal” LAFCO has jurisdiction. California Government Code §56066 states that: “‘Principal county’ means the county having the greater portion of the entire assessed value, as shown on the last equalized assessment roll of the county or counties, of all taxable property within a district or districts for which a change of organization or reorganization is proposed.” California Government Code GC §56120 indicates that the LAFCO of the principal county has exclusive jurisdiction to regulate the boundaries of all districts within its home county. Table 3.1, below, lists the district/agencies studied in this MSR and indicates which of the counties is the “principal”. Draft Final MSR, August 2018 Introduction 3-9 North Tahoe and Martis Valley MSR Table 3. 1: Principle LAFCO and Overlapped County Boundaries El Placer Nevada Dorado District Services Co Co Co Water, Wastewater, Alpine Springs County Principal Parks, Fire, Solid Waste, Water District and only Parks Donner Summit Public Water, Wastewater Principal X Utility District McKinney Water District Water Principal X Water, Wastewater, Northstar Community Snow Removal, Road and Principal Services District Trail Maintenance, and only Street Lighting North Tahoe Fire Protection Fire, Emergency Principal District Medical, Specialty and only North Tahoe Public Utility Water, Wastewater, Principal District Park and Recreation and only Placer County Water Agency, Zone 4 (Zone 4 has Water n/a been merged with Northstar PUD) Sierra Lakes County Water Principal Water, Wastewater District and only Water, Wastewater, Emergency Services, Squaw Valley Public Principal Fire, Emergency Services District and only Medical, Rescue, Solid Waste Tahoe City Cemetery Principal Cemetery District and only Tahoe City Public Utility Water, Wastewater, Principal X District Park and Recreation General Hospital Care, Tahoe Forest Hospital Medical, Surgical, Principal X District Ambulance Tahoe Truckee Sanitation Wastewater Treatment Principal X X Agency Talmont Resort Principal Snow Removal Improvement District and only Draft Final MSR, August 2018 Introduction 3-10 North Tahoe and Martis Valley MSR Truckee Tahoe Airport Flight Operations, Principal X District Aircraft Services 4 Mutual Water Companies and Several Private Water Water n/a Companies Other Districts Not Included in this MSR El Placer Nevada Dorado Name of District Services Co Co Co Tahoe Resource Conser X Principal vation District Truckee Donner PUD X Principal Truckee Sanitary District X Principal Truckee Fire Protection X Principal District Truckee Donner Rec X Principal and Park District Since Placer County is the “principal” county for the districts included in this MSR, the focus of this document is on Placer County. Placer County is one of the 14 charter counties in the state, providing it with more flexibility and control in administration as compared to a traditional county. The Placer County Charter is part of the County Code and it is available on the County website at: http://www.placer.ca.gov/departments/ceo/ programs%20and%20policies/charter. Other Public Services In addition to the public services listed in Table 3.1 above, there are several other services provided to residents of the unincorporated communities studied in this MSR. Traffic control and accident investigation is typically provided by the California Highway Patrol. Cal-Fire provides protection from wildland fires. Cable television and broadband internet services are provided by Suddenlink and AT&T. School services are provided by the Tahoe Truckee School District. Placer County provides a wide range of services including: • General Government • Law Enforcement • Animal Protection Services • Land-use Planning • Building and Safety • Code Enforcement • Civil Engineering • Road Maintenance, and • Library Draft Final MSR, August 2018 Introduction 3-11 North Tahoe and Martis Valley MSR 3.4 PUBLIC PARTICIPATION LAFCo held a public meeting on a Preliminary Draft MSR on May 11, 2016. The Draft MSR was posted to LAFCO’s website and made available to the public on September 14, 2016. Additionally, two public workshops were held in the Tahoe area on August 29, 2017. Comments from the public were solicited and several comments from the public were received as described in Chapter 20 “Comments Received”. The Commission held a public meeting on this Draft Final MSR on August 8, 2018. After this MSR is finalized, it will be published on the Commission’s website (http://www.placer.ca.gov/departments/lafco), thereby making the information contained herein available to anyone with access to an internet connection. A copy of this MSR may also be viewed during posted office hours at LAFCo’s office located at 110 Maple Street, Auburn, CA, 95603. In addition to this MSR, LAFCo’s office maintains files for each service provider and copies of many of the planning documents and studies that were utilized in the development of this MSR. These materials are also available to the public for review. 3.5 GROWTH AND POPULATION – REGIONAL SETTING LAFCo is required to make a determination in this MSR on growth and population. When planning for the provision of future services and infrastructure, local agencies should have ready access to accurate growth and population projections. Growth and Population, Service Demands, Regional Setting This section provides an overview of growth and population and describes the regional setting. Growth and Population LAFCO is required to make a determination in this MSR on growth and population. When planning for the provision of future services and infrastructure it is important to have ready access to accurate growth and population projections. This MSR also identifies and considers disadvantaged communities and growth and population data contributes to that analysis. The consultants preparing this MSR asked service providers to provide the current population and projected growth in five-year increments through 2030. The information provided by the service providers is summarized in each chapter of this MSR. The following paragraphs provide an overview of population and growth in the eastern county as a whole. The intent is to provide contextual information which can be used to compare and consider data in subsequent chapters on individual agencies. Draft Final MSR, August 2018 Introduction 3-12 North Tahoe and Martis Valley MSR The study area for this MSR covers the eastern portion of three counties: Placer, El Dorado, and Nevada. Additionally, the Town of Truckee receives services from the Tahoe Truckee Airport District and the Tahoe Forest Hospital District and is therefore within the study area of this MSR. The 2015 population of the three counties and the Town of Truckee is shown below in Table 3.2. Table 3.2: Historical/ Current Population Year 1990 2000 2010 2015 Placer County 172,796 248,399 348,432 369,454 El Dorado County 125,995 155,702 180,682 184,917 Nevada County 78,510 92,033 98,764 98,193 Town of Truckee 11,000 13,864 16,180 16,211 (Source: California Department of Finance) As shown in Table 3.2 above, Placer County’s population doubled from the year 1990 to 2015 with an increase of 113%. El Dorado County’s population increased by 46% and Nevada County’s population increased by 25% during this same timeframe. For all three counties, most of the population growth occurred on the western side of the county in lower elevations and closer to major employment centers in Sacramento County. The Town of Truckee’s population increased by 47% over the 25 years from 1990 to 2015. These high rates of population growth are correlated with increased demand in public services. Since this MSR is sponsored by Placer LAFCO, the population and socio-economic factors of Placer County are analyzed in more detail in the following pages. Policies of the Placer County General Plan aim to steer urban growth to the cities. The 2013 Placer County Housing Element confirms these policies. While the county has grown at a rapid pace, much of this growth has occurred within the cities located on the western side of the county. Incorporated areas of the County grew at an Average Annual Growth Rate (AAGR) of 5.2 percent between 1990 and 2000. Unincorporated Placer County’s population grew at an AAGR of 1.8 percent between 1990 and 2000. Draft Final MSR, August 2018 Introduction 3-13 North Tahoe and Martis Valley MSR From 2000 to 2010, Placer County as a whole had a 3.4 percent AAGR for population, a rate more than three 400000 times California’s 300000 population AAGR of 1.0 200000 percent during this 100000 period. Most of this 0 growth occurred in the incorporated areas of the county where the AAGR was 5.0 percent between 2000 and 2010. Growth in unincorporated areas of the county slowed to an AAGR of 0.7 percent. Overall, the County has seen a steady increase in population as shown in Figure 3.7. The eastern part of Placer County had 13,973 residents in 2000 and 12,802 in 2010 (IRWMP, 2014). This represents less than 4% of the County’s population. The decrease of 1,171 persons may reflect the effects of the challenging economic conditions in the early part of the recent recession. The population in Placer County is expected to continue to grow as shown in Figure 3-8, below. Socio-Economic Factors The agencies analyzed in this MSR provide infrastructure and services that support both residents and businesses. This sub-section provides a brief overview of the major businesses in the region and considers workforce employment as a socio-economic factor. The ski industry is a major employer in the North Tahoe/Martis Valley Region. Other major employers are in the hospitality sector (hotels etc.) and the medical sector. Table Draft Final MSR, August 2018 Introduction 3-14 0002 1002 2002 3002 4002 5002 6002 7002 8002 9002 0102 1102 2102 3102 4102 Figure 3.7 Population in Placer County by Year P o p u l a t i o Year n … Figure 3.8: Projected Future Population in Placer County P P o r 600,000 p o u 400,000 j l e 200,000 a c t 0 t i 2010 2015 2020 2025 2030 2035 2040 2045 2050 e o Year d n Source: CA Department of Finance North Tahoe and Martis Valley MSR 3.4 below, lists the major employers in eastern portion of Placer, Nevada, and El Dorado Counties. Table 3.4: Major Employers in North Lake Tahoe/Martis Valley Employer Name Location Industry Placer County Alpine Meadows Alpine Meadows Resorts Northstar-At-Tahoe Resort Truckee Resorts Resort At Squaw Creek Alpine Meadows Resorts Ritz-Carlton-Lake Tahoe Truckee Hotels & Motels Nevada County Boreal Mountain Resort Truckee Hotels & Motels Clear Capital Truckee Real Estate Buyers & Brokers Lodge At Tahoe Donner Truckee Restaurants Safeway Truckee Grocers-Retail Sugar Bowl Ski Area Group Norden Skiing Centers & Resorts Tahoe Forest Hospital Truckee Hospitals Village Lodge-Sugar Bowl Truckee Hotels & Motels El Dorado County Barton Memorial Hospital South Lake Tahoe Hospitals Lake Tahoe Community College South Lake Tahoe Schools-Universities & Colleges Academic Marriott-Grand Residence Tahoe South Lake Tahoe Hotels & Motels Marriott-Timber Lodge South Lake Tahoe Hotels & Motels Safeway South Lake Tahoe Grocers-Retail Sierra At Tahoe Resort Twin Bridges Skiing Centers & Resorts South Lake Tahoe City Manager South Lake Tahoe City Government-Executive Offices Source:http://www.labormarketinfo.edd.ca.gov/majorer/countymajorer.asp?CountyCode=000017 The average unemployment rate throughout the State of California in the summer of 2015 was 6.1 percent and in the summer of 2016 was 5.9 percent. Placer, Nevada, and El Dorado Counties each had lower rates of unemployment (as compared to California) as shown in Table 3.5 below. Draft Final MSR, August 2018 Introduction 3-15 North Tahoe and Martis Valley MSR Table 3.5: Unemployment Rates as of July 2015 Labor Employment Unem- Unem- Year Ago Year- County Force ployment ployment Unem- Over- Rank (in Rate ployment Change CA) by Rate Rate Placer 178,900 170,100 8,700 4.90% 6.00% -1.10 11 County Nevada 48,990 46,460 2,530 5.20% 6.20 -1.00 15 County El Dorado 89,800 84,900 4,900 5.40% 6.90 -1.50 18 County Source of data: http://www.labormarketinfo.edd.ca.gov/LMID/Geographic_Information_Systems_Maps.html The data presented in Table 3.5 above remained fairly steady through the summer of 2016 with an unemployment rate of 5.0 percent in Placer County, 5.2 percent in Nevada County, and 5.5 percent in El Dorado County. Of Placer County’s 178,900 workers, only 69,544 both live and work in Placer County. 45,042 workers live in neighboring counties such as Sacramento County and Nevada County and drive into Placer County for Jobs2. 46,855 Placer County residents commute out to neighboring counties for work. Of Nevada County’s 48,990 workers, only 29,440 both live and work in Nevada County. 4,506 of workers live in surrounding counties such as Washoe County in the state of Nevada or in Placer County to the south, and they commute into Nevada County on a regular basis. 11,230 of Nevada County residents commute to jobs located in surrounding counties such as Placer County or Sacramento County. Of El Dorado’s 89,800 workers, only 39,709 workers both live and work in El Dorado County. 8,200 individuals live in surrounding counties such as 2 Source: http://www.calmis.ca.gov/file/commute-maps/nevadcommute.pdf Draft Final MSR, August 2018 Introduction 3-16 North Tahoe and Martis Valley MSR Douglas County in Nevada and Sacramento County to the west and commute into jobs located in El Dorado County (CA EDD, 2015). Service Demands The population growth estimates for each district serve as a numerical foundation to estimate service demand. There are several services considered in this review, and each service uses different criteria for measuring potential service demand. Projections are made based on the most likely indicator of ability to provide service. By projecting changes to each of these criteria over time, plans and infrastructure of each district can be better analyzed by their ability to accommodate increased demand for services. The following table lists the demand criteria utilized in this MSR. Table 3.6: Service Demand Criteria Service Demand Criteria Water Number of water connections Sewer Number of sewer connections Parks Full-time resident population Hospital Calls for service/annual patients Airport Hangar storage space Cemetery Service requests/full-time resident population Roadway Services Number and type of roads maintained Fire/Emergency Services Calls for service Details regarding service demands for specific districts are provided in Chapters 6 through 18 of this document. Regional Setting Although this MSR focuses primarily on Eastern Placer County, several of the districts encompass portions of El Dorado and/or Nevada Counties. The MSR study area includes three primary geographic regions: North Lake Tahoe basin, Martis Valley, and the Highway 89 corridor. The area is well connected by transportation routes, including two state highways: • Hwy 267 runs north to south and connects Lake Tahoe area near Kings Beach (Hwy 28) to Interstate 80 and to the northerly portion of Hwy 89. • Hwy 89 is a north-south thoroughfare on the west side of Lake Tahoe, through Squaw Valley, intersecting with Interstate 80 and continuing north into Sierra County. Draft Final MSR, August 2018 Introduction 3-17 North Tahoe and Martis Valley MSR I-80 is an interstate highway which connects local area with Sacramento to west and Reno to east. Additionally, public transit is available via an Amtrak station in Truckee and via Truckee Transit which operates bus service connecting downtown Truckee with the Truckee-Tahoe Airport and to recreation areas. Martis Valley The Martis Valley encompasses the northeast corner of Placer County, and the southeast corner of Nevada County, from Highway 89 east to the Nevada state line. The Placer County portion of the Martis Valley includes approximately 25,000 acres of land (39 square miles). The major land uses in the area include residential and commercial, airport, forest lands, and recreation areas. Major recognizable features of the Martis Valley include the Lahontan community, the Truckee Tahoe Airport, and the Northstar at Tahoe ski resort. Population growth in the Martis Valley is regulated through the Martis Valley Community Plan, adopted in December 2003 by Placer County. The 2003 Community Plan updates and supersedes the former Community Plan which had been approved in 1975. Additionally, private agreements among four partners (Sierra Watch, Mountain Area Preservation Foundation, East West Partners, and Northstar Resort) allows transfer of development rights to permanently protect key areas of open space in the Martis Valley in exchange for a certain level of development on other parcels. North Lake Tahoe The North Lake Tahoe area includes all land adjacent to Lake Tahoe within Placer County. This includes portions of the northern and western shores of the Lake, stretching from the Nevada state line on the east to the El Dorado County line on the south. As the largest alpine lake in North America, Lake Tahoe is known for its crystal clear waters and the seasonal display on the surrounding high mountains (LTVA, 2014). The Lake’s surface area is split among four counties (Placer County, El Dorado County, Washoe County, and Douglas County) and 40.96% of its surface area lies within Placer County, more than in any of the other four counties (Wikipedia, 2014). The North Lake Tahoe area is within the area regulated by the Tahoe Regional Planning Agency (TRPA), with planning and development coordinated with the other shorefront areas of Lake Tahoe. Development patterns in the area include a variety of urban uses including residential, commercial, institutional, parks, and public uses. This is the most highly urbanized portion of the study area. Growth rates in North Lake Tahoe are monitored by TRPA, which aims to promote preservation of character in the area and to help preserve water quality in Lake Tahoe. Highway 89 Corridor The Highway 89 Corridor includes lands on both sides of Highway 89, running from the Placer County line on the north to Tahoe City on the south. Land uses along Highway 89 are Draft Final MSR, August 2018 Introduction 3-18 North Tahoe and Martis Valley MSR primarily residential, along with small scale commercial and two ski resorts (Squaw Valley and Alpine Meadows). In summary, the Martis Valley, North Lake Tahoe, and Highway 89 corridors serve as home to a full-time resident population of approximately 13,000 people, with the areas immediately surrounding Lake Tahoe accounting for approximately 60 percent of the population. The Lake Tahoe region experiences significant seasonal influx of visitors seeking recreational opportunities. Visitor populations can place additional burdens on service providers and create wide variations in peak demands for particular services. While visitors are present at most times of the year, it is in the winter months of December to March (ski season) that the greatest number visits the region. Plans, Policies, Studies The study area for this MSR lies within Placer County, El Dorado County, and Nevada County. Each County has primary authority over local land-use and development policies within its jurisdiction and these local planning policies and zoning affect the rate and amount of potential future development and population growth. A general summary of key planning and policy documents is provided in the sections below. Placer County Placer County planning documents fall into four major categories: • 1994 General Plan • Community Plans • Design Guidelines, Ordinances and Guidelines • Proposed Updates The North Tahoe area of Placer County is administered under the 1994 Placer County General Plan and Zoning Ordinance. A map of the overall 1994 General Plan is available on the County website: http://www.placer.ca.gov/~/media/cdr/Admin/GIS/PCGPMap1994.pdf. In the Tahoe region, the 1994 General Plan is comprised of twelve (12) Community Plans as listed in the following table: Table 3.7: List of Placer County Community Plans Alpine Meadows General Plan Carnelian Bay Community Plan Kings Beach Community Plan and Industrial Plan Martis Valley Community Plan North Stateline Community Plan North Tahoe Area General Plan Squaw Valley Area General Plan (Part 1 and Part 2 ) * Draft Final MSR, August 2018 Introduction 3-19 North Tahoe and Martis Valley MSR Tahoe Basin Community Plan Update (in process) Tahoe City Area General Plan (Part 1 , Part 2 , and Part 3 ) Tahoe City Community Plan (Part 1 and Part 2 ) Tahoe Vista Community Plan West Shore Area General Plan (Part 1 , Part 2 , Part 3 , Part 4 , Part 5 , Part 6 ) *Not included in the Tahoe Basin Plan Update In most cases the General Plan land-use designation in each of the above community plans is consistent with zoning. In addition to these existing plans, several plan updates are proposed for the Tahoe region. Community input into the County planning process is facilitated by two advisory councils in the region including: • North Tahoe Municipal Advisory Council • Squaw Valley Municipal Advisory Council In the Tahoe ZONING IN EASTERN PLACER COUNTY Basin, Placer County closely coordinates with the Tahoe Regional Planning Agency (TRPA) and many of the Community Plans are jointly adopted by both agencies, consistent with their Memorandum of Understanding. TRPA was established in 1969 and its purpose is to protect water quality and other natural features associated with Lake Tahoe. The bi-state compact between California and Nevada which established TRPA was ratified by the U.S. Congress. TRPA coordinates regional planning efforts, reviews development and redevelopment, provides regulatory enforcement, and facilitates and manages environmental restoration projects. TRPA’s Regional Plan Update, approved in 2012, allows local governments some flexibility in how goals are met through the adoption of Area Plans. Details about TRPA and its policies can be found at this website: http://www.trpa.org/about-trpa/. Please note that TRPA and Placer County have a MOU that requires coordinated planning among both agencies. Updates to the County General Plan (and Community Plans) are currently proposed in the North Tahoe region as listed in Table 3.8 below. Draft Final MSR, August 2018 Introduction 3-20 North Tahoe and Martis Valley MSR Table 3.8: Proposed Updates to General Plan in North Tahoe Region Name of Plan Update Website that contains the details Martis Valley West Parcel https://www.placer.ca.gov/departments/comm Specific Plan unitydevelopment/envcoordsvcs/eir/martisvalle ywestparcel Tahoe Basin Community Plan https://www.placer.ca.gov/departments/comm Update unitydevelopment/planning/tahoebasinareaplan The proposed Tahoe Basin Community Plan update is being led by Placer County in coordination with the Tahoe Regional Planning Agency. The proposed Plan update has several sub-sections including: • Greater Tahoe City Area • North Tahoe East Plan Area • North Tahoe West Plan Area • West Shore Plan Area The geographic extent of this Plan is shown in Figure 3.4, TRPA Area Plan Boundaries. Please note that the Squaw Valley and the Alpine Meadows Community Plans are NOT included in the Tahoe Basin Plan Update. In addition to the above plans, Placer County also has a Well Construction Ordinance which regulates the construction of water wells throughout the County. El Dorado County The General Plan for El Dorado County was developed in 1996 and was subsequently suspended in 1999 by a court order (“Writ of Mandate”) from the Sacramento Superior Court on CEQA grounds. The General Plan was updated and newly adopted on July 19, 2004 by the Board of Supervisors and ratified by public referendum in March 2005. In 2006, El Dorado County entered into a legal settlement agreement with a plaintiff group, allowing full implementation of the 2004 General Plan. GOAL 2.10 of the 2004 County General Plan applies to the Lake Tahoe Basin and aims “To coordinate the County’s land use planning efforts in the Tahoe Basin with those of the Tahoe Regional Planning Agency”. The Plan has five policies related to this goal including the following: • The County shall apply the standards of the Regional Plan for the Tahoe Basin and the Code of Ordinances and other land use regulations adopted by Tahoe Regional Planning Agency in acting on applications for proposed land uses in the Tahoe Basin (Policy 2.10.1.1). • The County shall work with the Tahoe Regional Planning Agency (TRPA) and other appropriate state and federal agencies to identify lands capable of supporting Draft Final MSR, August 2018 Introduction 3-21 North Tahoe and Martis Valley MSR affordable housing development without jeopardizing attainment of the Environmental Thresholds identified by TRPA (Policy 2.10.1.2). • The County shall work with the Tahoe Regional Planning Agency to identify and prioritize the completion of additional Community Plans within the County’s jurisdictional area of the Tahoe Basin (Policy 2.10.1.3). • The County shall cooperate with TRPA in the implementation of actions recommended in TRPA’s periodic threshold evaluation reports (Policy 2.10.1.4). • The County may impose more stringent regulations where TRPA does not limit the County’s authority to do so (Policy 2.10.1.5). In addition to the above policies, the 2004 General Plan also contains several implementation measures. El Dorado County shares responsibility for land use regulation within the Lake Tahoe region with the Tahoe Regional Planning Agency (TRPA). In TRPA’s 2012 Regional Plan Update, it emphasizes Plan implementation through area plans prepared by the Counties, instead of the direct review by TRPA of most development permits. El Dorado County and TRPA are considering potential adoption of the Updated Meyers Community Plan; however this Plan is not within this MSR study area. It is likely that within the next several years, El Dorado County will complete an area plan for the remaining portion of the County that is within the Tahoe Basin. Nevada County The eastern portion of Nevada County encompasses the Town of Truckee, Soda Springs, Donner Lake, Martis Valley, and Juniper Mountain in whole or part. The Nevada County General Plan is the long-term policy guide for the physical, economic and environmental future of the County. It is comprised of goals, objectives, policies, and implementation measures, which are based upon assessments of current and future needs and available resources. The Nevada County General Plan was adopted in 1996 and amended in 2008 (Safety Element) and 2010 (Circulation/Housing Element). The 2014-2019 Housing Element was adopted on June 24, 2014. In addition, the Safety and Noise Elements were also updated in 2014. Despite these updates, several of the County’s General Plan elements which are pertinent to the provision of public services are over 20-years old, including the water, air quality, open space, and recreation elements. Town of Truckee The Town of Truckee was incorporated in 1993 and adopted its first general plan in 1996. In November of 2006 the Town adopted a new plan called “Town of Truckee 2025 General Plan” The Plan’s Housing Element was updated in January 2015. Nevada LAFCO oversees the Town’s boundaries and sphere of influence. The Towns “Planning Area Boundary” extends over eight miles into Placer County but excludes the Lake Tahoe basin that forms TRPA’s boundaries. Several districts studied in this MSR serve areas within the Town of Truckee including the Tahoe Forest Hospital District and the Truckee Tahoe Airport District. The Town’s General Plan is available on-line at: Draft Final MSR, August 2018 Introduction 3-22 North Tahoe and Martis Valley MSR http://www.townoftruckee.com/departments/planning-division/plans-and-regulations. Truckee River Operating Agreement The Truckee River Operating Agreement (2008) (TROA), is a regional planning effort which regulates, and monitors water rights within the Tahoe Region, the Truckee River Watershed, Pyramid Lake and the Carson River. Improvement of the operational flexibility of Truckee River reservoirs is an aim of the Agreement. TROA caps water rights in the Tahoe Region at 34,000 acre-feet annually for surface water and groundwater. Within the 34,000 acre feet, 23,000 acre-feet per year are allocated for use in California and 11,000 acre-feet per year in Nevada. Tahoe Regional Planning Agency (TRPA) The Tahoe Regional Planning Agency (TRPA) is a bi-state (California and Nevada) regional environmental planning agency that is focused on restoring Lake Tahoe and supporting existing communities near the Lake in a sustainable fashion. TRPA’s 2012 Lake Tahoe Regional Plan contains new policies that pair land-use regulations with incentives for property owners to increase ecosystem restoration. Environmental redevelopment of outdated properties is encouraged in conjunction with restoration of Lake Tahoe’s environment. Priorities of the 2012 Regional Plan include: 1. Accelerate water quality restoration 2. Help create walkable communities with alternative transportation options 3. Streamline the permitting process and integrate Area Plans with the Regional Plan As part of TRPA’s 2012 update to the Regional Plan, “Area Plans” have been or will be prepared in conjunction with each affected County. The geographic extent of the Area Plans (preliminary) is shown in Figure 3.4, TRPA Area Plan Boundaries. This new system of regional and area plans will reduce the layers of overlapping permit requirements. As part of the process, TRPA will review and approve the area plans for conformance with its Regional Plan. Development within each area will be reviewed annually to ensure it meets the adopted standards. Large-scale projects and permitting in sensitive areas would need a permit directly from TRPA. Transportation and Sustainability Plans Two laws (SB 375 and SB 215), passed by the CA legislature in recent years, establish a relationship between LAFCo and regional transportation plans, including Sustainable Community Strategies. Senate Bill (SB) 375 (Steinberg) also known as the Sustainable Communities and Climate Protection Act of 2008, focuses on coordinating regional planning to manage growth and land use in a way that will reduce vehicle trips and carbon emissions. New requirements resulting from SB 375 include directives to CARB on Regional GHG Targets, developing Sustainable Communities Strategies, Scoping Plans, Regional Housing Needs Assessments, CEQA Draft Final MSR, August 2018 Introduction 3-23 North Tahoe and Martis Valley MSR streamlining, and transit priority projects. SB 375 provides that Sustainable Communities Strategies do not regulate local land use land, and further provides that local land use plans and policies (e.g., general plan) are not required to be consistent with either the Regional Transportation Plan or Sustainable Communities Strategies. Rather, the strategies form a basis for determining eligibility of transportation or residential infill projects for CEQA streamlining incentives that cities or counties may choose to offer under SB 375. SB 375 also requires that metropolitan planning organizations in California consider the spheres of influence that have been adopted by the LAFCOs within its region [GC § 65080(b)(2)(F)]. Senate Bill (SB) 215 (Wiggins), acknowledges that when preparing to make boundary decisions, LAFCOs must consider 15 specified factors, such population density, regional housing needs, local general plans, and environmental justice. Furthermore, LAFCOs are encouraged, but are not required, to consider regional goals and policies. By controlling the boundaries of local governments, LAFCOs can influence the time, location, and character of land development. SB 215 adds regional transportation plans to the list of factors that LAFCo must consider before making boundary decisions. SB 215 was chaptered as GC § 56668 in the year 2009. Within the study area of this MSR, regional transportation planning is divided into two geographical areas: 1. The Lake Tahoe Basin is under the jurisdiction of TRPA and the Tahoe Metropolitan Planning Organization (TMPO). 2. The outlying areas such as Martis Valley, the Hwy corridors and Donner Summit rely upon Placer County for their transportation planning. In the Lake Tahoe Basin, three integrated regional transportation planning authorities are active including: 1) Tahoe Regional Planning Compact (PL 96-551) planning requirements, carried out by the TRPA3; 2) Regional Transportation Planning Agency (RTPA) for the California portion of the Lake Tahoe Basin, and 3) The Metropolitan Planning Organization for the Tahoe Region (TMPO), as designated by federal law. Additionally, the Tahoe Transportation District4, the Tahoe Transportation Commission5 and Tahoe Area Regional Transit (TART)6 each provide transportation planning and/or services in the north Lake Tahoe area. 3 http://www.trpa.org/ 4 http://www.tahoetransportation.org/ 55 http://tahoempo.org/ttc.aspx?SelectedIndex=7 6 http://www.placer.ca.gov/Departments/Works/Transit/TART.aspx Draft Final MSR, August 2018 Introduction 3-24 North Tahoe and Martis Valley MSR TART provides comprehensive bus service on established routes along Highways 89 and 267 and serves both geographic study areas including north and east Lake Tahoe and the outlying areas of Martis Valley, the Hwy 89 and 267 corridors and Donner Summit. In the northern portion of the study area (Martis Valley, the Hwy 89 and 267 corridors and Donner Summit) the Placer County Transportation Planning Agency7 provides the regional transportation planning services. For the Lake Tahoe Basin, the Regional Transportation Plan is the transportation element of TRPA’s Lake Tahoe Regional Plan, approved in December 2012. Also as required by SB 375, TRPA developed the Sustainable Communities Strategy8 in December 2012. The Strategy emphasizes planning for walkable town centers, forecasting the distribution of development, providing a transportation system to meet forecast demand, and protecting natural resources. The Regional Transportation Plan (RTP), including the Sustainable Communities Strategy, is proposed to be updated again in 2016. Since this MSR does not include any proposed adjustments to a sphere of influence, the provisions of SB 215 are not applicable at this time. LAFCo and associated districts and agencies are aware of the coordination prescribed by SB 375 and SB 215. Additionally, the sponsors of the update to the Lake Tahoe Basin Regional Transportation Plan may wish to consider the SOI for the districts described in this MSR, consistent with the provisions of SB 375 and SB 215. District/Agency Plans Individual service providers may have their own individual plans that may be adopted by their elected Board of Directors. These plans may include Urban Water Management Plans, Strategic Plans, Capital Improvement Plans, and others. Summary of Growth and Population This section described general background data on existing and projected population levels to support the determinations that the Commission will make when approving this MSR. This information on population and growth relates to the demand for future services and infrastructure that local agencies provide. In addition to the information provided in this Chapter, additional details on population and housing are provided for each specific district analyzed in Chapters 6 to 18. 7 See http://pctpa.net/ and http://www.placer.ca.gov/bos/committees-and-commissions/placer-county-transportation- planning-agency 8 The Sustainable Community Strategy is available on-line at: http://www.tahoempo.org/rtp_final/TAHOE%20RTP%2003%20Sust%20Commtys%20Strategy.pdf Draft Final MSR, August 2018 Introduction 3-25 Figure 3-4: Planning Areas by TRPA North Lake Tahoe and Martis Valley MSR The Lake Tahoe and Martis Valley area is geographically separated from the western county by the Sierra Nevada Mountains. This geographic distance has facilitated the evolution of a unique set of historical, political, demographic, and institutional differences as compared to the western County. One of those differences is that tourism and visitation (including vacation home owners) play a substantial role in the demand for services from local agencies. Additionally, the region is sensitive to seasonal variations in temperature and precipitation with cold snowy winters supporting an economically important commercial ski industry. The region is also sensitive to the water quality of Lake Tahoe which supports an economically important summer resort and recreation visitor serving industry. The institutional differences in the eastern County includes the greater role of independent districts in providing public services. In this region, since there are no cities, the local independent district is the local “government” that most residents relate to directly. Placer County does, however, actively engage in land-use issues, public road improvements and maintenance, and many other County activities. Because of these differences, traditional indicators of economic growth such as new housing starts, commercial square footage, and building permit counts may not be the best way to measure or predict the demand for future public services. Instead, favorable weather conditions, access to Reno and Truckee airports and train stations, and the economic situation of the SF Bay area may be factors that promote visitation to Lake Tahoe and therefore increase demand for public services. Before LAFCO prepares the next MSR for this region in five years (i.e. 2021), it is recommended that the Commission consider which indicators or metrics it wishes to use to assess existing and future growth for this unique region. 3.6 DISADVANTAGED UNINCORPORATED COMMUNITIES Overview of Regulations and Policies for Disadvantaged Unincorporated Communities SB 244, which became effective in January 2012, requires LAFCo to consider the presence of any Disadvantaged Unincorporated Communities (DUCs) when preparing a MSR that addresses agencies that provide water, wastewater or structural fire protection services. By definition, a DUC consists of at least 10 dwelling units in a fringe, island, or legacy community with a median household income of 80 percent or less of the statewide median household income (MHI). This state legislation is intended to ensure that the needs of these unincorporated communities are met when considering service extensions and/or annexations, in particular, water, wastewater, drainage and structural fire protection services. Draft Final MSR, August 2018 Introduction 3-27 North Tahoe and Martis Valley MSR The Wolk Bill created several definitions, in both LAFCo and planning law, including9: 1. “Community” is an inhabited area within a city or county that is comprised of no less than 10 dwellings adjacent to or in close proximity to one another; 2. “Unincorporated fringe community” is any inhabited and unincorporated territory that is within a city’s SOI; 3. “Unincorporated island community” is any inhabited and unincorporated territory that is surrounded or substantially surrounded by one or more cities or by one or more cities and a county boundary or the Pacific Ocean; 4. “Unincorporated legacy community” as a geographically isolated community that is inhabited and has existed for at least 50 years; and 5. “Disadvantaged unincorporated community” is inhabited territory of 12 or more registered voters that constitutes all or a portion of a community with an annual MHI that is less than 80 percent of the statewide annual MHI. Since the entire North Lake Tahoe and Martis Valley area is unincorporated (with the exception of Truckee) there are no unincorporated fringe communities or unincorporated island communities in the region. All the communities studied in this MSR are connected by state highways and although they are rural, they are not necessarily “geographically isolated”. However, there are small sub-areas in which residents with incomes that are less than 80% of the statewide annual MHI reside and these can be considered as “disadvantaged unincorporated communities” (#5). The California Department of Water Resources (DWR) has developed a mapping tool to easily determine the location of disadvantaged communities (DACs)10. DACs are slightly different from DUCs. DACs are identified using the definition provided in DWR's Proposition 84 and 1E IRWM Guidelines, dated August, 2010. The maps and geographic information system files are derived from the US Census Bureau's American Community Survey and are compiled for the five-year period 2006-2010. DWR has included in the maps a calculated field which indicates the DAC status for different census geographies (Place 11, Tract, and Block Group). Since both DACs and DUCs are determined using a threshold MHI of less than $48,706 (80 percent of the Statewide MHI), the DWR mapping tool is helpful to LAFCo and other agencies. Within the MSR study area, the communities of Soda Springs, Kings Beach, Carnelian Bay, and neighborhoods within Tahoe City are recognized by the Department of Water Resources as DACs. 9 State of California, Senate Bill 244 (Wolk Bill) (October 7, 2011). 10 Details available on Department of Water Resources IRWM Grant Program, Disadvantaged Communities (DAC) Mapping Tool. www.water.ca.gov/irwm/grants/resourceslinks.cfm. 11 The U.S. Census Bureau identifies “census designated place” as the statistical counterpart of a city in that it is a named place with a concentration of residents, housing, and commercial activity, but is located in a county’s unincorporated territory. Draft Final MSR, August 2018 Introduction 3-28 North Tahoe and Martis Valley MSR To address DUCs at the local level, the Wolk legislation requires cities and counties to review and update the land use elements of their general plans to map and analyze the service needs of DUCs within or adjacent to their SOIs. Nevada County, updated the land use element of their general plans in 2014, in accordance with the Wolk legislation. When Placer County updated its General Plan in May 2013, the Land Use Element considered disadvantaged unincorporated communities using a specialized methodology that was different from that utilized in this MSR. The County’s methodology applied a parcel density analysis where areas with a density of at least 250 parcels per square mile were identified. The density areas were analyzed to locate sub-areas with a median household income less than 80 percent of the median household income of the state (2000 Census data). Census block groups with a median income of less than $37,994 were included in the County’s analysis. Using this specialized methodology, the County determined that there are no legacy communities within Placer County (Placer County, 2013). As explained herein, this MSR utilizes a different methodology and utilized the 2010 census in combination with other data to identify DUCs located within the boundary area of eight districts including Donner Summit PUD, McKinney Water District, North Tahoe Fire Protection District, North Tahoe Public Utility District, Tahoe City Public Utility District, Tahoe Forest Hospital District, Tahoe-Truckee Sanitation Agency, and the Truckee Tahoe Airport District as detailed in the following pages. LAFCo DUC Policies With the implementation of SB 244 in 2012, the CKH Act now requires municipal service reviews to include written determinations with respect to the location and characteristics of any DUC within or contiguous to a City’s SOI, and the present and planned capacity of public facilities, adequacy of public services, including water, sewer, and structural fire protection, within these DUCs. Placer LAFCO does not have specific policies related to the defining characteristics of DUCs. Socio-Economic Analysis A closer examination of socio-economic factors in the North Lake Tahoe Region is provided in this section focusing on three factors: self-sufficiency, housing, and poverty. Self-Sufficiency Standard The Self-Sufficiency Standard is a commonly used assessment based on the amount of income it takes to meet basic needs, without public or private assistance. It is based on all major budget items faced by a working family: housing, child care, food, health care, transportation, taxes, etc. and allows for work-related expenses such as transportation, taxes, and when there are young children, childcare. The Self-Sufficiency Standard varies geographically and is calculated on a county-by-county basis. The resulting Standards are basic needs budgets that are minimally adequate. Data on most recently completed Standard for each state and for every county in California is available on this website: http://www.selfsufficiencystandard .org/pubs.html. This data shows that in Placer County a three-person family consisting of 2 adults and 1 school-aged child would need an income of Draft Final MSR, August 2018 Introduction 3-29 North Tahoe and Martis Valley MSR $54,441 annually to be considered self-sufficient. This number takes the following costs into consideration: housing, child care, food, transportation, health care, miscellaneous, and taxes. Housing The following data is applicable only to the unincorporated areas of Placer County in the North Lake Tahoe Region. The data is not applicable to those portions of Nevada County or El Dorado County that were studied in this MSR. In the North Lake Tahoe Region of Placer County, the total number of housing units is estimated to be 12,000 dwellings. Most of these dwelling units (8,115) are vacation homes that are vacant for most of the year. The total number of occupied housing units is 3,885 units. Most of the housing units (9,107) are single family detached units. 1,109 of the units are in a triplex or quadplex. 734 of the units are in a multi-plex structure consisting of five to twenty attached units. Details are shown in Figure 3.5, below. Figure 3.5 Housing Types, # Units in Structure 20 or more units 1% 10 to 19 units 5 to 9 units 1% Mobile home 4% 3% 3 or 4 units 9% 2 units 4% 1-unit, attached 2% 1-unit, detached 76% Source: http://factfinder.census.gov for Lake Tahoe CCD, Placer County, California 37% of the dwelling units in the region were constructed in the years 1970 to 1979. 40% of the dwellings have three bedrooms. 29% are larger with 4-5 bedrooms. 28% are smaller with two or fewer bedrooms. Home prices in the region have risen slightly since the great recession and 40% of the homes have an estimated value of ranging from $500,000 to $999,999. 10% of the homes are more Draft Final MSR, August 2018 Introduction 3-30 North Tahoe and Martis Valley MSR expensive with property values exceeding $1million. 50% are less expensive with value ranging from less than $50,000 to $499,999. Of the 3,885 permanently occupied housing units, 57.5% ( 2,232) are owner-occupied. The remaining 1,653 units are permanently occupied by renters. Of the 2,232 permanent owner occupied units, 1,512 of the units have a mortgage. The remaining owner occupied units (32%) do not have a mortgage. Families that spend more than 30 percent of their income on housing (rent/mortgage) are considered to be burdened by high housing costs. The Census Bureau, American Community Survey, provides annual estimates of the percentage of families paying a high percentage of their income on rent or mortgage payments. Their database at: http://factfinder2.census.gov was queried for the north Lake Tahoe region and the results for the year 2013 are shown in Figure 3.6 below. 800 700 600 500 400 300 200 100 0 As shown in the above graph, of the permanent residents, 55% of renter households and 61% of mortgage paying households have housing costs that exceed 30% of their income and are therefore considered financially burdened by housing costs. The determination that a household which spends 30% or more of income on housing is financially burdened is based upon a historical practices of the federal HUD and practices of private mortgage lenders (US Census Bureau, 2008). When analyzing national trends, Schwartz and Wilson found that California has the highest percentage of mortgaged homeowners with housing cost burden, as Draft Final MSR, August 2018 Introduction 3-31 sdlohesuoH fo # Figure 3.6: GROSS RENT/MORTGAGE AS A PERCENTAGE OF HOUSEHOLD INCOME Renters Mortgage holders Percentage of Household Income Paid in north Lake Tahoe, 2013 North Tahoe and Martis Valley MSR compared to other states. Younger (under 25) householders and older householders (over 65) have a higher share of housing-cost burden than other age groups (US Census Bureau, 2008). Poverty By considering data on financial hardship, such as food stamp usage rates and poverty (in this case by zip code) one can gain a greater understanding of where there may be opportunities for community investments and services. Table 3.9 below contains data from the American Community Survey on food stamp usage and poverty rates for each of the zip code areas located within the study area for this MSR. The food stamp program is now called Supplemental Nutrition Assistance Program (SNAP). The 5th column of the table displays information about population poverty status. Poverty status is determined for each household using federal thresholds established annually by the Census Bureau in accordance with the Federal Office of Management and Budget. Poverty thresholds vary by family size and composition. It should be noted that the margin of error for the data presented in the table below from the American Community Survey is quite high and ranges from 1.65 to 57.14 percent (U.S. Census Bureau, 2013). Table 3.9: Analysis of Financial Hardship by Zip Code Zip codes Community Total # Percent of Total Percent of Households Households Permanent Total in Zip Code Receiving Population Population Food in Poverty Stamps 95728 Soda Springs 262 0 495 0 96140 Carnelian Bay 484 0 1,116 4.48 96141 Homewood 367 0.82 759 2.64 96142 Tahoma 283 9.19 666 15.02 96145 Tahoe City 1,262 3.49 2,975 7.8 96146 Olympic Valley 318 0 853 10.32 96148 Tahoe Vista near 264 782 5.63 3.79 Hwy 267 96160 Truckee (near data not available Airport) 96161 Truckee 7,087 4.67 18,104 9.39 Draft Final MSR, August 2018 Introduction 3-32 North Tahoe and Martis Valley MSR 96162 Nordon data not available 95604 Neighborhood 21 0 44 0 between Tahoe Vista and Carnelian Bay 95724 Sugar Bowl data not available Data source: http://maps.communitycommons.org/viewer/ The highest rate of poverty and food stamp usage is in the unincorporated area of Tahoma, which has a poverty rate of 15 percent, as shown in Table 3.9, above. Interestingly, the federal data shown in the above table indicates that the community of Soda Springs has zero percent food stamp usage and poverty; however state data described elsewhere in this MSR indicates Soda Springs can be classified as an unincorporated disadvantaged community. Based on the above data, Placer LAFCO may wish to encourage investments and efficiencies in public services in the communities of Tahoe City, Olympic Valley, Tahoe Vista, and Tahoma. Tahoma is partially in El Dorado County and El Dorado LAFCO may wish to encourage investments in this community. Similarly, Nevada LAFCo may wish to encourage investments in Truckee and Soda Springs. Grants that are available for disadvantaged unincorporated communities are described in the next paragraph. It is important to note that in eastern Placer County, DUC’s tend to be spatially distributed as small geographic pockets. Each of the communities described in this MSR as a DUC has adequate fire protection, water, and wastewater services. Grants for Disadvantaged Unincorporated Communities Cap and Trade Funds: AB 32 (Global Warming Solutions Act of 1996) requires the reduction of greenhouse gas emissions back down to 1990 levels by 2020 within California. AB 32 required the California Air Resources Board to administer this program. Facilities subject to the cap must obtain permits (called allowances) to emit these GHG. These allowances are auctioned by the state, and businesses can then sell or trade them. California’s cap-and-trade program was launched in November 2012 and has generated hundreds of millions of dollars in revenue. SB 535, signed into law in September 2012, requires that 25 percent of the cap-and- trade funds go to projects that will benefit disadvantaged areas and that at least 10 percent must be allocated to projects actually located in disadvantaged communities. The law defines “disadvantaged communities” as those that are disproportionately affected by pollution and suffering from high concentrations of unemployment, low levels of homeownership, high rent burden, and low levels of educational attainment. Based on this methodology it appears that DUCs in Placer County do not qualify for cap and trade funds; however, the California Air Resources Board has maps for evaluating benefits to disadvantaged communities and has additional information about potential funding opportunities. See their website at: http://www.arb.ca.gov/cc/capandtrade/auctionproceeds/535investments.htm for more information. Draft Final MSR, August 2018 Introduction 3-33 North Tahoe and Martis Valley MSR Safe Drinking Water State Revolving Fund: The California Department of Public Health administers the Safe Drinking Water State Revolving Fund which provides low interest loans to fund water infrastructure projects and public water system planning. Disadvantaged communities that are unable to afford loans for water systems may be eligible for these grants. Projects that solve public health and significant compliance issues are emphasized by the grant funders. State Water Resources Control Board Revolving Fund Program: The U.S. Clean Water Act (amended in 1987) established the Clean Water State Revolving Fund program. Through this program, low interest financing agreements for water quality projects may be provided to state and local governments. $200 and $300 million is offered to eligible projects each year across the country. Proposition 1, Water Quality, Supply, and Infrastructure: This water bond measure was approved by California voters on November 4, 2014. Proposition 1, known as the Water Quality, Supply, and Infrastructure Improvement Act of 2014 authorized $1.4 billion for water-quality projects, as part of Integrated Regional Water Management Implementation and Planning efforts in each hydrologic region of the State. The $1.4 billion in funding includes $260 million for drinking water in disadvantaged communities. Community Development Block Grant Funds: This program began in 1974, and is administered by the federal Housing and Urban Development (HUD). The Community Development Block Grant Funds program provides annual grants on a formula basis to allow communities address a wide range of unique community development needs. In Placer County the Community Development Resource Agency administers the CDBGF program. Greenhouse Gas Reduction Fund: California’s Greenhouse Gas Reduction Grant and Loan Program contributes towards capital investments in recycling manufacturing facilities and composting/digestion infrastructure. CalRecycle adminsters this program whose aim is to reduced greenhouse gas emissions and to realize economic benefits in disadvantaged communities. Ideally, material can be diverted from landfills and utilized to produce beneficial products such as compost or bio-digesters. Grants may also be used to expand infrastructure for manufacturing products with recycled content fiber, plastic, or glass. Details are available on the CalRecycle website at: http://www.calrecycle.ca.gov/Climate/GrantsLoans/. Districts with DUC’s Eight of the thirteen service providers analyzed in this MSR serve unincorporated disadvantaged communities including Donner Summit PUD, McKinney Water District, North Tahoe Fire Protection District, North Tahoe Public Utility District, Tahoe City Public Utility District, Tahoe Forest Hospital District, Tahoe-Truckee Sanitation Agency, and the Truckee Draft Final MSR, August 2018 Introduction 3-34 North Tahoe and Martis Valley MSR Tahoe Airport District. Details regarding DUCs within these districts are provided in the paragraphs below. DONNER SUMMIT PUD The Donner Summit PUD boundaries, its SOI, and adjacent areas all contain DUC’s. The median household income (MHI) for the 95728 zip code is $42,57412 , which is lower than 80 percent of the statewide MHI. Additionally, the Department of Water Resources DAC Mapping Tool is shows that the Soda Springs area meets the definition of a DAC (and DUC). It should be noted that the portion of the PUD’s boundaries that lies within Nevada County seems to contain most of the DUC area. The residences and business that are within the District’s boundaries do receive adequate water, wastewater, and fire protection services as detailed in this MSR. Please see Chapter 7 for details on this District. MCKINNEY WATER DISTRICT A small portion of McKinney Water District‘s service area that lies in El Dorado County has been identified by the CA Department of Water Resources as a Disadvantaged Unincorporated Community13. This identification was made based upon data from the US Census ACS 2009- 2013 showing census tracts identified as disadvantaged communities (less than 80% of the State's median household income) or severely disadvantaged communities (less than 60% of the State's median household income) (DWR, 2015). Please see Chapter 8 for details on this District. NORTH TAHOE FIRE PROTECTION DISTRICT Within the North Tahoe Fire Protection District, Kings Beach and neighborhoods within Tahoe City are classified as DUCs (CDWR, 2014). There is some data that suggests that Carnelian Bay could potentially be a DUC; however additional research would be needed before making a final determination. As described in this MSR, the communities do receive water, wastewater, and fire protection services. No public health and safety issues have been identified. Please see Chapter 9 for details on this District. NORTH TAHOE PUBLIC UTILITY DISTRICT Within the North Tahoe Public Utility District, Kings Beach is classified as a DUC (CDWR, 2014). As described in this MSR, the community does receive water, wastewater, and fire protection services. No public health and safety issues have been identified. Please see Chapter 10 for details on this District. 12 2010 census data via American Fact Finder website at: <http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF>. 13 DUC’s are mapped at: https://gis.water.ca.gov/app/boundaries/ Draft Final MSR, August 2018 Introduction 3-35 North Tahoe and Martis Valley MSR TAHOE CITY PUBLIC UTILITY DISTRICT The Tahoe City Public Utility District serves portions of both Placer County and El Dorado County. Within its Placer County service area, there are no identified DUCs (CDWR, 2014). Within its El Dorado County service area (i.e. the southern portion of Tahoma and the Meek’s Bay area), DWR does classify this area as a “Disadvantaged Community Tract” meaning it meets the DUC criteria (CDWR, 2015). As described in this MSR, the communities do receive water, wastewater, and fire protection services. No public health and safety issues have been identified. Please see Chapter 14 for details on this District. TAHOE FOREST HOSPITAL DISTRICT Within the boundaries of the Tahoe Forest Hospital District (TFHD) the communities of Kings Beach, some neighborhoods within Tahoe City and Soda Springs meet the State’s standard for DUCs (i.e. income is less than 80 percent of the state median family income) (DWR, 2016). This MSR describes how the core services (water, sewer, and structural fire protection services) are adequately provided to disadvantaged communities within eastern Placer County. TFHD is not responsible for assuring that these services are adequately provided to disadvantaged communities. No health and safety issues have been identified within the DUCs. The hospital services that TFHD provides are available to those that reside and work within the DUCs. Please see Chapter 15 for details on this District. TAHOE-TRUCKEE SANITATION AGENCY Within the Tahoe-Truckee Sanitation Agency’s service area (North Tahoe PUD and Tahoe City PUD), Kings Beach and some neighborhoods within Tahoe City meet the states standard for DUCs of 80 percent of the state median family income. Additionally, limited data indicates that Carnelian Bay could potentially meet DUC criteria; however additional research would be needed prior to making a final determination. As described in this MSR, the communities do receive water, wastewater, and fire protection services. Please see Chapter 16 for details on this District. TRUCKEE TAHOE AIRPORT DISTRICT Within the boundaries of the Truckee Tahoe Airport District (TTAD), Kings Beach,some neighborhoods within Tahoe City, and Soda Springs meet the states standard for DUCs of less than 80 percent of the state median family income. Additionally, limited data indicates that Carnelian Bay could potentially meet DUC criteria; however additional research would be needed prior to making a final determination. This MSR describes how the core services water, sewer, and structural fire protection services are adequately provided to disadvantaged communities within eastern Placer County. TTAD is not responsible for assuring that these services are adequately provided to disadvantaged communities. TTAD is reviewing the feasibility of providing EMS Heliports in the Kings Beach Tahoe Vista area which will provide additional services to DUCs. The District currently has an education partnership Draft Final MSR, August 2018 Introduction 3-36 North Tahoe and Martis Valley MSR with the Boys and Girls Club in Kings Beach to provide education programs centered on Aviation STEM initiatives. Please see Chapter 18 for details on this District. 3.7 REFERENCES Beebe, Craig and Wheeler, Stephen M. 2012. Gold Country: The Politics Of Landscape In Exurban El Dorado County, California. Journal of Political Ecology Vol.19. 16-pages. Available on-line at: <http://jpe.library.arizona.edu/volume_19/beebe.pdf>. Accessed October 3, 2015. California Special Districts Association, Proposition 218 Guide for Special Districts, 2013. California, State of. Department of Finance. E-4 Population Estimates for Cities, Counties, and the State, 2011-2014, with 2010 Census Benchmark. Sacramento: California, State of., May 2014. Excel spreadsheet distributed via website. December 2014. <www.dof.ca.gov/research/demographic/reports/estimates/e-4/2011-20>. California, State of. Department of Water Resources (DWR) IRWM Grant Program, Disadvantaged Communities (DAC) Mapping Tool. <www.water.ca.gov/irwm/grants/resourceslinks.cfm>. California, State of. Senate Bill 244 (Wolk Bill), October 7, 2011. County of El Dorado Community Development Agency Long Range Planning Division. June 2014. 2013 General Plan Annual Progress Report Strategic Planning For Our Future. 78-pages. Available on-line at: <file:///C:/Users/Kateri/Downloads/ 2013%20General%20Plan%20Annual%20Progress%20Report%20Final%206-24-14.pdf>. County of Nevada. General Plan Land Use Element, adopted January 28, 2014. County of Placer. August 16, 1994. Placer County General Plan Update, Countywide General Plan Policy Document. Prepared by Crawford, Multari & Starr, et. al. Available on- line at: <http://www.placer.ca.gov/departments/communitydevelopment/ planning/documentlibrary/commplans>. Accessed October 15, 2015. Department of Water Resources. IRWM Grant Program, Disadvantaged Communities (DAC) Mapping Tool. Available on-line at: <www.water.ca.gov/irwm/grants/ resourceslinks.cfm>. Northstar Community Services District, Placer County Water Agency, and Truckee Donner Public Utility District. April 2013. Martis Valley Groundwater Management Plan. Authored by Brown and Caldwell and Balance Hydrologics, Inc. 193-pages. Available on-line at: <https://www.pcwa.net/files/docs/enviro/MartisValleyGMPFinal 07.22.2013.pdf>. Accessed 3Sept2015. Placer County. General Plan. A Countywide General Plan Policy Document. Section 1 Land Use. May 21, 2013. 14 pages. Available on-line at: <file:///C:/Users/Kateri/Downloads/LandUse.pdf> Draft Final MSR, August 2018 Introduction 3-37 North Tahoe and Martis Valley MSR Squaw Valley Public Service District. May 2007 as revised on June 1, 2007. Olympic Valley Groundwater Management Plan. Authored by Hydra Metrics LLC. 97-pages. Available on-line at: <http://www.water.ca.gov/groundwater/docs/GWMP/NL- 4_OlympicValley_GWMP_2007.pdf>. Accessed 29July2015. State of California, Department of Finance, E-4 Historical Population Estimates for City, County and the State, 1991-2000, with 1990 and 2000 Census Counts. Sacramento, California, August 2007. Available on-line at: http://www.dof.ca.gov/research/demographic/reports/estimates/e-4/1991-2000/. State of California, Department of Finance, E-4 Population Estimates for Cities, Counties, and the State, 2001-2010, with 2000 & 2010 Census Counts. Sacramento, California, November 2012. Available on-line at: <http://www.dof.ca.gov/research/demographic reports/estimates/e-4/2001-10/view.php> . State of California. Employment Development Department. Labor Market Information. Available on-line at: < http://www.labormarketinfo.edd.ca.gov/>. Accessed September 2015. State of California. Senate Bill 244 (Wolk Bill), October 7, 2011. State Water Resources Control Board. 2010 Integrated Report (Clean Water Act Section 303(d) List / 305(b) Report). State Water Resources Control Board. Nonpoint Source Pollution (NPS) Control Program. Available on-line at: <www.waterboards.ca.gov/water_issues/programs/nps>. U.S. Census Bureau. 2010. Retrieved January 25, 2016, from http://www.census.gov/2010census/. US Census Bureau. Who Can Afford To Live in a Home?: A look at data from the 2006 American Community Survey. 2008. Written by Mary Schwartz and Ellen Wilson. 13 pages. Available on-line at: <http://www.census.gov/housing/census/publications/ who-can-afford.pdf>. Accessed 1August2015. US Census Bureau. American Community Survey: 2009-13. Community Commons Mapping Tool- http://maps.communitycommons.org/viewer/. Accessed 3August2015. U.S. Geological Survey and Thodal, Carl, E. 1997. Water-Resources Investigations Report 97- 4072. Hydrogeology of Lake Tahoe Basin, California and Nevada, and Results of a ground Water Quality Monitoring Network, Water Years 1990-92. 58 pages. Carson City, Nevada. Available on line at: <http://pubs.usgs.gov/wri/1997/4072/report.pdf>. Draft Final MSR, August 2018 Introduction 3-38 North Tahoe and Martis Valley MSR Chapter 4 MUTUAL WATER COMPANIES The State Legislature has recently directed LAFCOs to consider the role and provision of private water services within their respective counties as it relates to supporting growth and development. The Legislature’s direction is contained in Assembly Bill 54 - Mutual Water Companies. Additional legislation affecting mutual water companies which has recently been signed by the Governor includes Assembly Bill 2443, Assembly Bill 1077, Assembly Bill 656, Assembly Bill 240, and Senate Bill 88. Table of Contents 4.1: Overview Mutual Water Companies................................................................. 4-2 4.2: New Legislation ......................................................................................... 4-3 4.3: Profiles Of Mutual Water Companies In Study Area .............................................. 4-7 4.4: Former Mutual Water Companies .................................................................. 4-11 4.5: MWCs Located Outside Study Area ................................................................ 4-11 4.6: For-Profit Water Utility Companies ................................................................ 4-12 4.7: References ............................................................................................. 4-21 Draft Final MSR, August 2018 Chapter 4, Mutual Water Companies 4-1 North Tahoe and Martis Valley MSR 4.1: OVERVIEW MUTUAL WATER COMPANIES The North Lake Tahoe and Martis Valley area has a number of mutual water companies, private water companies, small shared water systems, and private wells that provide water service in lieu of a public agency. Regulatory oversight for these systems varies depending on the type of entity and the number of connections served. The California Public Utilities Commission (CPUC) oversees private water companies including rates, service area, and levels of service. A list of all the major water systems that operate in Placer County is provided in Appendix #2, Placer County Water Systems. Table 4.1 below lists the private water companies operating in the MSR Study Area. Table 4.1: List of Private Water Companies in North Tahoe/Martis Valley/Soda Springs Study Area Name of Company Mutual Water For-Profit Water Company Company Agate Bay Water Co X Fulton Water Co X Glenridge Water Co X Lakeview Water Co X Madden Creek Water X Rainbow Mutual Water Co X Skyland/Nielsen Water Co X Squaw Valley Mutual Water Co X Tahoe Cedars Water Co X Tahoe Park Water Co X Tahoe Swiss Village Utility X Ward Well Water Co X This chapter focuses on mutual water companies. Both mutual water companies and companies owned by homeowner associations are exempt from CPUC regulation if they serve only their stockholders or members. Mutuals are private not-for-profit organizations and they provide water service to their customers from groundwater and surface water resources and they are affected by the same concerns for water quality, supply reliability, and costs as the public water providers. Shares in a mutual water company are appurtenant to specified lands. The California Corporations Code addresses the governance and organization of mutuals. The California Health and Safety Code addresses the public health operations of mutuals. The State Drinking Water Division helps to enforce the Health and Safety Code and it monitors two of the mutuals in this study (SVMWC and WWWC). Although many County Environmental Health Departments have water quality standards with which mutual water companies must generally comply, none of the three mutuals in this study are regulated by Placer County Environmental Health (PCEH, 2015); rather they are governed by state code. No other public agency oversees the operations of mutual water companies; hence the legislature has recently enacted laws granting LAFCo some oversight. Draft MSR, September 2016 Chapter 4 Mutual Water Companies 4-2 North Tahoe and Martis Valley MSR 4.2: NEW LEGISLATION The State Legislature has approved six new laws that apply to mutual water companies and these new laws are summarized in this section as listed below: • Assembly Bill 2443 (Rendon). 2014 • Assembly Bill 1077 (Holden). 2015 • Assembly Bill 656 (Garcia). 2015 • Assembly Bill 240 (Rendon). 2013 • Senate Bill 88 (Introduced by Committee on Budget and Fiscal Review). 2015. • Assembly Bill 54 (Solorio). 2011 Readers are encouraged to read the new laws in full and this summary contains links to the full text for your convenience. Assembly Bill 2443 Assembly Bill 2443 was signed by Gov. Jerry Brown in October of 2014 and it amends California’s Water Service Duplication Statute to allow cities the opportunity to provide recycled water service within the service area of private water companies, under some circumstances. The full text of AB 2443 is available at: http://leginfo.legislature.ca.gov /faces/billNavClient.xhtml?bill_id=201320140AB2443. AB 1077 AB 1077 was introduced by Assembly member Chris Holden (D-Pasadena) to enhance open meeting requirements on mutual water companies. This law was signed by Governor Brown on October 9, 2015. AB 1077 strengthens the Mutual Water Company Open Meeting Act by requiring all shareholders to be guaranteed, at a minimum, the right to teleconference into any meeting and prohibiting the water company's board from meeting exclusively in executive session. The full text of AB 1077 is available at: <https://leginfo.legislature.ca. gov/faces/billNavClient.xhtml?bill_id=201520160AB1077>. Assembly Bill 656 AB 656 is a bill introduced by Assemblywoman Cristina Garcia (58th AD) and signed into law by Governor Brown on September 3, 2015 to allow two or more mutual water companies and one or more public agencies, to enter into a joint powers agreement to provide lower cost insurance while also generating funds for technical assistance. AB 656 also is a vehicle to assist mutual water companies in applying for infrastructure and water quality improvement funding through water bond funds. This bill has passed both the Assembly and Senate. It was presented to the Governor for signature on 8/27/15. The full text of AB 656 is available at: <http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201520160AB656>. Draft MSR, September 2016 Chapter 4 Mutual Water Companies 4-3 North Tahoe and Martis Valley MSR Assembly Bill 240 Assembly Bill 240 was approved by the California Assembly and Senate and signed by Governor Brown on October 8, 2013. It is effective as of January 1, 2014 and codified in the California Corporations Code. The full text of AB240 is available at: https://leginfo.legislature.ca.gov /faces/billTextClient.xhtml?bill_id=201320140AB240. This law establishes several new requirements for mutual water companies including: • Mutual Water Company Open Meeting Act: Many of the requirements for open meetings and records that were previously applicable to homeowner associations under the Davis-Stirling Act are now applicable to mutual water companies, including posting of meeting notices in advance of meetings. This applies only to mutual water companies that operate a public water system serving 15 or more customer connections. See §§ Corporations Code 14305-14307 for more details. • Budget: The board of a mutual must adopt an annual budget prior to the start of each fiscal year. The board must contract with a certified public accountant or public accountant to conduct an annual review of the financial records and reports of the company, subject to generally accepted accounting standards. • New Powers Regarding Assessments, Rates and Charges: This allows mutuals to address the financial impact of having a member become delinquent. Corporations Code § 14304 now allows a mutual water company to include a provision in its articles or bylaws allowing the company to record a notice of lien against the real property of a member to secure the collection of rates, charges and assessments owed to the company by the member based on provision of water service to the property. • Expands Board Member Training Requirement: AB54 established a one-time requirement for board members of mutual water companies to complete a two-hour training on their duties as directors and the regulations applicable to mutuals. AB 240 expands this training requirement to occur at least once every six years. Directors who completed their training in 2012 will not need to repeat the training until 2018; however new directors will need to complete the training within six months of taking office. Draft MSR, September 2016 Chapter 4 Mutual Water Companies 4-4 North Tahoe and Martis Valley MSR • Transparent Records: Mutual water companies must now make specific documents, including agendas, minutes, budget, and water quality records available to shareholders and customers. Senate Bill 88 Senate Bill 88 was approved by the California Assembly and Senate and signed by Governor Brown in June 2015. It becomes effective as of January 1, 2016. It is codified in portions of the California Health and Safety Code, Public Resources Code, and Water Code. The full text of SB88 is available at: http://www.leginfo.ca.gov/pub/15-16/bill/sen/sb_0051- 0100/sb_88_bill_20150619_enrolled.html. This law establishes several new requirements that may be applicable mutual water companies including: • new reporting requirements mandate that all diverters submit their monthly diversion records each year. During dry water years, submittal of diversion records on a monthly basis may also be required. This new water measurement law affects water right holders and diverters who divert more than 10 acre-feet of water per year. • amendments to Section 377 of the Water Code, allowing civil liability of up to $10,000 for violations of water conservation programs or a State emergency regulation. • Provision to public water suppliers the power to impose civil fines of up to $10,000 for violations of water conservation programs, • Suspension of environmental review for certain water recycling and drought-related projects. • Authorization to the State Water Resources Control Board to require consolidation of water systems in disadvantaged communities in unincorporated areas or served by mutual water companies with a chronic lack of adequate, safe, and reliable drinking water. The State Water Resources Control Board is holding public informational meetings on the implementation of the new emergency regulations contained in SB 88 throughout California in November and December 2015. Assembly Bill 54 The California Legislature has recently enacted a series of amendments to various statutes to establish formal reporting relationships between LAFCOs and mutual water companies. Specifically, California State Assembly Bill 54 is intended to improve accountability to the public of mutual water companies. This Bill was approved and signed into law in 2011 and became effective January 1, 2012. It is codified in California Governance Code and Corporations Code. The Legislation requires these entities to: • File maps of their service areas with LAFCOs • Provide service information to LAFCOs when LAFCO prepares MSRs • Maintain a financial reserve fund as specified by AB54. • Comply with the California Safe Drinking Water Act Draft MSR, September 2016 Chapter 4 Mutual Water Companies 4-5 North Tahoe and Martis Valley MSR • Provide training to board members regarding the duties of board members, the duty to avoid contractual conflicts of interest and fiduciary duties, the duty to comply with the federal Safe Drinking Water Act, and regarding the long-term management of a public water system. Furthermore, a mutual water company is prohibited from expanding its boundaries without approval from the appropriate local agency formation commission. LAFCOs are also now encouraged to expand the scope of the municipal service review process to consider local mutual water companies. AB54 in its entirety is provided in Appendix 3 and is also available on the following website: <http://leginfo.legislature.ca.gov/faces/ billNavClient.xhtml?bill_id=201120120AB54>. AB 54 Provisions Directly Relating to LAFCO 1. Each mutual water company, except small companies with fewer than 15 customers, must submit their service area maps to LAFCO by December 31, 2012 (§ 14301.1a of the Corporations Code). 2. Each mutual water company must respond to information requests by LAFCO during preparation of municipal service reviews and sphere of influence update (§ 14301.1b of Corporations Code). 3. LAFCO is specifically authorized to annex a mutual’s service area to a city or special district, while maintaining the constitutional requirements of just compensation for the taking of any private property (§ 56375r of the Government Code). 4. When preparing or updating municipal service reviews and spheres of influence of cities and special districts that provide water service, LAFCO may report on whether nearby mutuals are complying with the Safe Drinking Water Act (§ 56430c and d of Government Code). Consistent with the legislative intent of AB 54, this report identifies and provides basic background information concerning existing mutual water companies operating in this MSR study region. It is recommended that LAFCO utilize the information contained herein to complete the following tasks: • Contact each mutual water company (in-progress as of October 2015). • Request that each mutual water company provide LAFCO with a map of its service area (in-progress as of October 2015). • Request additional information as deemed appropriate by LAFCO. • Encourage each mutual water company to undergo board training required under AB54 • Continue to study the compliance of mutual water companies with the Safe Drinking Water Act and issue a report of findings. • Post information about mutual water companies on the LAFCO website. • Establish formal lines of communication going forward. Due to a lack of information, it is premature to make a determination at this time regarding compliance of each mutual water company with the Safe Drinking Water Act and therefore the recommendations listed above suggest continuing study to issue a subsequent report. Draft MSR, September 2016 Chapter 4 Mutual Water Companies 4-6 North Tahoe and Martis Valley MSR 4.3: PROFILES OF MUTUAL WATER COMPANIES IN STUDY AREA Basic service information for each local mutual water company in alphabetical order is provided in the succeeding section. The three mutual water companies that operate in the North Lake Tahoe and Martis Valley area are listed in Table 4.2, below. Table 4.2: List of Mutual Water Companies in North Lake Tahoe and Martis Valley Business Name Website Community Rainbow Mutual Water Company None Neighborhood near Emigrant Gap and Rainbow Lodge. Squaw Valley Mutual Water Co. http://www.svmwc.com/ Alpine Meadows and Squaw Valley Ward Well Water Company None Tahoe City These three mutual water companies are described in more detail in the following paragraphs. Rainbow Mutual Water Company Mailing Address: 1 Emerson Street, San Francisco, Ca 94118 Alternative Address: 335 Maple Ave, Cotati, CA, 94931 Telephone: (530) 268-3329 Contact: Theresa A. Cole E-mail: not available Website: None Number of Shareholders: Approximately 24 Water System Number: Not listed in state database Corporation Number: C0574954 Rainbow Mutual Water Company is a non-profit company formed on 07/10/1969 to provide water service to 24 property owners located in the vicinity of Emigrant Gap and the Rainbow Lodge. The water supply is naturally occurring springs located on a private parcel (APN 066- 120-035) and is located in a rural, forested setting consisting of mostly granite outcroppings. The most notable geographic features in the neighborhood are the Rainbow Lodge and the south fork of the Yuba River. In 1999, the Rainbow Mutual Water Company was declassified as a public water system since they met the exclusion to the requirements of a public water system pursuant to the California Health and Safety Code Section 116280 (PCEH, 2015). Therefore, this water system is not regulated as a public water system and neither Placer County Environmental Health Draft MSR, September 2016 Chapter 4 Mutual Water Companies 4-7 North Tahoe and Martis Valley MSR Department nor the State Water Board Drinking Water Division maintains data for this system1. In 2007, the Rainbow Mutual Water Company entered into a water supply agreement with Rainbow Holding Company, Ltd. (Placer County, 2008) to share the water supplied by the springs. Since then the Rainbow Holding Company has suspended its corporate status with the Secretary of State’s office. The sufficiency of water supply and water pressure to provide fire flows has not been assessed by LAFCO. Squaw Valley Mutual Water Company Mailing Address: 248 Tiger Tail Road, Olympic Valley, CA 96146 Telephone: (530) 583-3674 Contact: Daniel Collin, Office Manager E-mail: info@svmwc.com Website: http://www.svmwc.com/ Number of Shareholders: 281 Water System Number: CA3110019 Corporation Number: C0244372 The Squaw Valley Mutual Water Company was founded by the land developers of the north side of Squaw Valley (close to Shirley Canyon) in 1950. Membership in the SVMWC is comprised of the land owners of parcels in this specific neighborhood along Sandy Way and Lanny Lane (Township 16 North, Range 16 East). There are 282 parcels in the Squaw Valley MWC service area. The Squaw Valley MWC provides service to 263 water connections which has an estimated population of 500 persons. The remaining 20 lots are vacant; eight of those lots are either scheduled to be developed or have construction in progress (SVMWC, 2015). There are no commercial hook-ups. This water system is classified as a “Community” system which utilizes ground water from the Olympic Valley Groundwater Basin as its only water source (Tahoe-Sierra IRWM, 2014). The groundwater is accessed via two wells, both located on the valley floor. A third well (eastern well) is not currently operating due to water quality issues. The Company’s website is quite detailed and it provides information on water pumping rates, fees for service, and Consumer Confidence Reports (per the Safe Drinking Water Act). Detailed information on the Company’s water service infrastructure, including the distribution pipes, is available in a 2008 Water Master Plan prepared by Auerbach Engineering Corporation, also available on the Squaw Valley MWC website. 1 Drinking Water Division database is at: <https://sdwis.waterboards.ca.gov/PDWW/JSP/SearchDispatch? number=&name=&county=PLACER&WaterSystemType=All&SourceWaterType=All&PointOfContactType=None&be gin_date=9%2F25%2F2009&end_date=9%2F25%2F2015&action=Search+For+Water+Systems>. Draft MSR, September 2016 Chapter 4 Mutual Water Companies 4-8 North Tahoe and Martis Valley MSR The sufficiency of water supply and water pressure to provide fire flows has not been assessed by LAFCO. In 2001, customers of the Squaw Valley Mutual Water Company rejected a proposed merger with the Squaw Valley Public Service District by eight votes (116-108)2. More recently, the Squaw Valley Mutual Water Company has been participating in the public review process for the proposed Village at Squaw Valley Specific Plan and associated EIR3. Ward Well Water Company Mailing Address: P.O. BOX 7553 Tahoe City, California 96145 Alternative Address: 1960 Twin Peaks Drive, Tahoe City, CA 96145 Alternative Address: 245 Pineland Dr., Olympic Valley CA, 96146 Telephone: (530) 581-2231 Contact: Kevin Finley, Vice President Alternative contact: Vincent Bruno, 530-581-2231 E-mail: Brunolandscapes@gmail.com Website: None Number of Shareholders: Not applicable Water System Number: CA3110031 Corporation Number: C0219109 Ward Well Water Company was formed as a non-profit company on 07/29/1947 to provide water service to a neighborhood on the west shore known as Sunnyside. Groundwater is the only water supply and it is accessed via three active wells (SWRCB, 2015). The Company has 224 water connections serving an estimated permanent population of 375 persons plus a visitor population of an additional 300 persons. This water system is classified as a “Community” system which utilizes surface water as its water source (Tahoe-Sierra IRWM, 2014). In July 2010, the Tahoe Regional Planning Agency (TRPA) approved a memorandum of understanding (MOU) with Ward Well Water Company which lays out specific operation and maintenance activities which are exempt from the TRPA code (TRPA, 2010c). Ward Well Water Company is regulated by the California Department of Public Health and the State Water Resources Control Board, Division of Drinking Water. Drinking water quality in the Lake Tahoe region is generally very good. The Ward Well Water Company regularly monitors water quality and reports the information to state regulators. An on-line water quality database4 reports that during the years 2004 to 2009, water from Ward Well Water Company met all state and federal water quality standards. However, five 2 Source: <http://www.tahoedailytribune.com/article/20010628/REGION/106285669>. 3 See EIR comment letter at: <http://www.placer.ca.gov/~/media/cdr/ECS/EIR/VSVSP/Comments%20on%20DEIR/comment_SVMWC.pdf>. 4 EWG water quality database at: <http://www.ewg.org/tap-water/whatsinyourwater/CA/Ward-Well-Water- Company/3110031/>. Draft MSR, September 2016 Chapter 4 Mutual Water Companies 4-9 !! !! !! !! !! !! ! ! !! !! !! !! !! !! !! !! !! !! !! !! ! ! ! !!! ! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! ! !!!!!! ! !! ! ! ! !! ! ! ! !! ! !! !! ! ! !! !! !! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! !! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! !! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! !! ! ! ! ! ! ! ! ! ! ! !!!!!!! !! !! !!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! !! ! ! ! ! ! ! !! ! ! ! ! ! !!! ! ! ! ! ! !! !! !! ! ! ! ! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! !! ! !! ! !! !! !! !! ! !! ! ! ! ! ! !! ! !! !! !! !! !! !! ! ! ! ! ! ! ! ! ! !! !! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!!!!! ! ! !!!!!!!!!!! !!!!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! !! ! ! ! !! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! !! !! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! !!! !! ! ! ! ! ! ! ! ! ! !!!!! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! !! !!! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! !!!! ! !! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! !!!!!!!!!!!!! !! !! ! ! ! ! !!!!!!! ! ! ! !!!!! ! ! ! ! !! ! ! !!! ! ! ! ! ! ! ! ! ! !! !!! !!!!!!! ! ! ! ! ! ! ! !!!! !!!!! ! ! ! ! ! !! !! !!!!!!!! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! !!!!!! ! ! ! ! !! !!! ! ! ! !!!!!! ! ! ! ! ! !!!!!!!!!!!!!!!!! ! !!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! !! ! ! ! ! ! !!! ! !! ! ! ! !!!! ! !!! ! ! ! ! ! !!!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! !!!!!!! !!!!!!!!!!! ! ! ! ! ! ! ! ! ! !!!!!!! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!!! ! ! !!!!! ! ! ! ! ! ! !! !!!!!!!!! !! ! !!! !! !!!!! !! !!!!!!!!!!!!!!! !!!! ! ! ! ! ! ! !!!! !! !!! ! !!! ! ! ! ! ! ! ! !!!!! !!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 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MCKINNEYRUBICONSPRINGSRD !! ! ! ! ! ! ! ! ! !! ! ! !!!! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! !!! ! ! ! !!! ! !!!! ! ! ! ! ! ! ! ! ! ! !!! ! ! !!! !! !!!! !!!!! ! ! ! !!! ! !!!!!! !! !!!!! ! ! ! ! !!! ! ! ! ! ! !!!!!! ! !!!!!!!! !!!!! ! ! ! ! ! N ¬« 267 AYAB VE NLAKEBLVD W LAKEBLVD MCKINNEYDR AINROFILAC ADAVEN TroutCreek W e Donner Creek st Junip erCreek W estForkGrayCreek Cold Creek EastMartisCreek Klondike Meadow JuniperCreek M onte C arlo Creek Creek aM rtis Cabin Creek W tse BrushCreek MiddleMartisCreek North Tahoe RockyWash Pub D l i i s c t r U ic ti t lity Creek rGiff DeepCreek NORTH TAHOE PUD C ai ar len n Pole Creek DeerCreek WatsonCreek C ! anyon ! A W g a a te te r C B o ay W F a u t l e to r n C o P N u o b D rt l i h i s c t T r U a ic t h i t l o it e y Silver Creek N P D u o is b r t t l r h i i c c T t U a t h il o it e y Fulton Water Co River BurtonCreek DollarCreek SquawCreek ee kcurT North Tahoe Public Utility Lakeview District Water Co ! BearCreek ! Creek Tahoe City Five Lakes TAHOE CITY T P a u h b o li e c C U i t t i y lity P D u is b t l r i i c c t Utility PUD District Washoe Heights Mututal Water Co Talmont Resort Improvement District ! ! Tahoe Park Water Co Grouse Canyon WardCreek W W a a r te d r W C e o ll Legend Timberland Water Co Water Districts Skyland/Nielsen Agate Bay Water Co BearPenCreek Water Co F La u k lt e o v n i e W w a W te a r t C e o r Co WillowCreek Creek Tahoe Pines/Tahoe Swiss M M Di a c s K d tr d i i n c e t n n e C y r E e s e t k a t W es a W ter ater Blackwood Village Water Co N D o is r t t r h ic T t ahoe Public Utility NorthForkBlackwoodCreek Skyland/Nielsen Water Co keerC T T a a h h o o e e C C e ity d a P r u s b W lic a t U e t r i l C ity o wderho nr MaddenCreek M C a r d e d e e k n D Ta is h t o ri e c t Park Water Co Po Water Tahoe Pines/Tahoe Swiss Village Water Co Tahoe City Barker Creek HomewoodCanyonPublic D U is ti t l r it ic y t Tahoe Cedars T D T a i i m s lm t b ri o e c n r t l t a R nd e s W or a t t e Im r p C r o ovement Water Co Ward Well Water Co McKinney Estates ! Washoe Heights Mutual Water Water District ! Co Wastewater Districts Creek North Tahoe PUD North Miller GeneralCreek Tahoe City PUD McKinneyCreek T P a u h b o li e c C U i t t i y lity » TRPA Bou M nd i a le ry s PLACERCO District ELDORADOCO 0 0.5 1 MillerCreek Data Source: County of Placer Transit Regional Planning Agency Dyett & Bhatia, 2013 R ubicon R vier N Co o u te n : t y S e W rv a i t c e e r p D ro is v t i r d ic e t r , s a i n n d M N a o r r ti t s h s V ta a r ll e a y re o n r o D t o sh n Meeko n s C w r e ee r k n S o u n m t m hi i s t m su a c p h .L on a ely Gsulc hthe Serene Lakes Water District, Alpine April 2015 Figure 7-1 PLACER COUNTY Tahoe Basin COMMUNITY DEVELOPMENT RESOURCE AGENCY Water & Wastewater GEOGRAPHIC INFORMATION SYSTEM DIVISION Area Plan Districts Document Path: C:\Users\conesi\Documents\ArcGIS\Packages\Figure 7-1 Water and Wastewater Infrastructure\v101\Figure 7-1 Water and WastewaterInfrastructure.mxd North Tahoe and Martis Valley MSR pollutants were detected in water samples and three of these (alpha particles, radium-226, and radium 228) exceeded health guidelines (EWG, 2008). The alpha particles and radium are likely naturally occurring in granite and other rock and soil/substrate in the Tahoe region; however continued monitoring is warranted. An EPA violation was also recorded for Initial Tap Sampling for Lead and Copper from August to December 2005. The sufficiency of water supply and water pressure to provide fire flows has not been assessed by LAFCO. 4.4: FORMER MUTUAL WATER COMPANIES Over the past years, several mutual water companies have experienced difficulty providing affordable or efficient water services and have been acquired by neighboring districts. To assist LAFCO in keeping track of these changes, Table 4.3 lists former mutual water companies. Table 4.3: Former Mutual Water Companies Name of Former Mutual Water Company Status Big Bend Mutual Water Company Annexed by Donner Summit PUD Lakeview Water Company Acquired by TCPUD in 2010 per judicial order from Placer County Judge Margaret Wells5. Lake Forest Utility Company Acquired by TCPUD in 2011 per judicial order Tamarack Mutual Water System In the 1990’s, this private water system requested that TCPUD purchase them and assume service responsibilities (TCPUD, 2014). Tahoma Meadows Mutual Water Company At the request of the customers/owners of this mutual water company, TCPUD acquired the water system and integrated it with the PUD in the summer of 2013. Washoe Heights Mutual Water Company Insufficient data 4.5: MWC LOCATED OUTSIDE STUDY AREA Several other mutual water companies are located in Placer County, but outside the study area for this MSR. A partial list of these mutual water companies is presented below in order to help LAFCO track. • Dutch Flat Mutual Water Company • Emigrant Gap Mutual Water Company • Folsom Lake Mutual Water Company • Golden Hills Mutual Water Company • Nyack Mutual Water Company • Rosecrest Mutual 5 Data source: <http://www.tahoedailytribune.com/news/8764626-113/tcpud-forest-lake-company>. Draft Final MSR, August 2018 Chapter 4, Mutual Water Companies 4-11 North Tahoe and Martis Valley MSR • Weimar Water Company • Winding Way Water Company Additional Information on Mutual Water Companies Many mutual water companies are members of the California Association of Mutual Water Companies and their website at: http://calmutuals.org/ contains more information. 4.6: FOR-PROFIT WATER UTILITY COMPANIES Nine water companies which are owned by a single owner or by investors and which are structured as for-profit companies operate in the Lake Tahoe/Martis Valley region. They are not mutual water companies since mutual water companies are non-profit and are owned by all the property owners served. Therefore, these privately owned water/utility companies are not subject to the new regulations enacted per Assembly Bill 54, Assembly Bill 656, Assembly Bill 240, and Assembly Bill 2443. These private water companies include: • Agate Bay Water Company • Fulton Water Company • Glenridge Water Company • Lake View Water Company • Madden Creek Water Company • Rainbow Springs Public Water System • Tahoe Cedars Water Company • Tahoe Park Water Company • Tahoe Swiss Village Utility • Timberland Water Company Contact information and other details about each for-profit private water company is listed below for information purposes. Agate Bay Company Mailing Address: 5424 Treeside Drive, Carmichael, CA 95608 Telephone: 530-546-3337 Contact: Steve Glazer, General Manager E-mail: data not available Website: http://www.agatebaywatercompany.com/ Number of Shareholders: data not available Water System Number: 3110012 CPUC Number: WTC 85 Corporation Number: C0431410 The Agate Bay Water Company was formed as a private for-profit company on 04/18/1962 to provide water to the Dollar Point neighborhood on the north shore of Lake Tahoe near Carnelian Bay. The Company has 580 active water connections serving a year round population of 250 and a maximum total (including visitors) population of approximately 2,500 Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-12 North Tahoe and Martis Valley MSR persons. This is classified as a “Community” water system and its water source is surface water (Tahoe-Sierra IRWM, 2014) consisting of a fresh water spring and surface water from Lake Tahoe. Mountain Springs Water Company was the predecessor of Agate Bay Water Company and its water supply permit was initially issued in 1955. Subsequently rights were conveyed to the Agate Bay Water Company which received its first formal permit from the CA Dept. of Public Health in 1973 as amended on August 6, 2001. The Company operates intake facilities, water mains and lines and a distribution system. The distribution system contains two pressure zones, referred to as the Lake Zone and the Spring Zone. Each Zone has its own gravity storage tank. Company infrastructure is described in more detail in the Placer County General Plan, Appendix A: Large Water Systems available on-line at: <http://relicensing.pcwa.net/documents/Library/PCWA-L-019.pdf>. Drinking water quality in the Lake Tahoe region is generally very good. The Agate Bay Water Company regularly monitors water quality and reports the information to state regulators. An on-line water quality database6 reports that during the years 2004 to 2007, water from Agate Bay Company met all state and federal water quality standards. However, nine pollutants were detected in water samples and four of these (alpha particle, radium-226, radium 228, and lead) exceeded health guidelines (EWG, 2007). Although the alpha particles and radium are likely naturally occurring in granite and other rock and soil/substrate in the Tahoe region, continued monitoring is warranted. The Consumer Confidence Report for this Company is available on the CPUC website7. In June, July, October, and December of 2012 the company failed total coliform water quality standards and was issued Citation 01-02-10[C]006 (CDPH, 2013). Additionally, the State Water Board issued an order to the Agate Bay Water company for non-compliance with the Total Coliform maximum contaminant level in March 2013 as detailed on the Water Board website at: <http://www.waterboards.ca.gov/drinking_water/ programs/documents/ddwem/dwp%20enforcement%20actions/Placer/2013/01-02-13R-001- 3110012-22.pdf>. A memorandum of understanding between TRPA and the Company allows the Company to conduct routine maintenance of water facilities under a TRPA exemption as detailed here: <http://www.trpa.org/wp-content/uploads/Appendix-RR_Agate-Bay-Water-Company.pdf>. Fulton Water Company Mailing Address: 515 Nightingale Rd, Carnelian Bay, CA 96140 Alternative address: P.O. Box 1709, Carnelian Bay, CA 96140 Telephone: (530) 583-3644 Contact: Craig A. Fox E-mail: fultonwater@yahoo.com Website: https://www.facebook.com/pages/Fulton-Water-Co/164368503581755 6 EWG water quality database at: <http://www.ewg.org/tap-water/whatsinyourwater2/CA/agate-bay-water- company/3110012/>. 7 <http://www.cpuc.ca.gov/PUC/Water/Consumer_Confidence_Reports.htm>. Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-13 North Tahoe and Martis Valley MSR Number of Shareholders: data not available Water System Number: CA3110015 CPUC Number: WTC 88 Corporation Number: C0409124 Fulton Water Company was formed as a private for-profit company in February 1961 to serve a residential neighborhood called Carnelian Bay located east of Tahoe City on the north shore of the Lake. The Company has 918 water connections serving a permanent population estimated at 500 persons. This water system is classified as a “Community” system which utilizes surface water as its water source (Tahoe-Sierra IRWM, 2014). Water rights for the Fulton Water Company were originally approved in 1960 and subsequently amended in 1963 by the State Of California State Water Rights Board via Decision D 11528. Surface water from Lake Tahoe is the only water source for this company. Although the Company began water service in 1928, it did not formally register with the CA Secretary of State’s office until 1961 as corporation # C0409124. The Company utilizes its Cedar Flat Intake and Lake Forest Intake to obtain water from Lake Tahoe. It also has several wells and other intakes which are no longer active. A detailed description of the Fulton Water Company’s lake intakes, water main and links, and transmission and distribution system is provided in the Placer County General Plan, Appendix A: Large Water Systems available on-line at: http://relicensing.pcwa.net/ documents/Library/PCWA-L-019.pdf . Drinking water quality in the Lake Tahoe region is generally very good. The Fulton Water Company regularly monitors water quality and reports the information to state regulators. An on-line water quality database9 reports that during the years 2004 to 2006, water from Fulton Water Company met all state and federal water quality standards. However, thirteen pollutants were detected in water samples and six of these (alpha particle, radium-226, radium 228, bromodichloromethane, dibromochloromethane, and 1,2-dibromo-3- chloropropane) exceeded health guidelines (EWG, 2007). Although the alpha particles and radium are likely naturally occurring in granite and other rock and soil/substrate in the Tahoe region, the methane and propane constituents are not natural and continued monitoring is warranted. The Consumer Confidence Report for this Company is available on the CPUC website10. Glenridge Water Company Mailing Address: P.O. Box 102, Homewood, CA 96141 Telephone: (530) 525-6659 Contact: Kelli Twomey 8 Decision D 1152 is available on-line at: <http://www.waterboards.ca.gov/waterrights/board_decisions /adopted_orders/decisions/d1150_d1199/wrd1152.pdf>. 9 EWG water quality database at: <http://www.ewg.org/tap-water/whatsinyourwater/CA/Fulton-Water- Company/3110015/>. 10 <http://www.cpuc.ca.gov/PUC/Water/Consumer_Confidence_Reports.htm>. Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-14 North Tahoe and Martis Valley MSR Alternative Contact: Steven Glazer, Owner E-mail: glazerwest@att.net Website: Data not provided Number of Shareholders: Data not provided Water System Number: CA0910024 CPUC Number: Data not provided Corporation Number: Not available The Glenridge Water Company is located just north of Meeks Bay, in Glenridge on the west shore of Lake Tahoe in El Dorado County. The system has 45 service connections serving approximately 124 to 130 people. Infrastructure includes a water tank. Drinking water quality in the Lake Tahoe region is generally very good. The Glenridge Water Company regularly monitors water quality and reports the information to state regulators. An on-line water quality database11 reports that during the years 2005 to 2007, water from Glenridge Water Company met all state and federal water quality standards. However, five pollutants were detected in water samples and three of these (alpha particles, radium-226 and radium-228) exceeded health guidelines (EWG, 2007). Both the alpha particles and radium are likely naturally occurring in granite and other rock and soil/substrate in the Tahoe region; however continued monitoring is warranted. Lakeview Water Co Mailing Address: 1373 Las Canoas Road, Pacific Palisades, CA 90272 Contact: Eleanor Buck Alternative Contact: Robert G. Bundy Telephone: Data not provided E-mail: Data not provided Website: Data not provided Number of Shareholders: Data not provided Water System Number: Data not provided CPUC Number: WTD 358 Corporation Number: C0486539 Lake View Water Company is a for-profit private company formed on March 1, 1965. The Company appears to be exempt from submitting consumer confidence reports to the CPUC12. Data about this company is not readily available. Madden Creek Water Company Mailing Address: 6998 W Lake Boulevard, Tahoma, CA 96142 Alternative Address: PO Box 264, Tahoma, CA 96142 11 EWG water quality database at: <http://www.ewg.org/tap-water/whatsinyourwater2 /CA/glenridge-water-company/0910024/>. 12 See CPUC at: <http://www.cpuc.ca.gov/PUC/Water/Consumer_Confidence_Reports.htm>. Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-15 North Tahoe and Martis Valley MSR Telephone: (530) 525-7555 Contact: Robert E. Marr, President E-mail: Tahoerobb@Sbcglobal.Net Website: Data not provided Number of Shareholders: Data not provided Water System Number: CA3110043 CPUC Number: WTD 92 Corporation Number: Company is not listed with the Calif Secretary of State’s Office. Madden Creek Water Company serves 166 water connections with an estimated population of 300 in a Homewood neighborhood. This water system is classified as a “Community” system which utilizes ground water as its only water source (Tahoe-Sierra IRWM, 2014) and this is accessed via the Silver Street Well. Estimated peak water demand is 1.67 gpm per customer which calculates to a total peak demand of 267 gpm for the company-wide service area (Nichols, 2008). Drinking water quality in the Lake Tahoe region is generally very good. The Madden Creek Water Company regularly monitors water quality and reports the information to state regulators. An on-line water quality database13 reports that during the years 2004 to 2008, water from Madden Creek Water Company met all state and federal water quality standards. However, six pollutants were detected in water samples and two of these (alpha particles, and cyanide) exceeded health guidelines (EWG, 2007). Both the alpha particles and cyanide are likely naturally occurring in granite and other rock and soil/substrate in the Tahoe region; however continued monitoring is warranted. The Consumer Confidence Report for this Company is available on the CPUC website14. Although Madden Creek Water Company is not registered as a corporation with the California Secretary of State’s office, there is a related company called the Mid-Sierra Water Utility which is registered as corporation number C0637230; however the specific relationship between these two companies is not clear. Rainbow Springs Public Water System Mailing Address: PO Box 1100, Soda Springs, CA 95728 Telephone: (530) 426-3661 Contact: Mr. John Slouber E-mail: Not available Website: None Number of Shareholders: Not applicable Water System Number: CA3100027 Corporation Number: Not listed in state database 13 EWG water quality database at: <http://www.ewg.org/tap-water/whatsinyourwater/CA/Fulton-Water- Company/3110015/>. 14 <http://www.cpuc.ca.gov/PUC/Water/Consumer_Confidence_Reports.htm>. Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-16 North Tahoe and Martis Valley MSR The State Water Board Drinking Water Division list the “Rainbow Springs Public Water System” with an administrative contact of Mr. John Slouber (former owner of the Royal Gorge ski resort). The Rainbow Springs Public Water System has historically sold spring water to bottled water companies. The primary source of water for this system is groundwater accessed via four active springs15 located near the Rainbow Lodge off Highway 80. There are also three inactive springs listed in the state database. The state drinking water database describes this system as serving a population of 300 persons. The Rainbow Springs Public Water System has received three violations for coliform from water quality officials on December 2010, April 2011, and September 2014. Since the Rainbow Springs Public Water System is not currently registered as a corporation with the Secretary of State’s office, it is difficult to determine its current status. Tahoe Cedars Water Company Mailing Address: P.O. BOX 264, Tahoma, CA 96142 Telephone: 530-525-7555 Contact: Robert Marr, Treatment Operator E-mail: Tahoerobb@Sbcglobal.Net Website: None available Number of Shareholders: Not available Water System Number: CA3110013 Corporation Number: Registration at the Calif Secretary of State’s Office was not found. The Tahoe Cedars Water Company was formed on 01-01-1976 to distribute water to West Shore residents around Tahoma in both Placer and El Dorado Counties, including the following neighborhoods: Tahoe Cedars, Tahoe Cedars Addition, Pomin Park, and Wilson Subdivision. The company has 1161 service connections (SWRCB, 2015) serving a regular population of 1,000 to 2,000 persons and a peak season (summer) population of approximately 3,000 to 5,000 people. The company charges a $1,000 connection fee. In 2010, Tahoe Cedars Water Company raised its annual service fees (flat water utility rate) to $503.20 per year. This was its first raise in 16 years. The company’s insurance certificates and infrastructure easements were questioned when a water main broke in June 2012 as reported by the Tahoe Daily Tribune (Sierra Sun) newspaper16. The Tahoe Cedars Water Company utilizes groundwater as its water supply accessed via one well located near Elm Street. Two other water intakes (Lake Tahoe Intake and Tenth Street Well) were both abandoned in previous years and are now inactive (SWRCB, 2015). Drinking water quality in the Lake Tahoe region is generally very good. The Tahoe Cedars Water Company regularly monitors water quality and reports the information to state regulators. An on-line water quality database17 reports that during the years 2004 to 2008, 15 Details at: <https://sdwis.waterboards.ca.gov/PDWW/JSP/WaterSystemDetail.jsp?tinwsys_ is_number=7653&tinwsys_st_code=CA&wsnumber=CA3100027>. 16 Newspaper article available at: <http://www.tahoedailytribune.com/article/20120626/NEWS/120629934>. 17 EWG water quality database at: <http://www.ewg.org/tap-water/whatsinyourwater/CA/Fulton-Water- Company/3110015/>. Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-17 North Tahoe and Martis Valley MSR water from Tahoe Cedars Water Company met all state and federal water quality standards. However, three pollutants were detected in water samples and one of these (alpha particles) exceeded health guidelines (EWG, 2008). The alpha particles are likely naturally occurring in granite and other rock and soil/substrate in the Tahoe region; however continued monitoring is warranted. In September 2014, the California State Water Resources Control Board issued citation # 01- 02-14[c]003 to the Company for violating the California Safe Drinking Water Act and for failure to collect required water quality samples for lead and copper (CA Water Resources, 2014). The Consumer Confidence Report for this Company is available on the CPUC website18. The sufficiency of water supply and water pressure to provide fire flows has not been assessed by LAFCO. Preliminary information indicates this company operates as a for-profit organization, rather than as a mutual. The water company is not listed in the CA Secretary of State’s database (http://kepler.sos.ca.gov/) as a formal corporation. Therefore, given the lack of information about corporate organization, it is recommended that LAFCO conduct further study to make a final determination as to this company’s status. Tahoe Park Water Company Mailing Address: PO Box 5627, Tahoe City, CA 96145 Alternative Address: 5000 Windplay Drive, Suite #4, El Dorado Hills, CA 95762 Telephone: (916) 941-8999 Alternative Phone: (530) 583-3938 Contact: Richard M. Dewante, Manager E-mail: None Website: None Number of Shareholders: Data not available Water System Number: CA3110049 and CA3110049 Corporation Number: c1954679 The Tahoe Sierra Integrated Water Management Plan reports this private for-profit company is composed of two sections: 1) Tahoe Park Water Co - Skyland/Nielsen serves 89 water connections which have an estimated permanent population of 50 persons and 2) Tahoe Park Water Company Main Section serves 440 water connections which have an estimated population of 750 persons. This water system is classified as a “Community” system which utilizes ground water as its water source (Tahoe-Sierra IRWM, 2014). The Company’s service area encompasses Tahoe Park Tract and Miramar Heights Tract adjacent to State Hwy. 89, two miles south of Tahoe City and Tahoe Sierra Estates north of Tahoe Park. 18 http://www.cpuc.ca.gov/PUC/Water/Consumer_Confidence_Reports.htm Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-18 North Tahoe and Martis Valley MSR Drinking water quality in the Lake Tahoe region is generally very good. The Tahoe Park Water Company regularly monitors water quality and reports the information to state regulators. An on-line water quality database19 reports that during the years 2004 to 2007, water from Tahoe Park Water Company met all state and federal water quality standards. However, five pollutants were detected in water samples and two of these (alpha particles and radium-228) exceeded health guidelines (EWG, 2008). The alpha particles are likely naturally occurring in granite and other rock and soil/substrate in the Tahoe region; however continued monitoring is warranted. The Consumer Confidence Report for this Company is available on the CPUC website20. In 2013, the Tahoe Park Water Company applied to the Calif Public Utilities Commission (CPUC) for a rate increase. The Tahoe City PUD and other Company customers filed a protest with the CPUC (TCPUD, 2013). The Placer County Zoning Administrator approved a Use Permit to allow development of a new well for the TPWC to be located on a vacant residential lot at Assessor’s Parcel No: 085- 290-012 (Placer County, 2015). Continuing the process to obtain needed permits for the new well, the Company applied to Tahoe Regional Planning Agency (TRPA) in August 2015 (TRPA, 2015). Tahoe Swiss Village Utility Inc. Mailing Address: PO Box 102, Homewood, CA 96141 Telephone: (530) 525-6659 Contact: Steven M. Glazer, Owner/General Manager E-mail: glazerwest@att.net Alternative contact: Fred L. Curry at flcurry@gmail.com Website: None Number of Shareholders: Not applicable Water System Number: CA3110042 CPUC Number: WTD 98 Corporation Number: C1576383 Tahoe Swiss Village Utility provides service to 378 water connections serving a permanent population of approximately 300 persons plus visitors in a neighborhood located in Glenridge Park in Meeks Bay (1.5 miles north of Homewood). This company serves customers in both Placer and El Dorado Counties. The water system is classified as a “Community” system which utilizes surface water as its water source (Tahoe-Sierra IRWM, 2014). The Consumer Confidence Report for this Company is available on the CPUC website21. 19 EWG water quality database at: http://www.ewg.org/tap-water/whatsinyourwater/CA/Fulton-Water- Company/3110015/ 20 http://www.cpuc.ca.gov/PUC/Water/Consumer_Confidence_Reports.htm 21 http://www.cpuc.ca.gov/PUC/Water/Consumer_Confidence_Reports.htm Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-19 North Tahoe and Martis Valley MSR In July 2010, the Tahoe Regional Planning Agency (TRPA) approved a memorandum of understanding (MOU) with Tahoe Swiss Village Utilities, Inc. which lays out specific operation and maintenance activities which are exempt from the TRPA code (TRPA, 2010b). The California Public Utilities Commission (CPUC) does regulate this utility and since it serves less than 500 customers, it is classified as a “Class-D company”. In January 2014, the Tahoe Swiss Village Utility applied to the CPUC for a rate increase. The purpose of the rate increase is to support the water storage tank re-habilitation project and addition of cathodic protection and telemetry to the tank will ensure the company maintains adequate storage facilities to provide safe and reliable water service (CPUC, 2015). The utility and its customers at the Tahoe Swiss Village Homeowner’s Association have disagreed about the use of easements and litigation has been discussed 22. Timberland Water Company Mailing Address: P0 Box 1855 Penn Valley, CA 95946 Telephone: (530) 538-3478 Contact: John Ballard, Owner & President E-mail: Not available Website: None Number of Shareholders: Not applicable Water System Number: CA-3100029 CPUC Number: WTD 99 This company serves an unincorporated area known as Timberland Subdivision located 3 mi. south of Tahoe City fronting Lake Tahoe. Water is supplied to customers from a groundwater well. The Consumer Confidence Report for this Company is available on the CPUC website23. In July 2010, the Tahoe Regional Planning Agency (TRPA) approved a memorandum of understanding (MOU) with Timberland Water Company which lays out specific operation and maintenance activities which are exempt from the TRPA code (TRPA, 2010a). 22 The disagreements are described in the Homeowner’s Association newsletter at: http://www.tahoeswissvillage.com/wp-content/uploads/2015/02/TSVNewsletter10_22_2010.pdf 23 CPUC website at: ftp://ftp.cpuc.ca.gov/water/ConsumerConfidenceReports/2014/Timberland_2015_CCR_%26_Cert.pdf Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-20 North Tahoe and Martis Valley MSR 4.7: REFERENCES California Department of Public Health (CDPH). March 11, 2013. Public Water System No. 3110012 Compliance Order 0102-13R-001-3110012-22. Redding, Ca. 18 pages. Available on-line at: <http://www.waterboards.ca.gov/drinking_water/programs/ documents/ddwem/dwp%20enforcement%20actions/Placer/2013/01-02-13R-001- 3110012-22.pdf>. Accessed September 8, 2015. California Public Utilities Commission (CPUC). March 26, 2015. Packet for Public Agenda #3354 San Francisco, California. 69-pages. Available on-line at: <https://ia.cpuc.ca.gov/ agendadocs/3354.pdf>. Accessed 2September2015. California Water Resources Control Board. Division of Drinking Water. Public Water System No. 3110013, Citation 01-02[c]003. Redding, CA. 15-pages. Available on-line at: <http://www.waterboards.ca.gov/drinking_water/programs/documents/ddwem/dwp %20enforcement%20actions/Placer/2014/01-02-14-C-003-3110013-52.pdf>. Drinking Water Branch. Website <https://sdwis.waterboards.ca.gov/PDWW/JSP /WaterSystemFacilities.jsp?tinwsys_is_number=3428&tinwsys_st_code=CA>. Environmental Working Group (EWG). Drinking Water Quality Report 2004 – 2007. Available on-line at: http://www.ewg.org/tap-water/. Accessed 1September2015. Nichols Consulting Engineers, Chtd. Memorandum from C. Heinbaugh to D. Tirman. January 29, 2008. 5-pages. Available on-line at: <http://www.placer.ca.gov/~/media/cdr/ECS/EIR/Homewood/Hydro/WQ%2030.pdf>. Accessed 12August2015. Nichols Consulting Engineers, Chtd. Homewood Mountain Resort Water Supply Assessment. Draft Final. October 2010. 26 –pages. Available on-line at: <http://www.trpa.org/wp-content/uploads/Appendix_AA_ Water_Supply_ Assessment.pdf>. Accessed 14August2015. Placer County Environmental Health (PCEH). September 28, 2015. Personal communication with Vicki Ramsey, REHS, Consumer Protection Team. Placer County General Plan, Background Report. Technical Appendices. Appendix A: Large Water Systems. September 25, 1992. Authored by Crawford Multary & Starr; DKS Associates; Psomas and Associates; Jones & Stokes Associates; Recht Hausrath & Associates; and J. Laurence Minitier & Associates. 382 pages. Available on-line at: <http://relicensing.pcwa.net/documents/Library/PCWA-L-01 9.pdf>. Placer County Planning Department Memorandum to Zoning Administrator from Development Review Committee. Regarding Skyland/Nielsen new water well Minor Use Permit. July 21, 2015. 10-pages. Available on-line: <http://www.placer.ca.gov/~/media/ cdr/Planning/ZA/2015/Aug5/TahoePark.pdf>. Accessed September 5, 2015. Placer County. July 10, 2008. Memorandum from Development Review Committee to Placer County Planning Commission. Auburn, CA. 7-pages. Available on-line at: <http://www.placer.ca.gov/Departments/CommunityDevelopment/Planning/Hearings /~/media/cdr/Planning/PC/71008/71008StaffRptItem2.ashx>. Accessed on September Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-21 North Tahoe and Martis Valley MSR State Water Resources Control Board (SWRCB). Division of Drinking Water. Safe Drinking Water Information System. Water System Details. Available on-line at: <https://sdwis.waterboards.ca.gov/PDWW/JSP/WaterSystemDetail.jsp?tinwsys_is_nu mber=7653&tinwsys_st_code=CA&wsnumber=CA3100027>. And <https://sdwis. waterboards.ca.gov/PDWW/JSP/WaterSystemDetail.jsp?tinwsys_is_number=3428&tin wsys_st_code=CA&wsnumber=CA3110013>. Accessed September 5, 2015. Squaw Valley Mutual Water Company website. Available on-line at: <http://www.svmwc.com/about.html>. Accessed 19August2015. Tahoe City Public Utility District (TCPUD). Memorandum to the Board of Directors Regarding Tahoe Park Water Company – Protest of Rate Increase. February 8, 2013. 4-pages. Available on-line: <http://tahoecitypud.granicus.com/MetaViewer.php?view_id =2&clip_id=174&meta_id=15982>. Accessed September 5, 2015. Tahoe City Public Utility District (TCPUD). As amended October 2011. 2010 Urban Water Management Plan. Authored by Auerbach Engineering Corporation. 111-pages. Available on-line: <http://www.tahoecitypud.com/download/general/10uwmp.pdf>. Accessed September 5, 2015. Tahoe Regional Planning Agency (TRPA). Staff Report Tahoe Park Water Company New Primary Supply Water Well; 3275 Ann Road, Placer County, California; Assessor’s Parcel No: 085-290-012, TRPA File No: ERSP2015-1129. August 13, 2015. 9-pages. Available on-line: < http://www.trpa.org/wp-content/uploads/Item-no.-V.A.-Tahoe- Park-Water-Co..pdf>. Accessed September 5, 2015. Tahoe Regional Planning Agency (TRPA). July 2010a. Memorandum of Understanding between TRPA and Timberland Water Company. 5-pages. Available on-line at: <http://www.trpa.org/wp-content/uploads/Appendix-UU_Timberland-Water- Company.pdf>. Accessed 1August2015. Tahoe Regional Planning Agency (TRPA). July 2010b. Memorandum of Understanding between TRPA and Tahoe Swiss Village Utility. 5-pages. Available on-line at: <http://www.trpa.org/wp-content/uploads/Appendix-TT_Tahoe-Swiss-Village- Utility.pdf>. Accessed 1August2015. Tahoe Regional Planning Agency (TRPA). July 2010c. Memorandum of Understanding between TRPA and Ward Well Water Company. 5-pages. Available on-line at: <http://www.trpa.org/wp-content/uploads/Appendix-VV_Ward-Well-Water- Company.pdf>. Accessed 1August2015. Tahoe-Sierra IRWM Plan. July 2014. Section 2 – Region Description, Appendix 2-A: CDPH Regulated Water Systems. Available on-line at: <http://tahoesierrairwm.com/wp- content/uploads/2014/07/Appendix-2-A_CDPH_WaterSystems.pdf>. Accessed 1August2015. Draft Final MSR, August 2018 Chapter 4 Mutual Water Companies 4-22 North Tahoe and Martis Valley MSR Chapter 5 REGULATIONS FOR WASTEWATER SYSTEMS (photo courtesy of http://dspud.com/) This Municipal Service Review (MSR) describes eight public districts/agencies that provide wastewater services including Alpine Springs CWD, Donner Summit PUD, North Tahoe PUD, Squaw Valley PSD, Sierra Lakes County Water District, Tahoe City PUD, Tahoe-Truckee Sanitation Agency, and the Truckee Sanitary District. A ninth district provides wastewater treatment services in the region, Northstar CSD, and this District was described in a separate MSR. Lake Tahoe and nearby upper alpine areas are environmentally sensitive areas that are subject to the stringent regulations for wastewater systems that are described in this chapter. Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-1 North Tahoe and Martis Valley MSR 5.1 REGULATIONS FOR WASTEWATER SYSTEMS Both state and federal regulatory authority exists for the control of water quality in surface waters of California. Under the Clean Water Act (CWA), the Environmental Protection Agency (EPA) regulates municipal and industrial effluent discharges to navigable waters through the issuance of National Pollutant Discharge Elimination System (NPDES) permits. The basic approach used in both state and federal processes is 1) to designate beneficial uses to be protected, 2) to set water quality objectives that are protective of the most sensitive uses, and 3) to control municipal, industrial, and other sources to meet these objectives. Federal Wastewater Treatment Regulations Clean Water Act The Clean Water Act (33 U.S.C. § 1251 et seq.) is the federal law that governs and authorizes water quality control activities by the EPA. Pursuant to federal law, the EPA has published water quality regulations under Volume 40 of the Code of Federal Regulations (40 CFR). The CWA regulates water pollution through two different and supplementary approaches:  Water quality and technology-based standards; and  Section 303 of the CWA requires states to adopt water quality standards for all surface waters of the United States. The two approaches to regulating water pollution are implemented through the use of discharge permits, which contain mass or concentration-based effluent limits for the pollutants in the permittee’s wastewater. These approaches are applied to pollutant dischargers through the implementation of the national wastewater discharge permitting program set up under the CWA. The CWA established national goals to eliminate pollutant discharges to navigable waters and to assure that all navigable waters would be fishable and swimmable. National Pollutant Discharge Elimination System (NPDES) The NPDES permit system was established under section 402 of the CWA to regulate municipal and industrial discharges to surface waters of the United States. The discharge of wastewater to surface waters is prohibited unless an NPDES permit has been issued which allows that discharge. Each NPDES permit contains limits on allowable concentrations and/or mass emissions of pollutants contained in the discharge. Under the NPDES program, dischargers are required to monitor and provide reports on compliance with their permit limits. These reports, formally titled Discharge Monitoring Reports (DMRs), are submitted to the appropriate regulatory agency, and they describe water quality data and analysis. The regulatory agency or any interested citizen can review this data to determine whether or not the discharger has complied with its NPDES permit requirements, and, if appropriate, pursue Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-2 North Tahoe and Martis Valley MSR action to enforce compliance. Tahoe-Truckee Sanitation Agency’s WWTP operates under Waste Discharge Requirements Order No. R6T-2002-0030. The Donner Summit PUD’s Treatment Plant operates under Waste Discharge Requirements Order R5-2015-0068 (NPDES PERMIT NO. CA0081621). These are the only two wastewater treatment plants studied in this MSR. Enforcement of NPDES guidelines and permits falls within jurisdiction of the Regional Water Quality Control Board (RWQCB) and is subject to review by the EPA Regional Administrator (EPA Region IX, San Francisco Office). The Lahontan RWQCB covers the Town of Truckee and portions of Lake Tahoe and Martis Valley. The Central Valley RWQCB covers the Donner Summit area. The RWQCB regulates activities involving discharges to land or groundwater from diffused sources. A Report of Waste Discharge must be filed with the RWQCB to obtain a Waste Discharge Requirement (WDR) for these types of non-surface water discharge. Congress amended the CWA in 1987 to include non-point source pollutants. Non-point source pollutants are often chemicals from lawns or gardens, automobile residues, urban runoff, or household cleaning agents or compounds. Most non-point source pollutants enter the wastewater stream and the water supply in large quantities and sudden surges, largely due to storm events. Although the EPA has established NPDES requirements for storm water, control of this type of pollution has proven to be difficult and could potentially require costly upgrades in existing wastewater treatment plants. Section 303(d) Impaired Waters List and TMDLs Under Section 303(d) of the CWA, states are required to develop lists of water bodies which will not attain water quality objectives after implementation of required levels of treatment by point source dischargers (municipalities and industries). Section 303(d) requires that the state develop a total maximum daily load (TMDL) for each of the listed pollutants. The TMDL is the cumulative load that the water body can receive and still be in compliance with water quality objectives. These limitations are then placed in the discharger’s NPDES permit as water quality-based effluent limitations. Lake Tahoe is designated as an Outstanding National Resource Water and as such it is provided with the highest level of protection under USEPA’s Antidegradation Policy. However, its water quality is impaired by elevated fine sediment particles and nutrients that are derived from land development, atmospheric deposition, and disturbances to forests and streams. Lake Tahoe was placed on the Section 303(d) list of impaired water bodies in 1988 and the Lake’s transparency continues to be monitored by scientists. TMDLs for the Lake were adopted in November 20110 by the Lahontan RWQCB. In December 2012, TRPA adopted a Water Quality Management Plan for Lake Tahoe that serves to streamline the administration, management, and implementation of water quality regulations by a multitude of agencies and this Plan is available on-line at: <http://www.trpa.org/wp- content/uploads/Final-U.S.-EPA-Adopted-Lake-Tahoe-208-WQMP_2013.06.19.pdf>. Donner Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-3 North Tahoe and Martis Valley MSR Lake is also on the 303(d) list for violation of Office of Environmental Health Hazard Assessment (OEHHA) MTRL of fish tissue criteria for "Priority Organics" such as PCBs (Polychlorinated biphenyls) (Lahontan, 2010). Within this MSR study area, the streams and rivers that are on the Clean Water Act Section 303(d) list of impaired water bodies for elevated levels of pollutants include: • The Truckee River • North Fork American River • Squaw Creek • Ward Creek • Blackwood Creek • General Creek Additional information on 303(d) listings is available in the Tahoe-Sierra Integrated Regional Water Management Plan, July 2014. The Donner Summit PUD and the Tahoe-Truckee Sanitation Agency are the only two agencies studied in this MSR that actually own and operate a wastewater treatment plant. Both these agencies continuously monitor their discharge to ensure compliance with the above water quality regulations. National Toxics Rule The EPA established the National Toxics Rules (NTR) to create numeric criteria for priority toxic pollutants for California and 13 other states and territories that were not in complete compliance with the CWA. For California, the NTR established water quality standards for protection of aquatic life and/or human health for 36 pollutants for which water quality criteria exist, but which were not covered under California’s statewide water quality regulations. California Toxics Rule Federal water quality standards are contained in both the National Toxics Rule (40 CFR 131.36) and the California Toxics Rule (40 CFR 131.37).The EPA issued the California Toxics Rule (CTR) in May 2000. The California State Water Resources Control Board (SWRCB) has adopted a statewide implementation policy for the federal toxics standards and these also apply to both the Lahontan Region and the Central Valley Region. There are 130 constituents listed in the California Toxics Rule (CTR) criteria, which include the EPA’s previously issued NTR criteria for California. Some of the key elements of the CTR include:  Amended numeric standards for 30 toxic pollutants and added new criteria for 8 toxic pollutants to protect aquatic life and human health uses for water bodies.  Dissolved-based standards for most trace metals and endorsement of the use of translator mechanisms for determination of local metals objectives.  Provisions for compliance schedules to provide time for permittees to meet the new toxics standards.  Provisions for mixing zones when calculating toxic constituent effluent limitations. Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-4 North Tahoe and Martis Valley MSR  Use of interim effluent limits to provide time for dischargers to take actions to meet final limits. The EPA recently promulgated numeric water quality criteria for priority toxic pollutants and other water quality standards for waters in the State of California pursuant to section 303(c)(2)(B) of the CWA if those pollutants could be reasonably expected to interfere with the designated uses of states waters. Although California had adopted numeric criteria for priority toxic pollutants in 1992, the courts ordered California to rescind these water quality control plans in 1994 and the new water quality criteria rule, known as the California Toxics Rule (CTR), temporarily replaced the standards adopted in 1991. The CTR established:  Ambient aquatic life criteria for 23 priority toxics;  Ambient human health criteria for 57 priority toxics; and  Compliance schedule provision. Under the CTR various regional water quality control boards will issue schedules of compliance for new or revised NPDES permit limits based on the federal criteria when certain conditions are met. Currently each basin plan, as prepared by the regional water quality control board, contains a water quality criterion that all waters shall be maintained free of toxic substances in concentrations that produce detrimental physiological responses in human, plant, animal, or aquatic life. This has been contested by local jurisdictions all over California since it is expected to add significantly to the cost of wastewater treatment. For the Donner Summit PUD wastewater treatment plant, the NPDES permit issued by the Central Valley RWQCB considers the California Toxics Rule. Discharge to the South Fork of the Yuba River, undergoes a number of rounds of sampling under the CTR. The permit includes effluent limitations based on the results of the CTR and other samples. See Chapter 7 for more information on the Donner Summit PUD. The Tahoe-Truckee Sanitation Agency also complies with the California Toxics Rule with oversight from the Lahontan RWQCB. See Chapter 16 for further details. California Wastewater Treatment Regulations Several types of state regulations affect wastewater collection and treatment in California. California Water Code (including the Porter-Cologne Act) The California Water Code is the principal state regulation governing the use of water resources within the State of California. This law controls, among other issues, water quality protection and management, and management of water-oriented agencies. Division 7 of the California Water Code, commonly referred to as the Porter-Cologne Act, is the principal mechanism for regulation of water quality and pollution issues within California. This act Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-5 North Tahoe and Martis Valley MSR established a regulatory program to protect the water quality and beneficial uses of all state waters. The Porter-Cologne Act also established the State Water Resources Control Board and California Regional Water Quality Control Boards (RWQCB) as principal state agencies responsible for water quality control. The SWRCB has divided California into nine regions with Nevada County located in the Central Valley RWQCB. The Porter-Cologne Act grants the SWRCB and regional offices broad powers to protect water quality and is the primary vehicle for implementation of California’s responsibilities under the federal CWA. These broad powers include the authority and responsibility to adopt plans and policies, to regulate discharges to surface and groundwater, to regulate waste disposal sites and to require cleanup of hazardous materials and other pollutants. The Porter-Cologne Act also includes reporting requirements for unintended discharges of any hazardous substance, sewage, or oil/petroleum product. Regional Water Quality Control Boards formulate and adopt a water quality plan for its specific region which conforms to the Porter-Cologne Act. The Porter-Cologne Act provides that a regional office may include water discharge prohibitions applicable to local conditions, areas, and types of waste within its regional plan. The regional offices are also authorized to enforce discharge limitations, take actions to prevent violations, and conduct investigations about the quality of any of the waters of the state. Civil and criminal penalties are applicable to persons who violate the requirements of the Porter-Cologne Act or SWRCB/RWQCB orders. The Water Quality Control Plan for the Lahontan Region was first adopted in 1975, and most recently updated in 1995. The Plan presents water quality standards and control measures for surface and ground waters of the Lahontan Region, which includes the California portion of Lake Tahoe and its tributaries. The Central Valley RWQCB adopted a Water Quality Control Plan1 for the Sacramento River and San Joaquin River Basins in 1994 (Third Edition) and this has subsequently been amended several times. The Plan presents water quality standards and control measures for surface and ground waters for the Sacramento and San Joaquin River drainage basins which are bound by the crests of the Sierra Nevada on the east and the Coast Range and Klamath Mountains on the west. The Plan’s boundaries extend some 400 miles from the California - Oregon border southward to the headwaters of the San Joaquin River. The Porter Cologne Act mandates that all sewage be exported from the Tahoe Basin. The Tahoe-Truckee Sanitation Agency (T-TSA) is the sole operator of wastewater treatment facilities for the Tahoe Basin portions of Eastern Placer County and Eastern Nevada County. T- TSA treats and disposes of collected wastewater at the Water Reclamation Plant east of Truckee. The Truckee area location of the wastewater treatment plant is not within the Tahoe Basin and is therefore consistent with the Porter Cologne Act. T-TSA (Chapter 16) accepts wastewater from Truckee Sanitary District, North Tahoe PUD (Chapter 10), Squaw 1 Water Quality Control Plan details available at: http://www.waterboards.ca.gov/centralvalley/water_issues/basin_plans/ Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-6 North Tahoe and Martis Valley MSR Valley PSD (Chapter 12), Alpine Springs CWD (Chapter 6), Tahoe City PUD (Chapter 15), and Northstar CSD (separate MSR). A second wastewater treatment plant located outside the Tahoe Basin is operated by the Donner Summit PUD (Chapter 7) and this plant also treats wastewater from the Sierra Lakes County Water District (Chapter 11). Sanitary District Act As part of the California Health and Safety Code section 6400 et seq, the Sanitary District Act of 1923 governs the formation, elections, governance, and operations of a sanitary district. A sanitary district may be merged with a county sanitation district, following the County Sanitation District Act. In addition to providing sewage collection, treatment and disposal, State Law enables county sanitation districts to provide additional services such as refuse transfer or disposal, street cleaning, and water services. Although there are no sanitary districts operating in North Tahoe/Martis Valley, we have included information about this type of district to provide options for any future consideration of governance structure. Other State Agencies Other state agencies with jurisdiction or involvement in water quality regulation in California include the Department of Public Health (DPH) for drinking water regulations and water reclamation criteria, the Department of Pesticide Regulation, the Department of Fish and Game, and the Office of Environmental Health and Hazard Assessment. Local Wastewater Regulations The Tahoe Regional Planning Agency has adopted a Water Quality Management Plan for Lake Tahoe that serves to streamline the administration, management, and implementation of water quality regulations by a multitude of agencies and this Plan is available on-line at: <http://www.trpa.org/wp-content/uploads/Final-U.S.-EPA-Adopted-Lake-Tahoe-208- WQMP_2013.06.19.pdf>. For the Donner Summit area that is within Placer County and Nevada County, the County Environmental Health Department approves wastewater disposal systems for subdivisions of less than 100 lots consistent with adopted ordinances compatible with the Central Valley RWQCB Guidelines. However, even for subdivisions of less than 100 lots, enough information must be forwarded to the RWQCB, along with specified reports and permits, for the RWQCB to assess the consistency of the development with State regulations. It should be noted that Central Valley RWQCB can also regulate, and may require their approval of systems for subdivisions of less than 100 lots. Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-7 North Tahoe and Martis Valley MSR Wastewater Solids Regulations Solids generated at a wastewater treatment facility comprise screenings, grit, primary or raw sludge (PS) and secondary or waste activated sludge (WAS). The screenings and grit are typically dewatered and disposed in a landfill. Sludge generated by a wastewater treatment facility is defined as biosolids once beneficial use criteria, as determined by compliance with EPA regulations, have been achieved through stabilization processes. Stabilization processes are described as those that help reduce pathogens and reduce vector attraction. Several federal, state, and local regulations are in place that influence whether biosolids from municipal wastewater treatment plants can be reused or disposed of. Increased concerns and debate over biosolids disposal and its associated environmental impacts have led to more stringent revisions and amendments for many of these regulations. Continuing changes in regulations affecting biosolids management make a flexible management program essential. Federal, state, and local agencies are responsible for regulating biosolids beneficial reuse/disposal. The authority of each agency varies based on the beneficial reuse/disposal methods employed. However, overall guidelines are established by the EPA. These guidelines are in turn implemented by state and local governments. Many state and local agencies in California have developed additional rules, guidelines, and criteria for biosolids management. In order to implement the long-term biosolids permitting program, required by the Water Quality Act of 1987, the EPA initiated two rule makings. The first rulemaking established requirements and procedures for including biosolids management in NPDES permits, procedures for granting state biosolids management programs primacy over federal programs, or for federal programs to implement biosolids permits if a state so chooses. The second rulemaking proposed to regulate and control biosolids permitting was 40 CFR Part 503, Standards for the Use and Disposal of Sewage Sludge. This rule addresses three general categories of beneficial reuse/disposal of biosolids including:  Land application of sewage sludge for beneficial use of organic content;  Surface disposal of biosolids in a monofill, surface impoundment, or other dedicated site; and  Incineration of sewage sludge with, or without, auxiliary fuel. 5.2 FUTURE REGULATORY CONSIDERATIONS This section provides insight into the future regulatory considerations that may affect agency sewer systems’ effluent discharges. Identifying future regulatory trends is critical for the following reasons:  Developing treatment scenarios and alternatives; Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-8 North Tahoe and Martis Valley MSR  Planning for process and layout requirements for future regulatory compliance; and  Making budget considerations for major design and construction projects. Identifying future pollutants of concern (POCs), such as metals, nutrients, and/or pathogens, will help to develop alternatives that are flexible and can be easily expanded or upgraded to treat future POCs. For example, planning may include reserving space in the site layout for nutrient reduction, tertiary filtration, advanced oxidation, or an alternative disinfection method that would provide treatment of future POCs. Nutrient Criteria Nitrogen and phosphorus are elemental nutrients that support photosynthesis and growth in aquatic bacteria, algae, and plants. Although nitrogen and phosphorus are naturally present in limited quantities, human activities and pollution can result in too much of these nutrients in waterways and subsequently create problems such as algae blooms and bacterial overgrowth. Nitrogen based compounds such as nitrates, nitrites, and ammonia are harmful to people and fish when found in large quantities in local streams and other water bodies. Nutrient pollution in the San Francisco Bay and the Sacramento/San Joaquin Delta has been studied and remains an on-going concern (McKee et. al., 2011 and HDR Engineering, 2011). Since the Donner Summit PUD wastewater treatment plant is located on the South Yuba River, which is a tributary to the Sacramento River and Delta, nutrients from wastewater treatment plants is an issue of interest for this MSR. It is recognized that the enhanced treatment systems utilized by Donner summit PUD and by the Truckee-Tahoe Sanitation Agency enable these wastewater plants to remove more nitrogen and phosphorus from their discharges than others. Nitrogen and phosphorus are the leading cause of impairments to the nation’s surface waters and they are receiving greater regulatory scrutiny regarding their contribution to the overall quality of the nation’s receiving waters. The EPA has been considering the development of nationwide numeric criteria for total nitrogen and total phosphorus and perhaps also modification to the regulations for secondary treatment of wastewater. Additionally, the State Water Resources Control Board (SWRCB) is in the process of developing statewide policies for nutrients. The SWRCB is currently in the process of developing a Nutrient Numeric Endpoint (NNE) framework and policy for inland surface waters and they have held public scoping sessions on this issue. Details are available on their website at: http://www.swrcb.ca.gov/ water_issues/programs/nutrient_objectives/ Microconstituents and Bioaccumulative Constituents Microconstituent, also referred to as “contaminants of emerging concern” by the EPA Office of Water, are substances that have been detected in surface waters and the environment and Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-9 North Tahoe and Martis Valley MSR may potentially cause deleterious effects on aquatic life and the environment at relevant concentrations. Microconstituents include:  Persistent organic pollutants (POPs) such as polybrominated diphenyl ethers (PBDEs; used in flame retardants, furniture foam, plastics, etc.) and other organic contaminants.  Pharmaceuticals and personal care products (PPCPs), including a wide suite of human prescribed drugs, over-the-counter medications, bactericides, sunscreens, and synthetic musks.  Veterinary medicines such as antimicrobials, antibiotics, anti-fungals, growth promoters, and hormones.  Endocrine-disrupting chemicals (EDCs), including synthetic estrogens and androgens, naturally occurring estrogens, as well as many other compounds capable of modulating normal hormonal functions and steroidal synthesis in aquatic organisms.  Nanomaterials such as carbon nanotubes or nano-scale particulate titanium dioxide. Constituents that are taken up by organisms at faster rates than the organisms can remove them can accumulate in the organism and the food chain, and can remain in the environment for long periods of time. Mercury, polychlorinated biphenyls (PCBs), and dioxins are some bioaccumulative constituents that are being increasingly regulated. Monitoring requirements for these trace pollutants are increasing, including requirements to analyze constituents at lower detection limits. It is likely that water quality criteria followed by new effluent limits will be added to permits at some time in the future. Implementation of contaminants of emerging concern standards is not expected to be imminent as the EPA is currently focused on assessing the potential impact contaminants of emerging concern have on the environment and human health. California State Recycled Water Policy The SWRCB adopted a Recycled Water Policy in 2009 and updated in 2013 to establish more uniform requirements for water recycling throughout the State and to streamline the permit application process in most instances2. The Recycled Water Policy includes a mandate that the State increase the use of recycled water over 2002 levels by at least 200,000 acre-feet per year (AFY) by 2020 and by at least 300,000 AFY by 2030. It also includes goals for stormwater reuse and conservation and potable water offsets by recycled water. The onus for achieving these mandates and goals is placed on both recycled water purveyors and potential users. Since the recycled water project permit process is streamlined, projects will not be required to include a monitoring component. If any regulations arise from new knowledge of risks associated with contaminants of emerging concern, then projects will be given compliance schedules. Regulations are not expected to arise in the imminent future. 2 Details are at the State Water Board website at www.swrcb.ca.gov/water_issues/programs/water_recycling_policy/. Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-10 North Tahoe and Martis Valley MSR 5.3 REFERENCES California, State of. November 2015. California Water Code. Available on-line at: <http://www.leginfo.ca.gov/.html/wat_table_of_contents.html>. California Water Quality Control Board - Lahontan Region (Lahontan) Regional Board 6. 2010. Draft California 2010 Integrated Report (303(d) List/305(b) Report. Available on-line at: <http://www.waterboards.ca.gov/water_issues/programs/tmdl/2010state_ir_ stfrpt/00460.shtml>. Accessed 2Nov2015. HDR Engineering, Inc. December 2011. Nutrient Regulatory Considerations. 25-pages. Available on-line at: <http://bacwa.org/wp-content/uploads/2012/01/Nutrient- Regulatory-Considerations-FINAL.pdf>. McKee, L.J., Sutula, Gilbreath, A.N., Beagle, J., Gluchowski, D., and Hunt, J. 2011 Numeric nutrient endpoint development for San Francisco Bay- Literature review and Data Gaps Analysis. Southern California Coastal Water Research Project Technical Report No. 644. www.sccwrp.org The Partnership of the Tahoe-Sierra Integrated Regional Water Management and South Tahoe Public Utility District. July 2014.Tahoe-Sierra Integrated Regional Water Management Plan. 1138 pages. Available on-line at: <http://tahoesierrairwm.com/wp- content/uploads/2014/07/T-S-IRWMP_July-2014_lo-res.pdf> Draft Final MSR, August 2018 Chapter 5, Wastewater Regulations 5-11 North Tahoe and Martis Valley MSR Chapter 6 Alpine Springs County Water District (photo courtesy of http://www.alpinesprings.org) This Municipal Service Review (MSR) describes the Alpine Springs County Water District. The District was formed in 1963 and currently provides water, sewer, solid waste, fire/emergency, and parks services within its service area. Table of Contents 6.1 Agency Profile .................................................................................................... 6-2 6.2 Overview of Agency.............................................................................................. 6-3 6.3 Formation and Boundary ........................................................................................ 6-3 6.4 Accountability and Governance ............................................................................... 6-5 6.5 Management Efficiencies and Staffing ....................................................................... 6-5 6.6 Population and Growth ......................................................................................... 6-7 6.7 Financing .......................................................................................................... 6-9 6.8: Water Services .................................................................................................. 6-13 6.9 Wastewater Services ........................................................................................... 6-18 6.10: Fire and Emergency Services ................................................................................ 6-20 6.11: Park and Recreation Services ............................................................................... 6-22 6.12: Solid Waste ..................................................................................................... 6-23 6.13: Determinations ................................................................................................ 6-23 6.13: References ...................................................................................................... 6-27 Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-1 North Tahoe and Martis Valley MSR 6.1 Agency Profile ALPINE SPRINGS COUNTY WATER DISTRICT Type of District: County Water District Enabling Legislation: The County Water District Law: Water Code sections 30000- 33901 Functions/Services: Water, wastewater collection, solid waste collection, fire/emergency services, park and recreation Main Office: 270 Alpine Meadows Road, Alpine Meadows, CA 96146 Mailing Address: Same Phone No.: 530-583-2342 Fax No.: 530-583-0228 Web Site: www.alpinesprings.org Email: info@alpinesprings.org General Manager: John M. Collins, P.E. Email: john@alpinesprings.org Phone: 530-583-2342 X12 Office Manager: Pam Zinn Email: pam@alpinesprings.org Phone: 530-583-2342 X11 Governing Body: Elected Board of Directors Director Term Expiration Janet Grant, President 11/30/2018 John Northrop, Vice-President 11/30/2020 Evan Salke, Director 11/30/2018 Dave Smelser, Director 11/30/2020 Christine York, Director 11/30/2018 Meeting Schedule: 2nd Friday of the month at 9:00 a.m. Meeting Location: Board Room, 270 Alpine Meadows Road, Alpine Meadows, CA 96146 Date of Formation: 1963 Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-2 North Tahoe and Martis Valley MSR 6.2 Overview of Agency Summary Description of Existing Services The Alpine Springs County Water District (ASCWD/District) provides water, sewer, solid waste, fire/emergency, and parks services within its service area. See Figure 6-1 for District boundary and Sphere of Influence (SOI). Location and Size The District is located approximately four miles west of Tahoe City, stretching west from State Route 89. The District is located in the Bear Creek Valley watershed. Encompassing approximately five square miles, the District serves a permanent population of approximately 600 residents. The District consists of three subdivisions: Juniper Mountain Subdivision, Bear Creek Subdivision, and Alpine Estates Subdivision. Additionally, the District includes Alpine Ski Resort and a commercial area. 6.3 Formation and Boundary The District was formed on March 19, 1963 under the County Water District Law: Water Code Sections 30000-33901 (LAFCO Resolution No. 63-63). At formation, the District was approximately 2,575 acres. The District existing boundary is shown in Figure 6-1, below. Boundary History Since its formation, the District has completed one annexation, the Bear Creek Valley Annexation, which was approved in December 1973 (LAFCO Resolution No. 2-73). Portions of the District are coterminous with Squaw Valley Public Services District, North Tahoe Fire Protection District, and Tahoe City Public Utilities District. Sphere of Influence Neither District staff nor LAFCO files indicate whether a SOI has been established for the District. Extra-territorial Services The District does not serve any customers outside its boundaries. Areas of Interest The District noted that they are aware of one proposed development within its territory: the “Alpine Sierra Development.” The proposal includes 33 single-family residential units, 5 of the units having separate guest units, and 14 residential townhomes. A Notice of Preparation for a project EIR was released on April 8, 2014. The District is also directly adjacent to the Squaw Valley development area. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-3 S q u aw C reek Squaw Valley R d T r u c k e e R i v e r 89 R iv Bear Creek e r R d Rd Alpine Meadows Crest R d Sno w Tr Scott John t Rd e al h C Courchevel Rd W ard C Ward Creek reek Blvd Alpine Springs CWD 0 1,000 2,000 Feet Parcels Parcels, Roads and district boundary from Placer County GIS Figure 6-1 ALPINE SPRINGS COUNTY WATER DISTRICT North Tahoe and Martis Valley MSR 6.4 Accountability and Governance The District operates under the leadership of an elected five-member Board of Directors, with a General Manager providing daily oversight and management of staff and resources. Board meetings are held on 2nd Friday of the month at 8:30 a.m. Meetings are held at the District’s board room located at 270 Alpine Meadows Road, Alpine Meadows, CA 96146. Meeting notices and agendas are posted on the District’s website and outside the main office at least 72 hours prior to meeting dates. Following Board approval, meeting minutes are posted on the District’s website (www.alpinesprings.org). Public comments are allowed at scheduled meetings and also can be provided by letters to the District. Operating procedures and practices, including budgets, personnel policies, fees and rates, capital improvement plans, and other documents are available for public review at the District’s offices and some are available on the District’s website. District operating hours are 9:00 a.m. to 3:00 p.m., Monday through Friday. Board members are elected to four-year terms; the next election will take place in 2016. Board members receive compensation of $125 for attendance of regularly scheduled meetings and $25 per day for one additional day of District work per month and for each day on which a Director attends one or more committee meetings. Monthly and annual pay limits are established at $175 and $2,100, respectively. The current board of directors is as follows: Table 6.1: Current ASCWD Board of Directors Director Term Expiration Janet Grant, President 11/30/2018 John Northrop, Vice-President 11/30/2020 Evan Salke, Director 11/30/2018 Dave Smelser, Director 11/30/2020 Christine York, Director 11/30/2018 6.5 Management Efficiencies and Staffing The daily operations of the District are overseen by the General Manager, who oversees four departments: Administration (1 employee), Recreation (seasonal employees), Operations and Maintenance (water and sewer), and the Fire Department (under a contract for management and first response with North Tahoe Fire Protection District NTFPD). The District maintains a total of four year round employees and two seasonal employees. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-5 North Tahoe and Martis Valley MSR The District operates with minimal staffing, facilities, and equipment. Should further cost efficiencies and facility sharing become necessary, options may include the use of joint powers authority, technological improvements, and/or out-sourcing of services. ASCWD is a member of two JPAs for the operation of a common risk management and insurance program. Contract Services The District contracts for General Manager and financial services. The current General Manager contract was established on July 1, 2008 and is with Collins Engineering Consulting, LTD for $8,882.50 per month. The contract continues in perpetuity unless terminated under the conditions of the Agreement (ASCWD, 2008). The District also contracts with North Tahoe Fire Protection District for the management of the Alpine Meadows Fire Department. Solid waste disposal is contracted to Tahoe Truckee Sierra Disposal Company. Technology/Management The District utilizes a SCADA system to electronically monitor critical water and sewer. The District is in the third and final year of a water meter replacement program. The new meters are read remotely by the passing meter reader. The meters have leak detection technology and facility managers are notified when there is a leak. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-6 North Tahoe and Martis Valley MSR 6.6 Population and Growth Population It has been Placer County General Plan policy to steer urban growth to the cities, which is confirmed in the 2013 Placer County Housing Element. While the County has grown at a rapid pace, much of this growth has occurred within the cities. Unincorporated Placer County’s population grew at an AAGR of 1.8 percent between 1990 and 2000. Incorporated areas of the County grew at an Average Annual Growth Rate (AAGR) of 5.2 percent. From 2000 to 2010, Placer County as a whole had a 3.4 percent AAGR for population, a rate nearly three times California’s population AAGR of 1.0 percent during this period. Most of this growth occurred in the incorporated areas of the county where the AAGR was 5.0 percent between 2000 and 2010. Growth in unincorporated areas of the county slowed to an AAGR of 0.7 percent. The 2010 Census reported that there is a population of approximately 602 residents in Census Tract 220.14, Block Group 3, which is the closest GIS shape file boundary reflecting the District. The District projects that future growth will occur at a rate of 0.5 percent, which seems reasonable in that there do not seem to be any new major projects on the horizon and it is unlikely that revisions to the area plan will occur in the near future. According to the District, approximately 25 percent of the homes are full-time residences. Population growth rates within the District were estimated using historical growth rates from the U.S. Census and input from District staff. The ASCWD estimates population growth based on customer connections: Table 6.2: Estimated # of Future Customers Projected # # # # Projected Customers Customers Customers Customers # Customers Service in 2003 in 2008 in 2012 in 20174 in 20224 Water1 602 643 653 669 686 Wastewater1 602 643 653 669 686 Fire/emergency 500 400 410 420 431 services2 Solid Waste --- 512 512 525 538 Parks3 500 1,555 980 1,005 1,030 1 Number of connections billed 2 Number of residents based on population at 25 percent full time residents and 2.5 residents per household 3 Number of park passes and group passes sold 4 Projected based on 0.5 percent annual growth projections Source: ASCWD projections Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-7 North Tahoe and Martis Valley MSR Estimates of population in resort areas are difficult to predict, as populations are transient and have significant variation throughout the year. There are no current studies that accurately project the number of seasonal visitors during peak times. Service providers typically provide services based on land use type and variety of complicated flow or fixture unit values. The water and wastewater connections included in the above table reflect permanent residents, seasonal uses and/or demands, as well as visitor uses. Table 6.3: Summary of Existing Population Permanent Estimated Current Peak Population (2013) Visitor Population1 Alpine Springs CWD 191 1,5462 Projected Growth and Development Alpine Springs CWD is outside of the Tahoe Regional Planning Agency planning area. The Placer County General Plan serves as the County’s vision for long-term land use development and conservation. Placer County’s General Plan, adopted on August 16, 1994, and updated May 21, 2013, provides a series of goals, policies, standards and implementation programs to guide the land use, development, and environmental quality of the County. The Alpine Springs Area Plan was completed in 1994. The county has not established a time frame for updating the Alpine Springs Area Plan and no substantial changes have been made to that Plan since its adoption. The primary land uses within the District consist of single family dwellings, multiple family dwellings, condominiums, commercial development and the ski area. Substantial new growth is not anticipated and most growth will likely occur in the form of infill. There are approximately 100 vacant lots available for building. The District plans approximately two new water and wastewater service connections per year, so growth is very slow. For purposes of this study, a five percent population growth rate is projected. While population growth may be greater than the number of projected service connections, much of the new increase is assumed to occur on lands already having water and sewer service connections. The District boundary is relatively large compared to the developed area of Alpine Springs. The vast majority of the District takes in the alpine high mountain ridges on the north, south, and west that are occupied by the ski resort. Most of the development area is confined to the valley area. There is currently one development project proposed – Alpine Sierra Development – which includes 33 single family dwellings, five of which will include second dwellings, and 14 townhomes on 46 acres. As of April 15, 2014, the project application remains incomplete and Placer County staff has advised that an Environmental Impact Report is required to complete the 1 This column shows the # overnight visitors. (Day-use only visitors are not included.) 2 Overnight visitor population for ASCWD calculated from 653 units x 2.66 persons per household and 89% absentee owner unit rate. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-8 North Tahoe and Martis Valley MSR processing of the application. There is no published schedule for completion for the planning review process for this project. Absent consideration of the Alpine Sierra Development project, growth within the District is minimal and mostly confined to infill of existing previously subdivided lots. Disadvantaged Unincorporated Communities As described in Chapter 3, LAFCo is required to consider the provision of public services to disadvantaged unincorporated communities (DUCs). Relevant data were reviewed for the Alpine Springs area. No DUCs have been identified within Alpine Springs CWD boundaries, its SOI, or adjacent areas. The U.S. Census 2010 found the median household income (MHI) in the 96146 zip code was $52,333.3 This is higher than the DUC threshold MHI of less than $48,706 (80 percent of the statewide MHI). Additionally, this area does receive adequate water, wastewater, and fire protection services as detailed in this MSR. Please see Chapter 3, Section 3.6 of this MSR for more information on disadvantaged unincorporated communities. 6.7 Financing This section evaluates the factors affecting the financing of operations and improvements for ASCWD. Information on District financing is derived from audited financial statements for the Fiscal Year 2011/2012, as well as information provided by District staff. These statements represent the financial statements of the District’s consolidated services, and follow Government Accounting Standards Board (GASB) method of Accrual accounting. The District has Governmental Funds, which include a General Fund and a Park Fund, and a Proprietary Fund (Enterprise Fund), which includes a Water Fund, a Sewer Fund, and a Garbage Fund. Overall, ASCWD provides a range of public services in a very cost-effective manner, compared to other districts, as described in Appendix 5 (AP.5: Salary Information from State Databases). Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2013. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: http://www.alpinesprings.org/home . District Revenues and Expenditures The District’s operating revenues exceeded expenditures in both Fiscal Year (FY) 2010/2011 and 2011/2012 (Table 6.4). There is adequate revenue to meet current obligations and those expected in the near future. As shown in Table 6.4, an annual recurring net income of 3 2010 census via American Fact Finder website at: <http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF>. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-9 North Tahoe and Martis Valley MSR approximately $300,000 is estimated for the ASCWD based on District operating revenues totaling approximately $1.74 million and District operating expenditures of approximately $1.45 million. Table 6.4: ASCWD Revenues, Expenditures, and Change in Net Assets – Fiscal Years 2010/2011 and 2011/2012 Source FY2011/2012 FY2010/2011 Operating Revenues Water $634,531 627,608 Sewer 243,822 240,346 Garbage 182,044 175,671 Park 20,631 19,570 Subtotal $1,081,028 $1,063,195 General Revenues Property Taxes 557,474 552,828 Contributions 62,572 74,640 Interest & Other 48,666 51,301 Subtotal 668,712 678,769 Total Revenues $1,749,740 $1,741,964 Expenditures General Government 550,586 560,692 Park 125,659 117,993 Water 477,240 473,080 Sewer 129,128 129,305 Garbage 169,562 164,843 Total Expenditures $1,452,175 $1,445,913 Change in Net Assets 297,565 296,051 Beginning Net Assets 3,551,918 3,225,896 Ending Net Assets $3,849,483 $3,551,918 Source: Independent Auditor’s Report (Damore, Hamric & Schneider, Inc., 2012, p. 9) Recurring Revenues ASCWD operating revenues include service charges, property tax, connection fees, grants and other revenues. Grants and other revenues are allocated to administration services. Property tax revenue, which was $557,474 for FY 2011/2012, is a main source of general revenue for the District. Beginning in 2011, approximately 80 percent of the District’s gross property tax Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-10 North Tahoe and Martis Valley MSR revenues are used to pay for the contract for fire services with North Tahoe Fire Protection District. Service charges are collected for all services provided by the District, and connection fees are collected for water and wastewater services. Water and sewer user fee revenue was $878,353 in FY 2011/2012. Solid waste fees were $182,044 and Park revenues included $20,631 in the same FY, both of which were slightly higher than the previous FY. Recurring Expenditures Operating expenditures include direct operating services, administration of direct services, and administration of capital outlays. Costs of labor include contract staff, salaries, payroll taxes, workers' compensation, and benefits to include PERS contributions, and a health plan reimbursement arrangement. Cost of labor represents approximately 32 percent of the District's total budget. The fiscal year (FY) 2012/2013 contract with NTFPD was $416,400 (NTFPD, 2012), which was increased to $440,000 for FY 2013/2014. The ongoing contract is a 15-year agreement to provide management and staffing of the Alpine Meadows Fire Station at least 150 days per year. Also, the ASCWD pays for utilities, repairs and maintenance, and alarm system for the fire station at an estimated $19,156 for FY 2012/2013. New for FY 2013/2014, the ASCWD is providing $14,550 for FY 2013/2014 to assist the NTFPD with residential defensible space work within the boundaries of the District; and $5,000 for plan check fees, reports, and construction inspections related to fire and life safety cost recovery fees for projects within the boundaries of ASCWD (NTFPD, 2013). District Assets and Liabilities Operating expenditures include direct operating services, administration of direct services, and administration of capital outlays. Costs of labor include salaries, payroll taxes, workers' compensation, and benefits to include PERS contributions, health, vision and dental insurance, as well as a health reimbursement arrangement. Current assets for 2012 totaled $3,849,483. The District’s net assets are composed of the capital assets of the District: water supply, storage, transmission, distribution systems, sewer collection systems, land, buildings, park facilities, and equipment. With respect to property, plant and equipment, the District held $1,977,534 million in fixed assets, net of accumulated depreciation. Plant and equipment accounted for 1,965,216, land usage and easement rights making up the remaining. Depreciation in 2012 was $87,806. Table 6.5: Statement of Net Assets, 2012 Assets and Liabilities Amount Assets Current Assets 1,975,262 Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-11 North Tahoe and Martis Valley MSR Capital Assets 1,977,534 Total Assets 3,952,796 Liabilities Current Liabilities 84,341 Total Long-Term Liabilities 18,972 Total Liabilities 103,313 Net Assets Investment in Capital Assets, 1,935,526 Net of Related Debt Unrestricted 1,916,957 Total Net Assets $3,849,483 Source: Independent Auditor’s Report (Damore, Hamric & Schneider, Inc., 2012, p. 8) Long Term Liabilities and Debt Long-term debt and investment information is for all District activities such as water, wastewater, parks and recreation. Long-term debt (i.e., bonds, certificates of participation, etc.) are key methods used by the District to finance capital improvements. At the end of 2012, the District had outstanding debt in the amount of $42,008 that was for the purchase of two vertical water wells. The District’s long-term liabilities at year end 2012 included accounts payable, accrued compensated absences for employees, and accrued payroll, and totaled $61,305. Asset Maintenance and Replacement On August 8, 2003, the ASCWD Board established Policy 2.7.0, requiring the District to address the need to accumulate reserves for recapitalization and capital outlay. Specifically, the District must reserve a minimum of 2.5 percent of annual cash reserves and place it into the recapitalization fund to be used exclusively to pay for recapitalization of facilities. The ASCWD identifies capital improvements each budget cycle for the upcoming and future years. For FY 2012/2013, the District proposed improvements and repairs in the amount of $516,000 (ASCWD, 2012). Cost Avoidance ASCWD is a member of two joint-power authorities (JPA) for the operation of a common risk management and insurance program covering workers’ compensation, property, general and automobile liability, and automobile physical damage insurance. The District is a member of the public employee retirement system (Placer LAFCO, 2004). Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-12 North Tahoe and Martis Valley MSR 6.8: Water Services Service Overview The District is located in the Bear Creek watershed, which flows to the Truckee River. The District provides domestic water service to four commercial centers (which includes the Alpine Meadows Ski Area, a 30-unit apartment complex, 462 single-family homes, and 130 condominiums (Placer LAFCO, 2004, pp. 4.1-3). The District’s water system facilities include pumps, transmission, distribution, storage, and treatment. The domestic water supply system is owned, operated, and managed by the District. The system consists of four springs, two wells for domestic use (R-1 and AME well), two wells (R-1 and R-2) for snow making, one of which is also connected to the domestic system, six storage tanks, water treatment includes chlorination facilities, two distribution booster pump stations, and four distribution zones. Water Supply/Demand The District obtains its water supply from the Alpine Springs Watershed via four springs (horizontal wells) and two vertical wells. Additionally, in 1992 the District purchased two snow- making wells, R-1 and R-2, which provide a combined capacity of 850 gpm (Placer LAFCO, 2004, pp. 4.1-3). Horizontal wells 1 through 4 are on USFS lands; Alpine Meadows Estate (AME) Well and Wells R1 and R2 are on District-owned land (ASCWD, 2013, p. 6). Water Supply The District’s water system has a total of seven water supply wells, three of which are primary domestic water sources (Table 6.6). The water system is divided into four pressure zones, Zones 1–4. The “springs” referred to in the table below are horizontal gravity flow wells that flow directly into the highest pressure zone (Zone 1). Vertical Wells R1 and R2 are used for supplying snowmaking water to the Alpine Meadows Ski Area. Table 6.6: ASCWD Water production and storage facilities Supply Capacity Storage Capacity Production Facility (gpm) Facility1 (gallons) Spring 1 60 Tank 1 100,000 Spring 2 and 4 118 Tank 2 100,000 Spring 3 14 Tank 3 100,000 AME Well1 25 Tank 4 100,000 Vertical Well R1 350 Tank 5 100,000 Vertical Well R22 500 Tank 4-A 500,000 Total Capacity 1,000,000 Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-13 North Tahoe and Martis Valley MSR 1 The AME Well is currently being rehabilitated, which will restore its capacity to 150–200 gpm (ASCWD, 2013, p. 5). 2 Vertical Well R2 will require improvements prior to use as a potable water supply. Source: (Placer LAFCO, 2004, pp. 4.1-3) The District indicates that its total water supply design capacity is 567 gpm, for an average annual supply of approximately 298 mg (ASCWD, 2013, p. 5). The capacity does not include the Vertical Wells R1 and R2, which are used for snowmaking. The firm yield of the District’s overall water supply is estimated at 50 percent of the average annual supply, which equates to approximately 149 mg. If only spring water is utilized, as desired by District residents, peak day demands will exceed supplies during a prolonged drought. However, in times of drought Well R1 is utilized to supplement system needs and to meet peak system demands during the summer months. Vertical Well R2 exceeds EPA’s secondary standard for manganese levels and would require additional treatment; additionally it is not equipped with a chlorine feed system (Long, 2013, p. 3). If Vertical Well R1 water is used during drought years, the District can supply 1,089 gpm with a firm capacity of 589 gpm. Water Demand Alpine Springs County Water District’s current water demand consists of domestic uses and snowmaking machines for Alpine Meadows Ski Area. As of 2012, ASCWD provided domestic water service to 653 customers for a total of 1,595 equivalent dwelling units (EDU), as well as raw water from its Vertical Wells to the Ski Area. Annual domestic demand totaled 204 acre- feet (AF) in 2012, with a maximum day domestic demand of approximately 460 gpm. Table 6.7: Summary of ASCWD Water Demand Average Maximum Peak Equivalent Annual Monthly Day Annual Dwelling Demand Demand Demand (acre- Demand Source Units (gpd) (gpd) (gpm) feet) Present Residential 1,498 142,300 275,400 239 159 Commercial 97 9,200 17,800 15 10 Unaccounted (20%) 30,300 58,640 51 34 Total 1,595 181,800 351,840 304 204 Future (Buildout) Residential 2,000 285,000 368,000 319 319 Commercial 150 21,400 27,600 24 24 Unaccounted (10%) 30,640 39,560 34 34 Total 2,150 337,040 435,160 378 378 Source: (Placer LAFCO, 2004, pp. 4.1-4) Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-14 North Tahoe and Martis Valley MSR The District anticipates an increase of approximately 33 customers by 2022. The Alpine Springs Development would increase the average day demand by 6.9 gpm and a maximum day demand by 31.1 gpm (Long, 2013, p. 2). Water Infrastructure and Facilities Treatment Systems The only treatment provided to the system is disinfection by chlorine. Transmission lines are periodically flushed, particularly in the lower pressure zones. Water Storage The District maintains six water storage tanks with a combined capacity of 1 million gallons. Four of the storage tanks having a capacity of 100,000 gallons each, are in need of replacement. Two of the water storage tanks were repaired in 2014. The largest storage tank is a 500,000 gallon redwood tank built in 1978 and has 25 years of useful life remaining (Placer LAFCO, 2004, pp. 4.1-3). According to California Title 22, a water system must be able to supply maximum day demand with all source operations, including adequate fire flow storage and peak hourly flow. Fluctuations in water demand exceeding maximum day demand are supplied from storage tanks. Storage requirements are as follows: fire protection at 3,000 gpm for three hours, operation storage at 25 percent of maximum day demand, and emergency storage totaling 25 percent of fire and operational storage. Under these assumptions, ASCWD indicates it has sufficient storage for projected buildout needs, and excess supply capacity now that one of the snow wells has been connected to the system. Table 1.8: ASCWD Water Storage Summary Storage Needs (gallons) Storage Requirement As of 2004 Buildout Fire Flow 540,000 540,000 Equalization 109,440 136,080 Emergency 162,488 169,020 Total 812,438 845,100 Total Treated Available 1,000,000 1,000,000 Storage Available Storage Surplus 187,562 154,900 Source: (Placer LAFCO, 2004, pp. 4.1-5) Distribution and Transmission Water throughout the system is generally gravity fed, although there are two pressure pumps to aid delivery to lower pressure zones. Most distribution piping is composed of asbestos Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-15 North Tahoe and Martis Valley MSR cement pipe ranging in size from 6–10 inches diameter (Placer County, 1994, pp. A-6). Flexibility of supply to specific zones during emergencies is adequate (Placer County, 1994, pp. A-6). Almost all areas can be supplied from two directions by separate sources or storage tanks. The following table provides a summary of existing system pressure zone surplus and deficit. Table 6.9: Existing System Pressure/Zone Surplus/Deficit Summary Available Available Average Max Day Source from Upper Day Max Day Surplus/ Supply Zones Demand Demand Deficit Zone Source (gpm) (gpm) (gpm) (gpm) (gpm) Zone 1 Wells 1, 2, 178 17 77 101 4 Zone 2 None 70 24 108 -7 Zone 3 Well 3, 39 -7 49 221 -189 AME Well Zone 4 Well R1 350 -189 12 54 108 Totals 567 102 460 13 Source: (Long, 2013, pp. Table 4, 4) The Proposed Alpine Sierra Development Water & Sewer Facility Evaluation (Study) prepared by Brooke Long identified existing distribution system limitations and deficiencies. Distribution deficiencies identified include the following: • Maximum day supply capacity deficiencies in Zones 2 and 3 • Source water and supply reliability concerns • Areas with pressure and fire flow deficiencies during maximum day demand conditions The Study recommends conveying excess supply capacity from Well R1 through the existing distribution system from Pressure Zone 4 at the bottom of the valley up through Pressure Zone 3, Pressure Zone 2, and finally into Pressure Zone 1. The recommendation would require rebuilding the existing Pump Station B and installing two new pump stations. Pressure and fire flow deficiencies exist in the Juniper Mountain Subdivision and fire flow and redundancies and deficiencies in portions of the Bear Creek Subdivision and Alpine Estates Subdivision. The report recommends creating a new pressure zone between Zones 2 and 3, which would include installation of additional waterline and two pressure reducing stations. The recommendation would increase the maximum day demand pressure at the highest point and provide adequate fire flow. In summary, the District has recently reconstructed Well R-1 and connected it into the domestic distribution system at a cost of $549,500. The District also has several ongoing Capital Improvement Projects which will (1) refurbish the Districts AME Well (Projected cost Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-16 North Tahoe and Martis Valley MSR $$1,120,000 of which $570,000 has been expended to date), and (2) installation of 1,100 linear feet of 8 inch ductile iron water pipe (projected cost $400,000). Challenges in Provision of Water Services Two projects within and surrounding the District are currently being reviewed by Placer County and Placer LAFCO: 1. Alpine Sierra Development within the District, 2. Village at Squaw Valley Specific Plan, The District will need to actively participate in the planning process for each of these proposals to ensure that water services within the District are not adversely impacted. Please also note that an application for incorporation of Squaw Valley by local residents was processed by LAFCo in the years 2013 – 2015 and this application was later withdrawn. Climate Change Climate change has been identified as one of the factors that increases uncertainty in regards to water supply in a recent US Bureau of Reclamation study of the Truckee River Basin (BOR, 2015). This study found that average annual groundwater recharge in the Martis Valley aquifer will likely change under future climate scenarios. Since the District relies upon groundwater for its water supply, this issue is a concern. Considering the worst case scenarios, under a warmer-drier climate, groundwater recharge in the Martis Valley could decrease up to 23 percent compared to a reference condition. A Hotter-Drier climate could decrease Martis Valley groundwater recharge up to 33 percent compared to a reference condition due to decreases in the extent of snowpack and a faster snowmelt season. Wetter conditions are also possible under various climate change scenarios and these types of conditions could potentially increase groundwater recharge. A water demand study included in this report indicates that demand will not outstrip supply in the Lake Tahoe Basin until the year 2080, under a robust economic scenario (BOR, 2015). The Bureau of Reclamation, as well as funding researchers at the Desert Research Institute and PCWA are also developing an integrated groundwater, surface water, and climate change model of the Martis Valley Groundwater Basin (MVGB). It is not known yet if the District will be included in the future studies. However, climatically shifting runoff and groundwater availability is an issue that the District should consider in its own water planning efforts as well as consideration of involvement in regional water planning. Water Service Adequacy A water and sewer evaluation was prepared in 2011 and updated in 2013 as part of the Alpine Sierra Development preparation in order to review the District’s system capabilities. The report noted several existing water distribution system deficiencies (Long, 2013, p. 6): • Maximum day supply capacity deficiencies in pressure zones 2 and 3 • Source water and supply reliability concerns Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-17 North Tahoe and Martis Valley MSR • Areas with pressure and fire flow deficiencies (available fire flow <1,000 gpm) during maximum day demand conditions The District has identified fire flow improvements for the Juniper Mountain Subdivision in its Long Range Water and Sewer Plan. The improvements have been targeted for “future years” per the District’s 2012 budget. However, should the Alpine Sierra Development be approved, the system deficiencies noted above will be addressed through both onsite and offsite improvements. No complaints were received by the District in 2011; one was received in 2012 and was regarding water fees. 6.9 Wastewater Services Service Overview The District’s wastewater service provision is limited to collection; all treatment and disposal is provided by the Truckee-Tahoe Sanitation Agency, of which the District is a member. The District owns and operates its sewer collection system for the benefit of residential and commercial customers within its boundaries. The system was constructed in the late 1960s, early 1970s. Wastewater is collected within the District and transmitted to the Tahoe-Truckee Sanitation Agency (TTSA) treatment facility for treatment. The TTSA4 is a regional treatment facility located in Truckee, California, which was established to treat and dispose of wastewater generated in the area located between Truckee and Lake Tahoe. The TTSA receives wastewater from its member districts at various locations along the Truckee River Interceptor sewer line which runs from Tahoe City to the TTSA wastewater treatment plant. The District does not currently provide any out of territory services. The District has a Long Range Water and Sewer Plan to identify and plan for needed maintenance and upgrades of its system. Wastewater Capacity The District currently serves 653 wastewater connections within its District, of which 5 are commercial customers (ASCWD, 2013, p. 8). The District does not utilize an equivalent unit conversion for commercial or industrial customers. The Proposed Alpine Sierra Development Water and Sewer Facility Evaluation (Long, 2013, p. 12) quotes the ASCWD Recommended Long Range Water and Sewer Master Plan prepared by Lumos and Associates, dated December 2006, 4 Members of the Tahoe-Truckee Sanitation Agency (TTSA) include Tahoe City Public Utilities District, North Tahoe Public Utilities District, Alpine Springs County Water District, Squaw Valley Public Services District, and Truckee Sanitation District (Placer County, 2003). Northstar CSD is also served by T-TSA facilities through a contract with TSD for shared use of TSD’s collection system infrastructure in route to the TTSA. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-18 North Tahoe and Martis Valley MSR as concluding that “unless substantial growth is seen in the Alpine Springs community, the size of the sewer system will continue to adequately serve the community”. According to the District’s previous MSR, which incorporated information from the TTSA MSR, ASCWD has an Average Day Demand (ADD) of 0.066 mgd and a peak-hour flow of 0.28 mgd in the summer and 0.29 in the winter (Placer LAFCO, 2004, pp. 4.2-3). At buildout peak-hour flows are expected to increase to approximately 0.40 mgd. The following table provides a summary of current and projected wastewater flows for the District: Table 6.10: ASCWD Current and Future Wastewater Flows Average Day Demand Peak-Hour Flow (mgd) Timeframe MGD EDU1 Summer Winter Current 0.0662 653 0.28 0.29 Buildout 0.40 0.40 1 EDU = one equivalent dwelling unit (EDU) with wastewater generation of 420 gallons-per-day (gpd). 2 (Nevada LAFCo, 2003, pp. 4-6) The District services five commercial customers, which are included in the EDU total. Source: (Placer LAFCO, 2004, pp. 4.2-3) Wastewater Infrastructure and Facilities ASCWD’s sewer infrastructure was built incrementally along with specific development patterns in the community. However, there is no information available on the length of mains, appurtenances, or other important infrastructure components (Placer LAFCO, 2004, pp. 4.2-3). The District has several ongoing capital improvement projects including replacement of approximately 1,200 linear feet of exist 6 inch clay sewer main with 8 inch PVC sewer main (Projected cost $415,000). Treatment Systems The District does not provide effluent treatment, nor does it dispose of effluent or waste solids. All effluent is transmitted to T-TSA facilities for treatment and disposal. Challenges Because there is no readily available information regarding the District’s sewer infrastructure, it is difficult to identify challenges to the provision of services. However, typical challenges to similar districts include aging infrastructure, capital replacement, and infiltration/inflow (I/I) intrusion of the system. Although there is no formal capital improvement plan for the District, in 2006 the District had a Recommended Long Range Water and Sewer Master Plan prepared, which identified the need for a District-wide sewer line evaluation. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-19 North Tahoe and Martis Valley MSR Wastewater Service Adequacy Studies prepared in the mid-2000s concluded that there is adequate capacity for collection and transmission by the District, and treatment by TTSA. See the TTSA section for further information regarding the Agency’s capacity and availability. 6.10: Fire and Emergency Services Service Overview The ASCWD provides facilities and funding for fire and emergency services in Alpine Meadows, which is accomplished through a contract with the North Tahoe Fire Protection District (NTFPD) to provide fire suppression and emergency medical services. The NTFPD provides structure fire protection, emergency medical response, rescue/extrication, hazardous materials response, fire safety education, arson investigation and fire prevention within the ASCWD. Because the entirety of the ASCWD is classified as State Responsibility Area (SRA), the responsibility for prevention and suppression of wildland fires falls to Cal Fire. The USFS, Tahoe National Forest, Truckee Ranger District, provides these direct protection responsibilities on behalf of Cal Fire through an Exchange of Acres Agreement. Wildfire protection services are provided at the local level by NTFPD. More information regarding the NTFPD is located in Chapter 9 of this MSR. Other services provided by NTFPD include plan review, code enforcement, public education, fire investigation, and the Defensible Space Program. The ASCWD’s Insurance Service Office (ISO) rating is 6 on a scale of 1 to 10, 1 representing the highest public protection and 10 indicating there is no recognized protection. The Alpine Meadows Community Wildfire Protection Plan was prepared in October 2005, and in 2007, the community of Alpine Meadows became the fifth “firewise” community in the Sierra Nevada and one of only eleven in the state (David Jaramillo, 2009). Figure 1 NTFPD Station at 270 Alpine Infrastructure Needs and Deficiencies Meadows Rd The District has one fire station, which is located at 270 Alpine Meadows Road. The ASCWD maintains fire hydrants throughout all neighborhoods located within its boundaries. The District states that it has scheduled replacement of the small diameter mains (4-6 inch) with 8 inch mains over the next 10 years, which will increase fire flow capabilities (ASCWD, 2013, p. 11). In addition to hydrants, multiple ponds exist along Bear Creek, which provide an additional static water supply. The Truckee River at the lower end of the community is another excellent water source. The abundant water supply and fire station within the community has allowed Alpine Meadows to maintain its current ISO rating. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-20 North Tahoe and Martis Valley MSR Management Efficiencies/Cost Avoidance/Facilities Sharing Through the NTFPD, Alpine Meadows is also covered by the Lake Tahoe Regional Chiefs Association mutual aid agreement, providing simplified access to Lake Tahoe Basin fire departments upon request. The NTFPD is also a signatory to the California Master Mutual Aid System, which provides access to free firefighting resources throughout the state (Geoarch Sciences, 2005). In 2009, the ASCWD obtained a grant, which was primarily for fuels reduction within the Bear Creek watershed on property owned by ASCWD (David Jaramillo, 2009). Fuels reduction included the removal of small diameter fir and pine as well as shrubs. The NTFPD also has a chipper program that provides curbside chipping to residents by request within the District; a program that has been further funded by the ASCWD in the FY 2013/2014 budget. The intent of fuels reduction is to mitigate wildland fire intensity and spread by removing ladder fuels and undergrowth, and provide more defensible spaces in the event of wildfires. It can be viewed as a cost avoidance strategy as well as benefit to life and safety. Challenges The Alpine Meadows Community Wildfire Protection Plan noted that decreasing budgets and increasing volume within the NTFPD may force its Board at some point to limit commitments to communities outside their district; Alpine Meadows may want to plan for the eventuality of becoming a part of the NTFPD or another fire district, or creating their own fire protection service (Geoarch Sciences, 2005). It may also be beneficial to discuss options and opportunities for shared fire service with the Squaw Valley PSD in order to determine the best efficiency of cost and service. Fire and Emergency Service Adequacy The District contracts with NTFPD to provide all fire and emergency response personnel. Under the contract, the District’s fire station is staffed by NTFPD a minimum of 150 days per year. Fire and emergency response during the remainder of the year is provided from NTFPD’s next closest fire station located in Tahoe City, which is staffed year-round. The response time into the Alpine Meadows from the Tahoe City station is approximately 7-15 minutes. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-21 North Tahoe and Martis Valley MSR 6.11: Park and Recreation Services Service Overview The District operates one park (Alpine Springs Community Park), which is approximately 3-5 acres in size. The park is open to the public on a pay-to-use basis only. The District does not have any established park standards. The park is available for groups, weddings, and events. Infrastructure Needs and Deficiencies Alpine Springs Community Park features include a pond, beach, picnic tables, volleyball net, tennis court, and restrooms (ASCWD, 2013, p. 12). Anticipated expenditures for FY 2012/2013 consisted of maintenance needs for the park and were approximately $13,000. Park revenue is in the form of user fees, for which the District has a fee schedule, and averages around $15,000 annually. Family season passes are available, or one time user fees are based on number of people in a group. The District has not identified any recreation needs. Management Efficiencies/Cost Avoidance/Facilities Sharing The Alpine Springs Community Park is managed by the District’s General Manager who oversees seasonal park employees. Maintenance of the park is performed either by a staff member or contracted to a private firm, depending on availability. Due to the geographic isolation of the park facilities, there is not any readily available cost avoidance or facility sharing opportunities open to the District. It is recommended that the District continue to be open to new measures to increase cost efficiencies, such as competitive bidding processes and other measures. Challenges No challenges related to the provision of parks and recreation were identified by the District. Park and Recreation Service Adequacy It appears that the park facilities are adequate at this time. In the review and entitlement process of the Alpine Sierra development, it may be found that additional park needs are identified. It will be in the District’s best interest to closely review the analysis and recommendations of the EIR and county staff. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-22 North Tahoe and Martis Valley MSR 6.12: Solid Waste Service Overview The ASCWD maintains an agreement with Tahoe Truckee Sierra Disposal Company (TTSD), a private company, for solid waste collection and disposal (ASCWD, 2013, p. 12). Services provided by the TTSD include waste collection and disposal, public outreach, education programs, Christmas tree recycling, green waste pickup, meeting State mandated diversion rate requirements (AB 939), and participating in the curbside recycling “blue bag” program (Nevada LAFCo, 2006, pp. 2.5-1). Infrastructure Needs and Deficiencies The TTSD provides collection services to residential and commercial customers within the District. Disposal is either at the Eastern Placer County Eastern Regional Sanitary Landfill or to the District’s Material Recovery Facility (MRF). The TTSD provides a voluntary household recycling program, as well as hazardous materials, oil, and green waste recycling. Management Efficiencies/Cost Avoidance/Facilities Sharing The contract for garbage services is administered by the ASCWD General Manager. The District paid approximately $116,000 in FY 2012/2013 for its contract with the Disposal Company and revenue for garbage services totaled $177,201. No opportunities for cost avoidance or facilities sharing were identified by the District or the consultants in preparing this MSR. Challenges No challenges were identified by the District, nor were any identified by the consultants in preparing this MSR. Solid Waste Service Adequacy The District did not identify any inadequacies in solid waste services, nor were any identified in the preparing of this MSR. 6.13: Determinations Population and Growth 1. The population within the Alpine Springs County Water District is estimated to include 191 permanent residents as of 2013 and an average of 1,546 overnight visitors. 2. According to the District, approximately 25 percent of the homes are full-time residences. 3. Growth within the District is minimal and mostly confined to infill of existing previously subdivided lots. The District projects that future growth will occur at a rate of 0.5 percent. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-23 North Tahoe and Martis Valley MSR Disadvantaged Unincorporated Communities 4. No areas within the District qualify as a disadvantaged unincorporated community because the median family income exceeds 80% of the state median family income. Present and Planned Capacity of Public Facilities 5. Alpine Springs CWD was established in 1963 to provide water service within its five sq. mi. boundary area in eastern Placer County. 6. Alpine Springs CWD provides a variety of services including water, wastewater collection, solid waste collection, fire/emergency services, and park and recreation services within its service area. Water 7. In general, the District has sufficient water supplies to meet existing average and peak day demands. 8. The District’s peak day demands will exceed supplies provided from its springs during a prolonged drought. However, in times of drought, Horizontal Well R1 is used to supplement system needs. 9. Horizontal Well R2 is not currently suitable for potable water usage due to elevated levels of manganese beyond state limits. 10. The District has existing pressure zone deficiencies that affect the adequacy of fire flow in Zones 2 and 3. The District is considering improvements to address these deficiencies. 11. Two projects within and surrounding the District are currently being reviewed by Placer County and Placer LAFCO: 1) the Alpine Sierra Development within the District and 2) Squaw Valley Specific Plan The District will need to actively participate in the planning process for each of these developments to ensure that water services within the District are not adversely impacted. 12. The District has a Long Range Water and Sewer Plan to identify and plan for needed maintenance and upgrades of its system. Wastewater 13. The District’s wastewater service provision is limited to collection; all treatment and disposal is provided by the Truckee-Tahoe Sanitation Agency, of which the District is a member. 14. The District has a Long Range Water and Sewer Plan to identify and plan for needed maintenance and upgrades of its system. 15. The ASCWD Recommended Long Range Water and Sewer Master Plan prepared by Lumos and Associates (dated December 2006) concluded that “unless substantial growth is seen in the Alpine Springs community, the size of the sewer system will continue to adequately serve the community.” Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-24 North Tahoe and Martis Valley MSR Fire and Emergency Services 16. The ASCWD provides facilities and funding for fire and emergency services in Alpine Meadows, which is accomplished through a contract with the North Tahoe Fire Protection District (NTFPD) to provide fire suppression and emergency medical services. 17. The contract with NTFPD ensures Alpine Springs Fire Station coverage a minimum of 150 days per year, and initial response from NTFPD facilities the remainder of the year. 18. Alpine Springs CWD retains ownership of all fire equipment, supplies, and property and is responsible for staffing of the station with volunteer firefighters. However, the station is not staffed regularly, with one resident firefighter covering the District a portion of the time. Annexation of the lands within the ASCWD to the North Tahoe Fire Protection District for the purpose of providing fire services could alleviate some duplication in costs through sharing of administrative staff, mechanics, repair facilities, and various other items. ASCWD should consider this governance option and provide LAFCo with a brief report, prior to preparation of the next MSR by LAFCo in 2023. 19. The District is made up entirely of State Responsibility Area (SRA) lands, directing responsibility for wildland fire suppression to CalFire. 20. The ASCWD’s Insurance Service Office (ISO) rating is 6 on a scale of 1 to 10. On the scale 1 represents the highest public protection and 10 indicates there is no recognized protection. 21. The Alpine Meadows Community Wildfire Protection Plan was prepared in October 2005, and in 2007, the community of Alpine Meadows became the fifth Firewise community in the Sierra Nevada. Parks and Recreation 22. The District owns and operates one park, the Alpine Springs Community Park. 23. The District does not have any established park and recreation standards. 24. It appears that the park facilities are adequate at this time. 25. In the review and entitlement process of the Alpine Sierra development, it may be found that additional park needs are identified. It will be in the District’s best interest to closely review the analysis and recommendations of the EIR and county staff. 26. It is noted that three districts in the North Tahoe Martis Valley area provide recreation services (ASCWD, North Tahoe PUD, and Tahoe City PUD) as shown in Table E1-1 in the Executive Summary. Other recreation service providers in the region include the Truckee Donner Recreation and Park District, California State Parks, and the U.S. Forest Service. Given this plethora of recreation service providers, LAFCO and its subject districts should study whether additional efficiencies could be gained through structural or organizational changes. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-25 North Tahoe and Martis Valley MSR Solid Waste and Recycling 27. The District’s oversight of its solid waste removal contract with TTSD appears both sufficient and efficient. No management efficiencies, cost avoidance, or facilities sharing opportunities were identified during the preparation of this MSR. 28. The District did not identify any inadequacies in solid waste services, nor were any identified in the preparing of this MSR. Financial Ability of Agency to Provide Services 29. The District’s operating revenues exceeded expenditures in both Fiscal Year (FY) 2010/2011 and 2011/2012 (Table 6.4). There is adequate revenue to meet current obligations and those expected in the near future. 30. ASCWD provides a range of services in a very cost effective manner as described in Appendix 5 (AP.5: Salary Information from State Databases). 31. Approximately 80 percent of the District’s gross property tax revenues are used to pay for the contract for fire services with North Tahoe Fire Protection District. 32. It is recommended that the District continue to be open to new measures to increase cost efficiencies, such as competitive bidding processes and other measures. Status of, and Opportunities for, Shared Facilities 33. ASCWD has maintained an on-going agreement for the past several years with North Tahoe Fire Protection District for operations of facilities of the District’s fire protection services. Accountability for Community Service Needs, Including Governmental Structure and Operation Efficiencies 34. ASCWD was established in 1963 pursuant to Division 12 of the Water Code of the State of California. It was authorized on March 25, 1963. 35. An elected five-member Board of Directors oversees the management of the District’s public resources. ASCWD meets its statutory financial reporting requirements that ensure its operations are conducted in an open and transparent manner. ASCWD meets its fiscal accountability requirement to its customers through budgetary and financial reporting using its website as a communication channel and other communication tools. The District provides public notice of meetings, and posts agendas and minutes online. 36. Operational and management efficiency is important to ASCWD. Management efficiency is obtained in part by the District’s organizational structure where the Board and management work together in the identification of goals and issues and assignment of staff as appropriate for each type of service provided. The District has adopted policies to guide District operations. ASCWD uses master plans, annual budget, and annual Capital Improvement Plan to plan for and carry out operations and capital programs. The District continues its work to improve efficiency in numerous areas of service, including operations, finance, customer service and field services. Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-26 North Tahoe and Martis Valley MSR 37. There is a risk is that a District that serves only 191 permanent customers may not be sustainable over the long-run. It is recommended that ASCWD produce a study that outlines various options, including reorganization of its government structure, for ensuring the long term and sustainable provision of public services to customers within ASCWD’s boundaries. The results of this study should be presented to LAFCO prior to the year 2023, when LAFCO prepares the next MSR for ASCWD. 6.13: References ASCWD. (2008, July 13). Agreement for General Management Services. Alpine Meadows, CA: ASCWD. ASCWD. (2012). ASCWD Draft Budget . Alpine Springs: ASCWD. ASCWD. (2013). Placer LAFCO MSR Update Request for Information Response. Alpine Springs, CA. Damore, Hamric & Schneider, Inc. (2012). Alpine Springs County Water District Financial Statements and Auditor's Report for the Fiscal Years Ended June 30, 2012 and 2011. Sacramento. David Jaramillo, R. (2009). Alpine Meadows Fuel Reduction Project. Retrieved May 5, 2014, from Alpine Springs County Water District: <http://98.129.89.114/tahoe/478/site/ graphics/pdf/Alpine%20Meadows%20Outreach%20JC%20edits.pdf> Geoarch Sciences, I. &. (2005, October). Alpine Meadows Community Wildfire Protection Plan . Retrieved May 5, 2014, from North Tahoe Fire Protection District: http://www.ntfire.net/Images/Images/alpine%20cwpp%20(reduced%20file).htm JLong, B. (2013). Proposed Alpine Sierra Development Water & Sewer Evaluation. Alpine Meadows: ASCWD. Nevada LAFCo. (2003, November). Eastern County Wastewater MSR. Retrieved June 1, 2014, from Nevada LAFCo: <http://www.mynevadacounty.com/nc/lafco/docs/ LAFCo%20Municipal%20Service%20Reviews/Completed%20MSRs/2003%20Eastern%20Nev ada%20County%20Wastewater%20MSR.pdf>. Nevada LAFCo. (2006, April). Eastern Nevada County General Government Services Municipal Service Review. Retrieved June 2, 2014, from Nevada LAFCo: http://www.mynevadacounty.com/nc/lafco/docs/LAFCo%20Municipal%20Service%20R eviews/Completed%20MSRs/2006%20Eastern%20County%20General%20Government%20 Services%20MSR.pdf NTFPD. (2012, September 19). Fiscal year 2012/2013 Final Budget. Retrieved May 5, 2014, from North Tahoe Fire Protection District: <http://www.ntfire.net/Images/ Images/final%20budget%202012-2013.pdf> Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-27 North Tahoe and Martis Valley MSR NTFPD. (2013, September 18). Fiscal Year 2013/2014 Final Budget. Retrieved May 5, 2014, from North Tahoe Fire Protection District: http://www.ntfire.net/Images/Images/13- 14%20final%20budget.pdf Placer County. (1994). Placer County General Plan: Draft Background Report Technical Appendices. Retrieved May 30, 2014, from Tahoe Regional Planning Agency: http://www.trpa.org/documents/rseis/General%20Refs/Placer%20County%20General% 20Plan%201994/Background%20Report/Appendices.pdf Placer LAFCO. (2004). Municipal Services Review Area 3 Services. Auburn: Placer LAFCO. U.S. Department of the Interior, Bureau of Reclamation. (August 2015 ). Truckee Basin Study, Basin Study Report. 310 pages. < http://www.usbr.gov/watersmart/bsp/> and <http://www.usbr.gov/watersmart/bsp/docs/finalreport/truckee/tbsbasinstudy.pdf> . Draft Final MSR, August 2018 Chapter 6, Alpine Springs CWD 6-28 North Tahoe and Martis Valley MSR CHAPTER 7: DONNER SUMMIT PUBLIC UTILITY DISTRICT Photo Courtesy of: http://trailstrekker.blogspot.com/2011/08/lake-angela-by-way-of-pacific-crest.html This chapter of the Municipal Service Review (MSR) describes the provision of wastewater services by the Donner Summit Public Utility District (DSPUD/District). This District was formed in 1948 and currently provides water treatment and distribution, and sewer collection and treatment services within its service area. Table of Contents 7.1 Agency Profile ...................................................................................... 7-2 7.2 Overview of District................................................................................ 7-2 7.3: Formation And Boundary .......................................................................... 7-4 7.4: Accountability and Governance .................................................................. 7-5 7.5: Management Efficiencies and Staffing .......................................................... 7-8 7.6: Population and Growth ............................................................................ 7-8 7.7 District Services ...................................................................................7-12 7.8: Financing ...........................................................................................7-21 7.9: Service Adequacy .................................................................................7-35 7.10: Opportunities to Share Facilities ...............................................................7-35 7.11: Determinations ...................................................................................7-37 7.12: References ........................................................................................7-40 Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-1 North Tahoe and Martis Valley MSR 7.1 AGENCY PROFILE Donner Summit Public Utility District Type of District: Public Utility District Enabling Legislation: Public Utility District Act: Public Utilities Code §§ 15501-18055 Functions/Services: Water treatment and distribution, and sewer collection and treatment Main Office: 53823 Sherritt Lane, Soda Springs, CA 95728 Mailing Address: P.O. Box 610, Soda Springs, CA 95728 Phone No.: (530) 426-3456 Fax No.: (530) 426-3460 Web Site: www.dspud.com General Manager: Tom Skjelstad Email: tskjelstad@dspud.com Other Contact: Julie Bartolini Email: jbartolini@ dspud.com Governing Body: Elected Board of Directors – 4-year terms Name Role Term Ends Cathy Preis President 12/31/2020 Sara Schrichte Vice President 12/31/2020 Robert Sherwood Secretary 12/31/2020 Alex Medveczky Director 12/31/2018 Phil Gamick Director 12/31/2018 Meeting Schedule: Third Tuesday of each month, 6:00 p.m. Meeting Location: District Office, 53823 Sherritt Lane, Soda Springs, CA 95728 Date of Formation: 1950 Principal County: Placer County Other: Multi-county district serving Nevada County and Placer County 7.2 OVERVIEW OF DISTRICT The Donner Summit Public Utility District (DSPUD/District) provides sewer collection and treatment, and water treatment and distribution to customers within its service area. This Municipal Service Review (MSR) is the second for the District. The District’s first MSR was prepared under the jurisdiction of Nevada LAFCo in 2004 under the Western County Wastewater Services MSR. Placer LAFCo is the principal LAFCo for the DSPUD. The PUD is a multi-county district serving customers in both Nevada County and Placer County. DSPUD is a public agency formed in 1950 with Senate Bill No. 35, “The Donner Summit Public Utility District Act,” under the provisions of the Public Utility District Act §§ 15501-18055 for the primary purpose of providing water and sewer services in the service area. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-2 North Tahoe and Martis Valley MSR TYPE AND EXTENT OF SERVICES The District provides sewer collection and treatment, and water treatment and distribution to customers within its service area. The District also provides maintenance of related facilities and equipment. Primary activities for the District’s water system include repairs and maintenance of infrastructure (e.g., tanks, pipeline, and meters), water treatment, water testing, preparation of an annual report for the California Department of Health, and State permitting. Primary activities for the District’s sewage system include sewage collection, repairs and maintenance of infrastructure, and sewage treatment. DSPUD is a public agency formed in 1948. Approximately 331 water and 273 sewer service connections are maintained by the District and supported by its operating budget which was $3.8 million in FY 2015-2016 (DSPUD, CAFR, 2016). DSPUD provided fire and emergency response services up until 2006, when those service responsibilities were transferred to neighboring Truckee Fire Protection District as part of a reorganization approved by Nevada LAFCo. LOCATION AND SIZE The District is located in the unincorporated area of eastern Nevada County and northeastern Placer County. It encompasses approximately 13 square miles (8,320 acres) along the Interstate 80 (I-80) corridor, including the Norden and Soda Springs communities in the Donner Summit area. The utility district is roughly bounded by the I-80/Old Highway 40 exit to the west and by Donner Summit to the east. The northern edge of the District extends to Castle Peak. The PUD serves the Sugar Bowl Ski Resort located in Placer County. The District also has a service contract with Serene Lakes Community Services District. The District’s customer base is limited to residential users and commercial activity, including Caltrans rest stops along I-80 and three ski resorts that operate on the summit: Boreal, Sugar Bowl, and Donner Ski Ranch. The District has no industrial users. The Town of Truckee is the closest socioeconomic center to the District area. Soda Springs, where the District office is located, has only a few tourist-oriented commercial uses and a population of 81 according to the 2010 US Census, only a portion of which may be full-time residents. There were 93 registered voters in the service area as of 2013. Land uses in the District are predominantly forest and recreational, followed by seasonal, weekend/vacation residential uses. The wastewater treatment plant and district office are located on Sherritt Lane at 6,800-feet elevation, immediately north of I-80 off Donner Summit Road in Soda Springs. DSPUD’s water treatment plant is located just north of Donner Ski Ranch on Donner Summit, at approximately 7,200-feet elevation with no development above the watershed area. See Figure 7-1 for a map of the service boundaries and significant District features. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-3 North Tahoe and Martis Valley MSR 7.3: FORMATION AND BOUNDARY The formation of the District was first put to a vote in Placer County on December 19, 1947, and in Nevada County on March 2, 1948. Nevada County’s Ordinance No. 163 called for a special election "to determine whether or not said utility district shall be organized under the public utility district act ...". Nevada County Board of Supervisors’ Resolution dated March 24, 1948 accepted the outcome of the vote in both Nevada and Placer counties. This Resolution contains the initial legal description for the District (DSPUD, 2018). The California Secretary of State subsequently certified the Board’s Resolution on August 27, 1948, under the provisions of Section 9 of the Public Utility District Act. On March 24, 1950, Senate Bill No. 35 was proposed and subsequently amended and approved by the California State Legislature, to create the Donner Summit Public Utility District, merging what had been two separate districts in Nevada and Placer Counties. The District was originally formed in order to provide the service area with sewer and water facilities for military encampments, civilian repair crews, and tourist facilities, and to allow for public financing of the water and sewer facilities given the high cost of such infrastructure in the mountainous terrain of the Donner Summit area. BOUNDARY HISTORY The boundaries of the District were originally formed in 1948. The State Board of Equalization tracks district boundaries. Through the years there have been a number of annexations and detachments, which have led to the current DSPUD boundaries. Since the 2004 MSR, the District boundaries have been changed twice: first in 2008 with the annexation of the remaining territory of Sugar Bowl and most recently in 2013 with the annexation of the Big Bend Mutual Water Company, which was within the Sphere of Influence of the District. In July 2006, the Truckee Fire Protection District annexed the DSPUD fire service area and DSPUD disengaged from provision of fire and emergency services. The current boundaries of the District encompass 8,320 acres, as listed in Table 7-1. SPHERE OF INFLUENCE The District’s Sphere of Influence (SOI) has been established and was last updated in 1998. The SOI is approximately 10,000 acres in size, with most of the SOI lying in Placer County as listed in Table 7-1. The District manager has indicated that the SOI boundary is adequate for projected future needs. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-4 North Tahoe and Martis Valley MSR Table 7-1: Size of Donner Summit PUD Number of Size (acres) Number of Size (acres) Parcel’s of SOI only** Parcel’s Agency of boundary (APNs) in (APNs) in SOI area boundary area only DSPUD in Nevada County 7,823 441* 3,844 706* DSPUD in Placer County 834 254* 6,249 1358* Total DSPUD 8,657 695* 10,093 2064* *Note: Parcel counts are not exact. Sometimes the District boundary crossed part of a parcel. For example, it crossed a third or a half of a large parcel. Also, major highways and some roadways were excluded from the parcel list. **SOI acreage provided does not include the boundary area. Data source: GIS data from Placer County and Nevada County EXTRA-TERRITORIAL SERVICES The District provides wastewater treatment services for Sierra Lakes County Water District (SLCWD) customers via an Interim Service Agreement. SLCWD services customers in the Serene Lakes area. AREAS OF INTEREST No other areas outside the District boundaries have been identified that require services from the District. 7.4: ACCOUNTABILITY AND GOVERNANCE The District is governed by a five-member Board of Directors, who are elected by registered voters within the District boundaries. Regularly scheduled meetings are held on the third Tuesday of the month at 6:00 p.m. Meetings are located at the District office, at 53823 Sherritt Lane, Soda Springs, CA 95728. The current Board Members are as follows: Name Role Date Term Ends Cathy Preis President 12/31/2020 Sara Schrichte Vice President 12/31/2020 Robert Sherwood Secretary 12/31/2020 Alex Medveczky Director 12/31/2018 Phil Gamick Director 12/31/2018 Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-5 N E V A D A C O U N T Y 80 Lake Van Norden Lake Mary Palisade Lake Ice Lakes P L A C E R C O U N T Y Road gs n pri S a d o Donner Summit PUD S Sphere of Influence 0 1 2 Miles County Boundary District Boundary, Big Bend update from Placer County LAFCo, District Boundary and SOI from Nevada County LAFCo GIS. Figure 7-1 DONNER SUMMIT PUBLIC UTILITY DISTRICT North Tahoe and Martis Valley MSR Directors Phil Gamick and Alex Medveczky were appointed by the Nevada County Board of Supervisors (Resolution No. 14-427) rather than through a general election. DSPUD Board candidates for election must reside in and be a registered voter within the Donner Summit PUD boundaries. Although Board Members do not receive any benefits, they are compensated at a rate of $300 per meeting for the President, $275 per meeting for the Vice President, $250 per meeting for Directors, and $125 per meeting for any Board Member attending special meetings. No Director may receive more than $4,800 in any calendar year under the provisions of the Public Utility District Code. In accordance with Government Code § 54954, all meetings are publicly posted on the District’s website, at the District office, and at the local post office a minimum of three days prior to regular Board meetings. The District also emails full Board packets to a list of customers who have requested them. Agendas for special meetings are posted in the same locations at least 24 hours prior to the special meeting. Agendas are posted on the District’s website prior to regular meetings, and meeting minutes are posted after meetings. For all meetings considered out of the ordinary, including those on proposed projects that may result in rate increases or Proposition 218 issues, an extra notification step is taken: these meetings are posted on the website and sent on post cards and/or letters to all ratepayers. The attorney for the DSPUD is generally present at Board meetings to ensure compliance with the Brown Act (Government Code §§ 54950-54926), the conflict-of-interest regulations set forth in the Political Reform Act (Government Code § 81000 et seq.), and other applicable laws. DSPUD has adopted a policy manual intended to be a resource for the Board, staff, and public in determining and evaluating the conduct of the District. There is no record of violations of any of the government code sections listed above. The agenda for each Board meeting includes a public comment period, and the District Board has adopted a policy that establishes a procedure for addressing complaints from the public. Customers with comments or complaints can mail them to the District at P.O. Box 610, Soda Springs, CA 95728. The public can also comment through the District website and attend the meetings of the Board of Directors. The District does not track how many comments or complaints it receives, but during 2011 and 2012, the District estimates that fewer than 10 comments or complaints were received. The District has adopted policies addressing budget preparation, fixed asset accounting, investment of funds, and expense authorization. All of these policies are consistent with the California Special District Association’s sample policy handbook. Budgets are adopted in public meetings and are available to the public upon request. As required, the District has an independent audit conducted annually. The last report was dated June 30, 2015. The audit found that there were no issues of noncompliance with financial regulations that could have an effect on the financial statement. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-7 North Tahoe and Martis Valley MSR Placer County has been the principal county for Donner Summit PUD since 2008 (previous to that, Nevada County had been considered the District’s principal county, as Nevada County had the greater portion of the entire assessed value of taxable properties within the District’s boundaries). Even though most of the geographic territory of the District’s boundaries lie within Nevada County, Placer County contains parcels which together have a greater portion of the entire assessed value as shown on the County’s equalized assessment roll of all taxable properties.1 Therefore, Placer LAFCo adopted an MSR for this District in early 2018 and has authority to update the District’s sphere of influence. 7.5: MANAGEMENT EFFICIENCIES AND STAFFING Day-to-day operations are managed by the General Manager. The General Manager is a full- time employee with control over District water and sewer construction projects and operations. There are eight full-time employees of the District, a reduced number from the 16 full-time employees in 2003 when the District provided fire protection and emergency services. District staff includes a general manager, an office manager, and an administrative assistant. The sewer and water department staff include a chief plant manager and four licensed operators. The District has adopted a set of policies that address general management, personnel, operations, Board actions, and facilities development. The policies are generally identical to those recommended in the California Special Districts Association “Sample Policy Handbook” which is used by special districts throughout the state. 7.6: POPULATION AND GROWTH POPULATION Soda Springs, where the District office is located and around which the service area is centered, has only a few tourist-oriented commercial uses and a larger number of seasonal residents and second homeowners. The population characteristics for this region were studied in detail in a 2004 Economic Development Study for Donner Summit (Nevada County, 2004). This MSR’s analysis of population relies upon the 2004 Economic Study, results of the Federal 2010 census, and other data as cited. Soda Springs was reported to have 81 inhabitants and a population density of 238.6 people per square mile in the 2010 US Census. Soda Springs is located in Census Tract 9. The average household size was 1.98 and there were 41 households. The Community Fact Finder Report (California State Parks, February 2013) estimated that there are 98 permanent residents in Soda Springs. The US Census Bureau Fact Finder identified 136 housing units of which 41 were occupied in the 2010 Census. This means that 30 percent are presumed occupied by permanent residents. For purposes of this study, population growth is projected based on the higher estimate of permanent residents. Relevant population data for the other lands served by the District are not available. The geographic extent of DSPUD’s service area is different from the area of Soda Springs identified in the 2010 US Census. The District has not 1 See Section 56066 of the Cortese Knox Hertzberg Act for more details regarding determination of the principal county. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-8 North Tahoe and Martis Valley MSR estimated the full-time population of its service area, but does note that there are 93 registered voters within their boundaries. Approximately 331 water and 273 sewer service connections are maintained by the District, with a total of 818.5 equivalent dwelling units (EDUs) served within the District and 816 EDUs served in Sierra Lakes. The higher number of EDUs than service connections is a reflection of the numerous EDUs for commercial connections, such as the Caltrans rest areas which account for two connections but 91 EDUs. It is typical for a residential sewer connection to be served by one EDU. Of the sewer connections, 232 are residential and 41 are commercial. Of the water connections, 288 are residential and 43 are commercial. The District encompasses approximately 13.5 square miles (8,657acres). For the purposes of this analysis, a conservative assumption of Placer County’s higher average household size (as compared to Nevada County’s) was used. An existing maximum population (i.e. including seasonal visitors) of 737was calculated (288 water connections2 X 2.56 average household size in Placer County, according to the 2009 Placer County Housing Element Background Report) within the formal District boundaries as shown in Table 7-2, below. The population density of the service area is estimated at 55 people per square mile during peak seasonal timeframes. Table 7-2: Existing Population Data (2018) Number of Permanent Visitor Total Peak Agency Registered Population Population Population Voters (Estimated) (Estimated) (Estimated) Donner Summit 93 369 368 737 Public Utility District PROJECTED GROWTH AND DEVELOPMENT The Donner Summit PUD is located in both Placer and Nevada Counties. As a result, lands within the District are subject to two different AERIAL PHOTO OF SODA SPRINGS AREA 1 planning agencies, depending on which County they are located. DSPUD provides sewer service to four primary development centers including Soda Springs, Kingvale/PlaVada Woodlands, Boreal Ski Resort/Caltrans Rest Stop, and Sugar Bowl. 2 There are 331 total water connections. 43 water connections are assumed to be used by commercial enterprises. 288 water connections are assumed to be used for residential connections. One residential connection is assumed to equal one dwelling unit. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-9 North Tahoe and Martis Valley MSR The Placer County General Plan serves as the County’s vision for long-term land use development and conservation for the Placer County portion of the District. Placer County’s General Plan adopted on August 16, 1994, and updated May 21, 2013, provides a series of goals, policies, standards, and implementation programs to guide the land use, development, and environmental quality of the County. The land use designation in the western portion of the District within the Placer County is Timberland. The Sugar Bowl area is classified as Agriculture- Timberland, Resort Recreation and Medium Density Residential (3,500 to 10,000 sq. ft. lots) by the Placer County General Plan3. Some years ago, a development group proposed to develop what was then the Royal Gorge properties around Lake Van Norden and the Ice Lakes (Serene Lakes) area. This development would have required both water and sewer service from Sierra Lakes County Water District and Donner Summit PUD. Wastewater would have been delivered to Donner Summit PUD for treatment and disposal. The project developer lost the property in bankruptcy and in recent years the Truckee Donner Land Trust (TDLT) acquired the holdings. As such, the TDLT relinquished all development rights/expectations on the former Royal Gorge property. The 10 sewer connections previously associated on these lands have been offered back to the Sierra Lakes County Water District. Parcels located in Nevada County are subject to the Nevada County General Plan, approved by the Board of Supervisors in 1996 and subsequently amended in 2008 (Safety) and 2010 (Circulation/Housing), 2014 (Housing, Noise, Safety) and 2016 (Land Use). The Nevada County General Plan is the long-term policy guide for the physical, economic and environmental future of the County. It is comprised of goals, objectives, policies, and implementation measures, which are based upon assessments of current and future needs and available resources, and which are intended to carry out the four central themes which are critical to the future of Nevada County and its quality of life. On October 25, 2016, the Nevada County Board of Supervisors approved the Soda Springs Area Plan through Resolution 16-519. The Area Plan establishes policies and accommodates 3 These land use designations reflect existing land uses and development potential in line with the master plan for the Sugar Bowl area. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-10 North Tahoe and Martis Valley MSR neighborhood commercial land uses to serve the local population and to encourage recreational uses (primarily a formal snow play area, museum, etc.) and economic development. The primary land use designation within the Nevada County portion of the District includes Urban Single family, Urban Medium Density, Recreation, Highway Commercial and Forest -40. As noted above, Soda Springs is the primary community within the Nevada County portion of the DSPUD. While there is a permanent resident population base, Soda Springs is primarily a tourist area with a large percentage of second homes. The Town of Truckee is the closest socioeconomic center to the District area, but is not part of the District’s service area. Although opportunities for new substantial growth or planned residential developments appear to be limited within the DSPUD boundaries, there are future opportunities for infill development and redevelopment as described in Nevada County’s Area Plan. Since the 2004 Western County Wastewater MSR, the only new construction includes a subdivision of 25 homes at Sugar Bowl and a recreation center for skateboarders and acrobat snowboarders at Boreal. In 2010, DSPUD estimated that there were approximately 300 vacant lots within its boundaries that could be developed in the future. This potential future development was estimated to generate future sewer service demand of 332 EDU’s (DSPUD, 2010). However, these lots are being developed at a slow pace and the District estimates the current growth rate at less than two percent, within its boundaries (DSPUD, 2013). In Table 7- 3, below, an average annual growth rate is calculated for DSPUD, similar to the calculation for compound interest rates. This future population growth model assumes an average annual (compound) growth rate of one-half percent. This leads to a projected 2040 population of 835 persons which is 13 percent higher than the 2015 population of 737 persons. It is important to note that approximately half the population shown in Table 7-3 will likely be overnight visitors. Table 7-3: Projected Population Growth in DSPUD boundaries Year 2015 2020 2025 2030 2035 2040 Projected Population 737 756 775 794 814 835 Additionally, DSPUD’s 2010 Wastewater Facilities Plan also estimated that there were vacant lots within Serene Lakes area and the potential future development of those lots could generate sewer service demand for an additional 80 EDUs (DSPUD, 2010). However, the future development potential in Serene Lakes (SOI 2005-2025 area) is substantially decreased with the recent acquisition of lands by the TDLT. DISADVANTAGED UNINCORPORATED COMMUNITIES LAFCo is required to consider the provision of public services to disadvantaged unincorporated communities (DUCs). Relevant data were reviewed for the Donner Summit area. The Donner Summit PUD boundaries, its SOI, and adjacent areas all contain DUC’s. The U.S. Census has prepared estimates for the year 2013, based upon actual 2010 census data of the median household income (MHI) for the 95728 zip code as $42,574.4 This is lower than the DUC threshold 4 2010 census data via American Fact Finder website at: <http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF>. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-11 North Tahoe and Martis Valley MSR MHI of less than $48,706 (80 percent of the statewide MHI). Additionally, the Department of Water Resources (DWR) has developed a web-based application to assist local agencies and other interested parties in evaluating disadvantaged community (DAC) status throughout the State. The DAC Mapping Tool is an interactive map application that allows users to overlay the following three US Census geographies as separate data layers: 1) Census Place; 2) Census Tract; and 3) Census Block Group. Only those census geographies with an annual median household income (MHI) that is less than 80 percent of the Statewide annual MHI (PRC Section 75005(g) is shown on the map. The Soda Springs area meets the definition of a DAC (and DUC) for all three types of geographies (DWR, 2015). It should be noted that the portion of the PUD’s boundaries that lies within Nevada County seems to contain most of the DUC area. The residences and business that are within the District’s boundaries do receive adequate water, wastewater, and fire protection services as detailed in Placer LAFCo’s 2018 MSR for this region. No public health and safety issues have been identified in the DUC area. 7.7 DISTRICT SERVICES SERVICE OVERVIEW The District provides water treatment and distribution, and wastewater collection and treatment services within the service area. Fire protection and emergency services were transferred to the Truckee Fire Protection District in 2006, and those services were deleted from the District’s responsibilities on July 1 of that year. This MSR focuses only on the provision of wastewater collection and treatment services by DSPUD. WATER SERVICE DSPUD provides water service to the communities of Norden and Soda Springs; to east- and westbound Caltrans rest areas off Interstate 80 west of Truckee; and to the ski resorts of Sugar Bowl, Soda Springs Resort, and Donner Ski Ranch. Recycled water may be provided, as needed, for road repairs on Interstate-80, dust control, and erosion control projects in the vicinity. The water system consists of about 331 metered connections, 43 of which are commercial connections and 288 of which are residential connections. Most of the service connections are for seasonal homes; however, the system can serve up to 15,000 people during the peak holiday or skiing seasons. The District water system uses one surface water source, Lake Angela, which it owns and operates along with a dam permitted by the Division of Dam Safety. Lake Angela is Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-12 North Tahoe and Martis Valley MSR located near the peak of Donner Summit at 7,280-feet elevation. The 75 million-gallon lake is fed by snow melt and spring sources. The District has indicated that it owns most of the watershed and water usage is monitored. Public access to the Lake can be obtained via a few informal hiking trails in the area. The Donner Summit PUD works to balance the protection of water quality with public access. The District holds a State water permit for treatment and delivery of drinking water used for municipal purposes. The water system and plant are inspected annually by the State Water Resources Control Board Division of Drinking Water (DDW). The Division of Dam Safety also performs an annual inspection of the dam at Lake Angela. The Nevada and Placer County Departments of Public Health annually review a permit for the water treatment plant. View of Lake Angela Dam DISTRIBUTION AND TRANSMISSION OF WATER DSPUD treats water and distributes it to domestic users, including residential, commercial, lodging, and resort users, throughout the service boundaries. Water from Lake Angela is processed through a nearby treatment plant. The plant's capacity is estimated at 0.50 mgd. From the treatment plant, distribution lines run west along Donner Pass Road and serve that corridor, as well as the communities of Soda Springs and Norden. Sugar Bowl is also connected to this system. Additionally, the District provides water distribution parallel to Interstate 80, between Soda Springs and the CalTrans rest area. Altogether, the District delivers water through approximately 11 miles of pipe, and the distribution system consists of PVC and ACP pipe in sizes varying from 6 to 12 inches. The system includes a number of storage tanks and pressure-regulating devices to serve the various pressure zones over the variable elevations of the district. There is enough capacity in the distribution system to roughly double the existing number of services. All water service is metered. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-13 North Tahoe and Martis Valley MSR WASTEWATER SERVICE The District provides sewerage service to the Norden and Soda Springs communities and to several ski resorts including Sugar Bowl, Donner Ski Ranch, Boreal, and Soda Springs. Through the SLCWD, the Serene Lakes community is also served by the DSPUD wastewater treatment plant (WWTP). It is estimated that the WWTP serves approximately 2,000 individual residents (i.e. within the combined service area for DSPUD and SLCWD. The District holds a 30-year Special Use Permit from the US Forest Service for the WWTP site. A discharge permit from the Central Valley Regional Water Quality Control Board (CVRWQCB) is reviewed every five years for the sewage treatment operation, and the District recently received formal approval of its discharge permit in June 2015, Order No. R5-2015-0068 (NPDES Permit No. CA0081621). This permit became effective as of August 1, 2015 and will expire July 31, 2020 (CVRWQCB, 2015). The most recent inspection of the WWTP occurred on May 1, 2013, and the WWTP was generally in compliance. The District has on occasion violated its nitrate, ammonia, and pH limit, and operates under both Waste Discharge Requirements (WDRs) Order R5-2009-0034 and Cease and Desist Order (CDO) R5-2009-0035. The CDO contains a time schedule to achieve full compliance with effluent ammonia, nitrate, copper, cyanide, dichlorobromomethane, aldrin, alpha BHC, manganese, silver, and zinc WDRs limitations by April 24, 2014. Since the District is considered a small disadvantaged community, all mandatory minimum penalties are allowed to apply to the upgrade and expansion project. According to District staff, the system has not exceeded its peak flow capacity. Primary services provided by the District for the wastewater system are collection, treatment, disposal, and maintenance. The District services 41 commercial sewer connections and 232 residential sewer connections. Commercial use is based on a number of factors, including use, the number and size of beds in a room, restaurant seats, bar seats, etc. A 1.56-million-gallon storage tank provides three days of emergency storage for treatment effluent and is also used for spray irrigation operational storage during the summer and potential snow making operational storage in the winter. To comply with the CDO, the District constructed a new treatment system consisting of membrane bioreactors (MBR) for biological treatment and filtration, and ultraviolet (UV) for disinfection. Boilers and recirculation pumps are used to heat the influent to facilitate the biological treatment process. A 756,000-gallon equalization storage tank is also utilized. Bio-solids resulting from the treatment process are directed to a sludge storage tank during the winter months and are dried in sludge beds during the summer months. Sludge is transported for disposal to a landfill in Lockwood, Nevada. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-14 North Tahoe and Martis Valley MSR Constructing brick walls at the MBR building In order to finance the upgrade and expansion of the WWTP, the District held a public election of ratepayers to vote on the formation of a Community Facilities District (CFD No.1). The CFD is a special financing district created for the purpose of financing improvements to the WWTP required by the State to meet water quality standards. The CFD resulted in a special tax levied on customers within CFD No. 1. Following the formation of CFD No. 1, all properties who voted for the CFD were included in the CFD No. 1 and are considered “Inside CFD No.1” (a term used in District documents). Rate payers who voted against the CFD are now considered “Outside CFD No.1” and pay for the wastewater treatment plant improvements through their regular wastewater rates, whereas customers who are “Inside CFD No. 1” pay for the improvements with special taxes. SUPPLY AND DEMAND FOR SERVICE Supply and demand for water and sewer districts are typically impacted by development occurring within the District that could result in an increase in the demand for these services and the need for additional infrastructure. Other factors that impact supply in the District are prolonged drought and algae in Lake Angela. Minimal development is expected to occur within the District because the area is an isolated community with little growth projected. WATER The average annual total supply of water from Lake Angela is 310 acre-feet (AF), while the historic annual water supply taken from 2005 to 2012 has been 262.7 AF. Demand rises in the winter months due to the seasonal ski resort population. The winter peak use is 6.5 million gallons (mg) or 23.2 AF per month, and summer peak use is 4.6 mg or 16.4 AF a month. According to the District Manager, the District anticipates having sufficient water supplied for anticipated development in the foreseeable future. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-15 North Tahoe and Martis Valley MSR WASTEWATER The District upgraded its WWTP and construction was completed in 2015. Factors that can influence the District’s ability to supply and/or deliver wastewater service to customers include treatment plant capacity and Regional Water Quality Control Board (RWQCB) regulations. The NPDES permit (R5-2016-0068) indicates the new WWTP design average dry weather flow capacity is 0.52 MGD5. As previously mentioned, the District has an interagency agreement with SLCWD to treat their wastewater. Data from the old WWTP indicates that it had a treatment capacity of 0.619 million gallons per day (mgd) with potential to support 1,809 EDUs. Typical Average Annual Flow during the years 2002 to 2006 was 0.23 mgd (DSPUD, 2010). Peak flows within the year 2013 were 0.533 mgd. Future service demands from within both the DSPUD and the SLCWD boundaries were considered during the design and upgrade for the new WWTP. The District expanded its treatment plant capacity to satisfy needs projected from the development of existing lots that are currently vacant. INFRASTRUCTURE AND FACILITIES This section describes the existing infrastructure associated with the provision of water and sewer services by the District. The District owns and operates Lake Angela and the dam on the lake. The sewer facilities at 53283 Sherritt Lane are situated on land leased by the US Forest Service, Tahoe National Forest. WATER The District owns and operates its sole water source, Lake Angela, as well as all related facilities such as the dam on Lake Angela and the infrastructure used to deliver the water. Lake Angela has a holding capacity of 310 acre-feet, while the District has water rights of 265 acre-feet annually. The District provides surface water treatment at its water treatment plant at Lake Angela. According to the Department of Public Health’s Division of Drinking Water and Environmental Management (DPH), the surface water treatment is unconventional and appears to be an in-line filtration system. This type of system is considered an unapproved alternative technology and is of some concern to the DPH. As a result of the re-classification of the system type, during their last inspection on September 13, 2012, the DPH raised the standards for cryptosporidium filtration from 0.3 to .01 NTU. The DPH also noted concerns with the chemical treatment process and the fact that the system had had several turbidity standard failures since 2007 because of very low raw water alkanity and very cold water and made recommendations for facilities improvements. The DPH also found that the water treatment plant was not capable of supplying the maximum daily demand to the system, and that the plant needed to be upgraded to reliably provide the maximum daily demand. A minimum 10-year projected growth needs to be included in the upgrade. 5 http://www.dspud.com/assets/pdf/dspud_wwtp_npdes_to.pdf Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-16 North Tahoe and Martis Valley MSR The rated capacity of the plant is 0.554 mgd. The total storage capacity is 1.2 mg in two 550,000-gallon tanks. There are currently no proposed or planned increases in the capacity of the system, but there may be upgrades in the treatment system. The District received funding in 2013 from the California Department of Public Health’s Clean Water Fund to study and provide upgrade alternatives to the water treatment system. Construction of upgrades is anticipated to begin in the spring/summer of 2016. The District recently annexed the Big Bend Mutual Water Company (BBMWC), a “non-transient community water system,” which had been operating without a permit and under a “Boil Water” notice for the past eight years due to the fact their ground water source was under the influence of a surface water source. Twenty-nine homes, most of them seasonally occupied, are served by the District in the Big Bend area. For the past five years, DSPUD has been operating, maintaining, and managing the Big Bend Mutual Water Company’s service. After the BBMWC’s Board of Directors voted to drill a new well, and the loan to accomplish this required DSPUD to co-sign, the District annexed the BBMWC in order to give the District more avenues by which to collect debt payments if the BBMWC defaulted on its loan. The annexation also assured full-time management of BBMWC, certified staffing, reliable maintenance and operations of the system, and future financing for any needed improvements. WASTEWATER The District’s sewer facilities at 53283 Sherritt Lane are situated on land leased by the US Forest Service, Tahoe National Forest. The District upgraded its WWTP and construction was completed in 2015. Improvements included a membrane equipment building, a chemical/electrical building, a sludge pump building, an equalization storage tank and pump building, an equalization meter and valve fault, and new headworks. The new WWTP facilities include an upgrade to UV light disinfection processes. During the high seasons (summer and winter) with peak service demands, wastewater flows into a new 700,000-gallon storage tank, resulting in 950,000 total gallons of storage. This storage allows staff to adjust storage time to even out flows at the WWTP resulting in considerable flow equalization. Additionally, the existing spray field irrigation system which facilitates effluent discharge in the spring and summer was expanded by 10 acres. During the fall and winter seasons, discharge is directed to the Yuba River. The Clean Water Revolving Fund and the USDA contributed funding to the upgrade project due the public benefits of lowering effluent ammonia and nitrate concentrations to meet California quality requirements for recycled water. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-17 North Tahoe and Martis Valley MSR Extreme fluctuations in the inflow, with very high flow and extremely cold influent during winter ski season, create wastewater treatment challenges. The bacteria that help degrade the sewage prefer warmer temperatures and do not function well in very cold environments. New boilers in the recirculation tanks will also warm up the effluent from a current low of three degrees (C) in the winter (bacteria stop working at eight degrees) to increase bacteria activity. In addition, the project includes the proposed expansion of the existing effluent irrigation disposal on an adjacent parcel owned by Boreal Ridge Corporation. These improvements will bring DSPUD into compliance with the RWQCB water quality regulations. Other site improvements include new driveways, access roads, and snow storage areas. DSPUD and SLCWD set up a committee with representatives and engineers from both districts to study and design the construction project. The District’s maintenance plan includes inspection of all main lines by way of television camera on a rotational schedule. All lines are cleaned before the inspections. When defects in the pipelines are found, they are either grout-sealed, or a stainless-steel insert is placed to correct the defect. The District also inspects manholes within the service area on an annual basis. WATER QUALITY Water Quality Permits for the Sewage Treatment Plant The wastewater treatment plant currently operates under Order No. R5-2015-0068, allowing discharge of treated effluent to the South Yuba River not to exceed 0.52 mgd average dry weather flow and only during the months of October through July. During the other months, the permit allows for discharge to land on a 53-acre parcel at an average monthly rate below 0.52 mgd through the use of spray irrigation. The NPDES permit from the RWQCB was renewed and approved during the Board’s public hearing on June 4-5, 2015. Table 7-4, below, presents a recent history of the PUD’s permits from the RWQCB. CREW FRAMING THE RETAINING WALL IN 2012 Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-18 North Tahoe and Martis Valley MSR Table 7-4: Permits from the Central Valley RWQCB Date Order/Permit Number Description April 24, WDRs Order R5-2009-0034 The Central Valley Water Board regulated 2009 and Cease and Desist discharges from the PUD WWTP. The orders Order (CDO) R5-2009- became effective of 13 June 2009 and 24 April 2009, respectively. 0035 March 28, CDO R5-2014-0044 The Central Valley Water Board adopted CDO R5- 2014 2014-0044, which rescinded and replaced R5-2009- 0034. CDO R5-2014-0044 updated interim effluent limitations, extended time schedules, and provided Mandatory Minimum Penalty (MMP) protection for aluminum, ammonia, copper, cyanide, dichlorobromomethane, manganese, nitrate, silver, and zinc. This Order considers the exemption from MMPs provided by CDO R5-2014-0044. June 4, 2015 WDRs Order R5-2015-0068 The Board renewed the WDRs and issued WDRs Order R5-2015-0068, which rescinded WDRs Order R5-2009-0034, except for enforcement purposes. August 11, The Central Valley Water Board issued a Minor 2015 Modification Letter to correct typographical errors related to the Report of Waste Discharge due date and the WDRs Order expiration date. August 26, ACLO R5-2015-0538 Administrative Civil Liability Order (ACLO) R5-2015- 2015 0538 for MMPs was issued in the amount of $3,000 for effluent limitation violations that occurred between 1 July 2014 and 30 April 2015. The penalty was satisfied by the completion of a compliance project and the Board considers the effluent violation to be resolved. August 1, Notice of Violation Board staff issued a Notice of Violation and draft 2016 Record of Violations for effluent limitation violations (manganese) from 1 May 2015 through 31 May 2016. On 11 August 2016, the Discharger responded and agreed with the violations and the proposed administrative civil liability. Assessment of mandatory penalties ($6,000) was issued. December 8, Order R5-2017-0114 Amends Order R5-2015-0068 to remove the final 2017 effluent limitations and monthly compliance effluent monitoring requirements for aluminum. Acknowledged DSPUD’s submittal of Copper Water- Effect Ratio Study Work Plan dated 12 April 2016 and DSPUD Copper Water-Effect Ratio Study (Study) dated 17 November 2016. Order amends Order R5- 2015-0068 to remove the final effluent limitations and monthly compliance effluent monitoring requirements for copper. Rescinded cease and Desist Order R5-2014-0044. Overview of Database Reports This section provides the results of database searches on water quality for the DSPUD. Compliance of wastewater agencies with water quality regulations promulgated by the State Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-19 North Tahoe and Martis Valley MSR Water Resources Control Board (State Water Board) and the Central Valley Regional Water Quality Control Board (Regional Water Board) is important to LAFCo. This type of information is especially important since during a drought, a community can’t rely upon “dilution” as a solution to pollution. When local water supplies are scarce, keeping that supply at a high level of water quality is desirable. California Integrated Water Quality System Project The California Integrated Water Quality System (CIWQS) is a relational database used by the State and Regional Water Boards to track information about permit violations and enforcement activities. DSPUD has permits from the Central Valley Regional Water Quality Control Board and is therefore classified as a “Permittee.” Permittees are allowed to self-report their own permit violations to the CIWQS. A four-year term from January 1, 2013 to December 31, 2017, was queried in the CIWQS database. Table 7-5 below shows both formal enforcement actions and informal enforcement actions. Formal actions require compliance with requirements. An informal response may consist of a phone call or staff enforcement letter that are aimed at stopping the violation. The relation between violations to enforcement action is a many-to-one relationship, such that several violations may be combined into one enforcement action. Most of the violations listed in Table 7-5 were minor exceedances of coliform, lead, copper, and ammonia (SWRCB, 2018). Table 7-5: Violations and Enforcement Report, 2013-2017 Violations Violations Formal Linked to Informal Linked to Facility Organization Enforcement Formal Enforcement Informal Actions Enforcement Actions Enforcement Actions Actions Wastewater Donner Treatment 5 10 19 205 Summit PUD Plant Data Source: CA Integrated Water Quality System relational database. State and Regional Water Boards (SWRCB, 2018). Of the violations listed in Table 7-5 above, over 165 of these were exempt from the Mandatory Minimum Penalty Report requirements of the State Water Board. Although ten violations were linked to formal enforcement action, only nine violations were considered serious effluent violations (SWRCB, 2018a and 2018b). The new wastewater treatment plant was completed in 2015. The year 2016 was the treatment plant’s first year of operation and during that year, technicians and engineers learned how to Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-20 North Tahoe and Martis Valley MSR optimize the system. As a result of this learning curve, water quality violations declined in 2017. Additional years of data with the new treatment plant will support a more accurate trend analysis of the water quality situation. Sanitary Sewer Overflow Database The State Water Board maintains a database of Sanitary Sewer Overflows (SSO) from public/permitted systems and private lateral sewage discharges. This database is a specific module in the CIWQS. The State Water Board formalized the Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (SSS), Water Quality Order No. 2006-0003 (SSS WDRs), on May 2, 2006. All public agencies that own or operate a sanitary sewer system that is comprised of more than one mile of sewer pipes which convey wastewater to a publicly owned treatment facility must be covered under the SSS Waste Discharge Requirements. The SSS Waste Discharge Requirements requires enrollees, among other things, to maintain compliance with the Monitoring and Reporting Program. A four-year term from January 1, 2013 to December 31, 2017, was queried in the CIWQS-SSO database. The results of the database SSO queries regarding DSPUD are listed below in Figure 7-2. During the four-year study period, DSPUD had a total of two reported sanitary sewer overflow events as shown in Figure 7-2, below. The years 2016 and 2014 each had one reported spill. The 2014 SSO event had a total volume of 5,000 gallons spilled; however, 4,000 gallons was recovered and returned to a sewer line before reaching a drainage channel. This event was classified “Category 2” event caused by a treatment plant shut down for influent line tie-in which took longer than expected, causing flow to backup and over flow out of a nearby manhole. The 2016 SSO event was very small with only 100 gallons of total volume spilled. The spill did not reach a drainage channel and/or surface water. It was confined to a land area and classified as a Category 3 event. The spill was cleaned up and the correct reporting process was followed. Figure 7-2: DSPUD Results Sanitary Sewer Overflow Database 7.8: FINANCING LAFCo is required to make a determination regarding the financial ability of the Donner Summit Public Utility District to provide public services. This Chapter provides an overview of financial health and provides a context for the financial determination. The audited Comprehensive Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-21 North Tahoe and Martis Valley MSR Annual Financial Reports (CAFR) from the District for the fiscal years 13/14, 14/15, and 15/16 are the primary source of information for this Chapter. This Chapter was written on December 1, 2017 and the CAFR for the fiscal year 16/17 was not yet available and therefore it is not included in this chapter. The most recent financial data for the PUD can be found on the District’s website at: <http://www.dspud.com/fiscal.php>. Based on recent recommendations from the Little Hoover Commission, this determination on the financial ability to provide services is based upon several key financial performance indicators that are shown in tables in the following pages. In California, special districts are classified as enterprise or non-enterprise districts, based on their source of revenue:  Enterprise districts: Finance of district operations is via fees for public service. Under this model, the customers that receive goods or services such as drinking or sewer water, waste disposal, or electricity, pay a fee. Rates are set by a governing board and there is a nexus between the costs of providing services and the rates customers pay. Sometimes enterprise district may also receive property taxes which comprise a portion of their budget.  Non-enterprise districts: Districts which receive property taxes are typically classified as non-enterprise districts. Services that indirectly benefit the entire community, such as flood or fire protection, community centers, and cemetery districts are often funded through property taxes. DSPUD receives a portion of the Nevada County and Placer County property taxes assessed on owners within the District boundaries. However, since most of the revenue is derived from fees for service, for purposes of this MSR DSPUD is considered an enterprise district. Details about the fees charged for wastewater collection and transport services are provided on the following pages. FINANCIAL POLICIES & TRANSPARENCY DSPUD prepares an annual budget and an annual financial statement, both of which are reviewed in public meetings and made available to the public via the District’s website. The financial statement includes an independent auditor’s report. The fiscal year begins on July 1 and ends on June 30. Budgets and CAFRs for recent years are available to the public via the District’s website. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2018. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: https://www.dspud.com. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-22 North Tahoe and Martis Valley MSR The audit for FY 15/16 (DSPUD, 2016) found that there were no issues of noncompliance with financial regulations that could have an effect on the financial statement6. Funding for upgrades to the wastewater and water treatment plants has come from Federal and State loans. The Board began work on a Capital Improvement Plan (CIP) in 2015. The CIP will mostly focus on smaller CIP projects. The District’s assets exceeded liabilities at the close of fiscal year 14/15 by $13 million. This represents the net position (value) of the District as of June 30, 2015. However, during the year from FY 14/15 to 15/16, the net position declined to a total of $12.7 million as shown in Figure 7-3, below. A summary of financial policy indicators is shown in Table 7-6 below. Table 7- 6: Summary of DSPUD Financial Policies & Transparency Indicators Indicator Score Notes Summary financial information presented in √ The annual CAFR and budgets a standard format and simple language. clearly and transparently present financial information District has a published policy for reserve 0 Insufficient data funds, including the size and purpose of reserves and how they are invested Other financing policies are clearly 0 Insufficient data – articulated Compensation reports and financial √ Wage scale for staff positions is transaction reports that are required to be listed within the annual DSPUD submitted to the State Controller's Office budget which is posted on the are posted to the district website District website. Key to score: √= Above average (compared to similar sewer districts) ∆= Average 0= Below average REVENUES AND EXPENSES This section describes sources of revenues and expenses associated with the District’s water and sewer systems. Revenue The District receives revenue from several sources including customer fees, property tax, grants and other sources. Most of these revenues are utilized in the District’s general fund. Following is a summary of the annual revenues for the PUD. As shown in Table 7-7, below, the primary source of revenue for most fiscal years is the Customer Service Fees for Wastewater Service. However, “Contributed capital” in FY 13/14 was the largest revenue source for that year. 6 Donner Summit PUD and Gibson & Company Inc. CPA of Sacramento. Financial Statement for FY 15/16. November 2016. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-23 North Tahoe and Martis Valley MSR Figure 7-3: Net Position FY 14/15 and 15/16 Source: DSPUD, 2016 Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-24 North Tahoe and Martis Valley MSR Table 7-7: Donner Summit PUD Summary of Revenues FY 2011/2012 FY 2013/2014 FY 2014/2015 FY 2015/2016 Per audited Per audited Per audited Per audited Revenues financial financial statement financial financial statement statement statement Customer Service Fees for Water Service $387,695 $370,710 $363,828 $377,730 Customer Service Fees for Waste Water Service $2,335,612 $1,734,339 $2,088,224 $2,208,373 Property tax $118,208 $417,000 $411,000 $424,813 Interest Income (non- operating) $491 $17,000 $36,000 $973 Other Income $32,047 $27,000 $76,000 -17,181 Contributed capital $885,632 $5,734,000 $874,000 $676 Total $3,759,685 $8,300,049 $3,849,052 $2,995,000 Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-25 North Tahoe and Martis Valley MSR Expenses For FY 2015/16, expenses for the PUD included administrative expenses, depreciation of capital assets, and the costs of providing sewer collection, treatment, and disposal services. Total expenses incurred during the past few years is shown in Table 7-8. The four largest expense categories in FY 15/16 were employee salaries/benefits, utilities, depreciation, and interest charges from loans, as shown on Figure 7-4 (next page). Table 7-8: Total Annual Expense Fiscal year Expense Amount FY15/16 $3,357,989 FY14/15 $2,862,836 FY13/14 $2,214,192 FY 11/12 $2,237,960 Data Source: Audited Financial Statements by DSPUD FY 11/12, 13/14, 14/15 and 15/16 Utility expenses have been trending upward in recent years. The DSPUD budgeted $214,549 for its utility, communications, and telemetry expenses in the FY 2012-2013 budget. This amount accounted for 10.6 percent of the District’s expenses. In the FY 17/18 budget, the utility line item increased to $327,594 (DSPUD, 2017). In the long-term future, the District could explore the use of new technology to develop and capture renewable energy to reduce its annual expenditures on utility costs. The District should investigate efficiencies in its electricity use, which will require proper budgeting for energy efficiency consultation. Comparing revenues to expenses provides an analysis of the overall fiscal health of the enterprise fund and serves to assess the financial ability of the PUD to provide $9,000,000 water and wastewater $8,000,000 services. In Figure $7,000,000 7-5 (right), the total $6,000,000 annual revenue listed in Table 7-7 is $5,000,000 compared with the $4,000,000 total annual $3,000,000 expenses listed in Table 7-8. $2,000,000 $1,000,000 $0 FY 11/12 FY13/14 FY14/15 FY 15/16 Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-26 $ .S.U Figure 7-5: Comparison of Total Annual Revenue to Total Annual Expenses Revenue Expense North Tahoe and Martis Valley MSR Figure 7-4: Statement of Activities and Changes in Net Position Source: DSPUD, 2016 Construction of the new WWTP did require the District to incur loans which will be repaid through a combination of a special tax on customers in two zones and increased rates on customers in a third zone7. The interest rate on one loan was recently reduced, resulting in savings for District ratepayers. The transmission/collection pipes for both the water and sewer system are aging and the District will face slightly higher levels of maintenance and capital improvement costs in the future. The District’s budget for FY 17/18 predicts that revenues will exceed expenditures for the year (DSPUD, 2017). As part of a recent rate study, the District’s 7 Personal communication with General Manager, Tom Skjelstad, 2015. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-27 North Tahoe and Martis Valley MSR consultants (Hansford) prepared projections comparing future anticipated revenues to expenditures as shown in Figure 7-6, below. Figure 7-6. Data source for Figure 7-6 is DSPUD, 2018. A summary of revenue and expenditure indicators is shown in Table 7-9 below. Summary Scores Revenues, Expenditures, and Net Position Table 7-9: Summary of Indicators Revenues, Expenditures, and Net Position Indicator Score Notes Revenues exceed expenditures √ Total revenue was less than the operating in 50% of studied fiscal years expenditures in only one of the four study years. It is recognized that capital improvement projects are expensive and necessary. Many wastewater districts in California are in a similar situation. Increases or decreases in net ∆ Changes to the Net Position are shown in Figure 7-3 position to be variable. However, the decline in Net Position of -$300,000 in FY2016 was predominately due to an increase in expenses as compared to FY2015. This situation is typical of many wastewater districts in California. Key to score: √= Above average (compared to similar sewer districts) ∆= Average 0= Below average Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-28 North Tahoe and Martis Valley MSR RATE RESTRUCTURING WATER During a public hearing held June 21, 2016, Donner Summit Public Utility District's Board of Directors approved and adopted a 12.5% water rate increase effective July 1, 2016. Funds from water rates will finance a necessary upgrade to the water treatment plant, maintain reserves for plant maintenance and operation and pay off debt. Consistent with adopted Ordinance 03-2016 (which modified Ordinance 2008-02), rates are based on the service size (the diameter of the pipe servicing the connection). A specific number of gallons per month are allotted to each service connection based on the service size. All water is metered. The rates are listed in Table 7-10, below. Table 7-10: Water Rates/Metered Service Service Size Gallons Cost per Gallon Rate per Month Rate per Year (inches) Allowed per (2016)* (2016)* Month ¾ inch 10,000 0.005627 $56.27 675.23 1 inch 18,500 0.005627 $104.10 $1,249.18 1 ½ inch 25,000 0.005627 $140.67 $1,688.09 2 inch 40,000 0.005627 $225.08 $2,700.94 3 inch 65,000 0.005627 $365.75 $4,389.02 4 inch 175,000 0.005627 $984.72 $11,816.60 5 inch 262,000 0.005627 $1,474.26 $17,691.13 6 inch 350,000 0.005627 $1,969.43 $23,633.19 *Rates will increase slightly during years 2017 to 2021 consistent with the rate ordinance WASTEWATER To provide the necessary revenue to cover current cost of wastewater service, the District Board adopted new wastewater rates and fees with Ordinance 01-2012 on February 14, 2012. The new fee structure is tiered with rates and fees increasing annually. Wastewater rates are calculated on an EDU basis for Inside and Outside CFD No. 1 customers. Existing customers pay the full rate because they currently send wastewater flow to the WWTP. Future customers will pay reduced monthly rates to cover their portion of operations and maintenance expenses and a connection fee to cover their impact to the financing debt. Rates for existing customers increase annually due to the inclusion of rehabilitation costs for the treatment plant once the upgrades and expansion are complete, as well as typical operations and maintenance expenses. The treatment plant project is currently paid for by a loan from the SWRCB’s Clean Water State Revolving Fund (CWSRF). This loan will be repaid by Inside CFD No. 1 customers through special taxes and by Outside CFD No. 1 customers through their annual service charges. Table 7-11, below, shows past fees (2012-2016). In Dec. of 2017 the SWRCB agreed to lower the interest Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-29 North Tahoe and Martis Valley MSR rate on TSD’s CWSRF loan from 2.2% to 0.75% and this will save the District $3.43 million over 25 years (Personal communication, T. Skjelstad, 2018). Table 7-11: Calculated Wastewater Rates and Connection Fees through 2016 Calculated Rates Rates by 2012 2013 2014 2015 2016 Customer Effective 1/1/2012 7/1/2012 7/1/2013 7/1/2014 7/1/2015 Date Charge per EDU per month Existing Customers Inside CFD $110.32 $110.32 $110.32 $114.83 $116.24 $117.58 No. 1 Outside $110.32 $127.03 $143.06 $164.28 $165.69 $167.02 CFD No. 1 Future Customers Inside CFD $45.72 $45.72 $46.12 $47.99 $48.58 $49.13 No. 1 Outside $45.72 $62.43 $78.86 $97.44 $98.02 $98.58 CFD No. 1 *Connection Fee: $1,070 prior to April 1, 2012 Outside CDF No. 1 only $1,772 April 2012-June 2012 $2,362 Jul 2012–Jun 2013 $3,542 Jul2013-Jun 2014 $5,312 Jul 2014-Jun 2015 $7,672 Jul 2015-Jun 2016 Rates for service remained the same from 2016 thru 2017. On August 15, 2017, the PUD adopted Resolution 06-2017 approving new water rates. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-30 North Tahoe and Martis Valley MSR In June 2018 DSPUD will consider new rates for wastewater services during a public meeting. The proposed rates are shown in Table 7-13, below. Table 7-13. Data Source for Table 7-14: DSPUD, March 2018 Table 7-14: Summary of Rate Indicators DSPUD Rate Indicator Score Notes Rates were adopted by the Board of Directors √ PUD’s Board of Directors adopted sewer rates as part of Ordinance 01- 2012 and Resolution #06-2017. The rates are based the 2011 sewer rate study by Hanford Economics and this is available on the DSPUD website. Rates are consistent with requirements of the √ Ordinance 01-2012 and the minutes State Water Resources Control Board and the from the February 14, 2012 public process for adopting rates are consistent with meeting describes consistency with Proposition 218 state laws. Water rates for 2017 and 2018 were approved via Resolution #06-2017, adopted a regular public meeting of the Board of Directors. Rates are readily available to constituents √ Rates are transparently displayed on the District’s website. Key to score: √= Above average (compared to similar sewer districts) ∆= Average 0= Below average Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-32 North Tahoe and Martis Valley MSR 300,000 250,000 200,000 150,000 100,000 50,000 0 ASSET MAINTENANCE AND REPLACEMENT The Donner Summit PUD owns the wastewater treatment plant and associated sewage collection and disposal infrastructure and also owns the water treatment plant and water delivery pipelines. These capital assets are depreciated over their estimated useful lives. Although the PUD does not have a formal policy regarding depreciation of assets, the audited financial statement analyzes depreciation in a manner consistent with standard accounting practices. Asset maintenance is typically a significant issue for a District; however, the PUD’s infrastructure is a mix of newer facilities such as the WWTP and older facilities such as the water delivery pipelines. Historically, the PUD budgeted an average of $134,000 annually for maintenance projects on both the water and sewer system that are implemented on an as- needed basis. However, in FY 15/16 this expense increased to $261,467 as shown in Figure 7- 6. For FY 17/18 the PUD’s annual budget allocates only $13,000 for facility maintenance and repair (DSPUD, 2017). CAPITAL IMPROVEMENTS In the past, the District planned for and implemented capital improvements on an as-needed basis. The District recognizes that it is difficult to determine whether or not existing rates are sufficient to pay for future operational improvements without a formal capital improvement plan. Although a capital improvement plan was not provided to the MSR consultants, the District’s General Manager has indicated that the Board is interested in documenting and Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-33 $ SU Figure 7-7: Annual Maintenance Expenditures DSPUD Facility maintenance Vehicle maintenance Equipment maintenance Fiscal Year Data Source: CAFR for DSPUD, 2011 - 2016 North Tahoe and Martis Valley MSR planning for future capital improvements and will likely develop a capital improvement plan in the near future8. LONG-TERM LIABILITIES AND DEBTS Upgrading the WWTP and associated facilities represents a significant capital improvement. Future improvements to the water system will also be a capital expenditure. To finance the WWTP and other past capital expenditures, the District encumbered loans from a variety of sources. The District is currently paying off these long-term debts. The District has several loans outstanding whose funds were used to upgrade the wastewater treatment plant including the following: • State of California Water Resources Control Board loan; collateralized by net revenues of the District. The interest rate was recently renegotiated down to 0.75%; interest and principal payable in annual installments of $802,557 based on June 30, 2015 balance (but will be $719,191 if loan is fully funded) beginning 1 year after completion of construction, but not later than December 1, 2015; final payment due December 1, 2041. • State of California Water Resources Control Board loan; collateralized by District revenue; interest of 0%; principle payable in semi-annual installments of $3,458 on July 1 and January 1; final payment due January 1, 2020. • Sierra Lakes County Water Districts loan; uncollateralized; interest at 2.75%; interest and principal payable in an initial payment due August 8, 2016 of $327,875 and subsequent annual installments of $70,885 on July 1; final payment due July 1, 2021. • (DSPUD, 2016) The District's assets exceeded liabilities at the close of the fiscal year15/16 by $12,700,433 (DSPUD, 2016). COST AVOIDANCE The District has sought cost-saving opportunities where feasible. The District avoids the cost of room rental for meetings by holding public meetings at the District office, on property the District leases from the US Forest Service. Often, employing staff directly rather than hiring consultants saves money. The District employs eight full-time personnel, including a general manager, office manager, administrative assistant, a chief plant manager, and four licensed operators. The water and wastewater department share staff, information, and other resources to maintain an efficient work environment and keep rates as low as possible. In another example, the District sought and received low-interest, low-cost financing for the wastewater treatment plan upgrades, and has applied for and received grants to offset some costs. When the District purchased two new service trucks in 2012 through the State purchasing program, it resulted in some cost savings. In the past, the PUD has had limited staff wage freezes as needed 8 Personal Communication with General Manager Tom Skjelstad, Donner Summit PUD, September 11, 2013 Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-34 North Tahoe and Martis Valley MSR and these also produce cost savings. They also outsourced the annual installation and tear- down of a fence surrounding a holding pond, and have implemented a policy to use on-call personnel to resolve most alarms at the water and wastewater treatment plants by utilizing a SCADA system, thus reducing overtime costs. The District provides wastewater treatment to SLCWD. The District does not share other facilities or equipment with other districts or agencies. CHALLENGES The District has identified no regulatory issues, infrastructure issues, or other challenges within the next 12 months. Implementing the requirements of the new discharge permit from the RWQCB for the WWTP will be demanding. New regulations enacted from the CA DPH are expected in the next five years. 7.9: SERVICE ADEQUACY The District’s facilities are currently sized to adequately serve the existing connections within the service area. Water supply has historically exceeded demand by approximately 45 to 50 acre-feet, and all new developments are conditioned on the availability of water to serve the projects at the time of construction. The recent upgrade and expansion of the wastewater treatment plant gives it adequate service capacity for the next 30 years. Prior to the current upgrade and expansion of the wastewater treatment plant, the District conducted a public outreach campaign to communicate with both resident and vacation home-owners within the District. The public outreach program included asking all property owners of both improved and unimproved parcels if they intended to develop their property to the extent that a sewer and water permit would be needed. Three letters were sent over a two-year time period explaining that the wastewater treatment plant would not be expanded for another 30 years. After the last letter went out, the District gave the responses to its engineers so that they could size the plant accordingly. As per standard engineering practices, the engineers included approximately 10 percent surplus capacity. 7.10: OPPORTUNITIES TO SHARE FACILITIES The District holds its meetings at the District office at 53823 Sherritt Lane, Soda Springs, CA 95728. The District offices are on the site of the wastewater treatment plant. The District currently treats wastewater from SLCWD through a legal agreement. DSPUD is geographically separated from other agencies in Nevada and Placer Counties, making its participation in expanded sharing opportunities with the other wastewater providers less feasible. However, there are opportunities for expanded sharing within the sub-regional area served by the DSPUD that might result in economies of scale, cost savings, and regional environmental benefits. There are several independently run package plants and community land disposal wastewater treatment plants in the region including: Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-35 North Tahoe and Martis Valley MSR • The Kingvale Lodge and camp which provides hotel and other overnight facilities for visitors to Sugar Bowl and the Donner Lake area. • Cisco Grove Campground & RV Park which has a small water/wastewater system9. • Pla Vada Homeowner’s Association which serves a small number of residential parcels located primarily in Nevada County10. While no problems with the operation or management of these facilities were noted, the possibility of these facilities cooperating in sharing resources, personnel, and expertise, should be explored. While closing these facilities and pumping wastewater to an expanded District WWTP treatment plant may not be feasible at this time, in the future the cost for these systems to achieve full compliance with increased regulations may be more than the cost of connecting to the District system. The agencies and entities involved could investigate the cost/benefit of connecting these systems to a public system in the future. Beyond a cost/benefit study, an investigation of a regional wastewater system would also have to carefully examine a wide range of technical and political/jurisdictional issues. For example, DSPUD and SLCWD have had past disagreements regarding the calculation of flow rates and other issues, which seem to have been generally resolved with the adoption of an interim agreement in 2003. The interim service agreement clearly defined some of these issues such as ownership, measurement of system capacity, maintenance and operation costs, plant expansion, and capital improvements in order to reduce current and future disagreements. Both DSPUD and SLCWD have population bases that fluctuate seasonally and both have relatively few registered voters. This results in a relatively small pool of potential Board Members and occasionally makes it more difficult to reach other economies of scale. There may be opportunities to provide other services beyond just wastewater on a regional basis through a reorganization of existing service providers. The District has developed a unique way to share resources with its neighbors through utilization of effluent for snow making on the Soda Springs Ski Resort property and possibly Boreal Ski Resort. During the winter of 2015/16 the District, in partnership with Soda Springs Ski Resort, became the first agency in California to offer recycled water for snowmaking. This benefits the District by reducing the amount of effluent that is discharged directly to local surface waters during the winter season. 9 http://www.ciscogrove.com/ 10 http://plavada.com/ Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-36 North Tahoe and Martis Valley MSR 7.11: DETERMINATIONS GROWTH AND POPULATION PROJECTIONS 1. The population served by the Donner Summit Public Utility District is largely seasonal and comprised of second homes and vacation rentals. However, the District notes that there are 93 registered voters within their boundaries. 2. DSPUD currently serves 232 residential sewer service connections and 331 water connections. Assuming overlap of service connections and an average household size of 2.56 in Placer County, the estimated total population including both permanent residents and visitors served is 737 people for the year 2015. This number may be higher in the winter ski season, which is the peak season for habitation of the area, and lower in the summer season. 3. The District previously had the capacity to serve 1,736.5 EDUs and since the treatment plant upgrade was completed in 2015, the capacity increased to 2,136.5 EDUs. The capacity of the new sewage treatment plant was designed to serve existing vacant lots which have development potential. 4. The District has a very low growth rate for the resident population, coupled with a projected increase in the visitor/vacation population. Since the 2004 MSR, the only new construction has been a new subdivision of 25 homes at Sugar Bowl (“Summit Crossing”), and a recreation center for skateboarders and acrobat snowboarders at Boreal. An average annual growth rate is calculated for DSPUD, assuming a rate of one-half percent as shown in Table 7-3. This leads to a projected 2040 population of 835 persons which is 13 percent higher than the 2015 population of 737 persons. DISADVANTAGED UNINCORPORATED COMMUNITIES 5. The District’s boundaries and SOI include areas that qualify as a disadvantaged unincorporated community because the median family income less than 80% of the state median family income. The area does receive sufficient water, wastewater, and fire protection services. PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES 6. DSPUD was originally established in 1948 to provide sewer and water facilities for military encampments, civilian repair crews, and tourist facilities, and to allow for public financing of the water and sewer facilities given the high cost of such infrastructure in the mountainous terrain of the Donner Summit area. 7. The District currently provides wastewater service to its customers in addition to potable water. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-37 North Tahoe and Martis Valley MSR 8. Repairs and replacements will be necessary on an ongoing basis for both water treatment and delivery infrastructure, as well as wastewater collection and treatment. 9. The dam and reservoir at Lake Angela were recently inspected by the Department of Water Resources Division of Safety of Dams and found to be safe for continued use. 10. The District’s existing wastewater treatment plant was recently inspected by the Central Valley RWQCB and found to be generally in compliance. 11. The District expanded its wastewater treatment facility in 2015 and has worked with the SLCWD during that expansion to ensure customer service in both districts. 12. The District’s water supply comes from Lake Angela. Water rights to Lake Angela allow for the use of up to 310 acre-feet per year. Historic water demand from 2005 to 2012 has been 262.7 acre-feet per year. Counter-intuitively, demand for water service rises in the winter months due to the seasonal ski resort population. 13. The District serves customers inside and outside the service area. The District should consider adopting a policy to give preference to adding new customer connections in locations where the required infrastructure already exists or will become available. 14. To ensure that capacity is provided concurrent with need, the District should continue to work closely with the SLCWD to resolve technical issues. 15. DSPUD should examine the provision of service in conjunction with SLCWD, Nevada LAFCo, Placer LAFCO and other service providers to determine if infrastructure needs can be addressed more efficiently. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES 16. DSPUD’s operations and maintenance activities are funded through service charges, fees, and taxes. 17. Upgrades and expansion projects, including the current wastewater treatment plant and the future modifications to the water treatment plant, are funded through grants and loans. Loans are repaid through service charges to customers and through a voter- approved special tax. 18. DSPUD has received grants from state and federal agencies. 19. The DSPUD Board started work on a CIP in 2015. The CIP will mostly focus on smaller projects and will allow the District to accurately budget for future needs and ensure that infrastructure and facilities can be replaced and repaired when necessary. 20. The District reported that the current (as of 2013) financing level is adequate to deliver services presently. 21. Rates should continue to be reviewed and adjusted as necessary to fund District costs and provide for capital improvements as needed. STATUS OF, AND OPPORTUNITIES FOR, SHARED FACILITIES 22. The District should examine joint arrangements for services that can be provided on a regional or localized area. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-38 North Tahoe and Martis Valley MSR 23. The District fees are set through a public process, with past and current practice to use a nexus study to link new fees to the cost of providing services. No nexus study was requested or provided as part of this service review. 24. The District is currently sharing facilities with SLCWD. While both agencies own and maintain their own collection systems, they jointly use the DSPUD treatment plant. 25. The District should continue to explore opportunities to share facilities, staff, and infrastructure with other wastewater providers in the area. 26. The District should continue to work with SLCWD. Future collaboration opportunities could potentially include sharing professional consultant expertise for joint projects with SLCWD, such as the development GIS maps of their respective boundaries. 27. The revenue per EDU for DSPUD is high due in part to increased costs associated with operating and maintaining a small district in a challenging high elevation environment. For smaller agencies, it is generally more difficult to reach economies of scale and still comply with regulatory requirements. The District should consider studying possible changes in the governmental structure to result in fewer elections, simplified provision of service, and the regional coordination of services. The study should be completed prior to consideration of any LAFCo proposal during the 6-20 year planning horizon for the SOI. 28. Service provision might be improved if the governance structure for DSPUD were examined. DSPUD and SLCWD, as noted in previous LAFCo staff reports, should examine their current government structure to determine if efficiencies could be gained by reorganizing the agencies. 29. The District may wish to consider participating in an Integrated Regional Water Management Plan to continue/improve access to future grant opportunities and to improve relationships with stakeholders. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATION EFFICIENCIES 30. In July of 2006 the Truckee Fire Protection District annexed the DSPUD fire department. 31. In June 2013 DSPUD annexed the Big Bend Mutual Water Company, and in 2008 annexed the remaining territory of Sugar Bowl. 32. Local accountability and governance might be improved through a reorganization of service providers in the area or through more explicit joint agreements such as the “Interim Service Agreement” recently signed by the DSPUD and SLCWD. Additionally, alternatives to the current government structure in the Soda Springs/Sierra Lakes area should be explored by Nevada and Placer LAFCos, DSPUD and SLCWD. 33. In the long-term future, the District could explore the use of new technology to develop and capture renewable energy to reduce its annual expenditures on utility costs. The DSPUD budgeted $214,549 for its utility, communications, and telemetry expenses in the FY 2012-2013 budget. This amount accounted for 10.6 percent of the District’s expenses. In the FY 17/18 budget, the utility line item increased to $327,594. The Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-39 North Tahoe and Martis Valley MSR District should investigate efficiencies in its electricity use, which will require proper budgeting for energy efficiency consultation. 34. The DSPUD is locally accountable through adherence to applicable government code sections, open and accessible meetings, and dissemination of information and encouragement of participation in their process. 35. DSPUD demonstrated accountability through its prompt disclosure of information requested by Placer LAFCo for preparation of an older iteration of this MSR. 36. Board meetings are publicly noticed and comply with the Brown Act, California’s open meeting law. They are held every month. 37. The District practices cost reduction through careful purchasing, bidding processes, staff workload reductions, applications for grants and other mechanisms. 38. No boundary changes are pending or proposed at this time. 39. The District follows standard accounting procedures. 40. Transparency is a key value for the PUD and all Board members have access to District data, records and information. 41. The District has good public outreach, with a public website featuring Board agendas and meeting minutes, fiscal information, staff contact information, general information about services provided, rates, environmental compliance documents, planning documents, and news stories about its current projects. 42. The District does not currently have a strategic plan that outlines its mission statement, vision statement, and goals and objectives. Such a strategic plan could help the District improve upon planning efforts, accountability, and transparency. 7.12: REFERENCES California Environmental Protection Agency, State Water Resources Control Board, Division of Water Rights. Permit for Diversion and Use of Water, Permit 21118. February 8, 1994. California Legislature – 1950 First Extraordinary Session. Senate Bill No. 35: An Act to Create the Donner Summit Public Utility District. 24 March 1950. Central Valley Regional Water Quality Control Board (CVRWQCB). Compliance Evaluation Inspection, Donner Summit Public Utilities District, Wastewater Treatment Plant, Nevada County. 21 May 2013. Central Valley Regional Water Quality Control Board (CVRWQCB). June 4, 2015. Order No. R5- 2015-0068, NPDES No. CA 0081621, Waste Discharge Requirements for the Donner Summit Public Utility District. Rancho Cordova, CA. 118 pages. Available on-line at: http://www.waterboards.ca.gov/centralvalley/board_decisions/adopted_orders/neva da/r5-2015-0068.pdf. Accessed 5Nov2015. Department of Public Health, Division of Drinking Water and Environmental Management. Small Water System Inspection Report. September 13, 2012. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-40 North Tahoe and Martis Valley MSR Department of Water Resources (DWR), Division of Safety of Dams. Inspection of Dam and Reservoir in Certified Status. 16 August 2013. Department of Water Resources (DWR). 2015. Website entitled: “Resources - Disadvantaged Communities (DAC) Mapping Tool”. Available on-line at: http://www.water.ca. gov/irwm/grants/resources_dac.cfm. Accessed 5November2015. Donner Summit Public Utility District Board of Directors. Ordinance 01-2012 to Amend and Modify Ordinance 2008-01, Setting Sewer Rates and Charges. February 14, 2012. Donner Summit Public Utility District Board of Directors. Ordinance 2008-02 to Amend and Modify Ordinance 2007-04, Setting Water Rates and Charges. Donner Summit Public Utility District. Financial Statements (With Independent Auditor’s Report by Gibson & Company, Inc., Certified Public Accountant) For Fiscal Year 14/15. November 17, 2015. 40-pages. Available on-line at: <http://www.dspud.com/assets/fiscal_info/audit-06302015.pdf>. Retrieved August 28, 2016. Donner Summit Public Utility District. Fiscal Year 2012/2013 Operating Budget Summary. Approved June 19, 2012. Donner Summit Public Utility District. http://www.dspud.com/about.php. Accessed 15 October 2013. Donner Summit Public Utility District. Placer Local Agency Formation Commission: 2013 Municipal Service Review Update: Districts/Agencies in North Tahoe & Martis Valley: Information Request, 2013. Donner Summit Public Utility District. 2009. “Reason for Proposal: Donner Summit Public Utility District to Annex the Big Bend Mutual Water Company.” 2 pgs. (Estimated date of writing 2009 – 2010.) Available on-line at: http://www.dspud.com/assets/pdf/Big- Bend-Annex.pdf. Accessed April 26, 2015. Dudek & Associates, Inc. Final Municipal Service Review Report: Nevada County Western Region Wastewater Service Agencies. January 2004. Gibson & Company Inc. CPA. Sacramento. Donner Summit PUD. Financial Statements. June 30, 2011. 33 pages. Gibson & Company Inc. CPA. Sacramento. Donner Summit PUD. Financial Statements. June 30, 2012. 33 pages. Hansford Economic Consulting. Donner Summit Public Utility District: Wastewater Treatment Plant Upgrade and Expansion Project Financing Plan and Wastewater System Cost of Service Study. October 2011. Jordan, Frank. State of California, Secretary of State. Certification of Donner Summit Public Utility District. 27 August 1948. Nevada County LAFCo. Staff Report: Truckee Fire Protection District and Donner Summit Public Utility District—Sphere Updates. March 17, 2005. Placer County LAFCo. Placer LAFCo Agency Profile: Donner Summit Public Utility District. 8 February 2012. Placer Local Agency Formation Commission. 2013 Municipal Service Review Update. Districts/Agencies in North Tahoe & Martis Valley. Information Request. August 2013. Skjelstad, Tom. Interview with Kateri Harrison, Principal, SWALE. 11 September 2013. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-41 North Tahoe and Martis Valley MSR Skjelstad, Tom. Email with Jessica Hankins, SWALE. 23 October 2013. US Department of Commerce. <www.census.gov>. Accessed 23 October 2013. Draft Final MSR, August 2018 Chapter 7, Donner Summit PUD 7-42 North Tahoe and Martis Valley MSR C 8 HAPTER McKinney Water District Photo courtesy of Placer County e-newsletter November 2015 This Municipal Service Review (MSR) describes the McKinney Water District. This District was originally formed in 1961 and currently provides domestic water within its service area. Table of Contents 8.1 Agency Profile ..................................................................................................... 8-2 8.2 Overview of District ............................................................................................. 8-2 8.3 Formation and Boundary ........................................................................................ 8-3 8.4: Accountability and Governance ............................................................................... 8-5 8.5: Management Efficiencies and Staffing ....................................................................... 8-5 8.6 Population and Growth ......................................................................................... 8-6 8.7: District Services ................................................................................................. 8-11 8.8 Infrastructure and Facilities .................................................................................. 8-14 8.9: Financing ......................................................................................................... 8-16 8.10: Service Adequacy .............................................................................................. 8-21 8.11 Determinations .................................................................................................. 8-22 8.12: Bibliography ..................................................................................................... 8-25 Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-1 North Tahoe and Martis Valley MSR 8.1 AGENCY PROFILE McKinney District Type of District: Water District Enabling Legislation: The California Water District Law: Water Code sections 34000-38501 Functions/Services: Domestic water Date of Formation: 1961 Main Office: 103 Simmons Way, Folsom, CA 95630 Mailing Address: Same Phone No.: (916) 987-7130 Fax No.: None Web Site: www.MckinneyWaterDistrict.com Email: kgunter@mckinneywaterdistrict.com General Manager: Karla Gunter, Secretary/Treasurer District Agent: Graham Payne Phone: ( 530) 307-9032 Governing Body: Elected Board of Directors (Land-owner-voter) Term Expires Tom Waters 12/31/2019 Jerry Swartfager 12/31/2021 Anne Ballard 11/30/2019 Scott Cotner 11/30/2021 Vincent Dangler 11/30/2021 Meeting Schedule: 4th Friday of each month at 8:00 a.m. Meeting Location: 6575 McKinney Creek Road, Tahoma, CA OR 7017 Bellevue Ave., Tahoma, CA. Principal County: Placer County Other: Multi-county district serving Placer County and El Dorado County Landowner voter district 8.2 OVERVIEW OF DISTRICT The McKinney Water District provides domestic water service. This is the first full Municipal Service Review (MSR) for the District. The District was partially described in the previous 2004 MSR for the North Tahoe and Martis Valley area. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-2 North Tahoe and Martis Valley MSR TYPE AND EXTENT OF SERVICES The McKinney Water District is a public agency organized in 1961 under California Water Code sections 34000-38501 (The California Water District Law) for the primary purpose of providing domestic water service to residences and business within an unincorporated community that straddles Placer County and El Dorado County. Primary activities of the District include securing and protecting the water supply and delivery of potable water to customers. LOCATION AND SIZE The McKinney Water District serves residents and business in both unincorporated Placer County and El Dorado County. MWD is located immediately west of Highway 89 near the western shore of Lake Tahoe, along the border between Placer County and El Dorado County. See Figure 8-1 for District boundary. The District encompasses approximately 266 acres (0.4 square miles) and elevation ranges from 6280 ft. to 6440 ft. above sea level. The community of Tahoma is the socioeconomic center of the District area. 8.3 FORMATION AND BOUNDARY CONTACT INFORMATION: The McKinney Water District originally started in 1961 as an independent water district. The Karla Gunter, Manager District’s boundary encompasses portions of 103 Simmons Way, Folsom, CA both unincorporated Placer County and El 95630 Dorado County. BOUNDARY HISTORY LAFCo’s records do not indicate any changes to the boundary since the District’s original formation in 1961. SPHERE OF INFLUENCE LAFCo’s records do not show a Sphere of Influence (SOI) for the McKinney Water District. It is possible that a SOI was established in the past, but not noted in LAFCo’s files. If MWD and LAFCo would like to establish a SOI in the future, Tahoe City PUD should be consulted since its boundaries overlap and surround McKinney Water District. EXTRA-TERRITORIAL SERVICES The District does not provide water service outside its formal boundaries. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-3 d. R d. s R g Grouse Dr. bi n pri n E M m e c r K a i l n d n C ey ir C cl r e e C e a M k s a c r R a la d d C e t . . Mc Ki n n e R y o C r e e k M c ki n n e y R u bicon M B ll e e v u e v A e . S cKinne M ia m i A y v e . Rd. .e v A s iw e L .e v A y a r G .e v A re e D .e v A r a e B .tS m lE .tS r e c a lP D r. McKinney Ct. Dr. si d e Springs Ct. d o o W Evergreen Way PLACER COUNTY .d R n ip a EL DORADO COUNTY k n ih C y a W e p o S prings Rd. le tn A n o Rubic Kinney c M McKinney Water District County Boundary 0 500 1,000 Parcels Feet Roads Parcel, Roads and District Boundary from Placer County GIS. District Boundary in El Dorado County from El Dorado County GIS. Figure 8-1 MCKINNEY WATER DISTRICT North Tahoe and Martis Valley MSR AREAS OF INTEREST No specific areas outside the District boundaries have been identified that require services from the District. 8.4: ACCOUNTABILITY AND GOVERNANCE The District is governed by a five-member Board of Directors, who are elected by registered voters within the District boundaries. Regularly scheduled meetings are usually held on the fourth Friday of the month at 8:00 p.m.; although, sometimes the meeting date may be changed. Meetings are held at a residence located in McKinney Estates and the particular residence sometimes varies. Recently, the meetings have been held at 6575 McKinney Creek Road, Tahoma, CA. The current Board members and Manager are as follows: Name Term Expires Tom Waters 2019 Jerry Swartfager 2021 Anne Ballard 2019 Scott Cotner 2021 Vincent Dangler 2021 A review of the meeting minutes from January to May 2015 shows that Board members regularly attend each meeting. Local residents can attend meetings either in person or via teleconference. The teleconference option is useful for those second homeowners whose primary residence is located out of town. All meetings are publicly posted at least three days prior to Board meetings. The District’s website is utilized to post agendas in advance of meetings1. Postings are located on a public information board on the pump house within the District. Additionally, residents may call the district and request that copies of agendas and/or minutes be sent to them via US mail or email. The District publishes an annual newsletter which describes the meeting schedule and access to the teleconference. The District coordinates with the local radio station KAHI to advertise candidate filing opportunities when open seats on the Board of Directors become available. 8.5: MANAGEMENT EFFICIENCIES AND STAFFING Day-to-day operations are managed primarily by the Board of Directors who work in concert with the District Manager (i.e. the Board’s Secretary/Treasurer) and the District’s Agent. The District reports a total of six “employees” to the State Controller’s Office compensation databases2 and this includes the five Board members and one District Agent. The reported “employees” are not typical employees; rather the Board members receive a small stipend3 1 See: http://www.mckinneywaterdistrict.com/agenda.html 2 State Controller’s Office database at: http://www.publicpay.ca.gov/Reports/SpecialDistricts /SpecialDistricts.aspx#Pa05c8cd8820d48f1a25c469a3bfb558c_2_24iT0 3 . Each Director receives $100 per meeting. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-5 North Tahoe and Martis Valley MSR for a portion of their time preparing for and participating in the meetings. The District’s Agent is MWD Mission Statement a part-time position. There are no full-time employees at the District. Salary information is To furnish our customers with available at this website: reliable high quality drinking http://transparentcalifornia.com/. water in a fair, open, and cost effective manner; in accordance with standards set 8.6 POPULATION AND GROWTH for public health, safety, and the environment. POPULATION Population characteristics throughout the MWD service area are substantially affected by seasonal variations, distinct user groups and the abundance of second homes. There are seasonal variations in demand for water services, due to the popularity of skiing/winter recreation and summer lake visitation in the area. Determining the existing population for the District is a challenge because many of the established census tracts and blocks do not match up with the MWD boundaries. In some census measurements the community is “lumped” with adjoining areas, for example: • The community of Tahoma is census designated place #77728 and is formally referred to as “Tahoma CDP – El Dorado and Placer”. The US Census 2010 Demographic Profile reports that this census designated place has a population of 1,191 persons4 (USDC, 2010). This census designated place encompasses MWD and is much larger than MWD. • Zip Code 96142 encompasses the MWD. The US Census 2010 Demographic Profile reports that this zip code has a population of 1,037 persons5 (USDC, 2010). This zip code encompasses MWD and is much larger than MWD. The census tracts and blocks that comprise MWD are shown in Figure 8.2, below. The census tracts/blocks shown in Figure 8.2 correlate to Table 8.1 (next page). Figure 8.2: Census Tracts and Blocks within MWD U.S. Census Tracts/Blocks from : http://www.census.gov/2010census/popmap/ 4 http://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml 5 http://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-6 North Tahoe and Martis Valley MSR Table 8.1 Approximate Permanent Population Census Tract Block Group Permanent Population within MWD 223 2009 6 2011 16 2014 5 2017 8 2019 39 2020 2 2063 6 2064 18 2065 2 2066 8 2067 1 320 1015 5 1016 35 1017 2 1069 3 Total 156 Data Source: U.S. Census 2010. Tracts/Blocks from http://www.census.gov/2010census/popmap/ Based upon the data presented in Table 8.1 above, MWD serves a total of 156 permanent residents within its boundaries. MWD’s boundaries encompass 325 parcels; however several parcels remain vacant and a few single family homes are built on “double” lots. MWD serves 267 customers (i.e. households). Assuming that each of the 267 customers represents a single family dwelling and assuming an average occupancy of 2.55 persons per household, MWD would serve a total of 680 persons at its peak. This is less than the 1,000 persons served that the District estimated (MWD, 2014c). Like all districts in the Tahoe Basin, there is a large influx of tourists that add to the daily peak service demands. All of this translates into service demands for the MWD. The following excerpts are taken from the Travel Industry Assessment: Second Homeowner Trends: The Travel Industry Assessment reports that within the High Country Region, a large percentage of the housing units serve as private vacation homes and/or vacation rental properties, most notably for the communities of North Lake Tahoe. ….nearly two-thirds (67 Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-7 North Tahoe and Martis Valley MSR percent) of all single family homes, condominiums, and time-shares are not owner-occupied (Dean Runyan Associates, 2009). Table 8.2 Single-Family Residential, Condominium, and Time-Share Housing Units, 2008 Owner- Absentee Percent Location Zip Area Total Units Occupied Owner Absentee Homewood 96141 128 900 1,028 88% Tahoma 96142 41 166 207 80% Table 8.3 Existing Population in MWD Year Permanent Seasonal/Visitor Total Population Population Population 2010 156 524 680 PROJECTED GROWTH AND DEVELOPMENT Projections for future development and hence increased service demands within the MWD’s service area are based on information provided in the 1994 Placer County General Plan and related area plans, 2004 El Dorado County General Plan6, Tahoe Regional Planning Agency documents and other sources. Future population growth within the MWD is dependent upon land availability and upon zoning and general plan policies in the region. The primary land use within the District is single family residential. There are no proposed changes to the land uses within the district (MWD, 2014c). The District is largely built out and does not have a significant amount of vacant land available for new construction or expansion of existing uses. The Lake Tahoe area is under the jurisdiction of several agencies, including the Tahoe Regional Planning Agency (TRPA) and Placer County. Since the Lake straddles both California and Nevada, there are several state agencies with jurisdiction over the water and shoreline. TRPA was jointly created in 1969 as a bi-state compact by the states of California and Nevada in the late 1960s to meet Lake Tahoe basin-wide planning needs, including the development of general plans and other planning documents. TRPA is the agency responsible for regional planning, development and redevelopment oversight, regulatory enforcement, and implementation of environmental protection and restoration of Lake Tahoe and the surrounding region. Areas over which the TRPA has authority include new construction, erosion control, storm water runoff, shore-zone development and protection, road construction, land use, and tree conservation and harvesting. Through its 1987 General Plan, TRPA provides environmental quality standards and ordinances designed to achieve these thresholds. The Code of Ordinances within the 1987 General Plan regulates land use, density, 6 El Dorado GP at: https://www.edcgov.us/Government/Planning/Adopted_General_Plan.aspx Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-8 North Tahoe and Martis Valley MSR land coverage, excavation, and scenic impacts with the intention of bringing the region into conformance with specified environmental thresholds. In December 2012, the TRPA Governing Board adopted the Lake Tahoe Regional Plan Update. The Regional Plan Update leaves many of the policies of the 1987 Regional Plan in place while providing more autonomy to local governments through adoption of Area Plans. The 2012 Regional Plan identifies goals and policies to guide decision making as it affects the Tahoe Region’s resources and environmental thresholds. Goals and policies are addressed in six major elements including land use, transportation, conservation, recreation, public services and facilities, and implementation. The Regional Plan Update initiated a Region-wide transition to a planning and permitting system where all requirements—TRPA, local, state, and federal—are addressed in coordinated Area Plans. The Placer County General Plan serves as the County’s vision for long-term land use development and conservation. Placer County’s General Plan, adopted on August 16, 1994 and updated May 21, 2013, provides a series of goals, policies, standards and implementation programs to guide the land use, development, and environmental quality of the County. The County’s General Plan is generally consistent with TRPA planning documents. While the General Plan was updated in 2013, the area plans in the Tahoe Basin were not. In 2014 and 2015, Placer County embarked on a more compressive planning update for the Tahoe basin area plans. In an effort to develop more cohesive, user-friendly Planning documents for the Tahoe Community/General Plan Update, the nine Tahoe basin plans are consolidated into a single over-arching Community Plan policy document with four sub- planning areas each with their own zoning ordinances and design standards specific to each Plan Area. Each of the major communities in the Lake Tahoe area is also covered by area or community plans, which are incorporated into the Proposed/Review Draft Tahoe Basin Area Plan, June 2015. In MWD’s vicinity, the only proposed development project on the horizon is at the Homewood Ski Resort. The Homewood Mountain Resort Master Plan was approved by the Placer County Board of Supervisors in 2011. The project approval was subject to litigation which was settled out of court in January 20147. Under the Master Plan, the resort will redevelop mixed-uses at the North Base area, residential uses at the South Base area, and a lodge at the Mid-Mountain Base area. The 17-acre North Base area will include six new mixed-use buildings and eight new townhouse buildings to provide 36 residential condominiums, 16 townhouses, 20 fractional ownership units, 75 traditional hotel rooms, 40 two-bedroom for sale condominium/hotel units, 30 penthouse condominium units, 25,000 square feet of commercial floor area (CFA), 13 affordable housing units and a 30,000 square foot skier services lodge. The 6-acre South Base area will be converted to 95 ski-in/ski-out residences in a series of clustered chalets and one centralized condominium lodge. Please note that the 7 Legal settlement was described in the Tahoe Daily Tribune newspaper at: http://www.tahoedailytribune.com/news/9992880-113/homewood-resort-ski-tahoe Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-9 North Tahoe and Martis Valley MSR total number of residential units was reduced by 13, consistent with the 2014 legal settlement. The Mid-Mountain Base area will include a new 15,000 square foot day-use lodge with a detached gondola terminal linked to the lodge by a covered passage, a new learn-to- ski lift, an outdoor swimming facility for use during the summer months by West Shore residents, a new snow-based vehicle (e.g., grooming equipment) maintenance facility, and two water storage tanks. The Homewood Ski Resort is located north of MWD. MWD will not provide water service to the Ski Resort since the resort is not within MWD’s boundaries. As noted above, all future development must be in conformance with the TRPA, 2012, Lake Tahoe Regional Plan Update. The 2004 MSR predicted a 1% growth rate for MWD and this growth rate was not realized. Based upon this context, the population within MWD’s boundaries is not expected to grow in the future. This stable population estimate is detailed in Table 8.4 below. Table 8.4 Projected Population Growth in MWD Year Estimated Future Estimated Future Estimated Future Permanent Seasonal/Visitor Total Population Population Population 2010 156 524 680 2020 156 524 680 2030 156 524 680 2040 156 524 680 DISADVANTAGED UNINCORPORATED COMMUNITIES State law (adopted per Senate Bill [SB] 244) requires LAFCo to identify and consider disadvantaged unincorporated communities (DUCs) when preparing MSRs and Sphere updates for cities and special districts that provide sewer, water, or structural fire protection services. A small portion of MWD‘s service area that lies in El Dorado County has been identified by the CA Department of Water Resources as a Disadvantaged Unincorporated Community 8 as shown in Figure 8.3, 8 DUC’s are mapped at: https://gis.water.ca.gov/app/boundaries/ Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-10 North Tahoe and Martis Valley MSR above. This identification was made based upon data from the US Census ACS 2009-2013 showing census tracts identified as disadvantaged communities (less than 80% of the State's median household income) or severely disadvantaged communities (less than 60% of the State's median household income) (DWR, 2015). Fire service in the El Dorado portion of the district is provided by the Meeks Bay Fire Protection District. In the Placer County portion of MWD, fire protection is provided North Tahoe Fire Protection District. Wastewater collection service is provided by Tahoe City PUD. As discussed in this MSR, the area is well-served with basic infrastructure and no health or safety issues have been identified. 8.7: DISTRICT SERVICES SERVICE OVERVIEW The District operates water system # CA3110022 to provide domestic water services within its boundary area9. MWD defines a customer as the property owners within the boundaries of McKinney Water District. The District has maintained a steady rate of 267 customers during the years 2003 to 2012. The system contains two pressure zones. SUPPLY/DEMAND Supply: The primary source of domestic water for MWD is groundwater supplied via two metered wells. Well #1 is approximately 355 feet deep and is equipped with a 40 h.p. motor driving the turbine pump. It has capacity to supply 600 gpm. It was originally drilled in 1963. Well #1 is utilized on a standby basis only (i.e. during emergencies or during peak demand) because it produces water containing a fine sand when pumping over 200 gpm. A propane auxiliary motor is used for emergency use during power outages. Well #2 is equipped with a submersible pump with a 400 gpm capacity. It has a hydropneumatic tank and booster pump. Well #2 was was drilled in 1982 (Placer County, 1992). A water supply source assessment was prepared for well #2 in 2003. This paragraph summarizes information from this study and it is acknowledged that the information is 12 years old. Well #2 has a maximum pumping rate of 100 gallons per minute. It pumps approximately 161 acre feet per year. The aquifer that is accessed by Well #2 is an unconfined or semi-confined fractured rock aquifer. Since the primary land use in the District is residential, there are no commercial uses that could potentially contaminate the local groundwater supply. Other potential sources of contamination noted in the assessment include the sewer collection system, local fire station, above ground storage tanks, transportation corridors (i.e. roads/highways), managed forests, and McKinney Creek (CDHS, 2003). 9 Water system details available at: https://sdwis.waterboards.ca.gov/PDWW/JSP/WaterSystemDetail. jsp?tinwsys_is_number=3434&tinwsys_st_code=CA&wsnumber=CA3110022 . Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-11 North Tahoe and Martis Valley MSR The availability of ground water is partially dependent upon long term climate that could affect local hydrology. Although it is not clear how climate change will affect the District’s water supplies, it is an issue that the District should consider in its own water planning efforts. Water Quality: The District prepares a consumer confidence report on an annual basis which informs its customers of the results of water quality testing. Water quality constituents that are tested for include lead, copper, sodium, hardness, bicarbonate, calcium, magnesium, specific conductivity, sulfate, chloride, and arsenic. Arsenic naturally occurs in many groundwater sources in California. Although the District’s test results show arsenic was below the 10 ppb Maximum Contaminant Level set by the EPA, the level was above the public health goal of 0.4 ppb. At 4.0 ppb, the arsenic level will continue to be monitored by the District. The 2013 consumer confidence report was reviewed for this MSR and data shows that there were no violations of state and federal water quality standards for any constituent tested (MWD, 2014a). The Environmental Working Group posts water quality data for all public water suppliers on its website. Data 10 for the McKinney Water District indicates that for one month the health guidelines for radiu-228 and radium-226 were exceeded. “Guidelines” sometimes have higher criteria than health “standards”. Additionally nitrate and nitrite were detected. Radium and nitrate/nitrite are naturally occurring in the Tahoe area; however they may be exacerbated by urban sprawl, pollution, or as a chemical by-product. Both radium and nitrate/nitrite should continue to be monitored. Data indicates that MWD’s water quality meets federal and state health standards. Exceedance of guideline criteria or minimal detection for one test does not necessarily indicate that the system is out of compliance (EWG, 2015). Demand: Water service demand for the five-year timeframe from 2009 to 2013 are shown in Figure 8.4 (next page). Projections of future water service demands are based upon the number of connections the District is expected to serve. Since it is projected that the District will see no future growth and the number of customers served will remain stable at 297, it is projected that future water service demand will be similar to that shown in Figure 8.4 (next page). 10 MWD data available at: http://www.ewg.org/tap-water/whatsinyourwater/CA/Mckinney-Water- District/3110022/ Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-12 North Tahoe and Martis Valley MSR 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Source: MWD, 2014c Water Conservation: Water conservation has risen in importance during the 2011-2015 drought throughout the state. On March 17, 2015 the State Water Resources Control Board (State Water Board or Board) adopted an expanded emergency conservation regulation11 to safeguard the state’s remaining water supplies. McKinney Water District Board of Directors has declared a Stage 2 Drought Response and both the District and its customers have implemented several water conservation practices during the past few years including the following: • Residents are asked to not use irrigation systems during the hours of 10am – 4pm each day. • Residents are asked to voluntarily reduce water usage by 20%. • Landscaping at new construction sites is limited and must comply with Tahoe regional Planning Agency’s Best Management Practices. • MWD website maintains up to date information on the District’s Stage 1 Water Alert and Water Conservation Ordinance 2010-2. The District does not participate in the local Integrated Regional Water Management Plan (MWD, 2014c) and may therefore miss a few grant opportunities to partially fund water conservation measures. 11 Details available on SWRCB website at: http://www.waterboards.ca.gov/waterrights/ water_issues/programs/drought/emergency_regulations.shtml Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-13 snollaG Figure 8.4. Mckinney Water District Monthly Production 2009-2013 2009 2010 2011 2012 2013 Month North Tahoe and Martis Valley MSR 8.8 INFRASTRUCTURE AND FACILITIES The McKinney Water District owns and operates several key infrastructure and facilities including two wells and several thousand feet of water pipelines. The State Water Board, Drinking Water Branch last conducted an inspection of MWD’s facilities on 08-16-2012 and found no deficiencies12. Well #1, originally drilled in 1963, is 355 feet deep. This well has a 40 horsepower motor driving the turbine pump and it can supply 600 gpm to the system. However, Well 1 is used only for emergency purposes because it produces water containing a fine sand when pumping over 200 gpm. It is also equipped with a propane auxiliary motor for emergency use during power outages. Well #2, originally drilled in 1982, is equipped with a submersible pump having capacity of 400 gpm. This well is also equipped with a hydropneumatic tank and booster pump. TRANSMISSION AND DISTRIBUTION INFRASTRUCTURE MWD’s distribution system is composed of 1400 ft. of 4 inch and 15.100 ft. of 6 inch diameter pipe. Primary pipe material is composed of wrapped or dipped steel pipe. System pressures range from 45 to 70 psi. All dead ends are equipped with blow-off valves for flushing purposes. Water storage is provided via a 50,000 gallon redwood storage tank located in the upper portion of the system. The wells pump directly into the tank and in-tum the tank supplies the system by gravity (Placer County, 1992). At one time, MWD maintained an interconnection with the Tahoe Cedars domestic water supply system for purposes of providing an emergency water supply. It is not clear whether this interconnection still exists. 12 Data source: https://sdwis.waterboards.ca.gov/PDWW/JSP/SiteVisits.jsp?tinwsys_ is_number=3434&tinwsys_st_code=CA&counter=1 Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-14 North Tahoe and Martis Valley MSR WATER STORAGE MWD maintains a 50,000 gallon water storage tank. Title 22, Chapter 16, California Waterworks Standards13, requires a public water system to supply maximum day demand with all sources operations, including adequate fire flow storage and peak hourly flow. Fluctuations in water demand exceeding maximum day demand are supplied from storage tanks. Storage requirements are as follows: fire protection at 3,000 gpm for three hours, operation storage at 25 percent of maximum day demand, and emergency storage totaling 25 percent of fire and operational storage. MWD has indicated it has sufficient storage for current and projected needs. CROSS CONNECTION CONTROL PROGRAM The District has a Cross Connection Control Program which facilitates the installation and testing of backflow prevention device(s). This program is mandated by the California Department of Public Health (CPDH). The MWD has contracted with a private company called “B&L Backflow” to administer this required program. WATER TREATMENT The California Department of Health Services (DHS) has standards that typically necessitate the treatment of domestic water supply. Since MWD’s water supply naturally has good water quality, minimal water treatment is needed; however details regarding water treatment were not readily available from MWD. INFRASTRUCTURE DEFICIENCIES Although the District does not have an adopted capital improvement plan, it has noted that outdated pipelines will need to be replaced within the next 10 years (MWD, 2014c). OPPORTUNITIES TO SHARE FACILITIES The District does not have any capital facilities or services that are jointly owned or shared with other agencies. The District does not maintain mutual aid or automatic aid agreements with another agency. The District does not belong to or participate in any joint power authorities (JPAs) or joint decision-making efforts (MWD, 2014c). However, the District does have a water supply purchase agreement with TCPUD, allowing TCPUD to purchase water, in the event of an emergency (MWD, 2014c). 13 Title 22 is available at: http://www.waterboards.ca.gov/drinking_water/certlic/drinkingwater/Lawbook.shtml Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-15 North Tahoe and Martis Valley MSR 8.9: FINANCING The financial analysis in this MSR for all the districts studied (except MWD) relied upon audited financial statements. Audited financial statements are the preferred source of data for financial analysis because: • audits are completed by independent third-party experts who can provide unbiased recommendations; • there is significant variation in the approach to budgeting among the 13 districts included in this MSR and audits are performed according to specific standards; and • audits are part of best management practices for all government agencies. Generally, if audited financial statements are not made readily available to LAFCo and/or its MSR consultants it raises a concern about the ability of the district to follow standard accounting procedures and to provide transparency in financial transactions to the general public. MWD was not able to provide audited financial statements to LAFCo for this MSR financial analysis. Additionally, MWD has asked the Placer County Auditor/Controller to waive audits for Fiscal Years 2005 – 2010. Significant concern is not warranted at this time because: 1) this is the first full MSR for MWD; 2) MWD is a very small district; 3) MWD does share its annual budget with the public via its website in a timely manner; and 4) financial information is reviewed by the Board at its regular monthly meetings and that information is included in the meeting minutes which are also posted on the website. Nevertheless, it is recommended that when the next MSR for MWD is completed in five years, that MWD have audited financial statements for at least two fiscal years prepared and ready to share with LAFCo. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2014. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: http://www.mckinneywaterdistrict.com/about.html . The District has no outstanding debt (MWD, 2014c). The District does have liability insurance. However, it does not maintain insurance for misc. professional activities nor does it participate in pooled insurance coverage with other agencies (MWD, 2014c). The District does not charge any special parcel taxes and this was verified through the California Tax Foundation’s study of California parcel taxes at: http://www.caltaxfoundation.org/special- taxes/. REVENUES MWD’s receives revenue from three sources: • charges for water service. • portion of the base property tax collected by Placer County and El Dorado County on parcels within the District boundaries. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-16 North Tahoe and Martis Valley MSR • Supplemental standby (Wholesale sale of water to neighboring districts [usually in the event of drought or emergency]). MWD supplies financial data, including revenue information to the CA State Controller’s Office who shares information via an on-line state database14. This database was queried and showed that average total revenue for the District between 2007 to 2013 was $205,002. See Figure 8.5 below for details. Figure 8.5: MWD Revenues 300000 250000 200000 150000 100000 50000 0 2007 2008 2009 2010 2011 2012 2013 Total operating revenue is money received as a result of fees for service. Customers receive a monthly water bill and the funds collected are accounted for as “operating revenue”. Non- operating revenue is the funds received as a result of property taxes. Each parcel located within the geographic boundaries of the District pays property taxes to Placer County and El Dorado County and a small percentage of these taxes are forwarded to MWD to support the budget for the District. All property taxes received by MWD are utilized to operate the water system. 2007 saw the lowest total revenue into the District at $165,190. The highest annual revenue received (of the seven years studied) was in 2011 at $266,844. The District’s annual budget provides more detailed information about the District’s financial planning and about sources of revenues and expenditures and this information is shown in Figure 8.6 below. MWD’s total projected revenue for 2015 is $317,736 which includes $160,450 in Water Service Fees; $20,800 in Supplemental Standby - Ordinance 2008-2; and $136,486 in Allocations from Placer County and El Dorado County (MWD, 2014b15). 14 Database is at: <https://bythenumbers.sco.ca.gov/Special-Districts-Enterprise-Activities/Special- Districts-Water-Enterprise-Revenues-Expens/ef32-d5sy>. 15 The MWD 2015 Budget is available at: http://www.mckinneywaterdistrict.com. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-17 $ SU ni seuneveR Revenues for MWD 2007 - 2013 Total Non-Operating Revenue Total Operating Revenue Data Source: CA State Controller's Office North Tahoe and Martis Valley MSR Figure 8.6. MWD 2015 Proposed Budget $500,000 Cash on hand $450,000 Tax Allocation $400,000 Supp Standby $350,000 $300,000 Water Service Fees $250,000 Operation and $200,000 Maintenance Administrative $150,000 $100,000 Safe Place Storage $50,000 Employee $0 Compensation Expenses Revenues Funds FUNDS Figure 8.6 above shows a third column labeled “funds” which reflects MWD’s 2015 Projected Budget of $438,530.42. This “Funds” category represents cash on hand in checking, savings, and wealth management accounts (MWD, 2014b). EXPENDITURES MWD’s projected budget for 2015 indicates expenditures will total $193,688. The largest expenditure of $90,605 is for Administrative expenses such as office supplies, liability insurance, payroll tax, regulatory fees, and professional fees for contract engineer, accountant, and legal advisor. Operation and Maintenance costs are $44,695 in 2015. Employee Salaries are expected to total $57,740 (MWD, 2014b). Figure 8.7 below depicts annual expenditures for MWD from 2007 to 2013 as reported to the CA State Controller’s Office. Average wages in 2013 were $2,662 and total wages paid was $15,970 (State Controller, 2015). Total wages paid is budgeted to increase in the 2015 budget to a total of $57,740. The Board’s Secretary/Treasurer functions as the District’s General Manager and is the highest paid employee (State Controller, 2015). Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-18 North Tahoe and Martis Valley MSR Figure 8.7: MWD Annual Expenditures 600000 500000 400000 300000 200000 100000 0 2007 2008 2009 2010 2011 2012 2013 Comparing revenues (Figure 8.5) to expenditures (Figure 8.7) shows that expenditures exceeded revenues for several years including 2009, 2011, and 2012. In these cases, MWD utilized its “fund” account to pay for the additional CIP expense. RATE RESTRUCTURING Rate information from the McKinney Water District was not readily available for this MSR. It is recommended that MWD provide LAFCO with a copy of its standard water rates, prior to preparation of the next MSR. MWD does bill for water service on an annual basis and those bills for users (and standby connections) are mailed in April of every calendar year. Payment is due no later than June every calendar year. Any late or non- payments is assessed with a penalty (10% for users and $10.00 for standby connections) on the County Tax Roll. COST AVOIDANCE MSRs describe measures that districts take to avoid unnecessary costs because it is important for the public sector to avoid waste and to be financially efficient. The District Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-19 $ SU ni sesnepxE Total Operating Expenses for MWD 2007 - 2013 Total Operating Expenses Data Source: CA Controller's Office North Tahoe and Martis Valley MSR does not maintain a permanent office or public meeting space and therefore does not pay rental fees. The avoidance of rental fees does save money. The District does pay a small annual stipend of $540 to a local “host” for use of a space for the regular meetings of the Board. The District staffing is minimal and all serve on a part-time basis. This approach to staffing also saves money. PERMITS, MOU’S, AND AGREEMENTS McKinney Water District has a memorandum of understanding (MOU) with the Tahoe Regional Planning Agency (TRPA) which guides water supply activities, erosion control and restoration activities, treatment, signs, and roads (TRPA, 1999). To streamline the permit process, TRPA and MWD entered into the exempt MOU, allowing the District authority to review their own projects for conformance with TRPA standards. McKinney Water District has participated in a Reimbursement Agreement with the Tahoe City PUD on the Transmission Pipeline Project, Phase 2, associated with TCPUD’s provision of service to Tahoma Meadows (TCPUD, 2013). Since both the MWD and the TCPUD have areas where the pipelines are congruently located, collaboration on construction and upgrades makes sense. The system is operating under a California drinking water supply permit issued in 1964 and an amendment granted in 1979. The District also receives permits from Placer and El Dorado Counties for repair and/or replacement of District infrastructure (MWD, 2014a). There is no outstanding litigation facing the District at this time (MWD, 2014c). CHALLENGES The District anticipates completing pipeline repairs within the next 5 years (MWD, 2014c). Paying for the repairs and managing the pipeline installation/construction will be a demand on MWD’s resources. No other challenges have been identified by the District at this time. Across California, small-sized districts that are similar to MWD face obstacles due to their small-size16 (Susman et.al, 2006) including: • Fiscal constraints:  Statutory restrictions on revenue (Prop. 218)  Lack of State and federal grant programs (enjoyed in the past)  Fiscal constraints sometimes result in deferred maintenance and an inability to finance upgrades to meet more rigorous state and federal regulations.  Increasing costs • Governance:  Increasing State and Federal regulatory requirements 16 Indicators of a small-sized district described in presentation at: <www.calafco.org/docs/2006_Conference.../TooSmallPresentation.ppt>. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-20 North Tahoe and Martis Valley MSR  Difficulty maintaining continuity of management and elected representation  Lack personnel that could help small districts expand their revenue sources through grants or loans, or to raise assessments or taxes  Difficulty meeting reporting requirements including state filings, local and public requests for information  Difficulty filling board member seats  Inability to provide adequate training  Potential conflicts of interest  Small pool of potential elected officials MWD has worked diligently to overcome these types of challenges. MWD has demonstrated adequate fiscal resources as described in the “Financing” Section above. MWD’s governance structure seems to be working and it has not been subject to lawsuits or ethics violations. All five seats on the Board are filled and Board members regularly attend meetings. MWD seems to be responsive to its constituents. Balancing the future challenges MWD may face with its diligent work to overcome these challenges is a matter of assessing future risk. The risk is that a District that serves only 267 customers (i.e. 156 permanent residents) may not be sustainable over the long-run. Therefore, it is recommended that prior to the year 2021, when LAFCO prepares the next MSR for MWD, MWD should produce a study that outlines various options for ensuring the long term and sustainable provision of water service to customers within MWD’s boundaries. Those options may include maintaining MWD’s governance and organizational structure as is (i.e. status quo), merging with a nearby water district, or other potential solutions. The results of this study should be presented to LAFCO. 8.10: SERVICE ADEQUACY Since larger-sized districts can distribute costs among a large pool of customers, it is generally more cost efficient on a per-capita basis for larger districts to comply with state regulations, install needed capital improvements, and maintain the administrative structure to manage a district as compared to smaller-sized districts. However, MWD has managed to overcome these hurdles, keep its costs low, and still provide good service to its customers. MWD has consistently delivered high quality water to its customers. There have been no structural reorganizations such as consolidations or reorganizations identified that would benefit recipients of services or improve the provision of services to residents within MWD’s boundaries in the near-term (MWD, 2014c). However, options for the long-term provision of water service should be studied as described in the “Challenges” section, above. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-21 North Tahoe and Martis Valley MSR 8.11 DETERMINATIONS GROWTH AND POPULATION PROJECTIONS 1. The McKinney Water District (MWD) served a permanent population of 156 residents as of 2015; however, the population served by the District is predominantly seasonal, with approximately 80 percent of residents occupying their homes only during peak seasons (summer and winter) months. 2. The number of residential connections in the District in 2015 was 297. With an average household size of 2.55 in Placer County, the estimated maximum population during the peak winter/summer season is 680 people. 3. Given that no population growth occurred in the District during the 2009 to 2013 timeframe, it is assumed that growth will not occur in the near term future. 4. There are no plans for expansion of the service area, and nearly all large surrounding parcels are zoned for conservation or recreation uses, or are already constructed with existing residential subdivisions. 5. The District has the capacity to provide water for year-round residents and seasonal residents. DISADVANTAGED UNINCORPORATED COMMUNITIES 6. A small portion of MWD‘s service area that lies in El Dorado County has been identified by the CA Department of Water Resources as a Disadvantaged Unincorporated Community. The area is well-served with basic infrastructure and no health or safety issues have been identified. PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES 7. The District was established in 1961 to provide domestic water service, including protection of water supply and water delivery, to the McKinney Estates subdivision. 8. Since the District is mostly built-out, there is limited future growth potential. No annexation proposals have been brought before Placer LAFCo since the inception of the District. 9. Repairs and replacements of water pipeline will be a necessary and ongoing issue for water delivery infrastructure. 10. Although the District does not have a capital improvement plan, it is aware of the need to repair and update pipeline infrastructure. The District’s annual budgets consider these infrastructure improvements within the service area. However, the cost for needed pipeline repair/replacement has not yet been detailed. A cost estimate for infrastructure needs and deficiencies would allow the district to better prepare assessments and budgets. It is recommended that the District consider preparation of a multi-year capital improvement plan. 11. Water is pumped from one active well, while another well is used only on a backup basis. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-22 North Tahoe and Martis Valley MSR 12. Water supply regularly exceeds the amount needed for the service area. 13. Water conservation is important to the District and it has recently taken several measures to support customer water conservation including declaration of a Stage 2 Drought Response by the McKinney Water District Board of Directors with restrictions on water usage. 14. Water delivery appears to be adequate in the foreseeable future. 15. The District may wish to consider how climate change may affect the District’s water supplies, in its own water planning efforts. 16. The District may wish to consider participating in regional water planning efforts such as an integrated regional water management plan or the Truckee Watershed Council in order to optimize its ability to apply for grants. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES 17. On an annual basis, the McKinney Water District adopts a comprehensive budget. The FY 2015 budget is available to the general public via the District’s website. This budget demonstrates adequate finances for the continued ability of the District to provide services. 18. The District is funded through service charges, fees, and taxes. 19. MWD was not able to provide audited financial statements to LAFCo for this MSR financial analysis. It is recommended that when the next MSR for MWD is completed in five years, that MWD have audited financial statements for at least two fiscal years prepared and ready to share with LAFCo. 20. The District has no outstanding debt. 21. Within the next several years, the District plans to implement several modest and specific capital improvements to maintain and support its infrastructure. It is recommended that any capital improvements be considered in light of available revenues and other potential funding sources to ensure that the scope of the proposed projects is congruent with funding availability. 22. A formal Schedule of Rates was not readily available for this MSR. It is recommended that rates be reviewed during a public meeting and adjusted as necessary to fund District costs and provide for capital improvements as needed. The schedule of rates should be provided to LAFCO when the next MSR is prepared. 23. Utility bills are not detailed out as a separate line item in MWD’s annual budget. Electricity is utilized to power the well pump(s). Utility costs could be one area in which the District may wish to consider implementing projects to improve energy efficiency and thus lower utility bills. Within the next ten years, it is suggested that the MWD develop a plan to utilize green technology, energy efficient pumps, or other Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-23 North Tahoe and Martis Valley MSR mechanism to lower utility bills or to balance the use of fossil fuel sourced energy with renewable sourced energy. 24. The District practices cost reduction through careful purchasing, bidding processes, and other mechanisms. 25. In the short-term, no additional cost-avoidance opportunities have been identified at this time. STATUS OF, AND OPPORTUNITIES FOR, SHARED FACILITIES 26. No opportunities for facility sharing have been identified. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATIONAL EFFICIENCIES 27. The District demonstrated accountability through its prompt disclosure of information requested by LAFCo for preparation of this MSR. 28. Board meetings are publicly noticed and comply with the Brown Act, California’s open meeting law. They are held every other month. 29. No boundary changes are pending or proposed at this time. 30. All Board members have access to District data, records and information. 31. The District has adequate public outreach, with a public website featuring meeting minutes, and general information. 32. The District does not currently have a strategic plan that outlines its mission statement, vision statement, and goals and objectives. Such a strategic plan could help the District could improve upon 1) planning efforts, 2) accountability and transparency. 33. MWD’s boundaries overlap with the Tahoe City Public Utilities District. 34. There is a risk is that a District that serves only 267 customers may not be sustainable over the long-run. It is recommended that MWD produce a study that outlines various options, including reorganization of its government structure, for ensuring the long term and sustainable provision of water service to customers within MWD’s boundaries. The results of this study should be presented to LAFCO prior to the year 2023, when LAFCO prepares the next MSR for MWD. 35. LAFCo’s records do not show a Sphere of Influence (SOI) for the McKinney Water District. It is possible that a SOI was established in the past, but not noted in LAFCo’s files. If MWD and LAFCo would like to establish a SOI in the future, Tahoe City PUD should be consulted since its boundaries overlap and surround McKinney Water District. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-24 North Tahoe and Martis Valley MSR 8.12: BIBLIOGRAPHY California Department of Health Services (CDHS), Drinking Water Field Operations Branch, DHS Sacramento District. Drinking Water Source Assessment. McKinney Water District. Well 02. May, 2003. 10-pages. Available on-line at: <http://nebula.wsimg.com/a40639a9f46f7a5ea4c00fc9634d4921?AccessKeyId=97D2349 FFA78894894FE&disposition=0&alloworigin=1> California State Controller’s Office. Government Compensation in California Database. 2013. Accessed in July 2015. Available on-line at: <http://publicpay.ca.gov/>. Dean Runyan Associates, 2009. Placer County Travel Industry Assessment and Detailed Economic Impact Estimates, 2002-2008. March 2009. CA Dept. of Water Resources (DWR). Water Management Planning Tool. Accessed 7/7/2015. Available on-line at: < https://gis.water.ca.gov/app/boundaries/>. Environmental working Group. National Drinking Water Database for years 2005 to 2009. Accessed 8/7/2015. Available on-line at: <http://www.ewg.org/tap-water/whats-in- yourwater.php>. McKinney Water District (MWD). Proposed 2015 Budget. December 2014-b Excel format. Available on-line at: <http://www.mckinneywaterdistrict.com>. Accessed June 15, 2015. McKinney Water District (MWD). Consumer Confidence Report (CCR) 2013. January 1, 2014-a. 4 pages. McKinney Water District (MWD). Response to LAFCO’s Request for Information. 2014-c. 22 pages. (Available in LAFCO’s file). Susman, Josh; Kampa, Peter; Kieser, Walter ; and Jones, SR. “Creating & Restoring Sustainable Public Agencies”. PowerPoint Presentation to CALAFCo Conference 2006. <www.calafco.org/docs/2006_Conference.../TooSmallPresentation.ppt>. Tahoe Regional Planning Agency (TRPA). Memorandum of Understanding between TRPA and McKinney Water District. May 23, 1999. 4 pages. Available on-line at: <http://www.trpa.org/wp-content/uploads/Appendix-II_McKinney-MOU-Apx-II.pdf>. Tahoe City PUD (TCPUD). Tahoma Meadows Mutual Water Co. Transmission Pipeline Project, Phase 2, Reimbursement Agreement between the TCPUD and the McKinney Water District. June 27, 2013. 11 pages. Available on-line at: <http://tahoecitypud.granicus.com/MetaViewer.php?view_id=2&event_id=27&meta_i d=17919 >. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-25 North Tahoe and Martis Valley MSR Placer County. General Plan Update. General Plan Background Report, Technical Appendices, Appendix A: Large Water Systems. September 25, 1992. Contributing authors include Crawford Multari & Starr, DKS Associates, Psomas and Associates, et. al. 382 pages. U.S. Department of Commerce (USDC), United States Census Bureau. 2010 Demographic Profile. American Fact Finder Website. Accessed on 5July2015. Available on-line at: <http://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml>. Draft Final MSR, August 2018 Chapter 8, McKinney Water Dist. 8-26 North Tahoe and Martis Valley MSR Chapter 9 North Tahoe Fire Protection District Photo courtesy of http://www.ntfire.net/fire-rescue/. This Municipal Service Review (MSR) describes the North Tahoe Fire Protection District. This District was originally formed in 1993 and currently provides fire and emergency response services, including fire suppression and prevention, public education, advanced life support, ambulance/emergency service, hazardous materials mitigation, and rescue services within its service area. Table of Contents 9.1: Agency Profile ...................................................................................... 9-2 9.2: Overview of District ............................................................................... 9-2 9.3: Formation and Boundary .......................................................................... 9-3 9.4: Accountability and Governance .................................................................. 9-5 9.5: Management Efficiencies and Staffing .......................................................... 9-6 9.6: Population and Growth ............................................................................ 9-8 9.7: Financing ...........................................................................................9-13 9.8: Fire and Emergency Services ....................................................................9-16 9.9: Infrastructure Needs and Deficiencies .........................................................9-19 9.10: Cost Avoidance and Facilities Sharing .........................................................9-20 9.11 Determinations ....................................................................................9-22 9.12: Bibliography .......................................................................................9-24 Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-1 North Tahoe and Martis Valley MSR 9.1: Agency Profile North Tahoe Fire Protection District Type of District: Fire Protection District Enabling Legislation: The California Fire Protection District Law of 1987 (also known as Health and Safety Code § 13800-13970). Functions/Services: Fire suppression and prevention, public education, advanced life support, ambulance/emergency service, hazardous materials mitigation, rescue services. Main Office: 222 Fairway Drive, Tahoe City, CA 96145 Mailing Address: PO Box 5879, Tahoe City, CA 96145 Phone No.: (530) 583-6913 Fax No.: (530) 583-6909 Web Site: www.ntfire.net General Manager: Michael Schwartz Email: Schwartz@ntfire.net Governing Body: Board of Directors Term Expires Mike Baffone, Area 1 2020 Russ Potts, Area 2 2018 Dennis Correa, Area 3 2020 Luke Ragan, Area 4 2018 Richard Loverde, Area 5 2020 Meeting Schedule: 3rd Wednesday of the month at 4:30 p.m. Meeting Location: 222 Fairway Drive, Tahoe City, CA Date of Formation: June 29, 1993 Principal County: Placer County 9.2: Overview of District The North Tahoe Fire Protection District (NTFPD) provides structural and wildland fire protection and suppression and emergency medical services. The proximity of the NTFPD to Lake Tahoe and area skiing and hiking resorts has led to the provision of several unique additional services, including support for back country rescues, boating/swimming distresses, avalanche extrications, snowmobile accidents, rope rescues, hillside rescues, and searches. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-2 North Tahoe and Martis Valley MSR Type and Extent of Services The North Tahoe Fire Protection District is a public agency organized in 1993 under California’s Fire Protection District Law1 of 1987 (i.e. Health and Safety Code § 13800-13970). Primary activities of the District include fire and emergency response services within its service area, including fire suppression and prevention, public education, advanced life support, ambulance/emergency service, hazardous materials mitigation, and rescue services. This is the second full Municipal Service Review (MSR) for the District as it was described in the previous 2004 MSR for the North Tahoe and Martis Valley area. Location and Size The North Tahoe Fire Protection District is located along the northern shore of Lake Tahoe, from the Washoe County (State of Nevada) line southwest to El Dorado County. The NTFPD encompasses all property along Lake Tahoe, including along Highway 89 to Alpine Meadows. The service area includes the communities of Kings Beach, Tahoe Vista, Carnelian Bay, Tahoe City, Dollar Point, Homewood, Tahoe Point, Tahoma and Meek’s Bay. 9.3: Formation and Boundary The NTFPD was formed by consolidation with Tahoe City Fire Protection District, effective June 29, 1993. Boundary History The District’s boundary encompasses approximately 31 square miles of the North Tahoe areas of Placer County, from the El Dorado County line to the Nevada State line as shown on Figure 9.1. This boundary includes the areas of the Tahoe City Public Utilities District and North Tahoe Public Utilities District. LAFCo files indicate there have been no changes to the District’s boundaries since its formation. Additionally, NTFPD provides services to the Alpine Springs County Water District area and the Meek’s Bay Fire Protection District (located in El Dorado County) via service contracts. Sphere of Influence The Sphere of Influence (SOI), which is coterminous with the District boundaries, has remained unchanged since the District’s formation in 1993. District staff has indicated that the District’s SOI is not adequate for projected future needs with potential development in the Brockway Summit, Alpine Meadows, and Homewood Mountain Resort (NTFPD, 2013c, p. 4). Specifically, NTFPD indicates that Alpine Springs County Water District area and the Meek’s Bay Fire Protection District area should be considered for inclusion in their SOI. 1 Details at: http://sgf.senate.ca.gov/thefireprotectiondistrictlawof1987 Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-3 267 Kings Beach Dirt Rd Tahoe Vista 89 28 Dollar Point Sunnyside-Tahoe City Lake Tahoe 89 North Tahoe FPD and Sphere of Influence County Boundary Communities 0 1 2 Miles Roads District Boundary and Roads from Placer County GIS Figure 9-1 NORTH TAHOE FIRE PROTECTION DISTRICT North Tahoe and Martis Valley MSR Extra-territorial Services The NTFPD provides fire protection services to the Alpine Springs County Water District and provides management services to Meeks Bay Fire Protection District area under contract. Areas of Interest No specific areas outside the District’s current service area have been identified that require services from the District. As noted above, the District does provide some services outside its current boundary to Alpine Springs County Water District and to Meeks Bay Fire Protection District. Please also see section 9.6, below, for information on disadvantaged unincorporated communities within the District’s boundaries. 9.4: Accountability and Governance The District operates under the leadership of an elected, five-member Board of Directors, with a Fire Chief providing daily oversight and management of staff and resources. The District holds regularly scheduled meetings on the third Wednesday of the month, at 4:30 p.m. Board meetings are held in compliance with the Brown Act and all laws governing public meetings. Agendas are publicly noticed and posted at the District’s two main fire stations, on their website (www.ntfire.net), provided to the local newspaper and emailed to board members and District staff (NTFPD, 2013c, p. 2). Public comment is allotted at every meeting for items on the agenda and items not on the agenda. Agendas, meeting minutes, and board packets are posted on the District website. The District and its activities undergo public review procedures, including financial review by independent auditors. There are sufficient mechanisms in place to ensure that actions and operating procedures of the District are open and accessible to the public. The District maintains a website as noted in the Agency Profile, above, where residents can obtain District news, water and sewer rates, District meeting information, etc. The District utilizes a formal complaint process utilizing the NTFPD complaint form and Complaint Standard Operating Procedures. Additionally, customers may send comments or complaints to the District office in-person, by letter, or use the District’s website contact page. No formal complaints were received in either 2011 or 2012 calendar years (NTFPD, 2013c, p. 3). Directors are elected to four-year terms, the last election having occurred in 2014 (See District Profile above for list of current Directors). As of December 2014, there were no vacancies on the Board. The next election will be November 2016 for the three seats that will expire at the end of 2016. Each Director is compensated $187.33 per day for each day’s attendance at meetings of the Board or for each day’s service rendered as a member of the Board by request of the Board (NTFPD Ordinance No. 01-2012). Alternatively, Board members Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-5 North Tahoe and Martis Valley MSR may elect to receive $20 per day for meeting attendance days and be provided health care coverage by the District on terms comparable to those offered a full time administrative employee of the District (NTFPD, 2012). 9.5: Management Efficiencies and Staffing The organization of the North Tahoe FPD is comprised of the Board of Directors, the Fire Chief, and Division Chiefs, which specialize in administration, operations, and prevention. The Fire Chief works directly for the Board of Directors under a separate employment agreement. The Fire Chief receives general policy direction from the Board of Directors and exercises direct supervision over management, supervisory, safety and clerical support staff including compliance with the District Rules and Regulations by all employees. The primary function of this position is to plan, direct, coordinate, organize and oversee the activities of the District, including but not limited to: changes or revisions to the District Rules and Regulations, development and implementation of administrative and operational policies and procedures; financial management of the annual expenditure plan; provision for emergency medical services, emergency management, general administration, and other required services; to ensure aggressive fire suppression, fire prevention, hazardous fuels reduction and public education programs; and coordination with other fire departments/districts and outside agencies on matters of mutual interest. The Fire Chief shall bear full responsibility for appointment, promotion, demotion, discipline, discharge, reclassification and reinstatement of all employees in accordance with District Rules and Regulations and Memorandum of Understanding. As a safety employee, the Fire Chief may respond to emergencies and other incidents assume command of any incident, establish the Incident Command System per District standard operating procedures (SOP), may operate apparatus and perform emergency activities including wildland and structural fire suppression, EMS services, rescue and salvage operations and hazardous materials mitigation (NTFPD, 2013c, p. 2). District operations are organized into Administration and Operations (see Figure 9.2 below). The District employs a total of 58 full time equivalent employees, a 14 FTE increase from 2008 levels (NTFPD, 2013c, p. 16) (personal communication Steve McNamara, 2016). Contract Services North Tahoe Fire Protection District has the exclusive right to serve specific areas of operation within Placer County as the sole 9-1-1 emergency ambulance provider. This Exclusive Operating Area, (EOA) includes the area along the north and west shores of Lake Tahoe from the California / Nevada border to the Placer / El Dorado County line, California State Route 267 extending from the intersection at State Route 28 in Kings Beach to the intersection at Northstar Drive in Truckee, and north on California State Route 89 to Midway Bridge, which includes all of Alpine Meadows. The EOA is secured by contact with the Sierra- Sacramento Valley EMS Agency which is the governing authority for Emergency Medical Services and ambulance transport in Placer County. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-6 North Tahoe and Martis Valley MSR Figure 9.2: North Tahoe FPD Organizational Chart The District also provides prehospital advanced life support and dispatch services to portions of County Service Area 3 in El Dorado County. These contracted services with El Dorado County include ambulance transportation and are provided to the west shore of Lake Tahoe from the Placer / El Dorado County line to Emerald Bay. The District provides contracted fire department management and support services to two separate districts, the Alpine Springs County Water District and the Meeks Bay Fire Protection District. These services include administration and operations, fire prevention, training, fire suppression and rescue, equipment and apparatus maintenance, and emergency medical services. Although Alpine Springs County Water District retains ownership of the fire station on Alpine Meadows Road, NTFPD provides all other fire protection related services to this Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-7 North Tahoe and Martis Valley MSR area. NTFPD’s Meeks Bay service area extends along the west shore of Lake Tahoe from the Placer / El Dorado County line to Emerald Bay. Technology/Management Operations of the NTFPD are fully computerized. NTFPD’s dispatch services are provided by the Grass Valley Emergency Command Center in Grass Valley, CA. The dispatch center uses computer-aided dispatching to ensure optimal resource monitoring and management utilizing the closest resource backed up by station cover assignments in a multi-tiered alarm structure. The District relies on a robust computer network for communication, record keeping, and training. The District currently utilizes an outside contractor for IT/IT services. 9.6: Population and Growth Population It is important for LAFCo to analyze population and growth because it is required to make a determination on population in the MSR and because population relates directly to the capacity and need for service provision. Estimating the current population for a large unincorporated area such as the NTFPD boundaries is a challenge because there is not an existing data set to draw from. Over the past two decades, the population of Placer County as a whole has increased; however, the High Country Places (based on census data) in the Tahoe basin saw declining population during the 1990-2010 time frame with a notable reduction from 2000 to 2010. In the four communities of Dollar Point, Kings Beach, Tahoe City, and Tahoe Vista, there was an 11 percent reduction in permanent population2. This population reduction may be partially attributable to the economic recession that began in 2008. Since the geographic boundary of the North Tahoe Fire Protection District encompasses both the North Tahoe PUD and the Tahoe City PUD, the population estimates for these districts presented in Chapters 10 and 14 of this MSR, respectively, were combined to estimate the population of NTFPD, as shown in Table 9.1, below. 2 Data source for High County Places population: Center for Strategic Economic Research, April 2011 and U.S. Census Bureau, Census 1990, 2000, and 2010. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-8 North Tahoe and Martis Valley MSR Table 9.1: Estimated Permanent Population of North Tahoe Fire Protection District Estimated Estimated Total Peak MSR Permanent Visitor Population Chapter #Housing Units Population Population Served North Tahoe PUD 10 6,519 5,486 11,138 16,623 Tahoe City PUD 14 10,130 8,524 17,307 25,831 North Tahoe Fire PD 9 16,649 14,010 28,445 42,454 Based on the information presented in Chapters 10 and 14 of this MSR, it is estimated that the NTFPD provides fire protection services to 16,649 housing units, 14,010 permanent residents, and 28,445 peak overnight visitors. This does not include day-use only visitors. The population estimates in Table 9.1 above only include the boundary (proper) and do not include the District’s contract areas of Meeks Bay area and Alpine Springs County Water District. Seasonal population peaks can significantly increase fire and emergency medical service demands during summer and winter seasons. The non-resident population is comprised of a variety of users from absentee owners, vacation rentals, camping and day visitors. The Placer County Office of Economic Development, Placer Valley Tourism, Placer County Visitors Bureau and North Lake Tahoe Resort Association commissioned a study in 2009 to document the tourism impact in the county as a whole. Information was also collected for the high country and particularly the Tahoe Basin. While this study does not specifically project the seasonal population peaks associated with tourism and recreational uses it does demonstrate the emphasis on seasonal uses that accommodate the visitors to the area. All of this translates into increased service demands for the NTFPD. The following excerpts are taken from the Travel Industry Assessment: Second Homeowner Trends The Travel Industry Assessment reports that within the High Country Region, a large percentage of the housing units serve as private vacation homes and/or vacation rental properties, most notably for the communities of North Lake Tahoe. As shown in Table 9.2 below, almost three-fourths (72 percent) of all single family homes, condominiums, and time-shares are not owner-occupied. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-9 North Tahoe and Martis Valley MSR Table 9.2: Single-Family Homes, Condominium, and Time-Share Housing Units, 2008 Owner- Absentee Total Percent Location Zip Area Occupied Owner Units Absentee (%) Carnelian Bay 96140 4,381 3,529 7,910 45 Homewood 96141 128 900 1,028 88 Tahoma 96142 41 166 207 80 Kings Beach 96143 419 1,682 2,101 80 Tahoe City 96145 4,105 7,443 11,548 64 Tahoe Vista 96148 161 501 662 76 Combined Total 9,235 14,221 23,456 72 Commercial Lodging Properties Within Placer County, there are a wide variety of lodging accommodation rooms distributed among hotels, motels, bed & breakfasts, rented condominium “villages”, and single-family vacation homes throughout Placer County. Table 9.3, below reflects those larger facilities in the Tahoe Basin near the service area of NTFPD. In addition to these lodging accommodations, property management companies operate vacation rental activity for many single-family vacation homes throughout North Lake Tahoe. Table 9.3: Larger Accommodations (50 rooms and above) in Placer County High Country Resort Units Granlibakken Resort, Tahoe City 165 Tahoe Inn, Brockway 100 Franciscan Lakeside Lodge, Tahoe Vista 64 Tahoe Sands Resort, Tahoe Vista 61 Pepper Tree Inn, Tahoe City 51 In addition to lodging properties and second home rentals there are a variety of other smaller inns and camping accommodations to meet the visitor overnight needs. The 23,456 total housing unit estimate presented in Table 9.2 is much larger than the 16,649 units estimated in Table 9.1. This is because different methods were utilized to estimate the number of housing units. The 2009 Travel Industry Assessment utilized data from a private company called “Data Quick” which was not property referenced in the Assessment. However, it is included in this MSR because it presents a potential upper range of population and housing estimate. In Table 9.1, the number of wastewater connections, based on data from T-TSA, was extrapolated to estimate the number of housing units. The MSR authors believe the data in Table 9.1 is a more accurate estimate of population and housing. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-10 North Tahoe and Martis Valley MSR Projected Growth and Development Land Use Planning Documents Future population growth within the North Tahoe and Martis Valley region is dependent upon zoning and general plan policies and land-use designations in the region. Regional population and zoning/general plans are described in detail in the Introduction (Chapter 3) of this MSR. The Lake Tahoe area is under the jurisdiction of several agencies, including the Tahoe Regional Planning Agency (TRPA) and Placer County and, as well as various State agencies due to the fact that the lake straddles California and Nevada. TRPA was jointly created in 1969 as a bi-state compact by the states of California and Nevada to meet Lake Tahoe basin-wide planning needs, including the development of general plans and other planning documents. TRPA is the agency responsible for regional planning, development and redevelopment oversight, regulatory enforcement, and implementation of environmental protection and restoration of Lake Tahoe and the surrounding region. Areas over which the TRPA has authority include new construction, erosion control, storm water runoff, shore-zone development and protection, road construction, land use, and tree conservation and harvesting. Through its 1987 General Plan, TRPA provides environmental quality standards and ordinances designed to achieve these thresholds. The Code of Ordinances within the 1987 General Plan regulates land use, density, land coverage, excavation, and scenic impacts with the intention of bringing the region into conformance with specified environmental thresholds. In December 2012, the TRPA Governing Board adopted the Lake Tahoe Regional Plan Update. The Regional Plan Update leaves many of the policies of the 1987 Regional Plan in place while providing more autonomy to local governments through adoption of Area Plans. The 2012 Regional Plan identifies goals and policies to guide decision making as it affects the Tahoe Region’s resources and environmental thresholds. Goals and policies are addressed in six major elements including land use, transportation, conservation, recreation, public services and facilities, and implementation. The Regional Plan Update initiated a Region-wide transition to a planning and permitting system where all requirements—TRPA, local, state, and federal—are addressed in coordinated Area Plans. The Placer County General Plan serves as the County’s vision for long-term land use development and conservation. Placer County’s General Plan adopted on August 16, 1994, and updated May 21, 2013, provides a series of goals, policies, standards and implementation programs to guide the land use, development, and environmental quality of the County. The County’s General Plan is generally consistent with TRPA planning documents. While the General Plan was updated, the area plans in the Tahoe Basin were not. Placer County has embarked (2011) on a more compressive planning update for the Tahoe Basin area plans. In an effort to develop more cohesive, user-friendly Planning documents for the Tahoe Community/General Plan Update, the nine Tahoe basin plans will be consolidated into a single over-arching Community Plan policy document with four sub-planning areas each with their own zoning ordinances and design standards specific to each Plan Area. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-11 North Tahoe and Martis Valley MSR A Technical Advisory Committee comprised of the special districts have been meeting on an on-going basis to ensue services can be provided to support the concentrated, more intensive land use pattern anticipated by the TRPA Regional Plan. The Public Review Draft of the Tahoe Basin Community Plan Policy Document should become available in May, 2014. It is expected that the area plan will be ready for adoption in 2015. The Existing Conditions Report indicated that the TRPA Regional Plan Update prioritizes redevelopment and infill of existing Town Centers at higher intensities than exist in other areas of the Region. The overall concept to be employed by the area plans is to concentrate growth in the town center (Tahoe City and Kings Beach) while stabilizing land uses outside of the two town centers. During the next 20 years, much of the projected residential and non- residential development is expected to occur in mixed-use developments within these centers. Chapter 31 of the TRPA Code of Ordinances establishes the maximum multi-family residential density at 15 units per acre. Based on the existing capacity of vacant parcels located throughout the Plan Area, and TRPA policies focused on high-intensity mixed use development within centers (primarily Tahoe City and Kings Beach), there appears to be sufficient land to accommodate the projected 580 new housing units and 900,000 square feet of commercial space within the Plan Area. Potential Future Development The primary land uses within the service area are residential, commercial and recreation. There are some proposed and current commercial projects that would impact the district but with limited zoning changes. Since the 2004 MSR, all new development has consisted of infill small residential projects except for Domus Kings Beach Affordable Housing at 91,000 sq. feet. Homewood Mountain Resort and the Kings Beach downtown core development are in varying stages of progress at this time. The following new major projects are in the planning stages within the District: Homewood 799,000 square feet of mixed occupancy Kings Beach Town Center 95,000 square feet of mixed occupancy Carnelian Bay Vista Village 65,000 square feet of mixed occupancy In general, new development must conform to the Tahoe Basin Regional Planning Agency plan requirements. New development cannot exceed the limitation of the regional plans for the basin. The emphasis on the new Tahoe basin plan being prepared by Placer County will be to conform to the TRPA plan while emphasizing infill in the major communities. Projected Population Numbers Future population growth within the boundaries of NTFPD is only one indicator of future service demand within the District. However, it is important to analyze this indicator since understanding trends in future population growth will help the district assess and plan for fire station locations, emergency services, community risk, and response time. The District Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-12 North Tahoe and Martis Valley MSR estimates its current growth rate to be 1.5 percent. Population projections for the current district boundary are shown in Table 9.4 as follows: Table 9.4: Projected Population Within Existing Boundaries in Year Year 2015 2020 2025 2030 2035 Population 14,010 15,093 16,259 17,516 18,869 The projected population estimates in Table 9.4 above only include the boundary (proper) and do not include the District’s contract areas of Meeks Bay area and Alpine Springs County Water District. Growth can be cyclic, especially in resort communities. In view of the cyclic nature and fluctuations in resort communities, it is reasonable to project an annual population increase over the next twenty years for planning purposes. Disadvantaged Unincorporated Communities By state definition, a disadvantaged unincorporated community (DUC) has a median household income (MHI) less than 80 percent of the statewide average. According to 2010 Census data, California’s MHI is $60,883, which qualifies any community with a MHI less than $48,706 as a DUC. Within the District, the communities of Kings Beach, Carnelian Bay, and neighborhoods within Tahoe City are classified as DUCs (CDWR, 2015). As described in this MSR, the communities do receive water, wastewater, and fire protection services. No public health and safety issues have been identified. For additional information, please refer to Chapter 3, Section 3.6, Disadvantaged Unincorporated Communities, in this MSR. 9.7: Financing This section evaluates the factors affecting the financing of operations and improvements for North Tahoe FPD. Information on District financing is derived from audited financial statements for the Fiscal Year 2013-2014, as well as information provided by District staff. These statements represent the financial statements of the District’s consolidated services, and follow Government Accounting Standards Board (GASB) method of Accrual accounting. The District is required to adopt a final budget prior to October 1st of each year. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2014. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: http://www.ntfire.net/. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-13 North Tahoe and Martis Valley MSR District Revenues and Expenditures Recurring Revenues The District’s largest revenue source is property taxes, which include a voter-approved special tax and property owner-approved fire suppression assessment. After three consecutive years of declining property tax revenues, these revenues increased 3.3 percent in fiscal year 2013-2014. The special tax and benefit assessment have been programmed with a 3 percent increase. Even with the dissolution of California Redevelopment Agencies (RDA) in 2011(AB26 and AB27); significant revenues are still shifted from the District’s property tax revenues with each fiscal year. The District may receive monies each year from the former RDA; however these revenues are inconsistent and unpredictable. The fire suppression assessment began in fiscal year 2008/2009 and is used to obtain, furnish, operate and maintain fire suppression services and apparatus and to pay the cost of firefighting personnel as to assure that there are always enough personnel available to respond to emergencies during peak demand. Contract revenue includes service provision to Alpine Springs County Water District, Meek Bay Fire Protection District, and El Dorado County (NTFPD, 2013b, p. 5). Table 9.5: Revenues and Expenditures Statement of Activities (June 30, 2014) Source Actual Amount ($) Revenues Taxes 7,844,557 Ambulance Services 1,544,968 Service and contract fees 787,480 Grants 263,918 Mitigation fees 73,783 Other 214,075 Interest 38,577 Total Revenues $10,767,358 Expenditures Salaries and wages 4,562,061 Employee benefits 3,125,121 Maintenance and operations 510,424 General and administrative 296,770 Uniforms and supplies 307,956 Utilities 112,081 Professional fees 304,756 Bad Debt 410,650 Depreciation 702,161 Grant Expense -37,971 Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-14 North Tahoe and Martis Valley MSR Capital outlay 1,660 Debt services Principal 0 Interest 281,314 Total Expenditures $10,576,983 Revenues Over (Under) Expenditures $190,375 Source: NTFPD Independent Auditor’s Report, June 30, 2014; page 13. Recurring Expenditures The District’s biggest expense is salaries and benefits. As a result of increased property tax revenues, receipt of a FEMA Staffing for Adequate Fire & Emergency Response (SAFER) grant and the general state of improvement in the economy, the District has programmed a 4.8 percent increase in these expenses (NTFPD, 2013b, p. 4). District Assets and Liabilities On June 30, 2014, the District had $16,078,046 invested in capital assets. There were approximately $400,000 purchases of fixed assets made during the 2014 fiscal year. Fixed asset additions made during the 2014 year included an ambulance remount/replacement, new CAT loader for snow removal, and UTV Ranger with trailer for back country rescues (NTFPD, 2014b, p.6). Table 9.6 Statement of Net Assets (June 30, 2014) 2014 2013 Land $ 73,455 73,455 Buildings and 10,569,918 10,56,526 improvements Equipment 5,407,673 5,010,180 CIP - Total 16,078,016 15,650,161 Source: NTFPD Independent Auditor’s Report, June 30, 2014; page 6. Long Term Liabilities and Debt The majority of the District’s long-term obligations consist of the financing obligation for the new fire station, long-term post-retirement benefits, leases and accrued leave payouts. The debt was obtained from the California Infrastructure and Economic Development Bank to finance the construction of the headquarters fire station. The District is using general funds to retire the debt. The total long-term liability at June 30, 2014 was $11,910,461 (NTFPD, 2014b, p.6). Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-15 North Tahoe and Martis Valley MSR The District provides an annual contribution to the State Education Revenue Augmentation Funds (ERAF). In fiscal year 2013/2014 the contribution was $595,921 and the amount projected for FY 2014/2015 is $610,203 (NTFPD, 2014b). Asset Maintenance and Replacement The District continues its effort to renovate aging infrastructure by relocating the Tahoe City headquarters fire station. This project was designed to meet the District’s needs for the next 50 years, increasing capacity for equipment, sleeping quarters, administrative space and emergency management. Most District fire stations were built in the 1950s and 1960s and are not sufficient facilities for current equipment sizes, seismic safety, and gender inclusive amenities. The special tax and assessment were approved by voters and property owners to help the District in addressing these needs (NTFPD, 2013b, p. 6). Cost Avoidance In addition to standard mutual and automatic aid agreements with all of North Tahoe Fire Protection Districts local-government neighboring agencies, state (CAL FIRE) and federal partners (USFS), the District maintains a five-party boundary drop whereby the closest most appropriate emergency units are always utilized. This type of agreement insures the best possible emergency service delivered by the most efficient means possible and disregards geographic and political boundaries. The NTFPD maintains an MOU with the Tahoe City Public Utilities District (TCPUD) to share fueling facilities. Additionally, in 2007 the District entered into a TCPUD property lease agreement on which the District’s new Fire Station No. 51 is located, as well as administrative offices (NTFPD, 2009). North Tahoe FPD participates in pooled programs for both liability and workers compensation insurance for the purposes of cost reduction. Medical insurance is obtained at a reduced rate through a State program with law enforcement agencies. The District participates in competitive bidding and interagency agreements and operations whenever possible. 9.8: Fire and Emergency Services Service Overview District services include structural and wildland fire prevention and suppression, emergency medical services, ambulance/emergency service, hazardous materials mitigation, and rescue services. The proximity of the North Tahoe FPD to Lake Tahoe and area skiing and hiking resorts has led to the provision of several unique additional services, including support for back country rescues, boating/swimming distresses, avalanche extrications, snowmobile accidents, rope rescues, hillside rescues, and searches. Fire and Emergency Response The District maintains automatic aid and mutual aid agreements with numerous agencies for mutual aid fire suppression and emergency incident management services, including CAL FIRE, Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-16 North Tahoe and Martis Valley MSR USFS, Meeks Bay FPD, Northstar FPD, North Lake Tahoe FPD, Truckee Fire Protection District, and the Lake Tahoe Basin Fire Protection Agencies. As noted above, in addition to standard mutual and automatic aid agreements with all of North Tahoe Fire Protection Districts local-government neighboring agencies, state (CAL FIRE) and federal partners (USFS) the District maintains a five-party boundary drop whereby the closest most appropriate emergency units are always utilized. This type of agreement insures the best possible emergency service delivered by the most efficient means possible and disregards geographic and political boundaries. North Tahoe Fire Protection District has the exclusive right to serve specific areas of operation within Placer County as the sole 9-1-1 emergency ambulance provider. This Exclusive Operating Area, (EOA) includes the area along the north and west shores of Lake Tahoe from the California / Nevada border to the Placer / El Dorado County line, California State Route 267 extending from the intersection at State Route 28 in Kings Beach to the intersection at Northstar Drive in Truckee, and north on California State Route 89 to Midway Bridge which includes all of Alpine Meadows. The EOA is secured by contact with the Sierra- Sacramento Valley EMS Agency which is the governing authority for Emergency Medical Services and ambulance transport in Placer County. The District also provides prehospital advanced life support and dispatch services to portions of County Service Area 3 in El Dorado County. These contracted services with El Dorado County include ambulance transportation and are provided to the west shore of Lake Tahoe from the Placer / El Dorado County line to Emerald Bay. The District provides contracted fire department management and support services to Alpine Springs County Water District. These services include administration and operations, fire prevention, training, fire suppression and rescue, equipment and apparatus maintenance, and emergency medical services within the boundaries of the Alpine Springs County Water District. The District provides contracted Chief Officer and management services to the Meeks Bay Fire Protection District. The Meeks Bay Fire Protection District Service area extends along the west shore of Lake Tahoe from the Placer / El Dorado County line to Emerald Bay. The District maintains an Insurance Services Office (ISO) rating of 4/4Y for its residents (NTFPD, 2013b, p. 7). The ISO is an independent company that collects and evaluates information from communities on their fire suppression capabilities and assigned a Public Protection Classification (PPC) number of 4/4Y to the District. Class 4 applies to properties within 5 miles of a fire station and 1000 feet of a fire hydrant. The remainder of the District is Class 4Y; Class 4Y is a special classification that recognizes a superior level of fire protection services, but no credible water supply (hydrants). Class 4 puts the District amongst the top 25 percent of all California fire agencies (NTFPD, 2014). Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-17 North Tahoe and Martis Valley MSR Land use within the District is diverse with areas of residential, commercial and recreation. To meet the emergency response needs within the District, firefighters are proficient in wildland firefighting, structural firefighting, back country/technical rescue, swift water rescue, hazardous materials mitigation, and emergency medical services. Under the 1994 Placer County General Plan Policy 4.I.2, the County strives to meet the following response time standards for calls for emergency and fire protection services: • 4 minutes in urban areas • 6 minutes in suburban areas • 10 minutes in rural areas Additionally, the 1994 Placer County General Plan Policy 4.I.1 states that the County strives to maintain the following minimum fire protection standards based on ISO PPC program ratings: • ISO PPC Class 4 in urban areas • ISO PPC Class 6 in suburban areas • ISO PPC Class 8 in rural areas. Table 1.7: North Tahoe FPD Emergency Response, 2012 According to the District, staff responded to 1,208 Number of calls for emergency services, the majority of which Emergency Calls were for medical aid (Table 9.7). The NTFPD Fire Suppression 38 indicates 2012 had a 9.03 minute response time for EMS/ALS 1077 Rescue 0 emergency and non-emergency response, which falls Hazardous Materials 93 within the 10 minute standard identified in the 1994 Total 1,208 Placer County General Plan for rural areas. The Calls outside district 605 response time data does not cover IFT, auto/mutual Total 1813 aid, and strike team/overhead. These calls for Source: (NTFPD, 2013c, p. 9) service totaled 605 for 2012. In general, industry standards applicable to the NTFPD are established by the National Fire Protection Agency (NFPA), the Insurance Services Office, Cal OSHA, and District ordinances. All of these agencies, as well as many others, directly and/or indirectly affect the type of services, the quality and development of those services, expansion, reliability, facility design, and construction and environmental issues that the District provides. North Tahoe FPD meets all applicable industry standards. This is achieved through extensive effort, sound fiscal practices, and good training/cross training practices. NTFPD is also involved in education and planning in fire prevention. The District has a defensible space and chipping program that helps educate the public on defensible space in the Tahoe basin. This program helps educate and assists the homeowner in making homes more defendable in the presence of wildland fire. The District also is involved with fire prevention week activities in the local schools. The district utilizes a Community Wildfire Protection Plan to illustrate the needs and reality of wild land fire safety in the district. This plan helps shape operation and planning for both the district and the Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-18 North Tahoe and Martis Valley MSR public: (http://www.trpa.org/wp-content/ uploads/CWPP_CA_Basin.pdf) (NTFPD, 2013c, p. 8). 9.9: Infrastructure Needs and Deficiencies The District operates out of six stations within the District, which are located in Alpine Meadows, Tahoe City, Homewood, Dollar Hill, Carnelian Bay Fire Station 51 in Tahoe City and Kings Beach. The newest station, Station 51, was constructed in 2012, is Gold LEED certified, and provides administrative space as well as equipment and staff housing. There are many separate water purveyors, two public and several private, that provide water service within NTFPD’s service area. Generally, the public water purveyors have master plans that address pipeline replacement, minimum capacity, and adequate distribution. There are also some areas within the District’s service area which are equipped with fire hydrants, but have inadequate fire flow and water storage is limited. North Tahoe FPD maintains a good working relationship with the public water purveyors. In 2013, NTFPD prepared a four-page report on the adequacy of water supply to meet the 2013 California Fire Code fire flow requirements as stated in Section 8105 Fire Flow Requirements for Buildings. This report contained the following recommendation “Local water purveyors shall begin the upgrade process to improve respective storage capacities, flow rates, and emergency back up power to maintain the requirements set forth in the 2013 California Fire Code. Rural firefighting operations, water tenders, and the addition of a fire boat should be considered to support and provide adequate water supply when needed.” Since many of the water purveyors are private water companies, it is not clear whether the water purveyors will implement this recommendation in a timely manner. Approximately 1,062 Hydrants are positioned throughout the District. However, some areas within the District’s service area are not equipped with fire hydrants because they are under the control of private water companies. The NTFPD’s ability to serve these areas is hindered by lack of fire hydrants. It is suggested that NTFPD prepare a map (1-page) to show the geographic distribution of fire hydrants in relation to water service purveyor and disadvantaged communities and submit the map to LAFCo prior to the year 2021 when the next MSR for the District is scheduled. Additionally, numerous other secondary water sources are available for fire suppression activities. The District also has a 2,500-gallon water tender for emergency water supply. The public and private water purveyors in NTFPD have varied capacities and capabilities. Placer Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-19 North Tahoe and Martis Valley MSR County Building Code 15.04.710E requires a minimum or 6-inch lateral water main and California Fire Code requires the availability of 1,500 gallons per minute (gpm) for 2 hours for residential water supply. However, this requirement is not typical for occupancies within NTFPD. Therefore, in numerous areas of the District the water supply does not meet current standards and would be considered insufficient. A recent classification by ISO gave the district a score of 33.10 out of 50 on water supply capability. The District has prepared a capital improvement plan (CIP) entitled the “North Tahoe Fire Protection District Capital Facilities and Mitigation Fee Expenditure Plan”. This 14-page plan was prepared in March 2015 and describes planned facility and equipment upgrades. For the Alpine Springs service area, the County Water District has prepared a 10-page plan that details expected improvements to the fire station facilities, vehicles, and other equipment (ASCWD May 2015). The CIPs for NTFPD and ASCWD are available upon request from each district. Fire Department vehicles are replaced according to replacement schedules and are considered “out of service” if repairs are required. It appears that there are sufficient types and quantities of vehicles under control of the District to maintain service. 9.10: Cost Avoidance and Facilities Sharing The NTFPD and Truckee Fire Protection District provide automatic and mutual aid paramedic ambulance services to one another (NTFPD, 2013a, p. 2). The District maintains an agreement with CAL FIRE for dispatch services from the CAL FIRE Fire/Emergency Command Center in Grass Valley, CA. Automatic aid and/or mutual aid agreements exist for all Lake Tahoe and Eastern Nevada area fire agencies. Further, the California Master mutual aid agreement has the ability to commit NTFPD resources anywhere in the state. NTFPD also has ambulance contracts with Sierra Sacramento EMS Agency and El Dorado County/Meeks Bay. NTFPD also provides all emergency fire and EMS service in the Alpine Meadows area through a contractual agreement (NTFPD, 2013c, p. 6). Possible opportunities for reduced overhead and operational costs include consolidations, annexations, and cooperative agreements that increase efficiencies in service delivery. North Tahoe FPD meets on an as-needed basis with other fire districts to facilitate activities such as joint training and volume discount purchases. The North Tahoe FPD has automatic aid agreements with Meeks Bay FPD and North Lake Tahoe FPD in Nevada. The primary function of both agreements is to augment staffing on the outskirts of the District, between Stations 52 and 53 and the District boundaries. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-20 North Tahoe and Martis Valley MSR North Tahoe FPD currently shares a fueling facility with the Tahoe City PUD. Placer County Sheriff’s Department provides the District’s dispatch services. Costs for operations of the joint Hazardous Materials Response Team are also reduced through sharing with other districts. Also, the District is a member of a joint powers authority in El Dorado County to provide ambulance service, which positively affects the District’s revenue. Additionally, fees that are billed for ambulance services are reduced because the use of the service is shared by several fire departments. Annexation of the Alpine Meadows Fire Department has the potential to increase service and cost efficiencies among those receiving services. Likewise, annexation of Meeks Bay Fire District, in neighboring El Dorado County, could also provide the same benefits. The provision of ambulance services along the Highway 267 corridor is also justification for consideration of extension of the District’s Sphere of Influence to include this area. The NTFPD has the ability to serve additional populations, but this would require new developments to pay fees in order for the District to purchase additional equipment required to serve new constituents. Most development in the District’s service area is infill because there are a limited number of buildable lots left in the District. Adopted fire-safe and fire- prevention ordinances require that new development be constructed with fire sprinklers, fire resistant roofing, and other components that mitigate impacts related to growth in the area and increased costs related to that growth. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-21 North Tahoe and Martis Valley MSR 9.11 Determinations Population and Growth 1. The permanent population of the North Tahoe Fire Protection District (NTFPD) was 14,010 persons as of 2015. 2. Demand for services within the District can fluctuate greatly based on second home occupancy, tourism and seasonal activities. The peak number of overnight visitors is estimated to be approximately 28,445 persons. 3. There were a number of developments proposed (as of 2015) within the District’s SOI and District Contract Areas that may affect service delivery, including: Homewood, Kings Beach Town Center, and Carnelian Bay Vista Village. 4. Based on proposed new residential and commercial development, the permanent population growth rate within the District is expected to be approximately 1.5 percent. Disadvantaged Unincorporated Communities 5. Within the District, the communities of Kings Beach, Carnelian Bay, and neighborhoods within Tahoe City meet the State’s standard for DUCs of 80 percent of the State median family income. These areas do receive sufficient water, wastewater, and fire protection services as documented in this MSR. No public health and safety issues have been identified within the DUCs. 6. Grant funding is available for disadvantaged unincorporated communities. Please see Chapter 3 for a general list of potential grants. Present and Planned Capacity of Public Facilities 7. The NTFPD provides fire and emergency services within its boundaries, as well as the Meeks Bay area and Alpine Springs County Water District. 8. With the completion of the District’s new station in Tahoe City (Station No. 51), the District has sufficient facilities for administration, equipment, and staff to serve existing customers. 9. Aging stations and equipment (aside from the new station in Tahoe City) have not been upgraded in recent years due to the economic conditions affecting special districts statewide, particularly loss of property tax revenue. 10. Some areas within the District’s service area are not equipped with fire hydrants because the areas are served by private water companies. It is suggested that NTFPD prepare a map (1-page) showing the geographic distribution of fire hydrants in relation to water service purveyor and disadvantaged communities and share this with LAFCo prior to the year 2023 when the next MSR for the District is scheduled. 11. The District utilizes two capital improvement plans (CIPs) for facility and equipment upgrades, one for NTFPD and the second for ASCWD. The CIPs for NTFPD and ASCWD are available upon request from each district. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-22 North Tahoe and Martis Valley MSR 12. The District maintains its ISO rating of 4/4Y, indicating a high level of excellent service within service areas. 13. NTFPD facilities and infrastructure are currently sufficient to allow for the efficient provision of services. Analysis for pending development projects will assess the need for additional facility and infrastructure that may be required to support added demand. 14. NTFPD has historically met or exceeded all applicable industry standards related to the provision of fire and emergency services, and meets the Placer County General Plan response time standard of less than 10 minutes. Financial Ability of District to Provide Services 15. The District struggled with the loss of property tax revenue during the 2008-2009 recession. However, the financial position of the District indicates that it will be able to meet its financial obligations as they become due and that it will continue to be able to provide service obligations to its constituencies. Status and Opportunities for Shared Facilities 16. NTFPD collaborates with other agencies for automatic and mutual aid emergency services, including regional emergency planning efforts. 17. Through service contracts with Alpine Springs County Water District and Meek’s Bay Fire Protection District, NTFPD provides fire protection services including administration and operations, fire prevention, training, fire suppression and rescue, equipment and apparatus maintenance, and emergency medical services to the these areas. Inclusion of these two service areas within the NTFPD’s SOI and possible future annexation for the purpose of providing fire services could alleviate some duplication in costs through sharing of administrative staff, repair facilities, and various other items. Accountability for Community Service Needs, Including Governmental Structure and Operation Efficiencies. 18. An elected five-member Board of Directors oversees the management of the District’s resources. NTFPD meets its statutory financial reporting requirements that ensure its operations are conducted in an open and transparent manner. NTFPD meets its fiscal accountability requirement to its customers through budgetary and financial reporting using its website as a communication channel. The District provides public notice of meetings, and posts agendas and minutes online. 19. A Fire Chief oversees the District under the direction of the elected Board of Directors. The Board and management work together in the identification of goals and issues and assignment of staff as appropriate for each type of service provided. The District has adopted policies to guide District operations. NTFPD uses annual budgets to plan for and carry out operations and capital programs. Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-23 North Tahoe and Martis Valley MSR 20. The NTFPD has an extensive mutual aid network with numerous federal, state, and local emergency service providers in the region. 21. District staff has indicated that the District’s SOI is not adequate for projected future needs with potential development in the Brockway Summit, Alpine Meadows (ASCWD), Homewood Mountain Resort, and Meek’s Bay. It is recommended that Placer LAFCo considering reviewing the SOI for this District. 9.12: Bibliography Alpine Springs County Water District (ASCWD). May 2015. Capital Facilities and Fire Mitigation Fee Expenditure Plan. 10-pages CDWR. (2014). DWR Disadvataged Community Mappying Tool. Retrieved December 27, 2014, from DWR IRWM Resources: http://www.water.ca.gov/ irwm/grants/resourceslinks.cfm. California State Dept. of Finance; State of California Employment Development Department Wage and Salary survey data for Placer County, 2008 Benchmark; Willdan Financial Services. North Tahoe Fire Protection District (NTFPD). (2009, December 18). Memorandum of Understanding Regarding Fire Station 51 Cooperative Use of Facilities. North Tahoe Fire Protection District (NTFPD). (2012, May 23). Ordinance No. 01-2012. North Tahoe Fire Protection District (NTFPD). (2013a, May). Boundary Drop Area Plan and Mutual Aid. North Tahoe Fire Protection District (NTFPD). (2013b, June 30). Independent Auditor's Report. Retrieved December 26, 2014, from NTFPD: http://www.ntfire.net/Images/Images/fye%202013%20audit%20rpt.pdf. North Tahoe Fire Protection District (NTFPD). (2013c, July 31). Placer LAFCO Request for Information, District Response. CA. North Tahoe Fire Protection District (NTFPD). (2014). NTFPD Home. Retrieved December 27, 2014, from NTFPD: http://www.ntfire.net/. North Tahoe Fire Protection District. March 2015. Capital Facilities and Mitigation Fee Expenditure Plan. 14-pages. North Tahoe Fire Prevention Bureau. June 23, 2015. Staff Report from Firefighter Gilley to Chief Alameda. Providing for the adequate water supply to meet the 2013 California Fire Code fire flow requirements as stated in Section 8105 Fire Flow Requirements for Buildings. 4-pages. Placer County Economic and Demographic profile, Center for Strategic Economic Research, April, 2011 (http://www.placer.ca.gov/~/media/ceo/ecd/documents/2011 %20Placer%20County%20Economic%20%20%20Demographic%20Profile.ashx.) Placer County Office of Economic Development. (2011). Placer County Economic and Demographic Profile. Retrieved October 22, 2014, from Placer County: Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-24 North Tahoe and Martis Valley MSR http://www.placer.ca.gov/~/media/ceo/ecd/documents/2011%20Placer%20County%2 0Economic%20%20%20Demographic%20Profile.ashx. Placer County Office of Economic Development, Placer Valley Tourism, Placer County Visitors Bureau, and North Lake Tahoe Resort Association. March, 2009. Placer County Travel Industry Assessment and Detailed Economic Impact Estimates, 2002-2008. Dean Runyan Associates. 69-pages. Available on-line at: <http://www.placer.ca.gov/departments/CEO/Econdev> (note, click on “quick-links” at the bottom, left). Draft Final MSR, August 2018 Chapter 9, North Tahoe FPD 9-25 North Tahoe and Martis Valley MSR C 10 HAPTER North Tahoe Public Utility District Photo courtesy of http://northtahoeparks.com/ This Municipal Service Review (MSR) describes the North Tahoe Public Utility District. This District was originally formed in 1948 and currently provides water treatment and distribution, wastewater collection, maintenance and operation of recreational and conference facilities. Table of Contents 10.1 Agency Profile .....................................................................................10-2 10.2 Overview of District ..............................................................................10-2 10.3: Formation and Boundary ........................................................................10-3 10.4: Accountability and Governance ...............................................................10-5 10.5: Management Efficiencies and Staffing ........................................................10-6 10.6: Population & Growth ............................................................................10-8 10.7: Disadvantaged Unincorporated Communities .............................................. 10-14 10.8: Water Service .................................................................................. 10-15 10.9: Wastewater Service ........................................................................... 10-25 10.10: Recreation and Parks ......................................................................... 10-31 10.11: Financing ....................................................................................... 10-37 10.12: Challenges ..................................................................................... 10-45 10.13: Determinations ................................................................................ 10-46 10.14: References ..................................................................................... 10-50 Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-1 North Tahoe and Martis Valley MSR 10.1 AGENCY PROFILE North Tahoe Public Utility District Type of District: Public Utility District Enabling Legislation: Public Utility District Act: Public Utilities Code §§ 15501-18055 Functions/Services: Water treatment and distribution, wastewater collection, maintenance and operation of recresueational and conference facilities. Main Office: 875 National Avenue, Tahoe Vista, CA 96148 Mailing Address: P.O. Box 139, Tahoe Vista, CA 96148 Phone No.: (530) 546-4212 Fax No.: (530) 546-2652 Web Site: www.ntpud.org and http://northtahoeparks.com/ General Manager/CEO: vacant Board Secretary: Marianne Potts Email: mpotts@ntpud.org Governing Body: Elected Board of Directors – 4-year terms Name Role Term Ends S. Lane Lewis Director 12/31/2018 Sarah Coolidge Director 12/31/2020 Sue Daniels Vice President 12/31/2018 Tim Farrell President 12/31/2020 Phil Thompson Director 12/31/2020 Meeting Schedule: Second Tuesday of each month, 2:00 p.m. Meeting Location: North Tahoe Event Center, 8318 North Lake Blvd., Kings Beach, CA 96143 Date of Formation: 1948 Principal County: Placer County 10.2 OVERVIEW OF DISTRICT The North Tahoe Public Utility District (NTPUD/District) provides water treatment and distribution, sewer collection, and recreational and conference facilities to customers within its service area. This Municipal Service Review (MSR) is the second for the District. TYPE AND EXTENT OF SERVICES The District was initially formed in 1948 to provide wastewater services. Responsibility for water service was added in November 1967 with the initial acquisition of the Brockway Water Company and since then several other small water companies have been acquired. The Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-2 North Tahoe and Martis Valley MSR Recreation and Parks Department was added in 1968. Today, the District provides wastewater, water, recreation, services to residents of the north shore of Lake Tahoe. Historically, the District did fund street lighting via payment of the electricity bill for 96 street lights serving residential and commercial neighborhoods within the District boundary. In October of 2015, the District decided to no longer subsidize this unfunded provision of service. Placer County and Caltrans have agreed to assume responsibility for most of the street lights. The District currently serves 3,828 metered water connections and 5,524 sewer connections (with 5,524 actual customers). The District’s operating budget for FY 2014 is $10,141,076. In addition to providing sewer, water, and recreation services, the District also performs all maintenance and repair activities, maintains its State permits, and provides for operational utility needs. NTPUD is also part Community Facilities District (CFD) 94-1, the Mello-Roos district that funds the North Tahoe Recreation and Parks Department, and 5,456 parcels contribute to CFD 94-1. The District manages and maintains most of the public beaches in the service areas, as well as the North Tahoe Regional Park in Tahoe Vista and the North Tahoe Event Center in Kings Beach. LOCATION AND SIZE The District is located in the unincorporated eastern area of Placer County, adjacent to the Tahoe City Public Utility District along the western boundary, US Forest Service land along the northern boundary, the State of Nevada along the eastern boundary, and Lake Tahoe on the southern boundary. The Lake is flanked by the Carson Range to the west and the Sierra Nevada range to the east, and is drained by the Truckee River. The service area for sewer and recreation services encompasses approximately 6.5 square miles (4,160 acres), whereas the service area for water services encompasses only 3.4 square miles (2,186 acres) since some areas of the District are served by the Agate and Fulton Water Companies. The District boundaries extend from the Nevada State line in Crystal Bay in the east to Carnelian Bay in the west. The service area includes the communities of Brockway, Kings Beach, Tahoe Vista, Agate Bay, and Carnelian Bay. See Figure 10.1 for a map of the service boundaries and significant District features. 10.3: FORMATION AND BOUNDARY NTPUD is a public agency that was formed on July 23, 1948, by a Certificate of Incorporation approved by the Secretary of State under the provisions of Public Utility District Act §§ 15501- 18055. The District was originally formed to provide sewer services to the residents of the Lake Tahoe’s north shore. In November 1967, water services were added to the District’s responsibilities, and in 1968 the District added the Recreation and Parks Department. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-3 267 S ta te L in e Tahoe Vista Kings Beach 28 Lake Tahoe North Tahoe Public Utility District North Tahoe PUD Sphere of Influence Dollar Point Tahoe Regional Planning Agency Boundary Towns/Communities County Boundary Roads 0 0.5 1 Miles District Boundary from Placer County GIS, SOI from Placer County LAFCo Figure 10-1 NORTH TAHOE PUBLIC UTILITY DISTRICT North Tahoe and Martis Valley MSR BOUNDARY HISTORY LAFCo files indicate there have been no changes in the District’s boundary since the 2004 MSR was published. SPHERE OF INFLUENCE The District’s Sphere of Influence (SOI) encompasses approximately 6,500 acres. Given the size of the SOI compared to the District’s boundary, it seems that the SOI is adequate for projected future needs. EXTRA-TERRITORIAL SERVICES The District does not provide any services outside its boundaries. However, it is recognized that the recreation facilities the District provides are utilized by a diversity of residents and visitors and a percentage originate from areas outside the district boundaries. AREAS OF INTEREST No other areas outside the District boundaries have been identified that require services from the District. 10.4: ACCOUNTABILITY AND GOVERNANCE The District is governed by a five-member elected Board of Directors, which oversees the Chief Executive Office (CEO) and administrative staff. The CEO is also the General Manager and provides daily oversight and management of staff and resources. Regularly scheduled meetings are held on the second Tuesday of the month at 2:00 p.m. Meetings are located at the North Tahoe Event Center, 8318 North Lake Blvd., Kings Beach, CA 96143. The current Board members are as follows: Name Role Date Term Ends S. Lane Lewis Director 12/31/2018 Sarah Coolidge Director 12/31/2020 Sue Daniels Vice President 12/31/2018 Tim Farrell President 12/31/2020 Phil Thompson Director 12/31/2020 In accordance with Government Code §54954, all meetings are publicly posted on the District’s website, at the District office, and at the local post office a minimum of three days prior to regular Board meetings. Agendas for special meetings are posted in the same locations at least 24 hours prior to the special meeting. Agendas are posted on the District’s website prior to regular meetings, and meeting minutes are posted after meetings. For all meetings considered out of the ordinary, including those on proposed projects that may result in rate increases or Proposition 218 issues, an extra notification step is taken. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-5 North Tahoe and Martis Valley MSR The agenda for each Board meeting includes a public comment period during which customers may comment or complain. Contact information for the District is posted on the District’s website, and customers may submit comments or complaints via email or to the District’s mailing address. Budgets are adopted in public meetings and are available on the District’s website for FY 2008-2009 through FY 2013-2014. The last independent auditor’s report addressed fiscal years ending June 30, 2013 and June 30, 2014. The audit found that there were no issues of noncompliance with financial regulations and that the District’s financial statements were in conformity with generally accepted accounting practices. 10.5: MANAGEMENT EFFICIENCIES AND STAFFING Day-to-day operations are managed by the full-time General Manager (GM)/CEO. The GM/CEO is appointed by and serves the Board of Directors. The GM/CEO is responsible to and receives policy direction from the Board of Directors. The GM/CEO is responsible for the enforcement of all District rules and regulations, ordinances, and contracts authorized by the Board of Directors. This position also oversees and directs the development of the $10.5 million annual operating budget and the $10 million Capital Improvement Program. He is also responsible for the 44 full-time employees and all part-time employees. The GM/CEO oversees all the functional departments of the District, including the Board of Directors’ committees and commissions; administrative departments such as human resources and payroll; the utility operations department, which maintains the water, sewer, and fleet operations; the planning and engineering department; and the parks and facilities department. An organizational chart is provided in Figure 10.2. In the past, NTPUD studied the option to merge with the TCPUD and this issue continues to be raised periodically1. There is not an immediate need for these two independent districts to merge; however, they may wish to reconsider the issue when the next MSR is prepared by LAFCO. Potential economic and social costs and benefits of such a merger would need to be carefully studied. NTPUD partners with a number of government, non-profit, and private organizations. Please section on page 10-22 of this MSR entitled “Opportunities to Share Water Facilities” (below) for more information. 1 Data source: NTPUD Board meeting notes, March 2015. Available on-line at: http://ntpud.org/sites/default/files/board/packets/20150508164437206.pdf Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-6 CURRENT ORGANIZATIONAL CHART General Manager/CEO 2016/2017 BUDGET 0 Management ---------- -------------, D Union I 0 Temporary I I I I I I I I ~------- U:\BUDGET\2016 2017 Budget\2017 Budget Worksheet ver 04 for 20160614 Adopted Final Summary A Sheets.xlsmOrg Chart 8/2/2016 28 North Tahoe and Martis Valley MSR NTPUD Vision STRATEGIC PLAN NTPUD provides the highest NTPUD adopted a strategic plan in January 2016 and it is quality water and sewer available on the District’s website. A strategic plan is very systems, efficiently and helpful to local government agencies such as NTPUD economically managing for because it facilitates alignment of vision, mission, future demands, and we objectives and actions across departments. When written in a public document, the strategic plan aids in provide outstanding transparency and management efficiency because it recreational facilities and contributes towards common expectation of business services that are responsive to operations. NTPUD’s 2016-2018 Strategic Plan includes the our community, while following Strategic Objectives: fostering positive long-term relationships with employees, 1. Provide quality recreation and event facilities and customers, suppliers and activities. 2. Maintain highest level of safe, sustainable sewer partner agencies. and water service. 3. Provide exceptional District Governance. 4. Empower trained professional staff. 5. Ensure financial sustainability. 6. Maintain operational excellence 10.6: POPULATION & GROWTH The District encompasses an unincorporated area that includes Kings Beach on the eastern end and Dollar Point on the western end. Kings Beach, where the District office is located, contains commercial and residential uses, including both seasonal and perennial residents. The District serves 5,524 sewer connections and 3,828 water connections. Additionally, recreation services are supported by 5,456 Parcels which contribute to CFD 94-1. EXISTING POPULATION Lake Tahoe experiences huge swings in population throughout the year. Generally, the population swells significantly during the popular summer and winter tourist months. According to the Existing Conditions report for the Placer County Tahoe Basin Policy Document, prepared by Dyett and Bathia, (September 2013), the Plan Area has experienced a 17 percent decline in its permanent resident population between 2000 and 2010, while second-home demand has intensified. The NTPUD service area includes the communities of Brockway, Kings Beach, Tahoe Vista, Agate Bay, and Carnelian Bay. The US Census does not provide specific demographic information for the Brockway and Agate Bay communities, but does designate Kings Beach, Tahoe Vista, and Carnelian Bay as census-designated places (CDP). The 2010 US Census reported a population of 3,796 in Kings Beach, a decrease from the population of 4,037 during Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-8 North Tahoe and Martis Valley MSR the 2000 Census. In 2010 the population density was 1,103.7 people per square mile in the 3.4-square-mile area. The average household size was 2.73 and there were 1,362 households and 2,372 housing units, of which 40.5 percent were owner-occupied and 59.5 percent were renter-occupied. Like Kings Beach, Tahoe Vista is a Census Designated Place (CDP), and demographic statistics are available within the discrete boundaries of the community. The 2010 US Census reported that the population was 1,433, down from 1,668 during the 2000 Census. Tahoe Vista has an area of 2.7 square miles and a population density of 530 people per square mile. Average household size was reported to be 2.28, and there were 628 households. There were 1,446 housing units at an average density of 532.5 units per square mile, of which 63.4 percent were owner-occupied and 36.6 percent were renter-occupied. Carnelian Bay had a population of 524 and an area of 1.3 square miles at the 2010 Census, with a population density of 400 people per square mile. Average household size was 2.05, and 256 households were reported. Housing units totaled 947, of which 66.8 percent were owner-occupied and 33.2 were occupied by renters. To refine and verify the data used for this MSR analysis, service connection data are analyzed. The water and wastewater connections included in Table 10.1 reflect the demand presented by permanent residents, seasonal uses and/or demands as well as visitor uses. Table 10.1: NTPUD Service Connections Service #Customers in 2013-2014 Water 3,828 Wastewater 5,524 Recreation 5,456 (# of contributing parcels) As shown in the above table, NTPUD services significantly more wastewater connections, as compared to water service connections. This is because other private water companies provide water service to customers within NTPUD’s boundaries. Therefore, the number of wastewater connections is a better indicator of population. For purposes of this MSR analysis, it is assumed that the wastewater connections are distributed among residential, commercial, visitor serving motels, and government/institutional uses as shown in Table 10.2 below. Table 10.2: Estimated Distribution of 5,524 Wastewater Connections Estimated # of Estimated Percentage wastewater connections Single Family Residential 82% 4,530 Multi-family Residential 12% 663 Commercial 4% 221 Visitor Serving Motels etc. 1.5% 83 Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-9 North Tahoe and Martis Valley MSR It is noted that one wastewater connection to a visitor serving motel or inn can serve many visitor rooms. Additionally, each “connection” to a multi-family structure may serve many housing units. For example, a wastewater connection to a triplex would serve three families. For purposes of this MSR analysis, it is assumed that each connection to a multi-family structure serves an average of three housing units. The number of multi-family units within the PUD’s boundaries is estimated to be 1,989 units. The total number of housing units is estimated to be 6,519 units. Table 10.3: Estimated Existing Population in NTPUD Visitor Housing Persons per Total Permanent Overnight Units Household Population Population Population 6,519 2.55 16,623 5,486 11,138 Based on Table 10.3, above, the existing population of NTPUD is estimated to be 5,486 permanent residents and 11,138 peak overnight visitors. The permanent resident population represents a small part (33 percent) of the total population (visitors and vacationers) that the District serves. Day-use only visitors are not included in this estimate. PROJECTED GROWTH AND DEVELOPMENT The Lake Tahoe area is under the jurisdiction of several agencies, including the Tahoe Regional Planning Agency (TRPA) and Placer County and, as well as various State agencies due to the fact that the Lake straddles California and Nevada. TRPA was jointly created in 1969 as a bi-state compact by the states of California and Nevada in the late 1960s to meet Lake Tahoe basin-wide planning needs, including the development of general plans and other planning documents. TRPA is the agency responsible for regional planning, development and redevelopment oversight, regulatory enforcement, and implementation of environmental protection and restoration of Lake Tahoe and the surrounding region. Areas over which the TRPA has authority include new construction, erosion control, storm water runoff, shore-zone development and protection, road construction, land use, and tree conservation and harvesting. Through its 1987 General Plan, TRPA provides environmental quality standards and ordinances designed to achieve these thresholds. The Code of Ordinances within the 1987 General Plan regulates land use, density, land coverage, excavation, and scenic impacts with the intention of bringing the region into conformance with specified environmental thresholds. In December 2012, the TRPA Governing Board adopted the Lake Tahoe Regional Plan Update. The Regional Plan Update leaves many of the policies of the 1987 Regional Plan in place while providing more autonomy to local governments through adoption of Area Plans. The 2012 Regional Plan identifies goals and policies to guide decision making as it affects the Tahoe Region’s resources and environmental thresholds. Goals and policies are addressed in six major elements including land use, transportation, conservation, recreation, public services Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-10 North Tahoe and Martis Valley MSR and facilities, and implementation. The Regional Plan Update initiated a Region-wide transition to a planning and permitting system where all requirements—TRPA, local, state, and federal—are addressed in coordinated Area Plans. The Placer County General Plan serves as the County’s vision for long-term land use development and conservation. Placer County’s General Plan adopted on August 16, 1994, and updated May 21, 2013, provides a series of goals, policies, standards and implementation programs to guide the land use, development, and environmental quality of the County. The County’s General Plan is generally consistent with TRPA planning documents. While the General Plan was updated, the area plans in the Tahoe Basin were not. Placer County has embarked (2011) on a more compressive planning update for the Tahoe basin area plans. In an effort to develop more cohesive, user-friendly Planning documents for the Tahoe Community/General Plan Update, the nine Tahoe basin plans will be consolidated into a single over-arching Community Plan policy document with four sub-planning areas each with their own zoning ordinances and design standards specific to each Plan Area. The Public Review Draft Tahoe Basin Area Plan and an updated Notice of Preparation became available for a 60 day public comment period via Placer County in June 2015. A revised Draft Tahoe Basin Area Plan was published in April 2016. A Draft EIR/EIS per CEQA is expected to be published in the Summer 2016. Thereafter, the next steps include refining the Plan, publishing a final EIR/EIS, review and adoption of the Plan and EIR/EIS by the Placer County Board of Supervisors, and a TRPA Submittal and Conformance Review2. The TRPA Regional Plan Update prioritizes redevelopment and infill of existing Town Centers at higher intensities than exist in other areas of the Region. During the next 20 years, much of the projected residential and non-residential development is expected to occur in mixed-use developments within these centers. Chapter 31 of the TRPA Code of Ordinances establishes the maximum multi-family residential density at 15 units per acre. Additionally, compliant affordable housing projects are provided a 25 percent density bonus; 100 percent within the Kings Beach Commercial Community Plan Area. Based on the existing capacity of vacant parcels located throughout the Plan Area, and TRPA policies focused on high-intensity mixed use development within centers (primarily Tahoe City and Kings Beach), there appears to be sufficient land to accommodate the projected 580 new housing units and 900,000 square feet of commercial space within the Plan Area. However, the housing unit allocation from TRPA through the year 2032 is 506 units. The North Tahoe PUD District area falls into two of the new North Tahoe sub-planning areas. The two sub-planning areas include the North Tahoe East and the North Tahoe West sub- planning areas. The overall concept to be employed by the area plans is to concentrate growth in the town center (Tahoe City and Kings Beach) within these two sub area plans while stabilizing land uses outside of the two town centers. The following tables summarize 2 For more details see County website at: http://www.placer.ca.gov/departments/ communitydevelopment/planning/tahoebasinareaplan Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-11 North Tahoe and Martis Valley MSR recently approved residential (Table 10.4) and commercial (Table 10.5) projects in NTPUD service area. Table 10.4: Current Residential Development Projects in NTPUD Total Density Name / Site Area Single Lots or Multifamily (du/gross Status Description (acres) Family Units acre) 6731 Tahoe 5.5 25 3 22 5 Approved Timeshare Tahoe Vista Grey Lane 0.8 16 16 20 Approved Townhomes Tahoe Vista Tahoe Vista 6.2 55 55 9 Approved Partners LLC (Sandy Beach) Tahoe Vista Kings Beach #1 0.8 18 18 23 Approved Kings Beach Kings Beach #2 0.3 5 5 17 Approved Kings Beach Kings Beach #3 0.4 12 12 28 Kings Beach Approved Kings Beach #4 1.5 40 40 27 Kings Beach Approved Total 15.5 181 19 152 9.8 Source: Placer County, 2013. Table 10.5: Current Commercial Development Projects Site Area Retail/Commercial FAR Name / Description (acres) (SF) Status Kings Beach Gas 0.43 2,640 0.1 Approved Station Olson Construction 0.65 6,376 0.2 Approved Headquarters Kings Beach Total 1.08 9,016 0.3 TRPA uses a rating program called Individual Parcel Evaluation System (IPES) to determine which vacant sites are buildable in the Tahoe Basin. The IPES system evaluates vacant sites for land capability and scored based on eight elements under TRPA’s. Any site that receives a core greater than 726 is considered to be buildable based on the remaining in land use density and intensity factors within the governing land use plans. The majority of parcels—69 Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-12 North Tahoe and Martis Valley MSR percent—are located north of the SR 28 and SR 89 intersection in the communities of Carnelian Bay, Tahoe Vista and Kings Beach. The largest parcels are located in Carnelian Bay, while the smallest parcels are primarily located in Kings Beach. The vacant land development potential within the town centers within the NTPUD service area is provided in Table 10.6 below. Other than increasing development density to create a more compact urban form through the community plan update, overall development potential in the basin will not increase significantly. Table 10.6: Vacant Parcels with IPES >726 Community Parcels Acres Carnelian Bay 84 57.7 Tahoe Vista 100 34.8 Kings Beach 89 18.5 Dollar Point 26 8.9 Total 299 77.9 Source: Placer County, 2013; TRPA, 2013. Table 10.7 summarizes the status of existing development rights within the Region. The majority of development in the Tahoe Region occurred prior to adoption of the 1987 Regional Plan. Since 1987 new development has been limited to about 14 percent of total housing units, 6 percent of total commercial floor area, and 0.5 percent of total tourist accommodation units. Table 10.7: Status of Existing Development Rights, 2011 Development Under Estimated Pre-1986 the 1987 Regional Existing Development Plan Development Residential Units 40,865 6,527 47,392 Commercial Floor Estimated at 416,421 6,416,421 Area 6,000,000 Tourist 12,341 58 12,399 Accommodation Units Source: Ascent Environmental, TRPA, 2011. As noted in the District’s Urban Water Management Plan (July 6, 2013), it can be safely assumed that development under the State of California’s Lake Tahoe Basin Water Quality Management Plan (under section 208 of the federal Clean Water Act, 33 USC 466 et seq.) is the maximum which will occur over the next 20-year period. Future improvements to the District’s sources, supply, transmission and distribution and storage facilities are based on the development scenario. The maximum additional development within the District boundaries is 1,002 dwelling units. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-13 North Tahoe and Martis Valley MSR Population estimates within the District’s service area were initially estimated using US Census Bureau data. The District’s service area boundary was overlaid on the North Tahoe Census Block Map to identify the Census Tracts within the District’s service area. Four Census Tracts partially fall within the District’s service area, including Census Tracts 201.04, 201.05, 201.06 and 201.07. Even though these four Census Tract areas are greater in size than the NTPUD service area, they provide actual data for 1990, 2000, and 2010. This Census Tract data was used to calculate the 20-year compound annual growth rate 0.74 percent. The 20- year compound annual growth rate of 0.74 percent was used to project the District’s population base for the next 20 years, over 5-year increments, as shown in the following table. Table 10.8: Projected Permanent Population to 2030 within NTPUD Service Area1 Year 2010 2015 2020 2025 2030 2035 Census Based Population Estimate 6,125 6,355 6,594 6,841 7,098 7,365 MSR Service Connection Based n/a 5,486 5,692 5,906 6,128 6,358 Population 1 compound year annual growth rate based on historical 20 year Census trend 2 2010 Population Data in Table 10.8 is from http://www.census.gov/2010census/popmap/ 10.7: DISADVANTAGED UNINCORPORATED COMMUNITIES DISADVANTAGED UNINCORPORATED COMMUNITIES By state definition, a disadvantaged unincorporated community (DUC) has a median household income (MHI) less than 80 percent of the statewide average. According to 2010 Census data, California’s MHI is $60,883, which qualifies any community with a MHI less than $48,706 as a DUC. Within the District, the community of Kings Beach is classified as DUCs because the median income for this area is $41,323. As described in this MSR, Kings Beach does receive water, wastewater, and fire protection services. No public health and safety issues have been identified. Please see the report from Community Fact Finder for the Kings Beach area shown in Figure 10.3. For additional information, please refer to Chapter 3, Section 3.6, Disadvantaged Unincorporated Communities, in this MSR. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-14 North Tahoe and Martis Valley MSR 10.8: WATER SERVICE WATER SERVICE OVERVIEW The District’s watershed is fed by several streams that begin in the upper alpine area and empty into Lake Tahoe. The entire watershed is within California’s jurisdiction, excluding Lake Tahoe, which shares boundaries with California and Nevada. The District relies mostly on surface water for its water supply; although it does have two wells sourced from groundwater. NTPUD supplies potable water to approximately 5,300 people via approximately 3,828 metered connections and three separate and independent water systems: Dollar Cove, Carnelian Bay, and the Tahoe Main system. The District serves the communities of Kings Beach, Tahoe Vista, Brockway Vista, Carnelian Bay, Cedar Flat, and Agate Bay. The service area ranges from the Nevada State line on the east to Dollar Point on the west. Highway 267 bisects the area. The service area is approximately 3.4 square miles. The District’s 3,828 metered water connections range from single-family dwellings to business and tourism-based establishments. Separate irrigation and fire systems are also served. Of the water service accounts, 221 were commercial establishments as of December 2010, while approximately 40 percent of the 221 were commercial tourist services for resorts and motels. The remaining 60 percent (of the 221) were general commercial accounts such as shops, local restaurants, and laundries. The majority of the commercial establishments are located in the lower zone of the Kings Beach service area, with 23 in the Carnelian Bay service area and three in Dollar Cove. See Figure 10.4 for the District’s water system map. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-15 North Tahoe and Martis Valley MSR WATER SUPPLY/DEMAND Supply and demand for water districts are typically impacted by development occurring within the District that could result in an increase in the demand for these services and the need for additional infrastructure. Due to the large size of the Lake, supply of water in Lake Tahoe is typically not impacted by drought as other surface waters can be. The maximum development projected within NTPUD is 1,002 new units at buildout. In 1990 the Truckee-Carson-Pyramid Lake Water Rights Settlement Act (“Settlement Act”) (Public Law 101-618) required that the total annual gross diversions within the Lake Tahoe basin, including groundwater, could not exceed 34,000 acre-feet per year. Of this total, 23,000 acre-feet per year were allocated to the State of California and 11,000 acre-feet per year were allocated to the State of Nevada (Section 204(b)(1)). There was no diversion amount specifically allocated to the District’s service area. In 1999 Brown and Caldwell Engineers recommended an allocation of 3,920 acre-feet per year to the District's service area, but that figure was subject to review and reconsideration. Section 205(a) of the Settlement Act required the Secretary of the Interior to negotiate an Operating Agreement (the “Truckee River Operating Agreement” or “TROA”). The TROA was signed on September 6, 2008 and passed major legal milestones in November 2015. TROA increases drought protection for all Truckee River water users by facilitating the use of credit water storage and cooperative exchanges of this credit water between basin reservoirs to maintain the most beneficial flows and reservoir levels. WATER SUPPLY Rights from surface water diversions are subject to the State of California, Division of Water Rights permit process for surface waters. Routine monitoring and additional monitoring under the Compliance Order are performed as required by the California State Department of Health to verify the quality of the water for chemical, physical, and bacteriological constituents. Three categories of water rights are applicable to the District: appropriative rights, which are defined through a permit and license procedure of the Division of Water Rights, State Water Resources Control Board (SWRCB); pre-1914 appropriative rights, which are for claims of water prior to December 19, 1914; and riparian use rights, which apply to lands adjacent to surface waters. The District presently has five permits, three licenses and three pending applications for appropriative water rights. In addition to these rights, the District has filed two statements of diversion for riparian and pre-1914 rights. The State of California Urban Water Management Planning Act requires that water suppliers with 3,000 or more connection submit Urban Water Management Plans (UWMP) to the California Department of Water Resources every five years. With 3,828 connections, NTPUD is Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-16 North Tahoe and Martis Valley MSR required to prepare a UWMP and adopted its most recent UWMP on July 9, 20133. The UWMP describes and evaluates water deliveries and uses, water supply sources, efficient water uses, and demand management measures. The purpose of the UWMP is to determine whether a water supplier can meet the water demands of its customers as projected over a 20- or 25- year period. The District currently uses Lake Tahoe, a high-quality and very reliable water supply, for approximately 90 percent of the water it produces. The remaining 10 percent is supplied via groundwater through District-owned wells. Even during drought years, the District is able to continuously supply the required amounts of water to its customers as well as maintain a high degree of water quality. The UWMP found that water supply in the forecast period was reliable both in normal and dry years due to the fact that 90 percent of the water comes from Lake Tahoe. In 2008, the average daily flow was 1.46 million gallons per day (mgd). During the eleven year period from 2000 to 2010, the District supplied an average of 519 million gallons (mg) (i.e. 1,593 af) during a year (PRDE Inc.4, 2013). WATER DEMAND The Lake Tahoe region is a destination area driven by a tourist-based economy. An influx of tourists and second homeowners surges into the area during the high seasons of summer and winter. The tourist population increases the water demand both in their residential occupancies as well as their impact on commercial connections such as hotels and restaurants. Additionally, large variations in demand occur due to the different types of communities in the service area. For example, increases in occupancy and landscape irrigation, especially at the larger condominium complexes, result in demand fluctuations, whereas the greater number of full-time residents in the Kings Beach system dampens out this effect, resulting in moderate variations in use. The District’s Urban Water Management Plan (UWMP)5 describes the actual water use and projected water demands from 2010 to 2030. The District began metering its water in 1984, so the UWMP uses water production data from 1984 through 1997 to evaluate past and present trends of water use within the District’s service area. As of 2014 the District had approximately 3,828 water service connections6 and this includes 3140 single family, 255 multi-family, 245 commercial, 72 irrigation, and 116 fire service connections. The District’s total water deliveries of 1,485 acre-feet per year in 2010 and 1,299 acre-feet per year in 2014 (NTPUD7, 2015). This demand for water is projected to increase to 3,079 acre-feet per year in 2030. The UWMP states that the supply will meet this demand in normal and dry years because Lake Tahoe provides a readily available source of water, and 3 The UWMP is available on the District’s website at: <http://ntpud.org/sites/default/files/ docs/engineering/NTPUD %20UWMP%20Adopted%20July%209%202013.pdf>. 4 See Table 2-1a on page 9 of the UWMP. 5 PRDE Inc. 2013 6 Per NTPUD’s website at http://ntpud.org/utility-operations 7 Per NTPUD’s website at http://ntpud.org/utility-operations Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-17 North Tahoe and Martis Valley MSR groundwater wells are typically unimpacted by dry years. The number of water accounts is projected to increase to a total of 4,478 in 2030, using the population growth rate of 0.74 percent. As noted previously, the UWMP assumed that the maximum additional development within the NTPUD boundaries is 1,002 dwelling units over the next 20-year period (PRDE Inc., 2013). Billing records in 2010 indicate that the District’s system losses are 35 percent of overall production, while the industry average is 10 percent. Unaccounted-for water can be caused by unauthorized users, malfunctioning systems controls, inaccurate meters, system flushing, leak repair flushing, hydrant leaks, street sweeping system flushing, leak repair flushing, hydrant leaks, street sweeping or leaking pipes. Unaccounted-for water is expected to be reduced by operative measures such as the active water main replacement project, meter replacement plan, passive leak detection programs, and other water conservation efforts. In order to meet the State’s minimum water use reduction requirements, water districts are asked to develop per capita water use targets for 2015 and 2020. These targets are intended to meet the goal of reducing statewide per capita water consumption by 20 percent by the year 2020. The District is committed to meeting the 2015 and 2020 targets for demand reduction and has already seen a decrease in the annual daily per capita water use from 2008 to 2010. Additionally, due to the on-going drought, in 2015 Governor Brown issued Executive Order8 B-29-15 declaring a state of emergency due to drought and requiring a statewide statewide 25% reduction in potable urban water use. The installation of residential water meters, dedicated irrigation meters for commercial and institutional water accounts, residential plumbing retrofits, the new 2010 California Building Code, and the 2009 Uniform Plumbing Code requirements will continue to result in reductions in water demands. The District has also implemented a portion of system water audits and leak detection, and repairs for their entire water system. The focus now will be completing the implementation of the water loss management strategies and addressing the best management practices discussed in the UWMP. WATER DISTRIBUTION AND TRANSMISSION The District water distribution system is comprised of 45 miles of water lines with pipes range from one to 14 inches in diameter. The District operates three separate and independent water systems: the Tahoe Main, Carnelian Bay, and the Dollar Cove system. The Tahoe Main water system draws water from Lake Tahoe through an intake at the end of National Avenue in Tahoe Vista, as well as a single groundwater well located in the North Tahoe Regional Park at end of Donner Road. The water pumped from Lake Tahoe is treated at the National Avenue Water Treatment Plant using both ultraviolet and chlorine disinfection processes, and provides water to the communities of Kings Beach and Tahoe Vista. The Carnelian system serves the community of Carnelian Bay and receives its water from a well. This system is also tied into the Agate Bay Water Supply Company for emergency uses in case of well failure or 8 The Executive Order is available on this website: http://gov.ca.gov/docs/4.1.15_Executive_Order.pdf Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-18 North Tahoe and Martis Valley MSR repair. The Dollar Cove system purchases treated water from the Tahoe City Public Utility District and serves the Dollar Cove community. The water received from the Tahoe City Public Utility District is a well blend that is comprised of five separate wells. WATER INFRASTRUCTURE AND FACILITIES The District began providing water treatment, distribution, and operation services in 1967 by acquiring several privately owned water systems from local developments. The District serves water to approximately 3,828 water connections and produces an average of 1.1 million gallons (3.6 AF) of potable water daily9. Its storage capacity of 4.15 million gallons is held in seven water tanks. There are six pressure zones and three booster systems. Water is supplied to the District via two wells and three lake intakes (NTPUD, 2015). Only one of the three lake intakes, the National Ave intake, is currently in operation. The 45 miles of water lines have an average age of 32.1 years. Much of the water distribution system was built in the 1960s and 1970s and was built for part-time ownership. The District operates three separate and independent water systems, the Tahoe Main, Carnelian Bay, and the Dollar Cove system. The Tahoe Main water system draws water from Lake Tahoe through an intake at the end of National Avenue in Tahoe Vista, as well as a single groundwater well located in the North Tahoe Regional Park at end of Donner Road. The Main system serves the communities of Kings Beach and Tahoe Vista. The Main system has 3,326 connections and serves between 5,000 and 10,000 customers, which fluctuates on a seasonal basis due to tourism. The water pumped from Lake Tahoe is treated at the National Avenue Water Treatment Plant using both ultraviolet and chlorine disinfection processes, and provides approximately 90 percent of the water produced by the District (PRDE Inc., 2013). The Carnelian system serves the community of Carnelian Bay and receives its water from a well. This system is also tied into the Agate Bay Water Supply Company for emergency uses in case of well failure or repair; however, the unreliability of the source and unsuitability of the adjoining system as a backup underscore the need for an additional water source. The Carnelian system has 273 connections and serves between 600 and 900 customers, a number fluctuates on a seasonal basis due to tourism (PRDE Inc., 2013). The Dollar Cove system serves the community of Dollar Cove and purchases its water from the Tahoe City Public Utility District. With a contract for supply, including the jointly developed well and other TCPUD sources, NTPUD has a reliable source capacity. With respect to emergency reserves, the existing lake source is inactive, but upon reactivation could supply 240 gpm, if necessary. The water received from the Tahoe City Public Utility District is a well blend that is comprised of five separate wells. The Dollar Cove system also has a lake intake that is no longer in use. The Dollar Cove system has 273 connections and serves between 800 and 1,600 customers depending on the season. Together, the three combined systems supplied just over 483 million gallons of water to customers in 2010 (PRDE Inc., 2013). 9 NTPUD’s website at <http://ntpud.org/utility-operations> indicates 423.3 MG per year and divided by 356 equals 1.1 MG per day on average. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-19 North Tahoe and Martis Valley MSR The District’s 1999 Master Water Plan10 provides a full detailed study with costs concerning the interconnection of the District’s internal water systems. Interconnection of the three water systems would be beneficial from a redundancy and reliability standpoint and source capacity at one site could be used as backup capacity to other sources. For example a second well within the Carnelian system would provide enough capacity to supply Dollar Cove and provide a backup to the Kings Beach system, thereby lowering the treatment capacity required to be developed at the National Avenue lake intake. If either source serving the Kings Beach/Tahoe Vista municipal area were to fail during a period of above average usage, water outages and public health issues could be experienced (NTPUD, WMP, 1999). The District owns and maintains a water treatment plant that uses a SWTR Filtration Avoidance Criteria whereby potential pathogens are not physically filtered from raw water. Instead, the pathogens are inactivated using two disinfection barriers. Chlorine is the first barrier used and it provides 4 log virus inactivation and 0.5 Giardia inactivation. UV disinfection is the second barrier used and it provides 0.5 log virus inactivation, 3 log Giardia inactivation and 2 log Cryptosporidium inactivation (TWSA, 2009). WATER IMPROVEMENT PROJECTS Every year, NTPUD updates its Capital Improvement Program (CIP) and shares it with the public via its website11. The purpose of the CIP budget document is to serve as a planning tool that coordinates the financing and scheduling of major projects undertaken by the District. These projects include design, construction, or rehabilitation of District buildings or facilities; public infrastructure design and construction; and park design and construction projects. 10 The NTPUD Water Master Plan is available on the District’s website at: http://ntpud.org/master- plans. 11 The current Capital Improvement Plan may be viewed on-line at: http://ntpud.org/financial- information . Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-20 North Tahoe and Martis Valley MSR The District’s goal in providing a CIP budget is to develop a five-year plan for capital improvements that will follow needs identified within the Sewer and Pump Station, Water, and Parks and Recreation Master Plans. These documents identify needs for infrastructure replacement and/or rehabilitation, along with maintenance and operations records that detail current impacts of system deficiencies. In determining the relative merit of a proposed project, key management team members evaluate projects for feasibility, community enhancement, infrastructure and historic preservation, and safety. A total of 17 water improvement projects are listed in the FY 14/15 CIP; although only four of those projects received funding in FY14/15. The four capital improvement projects include Kings Beach Commercial Core Waterline Relocations, Kingswood 500 Tank, 120 Booster Demo & Griff Creek Restoration, Canterbury Water Main Replacement Project Phase 1, and the Kings Beach Water Storage Tank Rehabilitation for a total of $1,110,000 in expenditures. Some of the District’s future improvement projects for water include: • Dolly Varden Water Main Replacement Project • National Avenue Water Treatment Plant Improvements Phases 3 & 4 • National Avenue Water Treatment Plant Third Booster Pump Installation • Carnelian Woods #1 Water Storage Tank Rehabilitation • Canterbury Water Main Replacement Project Phase 2 • Carnelian to Watson Creek Water Main Replacement Project Recently completed water projects include the Kingswood Water Main Replacement Project, the Secline Pump Station Rehabilitation, the C-1 Wet Well and Dry Well Modifications, the Carnelian Bay Water West Main Replacement, the Zone 2 Water Tank Project, the Tahoe Marina Estates Water Line Replacement Project, the Cutthroat Water Main Replacement, the Kingswood Booster Pump Station Stairs, the Dollar Cove Water Treatment Study, the Lincoln Green Water Line Replacement, the Kingswood West Tank Security Fence, and the Beaver Street Water and Sewer Line Replacement Project. OPPORTUNITIES TO SHARE WATER FACILITIES NTPUD partners with a number of government, non-profit, and private water organizations to increase its efficiency in providing water service to its customers. In 1983, the District entered into an Agreement for Mutual Emergency Aid12 with thirteen special/independent districts located nearby in both California and Nevada to share personnel who are trained in the emergency and operation and repair of sewage and water collection, transportation and treatment facilities, together with equipment, materials and supplies required for such operation and/or repair as may be necessary during emergency conditions (NTPUD, 2013). 12 A copy of the 1983 Agreement for Mutual Aid is located in an appendix to the 2010 UWMP at: <http://ntpud.org/sites/default/files/docs/engineering/NTPUD%20UWMP%20Adopted%20July%209%20 2013.pdf>. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-22 North Tahoe and Martis Valley MSR In 1992, the NTPUD and Tahoe City Public Utility District entered into an agreement to jointly develop a ground water source in the Dollar Hill area, which is located just west of Cedar Flat. A pipeline interconnection was constructed in 1995 between the TCPUD system in the Highlands NTPUD On-going Water Systems Improvement Projects subdivision and the Dollar Cove water tank. The two wells constructed under this agreement were placed into operation in December 1996. Use of the interconnection began in May 1997 but still awaits the execution of an operating agreement between the Districts. NTPUD’s boundaries are geographically laid out linearly along the Lake. As such, access along the shoreline can be limited by excess traffic during major weekends or inclement weather. Typically, maintaining one system is more cost-efficient than maintaining three separate systems as the District does with the Dollar Cove, Carnelian Bay, and Tahoe Main water systems. However, due to the systems’ geographic location around the Lake, the capital costs of connecting these systems along with the costs of infrastructure maintenance could exceed the cost benefits of connecting the system. As a result, the District has created temporary connections with adjacent independent systems to provide emergency supplies. The adjacent water systems are Tahoe City Public Utility District (TCPUD), Incline Village General Improvement District (IVGID), Fulton Water Company (FW), and Agate Bay Water Company (ABW) (see Figure 10.5). These water systems have their own water treatment and supply systems. To enable the District to have uninterrupted water service capability, a valve connection from the District’s water distribution system to TCPUD is in place and is currently maintained by NTPUD. Since the interconnections with IVGID, FW, and ABW are not regularly maintained or necessarily reliable, they are utilized only for temporary and/or partial water service. The interconnection valves between the District and IVGID, FW, and ABW allow the District to sometimes serve as an alternate water source for these agencies. The District is currently planning to undertake a CIP to upgrade the existing facilities, and completion of these improvements will reduce the need to rely on adjacent systems for emergency support. NTPUD has indicated that it has no plans to merge with any of the adjacent private water systems. Nonetheless, a few of the adjacent water service providers have experienced supply and/or operational problems in the past and acquisition has been tentatively discussed as a means of resolving these issues. NTPUD would likely wish to analyze the net public benefits and economic feasibility before furthering future discussions regarding acquisition of adjacent providers. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-23 North Tahoe and Martis Valley MSR It should also be noted that NTPUD is a member of the Tahoe Water Suppliers Association (TWSA) which is focused on protecting water quality within the Lake Tahoe basin. The TWSA was formed in 2003, partially in response to the Surface Water Treatment Rule promulgated by the 1986 Safe Drinking Water Act. Water suppliers in the Lake Tahoe area who are also a member of TWSA includes: Douglas County Utilities (Zephyr Cove, Skyland and Cave Rock), Edgewood Water Company, Glenbrook Water Company, Incline Village General Improvement District, Kingsbury General Improvement District, Lakeside Park Association, North Tahoe Public Utilities District, Round Hill General Improvement District, and Tahoe City Public Utility District. South Tahoe Public Utility District joined as an associate member in 2008. Together, these water suppliers (under the auspices of TWSA) jointly prepared a very comprehensive sanitary survey and watershed control plan to protect water quality in Lake Tahoe and this document is available on-line at: http://ntpud.org/sites/default /files/docs/conservation/TWSA%20Sanitary %20Survey%202009%20Update%20FINAL.pdf . NTPUD participates in the Truckee North Tahoe Joint Information Response Team to coordinate public information and response in the event of a major emergency in the area12. NTPUD is also exploring a potential future partnership with the North Tahoe Fire Protection District to explore ways to jointly conduct public outreach and promote public awareness on water conservation and fire safety awareness13. WATER SERVICE ADEQUACY The District’s water facilities are currently sized to adequately serve the existing connections within the service area. Water supply has historically exceeded demand due to the nature of water source; however, backup systems are also in place should any of the water systems fail. Additionally, the District has been working to reduce water demand and has already seen a decrease in the annual daily per capita water use from 2008 to 2009 and 2010. The installation of residential water meters, dedicated irrigation meters for commercial and institutional water accounts, residential plumbing retrofits, the new California Building Code, and the 2009 Uniform Plumbing Code requirements will continue to result in reductions in water demands. The District has also implemented a portion of system water audits and leak detection, and repairs for their entire water system. 10.9: WASTEWATER SERVICE WASTEWATER SERVICE OVERVIEW NTPUD began providing sewer service and operations in 1948. The District collects sewage from connections within its service area and exports the raw sewage to the Tahoe-Truckee Sanitation Agency (T-TSA) water reclamation facility for treatment. The District has an 13 Source of information: May 2015 NTPUD meeting packet. Available on-line at <http://ntpud.org/sites/default/files/board/packets/20150508164437206.pdf>. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-25 North Tahoe and Martis Valley MSR interagency agreement with Tahoe-Truckee Sanitation Agency (T-TSA) for T-TSA to treat NTPUD’s wastewater. NTPUD collects wastewater and conveys it to a connection point with the T-TSA, and T-TSA conveys the flow through an interceptor pipeline to a treatment plant in Truckee. The T-TSA was founded in 1972 in response to the Porter Cologne Water Quality Control Act, which was enacted to protect Lake Tahoe and Truckee River water quality. T-TSA provides regional wastewater treatment service to several Tahoe-area communities through the Agency’s five sewage collection districts. NTPUD is a member agency of the T-TSA which treats and disposes of the wastewater delivered to the facility by the sewage collection agencies. NTPUD operated its wastewater collection system during the years 2006 to 2013 consistent with Statewide General Waste Discharge Requirements from the State Water Resources Control Board, Order No. WQ 2006-0003-DWQ –for Wastewater Collection Agencies14. In August of 2012, the NTPUD received a letter from the CRWQCB, Lahontan Region, notifying the District of non-compliance with the requirements in the Sanitary Sewer Collection System Order (WDID 6SSO11110)15. The non-compliance was related to a discharge of 129,500 gallons of untreated sewage into Lake Tahoe on December 19, 2010. The non-compliance resulted in Administrative Civil Liability Order No. R6T-2012-004016. The District has since produced an updated Sewer System Management Plan and has taken other corrective actions to address the concerns of the RWQCB. In 2013 the RWQCB permit was updated and entitled Order No. WQ 2013-0058-EXEC – Amending Monitoring and Reporting Program for Statewide General Waste Discharge Requirements for Sanitary Sewer Systems17. NTPUD is enrolled under this program. WASTEWATER SUPPLY AND DEMAND Currently, the District serves 5,524 connections. A "connection" is a single living or commercial unit which flows into the District's system. Multiple "connections" may be owned by a single "customer'', and multiple connections may flow into one actual pipe which taps into the system. NTPUD’s Risk Based Sewer Master Plan provides data and projections for current and future wastewater flows as shown in Figure 10.6 below: 14 Order No. WQ 2006-0003-DWQ is available from the State Water Board website at: <http://www.waterboards.ca.gov/board_decisions/adopted_orders/water_quality/2006/wqo/wqo200 6_0003.pdf >. 15 Details about the non-compliance are available on the State Water Board website: <http://www.waterboards.ca.gov/rwqcb6/board_info/agenda/2012/jul/northtahoepud_acl.pdf>. 16 Administrative Civil Liability Order No. R6T-2012-0040 is available on-line at: <http://www.waterboards.ca.gov/lahontan/board_decisions/adopted_orders/2012/docs/r6t_2012_00 40.pdf>. 17 The Amended Monitoring and Reporting Program for Statewide General Waste Discharge Requirements is available on-line at: <http://www.waterboards.ca.gov/board_ decisions/adopted_orders/water_quality/2013/wqo2013_0058exec.pdf>. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-26 North Tahoe and Martis Valley MSR 2.5 2 1.5 1 0.5 0 2009 Dry 2009 Wet 2029 Dry 2029 Wet Weather Weather Weather Weather Another way to consider future growth in demand for wastewater services is to compare the existing number of housing units to projected numbers. As of the 2010 Census, it was estimated that the District contained approximately 6,298 housing units18 and as of 2015, 6,519 housing units are estimated. By the year 2030, it is anticipated that an additional 1,000 units would be constructed. Assuming that each new unit would generate 300 gpd of wastewater as a dry weather flow19, the calculated demand would be an additional 300,000 gpd or 0.3 mgd. This calculated demand is generally consistent with that shown in Figure 10.6 above. Since the District’s infrastructure was originally designed for a population of 100,000 and daily flow of 11 mgd, no shortage in wastewater transmission capacity exists. WASTEWATER COLLECTION NTPUD collects sewage from connections within the service area and exports the raw sewage to the TTSA water reclamation facility for treatment. According to the District’s website20, the sanitary sewer collection system consists of approximately 75 miles of gravity sewer pipe, 6.6 miles of force main, 4,699 lower laterals, 1,720 sewer manholes, four main collection pumping facilities, and 16 satellite pumping facilities. The predominant pipe material is asbestos cement, clay and PVC pipe. The average age of the lines is 27 years, and the lines range in size from six inches to 36 inches diameter. WASTEWATER INFRASTRUCTURE AND FACILITIES The District maintains an intricate and in some cases rather old sewer collection and pumping system which includes a 75-mile gravity collection system, seven and a-half miles of force 18 Data source for # of housing units in 2010 is: http://www.census.gov/2010census/popmap/ 19 NTPUD’s Sewer System Master Plan, Table 8-4 indicates that a single family home would generate 300 gpd of wastewater as a dry weather flow. 20 http://ntpud.org/utility-operations Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-27 yaD reP snollaG noilliM ni wolF Figure 10.6: Design Flow Rates Average Daily Flow (MGD) Peak Hour Flow (MGD) Source: NTPUD Sewer System Master Plan, 2013 North Tahoe and Martis Valley MSR main, and 20 various sewage pumping stations (NTPUD21, 2013). There are four main sewer pump stations and each station contains several pumps. The most easterly station, Secline, collects sewer flows from its surrounding tributary area and pumps them west to the National station. The National station collects sewer flows from its tributary area and the flow from Secline, and conveys the combined flow to the Carnelian station. Similarly, flows in the area of the Carnelian station and the flow from the National station are collected at Carnelian, and the combined flows are pumped to the Dollar station. Dollar then pumps the combined sanitary sewer flow from the entire District service area, with the exception of a single satellite pump station, west over Dollar Hill to a gravity interceptor, the North Shore Export Line, where the wastewater is exported to the TTSA. Each of the main sewer pump stations was designed for sewage flow rates far in excess of the actual flows the area produces now and even in excess of flows projected through the year 2029. This situation has resulted in pumping equipment and force mains that are oversized for current needs. Oversized equipment leads to high energy costs from pump motors that are too large, do not operate efficiently, and cycle on and off excessively. Oversized force mains result in low velocities and settling of solids within the pipe, leading to clogging and extended retention time, which contributes to odor problems. In the years since the main pump stations were built, the District has retrofitted each station with at least one smaller pump; however, even these smaller pumps tend to be oversized for existing needs (NTPUD, 2013). The District’s pipeline preventative operation and maintenance program consists of a system- wide cleaning/inspection program on a rotating basis, as well as a more frequent cleaning/inspecting program necessary to target known problem areas. These known problem areas are commonly referred to as the “holiday lines” because they are scheduled to be cleaned frequently, generally around major holidays. The cleaning/inspection schedule is tracked and documented in the District’s asset management software LUCITY. For each cleaning/inspection, crews are required to document their findings in a sewer cleaning log and these findings are also used to develop the cleaning schedule (NTPUD, 2013). Lift stations and force mains are regularly maintained by District staff. All maintenance activities and their associated schedules are maintained in LUCITY. The District uses Closed Circuit Television (CCTV) to assess gravity sewer pipe deficiencies and has adopted the National Association of Sewer Service Companies (NASSCO) Pipeline Assessment and Certification Program (PACP) standards to perform these assessments and condition grading. Inspections are scheduled in LUCITY and cover the inspection of all gravity mainline and manholes in the District over a six-year period, equating to approximately 12.5 miles per year (NTPUD, 2013). The sewage export system, including the force mains throughout the District, was installed between 1968 and 1969. The force mains were installed with no viable way of inspecting the inside of the pipe. With this in mind, the District verifies the internal condition of the force 21 Sewer System Management Plan is available at the District’s website:<http://ntpud.org/master-plans Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-28 North Tahoe and Martis Valley MSR mains at every given opportunity. In the past, the force main has been accidently damaged from contractors working around it. When repairs were made, the force main was found to be in good condition, and the tar wrap and concrete lining showed little to no wear. In the early 1980s, the District undertook the capital project of installing emergency bypass valves along the length of the National and Carnelian force mains. The bypass valves provide an above- ground emergency bypass provision in the event of a failure or accident affecting the use of the main. At the time these valves were cut in, the physical condition of the force mains was good. Routine maintenance on the force mains consists of exercising, rebuilding and/or replacing the emergency bypass and the air release valves when needed. Scheduling of service on these assets is based on observed operation noted while making the rounds per the District’s Preventative Maintenance program. The NTPUD has prepared a Main Sewer Pump Station Master Plan (2009) that evaluates and recommends improvements for the four main sewer pump stations. Included in the Master Plan are a CIP and Implementation Plan for the recommended improvements and suggested installation priorities. Minor repair and replacement decisions for pipes, manholes, and lift stations are made by the operations group and are scheduled according to priority. Major repair and replacement projects are typically prioritized based on observed deficiencies, failure events, and/or amount of crew time delegated to the asset. Significant improvements requiring capital funding are reviewed with all District management and scheduled within the capital planning process. Please see the section below entitled “Wastewater Improvement Projects” for more information on the District’s annual CIP. Although not part of the District, NTPUD does maintain a close relationship with TTSA, which is located in Martis Valley, east of the Town of Truckee. Their 9.6-mgd advanced water reclamation plant provides primary and secondary treatment, phosphorus removal, biological nitrogen removal, disinfection, and effluent filtration. Because of its location in the Lake Tahoe-Truckee River area, the plant is required to meet some of the most stringent discharge requirements in the country. Final effluent polishing is achieved by routing the effluent through the Soil Aquifer Treatment system, having the soil remove additional constituents as the effluent percolates through it. Please see Chapter 16 of this MSR for more information on TTSA. WASTEWATER IMPROVEMENT PROJECTS As part of the annual budget process, the NTPUD’s engineer and operations managers prioritize capital projects as necessary. The District’s 5- and 10-year CIP is also reviewed and updated at this time. These processes are done in close coordination with the District’s CFO to maintain alignment with resources. With projects, improvements, and funding identified, staff recommends appropriate amounts for Board approval. Every year, NTPUD updates its Capital Improvement Program (CIP) and shares it with the public via its website22. Once authorized by the Board, the funds are available for use. Three recent improvement projects 22 The current Capital Improvement Plan may be viewed on-line at: <http://ntpud.org/financial- information >. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-29 North Tahoe and Martis Valley MSR for wastewater include 1) the Carnelian & Dollar Sewer Pump Station Design – Phase 1, completion date in 2014; and 2) the Brook Avenue Sewer Main Replacement Project with a completion date in 2013; and the Beaver Street Water and Sewer Line Replacement Project. The five-year CIP for sewer services shows that for FY 12/13 the District spent $1,022,801 on three improvement projects including the Brook Avenue Sewer Main Replacement Project, Carnelian/Dollar Pump Station Design, and the SCADA Server Replacement. In FY 13/14 $297,098 was expended on four projects including: Dollar Pump Station Construction Phase Services; Kings Beach Watershed Improvements Sewer Relocations; New Transformer for Dollar Sewer Pump Station; and Dollar Hill 22" Force Main Rehabilitation. In FY 14/15, the District plans to expend $50,000 for the Carnelian Dry Well Repairs project (NTPUD, CIP, 2014). OPPORTUNITIES TO SHARE WASTEWATER FACILITIES The District collects wastewater within its service area and exports the raw sewage to the Tahoe-Truckee Sanitation Agency water reclamation facility (TTSA) in Truckee for treatment, resulting in the avoidance of needing several small package treatment plants as many other districts in the area maintain. No opportunities to share wastewater facilities have been identified by the District at this time. WASTEWATER SERVICE ADEQUACY NTPUD’s wastewater systems are adequate to serve the existing connections within the District. The District has a current Sewer System Management Plan (SSMP) which summarizes the legal authorization for the District to manage, maintain, and oversee the wastewater system. Capacity of the system is adequate in that sanitary sewer overflows (SSOs) have not occurred due to hydraulic limitations. Even though there are no known hydraulic capacity limitations, the District has developed a Capital Improvement Program (CIP) to improve reliability and/or operational efficiency. Implementation of the CIP is necessary to facilitate the continued adequate wastewater service to customers. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-30 North Tahoe and Martis Valley MSR 10.10: RECREATION AND PARKS RECREATION AND PARKS OVERVIEW NTPUD’s Recreation and Parks Department provides four primary types of recreation and parks services including: • Bike trail • Beaches • Parks and playgrounds • North Tahoe Events Center at Kings Beach Overall, the District owns and operates less than 200 acres of property throughout the North Tahoe region, including the 108-acre North Tahoe Regional Park, Tahoe Vista Recreation Area, and the 16,000-square foot North Tahoe Event Center. Photo courtesy of www.laketahoenews.net The District has a Recreation and Parks Master Plan (2006- 2007) that provides goals, policies, a needs assessment, and recommendations to meet public recreation needs over the next 20 years. The Master Plan also aids the District in establishing eligibility for State, federal, and private funding and grants that can help to finance future construction of facilities and new programs. The Parks Master Plan is readily available to the public via the District’s website at: http://ntpud.org/master-plans. In 1993 the NTPUD eliminated recreation programming along with staff for recreation programming. Since that time, programs in the District have been limited in number and scope. The NTPUD has mutually beneficial partnerships with some regional agencies for funding events and maintenance of facilities, including the North Tahoe Business Association (NTBA), the California Tahoe Conservancy (CTC), and the Boys and Girls Club of North Lake Tahoe (BGCNLT). The District collaborates with the NTBA on a July 4 fireworks event, as well as summer movies and summer concert events. The CTC provided funding for environmental review of the District’s Dollar Point trail project, and the District maintains a CTC-owned property. The District allocates a substantial portion of Measure C revenues to the BGCNLT for youth programming and activities. Additionally, the NTPUD uses Measure C funds to subsidize complimentary use of the facilities to youth sports leagues and adult softball leagues. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-31 North Tahoe and Martis Valley MSR RECREATION INFRASTRUCTURE AND FACILITIES The District added Parks and Recreation to its services in 1968 for the residents, property owners, and visitors of the District. The District owns and operates approximately 200 acres of property throughout the North Tahoe region, including the 108-acre North Tahoe Regional Park, Tahoe Vista Recreation Area, the Gentry Property and the 16,000-square foot North Tahoe Event Center (PRDE Inc., 2013). BIKE TRAIL AND SKI TRAILS The District maintains a paved 1.5 mile asphalt bike trail called the Pinedrop Trail. This trail extends from the North Tahoe Regional Park, through US Forest Service land, to Pinedrop Lane (close to Highway 267) in the Kings Beach area. There are proposals to add trail links, including one from Highway 28 to National Avenue and a second nine-mile trail that will link NTRP to the existing bike trail that currently terminates northeast of Tahoe City, commonly known as the proposed Dollar Creek Trail23. These extensions of the bike trail will provide better linkages in the North Tahoe Area. Stakeholders in the future bike trail extensions include the Tahoe Metropolitan Planning Organization at: http://tahoempo.org/bike_projects.aspx? SelectedIndex=3; Tahoe Transportation District at http://tahoetransportation.org/; Tahoe Regional Planning Agency at http://www.trpa.org/programs/air-quality-transportation/ and Placer County at http://www.placer.ca.gov/Departments/Works/Projects/ DollarCreekBikeTrail.aspx . The NTPUD also maintains USFS trails as groomed cross country ski trails for winter recreation purposes. BEACHES Secline Beach/Griff Creek consists of a small beach with amenities limited to picnic tables, barbecues and a temporary restroom in the summer. Limited parking is available. The Griff Creek portion of the site is a Stream Environment Zone (SEZ), a special buffer zone of marsh, grasses, and a pond to protect riparian habitat. Located just south of the junction of Hwy 267 and North Lake Blvd, the beach area and picnic site is comprised of a set of parcels owned variously by Placer County, the California Tahoe Conservancy, and the NTPUD. The Tahoe Vista Recreational Area (TVRA), a 2.7-acre park area, is located along Lake Tahoe in Tahoe Vista and was completed in July 2006. Parking to support this lakeside beach facility is planned along National Avenue with construction of such dependent upon receipt of grant funding. The park has a major boat launch facility, picnicking, and 800 feet of lakeshore frontage. The boat launch includes an area for wash-down prior to launching that serves to reduce noxious weeds in the lake and at the launch facilities. The park design incorporates sustainable design features including permeable paving and storm water detention facilities. 23 Details on the proposed Dollar Creek Trail can be found at: <http://www.tahoedailytribune.com/news/ 13292591-113/property-county-trail-firestone>. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-32 North Tahoe and Martis Valley MSR The 3.6-acre support parcel at the intersection of North Lake Boulevard (Highway 28) and National Avenue includes automobile parking, boat trailer parking, fee collection facilities, bicycle trails, a transportation shelter, pedestrian circulation facilities, and landscaping elements. The District maintains several beach properties they do not own or lease, but have contractual maintenance agreements with the owners. The Coon Street Picnic Area and Dog Park is owned by the California Department of Boating and Waterways and is maintained by NTPUD. It is approximately one acre on the eastern side of Coon Street opposite the Coon Street Boat Launch and consists of a patch of green space, a rocky beach, and a few picnic tables. The boat launch facility, less than one acre in size, contains a concrete boat launch ramp with adjacent wood dock, restroom, parking and picnic facilities. The picnic area also serves as an informal dog park. The California State Department of Boating and Waterways owns this property and contracts the District to maintain it. Beaches that are owned by Placer County and maintained by NTPUD include: • Moon Dunes Beach • Steamer’s Beach • Speedboat (formerly known as Buck’s) Beach, and • several unnamed beaches Funding for the maintenance of the County owned beaches is provided through an agreement between NTPUD and Placer County. Beaches that are owned by the California Tahoe Conservancy and maintained by NTPUD include: • North Tahoe Beach • Sandy Beach • portions of the aforementioned Secline Beach and • portions of the aforementioned Moon Dunes Beach For 36 years, between 1978 to 2014, NTPUD maintained and operated the Kings Beach State Recreation Area which is owned by the California State Parks. In May of 2014, State Parks assumed responsibility for maintaining and operating this area. The reasons for this transfer of responsibility were due to the expiration of the contract between NTPUD and State Parks and due to the financial investment needed to bring the property into compliance with the requirements of the Americans with Disabilities Act. Areas identified for work needed to improve universal access are the picnic and grilling areas; paths; curbs; stairs; and a half- inch surface differential in paving in some areas. Kings Beach continues to open to the public and both State Parks and NTPUD have worked out a transition plan to coordinate vehicular for the property. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-33 North Tahoe and Martis Valley MSR PARKS AND PLAYGROUNDS NTPUD owns and operates two major parks – North Tahoe Regional Park and the Tahoe Vista Recreation Area. The 124.5-acre North Tahoe Regional Park (NTRP) has over six miles of trails and large areas of undeveloped open space that connect into adjacent National Forest Land and Placer County open space. Park facilities are on three large terraces, the result of filling and grading for the land’s former use as sewerage ponds. See also the Tahoe Vista Recreational Area which is described under “beaches” above. NORTH TAHOE EVENTS CENTER AT KINGS BEACH Located adjacent to the Kings Beach State Recreation Area (KSBRA), the North Tahoe Conference Center (NTCC) is a major meeting space for the North Tahoe community. The 16,170-square-foot facility accommodates meetings, conferences, and classes in its eight meeting rooms and on its outdoor terrace overlooking the Lake. The terrace at the Conference Center connects to the promenade that runs through KBSRA and provides passive recreation opportunities, while KBSRA’s sandy beachfront continues past the NTCC. Parking is available in the adjacent KBSRA parking area. Owned and operated by the District, the Center is supported variably by user fees, Measure C funds, and Resort Association grants. The Center is available to the community for rental as well as for community events. The Center’s prime shoreside location makes it popular for wedding events, which generate the greatest bulk of rental income. Currently, the Center’s primary community recreation functions are community meetings and fitness classes. Issues for the exterior spaces include the drop off from the terrace onto the beach and no detectable warnings at flush walks adjacent to vehicular routes. OTHER MISC. PARK RELATED PROPERTIES The District’s undeveloped property is called the Mogilefsky Property. The 16.5-acre Mogilefsky property is located north of the NTRP and has potential as a winter sports facility such as a snow mobile park. This forested property also has modest view opportunities to Lake Tahoe. Due to its adjacency to US Forest Service land, Mogilefsky provides a vital link in the regional trail system, as well as providing a suitable space to develop campsites. In 2014, the NTPUD Board approved a request to transfer ownership of the Firestone property to Placer County. In addition to the trail, a new community center and swimming pool were once proposed for the Firestone site; however, the funds could not be raised in the community after a failed bond measure. NTPUD maintains the baseball field which is owned by the Catholic Church, leased to Little League Baseball, and is located adjacent to the Kings Beach Elementary School property. The Kings Beach Neighborhood Park consists of a multi-use field owned by the Kings Beach Elementary School, maintained by NTPUD, and located adjacent to the Boys and Girls Club. (Royston et.al., 2006). The District also maintains the grounds of the Kings Beach County Library. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-34 North Tahoe and Martis Valley MSR PARK MAINTENANCE AND CAPITAL IMPROVEMENTS The Park Master Plan reported that maintenance of park facilities is an on-going concern, including accommodation of universal access consistent with the Americans with Disabilities Act (ADA) and California Title 24 and compliance with safety codes for playgrounds by the Consumer Product Safety Commission (CPSC). Nearly all play equipment at NTRP is in need of some repair, upgrade, or replacement for safety and universal access. The District did receive a grant to improve the surfacing of a park playground. Given the natural topographic variability in some of the parks, creating universal access for the elderly and/or handicap remains an issue. Other maintenance concerns include erosion, drainage problems, soil compaction, and overuse of turf areas. NTPUD maintains most of the public beaches on the north shore of Lake Tahoe. The NTPUD also maintains USFS trails as groomed cross country ski trails. Currently, the USFS is working on a Trail Implementation Plan to manage, adopt, build trails, and close user-made trails. All of this maintenance is the responsibility of a limited number of full-time maintenance workers which the District employs to handle routine maintenance. Larger maintenance projects are sometimes deferred until summer when the District hires additional seasonal workers (Royston et. al., 2006). Deferred maintenance at NTPUD park and recreation facilities has been cited as a problem in several local newspaper articles24. For example, it is estimated that the North Tahoe Regional Park is in need of nearly $1 million in deferred maintenance. FUNDING FOR PARK MAINTENANCE Funding for maintenance of park and recreation facilities is provided by a Community Facilities District (CFD) 94-1 which is a Mello Roos assessment. The assessment was approved by in 1992. Formation of CFD 94-1 has allowed the District to construct the Tahoe Vista Recreation Area and to improve the regional park. Funds collected from this assessment also provide an annual subsidy to local youth organizations focused on youth recreational programs. In 2015, CFD 94-1 provides approximately $555,000 for the upkeep, operation and maintenance of District facilities and youth program subsidies. Daily use fees, parking fees and rent paid by concessionaires provide a small, but additional amount of revenue for recreation services. Currently, no property tax money or other funding sources go toward the operation of these facilities. In order to raise some funds to pay for the deferred maintenance, the District raised the rates for parking at the North Tahoe Regional Park year round and it began enforcing (rather than the previous honor system) the parking fee requirement. In 2014, the parking fee for non-residents during peak season was $10 and during the off-season (Oct. 1 to May 31) the parking fee was $5. Residents of the District can park for free, provided they have a PUD sticker. 24 http://www.moonshineink.com/news/state-parks-manage-kings-beach-state-recreation-area Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-35 North Tahoe and Martis Valley MSR The provision of funding for park maintenance continues to be studied by the District. Many other districts located in popular tourism areas face similar challenges. CAPITAL IMPROVEMENTS FOR PARKS NTPUD’s five-year Capital Improvement Program sets forth infrastructure needs and a capital plan. The projected expenditures for all future projects are provided primarily for planning purposes and are not a commitment of funds. Expenditure approval will be sought for these projects during the appropriate Fiscal Year. Operating and maintenance costs can include labor, materials, equipment, utilities, as well as contracted cost for services. These costs would vary depending upon the specific project. The past 2013-14 CIP allocated $100,000 towards the TVRA Lakeside Drainage Detention Pond Basin. The 2012-13 CIP allocated $30,000 towards the Pine Drop Bike Trail Railings and Repairs and $2.6 million towards the Tahoe Vista Recreation Area Phase II project. Funding future capital expenditures for recreation is a challenge for NTPUD. While the District has been quite successful at finding grant funds and working with partners in the past, it is not clear that these methods/opportunities will be sufficient for future needs. Also, funding for operations and maintenance of existing facilities will continue to be a budgetary concern. According to a recent survey conducted by the NTPUD Recreation and Parks Department, the majority of park users in the service area are opposed to new fees or taxes to support park services, and yet the majority of park users at least occasionally utilize the District’s recreational facilities. Compounding the future funding issue is that park users are a mix of permanent residents, vacation home-owners, overnight (hotel) visitors, and day-time visitors. Finding a fair and affordable method for each type of park user to contribute towards future funding is a recognized challenge. OPPORTUNITIES TO SHARE RECREATION FACILITIES NTPUD maintains agreements with several organizations to serve both resident and visitor recreational services including Placer County, California Tahoe Conservancy, and the Truckee- Tahoe Unified School District. The sharing of parks and facilities produces cost-saving measures through a reduction in operating costs and maintenance, which can be shared across the agencies involved. In most of these cases, the other organization actually owns the property and/or facilities and invites NTPUD to maintain and operate the property/facility through contractual arrangements. This allows the property/facility owners to benefit from the expertise that NTPUD has in maintaining and operating these facilities and in working with the general public in this region. RECREATION SERVICE ADEQUACY NTPUD provides a wide range of recreation services to both residents and visitors of the area including a bike trail, ski trails, beaches, parks, playgrounds, and the North Tahoe Events Center at Kings Beach. Recreational opportunities are an attractive feature which draws Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-36 North Tahoe and Martis Valley MSR visitors to the region. Additionally, the Parks Department maintains its own website (separate from the NTPUD website) that provides up-to-date information to park visitors at: http://northtahoeparks.com/ . According to the Parks Master Plan, recreational facilities require upgrading, and expansion is desirable. However, funding for capital improvements to recreational amenities, as well as ongoing operations and maintenance of these facilities, is an ongoing issue, with the Parks Department exceeding its annual budget in FY 2012. Additionally, there has been recent transition of maintenance and daily operation of Kings Beach State Recreation Area to the California State Parks Department. Every year, NTPUD updates its Capital Improvement Program (CIP) and shares it with the public via its website25. Please see the section above entitled “Park Maintenance and Capital Improvements” for more information regarding the CIP and regarding deferred maintenance issues. The recreational services provided by NTPUD are wide ranging. Although CFD 94-1 and other user fees provide funding for operation and routine maintenance, the District’s investment in long-term capital improvements for park facilities seems to remain a challenge. 10.11: FINANCING NTPUD prepares an annual budget, CIP, and an audited financial statement. All of these financial documents are readily available to the general public on the District’s website at: <http://ntpud.org/financial-information>. Budgets are adopted in public meetings on an annual basis. The fiscal year begins on July 1 and ends on June 30. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2014. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: <http://ntpud.org/financial-information>. It should also be noted that the NTPUD operates the North Tahoe Building Corporation, a California nonprofit public benefit corporation which serves as a financing vehicle for the PUD. The Corporation is controlled by the same governing authority, utilizes the same management, and is financially dependent upon the District. Its operations are influenced by the District and the District is responsible for its fiscal management, budgetary control, surpluses and deficits, and provides the sole source of its revenues. As a non-profit entity, the Corporation provides financing for the District’s renovation of its sewer, water and recreation systems (Damore et.al., 2015). Additional information about the North Tahoe 25 The current Capital Improvement Plan may be viewed on-line at: http://ntpud.org/financial- information . Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-37 North Tahoe and Martis Valley MSR Building Corporation is available on the PUD’s website, in the PUD’s audited financial statement, and from California State Controller’s Office. REVENUES AND EXPENSES This section describes sources of revenues and expenses for NTPUD. The District receives revenue from several sources including fees levied on service connections, funds from Community Facilities District 94-1 (a Mello-Roos district), property tax, grants and other sources. Most of these revenues are utilized in the general fund and three major enterprise funds: sewer fund, water fund, and recreation fund. Grant funds are used for capital improvements. In the past, the District received several grants for projects identified in its CIP including: $1,732,000 from the State of California Department of Boating and Waterways for TVRA Phase II parking lot; $500,000 from Placer County for TVRA Phase II Parking lot; and $500,000 from the North Lake Tahoe Resort Association for the TVRA Phase II Parking lot project. The most recent independent auditor’s report was prepared for FY13/14 and dated February 9, 2015, and was attached to the PUD’s Financial Statements. The audit found that financial information was presented fairly and in accordance with accounting principles generally accepted in the United States of America (Damore et. al., 2015). In the two fiscal years studied (FY 12/13 and 13/14) revenues exceeded expenses in both years, increasing the PUD’s Net Position. The PUD’s overall Net Position (the difference between assets and liabilities) was positive at over $5 million for both FY 12/13 and FY13/14) as shown in Figure 10.7, below (Damore et.al., 2015). The Net Position for the Recreation Fund was just over $40,000 in both fiscal years; one hundred times less than the water enterprise fund. Given that the Recreation Department has over $15 million in capital assets, its disparity in annual Net Position is abstract. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-38 North Tahoe and Martis Valley MSR Figure 10.7: Net Position of Three Enterprise Funds $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 FY 12/13 $2,000,000 FY13/14 $1,500,000 $1,000,000 $500,000 $0 sewer water recreation Source: Damore et. al., 2015 In FY 13/14, revenues for the District exceeded $11 million; well above expenditures (Damore et. al., 2015). Major sources of revenue is shown in Figure 10.8 below. Figure 10.8: Revenue Sources FY 13/14 Misc Grants 1% 2% Capital Contrib Invest Income 1% 0% Prop Tax & CFD Service charges 94-1 49% 38% Rec Events & Prg 9% Source: Damore et. al., 2015 Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-39 North Tahoe and Martis Valley MSR Expenditures for FY 13/14 were just over $10 million (less than revenues allowing for a positive net position) (Damore et. al., 2015). Categories for expenditures in FY 13/14 are shown in Figure 10.9, below. Figure 10.9: Expense Categories FY 13/14 Interest Fiscal Agent Expense 1% 2% Depreciation 22% Operating Expense Admin 50% 25% Source: Damore et. al., 2015. LONG-TERM LIABILITIES AND DEBTS Upgrading the water, sewer, and recreation facilities represents a significant capital improvement. To finance these capital expenditures, the PUD has encumbered loans from a variety of sources, including the previously described North Tahoe Building Corporation. The PUD is currently paying off these long term debts. Current Liabilities cay be paid from “Current Assets” ($1,031,835 as of June 2014) or from “Restricted Assets” ($118,361 as of June 2014). Noncurrent Liabilities stand at $3,947,528 as of June 2014 (Damore et.al. 2015). CAPITAL IMPROVEMENTS The Dollar Pump Station Rehabilitation project was the most significant improvement projected funded through the Sewer Fund recently, and it accounted for $2,311,789 of the increase in the Construction in Process portion of fixed assets. The Minnow Water Main Replacement Project was the most significant improvement projected funded through the Water Fund last year at a cost of $346,207. Private land developers also contribute capital improvements to the District to serve new housing and commercial developments (Damore et.al., 2015). The District regularly updates its capital improvement plan and makes it available via its website. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-40 North Tahoe and Martis Valley MSR RATE RESTRUCTURING In 2007, the District passed a rate increase in order to cover the necessary funds for a capital replacement program, as outlined in the CIP. The CIP projects include design, construction, or rehabilitation of District buildings or facilities; public infrastructure design and construction; and park design and construction projects. Water Department funding comes exclusively from user rates. Water rates are shown below in the District’s Table 10.9. A typical single-family residential home pays a water service fee of approximately $65.27 per month and this allows for 6,000 gallons per month and 200 gallons per day, with additional charges with every additional 1,000 gallons used monthly. Rates for multi-family and mixed-use uses vary depending on meter size. Sewer Department funding comes primarily from user rates and a portion of the property tax revenue that is collected by Placer County. A typical single-family residential home pays a monthly sewer service fee of approximately $19.06. Rates vary for other types of uses depending on a number of factors, such as type of service connection (i.e. multi-family or commercial). Commercial rates may vary depending on the type of establishment; for example, the number of seats in a restaurant, number of service bays at a service station, etc. Sewer connection charges for residential uses (both single- and multi-family) are $3,619 per unit. Other sewer connection fees vary similar to the sewer rates. Sewer rates are shown in Table 10.10 below. Sewer connection fees are shown in Table 10.11 below. Water and sewer rates are updated annually and published on the District’s website at: http://ntpud.org/rate-information. User fees for recreation facilities are also collected by NTPUD. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-41 North Tahoe Public Utility District Water Rate Table January 1, 2015 - December 31, 2015 Includes a Water Rate Increase effective: January 1, 2015 0.00% Includes a connection fee increase effective: January 1, 2015 1.30% Includes increase in Installation and Tap fees effective: January 1, 2015 1.30% Base Charge and Gallons Allowed Single Family Residence Base Charge System State/Federal Gallons Allowed Meter Size per Month Replacement Fee Mandate Fee Monthly Daily (any meter size) $ 42.02 $ 21.84 $ 1.41 6,000 200 Multi Residential Properties Base Charge Monthly System State/Federal Gallons Allowed Meter Size per Month Plus Supplemental Charge Replacement Fee Mandate Fee Monthly Daily 3/4" and 5/8" $ 37.88 + (# SFR) * $ 10.29 $ 21.84 $ 1.41 6,000 200 1" $ 66.31 + (# SFR) * $ 10.29 $ 34.32 $ 1.41 10,500 350 1 1/2" $ 170.53 + (# SFR) * $ 10.29 $ 88.25 $ 1.41 27,000 900 2" $ 257.67 + (# SFR) * $ 10.29 $ 1 33.35 $ 1.41 40,890 1,363 3" $ 454.73 + (# SFR) * $ 10.29 $ 2 35.32 $ 1.41 72,000 2,400 4" $ 708.65 + (# SFR) * $ 10.29 $ 366.73 $ 1.41 112,200 3,740 Mixed Use Properties - Commercial / Industrial Base Rate Multiplier System Gallons Allowed Meter Size per month 130% Replacement Fee Monthly Daily 3/4" $ 37.88 $ 49.24 $ 21.84 6,000 200 1" $ 66.31 $ 86.20 $ 34.32 10,500 350 1 1/2" $ 170.53 $ 221.69 $ 88.25 27,000 900 2" $ 257.67 $ 334.97 $ 1 33.35 40,890 1,363 3" $ 454.73 $ 591.15 $ 2 35.32 72,000 2,400 4" $ 708.65 $ 921.25 $ 366.73 112,200 3,740 Common Area Meter (any meter size) $ 13.84 $ - $ - 0 0 Metered Water Charge - metered use over monthly gallons allowed Tier One Tier Two Gallons Allowed Gallons Used Gallons Used Rate per 1,000 Gallons Meter Size Monthly Daily Over Through Over Tier One Tier Two Single Family Residence (any meter size) 6,000 200 6,000 40,500 40,500 $ 3.06 $ 5.24 Common Area Meter (any meter size) 0 0 0 40,500 40,500 $ 3.06 $ 5.24 All Other 3/4" and 5/8" 6,000 200 6,000 40,500 40,500 $ 3.06 $ 5.24 1" 10,500 350 10,500 45,750 45,750 $ 3.06 $ 5.24 1 1/2" 27,000 900 27,000 115,500 115,500 $ 3.06 $ 5.24 2" 40,890 1,363 40,890 133,500 133,500 $ 3.06 $ 5.24 3" 72,000 2,400 72,000 160,500 160,500 $ 3.06 $ 5.24 4" 112,200 3,740 112,200 260,500 260,500 $ 3.06 $ 5.24 Connection Fees Effective Jan 1, 2015Effective Jan 1, 2015 Effective Jan 1, 2015 Effective Jan 1, 2015Effective Jan 1, 2015 Connection Fire Service Capacity / Demand Meter Size Fees Installation Tap Fee & Detector Check Component Single Family Residence (any meter size) $ 6 ,817 $ 1,376 $ - - $ 1 0,407 All Other 3/4" or 5/8" $ 1 1,957 $ 1,376 $ - - $ 10,407 1" $ 1 1,957 $ 1,681 $ 5 30 $ 1,023 $ 10,407 1 1/2" $ 3 0,750 $ 2,903 $ 6 98 $ 2 ,679 $ 27,390 2" $ 4 6,470 $ 4,901 $ 7 88 $ 2 ,886 $ 41,500 3" $ 8 2,010 $ 6,151 $ 1 ,391 $ - $ 74,110 4" $ 1 27,801 $ 7,968 $ 1 ,391 $ - $ 115,801 6" - As Determined $ - $ - As Determined Fire Service (any meter size) $ 1 ,795 $ - $ - $ - $ - MONTHLY FEDERAL/STATE MANDATE FEE $ 1 .41 FIRE PROTECTION SYSTEM RATES: $ 3 .60 FIRE HYDRANTS $ 2 .58 MONTHLY COMMON AREA WATER METER RATE $ 1 3.84 WATER DELIVERY CHARGE (1/2 TIER 1) $ 1 .64 K:\Accounting\Rates\Water Rate Schedule January 2015.xls - January 1 2015 EXHIBIT A, TABLE 2 SEWER RATES & FEES EFFECTIVE JANUARY 1, 2015 EFFECTIVE BEGINNING JANUARY 1, 2010, WITH NO CHANGE IN 2010, 2011, 2012, 2013, 2014, 2015 CHARGE PER UNIT TYPE OF CONNECTION CODE UNITS MONTHLY ANNUALLY RESIDENTIAL RATES RESIDENTIAL R LIVING UNIT $ 9.50 $ 1 14.00 SYSTEM REPLACEMENT FEE SSR LIVING UNIT $ 8.15 $ 9 7.80 STATE/FEDERAL MANDATE FEE MAN LIVING UNIT $ 1.41 $ 1 6.92 COMMERCIAL RATES MOTEL RES/STOCK COOP/STUDIO A LIVING UNIT $ 8.12 $ 9 7.44 OTHER BUSINESS B NO. PLUMBING FIXTURE UNITS $ 1.22 $ 1 4.64 CHURCHES C NO. OF SEATS $ 0.12 $ 1 .44 OTHER BUSINESS (NON-TAXED) E NO. PLUMBING FIXTURE UNITS RESTAURANTS & BARS F NO. SEATS INSIDE $ 0.94 $ 1 1.28 D NO. SEATS OUTSIDE $ 0.31 $ 3 .76 MARKETS G NO. PLUMBING FIXTURE UNITS $ 2.15 $ 2 5.80 BARBER SHOPS H NO. SERVICE CHAIRS $ 3.23 $ 3 8.76 SNACK BARS J NO. PLUMBING FIXTURE UNITS $ 0.94 $ 1 1.28 CAMPSITE WITH SEWER CONNECTION K NO. OF SITES $ 6.13 $ 7 3.56 LAUNDRIES L NO. 10 LB MACHINES $ 5.02 $ 6 0.24 MOTEL W/O KITCHEN/GUEST FACILITIES M LIVING UNIT $ 3.07 $ 3 6.84 MOTEL WITH KITCHEN N LIVING UNIT $ 4.00 $ 4 8.00 ANIMAL SHELTER O $ 33.61 $ 4 03.32 SERVICE STATIONS P NO. SERVICE BAYS $ 16.40 $ 1 96.80 CAMPSITE W/O SEWER CONNECTION Q NO. OF SITES $ 5.36 $ 6 4.32 THEATERS T NO. OF SEATS $ 0.12 $ 1 .44 SCHOOLS U NO. OF SEATS $ 0.02 $ 0 .24 BEAUTY SHOPS V NO. OF SERVICE CHAIRS $ 5.36 $ 6 4.32 MARINA BOAT PUMPING FACILITY X EACH $ 10.62 $ 1 27.44 SWIMMING POOLS Y PER POOL $ 2.44 $ 2 9.28 K:\Accounting\Rates\SEWER RATE JAN 2015.xls - Sewer Exhibit A, Table 2 - 2015 EXHIBIT A, TABLE 1 Effective January 1, 2015 SEWER CONNECTION FEES TYPE OF CONNECTION CODE CONNECTION CHARGE RESIDENTIAL R $ 3,619 PER UNIT RESIDENTIAL (Non-Taxed) R $ 3,619 PER UNIT RESIDENTIAL STUDIO A $ 3,619 PER UNIT MOTEL WITHOUT A KITCHEN OR HOTEL M $ 3,619 PER UNIT MOTEL WITH A KITCHEN N $ 3,619 PER UNIT CAMPGROUND OR TRAVEL TRAILER PARK WITH INDIVIDUAL SEWER CONNECTION K $ 1,807 PER CAMPSITE CAMPGROUND OR TRAVEL TRAILER GENERAL SEWER FACILITY $ 1,375 PER CAMPSITE MOBILE HOME PARK R $ 3,619 PER SPACE RESTAURANTS AND BARS F $ 357 PER SEAT SNACK BARS B $ 357 PER PLUMBING FIXTURE UNIT LAUNDRIES L $ 1,807 PER 10# MACHINE THEATER T $ 34 PER THEATER SEAT SERVICE STATIONS P $ 7,204 PER SERVICE BAY $ 357 + PER PLUMBING FIXTURE UNIT BARBER SHOPS H $ 1,090 PER SERVICE CHAIR MARKETS G $ 545 PER PLUMBING FIXTURE UNIT CHURCHES C $ 34 PER SEAT BEAUTY SHOPS V $ 1,807 PER SERVICE CHAIR MARINA BOAT PUMPING FACILITIES X $ 4,674 EACH PUMPING FACILITY OTHER BUSINESSES B $ 357 PER PLUMBING FIXTURE UNIT OTHER BUSINESSES (Non-Taxed) B $ 357 PER PLUMBING FIXTURE UNIT USES NOT STATED ABOVE AS DETERMINED ADDITIONAL CHARGES TAP FEE - If required $ 450 PER SINGLE FAMILY UNIT K:\Accounting\Rates\SEWER RATE JAN 2015.xls - Sewer Exhibit A, Table 1 - 2015 North Tahoe and Martis Valley MSR COST AVOIDANCE One of the primary methods the District uses to avoid unnecessary costs is to share facilities and to collaborate with sister organizations and agencies. For example, NTPUD collaborated with the Tahoe City Public Utility District in the development of a shared well. NTPUD also outsources wastewater treatment to the TTSA. Please see the section entitled “shared facilities” for water, wastewater, and recreation in the above pages of this MSR Chapter for more information. In addition to sharing facilities, the District also reduces costs by holding its Board of Directors meetings and other meetings at the North Tahoe Event Center, a District-owned facility. The District owns its offices. District staff shares information and other resources to maintain an efficient work environment and keep rates as low as possible. The Board of Directors is compensated at a rate of $400 per month, not to exceed $4,800 in any calendar year under the provisions of Section 16002 of the Public Utility District Code. The District has also sought cost-saving opportunities where it can by applying for and receiving grants to offset some costs. In summary, NTPUD utilizes a variety of techniques to reduce the cost of providing services to customers. The North Tahoe Public Utility District and the Tahoe City Public Utility District provide similar services (wastewater collection, water, parks and recreation). Additionally, NTPUD is located adjacent to and northeast of the Tahoe City Public Utility District. Given the similarity of service provision and geographic proximity, it is recommended that prior to the next MSR or SOI Update for these districts (approximately year 2023), the two districts should jointly consider whether it is possible to gain efficiencies through shared services or infrastructure and send a one-page memo to LAFCo describing the results of this joint consideration. 10.12: CHALLENGES One challenge the District faces is the provision of funding for capital improvements to its park and recreation facilities. Although the district is working diligently to address this issue, an immediate solution is not clear. Maintaining water quality at Lake Tahoe is a challenge shared with many water service providers in the region. The District is cooperating with regional water service providers and with state and federal regulators to keep up-to-date on water quality issues. Additionally, complying with Governor Brown’s mandatory water cuts (Executive Order # B-29-15) to deal with the multi-year drought will continue to be a challenge. One challenge that most water districts in California face is a recent judicial decision by the 4th District Court of Appeal which ruled in April 2015 that the tiered rates, which charge more for excessive water use violates Proposition 218, which requires government fees be set in accordance with cost. The tiered rate structure has been utilized by water districts to encourage water conservation. NTPUD will continue to work with state agencies and other water providers to study options. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-45 North Tahoe and Martis Valley MSR The District has identified no other regulatory issues, infrastructure issues, or other challenges within the next 12 months. 10.13: DETERMINATIONS GROWTH AND POPULATION PROJECTIONS 1. The North Tahoe Public Utility District (NTPUD) had 5,524 sewer connections and 3,828 water connections as of 2014. The estimated permanent population served is 5,486 people as of 2014. 2. The population served by the District is seasonal and comprised of second homes and vacation rentals in part. Overnight visitation at maximum capacity is estimated to be 11,138 persons; although this number fluctuates depending on the season, increasing in summer and winter. 3. The District has a very low growth rate for the resident population, coupled with a projected increase in weekend/seasonal visitor population. Based on the U.S Census compounded growth rate, the District assumes a growth rate of 0.74 percent for the next 20 years. 4. The Urban Water Management Plan (2013) assumed that the maximum additional development within the NTPUD boundaries is 1,002 dwelling units over the next 20-year period, a figure which corresponds to the historical average growth rate of 0.74 percent. DISADVANTAGED UNINCORPORATED COMMUNITIES 5. Within the District, the community of Kings Beach is classified as DUCs (CDWR, 2014). As described in this MSR, Kings Beach does receive water, wastewater, and fire protection services. No public health and safety issues have been identified. 6. Grant funding is available for disadvantaged unincorporated communities. Please see Chapter 3 for additional details. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-46 North Tahoe and Martis Valley MSR PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES 7. NTPUD was established in 1948 to provide sewer services to the residents of the Lake Tahoe’s north shore. In November 1967, water services were added to the District’s responsibilities, and in 1968 the District added the Recreation and Parks Department. 8. The District currently provides water treatment and distribution, wastewater collection, and recreational opportunities to its customers. 9. Repairs and replacements will be necessary on an ongoing basis for water treatment and delivery infrastructure, as well as wastewater collection infrastructure. 10. The District’s total water deliveries of 1,485 acre-feet per year in 2010 are projected to increase to 3,079 acre-feet per year in 2030. The District’s Urban Water Management Plan (2013) states that the supply will meet this demand in normal and dry years because Lake Tahoe provides a readily available source of water, and groundwater wells are not impacted by dry years. The number of water accounts is projected to increase to a total of 4,478 in 2030, using an Annual Water Connections Growth Rate of 0.74 percent. 11. The District’s water supply comes from Lake Tahoe and three groundwater wells. Water rights to Lake Tahoe allow for the use of up to 23,000 acre-feet per year in the State of California within the Lake Tahoe Basin. There is no gross diversion specifically allocated to the District’s service area. The most recent recommendation from a 1999 Brown & Caldwell report recommended allocating 3,920 acre-feet per year to the District's service area, but this figure is outdated and is therefore subject to review and reconsideration. 12. Demand for all services rises dramatically in the winter and summer months when there is an influx of tourists and second homeowners. 13. The District already works with other service providers, such as Truckee-Tahoe Sanitation Agency and Tahoe Unified School District, for collaboration of service provision. The District should continue to examine the provision of service in conjunction with other service providers in the area to determine if infrastructure needs can be addressed more efficiently. 14. It is noted that three districts in the North Tahoe Martis Valley area provide recreation services (ASCWD, North Tahoe PUD, and Tahoe City PUD) as shown in Table E1-1 in the Executive Summary. Other recreation service providers in the region include the Truckee Donner Recreation and Park District, California State Parks, and the U.S. Forest Service. Given this plethora of recreation service providers, LAFCO and its subject districts should study whether additional efficiencies could be gained through structural or organizational changes. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES 15. NTPUD’s operations and maintenance activities are funded through service charges, a Mello-Roos assessment, fees, and taxes. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-47 North Tahoe and Martis Valley MSR 16. Capital improvement projects are typically funded through the enterprise funds (which come from fees) and grants. 17. The NTPUD prepares a five-year CIP that identifies the projects most needed over the next five years and their funding sources. 18. The FY 2013-2014 audited financial statement demonstrates adequate finances for the continued ability of the District to provide services. 19. Rates should continue to be reviewed and adjusted as necessary to fund District costs and provide for capital improvements and operation and maintenance of water, sewer and recreational facilities as needed. STATUS OF, AND OPPORTUNITIES FOR, SHARED FACILITIES 20. The North Tahoe Public Utility District and the Tahoe City Public Utility District provide similar services (wastewater collection, water, parks and recreation). Additionally, NTPUD is located adjacent to and northeast of the Tahoe City Public Utility District. Given the similarity of service provision and geographic proximity, it is recommended that prior to the next MSR or SOI Update for these districts (approximately year 2023), the two districts should jointly consider whether it is possible to gain efficiencies through shared services or infrastructure and send a one-page memo to LAFCo describing the results of this joint consideration. 21. NTPUD has a solid track record of working cooperatively with neighboring local agencies on a variety issues as described above in the text of this MSR chapter. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATION EFFICIENCIES 22. NTPUD budgeted nearly $1.2 million for its utility expenses in the FY 2014 budget. This amount accounts for over 10 percent of the District’s expenses. The District is actively working with Liberty Energy to reduce costs by shifting to a different rate structure to capture time of use billing and splitting sites apart to capture lower tiered structures. However, the District should continue to investigate efficiencies in its electricity use. In the long-term future, the District could explore the use of new technology to develop and capture renewable energy to reduce its annual expenditures on utility costs. 23. The Urban Water Management Plan (2013) provides action measures to reduce the high percentage of unaccounted-for water. The District has been very assertive in taking action to address this issue and actions taken to date include: replacing leaking mains, implementing strict metering requirements for hydrant water use (fire district, flushing, contractors, etc.), eliminating bleeders, etc. It is recommended that NTPUD continue to implement these measures and other water conservation efforts. 24. NTPUD is a member of two JPAs for the operation of a common risk management and insurance program. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-48 North Tahoe and Martis Valley MSR 25. The NTPUD is locally accountable through adherence to applicable government code sections, open and accessible meetings, and dissemination of information and encouragement of participation in their process. 26. Board meetings are publicly noticed and comply with the Brown Act, California’s open meeting law. They are held every month. 27. The District practices cost reduction through careful purchasing, bidding processes, staff workload reductions, applications for grants and other mechanisms. 28. No boundary changes are pending or proposed at this time. 29. The District follows standard accounting procedures. 30. All Board members have access to District data, records and information. 31. The District has good public outreach, with a public website featuring Board agendas and meeting minutes, fiscal information, staff contact information, general information about services provided, rates, environmental compliance documents, planning documents, and news stories about its current projects. 32. The District’s strategic plan was adopted in January 2016 and it outlines the mission statement, vision statement, and goals and objectives. This strategic plan helps the District improve its planning efforts, accountability, and transparency. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-49 North Tahoe and Martis Valley MSR 10.14: REFERENCES California, State of. Department of Water Resources. 2015. Website entitled “Resources - Disadvantaged Communities (DAC) Mapping Tool”. Available on-line at: <http://www.water.ca.gov/irwm/grants/resources_dac.cfm>. Accessed 11/2/15. California, State of. Secretary of State. Certificate of Incorporation of North Tahoe Public Utility District. 23 July 1948. Damore, Hamric & Schneider, Inc. Certified Public Accountants. North Tahoe Public Utility District Management’s Discussion and Analysis Financial Statements Supplementary Information and Independent Auditor’s Report For the Fiscal Years Ended June 30, 2014 and 2013. February 9, 2015. 41 pages. Available on-line at: <http://ntpud.org/financial-information>. Accessed 12April2015. Donner Summit Public Utility District Board of Directors. Ordinance 01-2012 to Amend and Modify Ordinance 2008-01, Setting Sewer Rates and Charges. February 14, 2012. North Tahoe Public Utility District. 2010-2011 Organizational Chart. <http://ntpud.org/human-resources>. Accessed 15 December 2013. North Tahoe Public Utility District. 2013/2014 Annual Budget. Adopted June 11, 2013. North Tahoe Public Utility District. About the North Tahoe Public Utility District. <http://ntpud.org/about-north-tahoe-public-utility-district>. Accessed 15 December 2013. North Tahoe Public Utility District. Adopted Capital Improvement Program Fiscal Year 2014- 2015, Five-Year Focus. November 2014. Available on-line at: <http://ntpud.org/financial-information>. Accessed 15January2015. North Tahoe Public Utility District. Compensation and Benefits: Board of Directors, General Manager/CEO, Accountant. <http://ntpud.org/human-resources>. Accessed 15 December 2013. North Tahoe Public Utility District. Current Water/Sewer Projects. <http://ntpud.org/watersewer>. Accessed 15 December 2013. North Tahoe Public Utility District. Main Sewer Pump Station Master Plan. 2009. <http://ntpud.org/master-plans>. Accessed 20February2015. North Tahoe Public Utility District. Management’s Discussion and Analysis, Financial Statements, Supplementary Information and Independent Auditor’s Report. For the Fiscal Years Ended June 30, 2012 and 2011. North Tahoe Public Utility District. Risk-Based Sewer System Management Plan. Lake Tahoe Basin, California. Adopted October 8, 2103. <http://ntpud.org/master-plans>. Accessed 20February2015. North Tahoe Public Utility District. Sewer Connection Fees. Effective January 1, 2013. North Tahoe Public Utility District. Sewer Master Plan. Adopted November 13, 1991. North Tahoe Public Utility District. Sewer Rates and Fees Effective January 1, 2013. North Tahoe Public Utility District. Water Rate Table. January 1, 2013 – December 31, 2013. North Tahoe Public Utility District. Master Water Plan. 1999. < http://ntpud.org/master- plans>. Accessed January 15, 2015. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-50 North Tahoe and Martis Valley MSR North Tahoe Public Utility District. Utility Operations Webpage. <http://ntpud.org/utility- operations>. Accessed 1May2015. North Tahoe Recreation & Parks. <http://northtahoeparks.com>. Accessed 15 December 2013. North Tahoe Public Utility District. 2010 Urban Water Management Plan. Prepared by PR Design & Engineering. Adopted July 9, 2013. 115 pages. <http://ntpud.org/sites/ def ault/files/docs/ engineering/ NTPUD%20UWMP%20Adopted%20July%209%202013.pdf > North Tahoe Public Utility District Recreation and Parks Department. 2006-2007 Master Plan. Prepared by Royston Hanamoto Alley & Abey. Available on-line at: <http://ntpud. org/sites/default/files/docs/parks/Parks%20-%20FINAL_NTPUD%20Parks%20Master %20Plan.pdf>. Accessed October 2013. Placer Local Agency Formation Commission. Municipal Service Review North Tahoe & Martis Valley. 2004. Tahoe Water Suppliers Association. 2009. Sanitary Survey and Watershed Control Program 2009 Update. Madonna Dunbar, Editor. 155 pgs plus appendices. Available on-line at: <http://ntpud.org/sites/default/files/docs/conservation/TWSA%20Sanitary%20Survey %202009%20Update%20FINAL.pdf>. Draft Final MSR, August 2018 Chapter 10, North Tahoe PUD 10-51 North Tahoe and Martis Valley MSR C 11 HAPTER Sierra Lakes County Water District Photo Courtesy of Placer County E-newsletter, October 2015. This Municipal Service Review (MSR) chapter describes the Sierra Lakes County Water District. This District was formed in 1961 and currently provides water treatment and distribution, and sewage collection services within its service area. Table of Contents 11.1: Agency Profile ................................................................................................. 11-2 11.2: Overview of District .......................................................................................... 11-3 11.3: Formation and Boundary .................................................................................... 11-5 11.4: Accountability and Governance ............................................................................ 11-7 11.5: Management Efficiencies and Staffing .................................................................... 11-8 11.6: Population and Growth ...................................................................................... 11-8 11.7: District Services .............................................................................................. 11-12 11.8: Financing ..................................................................................................... 11-18 11.9: Opportunities to Share Facilities ......................................................................... 11-22 11.10: Challenges .................................................................................................... 11-23 11.11: Service Adequacy ............................................................................................ 11-23 11.12: Determinations .............................................................................................. 11-24 11.13: References ................................................................................................... 11-28 Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-1 North Tahoe and Martis Valley MSR 11.1: AGENCY PROFILE Sierra Lakes County Water District Type of District: County Water District Enabling Legislation: County Water District Law: Water Code §§ 30000-33901 Functions/Services: Water treatment and distribution, and sewage collection Main Office: 7305 Short Road, Soda Springs, CA Mailing Address: P.O. Box 1039, Soda Springs, CA 95728 Phone No.: 530-426-7800 Fax No.: 530-426-1120 Web Site: slcwd.org Email: anna.nickerson@slcwd.org General Manager: Bill Quesnel Email: bquesnel@ltol.com Phone: 530-550-8068 Fax: 530-550-8069 Board President: Michael Lindquist Phone: c/o 530-426-7800 Fax: 530-426-1120 Governing Body: Elected Board of Directors – 4-year terms Name Role Terms Ends Karen Heald Director 12/31/2020 Dan Stockton Vice President 12/31/2018 Bill Oudegeest Director 12/31/2018 Dick Simpson Director 12/31/2020 Michael Lindquist President 12/31/2020 Meeting Schedule: Second Friday of each month at 6:00 p.m. Meeting Location: 7305 Short Road, Soda Springs, CA Date of Formation: February 28, 1961 Other: Landowner/registered voter district by special legislation (Water Code § 30700.6) Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-2 North Tahoe and Martis Valley MSR 11.2: OVERVIEW OF DISTRICT The Sierra Lakes County Water District (SLCWD/District) provides water service and sewage collection services. SLCWD contracts with Donner Summit Public Utility District (DSPUD) for treatment and disposal of its wastewater. This Municipal Service Review is the first for the District. TYPE AND EXTENT OF SERVICES The District provides domestic water service and sewage collection for its customers, transporting sewage to DSPUD for treatment and disposal. Primary activities for the District’s water system include repairs and maintenance of infrastructure (e.g., tanks, pipeline, and meters), water treatment, water testing, preparation of an annual report for state monitoring agencies and obtaining permits from state authorities. The District’s primary sewage system activities include sewage collection, and repairs and maintenance of infrastructure. SLCWD has an interagency agreement with DSPUD to provide wastewater treatment and disposal services. SLCWD collects and transports wastewater to the DSPUD wastewater treatment plant, and DSPUD treats and disposes of the effluent. The District’s FY 2012-2013 operating budget was $1,623,058. The District is a public corporation organized in 1961 under the County Water District Law of the California Water Code (Division 12, commencing at §30000) for the primary purpose of providing water to the residents of the Serene Lakes subdivision in Placer County. Approximately 804 of the 1,039 residential lots in Serene Lakes receive service from the Water District, and 200+ lots remain undeveloped. The District also provides water service and sewage collection to one commercial establishment within the District: Royal Gorge Cross Country Ski Resort. Of the 1,060 total parcels in Serene Lakes, 1,039 are residential and 21 are for other uses. These other uses include 15 parcels for District use including the Lake bottom parcel (recently purchased by the District from the Truckee Donner Land Trust). Additionally, the water district owns one parcel that contains a fire station and one parcel that contains a beach and recreation facilities (owned by District and leased to the Serene Lakes Property Owners’ Association). Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-3 North Tahoe and Martis Valley MSR Figure 11.1: District-owned Parcels **Note: District-owned parcels are shown in green. The lake bottom parcel (shown in blue) is also owned by the District. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-4 North Tahoe and Martis Valley MSR Another type of land-use is one privately owned parcel that contains the former Ice Lake Lodge (currently used as a three-family residence). The Royal Gorge cross country ski area is also located within the District boundaries. In addition to the water and wastewater services provided by the Sierra Lakes County Water District, the community receives fire protection services from the Truckee Fire Protection District1; police protection services from the Placer County Sheriffs Department; educational services from the Tahoe Truckee Unified School District; road services from the Placer County Public Works Department; and garbage removal and recycling are handled by a private firm, Tahoe Truckee Sierra Disposal, under contract, and located at the Eastern Regional Landfill. LOCATION AND SIZE The District is located in the unincorporated area of northeastern Placer County and encompasses approximately four square miles (2,450 acres). Two very small unincorporated communities, Soda Springs and Norden, are in closest proximity to the District, but the Town of Truckee is the major socioeconomic center of the region. SLCWD is in the Serene Lakes area of Placer County and in the watershed of the North Fork of the American River. 11.3: FORMATION AND BOUNDARY On February 28, 1961, SLCWD was formed by the Placer County Board of Supervisors. The District was incorporated on March 7, 1961. The District was initially formed to provide domestic water, sewage transmission, and sewage treatment in a community leachfield. DSPUD was also using the same form of treatment, and when the State Water Resources Control Board (SWRCB) found this form of sewage treatment to be inadequate, DSPUD and SLCWD entered into a Service Agreement in 1971 for DSPUD to treat SLWCD’s wastewater. Since DSPUD’s construction of a wastewater treatment plant, the District has contracted with DSPUD to treat its wastewater. BOUNDARY HISTORY The formation of SLCWD effectively transferred water rights and the responsibility to provide water from a campground called the Sierra Lakes Club, to the District. Since that time, Sierra Lakes Club has been succeeded by eight different residential subdivisions and is now called Serene Lakes and totaling 1,060 parcels. The District boundary also includes 13 parcels outside the Ice Lakes/Serene Lakes development, including nine large parcels, undeveloped except for cross-country ski facilities owned by Truckee Donner Land Trust, one lot owned by Placer County, one lot owned by the District and containing a water storage tank. The District boundaries encompass approximately 2,450+ acres. Figure 11.2 shows the District boundaries and other significant District features. 1 http://www.truckeefire.org/ Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-5 Lake Van Norden Kidd Lakes Rd. S o d a S p r in g s R d . Palisade Ice Lakes Lake P a lis a d e C r e e k k e e r C a n e r e S P Sierra Lakes County Water District a lis a d Sphere of Influence e C r e County Boundary e k 0 0.25 0.5 Parcels Miles Parcel, Roads and District Boundary from Placer County GIS. Figure 11-2 SIERRA LAKES COUNTY WATER DISTRICT North Tahoe and Martis Valley MSR SPHERE OF INFLUENCE On April 12, 2000, Placer LAFCo updated the District’s Sphere of Influence (SOI). The SOI is smaller than its actual boundary. It is not clear whether that was intentional or was a mapping error. It is recommended that Placer LAFCo review the SOI and consider aligning it to be co-terminus with the District boundaries. EXTRA-TERRITORIAL SERVICES The District does not provide any extra-territorial services outside its boundaries. AREAS OF INTEREST No specific areas outside the District boundaries have been identified that require services from the District. 11.4: ACCOUNTABILITY AND GOVERNANCE The District is governed by a five-member Board of Directors, which is elected by both registered voters and property owners within the District; people who own vacation homes in the subdivision but reside and vote elsewhere can still vote on District issues, even though they are not full-time residents (see Water Code § 30700.6). Regularly scheduled meetings are held on the second Friday of each month at 6:00 p.m. Meetings are located at the main office, at 7305 Short Road, Soda Springs, CA. The current Board members are as follows: Name Role Term Ends Karen Heald Board Member 12/31/2020 Dan Stockton Vice President 12/31/2018 Bill Oudegeest Board Member 12/31/2018 Dick Simpson Board Member 12/31/2016 Michael Lindquist President 12/31/2020 All meetings are publicly posted at least 72 hours prior to Board meetings. Postings are located on public information boards in the District and on the District’s and local property owners’ association websites. The District posts its contact information on its CONTACT INFORMATION: website at www.slcwd.org, and comments and complaints can be sent by mail, email, or telephone. PHONE NO.: (530) 426-7800 In 2012 the District received four utility complaints. FAX: (530) 426-1120 The District Board received about 83 protests of its MAILING ADDRESS: P.O. BOX 1039, rate increases in 2012. SODA SPRINGS, CA 95728 Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-7 North Tahoe and Martis Valley MSR The District has adopted policies addressing budget preparation, fixed asset accounting, investment of funds, and expense authorization. All of these policies are consistent with the California Special District Association’s sample policy handbook. Budgets are adopted in public meetings and are available to the public upon request. The last independent auditor’s report was dated September 4, 2015, and was attached to the District’s Financial Statements. The audit found that there were no issues of noncompliance with financial regulations that could have an effect on the financial well-being of the District. The District’s mission statement is “to provide quality water treatment/distribution and sewer collection services at the lowest possible cost.” Its stated strategic plan is to “to provide the infrastructure and organizational framework to continuously provide quality service to all present and anticipated customers.” 11.5: MANAGEMENT EFFICIENCIES AND STAFFING The District employs three full-time employees, all utility system operators. Utility system operators repair, maintain, and operate the water treatment plant, water distribution system, and sanitary sewer collection and export system. They implement preventative maintenance activities and respond to emergency situations such as sanitary sewer overflows, check water and sewer connections by home builders, and oversee construction activities by contractors engaged in the District. The General Manager and Financial Consultant are provided by Truckee-based consulting firms, allowing the District to avoid paying for long-term retirement and health benefit obligations. The General Manager is responsible for management of field operations and maintenance activities, oversees the work of utility system operators, trains field crews, leads emergency response, coordinates regulatory compliance, manages capital projects, prepares the capital budget, participates in the operational budget, manages district properties, attends District meetings, and reports monthly to the District Board. District Board members are compensated at the rate of $180 for each meeting, pursuant to Ordinance 95 of the SLCWD Board of Directors passed September 12, 2013. The Board of Directors establishes policy, plans strategy, leads staff, allocates resources, delegates responsibility, authorizes the District Engineer and outside contractors to perform services, and may serve as public information officers. 11.6: POPULATION AND GROWTH POPULATION The 2010 US Census does not provide discrete demographic statistics for the Serene Lakes area. The SLCWD service area is encompassed by Census Tract 220.14, which covers a much larger area than the District’s service boundaries. The District was unable to provide a Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-8 North Tahoe and Martis Valley MSR current and projected population within the service area boundaries or SOI. For purpose of this study, several calculated projections are made based upon a few basic assumptions. Land-use is correlated with population. Sierra Lakes County Water District primarily serves single-family residential uses with some limited commercial uses, such as a ski resort lodge, a fire station and a homeowners’ association beach. There used to be a 20-room hotel/restaurant commercial business located next to the Lake; however this building has since been converted to 3-unit multi-family residence. In December 2012, the Truckee Donner Land Trust and the Trust for Public Land acquired the surrounding 3,000-acre Royal Gorge property. In January 2013, the District purchased the Lake bottom parcel from the Land Trust. Of the 1,039 residential parcels in the service area, there are currently 804 dwellings with service connections (assumed built) within the District. Based on a 2009 customer survey with 73 percent responding, 10 percent of the homes are occupied on a year-round basis. Based on a 10 percent full time occupancy rate, this would mean that 80 dwellings are occupied on a full-time basis. Given an average of 2.56 persons per household, this indicates that the permanent population living within the District’s boundaries is 205 persons. At buildout, this would mean that of the 1,039 residential lots, approximately 104 dwellings could be occupied on a fulltime basis. Homes at Serene Lakes are occupied by a permanent population and by vacation homeowners and renters. If the 804 existing homes are occupied (i.e. maximum occupancy), the population is estimated at approximately 2,058 (804 homes x 2.56 people per household [Placer County 2009 Housing Element2]). This maximum occupancy calculation is a worst case scenario. During peak winter season (New Year’s) and peak summer season (Labor Day and July) an 80% occupation rate would be more likely. From 2000 to 2010, Placer County as a whole had a 3.4 percent AAGR for population, a rate nearly three times California’s population AAGR of 1.0 percent during this period. Most of this growth occurred in the incorporated areas of the county where the AAGR was 5.0 percent between 2000 and 2010. Growth in unincorporated areas of the county slowed to an AAGR of 0.7 percent. For purposes of projections realizing that market forces are highly unpredictable population growth assumptions along with actual projections are provided below are as follows: 2 The population density fluctuates between 26 and 528 people per square mile (104 people/3.9375 square miles to 2,079 people/3.9375 square miles). Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-9 North Tahoe and Martis Valley MSR Table 11.1: Population – 2000-2010 and Projected to 2030 within SLCWD Service Area Based on 10 percent occupancy and 2.59 persons per household Year 2010 act. 20151 20202 20253 20304 Population 203 205 215 231 257 1. Based on 0.7 percent AAGR from 2010 through 2015 2. Assumed 1.0 percent AAPR from 2015 through 2020 3. Assumed 1.5 percent AAPR from 2020 through 2025 4. Assumed 1.75 percent AAPR from 2025 through 2030 In examining the actual permit issuance history over the last 10 years provided by the District, there were 115 water/sewer connection permits issued or an average of 11.5/year (assume 11 per year). During this time, it is noted there was a sewer connection moratorium, but any proposed building would have been issued in subsequent years. PROJECTED GROWTH AND DEVELOPMENT Based upon the average issuance rate described above, the following buildout assumptions through the year 2020 are provided: Table 11.2: Projected Buildout of Serene Lakes Neighborhood Year 2013 act. 20151 20202 20253 20304 Dwellings 803 825 880 935 990 Based on this projection, 100 percent buildout (totaling 1039 residential parcels plus 21 non- residential parcels) should occur in about 2034. This projection includes consideration of the Placer County General Plan which serves as the County’s vision for long-term land use development and conservation. Placer County’s General Plan adopted on August 16, 1994, and updated May 21, 2013, provides goals, policies, standards, and implementation programs to guide the land use, development, and environmental quality of the County. No new development projects have been built within the District boundaries in at least 10 years, and the District is unaware of any planned amendments to the planning documents affecting the service area. As of this writing, approximately 217 parcels remain undeveloped in the service area, and the District has indicated that it expects construction on the remaining connections over the next 27 years. This will result in full buildout of the District. SLCWD sends wastewater to the WWTP at the Donner Summit PUD. The two agencies have an agreement that allows SLCWD to reserve a specific amount of capacity at the treatment plant. There are currently 237 vacant lots within the District’s boundaries; however several of these parcels are owned by the local land trust and will not be developed. A few of the lots are “remainder” parcels that resulted from excess road right-of-way and/or were shown on older subdivision maps but not accepted by the Board of Supervisors and are considered Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-10 North Tahoe and Martis Valley MSR unbuildable. The District has reserved future capacity to serve approximately 237 parcels (personal communication, A. Nickerson, June 2016). The Placer County General Plan designates lake(s) and the immediate surrounding area as Medium Density Residential (3,500-10,000 sq. ft., per lot). A substantial undeveloped area to the west within the District boundary is also designated Medium Density Residential, with some High Density Residential and commercial. This area was recently acquired by Truckee Donner Land Trust (TDLT). As a result, there will be no future potential development on these unimproved lands as TDLT has acquired the land for open space and timberland management. Currently, the Land Trust owns the Royal Gorge property and leases the overland, cross country skiing rights to Soda Springs Ski Resort. There were 7 sewer EDU’s previously assigned to this area (approximately 500 acres). The TDLT has offered to sell those future sewer connections back to the District; however the District must wait until a demand for the connections has been identified before purchasing. Additional lands to the east and south within the District are also now owned by the TDLT. These lands are designated Agriculture-Timber and a portion is designated Resort Recreation on the Placer County General Plan. Similarly with the lands to the west, TDLT will manage these lands for open space, timber management and cross country skiing. In conclusion, the only expected remaining development within the Sierra Lakes County Water District’s boundaries will occur as infill residential development on the remaining 217 undeveloped lots. It is unlikely that District services will be needed to serve lands beyond the “developed” area. DISADVANTAGED UNINCORPORATED COMMUNITIES As described in Chapter 3, LAFCo is required to consider the provision of public services to disadvantaged unincorporated communities (DUCs). Relevant data were reviewed for the Sierra Lakes CWD area. The Serene Lakes community is classified as a DUC by the California Department of Water Resources for “Block Groups”, as shown in Figure 11.3, below. However, when looking at the “Community Tract” level or the “Community Places”, the community is not mapped as a DUC. The U.S. Census 2010 found the median household income (MHI) in the 95728 zip code is estimated at $42,578.3 This is lower than the DUC threshold MHI of less than $48,706 (80 percent of the statewide MHI). However, the zip code 95728 covers a broad geographic range, as shown in Figure 11.4, below. While the broad data does indicate a DUC community, the more detailed data (i.e. DWR data for at the “Community Tract” level or the “Community Places”) does not indicate a DUC. In this case, the authors have chosen to rely upon the more detailed data and it is recommended that LAFCO assume that no DUCs are located with the SLCWD. This area does receive adequate water, wastewater, and fire protection services as detailed in this MSR. No health 3 U.S. Census Bureau, 2009-2013 5-Year American Community Survey. American Fact Finder website: http://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-11 North Tahoe and Martis Valley MSR and safety issues have been identified. Please see Chapter 3, Section 3.6 of this MSR for more information on disadvantaged unincorporated communities. Figure 11.3: DWR Community Block Group DUC Figure 11.4: Map of Zip Code 95828 11.7: DISTRICT SERVICES SERVICE OVERVIEW The District provides water treatment and distribution and wastewater collection and transport in the service area. SLCWD contracts with DSPUD to provide wastewater treatment and disposal. SLCWD collects and transports wastewater to the DSPUD wastewater treatment plant, and DSPUD treats and disposes of the effluent. The table below shows the approximate number of water and wastewater customers since 2003. Table 11.3: Water And Wastewater Customers Service # Customers in # Customers in # Customers in 2003 2008 2012 Water1 680 760 800 Wastewater collection1 680 760 800 1 Measured by number of connections As can be seen in the above table, approximately 120 connections have been added over about 10 years. WATER Ice Lakes Dam was built on Serena Creek in the 1940s to raise the water level of the two natural lakes behind it. It has since been retrofitted in various ways to improve its structural integrity and raise the height for additional water storage. Lake Serena is the northern lake and Lake Dulzura the southern lake. Both lakes overflow into Serena Creek, which ultimately flows into the North Fork of the American River. The two lakes are separated by a narrow Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-12 North Tahoe and Martis Valley MSR isthmus, and when water levels rise above 6,869-feet elevation, water inundates the isthmus and the two lakes become one, referred to as either Ice Lakes or Serene Lakes. Historically, the water has been high enough to keep the isthmus inundated and the two lakes combined. The water is then treated in the lower level of the District offices and from there is piped to the service connections. The District owns and operates Ice Lakes Dam, which is inspected every year by the California Division of Dams. The SWRCB provides water rights, the Placer County Health Department permits the hazardous materials used in the treatment process, and the Placer County Air Quality District permits the emergency generators that serve the plants. In the past, the California Department of Public Health issued permits for the drinking water system; however this state authority was moved to the Drinking Water Division of the California Water Resources Control Board in July 2014. WASTEWATER SLCWD is responsible for the collection of sewage within the District boundaries and delivery of the wastewater to DSPUD’s wastewater treatment plant. DSPUD has recently completed upgrading and expanding their wastewater treatment plant. Beginning in 2015 both connected and non-connected property owners will be assessed for repayment of the DSPUD plant improvements. For more detailed information on the DSPUD wastewater treatment plant upgrade and expansion, please see the MSR chapter on DSPUD. SUPPLY/DEMAND Supply and demand for water and sewer districts are typically impacted by development occurring within the District that could result in an increased demand for these services and need for additional infrastructure. Factors that impact water supply in the District are lake level in summer (a factor of winter precipitation and drought conditions) and formation of ice around the intake pipe in winter. Factors that impact ability to provide wastewater service include control of the operational inflow and infiltration. Minimal development is expected to occur within the District because the area is an isolated community with little growth projected. WATER Water supply for the District is primarily provided via a diversion from Serene Lake using a pipe and pumping plant for water extraction and water is then directed to the water treatment plant. On February 28, 2013, an Amended Permit for Diversion and Use of Water was authorized by the SWCRB. The permit allows for the collection and storage of 1,177 acre- feet (af) in Serene Lakes for municipal, industrial, fish culture, and recreational purposes. The diversion includes 9,000 gallons per day (gpd) for snowmaking purposes at Royal Gorge Cross Country Ski Area. Serene Lakes has a storage capacity of 783 AF, so the remaining water allowed for storage, 394 AF, will be directly diverted (1,177 AF – 783 AF = 394 AF). On Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-13 North Tahoe and Martis Valley MSR average, between 2000 and 2009, the District used 117.7 afa. Future water use is estimated to be 365 afa (SLCWD, 2011), and the amended permit authorized this amount. Although not part of the current water supply, two groundwater wells, approximately 650 feet in depth, are installed and could potentially be used in the event of an unforeseen emergency with the District’s surface water supply. One of the wells is permitted as a standby source by DDW. Use of both wells would require a significant investment to upgrade well associated infrastructure prior to use in order to address water quality issues associated with arsenic and to address electronic and physical connection issues (SLCWD, 2011). SLCWD developed a water availability analysis to study the total flows through the watershed and determined that an average of 4,765 acre-feet of water originates at the headwaters, flows through Ice Lakes and down the American River. Approximately 8% of this flow is permitted to be diverted by the SLCWD, although a lesser amount has historically been utilized by the District to supply its customers. The District treats water and distributes it to approximately 809 connections within its service area boundaries. The only expected remaining development within the Sierra Lakes County Water District will occur as infill residential development on the remaining 200 undeveloped lots. If these undeveloped lots were developed, it is estimated they would utilize 250 gallons per day of water (Placer County, 1994) and this calculates4 to 56 afa. Since the current average water use is 117.7 afa for the District as a whole, the projected future new development would raise this to 173 afa. This is much less than District’s permitted water use of a total of 365 afa. Given these projections and calculations, the District indicates there is sufficient raw water supply to meet the anticipated buildout (SLCWD, 2010). The District is working on a variety of methods to promote water conservation. WASTEWATER Sierra Lakes County Water District collects wastewater from approximately 800 service connections within the District and transports the sewage to the DSPUD wastewater treatment plant. Customers are primarily single-family residences, but a few commercial customers include a ski resort lodge, a fire station, and the property owners’ beach. SLCWD has an interagency agreement with DSPUD for DSPUD to treat SLCWD wastewater. DSPUD has recently upgraded its treatment plant and this new plant came on-line in summer 2015. Treatment plant capacity and Regional Water Quality Control Board (RWQCB) regulations can influence the District’s ability to supply and/or deliver wastewater service to customers. Please see Chapter 7 for more information on the WWTP. INFRASTRUCTURE AND FACILITIES In addition to owning and operating Ice Lakes Dam and Ice Lakes, the District owns 18 parcels in the Serene Lakes area. The Placer County Department of Public Works leases one garage bay from the District. Eleven properties are open space and seven are used for utility 4 Conversion of gpd to afa = 200 new homes * 250 gpd * 0.00112088568 (acre feet) per year Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-14 North Tahoe and Martis Valley MSR infrastructure (lake intake, district office, pump stations, and lake and water storage reservoirs). The District also owns and maintains several vehicles and other pieces of equipment. To accommodate full build-out of its service area, the District’s infrastructure for water service may need to be expanded including improvements to the WWTP and provision of water storage sufficient to provide fire protection. During the past several years, the District has replaced numerous water main sections, service laterals, and fire hydrants. To address infrastructure and facility needs for the sewer system, the District has collaborated with the DSPUD in the recent major upgrade to the WWTP. Because the District has spent more than five million dollars on water and sewer infrastructure and equipment in the past six years, it does not have any current major infrastructure needs. Future infrastructure needs are addressed on an annual basis through its project list as part of the District’s annual budget. The FY 2013-2014 and 2014-2015 project list includes spot repairs of sewer mainline and laterals, repair of several sewer manholes, sewer pump station upgrades, television inspection of the gravity sewer system, water distribution system improvements, water pump station and storage improvements, tool purchases, and building repairs. These projects, which include capital and operating expenses, total $309,150. In 2008 the District started a three-year program to upgrade both the water distribution system and the wastewater collection system. The work was centered in the Ice Lakes I and II Subdivisions, in the eastern part of Serene Lakes, which were developed first and have the oldest infrastructure. The work included replacement of those system parts that were most susceptible to failure due to both the materials used and the original construction. The upgrades to the wastewater collection system include replacement or relining sections of pipe that were found to be leaking. Leaks in the wastewater collection system lead to inflow and infiltration (I/I) into the system in spring and early summer when the groundwater table is high during snow melt. Any I/I added to the domestic wastewater must be pumped to DSPUD and treated and disposed there, which greatly increases costs to the District. Leaks in the water distribution system, lead to wasting water and loss of pressure in the system. The District utilized a commercial loan to pay for these improvements. All work has been completed on time and most of it has been completed under budget. The District does not currently meter water for the stated reasons that the capital costs of installing the meters, along with the operational costs of reading the meters and billing accordingly, would outweigh any savings from water conservation. However, given the current multi-year drought that has affected the entire state of California, the District Board is currently exploring mechanisms (such as grant applications) to pay for the capital costs associated with the installation of water meters. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-15 North Tahoe and Martis Valley MSR DISTRIBUTION AND TRANSMISSION WATER SLCWD treats water and distributes it to domestic users, including residential, commercial, lodging, and resort users, throughout its service boundaries. The District diverts water from the north end of Lake Serena using a 10-inch pipe. The water is pumped out of the lake using an electrically powered pumping plant in a facility located at 5000 Bales Road. The design treatment rate of the filtration plant is 220 gallons per minute. Backup power to the pump is provided with a diesel-powered generator. The water is pumped to the raw water treatment plant located at 7305 Short Road (also the District office). From the Short Road facility, an electric booster pump (with diesel backup) moves the water up to the District’s Hill Tank, located just north of the Serene Lakes subdivision boundary, from which water is provided by gravity through the District’s distribution system to its customers. The system also includes a 460,000-gallon tank located at the Short Road location. Because the distribution system for the entire Serene Lakes subdivision is already in place, any new homes can be served simply by connecting to the system at the property line. No infrastructure exists to serve currently unserved parcels outside of the subdivision. WASTEWATER The District maintains a sewer collection system with gravity flow and uphill pumping system to delivery wastewater to the DSWWTP. SLCWD adopted a sewer system management plan (SSMP) in 2011 in response to SWRCB regulations that mandate an SSMP for all public wastewater collection entities that own or operate more than one mile of sewer pipeline. The SSMP includes goals for the wastewater provider; a review of the system’s organizational structure; an overflow emergency response plan; a fat, oil, and grease control program; an operations and maintenance program; design and construction standards; a monitoring and measurement program; and a public communications program. The operations and maintenance program indicates that the sewer system has 55,400 feet of six, eight and 10-inch gravity main, 182 manholes, 12,100 feet of 8-inch forcemain, and four pump stations. As part of the SSMP process, the District updated its system mapping in the winter of 2009-2010, the first time the maps had been updated since they were first prepared in the late 1960s. The effort included the field location of sanitary sewer features visible on the surface (manholes and cleanouts) with reference to known improvements such as power poles and fire hydrants, and review of television inspection reports to determine the stationing of laterals on mainlines. The maps show the entire system and include pipe diameter, pipe material and facility identification number; residential lateral connection points at mainline; manholes, including depth and facility identification number; force mains, including pipe diameter, pipe material and facility identification number; pump stations, including pump data and wetwell capacity; street names; and parcel addresses. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-16 North Tahoe and Martis Valley MSR . The District recently identified portions of the gravity pipeline system that experience the greatest oil and grease buildup, and in fall of 2009 and winter of 2010-11 installed an automated system at those locations to inject enzymes on a regular schedule into the pump station wetwell. The result has been a reduction of FOG buildup in the wetwells of the downstream pump stations. SLCWD ensures integrity of the wastewater system by conducting lateral testing when a house is sold or significantly remodeled; closed circuit television (CCTV) inspection of mainlines; mainline, manhole, and lateral rehabilitation or replacement; and installation of manhole Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-17 North Tahoe and Martis Valley MSR chimney seals. District-wide CCTV of pipeline infrastructure began in 2007 to collect condition assessment data needed for asset management funding projections. The program’s goal is to inspect approximately 15,000 feet, or approximately one-quarter of the system, each year. Condition assessments are made using a national standard for coding of pipeline defects that identify whether a perceived defect should be addressed by maintenance, localized repair or capital improvement project (CIP) activities. The observed pipe failure rate data collected during the inspections will be used to identify CIP funding needs over the next five years. Staff also performs weekly inspections of the four pump stations to assess the operation of the pumps, buildings, and wet wells. Pump stations are monitored remotely through the District’s System Control and Data Acquisition (SCADA) network that provides real-time station status. Work related to the wastewater treatment plant is conducted by DSPUD and further details on the WWTP located at the DSPUD site can be found in Chapter 7 of this MSR. 11.8: FINANCING The SLCWD adopts an annual budget. An auditor reviews the District’s financial data on an annual basis. Copies of the audited financial statements were made available to the MSR consultants for FY10/11 and 11/12. Additionally, the audited financial statement for FY 13/14 is available on the District’s website and was utilized for this analysis. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2014. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: https://slcwd.org/ For each of the three fiscal years reviewed, the audits found there was reasonable assurance that the District’s financial statements are free of material misstatements and generally comply with Government Auditing Standards (Robert W. Johnson 2011, 2012, 2014). Both the budget and the audited financial statement are made available to the Board of Directors for review during public meetings and made available to the general public upon request. The most recent budget and audited financial statement are also available on this District’s website. The District funds its regular operations and maintenance with service fees. Both water and sewer operations are accounted for as an enterprise fund. SLCWD’s portion of the DSPUD wastewater treatment plant upgrade and expansion is funded through a property tax assessment on property owners within SLCWD’s boundaries. In 2010, the District received a grant from the Placer County Water Agency for a study on ice formation and its effect on water supply availability. Figure 11.5, below compares the total district assets and shows total assets increased by over five million dollars from FY 10/11 to FY 13/14. This increase in assets can be attributed to capital assets in the form of the District’s share of the new WWTP with DSPUD. To fund this capital improvement SLCWD formed Assessment District No. 2011-1, pursuant to the Municipal Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-18 North Tahoe and Martis Valley MSR Improvement Act of 1913 and issued improvement bonds to finance the District’s share of the cost. Figure 11.5: Total Assets FY 10/11 and 13/14 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 FY 10/11 FY 13/14 REVENUES AND EXPENSES The District’s annual audited financial statement provides a summary of expenses from an operational perspective. Expenses include pumping, treatment, transmission and distribution, administrative and general, depreciation, collection, and disposal. The administrative and general expenses for FY11/12 were $346,180 (Robert W. Johnson, 2012) and this likely includes numerous subcategories such as salaries, office expenses, legal expenses, and utilities. However, since these subcategories are not described nor enumerated in the audited financial statement, it is difficult to discern whether the expense categories are comparable to other Districts in the region. It is recommended that the District review its expenditures on electricity and if electric bills exceed 10% of its annual budget, utilization of renewable resources or energy efficiency should be considered over the long term. A summary of the Districts FY 13/14 financial statement is shown below in Table 11.4. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-19 North Tahoe and Martis Valley MSR Table 11.4: Summary of Revenue FY 10/11 FY 13/14 Water Sewer Water Sewer Operating Revenue Water sales $594,551 $846,949 Sewer sales $891,827 $1,175,160 Connection fees $0 $0 $13,138 $61,613 Penalties and costs $5,784 $5,783 $11,172 $11,172 other $14,627 $24,485 $8,751 $8,751 Non-operating Revenue Property taxes $167,248 $167,248 $174,623 $174,623 Interest income, net $1,217 $1,217 Grant Income $7,040 Sewer export service $96,949 adjustment Total Revenue $790,467 $1,187,509 $1,054,633 $1,431,319 In FY 10/11 operating revenues for water and sewer summed to $1,537,057 and non-operating revenues for water and sewer summed to $440,919. Total Revenues in FY 10/11 was almost two million dollars as detailed in Table 11.4, above. In FY 13/14 11 operating revenues for water and sewer summed to $2,136,706 and non-operating revenues for water and sewer summed to $349,246. Total Revenues in FY 13/14 were almost two and one-half million dollars as shown in Figure 11.5, below. Table 11.5: Summary of Expenses FY 10/11 FY 13/14 Water Sewer Water Sewer Operating Expense Pumping $9,412 $37,603 Treatment $222,590 $202,419 Transmission and $202,376 $199,096 distribution Administrative and $243,742 $110,608 $268,878 $143,459 general Depreciation $122,686 $88,295 $126,632 $92,916 Collection $683,352 $544,993 Disposal $2,140 $3,112 Non-operating Expense Interest expense $30,881 $204,645 $20,466 $273,811 Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-20 North Tahoe and Martis Valley MSR Other interest $102 $103 Bond issuance costs $20,225 Capital processing costs $362,832 $27,114 Grant Expense $9,031 Total Expenses $840,718 $1,451,872 $855,196 $1,105,733 In FY 10/11 operating expenses for water and sewer summed to $1,685,201 and non-operating expenses for water and sewer summed to $607,389. Total expenses in FY 10/11 were almost 2.3 million as detailed in Table 11.5, above. In FY 13/14 11 operating expenses for water and sewer summed to $1,619,108 and non-operating expenses for water and sewer summed to $341,821. Total expenses in FY 13/14 were almost two million dollars as shown in Figure 11.6, below. $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY10/11 FY13/14 In FY 10/11, expenses exceeded revenues by $314,614. In FY 13/14, revenues exceeded expenses by over $525,023 as shown in Figure 11.6, above. It should be noted that the California Institute for Local Government recommends that agencies prepare five-year financial forecasts for both general and other funds, examining issues such as overall economic trends, environmental and regulatory risks, unfunded liabilities, adequacy of fee levels, fund balances, cost deferrals and infrastructure condition and discuss these financial forecasts during public meetings5. The District should consider developing this type of financial forecast in the near future. 5 Details on ILG’s website: <http://www.ca-ilg.org/>. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-21 $ SU Figure 11.6: SLCWD Revenue and Expense Grand Total Revenues Grand Total Expense North Tahoe and Martis Valley MSR RATE RESTRUCTURING Annual water and sewer fees consist of a flat fee of $2,492. Rates are reviewed each year. The District bills on a flat rate fee schedule based on EDUs. SLCWD recently finished three proposition 218 rate increases for three years and formed an assessment district to pay for their share, 44 percent, of the new wastewater treatment plant currently being constructed by DSPUD. COST AVOIDANCE District meetings are held at the District office on property the District owns. The District employs three full-time personnel for water and wastewater facilities operations and maintenance. The Financial Consultant and General Manager, as well as other key personnel needed periodically, are contract employees. The Board of Directors is compensated at a rate of $180 per meeting. Directors may receive no more than $8,640 in any year per District policy. The District seeks cost savings where it can, such as applying for and receiving grants to offset some costs. The District also notes that routine maintenance and repairs, such as the District’s reduction of water leaks and sewer I&I, reduce expenditures by lowering costs of production and treatment. Although the District wastewater treatment is provided by DSPUD, the District does not share facilities or equipment with other districts or agencies. 11.9: OPPORTUNITIES TO SHARE FACILITIES The District holds its meetings in its main office building that also serves as the District headquarters. The General Manager works from this office as well. SLCWD shares equipment and labor with DSPUD when necessary and shares in the decision-making process regarding capital improvements to the DSPUD wastewater treatment plant. As with other small water and wastewater districts in the area such as DSPUD, the small size of the SLCWD can result in a relatively small pool of potential board members and difficulties in reaching economies of scale. Although there are no known problems with the operation or management of SLCWD, the sharing of resources, personnel, and other systems should be explored. Beyond a cost/benefit study, an investigation of a regional wastewater system would also have to carefully examine a wide range of technical issues. For example, DSPUD and SLCWD have had past disagreements regarding the calculation of flow rates and other issues which seem to have been generally resolved with the adoption of an interim agreement in 2003. The interim service agreement clearly defined some of these issues such as ownership, measurement of system capacity, maintenance and operation costs, plant expansion, and capital improvements in order to reduce current and future disagreements. This 2003 Agreement is in the process of being updated. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-22 North Tahoe and Martis Valley MSR Participation in an Integrated Regional Water Management Plan could be one way for the District to gain access to shared information and to support for future grant applications. The Tahoe Sierra Integrated Regional Water Management Plan at http://tahoesierrairwm.com/ is one example the District may wish to consider. 11.10: CHALLENGES The District has identified no regulatory issues, infrastructure issues, or other challenges within the next 12 months, but has noted that new environmental restrictions and permitting related to operation of the water and sewer systems in the next five years will likely be a challenge for the District. Serene and Dulzura Lakes were formerly privately owned and have historically been used for recreational purposes such as swimming and canoeing. With the recent land trust acquisitions of Royal Gorge property, the land underlying the lakes was transferred to District ownership. Legislation regulating the District does not allow for a water district to provide recreation services, and swimming in a domestic water supply is considered an activity incompatible with the intended use of the water. The District has prepared a lake management plan and the Board has adopted an ordinance to implement this plan6. The District inherited other problems with the transfer of the lake property to District ownership. A lawsuit was attached to the lakes from people who had been suing the previous owner. When the title transferred, the lawsuit also transferred over. The District is currently working with its legal counsel to help resolve the litigation. Other risks that the District manages include the risk of sewage discharge from broken mains or failure of sewage pumps that could result in accidental contamination of the drinking/municipal water supply. The District manages this risk through on-going water quality monitoring and reporting and through preparation of a watershed sanitary survey report. Drought is also a risk to every water service provider in the state of California. Given its location in the upper watershed and relatively plentiful water flows in the area along with a small population, the District has less risk than most other water service providers. The SLCWD is complying with Governor Brown’s 2015 order and conserve water during the on- going multi-year drought. 11.11: SERVICE ADEQUACY The District’s facilities are currently sized to adequately serve the existing connections within the service area. Water supply has historically exceeded demand with an average consumption rate of 117.7 afa between 2000 and 2009 and an authorized amount of storage of 1,177 afa. The District anticipates requiring 365 afa for beneficial uses upon full buildout 6 Ordinance 99 is available on the District website at: http://www.slcwd.org/ Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-23 North Tahoe and Martis Valley MSR of all the properties in its service area and has a recently amended permit from the SWRCB allowing for that amount. The DSWWTP has been upgraded and expanded and is projected to have adequate service capacity to meet the anticipated future wastewater connections. In the past, SLCWD informally considered the provision of service in conjunction with DSPUD and/or other service providers in the area. This concept has not been pursued by SLCWD because the voting structure is different for each agency. For example, voters within SLCWD are not required to be full-time residents (see Water Code § 30700.6) and this allows out-of- town property owners to vote on District issues. However, DSPUD voting rules do require voters to be full-time residents of the district. These structural differences facilitate the retention of these service providers as independent agencies. 11.12: DETERMINATIONS GROWTH AND POPULATION PROJECTIONS 1. The Sierra Lakes County Water District (SLCWD) served approximately 809 residential and commercial water and sewer service connections as of 2015. Residences within the District are primarily comprised of second homes and vacation rentals. 2. The population fluctuates between 104 and 2,079 people depending on the season. 3. The District currently uses an average of 117.7 afa of municipal (fresh) water due to the seasonal population of the service area. With 365 afa allowed for beneficial use, the District has the capacity to add the remaining residential connections from undeveloped parcels in the Serene Lakes subdivision area. 4. The DSPUD wastewater treatment plant upgrade provides 239 additional EDUs for the Serene Lakes area and was completed in 2015. With approximately 217 undeveloped lots in Serene Lakes, the future EDUs available are sufficient for buildout of the District. 5. The District has a very low growth rate for the resident population, coupled with a projected increase in transitory population. Between 2000 and 2011, 152 EDUs were added, and no new subdivisions or other developments were approved. The District assumes a minimal growth rate with growth slowing significantly or halting once the existing undeveloped lots are built. 6. The District’s Sphere of Influence is smaller than its formal boundary. It is recommended that LAFCO and the District work together to review the SOI and to consider aligning (co-terminus) it with the District’s formal boundary. DISADVANTAGED UNINCORPORATED COMMUNITIES 7. No areas within the District qualify as a disadvantaged unincorporated community because the median family income exceeds 80% of the state median family income. PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-24 North Tahoe and Martis Valley MSR 8. SLCWD was established in 1961 to provide domestic water, sewage transmission, and sewage treatment in a community leachfield. 9. Since DSPUD’s construction of a wastewater treatment plant in 1971, SLCWD has contracted with DSPUD to treat its wastewater. DSPUD has expanded its wastewater treatment facility and has included the Sierra Lakes Water District customers in that expansion. 10. The District currently provides water for municipal, recreational, commercial, and fish culture purposes. 11. Repairs and replacements will be necessary on an ongoing basis for both water treatment and delivery infrastructure, as well as wastewater collection. 12. The dam and reservoir at Serene Lakes were recently inspected by the Department of Water Resources Division of Safety of Dams and found to be safe for continued use. 13. The California Water Resources Control Board, Drinking Water Division inspects the District’s water treatment plant on a routine basis. A September 20, 2013 inspection found that it was operated in a “conscientious and professional manner, and is well maintained.” The inspector found that the water supply system was in good condition, required records were submitted in a timely manner, and chemical testing was up to date. 14. The District’s water supply comes from Serene Lakes. Water rights to the lakes allow for the use of up to 365 acre-feet per year for beneficial uses. Historic water demand from 2000 to 2011 has been 117.7 acre-feet per year. Demand rises in the winter months due to the seasonal ski resort population. 15. The District has no backlog of will-serve letters. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES 16. The District follows standard accounting procedures. 17. The District’s operations and maintenance activities are funded through service charges, fees, and taxes via an enterprise fund. 18. The District reported that the current financing level is adequate to deliver services presently. 19. Rates should continue to be reviewed and adjusted as necessary to fund District costs and provide for capital improvements as needed. 20. The District’s annual budget and annual audited financial statement should continue to be made readily available to the general public via the District’s website. 21. The District’s annual audited financial statement provides a summary of expenses from an operational perspective. The District’s annual budget provides more detail on the expenditures on salaries, utilities, and equipment. 22. The Districts audited financial statements for FY 10/11 and FY 13/14 demonstrates adequate finances for the continued ability of the District to provide services. 23. It is recommended that the District consider preparation of five year financial forecasts and discuss these forecasts during public meetings and make them available on the District’s website. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-25 North Tahoe and Martis Valley MSR STATUS OF, AND OPPORTUNITIES FOR, SHARED FACILITIES 24. The District should continue to examine joint arrangements for services that can be provided on a regional or localized basis. 25. The District fees are set through a public process, and it is assumed that a nexus study for linking new fees to the cost of providing services has been prepared. No nexus study was requested or provided as part of this municipal service review. 26. The District should continue to work with DSPUD. 27. Service provision might be improved if the governance structure for SLCWD were examined. The DSPUD and SLCWD should examine their current government structure to determine of efficiencies could be gained by reorganizing the agencies. 28. The District may wish to consider participating in an Integrated Regional Water Management Plan as a method to retain independence yet participate in a shared information structure. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATION EFFICIENCIES 29. Local accountability and governance might be improved through a reorganization of service providers in the area or through more explicit joint agreements. For example, the “Interim Service Agreement” signed by DSPUD and SLCWD in 2003 is an example of such a joint agreement and this Agreement will soon be updated by Districts. 30. In the long-term future, the District could explore the use of new technology to develop and capture renewable energy to reduce its annual expenditures on utility costs. The District budgeted $39,000 for its electricity expenses in the proposed FY 2013-2014 budget. This amount accounts for 7.6 percent of the District’s expenses. The District should investigate efficiencies in its electricity use. 31. Within the next ten years, alternatives to the current government structure in the Soda Springs/Sierra Lakes area should be explored by Nevada and Placer LAFCo’s, DSPUD and SLCWD. 32. The District is locally accountable through adherence to applicable government code sections, open and accessible meetings, and dissemination of information and encouragement of participation in their process. 33. The District demonstrated accountability through its prompt disclosure of information requested by LAFCo for preparation of this MSR. 34. Board meetings are publicly noticed and comply with the Brown Act, California’s open meeting law. They are held every month. 35. The District practices cost reduction through careful purchasing, bidding processes, staff workload reductions, applications for grants and other mechanisms. 36. No boundary changes are pending or proposed at this time. However, the District’s SOI is smaller than its actual boundary, an issue that should be rectified by reforming the SOI to be co-terminus with the District boundaries. 37. All Board members have access to District data, records and information. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-26 North Tahoe and Martis Valley MSR 38. The District has adequate public outreach, with a public website featuring Board agendas and meeting minutes, fiscal information, staff contact information, general information about services provided, rates, environmental compliance documents, planning documents, and news stories about its current projects. 39. The District has a one-page strategic plan that outlines its mission statement. A more detailed strategic plan that describes objectives and anticipated actions for the next five years could help the District could improve upon 1) planning efforts, 2) accountability and transparency. 40. The District does not currently meter water for the stated reasons that the capital costs of installing the meters, along with the operational costs of reading the meters and billing accordingly, could outweigh any savings from water conservation. However, given the recent multi-year drought that affected the entire state of California, the District may wish to consider exploring mechanisms (such as grant applications) to pay for the capital costs associated with the installation of water meters. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-27 North Tahoe and Martis Valley MSR 11.13: REFERENCES California Department of Public Health. Public Water System No. 3110017 – Annual Inspection Report. 17 July 2012. 22 pages. Placer County Housing Element, 2013. Placer County. General Plan Final Environmental Impact Report Chapter 5 Non-County Infrastructure and Services. 1994. 59 pages. <http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/PCGP/EIR/Ch5NonCo untyInfrastructure.pdf>. Accessed 30 April 2015. Placer LAFCo. Agency Profile: Sierra Lakes County Water District. 30 January 2012. Quesnel, Bill. Interview with Kateri Harrison, Principal, SWALE. 11 September 2013. Robert W. Johnson, CPA, An Accountancy Corporation. Financial Statements and Independent Auditor’s Report for the year ended June 30, 2011. 31 pages. Robert W. Johnson, CPA, An Accountancy Corporation. Financial Statements and Independent Auditor’s Report for the year ended June 30, 2012. 27 pages. Sierra Lakes County Water District. <http://www.slcwd.org>. Accessed 29 October 2013. Sierra Lakes County Water District. 2013/2014 Rate Covenant Calculation. 24 September 2013. Sierra Lakes County Water District. FY 2013-2014 and 2014-2015 Project List. 30 June 2013. Sierra Lakes County Water District. Ordinance No. 95: An Ordinance of the Board of Directors of the Sierra Lakes County Water District Concerning Board Member Compensation. Sierra Lakes County Water District. Placer Local Agency Formation Commission: 2013 Municipal Service Review Update: Districts/Agencies in North Tahoe & Martis Valley: Information Request, 2013. Sierra Lakes County Water District. Calculation of Serene Lakes Occupancy Ratio, 2009 survey. Sierra Lakes County Water District. Connected Property List by Calendar Year, January 29, 2014. Sierra Lakes County Water District. Initial Study/ Mitigated Negative Declaration Petition For Time Extension And Petition To Allow Direct Diversion For Water Right Permit 14248. Prepared by Stevens Consulting. October 14, 2011 . 89 pages. Sierra Lakes County Water District. Water Supply Assessment. October 2010. 17 pages. Available on-line at: <http://www.slcwd.org/PDF's/tempPDF's/Water% 20Supply%20Assessment%2010.07.10.pdf>. State Water Resources Control Board, Division of Water Rights. Amended Permit for Diversion and Use of Water, Application 20601, Permit 14248. 28 February 2013. State Water Resources Control Board. Order WR 2013-0014-EXEC: In the Matter of Permit 14248, Application 20601, Sierra Lakes County Water District, Order Approving Petitions for Change and Extension of Time. 28 February 2013. Stevens Consulting. Initial Study/Mitigated Negative Declaration: Petition for Time Extension and Petition to Allow Direct Diversion for Water Right Permit 14248. Prepared for Sierra Lakes County Water District. 14 October 2011. US Department of Commerce. <www.census.gov>. Accessed 28 October 2013. Draft Final MSR, August 2018 Chapter 11, Sierra Lakes CWD 11-28 North Tahoe and Martis Valley MSR Chapter 12 Squaw Valley Public Service District Photo courtesy of http://www.svpsd.org This Municipal Service Review (MSR) describes the Squaw Valley Public Service District. This District was formed in 1964 and currently provides a wide range of services including water distribution, wastewater collection, solid waste collection, and fire/emergency services. Table of Contents 12.1 District Profile .................................................................................................. 12-2 12.2: Overview of District ........................................................................................... 12-2 12.3: Formation and Boundary ..................................................................................... 12-3 12.4: Accountability and Governance ............................................................................. 12-5 12.5: Management Efficiencies and Staffing ..................................................................... 12-6 12.6: Population and Growth ....................................................................................... 12-8 12.7: Financing ....................................................................................................... 12-15 12.8: Water Services ................................................................................................ 12-21 12.9 Wastewater Services .......................................................................................... 12-28 12.10: Fire and Emergency Services ............................................................................. 12-29 12.11: Solid Waste and Recycling ................................................................................. 12-32 12.12: Determinations .............................................................................................. 12-33 12.13: References ................................................................................................... 12-37 Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-1 North Tahoe and Martis Valley MSR 12.1 District Profile Squaw Valley Public Service District Type of District: County Water District Enabling Legislation: The County Water District Law: Water Code Sections 30000-33901 Functions/Services: Water distribution, wastewater collection, solid waste collection, bike trail snow removal, and fire prevention and emergency services. Main Office: 305 Squaw Valley Road, Olympic Valley, CA 96146 Mailing Address: PO Box 2026, Olympic Valley, CA 96146 Phone No.: (530) 583-4692 Fax No.: (530) 583-6228 Web Site: www.svpsd.org General Manager: Mike Geary Email: mgeary@svpsd.org Governing Body: Board of Directors Eric Poulsen 11/2020 Carl Gustafson 11/2020 Bill Hudson 11/2018 Dale Cox, Chairman 11/2018 Fred Llfeld 11/2020 Meeting Schedule: Last Tuesday of the month at 8:30 a.m. Meeting Location: Squaw Valley Public Service District Community Room 305 Squaw Valley Road, Olympic Valley, CA 96146 Date of Formation: March 30, 1964 Principal County: Placer County 12.2: Overview of District Olympic Valley, site of the 1960 Winter Olympics and also known as Squaw Valley, is an unincorporated resort community located to the north of Lake Tahoe and to the south of the Town of Truckee. The population of the District experiences high fluctuations in populations with the seasons: winter skiing and summer activities such as hiking and golf. A sizeable development application to expand the Village at Squaw Valley has been submitted to Placer County. In June 2013, an application for incorporation of this area was submitted to Placer LAFCO and subsequently withdrawn in December 2015. Type and Extent of Services The Squaw Valley PSD provides water, wastewater collection, solid waste collection, and fire/emergency services. In 2011, the District began providing snow removal on multi-use Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-2 North Tahoe and Martis Valley MSR trails in Olympic Valley, a service which is funded by Placer County, through the North Lake Tahoe Tourism and Promotions Budget (Placer County, 2018). District Resolution No. 99-08 stated the District’s intent to assume responsibility for the park and recreation facilities and services within Squaw Valley upon assuming ownership of the USFS property that was previously managed by Placer County. However, the District currently does not own or operate any recreation and/or park facilities. A local non-profit organization called “Friends of Squaw Valley” have been advocating for the Squaw Valley Public Service District to expand its charter to include a focus on recreation for Olympic Valley. Location and Size The SVPSD is located south of Truckee and west of Highway 89 and encompasses approximately 15 square miles, including the Olympic Valley and up to the ridgeline above the Valley to the west. To the east, the District includes a portion of the Truckee River corridor along Highway 89. The District boundaries encompass 5,350 acres. See Figure 12-1 for District boundary and SOI. 12.3: Formation and Boundary The Squaw Valley County Water District was formed by the Placer County Board of Supervisors on March 24, 1964 (Resolution No. 64-99); State certification occurred on March 30, 1964. The District assumed operation of Squaw Valley Fire Department from the County of Placer in 1986. The District’s name was changed in 1997 to the Squaw Valley Public Service District in order to better reflect the breadth of its service provision (District Resolution No. 97-32). The District’s boundaries follow the watershed boundaries for Squaw Creek, which drains Olympic Valley. Steep mountains ring the valley, rising to an elevation of over 9,000 feet at the top of Granite Chief Peak. Along the Hwy 89 corridor, the boundaries of the Squaw Valley Public Service District do overlap with the Tahoe City PUD’s boundaries. This results in a situation where within the SVPSD boundaries, the Tahoe City PUD provides water service to 20 homes, sewer collection services to 29 homes, and maintenance on 7,283 feet section of a multi-use trail. Boundary History Since its formation in 1964, several annexations to the District have been approved by Placer LAFCO. The first of which was in December of 1964 (LAFCO Resolution 64-19) and included Winding Creek Subdivision, Forest Glen Subdivision, and Forest Glen Subdivision No. 2. Subsequent annexations occurred in 1973 (LAFCO Resolution No. 73-1A) and in 1985 with annexation along the Truckee River Corridor (LAFCO Resolution 15-84). The District’s Fire Department boundary varies from the rest of the SVPSD boundary, extending north along Highway 89. The extended Fire Department boundary is within the District’s SOI. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-3 T r u c k e e R iv e r 89 Squaw Creek Valley Rd w Squa 89 Alpine Meadows Rd Squaw Valley PSD (Fire Only) Squaw Valley PSD (Water & Fire) 0 0.5 1 Miles Parcels Parcels, Roads and District Boundary from Placer County GIS Figure 12-1 SQUAW VALLEY PUBLIC SERVICE DISTRICT North Tahoe and Martis Valley MSR In December of 2013, Incorporate Olympic Valley (IOV) submitted a formal application and deposit to Placer LAFCO to pursue incorporation of Olympic Valley. The area proposed for incorporation was coterminous with the existing District’s fire service boundary. This application has since been withdrawn. Sphere of Influence The District’s SOI is also coterminous with the District’s fire service boundary. The District indicates that its SOI is adequate for projected future needs. Extra-territorial Services Under an interagency agreement, the District provides potable water to 16 residential customers in the Tahoe City Public Utility District’s service area, along the Truckee River east of Highway 89. Areas of Interest No areas of special interest have been identified by the District. 12.4: Accountability and Governance The District operates under the leadership of an elected, five-member Board of Directors, with a General Manager providing daily oversight and management of staff and resources. The District holds regularly scheduled meetings on the last Tuesday of the month, at 8:30 a.m. District staff indicates that all meetings are held in compliance with the Brown Act and all laws governing public meetings. Agendas for regular meetings, standing committees and special meetings are publicly noticed and posted at the District’s bulletin board and Olympic Valley Post Office, which are public sites and open to the public 24 hours per day, 7 days per week. The distribution list includes local media and posting on the Moonshine Ink online calendar of events (http://moonshineink.com/). Public comment is allotted at every meeting for items on the agenda and items not on the agenda. Agendas, meeting minutes, and board packets are posted on the District website; notification is sent via email when these documents are ready. The District and its activities undergo public review procedures, including financial review by independent auditors. There are sufficient mechanisms in place to ensure that actions and operating procedures of the District are open and accessible to the public. The District maintains a website as noted in the Agency Profile, above, where residents can obtain District news, water and sewer rates, District meeting information, etc. Customers may send comments or complaints to the District office in-person, by letter, or use the District’s website contact page. A total of four formal written complaints were reviewed over the 2011 and 2012 calendar years in response to the District’s Proposition 218 Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-5 North Tahoe and Martis Valley MSR notifications of rate increases. A total of two water quality complaints were logged in 2011 (SVPSD, 2014, p. 3). Directors are elected to four-year terms, the last election having occurred in 2014 (See District Profile above for list of current Directors). As of February 2016, there were no vacancies on the Board. The most recent election was in November 2014 for two seats; there were no challengers. Each Director is compensated $600 per month in accordance with Government Code Section 61047(a), which allows a CSD board of directors to provide by resolution that its members may receive compensation in an amount not to exceed $100 per each day of service, not to exceed 6 days of service in a month. Additionally, all Board members are eligible to enroll in the CalPERS Supplement Income Plan (457). Although only one member has elected to contribute to a CalPERS 457 Plan, no Directors receive any contribution from the District for their 457 Plans. Two of the Directors receive a CalPERS Retirement benefit, for which the District contributes $136.95 per month (effective July 1, 2014) (the benefitting Directors each contribute $9.33 per month to their plans) (SVPSD, 2014, p. 2). 12.5: Management Efficiencies and Staffing The General Manager is appointed by, serves at the will of, and reports to the elected five- member Board of Directors. The District’s Board of Directors oversee the functions of the General Manager, who administers and directs the overall activities and operations of the District in accordance with policy direction by the Board of Directors. The General Manager is the Chief Executive Officer and has full charge and control of all District activities with power to employ and discharge all employees, department heads and assistants, and consultants other than the District Board Secretary, who is appointed by the Board of Directors, and prescribe their duties and fix their compensation subject to adopted resolutions, ordinances, policies and contracts. The District provides leadership in all District activities and plans including long-range planning, budgeting and financial oversight (SVPSD, 2014, p. 3). District operations are organized into Administration, Fire and Operations, which includes water and wastewater operations (see Figure 12-2 below). The District employs a total of 27.38 full time equivalent employees, a 5.37 FTE increase from 2003 levels (SVPSD, 2014, p. 42). Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-6 North Tahoe and Martis Valley MSR Figure 12.2. SVPSD Organizational Chart Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-7 North Tahoe and Martis Valley MSR Contract Services The SVPSD contracts with Tahoe Truckee Sierra Disposal Company to provide municipal solid waste collections services for residential customers. The Squaw Valley Mutual Water Company currently contracts with the SVPSD to provide operations and maintenance staffing for efficiency of cost and personnel. The North Lake Tahoe Resort Association (NLTRA) and Placer County contract with the SVPSD to provide snow removal services on the County’s multi-purpose (bike) trail in Squaw Valley between Nov. 15 and April 30, providing approximately 68 percent of the required funding. The remaining 32 percent is provided by District fund raising efforts. In 2014/2015, the winter funding breakdown included: • NLTRA/Placer County – 68 percent • Resort at Squaw Creek – 17.5 percent • Squaw Valley Resort (ski area) – 2.9 percent • Squaw Valley Property Owners Association – 1.5 percent However, as of the February 6, 2018 contract between Placer County and the SVPSD, 100% of the funding for snow removal was derived from the North Lake Tahoe Tourism and Promotions Budget (Placer County, 2018). Technology/Management The District maintains a wide variety of technology that enhances their long range planning and keeps them abreast of state mandated data requirements. The District employs SCADA systems for monitoring and management of its water and wastewater systems. 12.6: Population and Growth Population Estimates of population in resort areas are difficult to predict, as populations are transient and can have significant variations throughout the year. The 1983 Squaw Valley General Plan and Land Use Ordinance (SVGPLUO) allows for growth that reaches a seasonal peak of an overnight population of 11,000 to 12,000 people, and a maximum skier capacity of 17,500 persons per day within the Valley. The permanent resident population pales in comparison to these peak user days. The non-resident population is comprised of a variety of users from absentee owners, vacation rentals, hotel, camping and day visitors. The Placer County Office of Economic Development, Placer Valley Tourism, Placer County Visitors Bureau and North Lake Tahoe Resort Association commissioned a study (Placer County Travel Industry Assessment and Detailed Economic Impact Estimates, 2002-2008 prepared by Runyan Associates in 2009) to document the tourism impact in the county as a whole. Information was also collected for the high country and particularly the Tahoe Basin. While this study does not specifically project the seasonal population peaks associated with tourism and recreational uses it does demonstrate the emphasis on seasonal uses that accommodate the visitors to the area. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-8 North Tahoe and Martis Valley MSR The following excerpts are taken from the Travel Industry Assessment: Second Homeowner Trends The Travel Industry Assessment reports that within the High Country Region, a large percentage of the housing units serve as private vacation homes and/or vacation rental properties, most notably for the communities of North Lake Tahoe. Table 12-1 below, reflects that 89 percent of all single family homes, condominiums, and time- shares in Olympic Valley are not owner-occupied. Table 12-1 Single-Family Residential, Condominium, and Time-Share Housing Units, 2008 Zip Code Owner- Absentee Percent Location Total Units Area Occupied Owner Absentee Olympic Valley 96146 243 1,879 2,122 89% Estimated in 170 1,315 1,485 89% SVPSD boundary area1 The District does not provide service to the entire 96146 zip code because: 1) some areas are outside its service boundaries, 2) some property owners may obtain services from other providers such as the Squaw Valley Mutual Water Company2, or 3) rural properties may not require public services. Therefore to complete Table 12-1 above, we estimated that 70% of the homes located within the 96146 zip code are also located within the District boundary. In 2010, the U.S. Census estimated the permanent population of the 96146 zip code at 1,366 persons. To calculate the estimated population for the District, the following information was considered: • Approximately 2,400 parcels located within District boundaries • 170 owner permanently occupied homes with 2.66 persons per household3, yields 452 permanent residents. • 1,315 absentee owner homes with 2.66 persons per household, yields 3,498 visitor/temporary overnight individuals. • Several thousand visitor/temporary overnight individuals4 can be accommodated in hotel rooms within the District boundaries. • The District serves day visitors to the resort who may spend the night outside of District boundaries and it is estimated the maximum peak day-time only visitors is approximately 6,5005. 1 It is estimated that 70% of the homes within the zip code are also located within the district boundaries. 2 Details on the mutual water company are on its website at: http://www.svmwc.com/ 3 U.S Census at: http://quickfacts.census.gov/qfd/states/06/06061.html estimates an average of 2.66 persons per household in Placer County. 4 Data source: Placer County Local Hazard Mitigation Plan. April 2010. http://www.placer.ca.gov/~/media/ceo/emergency/documents/Final-Hazard-Mitigation- Plan/Placer%20CountyLHMPMaster.pdf 5 Data source: IBID. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-9 North Tahoe and Martis Valley MSR • 1,608 water “connections” (1,569 residential connections and 39 commercial connections and a connection is correlated to number of households and businesses served). • 1073 connections number of wastewater “connections” (i.e. correlated to number of households and businesses served) (39 commercial customers plus 1,034 residential customers). • SVPSD has approximately 920 “customers”6 which comprise a variety of residential, commercial, and institutional properties and which may receive a select number of public services. Several “customers” have multiple water and sewer “connections”. • 560 registered voters reside within the District. Although the individuals staying in local hotel rooms or renting out vacation homes are not permanent residents, there are a number of units that are occupied on a year round basis by a rotating roster of visitors. For analysis purposes, it was assumed that approximately 187 of the temporary/visitor units are continuously occupied on average. Based on the above data and for purposes of this MSR analysis, it is estimated that population served in 2012 within the District boundaries is 950 permanent individuals and 3,500 average peak season overnight visitors. Table 12-2: Summary of Existing Population Existing Permanent Estimated Current Peak Population Visitor Population7 Squaw Valley Public 950 3,5008 up to 12,000 Service District Projected Growth and Development The Placer County General Plan serves as the County’s vision for long-term land use development and conservation. Placer County’s General Plan adopted on August 16, 1994, and updated May 21, 2013, provides a series of goals, policies, standards and implementation programs to guide the land use, development, and environmental quality of the County. While the County’s General Plan was updated, the Squaw Valley and the Tahoe Basin area plans were not. The applicable General Plan is the 1983 SVGPLUO. While dated, this plan is not scheduled for update in the near future (personal communication with Crystal Jacobsen, Project Manager Tahoe Basin Community Plan Update). The primary land uses are residential, business, schools, ski resort and mixed-use village. The zoning for these parcels currently includes Village Commercial, Heavy Commercial, High Density Residential, Forest Recreation, Conservation Preservation, Low Density Residential, and Entrance Commercial. The 1983 SVGPLUO estimates that a seasonal overnight population of 11,000 to 12,000 people will need 6 Data source: SVPSD Customer List provided to LAFCo in response to the Request for Information. 7 This column shows the # overnight visitors. (Day-use only visitors are not included.) 8 1315 housing units from absentee owners (i.e. vacation homes) x 2.66 persons per household Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-10 North Tahoe and Martis Valley MSR to be accommodated with a maximum skier capacity of 17,500 persons per day at buildout within the Valley. It has been Placer County’s General Plan policy to steer urban growth to the cities. The 2013 Placer County Housing Element confirms that policy. While the county has grown at a rapid pace, much of this growth has occurred within the cities. Incorporated areas of the county grew at an Average Annual Growth Rate (AAGR) of 5.2 percent. Unincorporated Placer County’s population grew at an AAGR of 1.8 percent between 1990 and 2000. From 2000 to 2010, Placer County as a whole had a 3.4 percent AAGR for population, a rate nearly three and a half times California’s population AAGR of 1.0 percent during this period. Most of this growth occurred in the incorporated areas of the county where the AAGR was 5.0 percent between 2000 and 2010. Growth in unincorporated areas of the county slowed to an AAGR of 0.7 percent. The historical rate of year-round population growth, per 2010 U.S. Census data for zip code 96146, indicates that the permanent population grew by 3.96 percent annually from 2000 to 2010. The permanent population in 2000 was 926 and in 2010 it was 1,366. It is noted that this zip code includes Alpine Meadows and land to the north, south and east. Much of the lands outside the two resort communities are very rural with limited population. While Squaw Valley may have experienced growth the ten year period from 2000 to 2010, Alpine Meadows has not. Based solely on available 2010 U.S. Census data, the 3.96 percent growth rate between the 2000 and 2010 was projected to remain constant through 2032 for analysis purposes. An alternative, more conservative (i.e. lower) growth rate of 2 percent was projected in the 2004 MSR. Table 12-3 presents both rates of growth. Either way, the permanent population will be relatively modest compared to the service capacity of the district. Table 12-3: Population Projections for the SVPSD, 2012-2032 Projection 2012 2017 2022 2027 2032 3.96% projected 950 1,154 1,402 1,702 2,067 growth rate*a 2% projected 915 1,010 1,115 1,231 1,359 growth rate*b *a Basis for 3.96% growth rate: Data from the U.S. Census (2010) & Placer County *b Basis for 2% growth rate: 2004 MSR Based on past growth rates and likely future development, it is anticipated that the ultimate service demands within the Squaw Valley PSD will continue to increase. The 3.96 percent, 2000-2010 population growth rate is much higher than the increase in service connections for wastewater which was 9679 in 2003, 983 in 2012, and 1,073 in 201510 which represents an average annual growth rate of 0.86%. This difference could be associated with a trend toward a more permanent population residing in units that were previously second or vacation homes. These units would have had previous water and wastewater service connections. In 9 Data source for 967 connections: LAFCo 2004 MSR 10 Data source for 1073 connections: personal communication with T-TSA Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-11 North Tahoe and Martis Valley MSR addition to providing both wastewater and water services within its boundaries, SVPSD also provides water service to portions of Tahoe City Public Utility District east of Highway 89. As a result, comparing wastewater connections may be a more valid indicator of growth within the District. A new Specific Plan (2014), Village at Squaw Valley, is proposed on a 94-acre portion of the Squaw Valley Village by Squaw Valley Real Estate, LLC, that will adjust existing land use and zoning within the project area. The proposed Specific Plan is the first specific plan proposed under the SVGPLUO since it was adopted by Placer County in 1983. The Specific Plan proposes to amend the SVGPLUO to comprehensively plan development of a recreation-based, all- season, mountain resort community. The ultimate build-out of the proposed Specific Plan is consistent with this future growth level anticipated in the SVGPLUO. The proposed Specific Plan includes limited changes (i.e., amendments) to the land uses previously approved for the site in the General Plan. These changes and the Specific Plan proposal require evaluation under the California Environmental Quality Act (CEQA). The County has determined that these changes and entitlements could result in potentially significant impacts on the environment, and has therefore prepared an Environmental Impact Report (EIR) to evaluate these potential impacts11. The proposed Village at Squaw Valley Specific Plan and the Resort at Squaw Creek, Phase II projects are significant developments on the near horizon. As with past developments, growth in this area is likely to come not in incremental development of new residential and commercial properties, but rather in large developments. Recent projects in the area provide an example of growth in the Squaw Valley boundaries. The vast majority of overall development within the District has been at two resorts: 1) the Resort at Squaw Creek Phase 1 (circa 1990) and 2) the Village at Squaw Valley (circa 2000). The Resort at Squaw Creek sits on 195 acres and contains 405 residential units12 along with the winter chair lift, a golf course and other resort amenities. The Village at Squaw Valley sits on 93.7 acres and contains 297 residential units13 which are contained in five lodge type buildings along with several restaurants and other visitor serving amenities. Given the development applications currently being processed by the Placer County Community Development Department, it is likely that new growth will occur in large developments at some point in the planning period (prior to 2032). A Draft Village at Squaw Valley Specific Plan (October 2014) and a Draft Program Environmental Impact Report (May 2015) were reviewed by the Placer County Planning Department. The Village at Squaw Valley Specific Plan was revised in April 2016. A Final Environmental Impact Report was issued on April 7, 2016. This revised Specific Plan would allow for development of resort residential, commercial, retail, and recreational uses similar to uses currently allowed under the SVGPLUO, including lodging, skier services, retail shopping, restaurants and bars, entertainment, and public and private recreational facilities. 11 DEIR and FEIR available on-line at: https://www.placer.ca.gov/departments/ communitydevelopment/envcoordsvcs/eir/villageatsquawvalley/final%20eir 12 Data source: http://www.squawcreek.com/california-resorts.php 13 Data source: personal communication with SVPSD staff February 2015. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-12 North Tahoe and Martis Valley MSR The plan area would consist of two main zones within the Village: the Village Core, consisting of high-density, active, tourist-related mixed uses; and the Village Neighborhoods, consisting of medium-density resort residential neighborhoods and small-scale neighborhood-serving commercial uses. In addition, the plan area would include the approximately 8.8-acre East Parcel, which is planned for employee housing, off-site parking, and activities that are ancillary to the Village, such as receiving and distribution. The Specific Plan proposes a maximum of 1,493 bedrooms (or 750 units) in the main Village area and up to 264 bedrooms (or 21 units) to accommodate employee housing on the East Parcel. Under the proposed Specific Plan, the total population of the Valley would be 9,483. The Specific Plan would be developed over approximately 20–25 years. Although the level of development in the Specific Plan is less than that that projected in the SVGPLUO, the proposed specific plan amendment remains controversial. Given the level of controversy, it could be subject to litigation. The District has a Water and Sewer Service Agreement (Development Agreement) for the proposed Resort at Squaw Creek Phase II Project and in November 2016 the SBPSD Board of Directors approved Resolution Number 2016-20 to extend this agreement to 2019. The project includes construction of 526 new bedrooms. The District also has a Water and Sewer Service Agreement (Development Agreement) for the proposed Olympic Estates Subdivision, which proposes the construction of 16 single-family residences; it expires on August 7, 2016. The water and sewer facilities were constructed in the Olympic Estates Subdivision in the summer of 2014. The District is currently in the process, along with the County, of accepting dedication of the water and sewer facilities. As of December 2014, none of the sixteen townhomes were built; there were a total of 16 empty lots. The District and the Developer are still satisfying the terms of the Agreement but are nearing fulfillment of many of its provisions (M. Geary, 2015). The proposals described above represent significant development pressure in the SVPSD that this MSR considers when projecting future service demands. Additionally, other new projects in various stages of planning could impact the SVPSD (SVPSD, 2014, pp. 11-12) as listed in Table 12-4 below: Table 12-4: List of Proposed Projects in Eastern Placer County Project Name Proposed Development Status Resort at Squaw Creek – 526 bedrooms Approved by Placer County, Phase II Development Agreement with SVPSD Sena at Squaw Valley 165 bedrooms and 83,000 square-feet Very early stages of (e.g., Development at of commercial planning Creeks End Court) Homestead @ Squaw Eight residential townhomes; six Very early stages of Valley rowhouses; lodge building with a mix planning of 2, 3 & 4 bedroom units, and outdoor spa; commercial building with 2 condominium residences, restaurant, and resident’s club; Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-13 North Tahoe and Martis Valley MSR condominium building with two condominium residences PlumpJack Squaw One hotel, containing 60 hotel key Under process by Placer Valley Inn rooms and 6 residential units, along County. June 2015 NOP. with hotel amenities such as a restaurant, bar, spa, and approx. 2,000 sq. ft. of retail space. A 12- unit condominium. A 16 unit residential condominium. An underground parking structure, containing 135 parking spaces. Olympic Estates Sixteen lots and common area; Approved by Placer County, sixteen single-family residences Development Agreement with SVPSD Squaw Valley Ranch Four single-family residential lots. Under process by Placer Estates County Warmouth Property Four lots; four single-family Approved by Placer County residences Mancuso Property four single-family residences Very early stages of (totaling 20 bedrooms); one common planning recreation facility Olympic Museum 14,500 commercial square-feet in 2- On January 12, 2016, the floors. Commonly referred to as the County held a Pre- Development meeting with “Squaw Valley Olympic Museum & the project applicant. Winter Sports’ Heritage Center” Alpine Meadow I Squaw Eight-passenger gondolas connecting The US Forest Service Valley Base-to-Base the Alpine Meadows released a draft EIS in April Gondola and Squaw Valley ski areas. 2018. A Comprehensive Fiscal Analysis was prepared in 2015 for a former proposal to incorporate a new town called Olympic Valley. While this effort was ultimately not pursued, the Comprehensive Fiscal Analysis by RSG Inc. Consultants did provide a very detailed Growth Forecast and the results of this forecast are listed in Table 12.5, below. Table 12.5: Growth Forecast in SVPSD area Type of Development Proposed Forecast for Year 2040 Specific Plan Residential and Lodging Units 850 units Employee Housing (Dormitories) 264 units Specific Plan: Nonresidential (Retail, 220,083 sq. ft. Restaurant, ski services etc.) Other Residential/Lodging (Outside the Specific 673 units Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-14 North Tahoe and Martis Valley MSR Plan) Other Nonresidential SF (Outside the Specific 80,500 sq. ft. Plan) (Museum, PlumpJack) Source: LAFCo, 2015. Even with all the proposed development described above, the population of permanent residents is projected to remain consistent with that shown in Table 12.3 above. RSG’s Comprehensive Fiscal Analysis projected a permanent population of 1,112 persons by the year 2025, slightly lower than the 1,702 persons in the year 2027 projected by Table 12.3. Visitor population, including both overnight visitors and day-use visitors is expected to increase significantly, above today’s baseline. The cumulative impact analysis in the EIR’s prepared on a project-specific basis will analyze the effect of this projected increase in visitor population. Disadvantaged Unincorporated Communities As described in Chapter 3, LAFCo is required to consider the provision of public services to disadvantaged unincorporated communities (DUCs). Relevant data were reviewed for the Alpine Springs area. No DUCs have been identified within Squaw Valley PSD boundaries, its SOI, or adjacent areas. The U.S. Census 2010 found the median household income (MHI) in the 96146 zip code was $52,333.14 This is higher than the DUC threshold MHI of less than $48,706 (80 percent of the statewide MHI). Additionally, this area does receive adequate water, wastewater, and fire protection services as detailed in this MSR. Please see Chapter 3, Section 3.6 of this MSR for more information on disadvantaged unincorporated communities. 12.7: Financing This section evaluates the factors affecting the financing of operations and improvements for SVPSD. Information on District financing is derived from independently audited financial statements for the Fiscal Year 2011/2012, as well as information provided by District staff. These statements represent the financial statements of the District’s consolidated services, and follow Government Accounting Standards Board (GASB) method of Accrual accounting. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2013. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: http://www.svpsd.org/. 14 2010 census via American Fact Finder website at: <http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF>. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-15 North Tahoe and Martis Valley MSR District Revenues and Expenditures The economy continues to pose a hardship to the District due to greatly reduced development resulting in low connection fees, reduced property taxes, and very limited new construction and remodel permit fees. The District had an overall decrease in net assets in 2012 (McClintock Accountancy Corporation, June 30, 2012, p. 7). The statement of net assets shows a current financial position with Total Current Assets as $4,982,000 and total liabilities as $3,281,000 (McClintock Accountancy Corporation, June 30, 2012, p. 10). The following table includes a comparison of the 2010/2011 and 2011/2012 fiscal years of the District’s government-wide financial data. Table 12-6: Changes in Net Assets (in Thousands) – Fiscal Years 2010/2011 and 2011/2012 Governmenta Business-Type Total Total l Activities Activities (Fire) (Utility) 2011 2012 2011 2012 2011 2012 Dollar % Change Change Current and other 922 807 5,582 4,175 6,504 4,982 (1,522 -23.40% assets ) Noncurrent assets 5,845 5,644 11,202 11,418 17,047 17,062 15 0.09% Total Assets 6,76 6,45 16,78 15,59 23,55 22,04 (1,507 -6.40% 7 1 4 3 1 4 ) Long-term debt 545 468 2,131 2,003 2,676 2,471 (205) -7.66% Other liabilities 362 407 623 403 985 810 (175) -17.77% Total Liabilities 907 875 2,754 2,406 3,661 3,281 (380) - 10.38% Net Assets: invested 5,121 4,993 9,282 9,639 14,403 14,632 229 1.59% in property, equipment, net of related debt Restricted 123 134 601 666 724 800 76 10.50% Unrestricted 616 449 4,147 2,882 4,763 3,331 (1,432 -30.07% ) Total Net Assets 5,86 5,57 14,03 13,18 19,89 18,76 (1,127 -5.67% 0 6 0 7 0 3 ) Program Revenue 5 20 1,960 2,058 1,965 2,078 113 5.75% General Revenues Property Tax 2,448 2,428 426 372 2,874 2,800 (74) -2.57% Dedications 0 0 34 0 34 0 (34) - 100.00% Other 45 18 263 182 308 200 (108) -35.06% Total Revenue 2,49 2,46 2,683 2,612 5,181 5,078 (103) -1.99% 8 6 Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-16 North Tahoe and Martis Valley MSR Expenses 2,528 2,751 2,818 3,455 5,346 6,206 860 16.09% Increase (Decrease) (30) (285) (135) (843) (165) (1,128 (963) 583.64% in Net Assets ) Source: Independent Auditor’s Report, Fiscal Year 2011/2012 (McClintock Accountancy Corporation, June 30, 2012) The Statements of Activities and Changes in Net Assets (Tables 12-7 & 12-8, below) provide an indication of the District’s financial condition. Total Current Assets changed significantly due to the payout of higher expenses, more service fees sent to taxes and more prepaid expenses than in prior years. Revenue increased slightly in 2012 due to construction on two new homes and significant remodels on two others. Expenses increased in 2012 mostly due to the payoff of remaining CalPERS side funds, which were funded through the capital reserve fixed asset replacement funds through a 10 year loan at 3 percent interest (versus the 7.75 percent charged by CalPERS). Maintenance on property and vehicles along with increases for chemicals and licenses continue to increase field expenses (McClintock Accountancy Corporation, June 30, 2012, p. 6). The District has Governmental Funds, which include a Utilities Fund and a Fire Fund. Table 12-7: SVPSD Statement of Activities and Changes in Net Assets, Fiscal Year 2011-2012 Source Governmental Business-Type Total Activities (Fire) Activities (Utility) Program Revenues Mutual Aid $12,000 0 12,000 Service Fees 0 1,989,376 1,989,376 Fire Protection Fee 8,390 0 8,390 Connection Fee 0 68,408 68,408 Total Program Revenue $20,390 $2,057,784 $2,078,174 Expenditures Salaries & Wages 1,243,216 895,741 2,138,957 Employee Benefits 1,041,586 1,185,405 2,226,991 Field Operations 144,455 351,502 495,957 General & Administrative 73,874 187,789 261,663 Other Expenses (interest, depreciation) Depreciation 224,918 753,504 978,422 Interest 22,626 80,758 103,384 Total Expenditures $2,750,675 $3,454,699 $6,205,374 General Fund Revenues Property Taxes 2,427,616 371,895 2,799,511 Administrative Fees 0 15,372 15,372 Grants 0 10,000 10,000 Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-17 North Tahoe and Martis Valley MSR Interest 9,324 88,863 98,187 Rental Revenue 0 63,355 63,355 Other 8,535 4,542 13,077 Total General Fund Revenues $2,445,475 $554,027 $2,999,502 Increase (Decrease) in Net (284,810) (842,888) (1,127,698) Assets Net Assets – Beginning of 5,860,137 14,030,039 19,890,176 Year Net Assets – End of Year $5,575,327 $13,187,151 $18,762,478 Source: Independent Auditor’s Report 2011/2012 (McClintock Accountancy Corporation, June 30, 2012, pp. 21-23) Table 12-8: SVPSD Statement of Activities and Changes in Net Assets Business-Type Activities, Fiscal Year 2011/2012 Water Sewer Garbage Source Department Department Contract Total Utility Program Revenues Service Fees $1,007,216 759,081 223,079 1,989,376 Connection Fees 56,370 12,038 0 68,408 Total $771,119 $223,079 $2,057,784 $1,063,586 Revenues Expenditures Salaries & Wages 543,629 350,848 1,264 895,741 Employee Benefits 712,968 471,832 605 1,185,405 Field Operations 103,596 30,734 217,172 351,502 General & 0 187,789 129,154 58,635 Administrative Other Expenses Depreciation 475,188 278,316 0 753,504 Interest 55,723 25,035 0 80,758 Total $2,020,258 $1,215,400 $219,041 $3,454,699 Expenditures General Revenues Property Tax 312,970 58,925 0 371,895 Administrative 9,223 6,149 0 15,372 Fees Grants 10,000 0 0 10,000 Interest 23,875 61,426 3,562 88,863 Rental Revenue 31,678 31,677 0 63,355 Other 2,644 1,898 0 4,542 Total General $390,390 $160,075 $3,562 $554,027 Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-18 North Tahoe and Martis Valley MSR Revenues (Decrease) ($566,282) ($284,206) $7,600 ($842,888) Increase in Net Assets Source: Independent Auditor’s Report 2011/2012 (McClintock Accountancy Corporation, June 30, 2012, pp. 24-26) Recurring Revenues Recurring revenues for the District include property taxes, service charges, connection fees, interest accrual and grant funds as obtained. The District sets its rates based on a comprehensive rate study, which was revised and completed in 2004 and is reviewed annually as part of the budget process. The methodology includes determination of the total cost of service and customer classifications, which provides the basis for rate setting each budget cycle. During development of the rate study, the District held several service rate committee meetings with various customer groups including commercial property owners, single family residential owners and condominium owners. A key item addressed ensured no customer service class would subsidize another. This is achieved through the rate design which develops rates based on water consumption history and a cost of service analysis. The commercial customers’ have a rate setting calculation as do the two other classes of customers: (1) single family residences (some with apartments) and single-meter condominiums, and (2) multiple unit condominiums with a single meter (SVPSD, 2014, p. 32). Tax revenues are also used to calculate rates as the District applies projected tax revenues to keep rates from increasing beyond what is necessary. The District’s tax income decreased by almost $351,000 in fiscal year 2010-2011 due to property re-assessments of major commercial properties and condominiums. The reduced tax income has resulted in the District’s need to increase its service rates (SVPSD, 2014, p. 32). Recurring Expenditures Tax revenues allocated to the District are reduced by the State Education Revenue Augmentation Fund (ERAF). The District’s tax revenue was reduced in fiscal year 2004/2005 by $262,324 and by $131,162 in 2005/2006 in order to fund the State ERAF. In fiscal year 2012/2013 reductions were $513,178 and $513, 706 in 2013/2014 (SVPSD, 2014, p. 34). District Assets and Liabilities The District’s Board of Directors is responsible for establishing necessary reserves for the provision of contingencies and emergencies. Fixed asset replacement funds were established in May 1995 to establish reserves for infrastructure replacement and assure that necessary funds are available for catastrophic emergency situations (SVPSD, 2014, p. 31). The District’s depreciation policy includes depreciation of all exhaustive fixed assets, which is charged as an expense against the appropriate asset. Depreciation is calculated over the estimated useful life using the straight line method. Estimated useful life estimates are 3 to Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-19 North Tahoe and Martis Valley MSR 50 years for facilities and systems and 5-20 years for vehicles, furniture and equipment (SVPSD, 2014, p. 31). Long Term Liabilities and Debt Long-Term Liabilities The largest impact to the District’s budget is the significant reduction in property tax revenue resulting from the Great Recession starting in 2008. Significant increases in expenses include health care and workers compensation insurance. Information technology and related maintenance expenses continue to increase but are necessary to comply with most state and county mandates. Utility and fuel costs continue to rise, are unpredictable, and impact the District’s bottom line (SVPSD, 2014, p. 31). Debt Without Government Commitment The District has a loan agreement with Municipal Finance Corporation for the purchase of a 2.7-acre parcel of land for the District’s Fire Station and Administration Center. The loan in the amount of $2,012,000, at 5.1 percent, calls for semi-annual payments in varying amounts for 15 years with maturity of the loan on December 24, 2016. The District entered into a 25- year capital lease agreement with the California Infrastructure and Economic Development Bank to finance $2 million of the cost to construct the District’s Fire Station and Administration Center, at an interest rate of 3.63 percent. This loan calls for semi-annual payments of varying amounts with the final maturity of the loan scheduled for August 2028. Asset Maintenance and Replacement The District manages a Capital Improvement Plan/Replacement Plan for all of its services areas to identify infrastructure needing improvement or replacement due to substandard capacity and/or condition. The Plan includes identification of assets such as pipes, transmission lines, water supply sources, hydrants, water storage tanks, major equipment, vehicles, etc. The major element is infrastructure necessary to develop a secondary water supply source, including a transmission main(s), one or more wells, a water storage tank, pump station(s), pressure-reducing valves, and hydrants (SVPSD, 2014, p. 30). The 10-year CIP is a part of the annual budget. Photo courtesy of http://www.svpsd.org/ 1 Fixed Asset Replacement Funds were adopted in May 1995. The Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-20 North Tahoe and Martis Valley MSR purpose is to establish fund reserves as identified in the Water System Master Plan and Sewer System Master Plan (2010) for replacement of assets at the end of their useful life. By ensuring the money will be available, the program reduces the District’s future need to borrow money, pay long term interest on debt, or sharply increase water or sewer rates. In March 2006, the Asset Replacement Fund spreadsheets were reviewed, updated, and revised to estimate recovery cost allocations. These spreadsheets are revised annually to include new acquisitions and eliminate surplus or discarded items (SVPSD, 2014, p. 33). Cost Avoidance The District implemented joint agency insurance practices, contract services and various technology/management practices to optimize management efficiencies and to control service costs. For example, they now utilize a networked printer/copier/fax/scanner for all administrative operations. The District also cut staff in the Administration Department and substantially reduced overtime in the Fire Department by reducing its levels of service for fire protection and EMS services; by implementing a three person per shift minimum standard, a reduction from the prior four person per shift minimum standard (SVPSD, 2014, p. 37). The District has implemented energy reduction plans such as using VFD controllers and LED lighting. The Squaw Valley Mutual Water Company contracts with the SVPSD to provide Operations and Maintenance (O&M) services, which results in a cost savings to the Squaw Valley Mutual Water Company. The District also began to provide snow removal services on Placer County’s bike trails in Squaw Valley with District forces (in lieu of contracting for services) to reduce labor costs and leverage grant funding to support the costs of the operation. Other than that, over the last five years the District has reduced its expenses (trainings, travel, discretionary spending, etc.) while maintaining a high level of service (SVPSD, 2014, p. 37). The District noted that a consolidation with small neighboring utility districts, including with the Squaw Valley Mutual Water Company, could improve the economies of scale and make service deliveries more efficient and cost effective. 12.8: Water Services Water Service Overview The SVPSD is one of two municipal water service providers within the Olympic Valley. Located within the SVPSD boundaries is a mutual water company, the Squaw Valley Mutual Water Company (SVMWC), which provides water service to 281 residential customers within a 115- acre portion of the Olympic Valley lying north of Squaw Creek (Figure 12-3). The SVPSD provides service to all other residents and customers within the Valley and within its boundaries. Additionally, two other metered entities pump water from the groundwater basin including Resort at Squaw Creek (golf course irrigation and snowmaking) and Squaw Valley Resort (snowmaking). Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-21 North Tahoe and Martis Valley MSR Figure 11-3: SVPSD and SVMWD Service Areas Source: Olympic Valley Groundwater Management Plan, 2007; pg 14. Water Supply/Demand Water Supply The District is located in the Olympic Valley watershed, which is part of the larger Tahoe- Truckee River Basin. The District relies on two groundwater sources: groundwater from the alluvial Olympic Valley Groundwater Basin (Basin) and groundwater from horizontal fractured bedrock wells in the mountainous areas above the Olympic Valley Floor. Neither source is adjudicated, making the District’s water rights subject to California Groundwater Law. Recharge to the Basin occurs from infiltration of precipitation and snowmelt on the Olympic Valley floor, overland flow from the surrounding mountainsides, mountain front recharge in the higher elevation sediments on the edges of the Basin, and infiltration from Squaw Creek. The District relies primarily on the western portion of the Basin. The entire aquifer in the Valley is approximately one square mile, ranges in depth from 75 to 150 feet. The eastern portion does not produce water that meets drinking water standards for iron and manganese without treatment. Test wells drilled in other locations of the watershed have been in fractured bedrock and typically have low production, many with poor water quality (SVPSD, 2014). Several previous studies have attempted to quantify the volume of groundwater that can be produced from the Olympic Valley Groundwater Basin over some period of time without causing impairment of one kind or another. More recent studies completed on behalf of the SVPSD have attempted to quantify a sustainable yield for the Basin using the existing Model. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-22 North Tahoe and Martis Valley MSR However, these studies evaluated the maximum amount of water that could be pumped from the Basin using existing wells during a critically dry year without significantly affecting the pumping water levels of the shallowest existing municipal supply well (West Yost 2001 and 2003). This sustainable yield actually is an operational yield that pertains more to the maintenance of specific well operations than to the potential yield of the Basin (Todd 2012, Slade 2006) (SVPSD, 2014). These attempts to quantify a sustainable yield reported a wide range of maximum groundwater production volumes including West Yost 2001 and Williams 2004. The large range of reported maximum supply values was the result of variations in the timing and distribution of demand and pumping. While each scenario represented a possible future scenario, the wide range indicates that the assumptions regarding these distribution factors play a significant part in the results of the analyses. Since a sustainable yield analysis may oversimplify the dynamic complex Olympic Valley Groundwater Basin system (SVPSD, 2014), a different approach was pursued. Evaluation of the occurrence and flow of groundwater in the Olympic Valley Groundwater Basin and the related water balance has shown that the groundwater system in Olympic Valley is highly dynamic and responsive to the timing and spatial distribution of recharge, demands, and pumping. This small groundwater system has a very high volume of water flowing through the watershed on an annual basis, which far exceeds the volume of groundwater storage or use (Todd 2012). This is clearly illustrated by the large volume of rejected recharge that has been identified by HydroMetrics and others (HydroMetrics 2013, Todd 2012) (SVPSD, 2014). Figure 12-4: SVPSD 15-year Groundwater Production Trend (in million gallons) (1985-2012) 150.54 160 146.68 141.29 136.29 145.08 141.06 135.19 141.44 137.00 136.35 140 118.67 119.88 121.89 120 116.30 112.48 100 80 60 40 20 0 Source: SVPSD Response to LAFCO’s request for information, 2014. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-23 snollaG fo snoilliM 8991 9991 0002 1002 2002 3002 4002 5002 6002 7002 8002 9002 0102 1102 2102 North Tahoe and Martis Valley MSR There is additional water supply available within the District’s service area, although it consists of groundwater which underlies privately-owned property. The majority of the remaining groundwater resources that lies under the private property holdings has been maintained to meet demands of future development and has historically been unavailable to the District (SVPSD, 2014, p. 14). However, those property owners have submitted a development application for the proposed Village at Squaw Valley Specific Plan, which proposes a water supply be provided from the western portion of the aquifer. Placer County has recently assessed the potential impacts of the project through preparation of a Draft- and Final EIR. As required by state regulations, a Water Supply Assessment was prepared by the District to provide an analysis of water supply and demand of both for existing and future demand (see Water Demand subsection, below). The SVPSD is the lead groundwater management agency for the alluvial Olympic Valley Groundwater Basin (Basin) and there are three other water purveyors which pump groundwater. The District has prepared a collaborative Groundwater Management Plan (GMP), the Olympic Valley Groundwater Management Plan, and maintains a numerical MODFLOW groundwater model representing the Basin, which is a good representation of groundwater flow in the Basin. (SVPSD, 2014, pp. ES-2). The GMP was first adopted in 2007, with subsequent groundwater condition reports completed in 2008, 2009, and 2011. The GMP deduced that although the basin is recharged to some maximum level every winter and spring, water levels in the aquifer in late summer and fall are dependent on the amount of snowmelt during the spring and summer (SVPSD, 2007, p. 34). Neither the GMP nor any of the subsequent groundwater condition reports showed any indications of overdraft conditions in the Basin (SVPSD, 2014, pp. 5-4). The District holds a Water Supply Permit issued by the California Department of Public Health (CDPH), last issued on January 25, 1977. The permit is automatically renewed unless it is modified. The District pays an annual fee for permitting and CDPH conducts inspections every two years. The 2011 CDPH Inspection Report recommends that a full permit be reissued by CDPH to include new facilities. The CDPH identifies the District as a T-1 and D-2 facility (SVPSD, 2014, p. 13). The District’s average annual production from 1998-2007 was approximately 140 MG or 429 AFA. Additionally, producing an average of 31.8 AFA from the horizontal well, the District has pumped an average of 397.6 AFA from Wells 1R, 2, 3 and 5 R in the Basin (SVPSD, 2014, p. 15). Water Demand The SVPSD currently serves 1,569 residential connections and 39 commercial entities (SVPSD, 2014, pp. 2-2). The current average demand for the SVPSD is 406 acre-feet per year (AFY) (SVPSD, 2014, pp. ES-1). Future demand for the District is expected to increase to 777 AFA (SVPSD, 2014, pp. A-2). Additionally, the District wholesales water to the Tahoe City Public Utilities District (Tahoe-Truckee Forest Tract water system), which typically consists of 1.0 to 1.5 MG during the maximum month in the summer and 4.5 to 5 MG annually (CDPH, 2011, p. 2). Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-24 North Tahoe and Martis Valley MSR Table 12-9: SVPSD Water Demand 2007 Winter Summer Peak 0.523 MGD 0.827 MGD Average 0.323 MGD 0.609 MGD The 2014 Water Supply Assessment prepared for the Village at Squaw Valley Specific Plan determined that water supply in the Basin is sufficient to meet the expected demand from the Village project as well as existing and planned future uses (based on the 1983 Squaw Valley General Plan and Land Use Ordinance) in the Olympic Valley over the next 25 years in normal, single, and multiple dry years. The Basin is not currently in overdraft and is not projected to be overdrafted with the future demand (SVPSD, 2014, pp. 8-2). The Water Supply Assessment was updated in 2015 and is available in Appendix A of the County’s FEIR. This update concludes that “The total water demand in Olympic Valley at 2040 was estimated to be 1,254 AFY, which is an increase in demand of 383 AFY compared to historical water use. Peak daily demand estimates associated with these annual demands indicate that the Project will require four new wells and that the non-project SVPSD demands will require an additional two new wells, for a total of six new wells in the SVPSD water supply system” (SVPSD and Placer County, 2015). Water Infrastructure and Facilities Treatment Systems The District is not required to provide continuous disinfection of its municipal water. However, every year over a two week period, while flushing the water mains, the District disinfects the distribution system as preventative maintenance. Due to previous high lead and copper results in the distribution system, the District adds sodium hydroxide to the water to raise the pH of the water from the naturally occurring pH levels (CDPH, 2011, p. 3). Water Storage The District maintains three water tanks with a combined capacity of 1.785 million gallons (MG). The tanks are steel construction, the oldest having been constructed in 1980 and the other two in 1990 and 1991. The Waterworks Standards require a water system serving less than 1,000 service connections to provide storage at least equal to the maximum day demands (MDD) in each pressure zone as well as the system as a whole. The highest estimated MDD over the past five years was 918,000 gallons (including water sold to Tahoe City PUD). The District’s current storage capacity of 1.765 MG is nearly double the MDD (Table 12-10). Based on the number of District service connections, the estimated MDD in Zone 3 is 24,000 gallons, which is much less than the storage capacity in Zone 3 of 135,000 gallons. In Zone 2, the MDD is 28,000 gallons and storage capacity is 500,000 gallons. The estimated MDD in Zone 1 is 866,000 gallons, which is less than the storage capacity of 1.13 MG. Additionally, water can flow by gravity from Zones 2 and 3 into Zone 1. Therefore, the District meets Waterworks Standards for storage capacity in each pressure zone as well as in the system as a whole (CDPH, 2011, p. 5). Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-25 North Tahoe and Martis Valley MSR Table 12-10: Water production and storage facilities Estimated Reliable Capacity Production Facility Pumping Capacity (gpm) Storage Facility (million gallons) Well #1R 420 West Tank 1.15 Well #2R 350 max, 230 summer East Tank 0.50 Well #3 120 Zone 3 Tank 0.135 Well #4 Not in service Well #5R 405 Horizontal Well 10 Total Capacity 1,185 1.785 (max) Source: SVPSD Response to LAFCO Request for Information, 2014. Distribution and Transmission The SVPSD water system consists of three pressure zones: Zones 1 through 3. Zone 1 is the main pressure zone. All vertical wells pump into this zone based on the level in the West Tank. Water is pumped into Zone 2 via the Zone 2 Booster Station. The operation of this booster station is based on the level in the East Tank. The horizontal wells also provide water to this zone. Water from Wells 1R and 5R can also be directly pumped to the Zone 2 distribution system via a pipeline that follows along the south side of the valley. This line is normally shut off so that water form Well 1 can be blended prior to entering Zone 2. The transmission main is flushed twice per year. Water is supplied from Zone 2 to Zone 3 by the Zone 3 Booster Station. The operation of this booster station is based on the level in the Zone 3 Tank (CDPH, 2011, p. 5). The District distribution system was last evaluated in 2005 by the District’s consulting engineer, which concluded that approximately 1,200 feet of steel lines would need replacement within the next 5 to 10 years. The District has been working on replacing all 1- inch and 2-inch diameter mains with 4-inch or larger mains in accordance with Waterworks Standards. The District plans to replace a total of 400 feet of small diameter steel pipe to complete the recommended main replacements (CDPH, 2011, p. 6). The District’s hydraulic model of its Water System is currently being updated to assess capacity in support of the Village at Squaw Valley Specific Plan. Challenges in Provision of Water Services The biggest challenge the District currently faces is its water supply infrastructure. The need to improve the reliability of the District’s water supply may be controversial and expensive; however, the District requires redundancy in it water supply resources to fulfill its mission (SVPSD, 2014, p. 36). During these record years of drought, California faces water supply challenges. Drought is a specific risk which has been identified for the SVPSD (County, April 2010). Water conservation is of increasing importance as we face multiple years of significantly below normal levels of Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-26 North Tahoe and Martis Valley MSR precipitation and snow pack. The SVPSD has worked diligently to promote water conservation and minimize water loss to control costs for producing water and to preserve the valley’s water source. As a result of these efforts, the District has achieved greater success in conserving water than the state’s goal to reduce per capita consumption by 20 percent by 2020. The District has achieved a 26 percent reduction since 2006, while keeping the annual water loss below 10 percent (the national average is 14 percent). Water production in Squaw Valley peaked in 2000 at 151 MG for the year. In 2011, the District produced 112 MG, a 26 percent reduction in groundwater pumping. In its response to LAFCO’s request for information, the District provided the following summary of its efforts over the last several decades to promote water conservation and better understand the limits of its drinking water sources (SVPSD, 2014, p. 19). • In 2003, an inverted block rate structure (wherein unit rates increase as consumption increases) was instituted as well as the creation of a second tier for annual consumption greater than 120,000 gallons. The first Water System Capacity and Reliability Study was also completed. • In 2004, a third tier was added to our rate structure for customers using over 220,000 gallons. • In 2004, and again in 2007, the Water Code was modified to include state requirements for low flow plumbing fixtures, irrigation conservation, and drought contingency planning. Free copies of the Home Landscaping Guide for Lake Tahoe and Vicinity developed by University of Nevada Reno are distributed by the District. • In 2005, the District performed a water system pipeline analysis that assessed the age and condition of all water lines in the District; it was used to update the Asset Replacement Program. • In 2006, the Water System Fixed Asset Replacement Program was updated. • In 2007, all water meter registers were upgraded and automated leak alerts became standard, triggering more leak notifications and fewer repeat-reads. Monitoring devices for home-use was made available to our customers to allow real-time monitoring of water consumption. • In 2007, the District completed the Olympic Valley Groundwater Management Plan and pursued implementation of the Plan with completion of three periodic Reviews and Reports. • In 2008, a fourth tier was added to our rate structure for customers using over 280,000 gallons. • In 2009, the Water Code was altered to require landscape meters on all new homes and for new landscaping projects. The District also began posting water consumption records on its web site for customers to review their usage. Information on checking for leaks and saving water is also on the web site. • In 2010, the District formed the Groundwater Monitoring Plan and Database as a repository for groundwater level monitoring, pumping data, and stream gauging performed by the District as well as other stakeholders. • In 2012, the District purchased updated leak detection equipment and also acquired a test meter to perform water meter testing. • In 2014, the Olympic Valley Creek / Aquifer Interaction Study was completed. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-27 North Tahoe and Martis Valley MSR Water Service Adequacy The 2011 CDPH report determined the overall system to be well operated and maintained (CDPH, 2011, p. 10). Further, both the CDPH and the more recent Village at Squaw Valley Specific Plan (VSVSP) Water Supply Assessment (WSA) determined the District has sufficient source capacity from the aquifer for both existing and future development projected by Placer County in the next 25 years (SVPSD and Placer County, 2015). Additional infrastructure (new wells and upgraded water pipes) and perhaps new water storage will be required to meet future water demands. The District also participates in the Tahoe-Sierra IRWM Group and is included in the group’s current Plan. 12.9: Wastewater Services Wastewater Service Overview The SVPSD owns, operates and maintains the wastewater collection system that services the Olympic Valley, which discharges to the TTSA interceptor line on the east side of Highway 89. Wastewater collected in the District’s collection system is treated by the Tahoe-Truckee Sanitation Agency (TTSA) in Truckee (SVPSD, 2014, p. 21). The District does not provide wastewater collection services outside of its service boundary. The District participates in the Tahoe Truckee Area Emergency Contingency Plan with 13 other districts made up of water districts, improvement districts, public utility districts, community services district, sewer districts and sanitation agencies. The objective of the plan is to prevent, minimize, and mitigate any disruption in sewage collection, conveyance, or treatment systems, and water systems in the plan area in order to insure continuing compliance with all applicable laws and regulations for the protection of public health and safety, and the preservation of water quality of Lake Tahoe and the Truckee River Watershed. This plan is intended to assist all public utility, improvement, and county water districts in the Tahoe-Truckee area deal with emergencies and natural disasters affecting the services provided by these districts. Additionally, this plan is intended to assist all districts in updating their specific emergency action plans in a similar and accepted format. Further, this plan will insure that districts in the Tahoe-Truckee areas will be in a position to render effective and efficient mutual aid when necessary. The Agreement for Emergency Aid will provide for emergency cooperation throughout the Tahoe-Truckee area. With the mechanics of rendering mutual aid in place, assistance can be requested and can be available without any delay from the assisting district (SVPSD, 2014, pp. 7-8). Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-28 North Tahoe and Martis Valley MSR Wastewater Capacity The District currently has 1,073 connections (T-TSA personal communication) including 39 commercial customers and no industrial customers (SVPSD, 2014, p. 21). The District has no EPA categorical users. The District has an average day demand (ADD) of 0.632 MGD and a peak flow of 2.007 MGD. The District prepared a Sewer System Management Plan (SSMP) (SVPSD, 2009) pursuant to State Water Resources Control Board Order No. 2006-0003 and it complies with other provisions of the Statewide General Waste Discharge Requirements. Wastewater Infrastructure and Facilities The District installed sewer flow meters to monitor for inflow and infiltration (I/I) to reduce the potential for sewer system overflows (SSOs) and reduce the cost of treatment at the TTSA facility. Collection and Transmission The District’s wastewater collection system consists of approximately 18.5 miles of gravity pipe ranging from 4 to 15 inches in diameter. There are two inverted siphons in the system; one transports wastewater under Squaw Creek to the main interceptor in Squaw Valley Road and the other lies under the Truckee River and discharges to the TTSA’s interceptor. There are no pumping or treatment facilities within the collection system (SVPSD, 2009, pp. 4-2.1). The District takes the following measures and testing procedures to ensure the integrity of the system: • Cleans 50 percent of the collection system annually • Television inspection (TVI) of 25 percent of the collection system annually • Analyze data from TVI’s to identify and complete projects to correct infiltration and inflow and problems that could cause sewer system overflows Challenges Factors which influence the District’s ability to supply wastewater service include age, condition and size of wastewater pipelines (SVPSD, 2014, p. 21). The District indicates that small portions of its sewer system will need replacement in the next five years (SVPSD, 2014, p. 36). Wastewater Service Adequacy The District did not identify any inadequacies in the provision of wastewater collection services, nor were any identified in the preparing of this MSR. No violations were reported in the State’s reporting system. 12.10: Fire and Emergency Services Service Overview The District provides fire and emergency response services through its Squaw Valley Fire Department (SVFD). Several natural hazards have been identified for the Squaw Valley area Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-29 North Tahoe and Martis Valley MSR including wildfire, flooding, soil erosion, landslides, earthquakes, and severe weather (County, April 2010). Safety is particularly necessary in Squaw Valley because the area has only one means of ingress and egress making it a challenge to implement an emergency community evacuation (County, April 2010). These potential hazards increase the importance of the fire and emergency services the District provides. In 2006, the SVFD transitioned from Basic Life Support (EMT) level emergency medical services to Advanced Life Support (Paramedics). Additionally, the SVFD provides free child passenger safety car-seat fittings and child passenger safety education in both the District and the region using nationally certified technicians. The SVFD provides monthly community CPR classes and provides first aid and CPR training to local employers. The District adopted and enforced residential fire sprinkler regulations and carbon monoxide (CO) detection in all residences before these systems were required under the California Building Code and received a grant to distribute free CO detectors to all of the residences within its service area to assure that all homes were in compliance at no cost to the property owner (SVPSD, 2014, p. 40). Fire and Emergency Response The Placer County Sheriff’s Office and California Highway Patrol (CHP) provide public safety answering points (PSAP) for landline and cellular calls respectively. All calls for fire, rescue or emergency medical services are transferred to the CalFire Grass Valley Emergency Command Center for dispatch. All local government fire agencies in the area are dispatched by CalFire (SVPSD, 2014, pp. 24-25). The SVFD has a current Insurance Services Office (ISO) Public Protection Class of 2 within hydranted areas and PPC 2Y in areas without. ISO ratings take into account response times, available equipment and personnel that can be used to help determine the adequacy of a District’s response capabilities. The average response time for an incident varies by location, but the SVFD’s goal is to respond to incidents within five minutes, 80 percent of the time; the District states that goal is consistently met (SVPSD, 2014, p. 25). In general, industry standards applicable to the SVFD are established by the National Fire Protection Association. These standards, among others, directly or indirectly affect the type of services, method(s) of delivery of those services, expansion, reliability, facility design and construction Table 12-11: Squaw Valley Fire and environmental issues that the District encounters. Department Emergency Response, 2012 SVFD has historically met or exceeded applicable Number of industry standards. Emergency Calls Fire Suppression 28 EMS/ALS 298 Fire and Emergency Services Rescue 23 Hazardous Materials 33 Infrastructure Needs and Deficiencies Other 125 Total 507 Water supplies for fire suppression include municipal Source: (SVPSD, 2014, p. 26) gravity-fed hydrant systems and the Truckee River for Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-30 North Tahoe and Martis Valley MSR those residences located outside of the hydrant area. The hydrant capacity and rating varies by location, but hydrant flows and storage capacities are generally sufficient throughout the District (SVPSD, 2014, p. 25). The District operates from one fire station, Station 21. An assessment of fire and emergency response facilities will be made as part of the Village at Squaw Valley Specific Plan Draft EIR. Fire and Emergency Management Efficiencies/Cost Avoidance/Facilities Sharing The SVFD consists of one Fire Chief, three fire captains, 3 engineers, 6 firefighter-paramedics and 6 part-time firefighters. The Fire Chief is overseen by the District’s General Manager. The SVFD spends considerable time on fire prevention planning and inspections. Every commercial occupancy is inspected at least annually with written findings and follow-up with the property owner until all deficiencies have been corrected. Places of assembly are generally inspected twice annually. The SVFD conducts defensible space inspections in accordance with California Public Resources Code 4291 on every residence annually and provides the property owner with a written inspection form and follow-up inspections and notification until all deficiencies are corrected. The SVFD achieves virtually 100 percent compliance each year and has for the past 20 years. Additionally, the District conducts fire prevention education and fire drills annually with schools within its jurisdiction (SVPSD, 2014, p. 26). Photo courtesy of http://www.svpsd.org/ The SVFD participates in a Boundary Drop Area Agreement with North Tahoe Fire Protection District and Truckee Fire Protection District as described below: • North Tahoe Fire (NTF) – Squaw Valley Fire (SVF) Boundary Drop Area: The NTF-SVF Boundary Drop Area is the area along and adjacent to the Highway 89 from 1700 River Ranch Road to the intersection of Highway 89 and Pole Creek Road. • Squaw Valley Fire (SVF)-Truckee Fire District (TFD) Boundary Drop Area: The SVF-TFD Boundary Drop Area is the area along and adjacent to Highway 89 from Alpine Meadows Road to West River Street. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-31 North Tahoe and Martis Valley MSR • North Tahoe Fire (NTF)-North Lake Tahoe Fire (NLT) Boundary Drop Area: The NTF-NLT Boundary Drop Area is the area along and adjacent to Highway 28 from between the intersection of Chipmunk Drive in Kings Beach, CA (western boundary) and Highway 28 to 120 State Route 28 in Crystal Bay, Nevada (eastern boundary). • North Tahoe Fire (NTF)-Northstar Fire (NSF) Boundary Drop Area: The NTF-NSF Boundary Drop Area is the area along and adjacent to Highway 267 from Highlands Drive to the Martis Dam Road. • North Tahoe Fire (NTF)-Meeks Bay Fire (MBF) Boundary Drop Area: The NTF-MBF Boundary Drop Area is the area along and adjacent to Highway 89 from Ellis Road to the Emerald Bay Snow Closure Gate. The SVFD also participates in mutual aid and area contingency plans. The SVFD has a mutual aid agreement and annual operating plan with the USFS to provide wildland fire suppression on public lands (USFS, 2011). The District also has a mutual aid agreement with the Lake Tahoe Regional Fire Chiefs Association, which includes fire, medical, and rescue services to the geographic boundaries of the membership of the Lake Tahoe Regional Fire Chief’s Association, primarily the Lake Tahoe Basin and Sierra Front, but also portions of Alpine County, California and Lyon County, Nevada (Lake Tahoe Regional Fire Chiefs Association, 2012). The SVPSD is a member of the Eastern Placer County Fire Chiefs Joint Powers Authority, the purpose of which is to provide cooperative ownership, management and operation of the mountaintop radio repeater network; partnership in training and the maintenance and testing of assets; and cooperative ownership of equipment (SVPSD, 2014, p. 8). Adequacy of Fire and Emergency Services Information provided by the District indicates an adequate number of firefighters and fire officers for efficient operations of the SVFD. Additionally, since the target response time of 5 minutes is met 80 percent of the time, fire and emergency services are considered adequate. 12.11: Solid Waste and Recycling Service Overview The SVPSD contracts with Tahoe Truckee Sierra Disposal Company (TTSD), a private company, for solid waste collection and disposal (SVPSD, 2014, p. 27). The District has no direct responsibilities in the delivery of this service to customers. Services provided by the TTSD include waste collection and disposal, public outreach, education programs, Christmas tree recycling, green waste pickup, meeting State mandated diversion rate requirements (AB 939), and participating in the curbside recycling “blue bag” program (Nevada LAFCo, 2006, pp. 2.5-1). Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-32 North Tahoe and Martis Valley MSR Infrastructure Needs and Deficiencies The TTSD provides collection services to residential and commercial customers within the District. Disposal is either at the Eastern Placer County Eastern Regional Sanitary Landfill or to the District’s Material Recovery Facility (MRF). The TTSD provides a voluntary household recycling program, as well as hazardous materials, oil, and green waste recycling. Management Efficiencies/Cost Avoidance/Facilities Sharing The contract for garbage services is administered by the SVPSD General Manager. Residential rates are currently $241.50 per single-family unit. The District paid approximately $224,298 in FY 2013/2014 for its contract with the Disposal Company and revenue for solid waste disposal services totaled $228,110. No opportunities for cost avoidance or facilities sharing were identified by the District or the consultants in preparing this MSR. The District maintains its constructed improvements at its Community Dumpster Facility to better serve residents within the District and reduce the frequency of bears and other wildlife eating human refuse and building a dependency on garbage as a source of food (SVPSD, 2014, p. 40). Challenges with Solid Waste Services No challenges were identified by the District, nor were any identified by the consultants in preparing this MSR. Solid Waste Service Adequacy The District did not identify any inadequacies in solid waste services, nor were any identified in the preparing of this MSR. 12.12: Determinations Population and Growth 1. Based on proposed developments, including the Village at Squaw Valley Specific Plan, the permanent population growth rate within the District is expected to be approximately 2 to 4 percent. 2. The Squaw Valley General Plan Land Use Ordinance projects that a seasonal overnight population of 11,000 to 12,000 people will need to be accommodated with a maximum skier capacity of 17,500 persons per day at buildout within the Valley. 3. There are a number of developments proposed within the District, the largest of which include The Village at Squaw Valley Specific Plan and The Resort at Squaw Creek Phase II, which propose a combined total of 2,283 bedrooms. 4. An application to incorporate the Olympic Valley was made to LAFCO in June 2013. This application was subsequently withdrawn in December 2015. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-33 North Tahoe and Martis Valley MSR Disadvantaged Unincorporated Communities 5. No areas within the District qualify as a disadvantaged unincorporated community because the median family income exceeds 80 percent of the state median family income. Present and Planned Capacity of Public Facilities 6. SVPSD was established in 1964 to provide water services within its 15 square mile boundary in eastern Placer County. 7. SVPSD provides water, wastewater, fire and emergency services, and solid waste services within the Olympic Valley. Additionally, the Squaw Valley Mutual Water Company, a private water company, provides water within the Olympic Valley. 8. The SVPSD has sufficient capacity to serve existing and approved water and wastewater connections and maintains a comprehensive inspection and maintenance protocol. 9. A review of present and planned capacity of public facilities within the District was undertaken through the application for the Village at Squaw Valley Specific Plan and the associated Draft and Final Environmental Impact Report by Placer County. This project was approved by the Board of Supervisors in 2016 and is currently subject to litigation. Financial Ability of District to Provide Services 10. Similar to most public agencies in California, the District struggled with the loss of property tax revenue during the 2008-2009 recession. Since then the financial position of the District has improved and the District indicates it will be able to meet its financial obligations as they become due and will continue to be able to provide service obligations to its constituents. Status or, and Opportunities for, Shared Facilities 11. SVPSD collaborates with other agencies for mutual aid emergency services, including regional emergency planning efforts. 12. SVPSD maintains an interagency agreement with the Tahoe City Public Utilities District to supply water to 16 residences along Highway 89. 13. The PSD provides operations and maintenance services to the Squaw Valley Mutual Water Company on a contractual basis. 14. SVPSD provides snow removal services on Placer County’s Bike Trail in Squaw Valley. 15. The District provides storage facilities for records, files and maps for the Squaw Valley Mutual Water Company. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-34 North Tahoe and Martis Valley MSR Accountability for Community Service Needs, Including Governmental Structure and Operation Efficiencies. 16. The SVPSD provides water, wastewater collection, solid waste collection, and fire/emergency services within its boundaries. Additionally, the District provides water service to 16 single family residences within the Tahoe City Public Utilities District that are located along Highway 89; provides operations and maintenance services to the Squaw Valley Mutual Water Company on a contractual basis; and provides snow removal services on the Bike Trail in Squaw Valley on behalf of Placer County. Note: Placer County is the agency responsible for providing park and recreation services in Squaw Valley. 17. An elected five-member Board of Directors oversees the management of the District’s public resources. SVPSD meets its statutory financial reporting requirements that ensure its operations are conducted in an open and transparent manner. SVPSD meets its fiscal accountability requirement to its customers through budgetary and financial reporting using its website as a communication channel and other communication tools. The District provides public notice of meetings, and posts agendas and minutes online. 18. A General Manager oversees the District under the direction of the elected Board of Directors. The Board and management work together in the identification of goals and issues and assignment of staff as appropriate for each type of service provided. The District has adopted policies to guide District operations. SVPSD uses master plans, annual budgets and capital improvement planning to plan for and carry out operations and capital programs. The District continues its work to improve efficiency in numerous areas of service, including operations, water conservation, finance, and customer service. Water 19. SVPSD has sufficient water supply from its current sources to meet its present annual and peak day demand for domestic purposes, based on the data provided by the District. District groundwater diversion is not adjudicated and the Olympic Valley Groundwater Management Plan indicates there is adequate water supply available to serve an additional 100 single-family residences. 20. District water meets all state and federal water quality standards, and there are no current violations on file with the CDHP. 21. According to the District’s 2015 Water Supply Assessment for the Village at Squaw Valley Specific Plan, with the installation of six new wells there will be sufficient water supply to meet demand for the Specific Plan as well as County-projected growth for the next 25 years. 22. SVPSD water supply infrastructure appears well maintained and an annually updated CIP schedules needed maintenance and upgrades to keep the system in good working order. Water rates are based on the 2004 comprehensive rate study and adjusted annually during the budgeting process. New development, including the Village at Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-35 North Tahoe and Martis Valley MSR Squaw Valley, will finance infrastructure upgrades required to accommodate increased demand on the system. 23. The District serves 16 residences outside of its boundaries through an interagency agreement with the Tahoe City Public Utilities District. 24. The Squaw Valley Public Services District provides operations and maintenance services to the Squaw Valley Mutual Water Company on a contractual basis. Wastewater 25. SVPSD wastewater services consist of collection services only. Collected sewage is routed to the Truckee River Interceptor (TRI) Sewer Line for transmission to the Tahoe-Truckee Sanitation Agency treatment facility for treatment and disposal. 26. SVPSD staff indicates wastewater collection infrastructure appears to be adequate to accommodate existing wastewater flows. The District has a Sewer System Management Plan (SSMP) in place to assist in planning for future wastewater collection and maintenance needs. SVPSD periodically and regularly revisits and updates its SSMP as required by State Water Resources Control Board Order No. 2006-0003 (e.g., Statewide General Waste Discharge Requirements for Sanitary Sewer Systems). 27. SVPSD wastewater collection infrastructure appears well-maintained. In concert with the annual budget, rates are adjusted annually to fund normal maintenance and update needs. The District identifies needed maintenance and repairs to its system through the budgeting process. 28. New development, including the Village at Squaw Valley, will finance infrastructure upgrades and expansion required to accommodate increased demand on the system. Fire and Emergency Services 29. Squaw Valley Fire Department facilities and infrastructure are currently sufficient to allow for the efficient provision of services. 30. Anticipated future growth in the region will require fire protection and emergency services from the District. The DEIR and the FEIR for the Village at Squaw Valley Specific Plan has assessed the need for additional facilities and infrastructure that may be required with the proposed development within Olympic Valley. In order to adequately serve the proposed development, the EIR recommends that a new fire substation be constructed to serve the west end of Squaw Valley. Additional fire protection facilities and staffing will also be necessary. A development agreement with the developer is suggested as a method to finance the necessary improvements. 31. SVFD has historically met or exceeded applicable industry standards related to the provision of fire and emergency services and meets its goal of a five minute response time, 80 percent of the time. 32. The District has an ISO rating of 2 in areas equipped with fire hydrants, and 2Y outside the hydranted areas. 33. The SVFD has a comprehensive and effective mutual aid network with the federal, state, and local emergency service providers in the region. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-36 North Tahoe and Martis Valley MSR Solid Waste and Recycling 34. The District’s oversight of its solid waste removal contract with TTSD appears both sufficient and efficient. No management efficiencies, cost avoidance, or facilities sharing opportunities were identified in the preparation of this MSR. 12.13: References CDPH. (2011). Public Water System No. 3110020 Annual Inspection Report. Sacramento: CDPH. ECO:LOGIC Engineering, LLC. (2008, February). SVPSD 2007 Capacity and Reliability Study Update. Reno: ECO:LOGIC Engineering, LLC. Lake Tahoe Regional Fire Chiefs Association. (2012). Fire and Emergency Mutual Aid Agreement. McClintock Accountancy Corporation. (30, 2012). SVPSD Basic Financial Statements and Independent Auditor's Report. Olympic Valley. Melissa Siig. (2013, December 13). Squaw Valley Eyes Martis Valley's Water . Retrieved October 15, 2014, from Moonshine Ink: http://www.moonshineink.com/sections/spot- news/squaw-valley-eyes-martis-valley%E2%80%99s-water Placer County Memorandum from Todd Leopold, County Executive Officer By Erin Casey, Senior Management Analyst to the Board of Supervisors Regarding Snow Removal Services - Squaw Valley Trail. February 6, 2018. 16-pages. Available on-line at: <https://www.placer.ca.gov/upload/bos/cob/documents/sumarchv/2018/180206A/15 A.pdf>. PCWA. (2011). Placer County Water Agency 2010 Urban Water Management Plan. Auburn: PCWA. Placer LAFCO. (2004). Municipal Services Review Area 3 Services. Auburn: Placer LAFCO. Placer LAFCO. (July 24, 2015). Draft Comprehensive Fiscal Analysis of the Proposed Incorporation Of The Town of Olympic Valley. Authored by RSG Inc. Consultants. 75- pages. Available on-line at: <http://www.placer.ca.gov/departments/lafco>. PMC. (2013, February). Sphere of Influence Update Truckee Sanitary District Draft EIR. Retrieved January 18, 2014, from Nevada LAFCo: http://www.mynevadacounty.com/nc/lafco/docs/LAFCo%20Sphere%20Plans%20and%2 0Related%20Materials/DRAFT%20SPHERE%20PLAN%20UPDATES/TSD-Material%20for %20Website/CEQA%20Documents/Draft%20EIR%20for%20TSD%20SOI%20Update.pdf SVPSD. (2007). Olympic Valley Groundwater Management Plan. Hydro Metrics. SVPSD. (2009). Sewer System Managment Plan. SVPSD. SVPSD. (2014). LAFCO Request for Information; District Response. SVPSD. (2014). Village at Squaw Valley Specific Plan Water Supply Assessment. Prepared by Farr West, Hydro Metrics, and Todd Groundwater. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-37 North Tahoe and Martis Valley MSR SVPSD and Placer County. (July 22, 2015). Village at Squaw Valley Specific Plan Water Supply Assessment. Published as Appendix A to the FEIR on the Specific Plan. Prepared by Farr West, Hydro Metrics, and Todd Groundwater. Available on-line at: https://www.placer.ca.gov/departments/communitydevelopment/envcoordsvcs/eir/v illageatsquawvalley/final%20eir USFS. (2011, October 27). Cooperative Fire Protection Agreement, SVFD and USFS TNF. USFS Agreement 11-F1-11051757-035. Nevada City, CA. Draft Final MSR, August 2018 Chapter 12, Squaw Valley PSD 12-38 North Tahoe and Martis Valley MSR Chapter 13 Tahoe City Cemetery District Entrance to Trails End Cemetery This Municipal Service Review (MSR) describes the Tahoe City Cemetery District. This District was formed in 1965 and currently provides burial plots (grave sites) within the historic Trails End Cemetery. Table of Contents 13.1: Agency Profile ...................................................................................13-2 13.2: Overview of Agency ............................................................................13-2 13.3: Formation and Boundary .......................................................................13-3 13.4: Accountability and Governance ...............................................................13-5 13.5: Management Efficiencies and Staffing .......................................................13-7 13.6: Population and Growth ........................................................................13-7 13.7: Financing .........................................................................................13-8 13.8: Cemetery Services ............................................................................ 13-10 13.9: Service Adequacy ............................................................................. 13-12 13.10: Determinations ................................................................................ 13-14 13.11: References .................................................................................... 13-15 Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-1 North Tahoe and Martis Valley MSR 13.1: Agency Profile Tahoe City Cemetery District Type of District: Public Cemetery District Principal Act: The Public Cemetery District Law, California Health and Safety Code, Section 9000 et seq. Functions/Services: Provides burial plots (grave sites) within the historic Trails End Cemetery Main Office: 925 N. Lake Boulevard, Tahoe city, CA 96145 Mailing Address: P.O. Box 1528, Tahoe City, CA 96145 Phone No.: (530) 581-2879 Fax No.: (530) 581-5695 Web Site None District Secretary: Judy Friedman Phone N0.: (530) 581-5692 Email: judy@tahoepapertrail.com Governing Body: Board of Trustees Term Expires Meredith Rosenberg December 2021 Bonnie Dyer December 2019 James Scribner December 2021 Steve M. Glazer December 2019 Randal Pomin December 2021 Meeting Schedule: Third Thursday of each month at 5:00 PM, or as needed Meeting Location: Summer – at the Trails End Cemetery, 597 Fairway Drive, Tahoe City Remainder of Year – at the Blue Agave Restaurant at the Tahoe Inn, 425 N. Tahoe Boulevard, Tahoe City Date of Formation: 1965 Principal County: Placer County 13.2: Overview of Agency Summary Description of Existing Services The Tahoe City Cemetery District (TCCD or District) owns and operates one cemetery in Tahoe City, California. The District provides burial plots (grave sites) for direct burial and for cremains at the historic ‘Trails End Cemetery’ located at 597 Fairway Drive in Tahoe City. The District provides cemetery services to ‘Residents’ living within the District Boundary, and to ‘Nonresidents’ who meet District requirements. This normally means families who may not live in the District, but who have long-established ties to the Tahoe area. The cemetery Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-2 North Tahoe and Martis Valley MSR dates from the 1900’s, and has served generations of Tahoe pioneer families. The District is responsible for operation of the cemetery and an on-site chapel; including upkeep, care, maintenance and improvements to the cemetery property. This is the second Municipal Service Review (MSR) for the District. Location and Size TCCD is headquartered in Tahoe City, and serves an unincorporated portion of eastern Placer County comprising approximately 94 square miles. (Refer to Figure 13.1) The District boundary (which is different than the service area) extends from the Placer-Nevada County Line on the north to the Placer-El Dorado County Line on the south; and from the California- Nevada State Line on the east extending approximately 16 miles to the west, and consists of approximately246 square miles. While there are no incorporated cities within the District, there are a number of distinct communities, as well as portions of the Tahoe National Forest and Lake Tahoe within the District’s boundary. Major communities located within the District boundary are classified as Census Designated Places (CDPs) and include Tahoe City (the Sunnyside-Tahoe City CDP), Carnelian Bay, Tahoe Vista, Kings Beach, and Dollar Point. Other communities and recreation areas within the District include Homewood (and Homewood Mountain Resort), Ridgewood, Crystal Bay (California portion), Eder, Norden (and Sugar Bowl Resort), The Cedars, Olympic Valley (including Squaw Valley and Squaw Creek Resorts), Alpine Meadows (and0 Alpine Meadows Ski Resort), Tahoe Pines, Northstar California Resort, Ponderosa Palisades/Sierra Meadows, Martis Camp, Brockway, and Donner. It should be noted that while these communities are located inside the District’s larger boundary area, a number of these communities are located outside the District’s current “Service Area”. Please see Figure 13.1 for details. 13.3: Formation and Boundary The Tahoe City Cemetery District was established by the Placer County Board of Supervisors in 1965, although the cemetery itself pre-dates the District by more than 60-years. The original District boundary comprised approximately 246 square miles, including approximately 70 square miles within Lake Tahoe (Refer to Figure 13.1). Boundary History There have been no annexations or detachments to the District boundary since formation. Sphere of Influence The 2004 MSR for the Cemetery District indicates that the District boundary and Sphere of Influence (SOI) are coterminous (one and the same). However, Placer LAFCo files do not indicate whether or not a formal SOI was adopted for TCCD. The map that was provided (and which is in the 2004 MSR) appears to be more of a ‘Service Area’ than an SOI, as discussed below. Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-3 80 Donner Lake Truckee Glenshire-Devonshire North Shore Blvd 267 Kings Beach Tahoe Vista 89 28 Dollar Point PLACER COUNTY Lake Tahoe Sunnyside-Tahoe City 89 Meeks Bay 89 Loon Lake District Boundary District Service Area County Boundary ELDORADO COUNTY 0 1 2 Miles District Boundary and Service Area from Placer County LAFCo. Figure 13-1 TAHOE CITY CEMETERY DISTRICT North Tahoe and Martis Valley MSR Excluded and Extra-territorial Services The area identified on Figure 13.1 as the District’s Service Area excludes Lake Tahoe itself (which is appropriate given that no services are provided to that area). The Service Area also excludes that portion of the District north of Carnelian Bay (approximately 94 square miles), including Tahoe Vista, Kings Beach, Brockway, Crystal Bay, Eder, Norden, The Cedars, Northstar California Resort, Ponderosa Palisades/Sierra Meadows, Martis Camp, and Donner. Along the western boundary of the District, the Service Area has been extended westerly west of Alpine Meadows south to the Placer-El Dorado County Line, as well as an area northwest of Olympic Village. Areas of Interest TCCD and Placer LAFCo will need to consider which areas of the District to include or exclude in order to establish an accurate SOI. Once the SOI is determined, consideration will need to be given to which areas need to be annexed or detached from the District, if any. 13.4: Accountability and Governance TCCD is overseen by a five-member Board of Trustees, appointed to staggered terms by the Placer County Board of Supervisors upon recommendation of the District 5 Supervisor. Three Trustees are appointed to 3-year terms and two Trustees are appointed to 2-year terms. Current Board Members, terms, and expiration dates are as follows: Table 13.1: Board of Trustees Seat No. Member Name Term Expiration Selection Length of Term 1 Meredith Rosenberg December 2021 Appointed 4 years 2 Bonnie Dyer December 2019 Appointed 4 years 3 James Schribner December 2021 Appointed 4 years 4 Steve M. Glazer December 2019 Appointed 4 years 5 Randal Pomin December 2021 Appointed 4 years Data Source: https://www.placer.ca.gov/bos/committees-and-commissions/tahoe-cemetery- district The District is classified as an ‘independent special district’ even though the Board Members are appointed and not elected. The provisions of The Public Cemetery District Law (California Health and Safety Code, Section 9000 et seq.) apply. As such, the District is required to provide burial services for all residents within the District, subject to payment of reasonable fees to cover costs. The TCCD Board of Trustees hold regular meetings (as necessary) on the third Thursday of each month beginning at 5:00 PM. During the summer, the Board meets at the cemetery, while meeting for the remainder of the year are held at the Blue Agave Restaurant at the Tahoe Inn. Meeting agendas are posted at the Tahoe City Post Office, 950 N. Lake Tahoe Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-5 North Tahoe and Martis Valley MSR Boulevard, and are available by request to the District Secretary. Meeting minutes are also available upon request. The District does not have a website. Board meeting are open to the public and follow all requirements of the Ralph M. Brown Open Meeting Act. Trustees are compensated $50 per meeting for their service. No other remuneration or benefits are available. The Board adopted Rules and Regulations in October 2007 in order to insure that everyone is able to experience the peace, beauty and history of the sanctuary. The Rules and Regulations spell out how the District operates, as well as provides burial guidelines and requirements for memorial markers, coping and flowers. Figure 13.2 TCCD Organizational Chart Board of Trustees District Secretary Contract Contract Burial Maintenance Services Services The Board of Trustees is supported by a part-time Secretary who is compensated $550 per month. The Secretary is responsible for preparing District agendas and minutes, tracking and monitoring grave sites, deposits and fees, and the endowment fund. The District contracts with Green Thumb Ground Care for cemetery maintenance and upkeep. There are no District employees. Local Boy Scouts volunteer to assist clean-up efforts on an as-needed basis. The District reports that no complaints have been filed over the past five years. Complaints may be submitted to the District Secretary for consideration by the Board of Trustees. The Board of Trustees adopts an annual budget. In the past District audits were performed every other year. In the future the audits will be prepared every five years. Stroub and Company, CPAs conducted the most recent audits. Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-6 North Tahoe and Martis Valley MSR 13.5: Management Efficiencies and Staffing TCCD operates in an efficient manner consistent with its mission of providing reliable, affordable burial services. All District services are provided through contract with qualified companies. Overhead is kept to a minimum, and the Board Members are directly involved in District operations. Contract Services Green Thumb Ground Care located in Tahoe City provides landscape maintenance services at the cemetery. Contact Peter Gifford at 530-581-3183. 13.6: Population and Growth Population Population characteristics throughout the Tahoe City Cemetery District service area are substantially affected by seasonal variations, distinct user groups and the abundance of second homes. Under the Board of Trustee policies, all residents, and those non-residents with long-term ties to the community, are eligible for burial and cremation services from the District. This would include the large contingent of second-home owners throughout the District. Based on 2010 Census data, as well as population estimates for the Water and Wastewater Districts included in this MSR, it is estimated that the current permanent population within TCCD is 19,500. The estimated peak visitor population is approximately double, or 39,000. Projected Growth and Development Population projections for the TCCD service area are expected to range between 1.0 percent in 2017 and up to 1.5 percent by 2032. (Refer to the Tahoe-Truckee Sanitation Agency chapter of this MSR.) Service demands on TCCD are not expected to increase significantly, based on the historic rate of four to five burials per year. (Refer to the Cemetery Services Section, below, for details.) Disadvantaged Unincorporated Communities By state definition, a disadvantaged unincorporated community (DUC) has a median household income (MHI) less than 80 percent of the statewide average. According to 2010 Census data, California’s MHI is $60,883, which qualifies any community with a MHI less than $48,706 as a DUC. Within the District’s boundary the communities of Kings Beach, Carnelian Bay, and some neighborhoods within Tahoe City meet the state’s standard for DUCs at 80 percent of the state median family income. As described in this MSR, these communities do receive water, wastewater, and fire protection services. No public health and safety issues have Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-7 North Tahoe and Martis Valley MSR been identified. For additional information, please refer to Chapter 3, Section 3.6, Disadvantaged Unincorporated Communities, in this MSR. 13.7: Financing This section evaluates the factors affecting the financing of services, operations and capital improvements for TCCD. Information on District financing is derived from audited financial statements for Fiscal Years 2011-2012 and 2012-2013, as well as District budget information for Fiscal Year 2013-2014. These statements represent the financial statements of the District and follow Government Accounting Standards Board (GASB) method of Accrual accounting. On January 9, 2018 the Placer County Board of Supervisors allowed the Cemetery District to conduct audits every five years in accordance with California Government Code Section 26909 which specifies that a special district may by unanimous request of the governing board of the special district, with unanimous approval of the board of supervisors, replace the annual audit with an audit conducted at specific intervals, as recommended by the County Auditor. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2014. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets which are available upon request to the District. The District operates two funds: the General Fund; and the Endowment Fund. The General Fund is unrestricted and can be used for any purpose. The Endowment Fund consists of funds collected on grave sales, and is permanently restricted for use in maintaining the cemetery in perpetuity following closure. District Revenues and Expenditures for Fiscal Year (FY) 2011- 2012, FY 2012-2013, and FY 2013-2014 are summarized in Table 13.2, below. These District audits were prepared by Stroub & Company. Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-8 North Tahoe and Martis Valley MSR Table 13.2 Summary of Revenues and Expenditures for Fiscal Years 2011-2012, 2012-2013 and 2013-2014 Fiscal Year 2011-2012 2012-2013 2013-2014 Revenues Property Taxes $42,621 82.0% $44,519 85.2% $48,018 90.8% Interest Income 3,955 7.6% 3,438 6.6% 3,254 6.2% Other Government 1.6% 1.7% 896 1.7% 795 897 Funds Charges for Current 8.8% 6.5% 675 1.3% 4,575 3,375 Services Total Revenues $51,946 100% $52,229 100% $52,843 100% Expenditures Salaries, Wages and Benefits Wages Services and Supplies $49,499 100.0% $50,321 100.0% $49,407 100.0% Other Expenditures Total Expenditures $49,499 100% $50,321 100% $49,407 100% Net Income (or Loss) $2,447 $1,908 $3,436 Source: TCCD Independent Auditor’s Reports - FY 2012-2013; and District Budget Data Revenues District revenues are derived from property taxes, charges for services (burials), and interest earned on savings. The District generates enough revenue to pay expenses, and also relies on volunteer services to help maintain the cemetery. Expenditures The District does not pay for employee wages and fringe benefits, but contracts out for need services including office manager, burial and cremation services, landscape maintenance services, and audit services. Services and supplies consist of repairs, maintenance, utilities, professional fees, and insurance expenses. Currently, the District is accruing funds to remodel the existing chapel. Approximately $150,000 is budgeted for these improvements over the next four years. Rate Restructuring The Board of Trustees approved a rate schedule for services in March 1992. The fees established at that time have not been changed. Grave sites cost $200 each ($500 for Non- Resident) and cremain sites are $100 each ($400 for Non-Resident). Endowment fees are $100 per adult, $60 for child/baby, and $60 each for cremains. In addition, the District charges a Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-9 North Tahoe and Martis Valley MSR coping (the stone or masonry border around the grave site) deposit of $2,000 for a single grave site and $3,000 for a double grave site. Staking fees ($275) and an administrative fee ($50 to $150) is also charged. Assets and Liabilities As of June 30, 2013, District’s cash and investment balance was $277,262, of which $10,390 is reserved in the Endowment Fund. Accumulated depreciation totals $141,172. TCCD has no outstanding debt or other liabilities. The only long-term obligation consists of refunding coping deposits in the amount of $23,545. Cost Avoidance MSRs describe measures that districts take to avoid unnecessary costs because it is important for the public sector to avoid waste and to be financially efficient. TCCD actively works to avoid costs through the following measures: • Contracts out for all services; thereby avoiding payment of wages and fringe benefits, and retirement contributions. • The Board of Trustees is actively engaged in the community and oversees operation of the Trails End Cemetery directly. • Keeps costs low and affordable for Residents and qualified Non-Residents who wish to utilize the District’s services. 13.8: Cemetery Services Service Overview Tahoe City Cemetery District provides burial plots and cremation niches for residents and qualified non-residents within the District boundary. These services are provided at the District’s Trails End Cemetery, located at 597 Fairway Drive in Tahoe City. Access is via North Lake Boulevard and Grove Street. Cemetery Chapel and Storage Building Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-10 North Tahoe and Martis Valley MSR Trails End Cemetery encompasses 2.9 acres adjacent to the south side of Fairway Drive. The cemetery consists of 13 sections with burial plots, a 600 square foot outdoor chapel, an adjacent 128 square foot storage shed, and expansion areas. (Refer to Figure 13.3: Trails End Cemetery Site Plan) The existing developed area (13 Sections) consists of 477 single and double grave sites, and an additional 500 cremation niches. Approximately 100 grave sites are available along with approximately 200 cremation niches. Single grave sites (burial plots) are 5-feet by 9-feet; double plots are 10-feet by 9-feet. The cremation niches are 30-inches by 30-inches. The district has planned for cemetery expansion as detailed in Figure 13.3. The northerly expansion area would be utilized for a circular access drive and 10 off-street parking spaces, including one handicapped space. The westerly and southerly expansion areas would provide an additional 308 5-foot by 11-foot burial plots and 366 niches. The actual implementation of the expansion plans are a number of years away, except the access drive and parking area may be proposed for construction first. Currently, the District conducts four to five burials per year. Capacity After expansion, the Trails End Cemetery will provide a final resting place for 785 individuals in caskets, and 866 cremation remains. The District expects cremations to exceed casket burials in the near future. Infrastructure Needs and Deficiencies Future improvements have been identified to address future service needs. However, it will be a number of years before additional burial sections need to be developed. Consideration is being given to make improvements to the chapel in the next three to four years. Challenges No challenges were identified by TCCD during the preparation of this MSR. Cemetery maintenance and vandalism are on-going issues that the Board of Trustees continues to address. The cemetery is located in a residential area, and it is helpful to have neighbors watching out for the cemetery. Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-11 North Tahoe and Martis Valley MSR Overview of Section 8 Showing Terraced Coping 13.9: Service Adequacy The District provides cost effective services, does not receive any complaints, and operates in an efficient manner. The District reports that no complaints have been filed over the past five years. Complaints may be submitted to the District Secretary for consideration by the Board of Trustees. The Board of Trustees adopts an annual budget and has District audits are performed every other year by Stroub and Company, CPAs. Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-12 North Tahoe and Martis Valley MSR Figure 13.3: Trails End Cemetery Site Plan Site plan courtesy of Auerbach Engineering Corp of Tahoe City Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-13 North Tahoe and Martis Valley MSR 13.10: Determinations Population and Growth 1. The Tahoe City Cemetery District serves a large population base, estimated to be 19,500 permanent residents and up to 39,000 part-time residents and visitors. 2. The current rate of burials is low (4-5 per year), and will not impact the ability of the District to accommodate burial requests. Disadvantaged Unincorporated Communities 3. Within the District’s boundary, the communities of Kings Beach, Carnelian Bay, and some neighborhoods within Tahoe City meet the states standard for DUCs at 80 percent of the state median family income. All DUC areas receive adequate water, wastewater, and fire protection services. TCCD does not provide any of the basic services (water, sewer and structural fire protection). No public health and safety issues have been identified. Present and Planned Capacity of Public Facilities 4. Trails End Cemetery has adequate burial plots and cremation niches available for the foreseeable future. However, the District has planned for cemetery expansion when it becomes warranted. Financial Ability of Agency/District to Provide Services 5. The District’s audits indicate it has sufficient revenue in place to ensure short- and long-term provision of services within its current service area. 6. The Board of Trustees has taken a prudent approach to providing services, and insures that the District operates within its means. Status and Opportunities for Shared Facilities 7. No opportunities for shared facilities were identified by the District or during the preparation of this MSR. Accountability for Community Service Needs, Including Governmental Structure and Operation Efficiencies. 8. An appointed five-member Board of Trustees oversees the management of the District. TCCD meets its statutory financial reporting requirements that ensure its operations are conducted in an open and transparent manner. The Agency provides public notice of meetings, and posts agendas at the Post Office as well as by email upon request. Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-14 North Tahoe and Martis Valley MSR 9. Establishment of a District website would significantly increase the transparency of the District and its operations; and would allow the public to access District documents, financial records, and even agendas and minutes in a timely manner. 10. The District contracts out for District services, which is a cost effective way for a small district to operate. 11. No formal sphere of influence (SOI) for TCCD has been adopted by Placer LAFCo. Placer LAFCO should consider formally adopting an SOI for the District, as well as clarifying the District’s service area; and whether any communities within the District boundary are not served. Such an action could signal possible future detachments of territory from the District. 13.11: References Tahoe City Cemetery District (TCCD). Audit Report for the Fiscal Year Ended June 30, 2013. Stroub & Company, CPAs. December 16, 2013. TCCD. Burial Plot Directory brochure. 2011. TCCD. District Budget Sheets for FY 2012-13, FY 2013-14 and FY 2014-15. Judy Friedman, District Secretary. TCCD. Fee Schedule. April 1, 1992. TCCD. Trails End Cemetery District Site Plan. Auerbach Engineering Corp. October 2013. U.S. Department of Commerce (USDC), United States Census Bureau. 2010 Demographic Profile. American Fact Finder Website. Draft Final MSR, August 2018 Chapter 13, Tahoe City Cemetery District 13-15 North Tahoe and Martis Valley MSR Chapter 14 Tahoe City Public Utility District The Tahoe City Public Utility District was originally formed in 1938. The District currently provides wastewater collection, water, parks and recreation services within its boundaries. Table of Contents 14.1: Agency Profile.................................................................................................. 14-2 14.2: Overview of Agency ........................................................................................... 14-2 14.3: Formation and Boundary ..................................................................................... 14-3 14.4: Accountability and Governance ............................................................................. 14-6 14.5: Management Efficiencies and Staffing ..................................................................... 14-7 14.6: Population and Growth ....................................................................................... 14-9 14.7: Financing ....................................................................................................... 14-17 14.8: Water Services ................................................................................................ 14-22 14.9: Wastewater Services ......................................................................................... 14-32 14.10: Park and Recreation Services .............................................................................. 14-34 14.11: Determinations ............................................................................................... 14-36 14.12: References .................................................................................................... 14-40 Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-1 North Tahoe and Martis Valley MSR 14.1: Agency Profile Tahoe City Public Utility District Type of District: Public Utility District Enabling Legislation: The Public Utility District Act: Public Utilities Code sections 15501- 18055 Services: Wastewater collection, water, parks and recreation (including trails) Main Office: 221 Fairway Drive, Tahoe City, CA Mailing Address: P.O. Box 5249, Tahoe City, CA 96145 Phone No.: 530-583-3796 Fax No.: 530-583-1475 Web Site: www.tcpud.org General Manager: Cindy Gustafson Email: cindyg@tcpud.org Phone: (530) 580-6326 District Clerk: Terri Viehmann Email:tviehmann@tcpud.org Phone: (530) 580-6052 Governing Body: Elected Board of Directors Director Term Expiration Judy Friedman 2020 John Pang, President 2018 Ron Treabess 2020 Dan Wilkins, Vice President 2018 Scott Zumwalt 2020 Meeting Schedule: 3rd Friday of each month at 8:30 a.m. Meeting Location: Board Room, 221 Fairway Drive, Tahoe City, CA Date of Formation: 1938 Principle County: Placer Other: Multi-county district serving both Placer and El Dorado Counties 14.2 Overview of Agency Summary Description of Existing Services The Tahoe City Public Utility District (TCPUD/District) provides water, wastewater collection, and parks and recreation services (including trails) to the greater Tahoe City area. Location and Size The boundaries of TCPUD lie within both Placer and El Dorado Counties; extending from Emerald Bay to Dollar Hill, and along the Truckee River to the Nevada County line. The District’s service area encompasses over 31 square miles. 64% of the area within the Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-2 North Tahoe and Martis Valley MSR District’s boundary is within Placer County and 36% is within El Dorado County. See Figure 14.1 for District boundary and SOI. The Tahoe City Public Utility District encompasses 19,840 acres within its boundaries. Its SOI contains 17,403 acres, excluding the boundary area. Together, the District’s boundary and SOI includes 37,243 acres. 14.3: Formation and Boundary The TCPUD was formed in 1938 under the Public Utilities Code Section 15501-18055 for the purpose of providing water service to the residents of Tahoe City. Services have since been expanded to also provide wastewater collection, parks and recreation to customers within its boundaries. The District serves customers in both Placer and El Dorado Counties. The District’s boundaries currently encompass approximately 31 sq. miles and the District provides service to 4,188 water and 7,636 sewer customers. Along the Hwy 89 corridor, the PUD’s boundaries do overlap with the Squaw Valley Public Service District, Talmont Resort Improvement District, and further south along Hwy 89 they also overlap with the McKinney Water District. Boundary History Since its formation in 1938, the District has undergone 12 boundary modifications. In 1973 the Alpine Springs area was detached to form the Alpine Springs County Water District (ASCWD) as a separate entity. All other boundary modifications have been annexations. The District’s current boundary as reflected in the Placer County GIS data is shown in Figure 14.1 (next page). Figure 14-2 shows two “SOI Review Areas” where the PUD’s boundaries extend past its sphere of influence area. One area is the corner of Dollar Point. The second area is located in the northeast corner, along Highway 89. It is recommended that the PUD and LAFCo work together to update the SOI so that it is congruent with the boundary in these two areas. A third “Review Area” is located to the south and El Dorado LAFCO has noted some discrepancies in the Placer County GIS mapping data. It is recommended that Placer LAFCO staff meet with El Dorado LAFCO staff to resolve these discrepancies. Sphere of Influence The Sphere of Influence (SOI) was last updated in 1994. It is recommended that the SOI be updated to correct the three “Review Areas” described above and shown in Figure 14-2 to address the concerns of TCPUD and El Dorado LAFCO. Extra-territorial Services The District does not provide direct service to paying customers located outside its boundaries. However, it is recognized that the District’s park and recreation facilities are open to regional residents and visitors who are living or staying outside its boundaries, and therefore not contributing to TCPUD’s revenues. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-3 Truckee Glenshire-Devonshire Donner Lake Lake Van Norden North Shore Blvd Ice Lakes UV 267 N orthForkAmerican DirtRd Kings Beach R iver UV Tahoe Vista 89 UV 28 MiddleForkAmericanRiver Dollar Point PLACER COUNTY Lake Tahoe Sunnyside-Tahoe City UV 89 Hell Hole Reservoir R ubicon Meeks Bay R iv e r UV ± 89 G e Loon Lake n e Tahoe City PUD Boundary r a l C Sphere of Influence re e k County Boundary 0 1 2 Miles ELDORADO COUNTY Communities District Boundary from Tahoe City PUD, SOI from Placer County LAFCo Figure 14-1 TAHOE CITY PUBLIC UTILITY DISTRICT Truckee Glenshire-Devonshire Donner Lake Lake Van Norden North Shore Blvd Ice Lakes UV 267 N orthForkAmerican DirtRd Kings Beach R iver UV Tahoe Vista 89 UV 28 MiddleForkAmericanRiver Dollar Point PLACER COUNTY Lake Tahoe Sunnyside-Tahoe City UV 89 Hell Hole Reservoir R ubicon Meeks Bay R iv e r UV ± 89 G e Loon Lake n e Tahoe City PUD Boundary r a l C Sphere of Influence re e k County Boundary 0 1 2 Miles ELDORADO COUNTY Communities District Boundary from Tahoe City PUD, SOI from Placer County LAFCo Figure 14-2 TAHOE CITY PUBLIC UTILITY DISTRICT North Tahoe and Martis Valley MSR Areas of Interest Along Highway 89, at the entrance to Squaw Valley, the TCPUD and the Squaw Valley Public Services District have overlapping boundaries. Here, the TCPUD serves 17 water customers, 29 sewer customers (with the potential of up to 177 customers) and it owns 7,283 linear feet of multi-use trail. These facilities/customers are located within both Districts’ boundaries. The water customers are provided water through a purchase agreement with Squaw Valley Public Service District. 14.4: Accountability and Governance The District operates under the leadership of an elected five-member Board of Directors, with a General Manager providing daily oversight and management of staff and resources. The District holds regularly scheduled meetings on the third Friday of each month, at 8:30 a.m. in the TCPUD Board Room located at 221 Fairway Drive, Tahoe City. District staff indicates that all meetings are held in compliance with the Brown Act and all laws governing public meetings. Meeting notices and agendas are posted at the front entry of the District Administrative building, at the U.S. Post Office in Tahoe City, at the Tahoe City Library, on the District website at www.tcpud.org and sent via email to all those requesting the information. In addition, the District maintains an email list of all interested parties and emails the agendas and the web links to the Board packet. Meetings can be viewed via live video-feed from the District website; archived videos of past meetings are also available through the website. Public comments are accepted at scheduled meetings, and also can be provided by letters and email to the District. For meetings not requiring Brown Act compliance, such as staff-hosted workshops, District staff utilizes a variety of techniques to encourage public involvement including local media, posted signs in town, and an extensive e- mail list. District staff also provide regular updates at other agency, local service club, and homeowner association meetings. Individuals who are interested in a particular topic or item may provide the District with their contact information to allow the District to keep them informed of upcoming meetings on the subject matter. Operating procedures and practices, including budgets, personnel policies, fees and rates, capital improvements plans, and other documents are available for public review at the District’s offices and many are also available on the PUD’s website. District operating hours are 8:00 a.m. to 4:30 p.m., Monday through Friday. The District and its activities undergo public review procedures, including financial review by independent auditors. There are sufficient mechanisms in place to ensure that actions and operating procedures of the District are open and accessible to the public. The District maintains a website at http://www.tcpud.org where residents can obtain District news, meeting minutes, meeting agendas, water and sewer rates, and other helpful information. Directors are elected to four-year terms; the last election having occurred in 2014. Each Director is compensated per Government Code Section 16002(a) which allows a PUD Board of Directors to provide by resolution that its members receive compensation in an amount not to Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-6 North Tahoe and Martis Valley MSR exceed $400 per month ($4,800 per year) and medical, dental, and vision coverage paid by the District. The District had contested elections in 2010, 2012 and 2014, indicating a high level of public interest and participation. The current Board of Directors is as follows: Table 14.1: Tahoe City PUD Board of Directors, 2018 Director Term Expiration Judy Friedman 2020 John Pang, President 2018 Ron Treabess 2020 Dan Wilkins, Vice President 2018 Scott Zumwalt 2020 Customer complaints can be submitted to the District via the TCPUD’s website, by email, phone, in writing to TCPUD, PO Box 5249, Tahoe City, CA 96145 or in person. The District received six complaints in 2012 related water and sewer rates and location of the Farmer’s Market. In 2011, five complaints were received regarding maintenance of trails and water rates. The PUD conducted a customer survey in January 2015 to solicit feedback about its service, programs, facilities, and operations Survey results were published in a “District Report Card” published on its website at: http://www.tahoecitypud .com/download/general/repcar.pdf. In 2015 the Board and management staff worked together to develop a strategic plan to guide staff in planning, development, and workload. This strategic plan was adopted in 2016. The District aims to update its strategic plan every five years. 14.5: Management Efficiencies and Staffing The District’s five-member Board of Directors oversee the functions of the General Manager who is responsible for day-to-day activities and operations. The General Manager directs the planning, oversight, and investigation of all operations, projects, programs, and activities within the District. Additionally, the General Manager directs the preparation and presentation of the District’s annual budget, represents the District in labor contract negotiations, and represents the District with regards to rules, regulations, and services provided to the public and local, state, and federal agencies. District operations are organized into four departments: Utilities (which include water and wastewater), Parks and Recreation, Engineering, and Governance and Support Services. Staffing has increased slightly in recent years from 50.65 FTE in 2003 to 53.15 FTE in 2013 (TCPUD, 2013, p. 25). Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-7 North Tahoe and Martis Valley MSR Within the last few years, the District has capped employee benefits and increased employee contributions to benefits, which has increased management efficiencies for the District. Figure 14.3: Tahoe City PUD Organizational Chart The District has received a number of awards for excellence since 2009, including the following: • Electrical/Instrumentation Award, Kevin Ferrell – CWEA Sierra Section (2010) • Collection Systems Award, Tab Strada – CWEA Sierra Section (2011) • Best in the Basin Award – Tahoe Regional Planning Agency (2012) • Supervisor of the Year, Rich Lehman – CWEA Sierra Section (2012) • Plant Safety Award – CWEA Sierra Section (2012) • Collection System of the Year Award – CWEA Sierra Section (2012) • ACWA/JPIA HR LaBounty Safety Awards (2009, 2010, 2012, 2014) • Supervisor of the Year, Dan Lewis – CWEA Sierra Section (2014) Contract Services Due to the seasonality and nature of workload, the District indicated they use contractors to minimize the need for new full-time, year-round positions. The District uses a local technology consulting company to handle network administration and technology help-desk services. Local contractors are also used to assist with snow removal from District facilities, and to facilitate emergency response and repairs. The Recreation Department hires contract instructors to provide specialized recreational programs like cooking, music and exercise classes. The District utilizes the State CMAS Contract and the National Joint Powers Alliance (NJPA) for purchasing in an effort to reduce costs and limit the need for dedicated procurement staff. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-8 North Tahoe and Martis Valley MSR Technology/Management The District has been increasing its use of systems and technology throughout the organization. A complete, spatially referenced asset database has been developed using GIS (Geographic Information Systems) and GPS (Global Positioning Systems) technology. This GIS system has been deployed in the field to operations staff for both Utilities and Parks, and is used to access mapping as well as capture critical data in the field. The Utilities and Parks departments have implemented a Computerized Maintenance Management System (CMMS) to electronically manage and track work orders. The system allows staff to capture and generate reports to help inform both maintenance and operations decisions as well as capital replacement decisions. The system is integrated with the District’s GIS asset database. The Utilities Department uses SCADA (supervisory control and data acquisition) to efficiently and proactively manage its critical sewer and water infrastructure. The Utilities Department also utilizes technology and software programs to efficiently manage their sewer line CCTV inspection program, sewer line cleaning program and water valve exercise program. The District has implemented an enterprise software system to electronically manage documents and retention and uses an enterprise level accounting software system to manage and provide financial reporting. Overall, the District carefully selects and implements systems and technologies with the goal of creating efficiencies for staff or providing higher levels of service for its customers. 14.6: Population and Growth Population To determine the existing population, 2010 U.S. Census data was used as a preliminary indicator. This data, shown in Table 14.2 below estimates a population of approximately 4,839 permanent residents within the Census Tract Block Groups that comprise the approximate shape file boundaries of the sphere of influence for the District. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-9 North Tahoe and Martis Valley MSR Table 14.2 Census Data on Population & Housing Census Block Census Estimated Census Estimated # Calculated # of Tract Group Population of Housing Units permanently owner occupied units* 201.04 2 565 580 191 201.04 1 343 536 177 221 1 702 1,000 330 2 259 408 135 3 389 Data not available Data not available 222 1 728 786 259 2 181 553 182 223 1 228 452 149 2 481 1,090 360 320 1 783 1,206 400 3 180 1,068 352 Total 4,839 7,679 2,535 Source: GIS Shape files and http://www.census.gov/2010census/popmap/ *Note: 33% of total housing units are assumed to be permanently occupied by owners per the Travel Assessment. However, the District believes that only 25 % are owner occupied. Estimates of population in resort areas are difficult to predict, as populations are transient and have significant variation throughout the year. There are no current studies that accurately project the number of seasonal visitors during peak times. Service providers typically provide services based on land use type and variety of complicated flow or fixture unit values. Like all districts in the Tahoe Basin, there is a large influx of seasonal residents and visitors that add to TCPUD’s daily peak service demands. The nonresident population is comprised of a variety of users from absentee owners, vacation rentals, camping and day visitors. The Placer County Office of Economic Development, Placer County Tourism, Placer County Visitors Bureau and North Lake Tahoe Resort Association commissioned a study in 2009 to document the tourism impact in the county as a whole. Information was also collected for the high country and particularly the Tahoe Basin. While this study does not specifically project the seasonal population peaks associated with tourism and recreational uses, it does demonstrate the emphasis on seasonal uses that accommodate the visitors to the area (Placer County OED, 2009). All of this translates into service demands for the TCPUD. The following excerpts are taken from the Travel Industry Assessment: Second Homeowner Trends The Travel Industry Assessment reports that within the High Country Region, a large percentage of the housing units serve as private vacation homes and/or vacation rental properties, most notably for the communities of North Lake Tahoe. ……… nearly two-thirds (67 percent) of all single-family homes, condominiums, and time- shares are not owner-occupied. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-10 North Tahoe and Martis Valley MSR According to the District, approximately 25 percent of the homes are full-time residences. However, for purposes of this MSR analysis, it was assumed that 33 percent of housing units are permanently occupied, consistent with the Travel Industry Assessment. The number of housing units in a region can also be used to calculate population. Past studies have produced a variety of estimates for the number of housing units within TCPUD’s boundary. The Travel Industry Assessment counted the number of single-family residential, condominium, and time-share housing units in the PUD’s three zip codes and determined the number to be 12,783. This number seems to be an overestimate, likely because zip code 96145 extends outside the PUD’s boundary area. The District’s 2010 Urban Water Management Plan estimated the total residential units in the service area at 3,772 units based on census data from the year 2000 (TCPUD, 2011). This is significantly lower than the 7,679 housing units estimated by the 2010 U.S. Census (see Table 14.2). The Travel Industry Assessment also describes commercial properties as follows: Commercial Lodging Properties Within Placer County, there are a wide variety of lodging accommodation rooms distributed among hotels, motels, bed & breakfasts, rented condominium “villages”, and single-family vacation homes throughout Placer County….. In addition to those lodging accommodations, property management companies operate vacation rental activity for many single-family vacation homes throughout North Lake Tahoe. There are several inns and hotels that operate within the PUD’s boundaries including the Granlibakken Resort (165 units); Pepper Tree Inn (51 units); America’s Best Value (46 units); Aviva Inn (24 units); Tahoe City Inn (32 units); and the Henrikson building (tbd ~ 120 units). In addition to lodging properties and second home rentals there are a variety of other smaller units and camping accommodations to meet the visitor overnight needs. These commercial businesses and other visitor serving facilities create a demand for the public services that TCPUD provides. Since the data from the U.S. Census is not consistent with data from other past studies regarding the number of housing units and the population, this MSR analysis will rely upon service connection data. The water and wastewater connections included in Table 14.3 reflect the demand presented by permanent residents, seasonal uses and/or demands as well as visitor uses. Table 14.3: Service Connections Service #Customers in 2003 #Customers in 2008 #Customers in 2013- 2014 Water2 3,825 3,910 4,188 Wastewater2 7,210 7,443 7,5403 Parks 5,300 800,000* 1,000,0004 2 Measured by number of connections Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-11 North Tahoe and Martis Valley MSR 3 Source: Tahoe-Truckee Sanitation Agency personal communication 4 District estimate of total annual users of Parks and Recreation Facilities (including visitors) As shown in the above table, TCPUD services significantly more wastewater connections, as compared to water service connections. This is because 12 other private water companies provide water service to customers within TCPUD’s boundaries. Therefore, the number of wastewater connections is a better indicator of population served. For purposes of this MSR analysis, it is assumed that the wastewater connections are distributed among residential, commercial, visitor serving motels, and government/institutional uses as shown in Table 14.4 below. Table 14.4: Estimated Distribution of 7540 Wastewater Connections Estimated Percentage Estimated # of wastewater connections Residential 92.65% 6,986 Commercial 5.86% 442 Visitor Serving Motels etc. 1.00% 75 Government/Institutional 0.50% 37 It is noted that one wastewater connection to a visitor serving motel or inn can serve many visitor rooms. The ratio of housing units to non-farm business establishments in Placer County is approximately 1:15.81 and this value was used to estimate the percentages in Table 14.4, above. It is also noted that one wastewater connection to a residential property can serve many units. For example, a duplex or apartment building may only have one formal wastewater connection, but serve several separate residential units. For purposes of this MSR analysis, it is assumed that of the total 6,986 residential connections, 85% of these serve single family homes. For the remaining 1,048 connections to multi-family structures, it is assumed that each multi-family structure has an average of four residential units. This yields 4,192 housing units located in multi-family structures. Therefore, the total number of housing units within the PUD’s boundaries is estimated to be 10,130. This is somewhat higher than the 2010 U.S. Census estimate of 7,679 residential units and significantly lower than the 12,783 units estimated by the Travel Industry Assessment. Based on the number of housing units estimated in the preceding paragraph, the existing population of TCPUD is calculated to be 8,524 permanent residents and 17,307 overnight visitors2 (at maximum occupancy). The permanent resident population represents a small part (33 percent) of the total population (visitors and vacationers) that the District serves. 1 Data source: http://quickfacts.census.gov/qfd/states/06/06061.html 2 17,307 visiting population calculated from 6,986 housing units * 2.55 persons per household = total population of 25,831persons. Assuming 33% of population is permanent then 25831-8524 =17,307. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-12 North Tahoe and Martis Valley MSR Table 14.5: Existing Population of TCPUD # Wastewater # Housing Units Estimated Permanent Estimated Visitor Connections Population Population 7,540 10,130 8,524 17,307 Projected Growth and Development Historical Growth Rate It is Placer County General Plan policy to steer urban growth to the cities. The 2013 Placer County Housing Element confirms that policy. While the county has grown at a rapid pace, much of this growth has occurred within the cities. Incorporated areas of the county grew at an Average Annual Growth Rate (AAGR) of 5.2 percent. Unincorporated Placer County’s population grew at an AAGR of 1.8 percent between 1990 and 2000. From 2000 to 2010, Placer County as a whole had a 3.4 percent AAGR for population, a rate nearly three times California’s population AAGR of 1.0 percent during this period. Most of this growth occurred in the incorporated areas of the county where the AAGR was 5.2 percent between 2000 and 2010. Population growth rates within the district were estimated using historical growth rates provided by the 2010 Census and District staff. Land-Use and Planning Documents Primary land uses in the District include residential, commercial and recreational/tourism. The District doesn’t anticipate any changes to these basic land uses. The Lake Tahoe area is under the jurisdiction of several agencies, including the Tahoe Regional Planning Agency (TRPA), Placer County, as well as various State agencies, due to the fact that the lake straddles California and Nevada. TRPA was jointly created in 1969 as a bi-state compact by the states of California and Nevada to meet Lake Tahoe basin-wide planning needs, including the development of general plans and other planning documents. TRPA is the agency responsible for regional planning, development and redevelopment oversight, regulatory enforcement, and implementation of environmental protection and restoration of Lake Tahoe and the surrounding region. Areas over which the TRPA has authority include new construction, erosion control, storm water runoff, shore-zone development and protection, road construction, land use, and tree conservation and harvesting. Through its 1987 General Plan, TRPA provides environmental quality standards and ordinances designed to achieve these thresholds. The Code of Ordinances within the 1987 General Plan regulates land use, density, land coverage, excavation, and scenic impacts with the intention of bringing the region into conformance with specified environmental thresholds. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-13 North Tahoe and Martis Valley MSR In December 2012, the TRPA Governing Board adopted the Lake Tahoe Regional Plan Update. The Regional Plan Update leaves many of the policies of the 1987 Regional Plan in place while providing more autonomy to local governments through adoption of Area Plans. The 2012 Regional Plan identifies goals and policies to guide decision making as it affects the Tahoe Region’s resources and environmental thresholds. Goals and policies are addressed in six major elements including land use, transportation, conservation, recreation, public services and facilities, and implementation. The Regional Plan Update initiated a Region-wide transition to a planning and permitting system where all requirements—TRPA, local, state, and federal—are addressed in coordinated Area Plans. The Existing Conditions Report indicated that the TRPA Regional Plan Update prioritizes redevelopment and infill of existing town centers at higher intensities than exist in other areas of the Region. During the next 20 years, much of the projected residential and non- residential development is expected to occur in mixed-use developments within these centers. Chapter 31 of the TRPA Code of Ordinances establishes the maximum multi-family residential density at 15 units per acre. Additionally, compliant affordable housing projects are provided a 25 percent density bonus. Based on the existing capacity of vacant parcels located throughout the Plan Area, and TRPA policies focused on high-intensity mixed use development within centers (primarily Tahoe City and Kings Beach), there appears to be sufficient land to accommodate the projected 580 new housing units and 900,000 square feet of commercial space within the Plan Area. The Tahoe City PUD area falls into two of the proposed North Tahoe sub-planning areas; the Greater Tahoe City Area and the West Shore Area sub-planning areas. The overall concept to be employed by the area plan is to concentrate growth in the town center (Tahoe City and Kings Beach) within these two sub-area plans while stabilizing land uses outside of the two town centers. The Placer County General Plan serves as the County’s vision for long-term land use development and conservation. Placer County’s General Plan adopted on August 16, 1994, and updated May 21, 2013, provides a series of goals, policies, standards and implementation programs to guide the land use, development, and environmental quality of the County. The County’s General Plan is generally consistent with TRPA planning documents. While the General Plan was updated, the area plans in the Tahoe Basin were not. Placer County has embarked (2011) on a more compressive planning update for the Tahoe basin area plans. In an effort to develop more cohesive, user-friendly Planning documents for the Tahoe Community/General Plan Update, the nine Tahoe basin plans will be consolidated into a single over-arching Community Plan policy document with four sub-planning areas each with their own zoning ordinances and design standards specific to each Plan Area. The Public Review Draft Tahoe Basin Area Plan and an updated Notice of Preparation became available for a 60 day public comment period via Placer County in June 2015. A revised Draft Tahoe Basin Area Plan was published in April 2016. A Draft EIR/EIS per CEQA is expected to be published in the Summer 2016. Thereafter, the next steps include refining the Plan, publishing a final EIR/EIS, review and adoption of the Plan and EIR/EIS by the Placer County Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-14 North Tahoe and Martis Valley MSR Board of Supervisors, and a TRPA Submittal and Conformance Review3. Placer County adopted the Tahoe City Community Plan in February 1994. This plan will be replaced and updated by the proposed Tahoe Basin Community Plan. The primary land uses within the district boundaries are residential, commercial, and recreation. Future Development Potential The 1994 Tahoe City Community Plan projects that there are a total of 352 undeveloped properties within the planning area, of which 263 are buildable based on TRPA regulations. It is projected that buildout of the 263 lots will occur on a gradual basis within the 10-year life of the Plan and perhaps beyond that. Within the District, the most significant proposed development project would be located at Homewood Ski Resort. The Homewood Mountain Resort Master Plan was approved by the Placer County Board of Supervisors in 2011. The project approval was subject to litigation which was settled out of court in January 20144. Under the Master Plan the resort will redevelop mixed- uses at the North Base area, residential uses at the South Base area and a lodge at the Mid- Mountain Base area. The 17-acre North Base area will include six new mixed-use buildings and eight new townhouse buildings to provide 36 residential condominiums, 16 townhouses, 20 fractional ownership units, 75 traditional hotel rooms, 40 two-bedroom for sale condominium/hotel units, 30 penthouse condominium units, 25,000 square feet of commercial floor area (CFA), 13 affordable housing units and a 30,000 square foot skier services lodge. The 6-acre South Base area will be converted to 95 ski-in/ski-out residences in a series of clustered chalets and one centralized condominium lodge. Please note that the total number of residential units was reduced by 13, consistent with the 2014 legal settlement. The Mid-Mountain Base area will include a new 15,000 square foot day-use lodge with a detached gondola terminal linked to the lodge by a covered passage, a new learn-to-ski lift, an outdoor swimming facility for use during the summer months by West Shore residents, a new snow-based vehicle (e.g., grooming equipment) maintenance facility, and two water storage tanks. As noted above, all future development must be in conformance with the TRPA, 2012, Lake Tahoe Regional Plan Update. Based on the above information, it is assumed that the maximum compound annual growth rate for the District’s area is approximately 1.0 percent. The 20-year compound annual 3 For more details see County website at: http://www.placer.ca.gov/departments/ communitydevelopment/planning/tahoebasinareaplan 4 Legal settlement was described in the Tahoe Daily Tribune newspaper at: http://www.tahoedailytribune.com/news/9992880-113/homewood-resort-ski-tahoe Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-15 North Tahoe and Martis Valley MSR growth rate of 1.0 percent is used to project the District’s population base for the next 20 years, over 5-year increments, as shown in the following table. Table 14.6: Permanent Population –Projected to 2035 within TCPUD’s LAFCO Boundary Year 2015 2020 2025 2030 2035 Estimated 8,524 8,959 9,416 9,896 10,400 Population 1 compound year annual growth rate based on 20 year Census trend It should be noted that the estimated peak Overnight Visitor Population in the year 2015 is 17,307 persons. If visitation also increases at a one-percent rate, the Overnight Visitor Population in the year 2035 could reach 21,118 by the year 2035. Day-use only visitors are not included in this estimate. The estimated maximum growth rate in the District’s sphere of influence is a rate of 1.0 percent. Disadvantaged Unincorporated Communities By state definition, a disadvantaged unincorporated community (DUC) has a median household income (MHI) less than 80 percent of the statewide average. According to 2010 Census data, California’s MHI is $60,883, which qualifies any community with a MHI less than $48,706 as a DUC. TCPUD serves portions of both Placer County and El Dorado County. Although the District is above the state median annual household income overall, there are specific neighborhoods within the District that qualify as disadvantaged communities. Within its Placer County service area, data5 indicates that the community of Lake Forest, near Dollar Point, has a MHI of $44,950, which is below the DUC threshold. Additionally, a 2010 TRPA report indicates that Lake Forest has blighted aesthetic and social conditions (TRPA, 2010). The District recently acquired the privately-owned Lake Forest Water system following a request of the System’s customers and after protracted litigation. Within its El Dorado County service area (i.e. the southern portion of Tahoma and the Meek’s Bay area), DWR does classify this area as a “Disadvantaged Community Tract” meaning it meets the DUC criteria (CDWR, 2014). As described in this MSR, the communities do receive water, wastewater, and fire protection services. No public health and safety issues have been identified. For additional information, please refer to Chapter 3, Section 3.6, Disadvantaged Unincorporated Communities, in this MSR. (DUCs). Tahoma and Lake Forest Communities both meet the criteria of 80 percent of the state median income, which defines a DUC. 5 Data from: http://www.parkinfo.org/factfinder2011/grantee Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-16 North Tahoe and Martis Valley MSR 14.7: Financing This section evaluates the factors affecting the financing of operations and improvements for Tahoe City PUD. Information on District financing is derived from audited financial statements for the Fiscal Year 2013, as well as information provided by District staff. The District follows a calendar year (January 1 – December 31) budget cycle and each year the Board of Directors adopts an operating and capital budget (Mann, Urratia, Nelson, CPAs & Associates, LLP, April 18, 2014, p. 3). These statements represent the financial statements of the District’s consolidated services, and follow Government Accounting Standards Board (GASB) method of Accrual accounting. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2014. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: http://www.tahoecitypud.com/ . District Revenues and Expenditures The TCPUD uses property tax, user fees, grants and interest income to provide its services (Mann, Urratia, Nelson, CPAs & Associates, LLP, April 18, 2014, p. 2). The District maintains two individual governmental funds. Governmental activities consist of parks and recreation operations, which are paid for by property taxes, user fees, and capital and operating grants and donations. The following table is the statement of revenues and expenditures. Table 14.8: Tahoe City PUD Statement of Revenues and Expenditures (Governmental Funds), Fiscal Year 2013 Total Governmental Source General Debt Service Funds Revenues Fees $ 505,974 $ 14,266 $ 520,240 Property Taxes 4,631,006 938,345 5,569,351 Interest (2,487) -- (2,487) Grants 551,250 -- 551,250 Other 170,212 289 170,501 Total Revenues $5,855,955 $952,900 $6,808,855 Expenditures Current Public Works – Parks 2,017,398 -- 2,017,398 Recreation 624,534 -- 624,534 Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-17 North Tahoe and Martis Valley MSR Other Operating 201,516 -- 201,516 Capital Outlay 545,633 -- 545,633 Debt Service: Principal -- 796,035 796,035 Interest -- 156,576 156,576 Total Expenditures $3,389,081 $952,611 $4,341,692 Revenues over $2,466,874 $ 289 $2,467,163 Expenditures Source: Independent Auditor’s Report, FY 2013 (Mann, Urratia, Nelson, CPAs & Associates, LLP, April 18, 2014, p. 26) Per the 2013 audit and as shown in Table 14.8 above, property tax represents the majority of revenue for the District and it comprises over 79 percent of the total revenue. In 2013 property tax revenue was projected to increase by 0.2 percent due to slight increases in assessed valuations in the unincorporated areas of Placer County. Of the 2013 property tax revenue, Parks and Recreation receives 30 percent with the remaining going to fund capital and reserves and general debt service. Per the 2013 audit and as shown in Table 14.8 above, water and sewer rate revenues represent a small (eight percent) part of TCPUD’s total revenue. TCPUD aims to set rates to cover operations and current and future water and sewer capital projects. The District’s water and sewer rates are reviewed annually and are made available on its website. In 2015 the water rates6 were comprised of both a base rate and a variable rate based on water usage. The base residential rate ranged from $59 per month for a 0.75” water meter size up to $549.26 per month for a 6.00” water meter size. The water usage rate for residential customers varies from $1.91 to $8.25 per 1,000 gallons per month based on a four tiered increasing block rate structure depending on the amount of water utilized. A residential customer with a 0.75” water meter size who uses 10,000 gallons per month would pay a water bill of $79.50 per month (i.e. $59 base rate plus $20.50 usage rate). Commercial water base rates vary between $71 for a 0.75” water size to $879.75 for an 8.00” water meter size. The commercial usage rate ranges from $5.63 to $5.73 per 1,000 gallons per month depending on usage based on a two tiered increasing block. Additionally, private fire sprinklers or fire hydrants on private property are subject to a $29.70 per inch fee. Rates7 for sewer are billed either monthly or quarterly; approximately 53% of customers are billed monthly with the remainder (sewer only) on a quarterly basis. Sewer fees include monthly service rates and connection fees. The sewer connection fee is only charged when a new connection is established. The monthly rates vary depending on the type of customer. 6 Current water rates are available at: http://www.tahoecitypud.com/download/general/2015waterrates.pdf. 7 Sewer rates for 2015 are available on the District’s website at: http://www.tahoecitypud.com/download/general/2015sewerrates.pdf Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-18 North Tahoe and Martis Valley MSR Residential dwelling units pay $38.41 per month. Commercial facilities such as a gas station pay $57.73 per month. The District also has a method to calculate commercial fees based on the square footage of the commercial facility. Commercial buildings of less than 1,000 sq. ft. pay $38.41 per month (the same as a residential unit). The water and sewer rates set by the District take into consideration numerous cost factors different than much of Placer County including: the costs of operating in a highly regulated, sensitive environment; heavy winter climate; mountainous terrain; an extremely fragmented water system; building restrictions significantly reducing any new development revenue; and high costs of living which lead to high labor costs. On July 18, 2014 the TCPUD Board conducted a public meeting on the results of water and sewer rate study that was prepared consistent with Proposition 218 (TCPUD-b, August 2014). This rate study considered capital replacement projects and projections on operations to recommend a 5-year rate plan for water and sewer. Proposition 218 requires that a District’s revenues do not exceed the cost of service and that rates are proportionally fair between customer types. The Board ultimately adopted a rate plan which concurs with the sewer rates adopted in 2009 but which extends the timeframe for an additional five years to reach. Sewer rates would increase by a maximum of 5.7% annually over the next five years. Water base rates will increase on an average by 6% annually from 2015 through 2019. These rates are the maximum to be implemented over the next five years. The District operates one proprietary fund with enterprise funds to account for its water, sewer, and engineering departments (Mann, Urratia, Nelson, CPAs & Associates, LLP, April 18, 2014, p. 7). Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-19 North Tahoe and Martis Valley MSR Table 14.9: Proprietary Fund Summary, 2013 Operating Revenues Water and Sewer Fund Service and inspection fees $8,116,007 Connection fees 152,025 Penalties and discounts 63,375 Other 92,128 Total operating revenues $8,425,535 Operating Expenses Personnel 3,009,253 Operations 2,236,638 Depreciation 1,444,240 Total operating expenses $6,690,131 Operating Income $1,735,404 Non-operating Revenues (Expenses) Property taxes 23,287 Interest income 104,964 Proceeds from sales of capital 23,413 assets Interest expense (6,120) Total non-operating revenues $145,544 Income1 $1,880,948 1 Income before capital contributions and transfers. Source: Independent Auditor’s Report, 2013 (Mann, Urratia, Nelson, CPAs & Associates, LLP, April 18, 2014, p. 29) District Assets and Liabilities The TCPUD invested approximately $3.4 million in parks, water and sewer infrastructure capital projects, with an emphasis on completing the Lake Forest Water project, water supply and projects to improve firefighting support, design and permitting for Homewood Bike Trail, and HVAC improvements at the Administration building. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-20 North Tahoe and Martis Valley MSR The following summary provides an overview of the District’s assets and liabilities: Table 14.10: Summary of Net Position, 2013 Assets and Liabilities Amount Assets Current Assets Cash/Cash Equivalent $8,047,067 Receivables 2,564,237 Prepaid items/Other 300,739 Subtotal 10,912,043 Noncurrent Assets Restricted Cash/Cash Equivalent 65,000 Facility improvement receivables 16,822 Other Postemployment benefits, 315,073 net Net pension asset 1,731,683 Capital assets Non-depreciable assets 1,265,157 Depreciable assets 30,338,777 Subtotal 31,603,904 Total Assets $44,839,324 Liabilities Current Liabilities $756,898 Noncurrent Liabilities 254,849 Total Liabilities $1,001,747 Net Position Investment in Capital Assets, Net of 31,310,220 Related Debt Restricted 65,000 Unrestricted 12,452,357 Total Net Position $43,827,577 Source: Independent Auditor’s Report, 2013 (Mann, Urratia, Nelson, CPAs & Associates, LLP, April 18, 2014, p. 28). Long Term Liabilities and Debt At the end of the 2013 fiscal year, the TCPUD had total bonded debt outstanding of $4,772,504. Of this amount, $2,761,765 is debt backed by the government, $368,764 is special assessment debt, and $1,641,975 is pension-related debt (Mann, Urratia, Nelson, CPAs & Associates, LLP, April 18, 2014, p. 17). The TCPUD has negotiated for employees to contribute a larger share of required pension contributions and addressed CalPERS investment committee regarding their portfolio allocation. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-21 North Tahoe and Martis Valley MSR Asset Maintenance and Replacement Each year the TCPUD updates a five year Capital Improvement Plan (CIP), which provides a schedule of planned improvements within the timeframe and identifies TCPUD and grant funding sources that will help pay for those improvements (TCPUD, 2013). The CIP includes a number of ongoing programs and one-time projects to perform regular maintenance on infrastructure and to replace those assets that have reached the end of their useful life. The District has assigned the useful lives listed below to major capital assets (Mann, Urratia, Nelson, CPAs & Associates, LLP, April 18, 2014, p. 36):  Water and sewer plant 10-40 years  Recreational facilities 10-20 years  Building 40 years  Equipment 3-20 years  Vehicles 4-13 years Cost Avoidance The TCPUD jointly owns and operates the Joint Sewerage Facilities (JSF) with the North Tahoe Public Utility District (NTPUD). The JSF consists of the Dollar Point interceptor and the Odor Control Station at Burton Creek Drive and State Route 28. This facility is used to convey all of NTPUD wastewater flows and the majority of TCPUD’s North Shore wastewater flows from Dollar Point to the Truckee River Interceptor pipeline, which is owned and operated by the Tahoe Truckee Sanitation Agency (TTSA). The District participates in the “Tahoe Truckee Area Emergency Contingency Plan Agreement for Mutual Aid”. The Agreement is a mutual aid agreement that sets forth a policy of mutual cooperation to provide sewer and/or water emergency aid. Thirteen agencies are signatories to the Agreement including TCPUD, SVPSD, TSD, TTSA, NCSD, NTPUD, and ASCWD, which are also covered in this MSR. 14.8: Water Services Water Service Overview The TCPUD provides water service to 4,188 customers (TCPUD, 2013, p. 3) via three major systems (Tahoe City Main, Rubicon, and McKinney) and two minor systems (Alpine Peaks and Truckee-Tahoe Forest Tract). Although groundwater is the primary water source for TCPUD, the District does maintain intakes to obtain water from the Lake for both treatment and emergency raw water supply. TCPUD’s water systems are regulated and permitted by the California State Water Resources Control Board – Division of Drinking Water (DDW) for water quality and delivery. Within Tahoe City PUD sewer service boundaries, an additional 12 other water companies provide water service to customers. These other companies are comprised primarily of private investor owned utilities, a few mutual water companies and two other public water providers (Talmont Resort Improvement District and McKinney Water District). The geographic Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-22 North Tahoe and Martis Valley MSR relationship between these other water companies and the TCPUD is shown in Figure 14.4 (next page). The District operates five separate and non-contiguous water systems as listed below: • Tahoe City Main System: Extends from Dollar Point to Tahoe Tavern. Includes the former Lake Forest Water Company acquired in 2012. • Quail Lake/McKinney System: Extends from Homewood south and east along the shoreline to McKinney Creek. Now includes the former Tahoma Meadows Mutual Water Company consolidated in 2013. • Alpine Peaks System: A small system approximately five miles west of Tahoe City, serving the area west of Tahoe Tavern. • Rubicon System: Serves the area between Meeks Bay and Bliss State Park, including the Meeks Bay Vista system and the former Tamarack Mutual Water System. • Truckee-Tahoe Forest Tract System: Serves a small area across from the entrance to Squaw Valley. This area is served purchased water from Squaw Valley Public Services District and is not described in further detail below. Water Supply/Demand Water Supply Tahoe City Main System The Tahoe City Main system supply is currently provided by groundwater, although there are three lake intakes (Dollar point, Grove Street, and Cedar Point) that are currently used for emergency use only. Active groundwater wells include Tahoe Tavern Well (500 gpm), Tahoe City Well No. 2 (1050 gpm), Tahoe City Well No. 3 (1500 gpm), Highlands Well No. 1 (60 gpm), and Highlands Well No. 2 (170 gpm). In addition to the lake intakes, the District has one standby well – Tahoe City Well No. 1 (up to 500 gpm). The District is currently redrilling Tahoe City Well No. 1 to remove it from standby status with an estimated capacity of 750- 1000 gpm. Overall, the supply available to the Tahoe City Main system is 3,280 gpm (CDPH, 2013). Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-23 CARNELIAN BAY D o SQUAW VALLEY Squaw Creek Tahoe Truckee Forest Tract System llarC reek BurtonCreek Fulton Water Co North Tahoe Public Utility District §¨¦ 89 Tahoe City (Subregional) System §¨¦ 28 ALPINE MEADOWS DOLLAR Lakeview Water Co Creek POINT Bear Lake Forest System T ru ckeeRiver TAHOE CITY Tahoe Park Water Co Washoe Heights Water Co Talmont Resort Improvement District Tahoe Park Water Co §¨¦ 89 SUNNYSIDE WardCreek ALPINE PEAKS Tahoe Park Water Co Alpine Peaks System LAKE Ward Well Water Co TAHOE Timberland Water Co Skyland/Nielsen Water Co Creek wood TAHOE Black PINES Tahoe Pines/Tahoe Swiss Village Water Co HOMEWOOD Creek Madden McKinney/Quail System Madden Creek Water Homewood Canyon TAHOMA PLACER COUNTY EL DORADO COUNTY McKinney Estates Water District §¨¦ 89 Tahoe Cedars Water Co Tahoma Meadows System k Cree Kinney Mc Glenridge Water Co MEEKS BAY Creek General Water Service Purveyors ek Tahoe City Public Utility District ks Cre Rubicon System e e M Other Water Purveyors Other Public Water Agencies RUBICON District Service Area BAY 1 inch = 1 miles Miles 0 0.5 1 2 Gulch µ TAHOE CITY PUBLIC UTILITY DISTRICT Lonely DISTRICT SERVICE AREA P.O. BOX 5249 TAHOE CITY, CA. 96145 (530) 583-3796 WATER PURVEYORS Map prepared by: KH Date: Sep. 11, 2013 North Tahoe and Martis Valley MSR Quail/McKinney System The Quail/McKinney supply system consists of both groundwater and surface water from Lake Tahoe. Groundwater consists of the Crystal Way Well, which was drilled in 1994 and has a pumping capacity of 500 gpm. The system also has two other inactive wells (McKinney Wells No. 1 and 2) that have high iron content and have been recommended for destruction. The District also has a 300 gpm intake and interim surface water treatment plant on Lake Tahoe at Chambers Landing, which is in use only during summer months. The District also has an emergency interconnection with the McKinney Water District which can provide water to either agency and is regulated by an agreement. The system has an overall capacity of 800 gpm (CDPH, 2012b). Although the Crystal Way Well has a pumping rate of 500 gpm, the aquifer that supplies the well has limited capacity and cannot supply year round system demand. Water supply must be supplemented from the interim surface water treatment plant during the summer to prevent the aquifer from being depleted. The TCPUD is currently in preliminary design and permitting phase of the construction of a new, permanent water treatment plant. The initial design incorporates sufficient capacity to serve the Quail/McKinney System’s projected build out as well as a number of private water systems nearby. Alpine Peaks System The Alpine Peaks water system is supplied by Riley Springs, which is comprised of two horizontal wells manifolded together. The first horizontal well was drilled in 1974 and the second well was drilled in 1980. Total horizontal depths of the wells are 320 and approximately 400 feet, respectively. The spring is located in steep terrain that is accessible form the local neighborhood. The spring outlets and associated valves are enclosed by concrete rings with commercial aluminum hatch covers. The combined capacity of the springs is approximately 175-200 gpm (CDPH, 2012a). Map courtesy of https://gis.water.ca.gov 1 Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-25 North Tahoe and Martis Valley MSR Table 14.11: Water production and storage facilities Estimated Reliable Pumping Capacity Capacity Production Facility (gpm) Storage Facility1 (million gallons) TCPUD Main Tahoe City Well 01 Up to 500 Bunker Tank 0.5 Tahoe City Well 02 1,050 Tahoe Tavern Tank 0.5 Tahoe City Well 03 1,500 Four Seasons Tank 0.5 Tahoe Tavern Well 500 Rocky Ridge Tank 0.5 Highlands Well No. 1 60 Lower Highlands 0.5 Tank Highlands Well No. 2 170 Upper Highlands 1.2 Tank Subtotal 3,280 3.7 Quail/McKinney Chrystal Way Well 500 Quail Tank 0.375 Lake Tahoe Intake 300 (summer only) Subtotal 1,100 0.375 Alpine Peaks Riley Spring 120-130 Steel Tank 0.5 Subtotal 130 0.5 Rubicon system Rubicon Well 01 260 Rubicon Tank 01 0.20 Rubicon Well 02 280 Rubicon Tank 02 0.28 Rubicon Well 03 500 Rubicon Tank 03 0.08 Subtotal 1,040 0.56 Total Capacity 5,550 5.135 Source: CDPH Annual Reports for the four systems. 2012, 2013. Rubicon System The Rubicon supply system consists of three groundwater wells: Rubicon Well 01-Silvertip was drilled in 1962 (260 gpm), Rubicon Well 02-Lakeview was drilled in 1985 (280 gpm), and Rubicon Well 03-Ridge was drilled in 1998 (500 gpm). The combined capacity of the wells is 1,040 gpm. In 2010, the annual production was 43.9 mg(CDPH, 2012c). Water Demand Within the TCPUD service area, water is primarily used for residential and commercial purposes; there are no significant industrial, manufacturing or agricultural land uses (TCPUD, TCPUD 2010 Urban Water Management Plan, Amended 2011, pp. 3-3). The District serves approximately 200 commercial customers and 7,500 homes (TCPUD, Personal communication with TCPUD staff, 2013), and in 2012 had 4,106 customers which are defined as utility connections. Commercial use accounts for about 15 percent of the total water demand and is not expected to change significantly because it is assumed that the District’s commercially Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-26 North Tahoe and Martis Valley MSR zoned area is at buildout. The exception to this is redevelopment such as the Homewood Ski Resort development, which includes 25,000 square feet of commercial space and a 30,000 square foot skier services lodge. Except for the parks, there is very little recreational water demand. The golf course located within the service area has a private water supply (TCPUD, TCPUD 2010 Urban Water Management Plan, Amended 2011, pp. 3-4). Water demand by district customers in 2014 was only 413.3 million gallons8, the second lowest amount of water on record, indicating good results from water conservation efforts. The TCPUD relies primarily on groundwater to meet normal demands, with the exception of summer time surface water diversions to augment supply in the McKinney/Quail system as discussed above. Due to restricted growth in the TCPUD’s current service area, future demands are expected to stay relatively flat (TCPUD, TCPUD 2010 Urban Water Management Plan, Amended 2011, pp. 3-5), with the exception of acquisition of other water systems. To promote water conservation and comply with State law, the District has installed water meters at all service connections and since 2008 has billed customers using consumption based rates. Additionally, in April 2015, the District released its Water Conservation and Drought Response Standards (Ordinance 284) (TCPUD, 2015). Tahoe City Main System The Tahoe City Main system serves 2,762 customers and has an estimated population of 4,000 permanent residents and up to 15,000 seasonal (CDPH, 2013). The 9-year average of the maximum day demands (MDD) (2003-2011) was 0.70 gpm per connection, with a high of 0.78 gpm per connection since meters were installed on all service connections in 2007 (CDPH, 2013). Quail/McKinney System The Quail/McKinney water system serves an estimated permanent population of approximately 750 and a seasonal population of 1,600. The 8-year average of the maximum day demands (MDD) (2003-2010) is 1.02 gpm per connection (CDPH, 2012b). Alpine Peaks Alpine Peaks is a community water system serving a residential community with 95 connections. The community has a year-round population of 12 and a maximum seasonal population of 250. The Alpine Peaks water system annual water usage was 6.6 mg in 2010, with a maximum month usage at 1.03 mg and peak usage in July. The maximum day demand (MDD) was shown as 0.06 mg. The California Waterworks Standards (CWS) requires a water system to meet MDD through its source capacity. The MDD of 0.06 mg corresponds to 42 gpm; therefore, the reported source capacity of 120 gpm meets the MDD requirement. Further, for water systems with less than 1,000 service connections, the CWS requires the storage capacity to equal the MDD to meet peak demands, of which the existing 0.5 mg storage meets the 0.06 mg MDD (CDPH, 2012a). 8 Data source: http://www.moonshineink.com/news/news-briefs-february-13-march-12-2015 Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-27 North Tahoe and Martis Valley MSR Rubicon System The Rubicon system is located entirely within El Dorado County and it serves a maximum population of up to 1,200 persons. The average maximum day demand (MDD) over the 6-year period 2003-2010 was 0.76 gpm per connection with a high of 0.93 gpm per connection (CDPH, 2012c). Table 14.12: TCPUD Projected Supply/Demand Summary (acre-feet/year) Acre-feet/Year 2012 2017 2022 2027 2032 Supply Available 2178 2178 2178 2178 2178 Demand 1486 1401 1436 1455 1473 Surplus/Deficit +692 +777 +741 +723 +705 Notes: Due to the installation of water meters, consumption based rates, and conservation programs, the water demand in the system has decreased dramatically since 2007. The 2012 demand was high due to a very dry year. Demands estimated for 2017–2032 are based on an average of the dry year of 2012 and the wet year of 2011 and increase proportional to those increases predicted in the 2010 Urban Water Management Plan (TCPUD, 2013, p. 12). Water Infrastructure and Facilities Treatment Systems Tahoe City Main System The District provides continuous disinfection of each groundwater well source. Surface water sources, which are for emergency purposes only, would also be provided with continuous disinfection if put into use in emergencies. The District injects 12.5 percent sodium hypochlorite solution into the discharge pipe at each well to disinfect the water for consumption. The water produced by the District’s wells meets all current primary and secondary drinking water standards (CDPH, 2013). Quail/McKinney The Quail/McKinney system has a temporary water treatment plan (WTP) that is direct filtration and has a 300 gpm design capacity. The plant is known as the McKinney Quail Interim Surface WTP and is only operated during summer months. The WTP consists of pre- treatment, filtration, screening, reclamation, and disinfection (CDPH, 2012b). Alpine Peaks System No treatment is provided at the Alpine Peaks water system. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-28 North Tahoe and Martis Valley MSR Rubicon System Since disinfection is precautionary only, chlorination of all wells is not required. However, Rubicon Well 01 has a substandard sanitary seal. Because of this substandard sanitary seal, continuous disinfection is performed. No other treatment facilities are within the system (CDPH, 2012c). Water Storage Community water systems serving more than 1,000 connections are required to provide sufficient source and storage capacity to meet peak hour demands for a minimum of four consecutive hours. The water system must be able to meet these requirements in each pressure zone as well as the system as a whole. Peak hour demands are estimated to be 150 percent of the average maximum day flow rates. These requirements do not include emergency and fire water storage requirements. Tahoe City Main System The estimated peak hour demand for the Tahoe City Main system as a whole is 3,300 gpm, which is approximately the same as the District’s source capacity of 3,280 gpm; therefore, the District’s total storage capacity of 3.7 mg is sufficient to meet the requirements of the system as a whole as well as in each pressure zone. See Table 14.12 for a summary of storage within the system. Quail/McKinney System Storage within the Quail/McKinney water system consists of Quail Tank, a welded steel tank with a capacity of 0.375 mg. Alpine Peaks System Water for the Alpine Peaks water system flows from the wells by gravity from 7,286 feet elevation to the distribution system and a 500,000-gallon welded-steel storage tank located at 7,268 feet elevation. The tank was constructed in 1970 and in 2008 a video inspection indicated no repairs were needed. No treatment is provided at this site (CDPH, 2011). Rubicon System The Rubicon system’s storage consists of three steel tanks with a total capacity of 560,000 gallons. Distribution and Transmission TCPUD Main The District’s Tahoe City Main system has six pressure zones, which range from 25 to 140 psi. The District maintains adequate pressure at all service connections in compliance with current Waterworks Standards. Distribution lines consist of approximately 39 miles of steel, plastic, asbestos cement (AC), polyvinylchloride (PVC), and ductile iron (DI) pipes ranging from 2 to 12 inches in size. The smaller diameter pipes are generally in poor to good condition, while the larger diameter pipes (8-12 inches) are in average to excellent condition. Further, the District is transitioning to high density polyethylene (HDPE) lines near sewer Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-29 North Tahoe and Martis Valley MSR mains. The system also includes two pressure sustaining valves (PSVs), a pump station, and backup generator. In 2012, the CDPH found the distribution system to be in good overall condition, with the exception of some older undersized mains, which are in poor condition (CDPH, 2013). Quail/McKinney The Quail/McKinney system has two pressure zones, which ranges from 35 to 120 psi. The distribution system consists of a treated water pump station, two PRV stations, and approximately 7.4 miles of steel, AC, PVC, HDPE, and DI pipelines. The steel lines tend to be in poor to average condition and are scheduled for replacement. The remaining lines are all in generally good condition. Alpine Peaks System The Alpine Peaks water system is comprised of AC pipe ranging from 4-12 inch diameter, which is being replaced with PVC during repairs and maintenance activities. A pressure reducing station controls pressures in the lower pressure zones. Most service lines are galvanized pipe, and polyethylene pipe is used when replacing those lines. There are no known low-head Photo Curtesy of Duncan Golf pipelines in the system, and no known lead pipes, joints or lead solder. Operating pressures in the upper pressure zone are approximately 30 to 100 psi; the lower pressure zone has 40 to 100 psi pressures. Service connection PRVs are required when service connection pressure is above 60 psi. There are 14 backflow prevention devices, all of which were tested in 2010. The backflow prevention program meets the intent of the cross-connection regulations (CDPH, 2012a). Rubicon System The system serves 614 connections within five pressure zones. The zones range from 30 to 180 psi and have a total storage capacity of 0.56 mg (CDPH, 2012c, p. 3). The Rubicon water system has approximately 15.3 miles of main lines consisting of galvanized steel, steel, asbestos-cement (AC), polyvinyl chlorine (PVC), or ductile iron. The distribution system includes two booster pump stations, one of which is portable, and two pressure reducing valves. The Rubicon system has no transmission infrastructure. Overall the system is reported to be in good condition by the CDPH, which noted that the District’s sources met all primary and secondary drinking water standards (CDPH, 2012c). Challenges in Provision of Water Services The District noted a number of challenges to its adequate provision of water services to customers, citing operation of five separate and non-contiguous water systems, serving half as many water customers as sewer customers due to the presence of other water purveyors as the most significant. The interspersing of twelve other water purveyors (i.e. private and/or mutual water companies) within the Districts service area result in a situation where Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-30 North Tahoe and Martis Valley MSR approximately 50% of the wastewater service connections of the District are served water by other water purveyors. The consequence is a disjointed, inefficient water delivery system of approximately 17 separate water systems within the District’s service area, with each system requiring separate water sources and separate water storage reservoirs. The redundancy and overlap of water infrastructure for 7,636 connections results in an uneconomical delivery of water to all residences and businesses in the area. Many of the small systems lack the customer-base to address significant infrastructure needs such as sufficient storage, redundant sources, and fire suppression ability. Although the District’s CIP is designed to address challenges for the District’s water services, it is not designed to address the needs of these other systems if they fail. Other challenges include aging infrastructure, drought, power outages, climate change, and new mandates and regulations. Most communities in California utilize new residential and commercial developments as opportunities to upgrade local infrastructure. However, in the north Lake Tahoe area there has been a lack of new development for a variety of reasons and this reduces the amount of private capital invested into the water system. Many of these challenges are similar to those faced by other service providers in the Basin. It is noted that 2014 is the third year of a significant drought and conditions have been deemed “extreme” by state water agencies. The Tahoe City Public Utility District’s Board of Directors declared Stage 2 drought restrictions for its water service areas in July 2014. Climate Change The US Bureau of Reclamation manages water supply in the Truckee River Basin and is undertaking a number of studies to evaluate the degree to which water supply and demand may be impacted by future changes in climate. This includes the Truckee River Basin Study, as well as funding researchers at the Desert Research Institute to develop an integrated groundwater, surface water, and climate change model of the Martis Valley Groundwater Basin. Scenarios specific to the District accounting for climatically shifting runoff availability have not been completed. However, the District stands poised with redundant water sources to account for anticipated growth and reductions in available supplies. The District participates in the Tahoe-Sierra Integrated Regional Water Management Partnership, which identifies regional climate change scenarios and impacts. Water Service Adequacy The District currently provides sufficient water service to its customers. Further, to better meet the long-term needs of the District, the West Lake Tahoe Regional Water Treatment Plant (WTP) project is currently under design, which consists of a 1.0 mgd, expandable to 1.5 mgd, surface water treatment plant. The WTP could provide treated water to the west shore of Lake Tahoe from the Meeks Bay area north to the Timberland area (TCPUD, 2013). The CDPH annual inspection reports for the 4 water systems generally indicate: • Source capacity is adequate to meet maximum day demands Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-31 North Tahoe and Martis Valley MSR • Storage capacity is adequate in accordance with Section 64554 of the California Waterworks Standards • Water deliveries meet all current primary drinking water standards • Water systems appear to be operated in professional and conscientious manner 14.9: Wastewater Services Wastewater Service Overview The TCPUD provides wastewater collection services to customers within its service area. Wastewater from Dollar Point to Tahoe City is conveyed through the Joint Sewerage Facilities, which conveys TCPUD wastewater, comingled with North Tahoe PUD wastewater, in the Dollar Point interceptor. Wastewater from the Tahoe City area, south to Emerald Bay is conveyed through the West Shore Export pipeline. Flows from the Dollar Point Interceptor and the West Shore Export combine in the Cal Trans Tahoe City yard, which marks the beginning of the Truckee River Interceptor. The Truckee River Interceptor pipeline, which is owned and operated by the Tahoe Truckee Sanitation Agency (TTSA), conveys all TCPUD and NTPUD wastewater from this point all the way to Truckee. All treatment and disposal is provided by TTSA. Wastewater Capacity The TCPUD provides wastewater collection services to approximately 7,540 customers within its boundaries, 232 of which are commercial and/or industrial. In recent years the average daily flow was 0.8 mgd. The Design Daily Flow, or allocated maximum flow, to the TTSA is 7.8 mgd. According to the 2014 TCPUD Risk-Based Sewer System Management Plan, there are no known hydraulic capacity limitations within the collection system during either dry or peak wet weather events. Average flows from TCPUD are approximately 0.8 mgd for the time period 2005-2013. The design daily flow, which is an allocated maximum flow to TTSA), is 7.8 mgd. Peak flows are generally experienced in late March through May due to snow melt and runoff, and in July and August due to high occupancy rates. Flows are lowest in October and November due to climate and low occupancy (TCPUD, 2014, pp. 8-9). Table 14.13 Tahoe City PUD Current and Future Wastewater Flows Average Day Demand Peak-Hour Flow Timeframe MGD MGD Current 0.8 1.6 Projected Increases 0.05–0.10 N/A Source: TCPUD response to LAFCO Request for Information, 2013. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-32 North Tahoe and Martis Valley MSR No significant growth is expected within the District’s boundaries. Given that the wastewater collection system is underutilized (i.e. has additional capacity within the design daily flow, of 7.8 mgd) the District does not anticipate any need for expansion within the planning period of this MSR. Wastewater Infrastructure and Facilities Treatment Systems The District does not provide any wastewater treatment. Wastewater treatment is provided by T-TSA. Collection and Transmission The TCPUD collects wastewater from within its Table 14.14: Sewer System service area, which extends from D.L. Bliss State Characteristics Park to the Dollar Point area, north from Tahoe City to the Placer/Nevada County line just south of Tahoe City PUD System Facilities Number of Connections 8,103 Truckee town limits. The District’s collection Length of Gravity Mains 150 system consists of pipelines ranging in size from 4 to miles 36 inches in diameter (TCPUD, 2014, pp. 8-2). Length of Force Mains 7 miles Manholes 2,349 Wastewater Pump 21 The TCPUD discharges wastewater to the TTSA Stations Truckee River Interceptor (TRI) for conveyance out Source: TCPUD SSMP,2014 (page 8- of the Basin and to a treatment plant in Truckee 2) (TCPUD, 2014, pp. 8-9). The TRI is owned and operated by TTSA and conveys all raw sewage 17 miles to Truckee where it is treated at the TTSA regional water reclamation plant, which also treats wastewater for Squaw Valley, Alpine Meadows, Northstar and areas of Truckee. Sewage flow and infiltration/inflow (I/I) is critical to the design of sewer collection and transport systems. The District has a preventive maintenance and repair plan included within its Sewer System Management Plan (SSMP) that addresses I/I flow issues. Under the TCPUD Capital Improvement Plan (CIP), a number of updates to the sewage system are underway. The primary focus of the CIP in 2013 was the Tahoe City Residential System Rehabilitation, which will commence with planning and design work in 2014. Other project priorities include pump and control upgrades, sewer flow meter and pump station bypass facilities (Placer County, 2014, pp. 4-22). Wastewater Challenges The District noted aging infrastructure, power outages, and increased regulation and oversight by other agencies as challenges. Most communities in California utilize new residential and commercial developments as opportunities to upgrade local infrastructure. However, in the north Lake Tahoe area there has been a lack of new development for a variety of reasons and this reduces the amount of private capital invested into the Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-33 North Tahoe and Martis Valley MSR wastewater system. However, the PUD also notes that providing wastewater service to private development projects can also sometimes be a challenge. The District’s CIP is designed to address the challenges described in this paragraph. Wastewater Service Adequacy Based on the available information described in the District’s 2014 Sewer System Management Plan, TCPUD provides adequate collection of wastewater to its customers. 14.10: Park, Recreation, and Trails Service Park Service Overview In 1947 the District began maintenance of Commons Beach and local street lighting. In 1968 the District added recreation uses to its provision of services (District Resolution No. 295). Recreation facilities operated by the District include parks, trails, beaches, boat landings, golf course, campgrounds, and community centers. Additionally, the Tahoe Rim Trail goes through Tahoe City in its circuitous route around Lake Tahoe. It is estimated that over 1,000,000 recreationalists use the District’s facilities annually (TCPUD, 2013, p. 11). Infrastructure Needs and Deficiencies The District’s Parks and Recreation Department operates and maintains 7 athletic fields, 9 community parks, 3 beach parks, campground, boat ramp, 6 tennis courts, dog park, 22 miles of trails and 5 community buildings receiving over 1 million use visits annually. The Department also oversees the Nordic center, 5 playgrounds, river ingress/egress facilities, 2 portable stages, sidewalks and 118 streetlights, 4 public plazas and Tahoe City Wye islands (TCPUD, 2013, p. 61). Most of these facilities are owned by other agencies and operated by TCPUD under various agreements and contracts. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-34 North Tahoe and Martis Valley MSR Table 14.15: Summary of Recreation Facility Acreage by Type Type of Facility Acres Day Use Beaches 108 Day Use Areas 54.6 Community Sports and Recreation 16 Community Centers 3.9 Golf Courses 35.8 Campgrounds 2.13 Total 220.43 Truckee River Bike Trail 7,283 linear feet Source: Draft Tahoe Community Area Plan, (Placer County, 2014, pp. 5-2) at http://www.placer.ca.gov/~/media/ cdr/Planning/CommPlans/TahoeBasinCPUpdate/DraftPolicy Doc/Ch5RecPublicSvc.pdf As noted Table 14-15 above, the TCPUD owns and maintains the popular Truckee River Bike Trail, a multi-use trail. The Truckee River Bike Trail is being replaced and rehabilitated during the summer of 2018. Although the trail provides transportation and associated air quality benefits, it is included as part of the District’s park and recreation services. TCPUD conducted a survey of bike trails users in 2017 which found that nearly all respondents (96%) say that trails play a significant positive role in their enjoyment of North Lake Tahoe. 64% of survey respondents were visitors to Squaw Valley, west shore, and other areas of Lake Tahoe, Martis Valley, and Truckee (TCPUD, 2017). The District does not currently have adopted park standards. However, they do follow standards set by California Parks and Recreation Society and National Recreation and Parks Association. The District is currently in the process of updating its 2000-2010 Master Plan where recreation needs and deficiencies will be identified and prioritized. The District has a number of maintenance agreements with other agencies which partially defray costs. A Placer County Maintenance Service Agreement provides partial funding for Lake Forest Beach Park, Commons Beach Park, Heritage Plaza, Customs House, Squaw Valley Park and Squaw Valley bike trails. The State of California Department of Transportation Maintenance Agreement addresses maintenance of the bike trails, including the following: State Route 89 from Sugar Pine Point State Park to Squaw Valley Road and State Route 28 from 400 north of Jack Pine Avenue to Dollar Drive. The District also has maintenance agreements with California State Parks, U.S. Forest Service, California Tahoe Conservancy and Tahoe Truckee Unified School District to maintain and operate some of their facilities in the District boundaries. The State of California Department of Boating & Waterways grant helps to support the sailing program (TCPUD, 2013, p. 58). The District also provides both indoor and outdoor recreation programs, activities and community events, which are provided at a discount to residents. TCPUD’s Recreation Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-35 North Tahoe and Martis Valley MSR Department served over 75,000 users through 65 programs in 2012, with the Commons Beach concerts being the largest serving over 12,000 participants. Some of the programs include aquatics, adult sports, RAP Afterschool Program, day camp, special events, youth sports, and Rideout Community Center recreation programs (TCPUD, 2013, p. 79). Park and Recreation Challenges Some of the challenges the District faces in the area of Parks and Recreation are coordinating maintenance and obtaining funding with multiple agencies including Placer County, California State Parks, U.S. Forest Service and Tahoe Truckee Unified School District. Other challenges include regulatory requirements for projects, lack of adequate funding from the other agencies, and meeting ADA requirements in a mountain community. Additionally, the lack of new development in the North Tahoe region results in a lack of private capital being invested in park facilities, as compared to other communities in the State. If the current drought conditions continue, the District may face the difficult challenge of balancing water use with the need to irrigate certain facilities like sports fields and the golf course. Recreation Service Adequacy The District provides a wide variety of parks and recreation opportunities to its residents and visitors to the Lake Tahoe region. The District continues to actively seek and obtain grant funding to increase and maintain its facilities, such as the recent acquisition of a golf course and improvements to the Lake Forest Boat Ramp. Other local adjoining agencies like Squaw Valley and Alpine Meadows do not provide recreation or parks services and many of their residents rely on the District’s services. North Tahoe Public Utility District provides parks services and limited recreational programs. Status of, and Opportunities for, Shared Facilities The TCPUD and the North Tahoe Public Utility District provide similar services (wastewater collection, water, parks and recreation). Additionally, TCPUD is located adjacent to and southwest of the North Tahoe Public Utility District. Given the similarity of service provision and geographic proximity, it is recommended that prior to the next MSR or SOI Update for these districts (approximately year 2023), the two districts should jointly consider whether it is possible to gain efficiencies through shared services or infrastructure and send a one-page memo to LAFCo describing the results of this joint consideration. 14.11: Determinations Population and Growth 1. There were approximately 10,130 residential housing units within the Tahoe City Public Utility District as of 2015. This includes 4,192 housing units located in multi- family structures and 5,938 single family homes. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-36 North Tahoe and Martis Valley MSR 2. The District serves a total of 17,814 people on average and this represents 8,524 permanent residents and approximately 9,290 visitor/vacationers on an average day. 3. Peak overnight visitors are estimated to be 17,307 persons. This does not include day- use only visitors. 4. Approximately 33 percent of the homes within the District boundaries are full-time residences. 5. The District projects that future growth will occur at a rate of 1.0 percent. Disadvantaged Unincorporated Communities 6. The Lake Forest neighborhood in north Lake Tahoe meets the financial criteria to be classified as a DUC, based on data from the 2010 Census. This neighborhood does receive water service and wastewater collection services from TCPUD. Fire protection services are provided to this neighborhood by the North Tahoe Fire Protection District. No health and safety issues have been identified. 7. A portion of TCPUD’s boundaries that cross into El Dorado County have been identified as a DUC by DWR. A portion of this area does receive water services and wastewater collection services from TCPUD. Fire protection services are provided by the Meek’s Bay Fire Protection District, which contracts to the North Tahoe Fire Protection District. No health and safety issues have been identified. Present and Planned Capacity of Public Facilities 8. The Tahoe City Public Utility District was originally formed in 1938. 9. The District currently provides wastewater collection, water, parks and recreation services within its boundaries. 10. The District utilizes its Capital Improvement Plan to plan and budget for needed infrastructure. Water 11. In general, the District has sufficient water supplies to meet average and maximum day demands. 12. The District noted a number of challenges to its adequate provision of water services to customers, citing aging infrastructure, climate, drought, equipment failure, power outages, and new regulations. 13. The District currently provides sufficient water service to its customers. 14. To better meet the long-term needs of the District, the West Lake Tahoe Regional Water Treatment Plant (WTP) project is currently under design, which consists of a 1.0 mgd, expandable to 1.5 mgd, surface water treatment plant. 15. The District prepares an Urban Water Management Plan and annually updates a 5-year Capital improvement Plan. 16. Water conservation is important to the District and it has recently taken several measures to support customer water conservation including: 1) compliance with State law by installing water meters at all service connections; 2) adopting Ordinance 284 Water Conservation and Drought Response Standards on April 2015. 17. Water delivery appears to be adequate in the foreseeable future. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-37 North Tahoe and Martis Valley MSR Wastewater 18. The District’s wastewater service provision is limited to collection services. All treatment and disposal is provided by the Truckee-Tahoe Sanitation Agency, of which the District is a member. 19. The District has a Sewer System Management Plan and 5-Year Capital improvement Plan in place to identify and plan for needed maintenance and upgrades of its system. 20. The District provides adequate collection of wastewater to its customers. 21. The District noted equipment failures, aging infrastructure, and power outages as challenges to the provision of services. The District’s 5-year Capital improvement Plan is aimed towards addressing these challenges. Parks and Recreation 22. The District provides a wide variety of parks and recreation opportunities to its residents and visitors to the Lake Tahoe region. 23. The District follows standards set by California Parks and Recreation Society and National Recreation and Parks Association. 24. It appears that the park facilities are adequate at this time. 25. The District continues to actively seek and obtain grant funding to increase and maintain its facilities, such as the recent acquisition of a golf course and improvements to the Lake Forest Boat Ramp. 26. It is noted that three districts in the North Tahoe Martis Valley area provide recreation services (ASCWD, North Tahoe PUD, and Tahoe City PUD) as shown in Table E1-1 in the Executive Summary. Other recreation service providers in the region include the Truckee Donner Recreation and Park District, California State Parks, and the U.S. Forest Service. Given this plethora of recreation service providers, LAFCO and its subject districts should study whether additional efficiencies could be gained through structural or organizational changes. Financial Ability of Agency to Provide Services 27. On an annual basis, the TCPUD adopts a comprehensive budget. The FY 2015 budget is available to the general public via the District’s website. This budget demonstrates adequate finances for the continued ability of the District to provide services and to meet current obligations and those expected in the near future. 28. Daily operations and maintenance of water and wastewater services are funded by the regular service charges and fees. Property taxes also contribute to these services. 29. The District’s operating revenues exceed expenditures. 30. Information on the District’s rates is posted on its website at: http://www.tahoecitypud.com/ 31. The District practices cost reduction through careful purchasing, bidding processes, and other mechanisms. In the short-term, no additional cost-avoidance opportunities have been identified at this time. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-38 North Tahoe and Martis Valley MSR Status of, and Opportunities for, Shared Facilities 32. The TCPUD and the North Tahoe Public Utility District provide similar services (wastewater collection, water, parks and recreation). Additionally, TCPUD is located adjacent to and southwest of the North Tahoe Public Utility District. Given the similarity of service provision and geographic proximity, it is recommended that prior to the next MSR or SOI Update for these districts (approximately year 2023), the two districts should jointly consider whether it is possible to gain efficiencies through shared services or infrastructure and send a one-page memo to LAFCo describing the results of this joint consideration. 33. Although the District does not directly share its facilities with other agencies, it does have several cooperative agreements with neighboring service providers including: a. water purchase agreement with Squaw Valley Public Service District to serve customers along Hwy 89. b. participation in the “Tahoe Truckee Area Emergency Contingency Plan Agreement for Mutual Aid” which sets forth a policy of mutual cooperation to provide sewer and/or water emergency aid. c. an agreement with the McKinney Water District, Tahoe Park Water Company, and North Tahoe PUD for an emergency interconnection which can provide water to either agency. d. Placer County Maintenance Service Agreement provides partial funding for Lake Forest Beach Park, Commons Beach Park, Heritage Plaza, Customs House, Squaw Valley Park and Squaw Valley bike trails. e. State of California Department of Transportation Maintenance Agreement addresses maintenance of the bike trails, including the following: State Route 89 from Sugar Pine Point State Park to Squaw Valley Road and State Route 28 from 400 north of Jack Pine Avenue to Dollar Drive. f. maintenance agreements with California State Parks, U.S. Forest Service, California Tahoe Conservancy and Tahoe Truckee Unified School District to maintain and operate some of their facilities within the District boundaries. g. State of California Department of Boating & Waterways grant helps to support the sailing program. 34. No additional opportunities for facility sharing have been identified at this time. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-39 North Tahoe and Martis Valley MSR Accountability for Community Service Needs, Including Governmental Structure and Operational Efficiencies 35. The District demonstrated accountability through its prompt disclosure of information requested by LAFCo for preparation of this MSR. 36. Board meetings are publicly noticed and comply with the Brown Act, California’s open meeting law. They are held monthly. 37. No boundary changes are pending or proposed at this time. It is recommended that Placer LAFCO staff work to resolve the three “Review Areas” shown on Figure 14-2 to address concerns that TCPUD and El Dorado LAFCO have with the Placer County GIS data on the boundary/SOI. 38. All Board members have access to District data, records and information. 39. The District has adequate public outreach, with a public website featuring meeting minutes, and general information. 40. The District has a strategic plan that outlines its mission statement, vision statement, and goals and objectives. 41. The TCPUD encourages two-way communication with its constituents through its website and other communication tools. 14.12: References Agreement for Services with Truckee Sanitation District. (1992, March 22). CA. Amendment to Agreement for Services with Truckee Sanitation District. (2005, September 13). CA. California, State of. Department of Water Resources. 2015. Website entitled “Resources - Disadvantaged Communities (DAC) Mapping Tool”. Available on-line at: <http://www.water.ca.gov/irwm/grants/resources_dac.cfm>. Accessed 11/2/15. CDPH. (2011). Domestic Water Supply Permit: Public Water System No. 3110028. Sacramento: CDPH. CDPH. (2012a). Public Water System No. 3110044 Annual Inspection Report. Sacramento: CDPH. CDPH. (2012b). Public Water System 3110011 Annual Inspection Report (Quail/McKinney). Sacramento: CDPH. CDPH. (2012c). Public Water System No. 0910012 Annual Inspection Report (Rubicon). Sacramento: CDPH. CDPH. (2013). TCPUD Main 3110010 Annual Inspection Report. Sacramento: CDPH. Corporation, A. E. (Amended 2011, October 18). TCPUD 2010 Urban Water Management Plan. Retrieved July 13, 2014, from TCPUD: http://www.tahoecitypud.com/download/general/10uwmp.pdf ECO:LOGIC Engineering. (2002). NCSD Master Water Plan Update. Rocklin: ECO:LOGIC. James Marta & Company, LLP. (2012). Northstar Community Services District Financial Statements, Independent Auditor's Report. Truckee: NCSD. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-40 North Tahoe and Martis Valley MSR Mann, Urratia, Nelson, CPAs & Associates, LLP. (2013). TCPUD Annual Financial Report With Independent Auditor's Report. Sacramento: Mann, Urratia, Nelson, CPAs & Associates, LLP. Michael Brandman Associates. (2013, March 21). Sphere of Influence Update Truckee Sanitary District. Retrieved January 21, 2014, from Nevada County LAFCo: http://www.mynevadacounty.com/nc/lafco/docs/LAFCo%20Sphere%20Plans%20and%2 0Related%20Materials/DRAFT%20SPHERE%20PLAN%20UPDATES/TSD- Material%20for%20Website/TSD- Final%20Documents/TSD%20SOI%20Adopted%20May%202013.pdf NCSD. (2012, December 19). NCSD Board Meeting Minutes. Retrieved January 7, 2014, from Northstar Community Services District: http://www.northstarcsd.org/docs/Board_Minutes/12-19- 2012%20Regular%20Meeting%20Minutes.pdf NCSD. (2013). Placer LAFCO MSR Update Request for Information. Auburn. NCSD. (2013). Sewer System Management Plan. Truckee: NCSD. NCSD. (2013). Trails. Retrieved December 18, 2013, from Northstar CSD: http://www.northstarcsd.com/trails.html NCSD. (2014, January). Northstar Fire Department. Retrieved January 21, 2014, from Northstar Community Services District: http://www.northstarcsd.org/fire.html NCSD. (2014, February). Refuse. Retrieved February 8, 2014, from Northstar Community Services District: http://www.northstarcsd.org/refuse.html PCWA. (2011). Placer County Water Agency 2010 Urban Water Management Plan. Auburn: PCWA. PCWA. (2013, October 4). News Release: PCWA Plans Transfer of Martis Valley Water Service to Northstar CSD. Retrieved January 8, 2014, from PCWA: http://www.pcwa.net/files/News_Releases/2013/10-04- 2013_PCWA_Plans_Transfer_of_Martis_Valley.pdf Placer County. (2003, December 16). Martis Valley Community Plan. Retrieved January 8, 2014, from Placer County: http://www.placer.ca.gov/~/ media/cdr/Planning/CommPlans/MartisValley/MartisValleyCommPlanDec2003.pdf Placer County. (2011). Engineering Report for Consideration of a Permit for the NCSD Domestic Water Supply System (System No 3110028. Auburn: Placer County. Placer County. (2014). Chapter 4 Recreation, Public Services, and Facilities. Retrieved July 31, 2014, from Tahoe Basin Community Plan Update: http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/TahoeBasinCPUpdate/ DraftPolicyDoc/Ch5RecPublicSvc.pdf Placer County Office of Economic Development. (2009). Placer County Travel Industry Assessmentand Detailed Economic Impact Estimates, 2002-2008. Prepared by Dean Runyan Associates and Chuck Nozicka Consulting. 69 pages. Available on-line at: <http://www.placer.ca.gov/departments/CEO/Econdev>. Placer LAFCO. (2004). Municipal Services Review Area 3 Services. Auburn: Placer LAFCO. PMC. (2013, November). Northstar Mountain Master Plan Draft EIR. Retrieved January 8, 2014, from Placer County : http://www.placer.ca.gov/Departments/CommunityDevelopment/EnvCoordSvcs/EIR/ NorthstarMMP.aspx Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-41 North Tahoe and Martis Valley MSR PMC. (2013, February). Sphere of Influence Update Truckee Sanitary District Draft EIR. Retrieved January 18, 2014, from Nevada LAFCo: http://www.mynevadacounty.com/nc/lafco/docs/LAFCo%20Sphere%20Plans%20and%2 0Related%20Materials/DRAFT%20SPHERE%20PLAN%20UPDATES/TSD- Material%20for%20Website/CEQA%20Documents/Draft%20EIR%20for%20TSD%20SOI%20U pdate.pdf Taggart and Taggart, LTD. (2013). Progress Report by Permittee for 2012: Permit Number 016619. Sacramento: SWRCB. TCPUD (2011). 2010 Urban Water Management Plan. Amended October 18, 2011. 111 pages. Available on-line at: <http://www.tahoecitypud.com/download/general/10uwmp.pdf>. TCPUD. (2012). TCPUD Annual Budget Fiscal Year 2013. Tahoe City: TCPUD. TCPUD. (2013). Personal communication with TCPUD staff. (K. Harrison, Interviewer) TCPUD. (2013, August 14). Response to Placer LAFCO Request for Information. Tahoe City, CA. TCPUD. (2014, May). Risk-Based Sewer System Management Plan. Retrieved July 31, 2014, from Tahoe City Public Utilities District: http://www.tahoecitypud. com/download/utilities/2014ssmp.pdf. TCPUD. (Amended 2011, October 18). TCPUD 2010 Urban Water Management Plan. Retrieved July 13, 2014, from TCPUD: http://www.tahoecitypud.com/ download/general/10uwmp.pd.f TCPUD-b. (August 2014). Comprehensive Water and Sewer Rate Study. unincorporated Placer County - Tahoe City: HDR Engineers. TCPUD. April 2015. Water Conservation and Drought Response Standards (Ordinance 284). 22 pages. Available on-line at: http://www.tahoecitypud.com/download/ general/ord284.pdf. TCPUD. August 25, 2017. Bike Trail Annual Survey – Summary Report 2017. Kurt Althof, Author. 27-pages. Available on-line at: <http://www.tahoecitypud.com/sites/default /files/documents/Parks/Bike%20Trail%20Survey%20Summary%202017%20Final.pdf>. Tahoe Regional Planning Agency (TRPA). August 31, 2010. Environmental Assessment for North Lake Tahoe Preliminary Redevelopment Area Plans: Kings Beach/Stateline Tahoe Vista Lake Forest Tahoe City/Gateway. Attachment E. PMC consultants, contributors. Stateline, Nevada. 80-pages. Available on-line: http://www.trpa.org/wp- content/uploads/Attachment_E_Final-EA.pdf. Retrieved August 28, 2016. Draft Final, August 2018 Chapter 14, Tahoe City PUD 14-42 North Tahoe and Martis Valley MSR C 15 HAPTER Tahoe Forest Hospital District (photo courtesy of www.google.com/maps ) Table of Contents 15.1 Agency Profile .................................................................................................. 15-2 15.2 Overview of Agency ........................................................................................... 15-3 15.3: Formation and Boundary ..................................................................................... 15-3 15.4: Accountability and Governance ............................................................................. 15-7 15.5: Management Efficiencies and Staffing ..................................................................... 15-8 15.6: Population and Growth ...................................................................................... 15-11 15.7: District Services .............................................................................................. 15-18 15.8: Infrastructure and Facilities ............................................................................... 15-21 15.9: Financing ...................................................................................................... 15-23 15.10: Challenges .................................................................................................... 15-28 15.11: Service Adequacy ........................................................................................... 15-28 15.12: Determinations .............................................................................................. 15-30 15.13: References ................................................................................................... 15-32 Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-1 North Tahoe and Martis Valley MSR 15.1 AGENCY PROFILE TAHOE FOREST HOSPITAL DISTRICT Type of District: Local Hospital/Health Care Enabling Legislation: The Local Health Care District Law: Health and Safety Code sections 32000- 32492 Functions/Services: Critical Access Hospital, skilled nursing, Home Health, Hospice, Cancer Center Main Office: 10121 Pine Avenue, Truckee, CA Mailing Address: P.O. Box 759, Truckee, CA 96160 PHONE NO.: 530-582-6011 Fax No.: 530-587-2532 Web Site: www.tfhd.com Email: information@tfhd.com Administrator: Harry Weis, CEO Email: sjackson@tfhd.com Phone: 530-582-3480 Other Contact: Ted Owens, ED Governance Email: towens@tfhd.com Phone: 530-582-6551 Governing Body: Elected Board of Hospital Directors Term Expires Charles Zipkin, M.D., President December 2018 Randy Hill, Vice-President December 2020 Alyce Wong, Secretary December 2020 Dale Chamblin, Treasurer December 2018 Mary Brown, Director December 2018 Meeting Schedule: Fourth Thursday of each month at 6:00 p.m. Meeting Location: Tahoe Truckee Unified School District Admin Offices, 11603 Donner Pass Road Truckee, CA Date of Formation: May 3, 1949 Principal County: Placer County Other: Multi-county district serving Placer County and Nevada County Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-2 North Tahoe and Martis Valley MSR 15.2 OVERVIEW OF AGENCY SUMMARY DESCRIPTION OF EXISTING SERVICES The Tahoe Forest Hospital District provides hospital and related medical services to residents of Placer and Nevada counties as well as those residing in more outlying areas, including Sierra County and Western Nevada. See Figure 15-1 for District boundary and Sphere of Influence. This is the second Municipal Service Review (MSR) for the District. TYPE AND EXTENT OF SERVICES Healthcare facilities under the District’s jurisdiction include the Tahoe Forest Hospital in Truckee and Incline Village Health Center, located in Nevada. The hospital provides services that include acute and long-term medical care, outpatient/ambulatory care medical clinic, cancer care, hospice, and home health care. There is also a heliport onsite to accommodate helicopter ambulances. The District also operates a health service satellite facility in Tahoe City, which provides radiology, laboratory, and physical therapy services. The Incline Village Hospital is also operated by TFHD, which extends the District’s service area outside of their delineated boundary and into the state of Nevada. LOCATION AND SIZE TFHD is located in the unincorporated area north and west of Lake Tahoe and encompasses portions of both Placer County and Nevada County. The District’s boundaries encompass 390,585 acres (610 square miles); although its service area is much larger. The communities of Truckee, Soda Springs, Tahoe City, and Tahoma lie within the District boundaries. 15.3: FORMATION AND BOUNDARY The District was formed on May 3, 1949 as an independent special district via a vote by local residents. The formation of this District was enabled under the provisions of The Local Health Care District Law as set forth in the Health and Safety Code (Section 32000 et seq.) of the State of California. A Resolution of the Board of Supervisors for Nevada County authorizing the District’s formation was approved on May 2, 1949 and this Resolution was filed with the California Secretary of State on the following day. BOUNDARY HISTORY The District’s boundaries were originally established in 1949. Since then, Placer LAFCo approved annexations into the District in 1972, 1976, and 1984. The District’s sphere of influence was adopted in 1986. The boundaries include portions of both Placer County and Nevada County as shown in Figure 15-1. Placer County has the majority of assessed value of land, and is therefore, the Principal County, and the District is under Placer LAFCo jurisdiction. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-3 Tahoe Forest Hospital District Sierra §¨¦ 80 Ãà Nevada 89 State of Tahoe Forest Nevada Hospital Ãà '" J^ 20 Truckee-Tahoe §¨¦ Donner Lake Airport 80 Ãà Incline Village 431 Ãà Community 267 Hospital'" Ãà 89 Ãà NorthForkAmericanRiver 28 Placer Ãà 28 Ãà 89 Lake Tahoe Legend '" Hospital J^ Airport Hospital District in Nevada County Hospital District in Placer County California County Boundary El Dorado ² Created by Nevada County GIS Division 4/6/2016 Every reasonable effort has been made to assure the accuracy of the maps and data provided; nevertheless, some information may not be accurate. The County of Nevada assumes no responsibility arising from use of this information. THE MAPS AND ASSOCIATED DATA ARE PROVIDED WITHOUT WARRANTY OF ANY KIND, either expressed or implied, including but not limited to, the implied warranties of merchantability and fitness for a particular purpose. Before making decisions using the information provided on this map, contact the Nevada County Public Counter staff to confirm the validity of the data provided. El Dorado Alpine North Tahoe and Martis Valley MSR SPHERE OF INFLUENCE The District’s Sphere of Influence (SOI) includes portions of Nevada and Placer Counties, and extends southerly for a short distance into El Dorado County (Refer to Figure 15-2). Although the District’s SOI extends briefly into El Dorado County, the TFHD does not own or manage any facilities in El Dorado County. The District feels that its existing sphere of influence is sufficient for its needs. However, the District does own and operate facilities that are located outside the SOI as discussed in the following paragraph. EXTRA-TERRITORIAL SERVICES The District’s website states that it serves a total of six rural counties in two states and covering 3,500 square miles. The District’s formal boundaries include 610 square miles and its SOI adds an additional 306 square miles. This leaves the remaining 2,584 square miles of service area unmapped by LAFCO. TFHD does provide service to residents of the state of Nevada via its facilities located in Incline Village. TFHD also provides service to residents in Sierra County. That portion of the District’s service area that is located in the state of Nevada and in Sierra County is located outside the District’s formal boundaries and SOI. Additionally, TFHD serves visitors who may require medical attention while visiting within in the North Lake Tahoe-Truckee region. The proximity to Interstate 80 with its sometimes challenging driving conditions due to periodically poor weather conditions produces transient patients in need of emergency services. This is understandable, given the vacation, recreational and tourism draw and the geographic elevation of the Truckee and North Lake Tahoe region. AREAS OF INTEREST TFHD did not identify specific areas outside the District boundaries that require services from the District. It is not clear what services TFHD provides in Sierra County. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-5 20 N 12 E 20 N 13 E 20 N 15 E 20 N 16 E 20 N 17 E 20 N 14 E 19 N 12 E 19 N 14 E 19 N 18 E 19 N 13 E 19 N 17 E 19 N 15 E 19 N 16 E 18 N 12 E 18 N 13 E 18 N 18 E 18 N 14 E N E V A D A 18 N 16 E 18 N 17 E C O U N T Y 89 18 N 15 E 80 Truckee 17 N 18 E 80 17 N 12 E 17 N 13 E 17 N 14 E 17 N 16 E 17 N 17 E 17 N 15 E 267 16 N 18 E Kings Beach 89 Tahoe Vista 16 N 17 E 16 N 12 E 16 N 13 E 16 N 14 E 28 16 N 15 E 16 N 16 E P L A C E R Dollar Point C O U N T Y Lake Tahoe 15 N 12 E 15 N 13 E 15 N 14 E Sunnyside-Tahoe City 15 N 15 E 15 N 16 E 89 14 N 15 E 14 N 16 E 14 N 12 E 14 N 13 E 14 N 14 E 14 N 17 E 13 N 14 E 13 N 15 E 13 N 16 E 13 N 17 E Tahoe Forest Hospital District E L D O R A D O Tahoe Fo1r3e sNt 1H3o Espital District C O U N T Y Sphere of Influence Towns/Communities County Boundary 0 2 4 Miles District Boundary from Placer County GIS and Nevada County LAFCo, SOI from Placer County LAFCo Figure 15-2 TAHOE FOREST HOSPITAL DISTRICT North Tahoe and Martis Valley MSR 15.4: ACCOUNTABILITY AND GOVERNANCE The District is governed by a five-member Board of Directors, who are elected by registered voters within the District boundaries. Regularly scheduled meetings are held on the fourth Thursday of each month at 6:00 p.m. Meetings are located at the Tahoe Truckee Unified School District Admin Offices, 11603 Donner Pass Road, Truckee, CA. The current Board members are as follows: Name Role Term Charles Zipkin, M.D. President 2014 – 2018 Randy Hill Vice- President 2016 - 2020 Alice Wong Secretary 2016 – 2020 Dale Chamblin Treasurer 2014 - 2018 Mary Brown Director 2014 – 2018 Directors serve a four-year staggered term of office. Compensation is $100 per meeting capped at $500 per month. Health benefits are offered to directors during the time of their service on the board. Health benefits can be extended to immediate family (TFHD, 2014). In the most recent election (held in November 2014), seven candidates vied for three positions with a voter turnout of 73%. The District is a “registered voter district,” as the board members are elected by registered voters residing within the District’s boundaries. Meetings of the Board of Directors are open to the public and conducted in compliance with the Ralph M. Brown Act. Legal counsel is present at all public meetings to ensure Brown Act compliance. “Public Input” is called for by the Board President and is so noted on the public meeting agenda, and recorded in the meeting minutes (TFHD, 2014). Meeting notices/ agendas are posted throughout the Health System (several campus and foundation locations) at least 72 hours before a regularly scheduled meeting. Agendas are also posted on the TFHD website and emailed directly to constituents that have requested such. Minutes are posted on the TFHD website following approval by the Board. Board meetings have recently been moved to the Tahoe Truckee Unified School District Admin Offices, 11603 Donner Pass Road, Truckee, CA. This meeting location allows board meetings to be “livestreamed” on the Truckee Tahoe Community Television website, ttctv.org and by link on TFHD’s website, TFHD.com, so that residents and vacation homeowners can view the meeting in real time. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-7 North Tahoe and Martis Valley MSR To efficiently manage the District, the Board of Directors has established several sub-committees including the Governance Committee, Retirement CONTACT INFORMATION: Committee, Board Finance Committee, Board Harry Weis, CEO Community Benefit Committee, Board Personnel 10121 Pine Ave, Committee, and the Board Quality Committee. No Truckee, CA 96161 action is taken at the committee level, but (530) 582 3480 recommendations are made to the Board. The Board invites and welcomes the community to attend the committee meetings. Committee meetings also meet the requirements of the Brown Act. Committee meeting agendas and minutes are posted on the District’s website. In addition to regular Board meetings and committee meetings, the Board also has a number of Special Meetings. Ethics are important to hospital administration. The Board most recently reviewed ethics laws during its retreat in Tahoe City on March 17, 2015. Additionally, the District’s practices with compliance ethics, ethics in patient care, and ethics in business practices are posted on its website at: http://www.tfhd.com/compliance-ethics.asp. These practices are consistent with the requirements of California Government Code §53235. TFHD approved its conflict of interest code in 1978. This code was revised in 1991, 2010, 2014, and 2015. The Political Reform Act (California Government Code Section 81000, et seq.) requires local government agencies to adopt and promulgate conflict-of-interest codes. The Fair Political Practices Commission has adopted a regulation (2 California Code of Regulations Section 18730) that contains the terms of a standard conflict-of-interest code, which can be incorporated by reference in an agency’s code. TFHD has designated positions that are required file their statements of economic interests with the District. (See also California Government Code §87203). 15.5: MANAGEMENT EFFICIENCIES AND STAFFING Authority of the TFHD lies primarily with the elected Board of Directors. TFHD’s Chief Executive Officer (CEO) is hired by the Board and reports directly to the Board. The CEO has responsibility of the overall operations system and this includes insuring that TFHD delivers high-quality, cost effective care and coordinating the development of services and facilities. The CEO has several direct reports including the Foundations, CFO, COO, CNO, CIO, and the Human Resources Department. Bob Schapper served as CEO for twelve years from 2003 to 2015 and he retired from TFHD with agreement of the Board. Virginia Razo was interim CEO from January 28, 2015 to April Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-8 North Tahoe and Martis Valley MSR 2015. Jake Dorst was appointed as the District’s interim CEO on May 1, 2015. In November 2015, the Board appointed a new permanent CEO named Harry Weis. The TFHD Chief Financial Officer is charged with supervision of the patient financial services, material management, as well as a budget analyst. The medical staff including the retail pharmacy, reports to the District’s COO. There are more than 25 specialties and sub- specialties represented on the medical staff. The medical staff is 100% board certified. TFHD has received many awards including: • Exceptional 5-star rating for Patient Satisfaction from the Centers for Medicare & Medicaid Services, • One of America's Top 100 Critical Access Hospitals in 2012 by the National Rural Health Association • Rural Center of Excellence by UC Davis, • and many others. There are approximately 750 full-time and part-time employees of the District organized as shown in Figure 15-2. Complaints Mission Statement Part of management’s responsibility is responding to We exist to make a difference in customer complaints. Complaints may be directed to the health of our communities the TFHD Patient Advocate, Trish Foley at (530) 582 through excellence and compassion 6567 or by email at PFoley@TFHD.com. Complaints in all we do. that are delivered to the members of the board, administration or other staff are directed to the Patient Advocate. In 2015 TFHD received 104 total complaints, 64 related to Care, 35 related to Service Delivery and 5 related to Billing (TFHD, 2016). Permits The Tahoe Forest Hospital District is licensed as a Critical Access Hospital by the CA Department of Public Health (CDPH), which is renewed on an annual basis. The license establishes a capacity of 72 beds including 25 for general acute care and 37 for skilled nursing and ten others. TFHD received permission to operate specialized equipment for its Cancer Center on August 7, 2012 from the CDPH. The Office of Statewide Health and Planning must approve all new construction projects proposed by the District. There are currently no legal or administrative challenges regarding existing permits held by TFHD. Since the District operates a facility in the state of Nevada, they are required to be licensed by the Nevada Department of Human Resources, Division of Health. The Tahoe Forest Hospital Laboratory has also received accreditation and awards for excellence from COLA, a non-profit accreditation organization. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-9 North Tahoe and Martis Valley MSR The District’s Truckee facilities received accreditation from the California Medical Association/Joint Commission of Accreditation of Healthcare Organizations in June of 2000. The District maintains all required permits and is not currently named in any investigations, government inquiries, or litigation. Industry standards in the medical field are established by various agencies including, but not limited to, Department of Health Services, Joint Commission of Accreditation of Healthcare Organizations, Health Care Financing Administration, Title 22, Medicare, and MediCal. The District is subject to both planned and “no notice” inspections. The results of such inspections typically rated the TFHD as meeting and/or exceeding industry standards. 15.6: POPULATION AND GROWTH The existing population and projected future growth are analyzed in MSRs because they are directly related to existing and future demand for most public services. POPULATION The size of the existing population throughout the Tahoe Forest Hospital District boundary area is substantially affected by seasonal variations, distinct user groups and the abundance of second homes. It is beyond the scope of this MSR to project seasonal populations; although we have provided rough estimates based upon studies that describe and characterized some of the seasonal population dynamics along with the visitor accommodations are referenced herein. TFHD’s boundaries encompass several distinct sub-regions including: 1. Tahoe City 2. North Tahoe 3. Squaw Valley 4. Alpine Springs 5. Northstar 6. Truckee 7. Donner Summit The population within these subareas, with the exception of Truckee, has been studied in other chapters of this MSR. The population in these six sub-regions, when added together, yields the population residing within TFHD’s boundaries, as shown in Table 15.1, below. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-11 North Tahoe and Martis Valley MSR Table 15.1: Existing Population in Six Sub-Regions of TFHD’s Boundary Sub-Regions in TFHD’s Existing Permanent Estimated Boundary Population Current Peak Visitor Population1 Tahoe City 8,524 2 17,307 North Tahoe 5,486 11,1383 Squaw Valley 950 3,5004 Alpine Springs 191 1,5465 Northstar Community 136 12,000 Services District Truckee 17,8976 21,4737 Donner Summit/Serene 298 2502 Lakes Total in TFHD 33,482 69,466 Based on the data shown in the above table, it is estimated that TFHD’s boundaries encompass an Existing Permanent Population of 33,482 persons. The overnight visitor population during peak season is estimated at 69,466 persons as of the year 2015. The Town of Truckee represents 54% of the permanent population and 31% of the visitor population. PROJECTED GROWTH AND DEVELOPMENT Land Use Planning Documents Projections for future development and hence increased service demands within the Martis Valley, North Lake, and Highway 89 Corridor areas comprising TTAD’s boundary area are based on information provided in the 1994 Placer County General Plan and related area plans, 1995 Nevada County General Plan, 2003 Martis Valley Community Plan, 2025 Town of Truckee General Plan, Tahoe Regional Planning Agency documents and other sources. At the time when the Placer County portion of Martis Valley Community Plan was completed in 2003 and the Truckee 2025 General Plan was updated in 2006 (and updated in 2009), the area was in a phase of rapid growth and development, the recent economic downturn was unforeseen and, 1 This column shows the # overnight visitors. (Day-use only visitors are not included.) 2 See Chapter 14 for details. 3 Calculated from total population of 14691 (=5523*2.55 persons per household). Subtracted 5507 = 9184. 4 1315 housing units from absentee owners (i.e. visitors) x 2.55 persons per household. Please note that several thousand move visitors could be accommodated in hotel rooms located within the District. 5 Overnight visitor population for ASCWD calculated from 653 units x 2.55 persons per household and 89% absentee owner unit rate. 6 Calculated from 16211 persons in Town of Truckee per DOF data on website: http://www.townoftruckee.com/departments/planning-division/growth-and-development/truckee-population- and-housing-estimates plus 1686 persons in Martis Valley per 2010 census. 7 Calculated from 6692 vacation homes in Truckee plus 1729 vacation homes (not permanently occupied) in Martis Valley * 2.55 persons per household. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-12 North Tahoe and Martis Valley MSR as a result, both plans have overestimated growth. It is important to note, however, that planned capacity for growth still remains. See discussion below under Town of Truckee General Plan. Future population growth within the North Tahoe and Martis Valley region is dependent upon zoning and general plan policies and land- use designations in the region. Regional population and zoning/general plans are described in detail in Chapter 3 of this MSR. The three local land use jurisdictions that have authority to grant entitlements to new development within TFHD’s boundaries include Nevada County, Placer County, and the Town of Truckee. Additionally, there are several federally managed properties located near the airport including the Martis Creek Lake National Recreation Area (U.S. Army Corps of Engineers) and the Tahoe National Forest (U.S. Forest Service). The Placer County General Plan which is largely applicable to the North Lake Tahoe Basin and Highway 89 corridor area was adopted in 1994. Each of the major communities in the Lake Tahoe area is also covered by area or community plans, which are being incorporated into the Proposed/Review Draft Tahoe Basin Area Plan, June 2015. The Placer County General Plan serves as an umbrella plan for the five sub-plans listed below it in the table including: 2003 Martis Valley Community Plan; Proposed/Review Draft Tahoe Basin Area Plan; 1983 Squaw Valley General Plan and Land Use Ordinance; Proposed Draft Village at Squaw Valley Specific Plan; and the Alpine Meadows General Plan. For the most part (not including Alpine Meadows and Squaw Valley planning area), the Tahoe Basin is under the oversight planning control of the Tahoe Regional Planning Agency (TRAPA). The following table provides an overview of the various land use planning documents applicable to the TFHD boundary area and relevant to projections of future growth in the area. Table 15.2: Planning Documents Planning Document Jurisdiction Citation Year Adopted 2025 Truckee General Plan Town of (Truckee, 2006).8 2006 Truckee Nevada County General Plan Nevada County (Nevada County, 1996. Updated (1996 with 2014 Land Use 1996)9 2014) Element and Housing Element, 5th Revision) 1994 Placer County General Placer County (Placer County, 1994 (Updated Plan (as updated May 21, 2013) 1994)10 2013) 8 Truckee General Plan: http://laserfiche.townoftruckee.com/Weblink/PDF/ uloj2y45db1nasz14f00di45/19/ Town%20of%20Truckee%202025%20General%20Plan.pdf 9 Nevada County General Plan at: https://www.mynevadacounty.com/nc/cda/planning/Pages/Nevada-County- General-Plan.aspx Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-13 North Tahoe and Martis Valley MSR • 2003 Martis Valley Placer County (Placer County, December 16, Community Plan11 2003)12 2003 • Proposed/Review Draft Placer County (Placer County, Not yet Tahoe Basin Area Plan 2015)13 Adopted. Draft on June 2015 • 1983 Squaw Valley General Placer County (Placer County, 1983 Plan and Land Use 1983) Ordinance • Proposed Draft Village at Placer County (Squaw Valley Not yet Squaw Valley Specific Plan Real Estate, LLC, Adopted. Draft 2014) on October 2014 • Alpine Meadows General Placer County (Placer County, 1968 Plan 1968)14 2012 Lake Tahoe Regional Plan TRPA (TRPA, 2012)15 2012 The majority of land contained within the district is managed by the United States Forest Service. The primary developed land use is residential and commercial/retail in small communities such as Truckee, Tahoe City and Kings Beach. Other existing land uses are resort/recreation such as ski resorts and golf course communities. New approved developments16 that will affect population growth within TFHD’s boundaries include: • Martis Camp (formerly known as Siller Ranch) was approved by Placer County to allow a with 650 lot subdivision, an 18-hole golf course and a 50,000-square-foot lodge. • Coldstream Specific Plan was approved by Town of Truckee August 25, 2014 for a 178.6± acre parcel to allow development of residential, mixed use commercial, and open space. The project was formerly known as PC-1 and owned by the Tiechert Corporation. It is located east of Donner State Park. • Joerger Ranch Specific Plan (PC-3) was approved by Truckee Town Council on March 24, 2015 allowing a mixed use planned community located at the intersection of 10 General Plan on County website at: http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/PCGP/PCGP2013.pdf 11 The urban core of Martis Valley is the Town of Truckee. Outlying areas will continue to support and be supported by the services found within the Town. The Nevada County portion of the 1975 plan area has not been updated, although the 2025 Town of Truckee General Plan covers their portion of the Martis Valley. 12 Martis Valley Comm Plan at: http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/MartisValley/ MartisValleyCommPlanDec2003.pdf 13 http://www.placer.ca.gov/departments/communitydevelopment/planning/tahoebasinareaplan 14 Alpine Meadows GP at: http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/NTahoeCPs /AlpineMeadowsGeneralPlan.pdf 15 LT Regional Plan, 2012 at: http://www.trpa.org/regional-plan/ 16 Recent property development approved by and considered by the Town of Truckee is listed on its website at: http://www.townoftruckee.com/departments/planning-division/growth-and- development/major-development-projects Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-14 North Tahoe and Martis Valley MSR Highway 267, Brockway Road and Soaring Way. The Specific Plan provides zoning for a variety of land uses including commercial/retail, office, industrial, residential and open space. Proposed developments that are not yet approved include: • Canyon Springs is a proposed subdivision creating 177 single-family parcels, eight parcels for affordable housing and approximately 171 acres of open space. Access is proposed off of Martis Peak Road with a gated emergency access off of Edinburgh Drive. This project has not yet been approved by Truckee Town Council. • Pollard Station - A senior neighborhood located on the 8.05-acre Davies/Fitch property. The project proposes 118 separate residential units, and 40, two-bedroom condominium units for independent senior living. • Truckee Springs Summary Plan is under consideration and if approved by Truckee would allow either 80 multi-family residential units or 120 hotel/lodging units plus public facilities and a few single-family residential units within the Downtown Master Plan area. Projected Population Numbers Hospital service demands are projected by estimating the total population of an area and the age of the population. Age is an important factor in hospital demand, because older patients are more likely to utilize hospital services. The 2004 MSR projected that the population within the Tahoe Forest Hospital District would grow at a rate of approximately 3.2 percent annually. This growth rate was not realized because of slower population and economic growth in the region. For planning purposes TFHD relies upon the University of Nevada Technical Report entitled “The Impact of Tahoe Forest Hospital on the Local Economy 2012” states that “The District’s 2013 population of 38,600 represented a 3.9% increase in population over the past five years. This is lower than the 4.9% population increase for the state of California. District population is projected to increase by 2.3% by 2017”. Using the projected growth rate of 2.3 percent annually, future population residing within the District’s boundaries is estimated as shown in Table 15.3, below. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-15 North Tahoe and Martis Valley MSR Table 15.3: Projected Permanent Population Growth with TFHD Boundaries Year 2017 2022 2027 2032 Estimated Permanent 39,488 40,396 41,325 42,276 Population Data Source: TFHD, 2014 For this MSR, a new analysis was conducted using equivalent dwelling units (EDUS) as a metric to relate to population growth. The projected EDU’s shown in in Table 15.4, below, for the years 2017 to 2032 are based upon anticipated future population growth from the total growth in the 6 sub-regions. The economic downturn from 2009 to present may have resulted in pent up demand for development. For example, projected planned growth associated with the 2025 Town of Truckee General Plan has not occurred on pace with expectations. The same can be said for Northstar-at-Tahoe. Northstar-at-Tahoe will experience growth that should approach buildout by 2034 (See Northstar CSD MSR). Other resort communities (Tahoe City, Kings Beach, etc.) in the Lake Tahoe Basin are not expected to achieve a high level of growth. The projections in Table 15.4 reflect a more modest and conservative increasing growth curve through 2032. TABLE 15.4: EDU PROJECTIONS WITHIN TFHD BOUNDARY AREA Projections 2003 2008 2012 2017 2022 2027 2032 EDUs 35,374 39,150 40,572 42,557 44,857 48,195 51,792 Percent change -- 11% 4% 5% 5% 7% 7% Percent change per -- 2% 0.90% 1% 1% 1.50% 1.50% year Total (i.e. permanent plus visitor) Population 108,520 114,385 122,897 132,069 Calculated from EDU’s17 Data Source: 1) Table 16.3, T-TSA EDU Projections, 2) EDU data from Chapter 7, Donner Summit Public Utility District, and 3) EDU data from Chapter 11, Sierra Lakes County Water District. In the year 2032, the area is expected to have a total population of 132,069. Assuming that 65% of the dwelling units are owned by absentee owners, the permanent population18 calculates to 46,224 and the visitor (i.e. vacation/absentee home) population calculates to 85,845. The hospital’s estimate of future growth presented in Table 15.3 is slightly lower than this MSR’s estimate presented in Table 15.4 above. 17 2.55 persons per household is the metric used to convert EDUs into population, based on data from 2010 census and more recent data from CA Dept. of Finance. 18 This estimate assumes that 89% of dwelling units are utilized by visitor or secondary vacation homes. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-16 North Tahoe and Martis Valley MSR DISADVANTAGED UNINCORPORATED COMMUNITIES As described in Chapter 3, LAFCo is required to consider the provision of public services to disadvantaged unincorporated communities (DUCs). Senate Bill (SB) 244 requires LAFCo to identify and consider disadvantaged unincorporated communities (DUCs) when preparing MSRs and Sphere updates for cities and special districts that provide sewer, water, or structural fire protection services. Although TFHD does not provide critical services such as sewer, water, or structural fire protection, information regarding DUCs within TFHD’s boundaries is provided herein to portray socio-economic information. A DUC is defined by the Water Code as one in which the median annual household income (MHI) is 80 percent of the statewide average. In 2010, the statewide MHI was FIGURE 15.3: DUC'S IDENTIFIED BY DWR $60,883; 80 percent of that is $48,706. Severely disadvantaged communities are defined as areas with a median income of less than 60% of the State's median household income. Relevant data were reviewed for the TFHD boundary area. Two DUCs have been identified within the TFHD boundary, its SOI, and/or adjacent areas. The California Department of Water Resources (DWR) has developed a methodology to determine the location of DUCs using the census- designated places19 (CDPs). DUC status is determined based on the DUC definition provided in DWR's Proposition 84 and 1E Integrated Regional Water Management Guidelines, dated August, 2010. DWR has developed a mapping tool to help determine which communities in an Integrated Regional Water Management (IRWM) region meet the DUC median household income (MHI) definition for grants20. The maps and geographic information system files are derived from the US Census Bureau's American Community Survey and are compiled for the five-year period 2006-2010. DWR has included, in the maps, a calculated field which indicates the DUC status for different census geographies (Place, Tract, and Block Group). Within TFHD’s boundaries two areas, Soda Springs and Kings Beach are recognized by the 19 The U.S. Census Bureau identifies “census designated place” as the statistical counterpart of a city in that it is a named place with a concentration of residents, housing, and commercial activity, but is located in a county’s unincorporated territory. 20 Department of Water Resources IRWM Grant Program, Disadvantaged Communities (DAC) Mapping Tool. www.water.ca.gov/irwm/grants/resourceslinks.cfm. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-17 North Tahoe and Martis Valley MSR Department of Water Resources as DUCs as shown in Figure 15-3. The median household income as of July 1, 2015 for the Kings Beach Census Designated Place was $40,621 and for the Soda Springs21 CDP was $44,621. Additionally, data from the California Department of Finance22 has mapped areas of low unemployment / low poverty in order to exclude these designated areas from the New Employment Credit program. FIGURE 15.4: HIGH INCOME AREAS BY DOF The areas shown in Figure 15.4 have incomes which are higher than average. Another indicator of income is determining whether a census tract is eligible for special home financing by California Home Financing Agency. There are no neighborhoods in the North Tahoe/Martis Valley region that are eligible23 for this type of home financing because median incomes are too high to qualify. 15.7: DISTRICT SERVICES SERVICE OVERVIEW TFHD is a full-service health system and it offers inpatient, outpatient, and community services. The major change since LAFCo’s 2004 MSR is the construction of the Gene Upshaw Cancer Center located in a stand-alone building on the hospital campus. This cancer center is associated with UC Davis. TFHD’s inpatient, outpatient, and community services are listed below: Inpatient Services: • Medical • Surgical • Obstetric • Orthopedic • Swing Bed Program • Extended Care • Intensive Care Outpatient Services: • Ambulatory Surgery • Diagnostic Imaging • Laboratory • Emergency Services 21 Data Source: http://california.hometownlocator.com/ca/nevada/soda-springs.cfm 22 Data source: http://maps.gis.ca.gov/gobiz/dga/default.aspx 23 Data source: http://qct.huduser.org/tables/1statetable.odb?statefp=6.0&DDAYEAR=2013 Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-18 North Tahoe and Martis Valley MSR • MultiSpecialty Clinics • Oncology • Hospice • Home Health • Health Clinic/Occupational Health • Physical Therapy • Integrative Health Services • Retail Pharmacy Community Services: • Health Education • Health Screenings • Wellness • Disease Prevention Programs In addition, the system provides a number of medical specialties including: • Asthma/Allergy • Cardiology • Chronic Pain Management • Dermatology • Ear, Nose, Throat • Emergency Medicine • Family Practice • Gastric Surgery • Gastroenterology • General and Vascular Surgery • Internal Medicine • OB/GYN • Oncology • Opthalmology • Oral Surgery • Orthopedics • Pediatrics • Plastic Surgery • Podiatry • Pulmonology • Radiology • Sleep Disorders • Urology Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-19 North Tahoe and Martis Valley MSR DEMAND FOR DISTRICT SERVICES Inpatient services typically include the care of patients whose condition requires formal admission to a hospital. Usually patients are only admitted to a hospital when they are extremely ill or have severe physical trauma. The District’s Audited Financial Statement for FY2013/2014 provided the data presented in Table 15.5, below, regarding inpatient services. Table 15.5: INPATIENT BUSINESS ACTIVITY Acute 2014 2013 Admissions 1,617 1,661 Length of stay 2.89 2.95 Average daily census 12.8 13.4 Occupancy percentage 44.2 % 46.4% Patient days 4,679 4,907 Total ICU days 914 983 Total medical/surgical days 2,845 3,040 Total obstetrics days 920 872 Total M/S swing days 283 252 Nursery days 877 797 Deliveries 366 365 Skilled Nursing Unit Patient days 12,133 11,723 Average daily census 33 32 Occupancy percentage 89.8% 86.8% Data Source: Matson & Isom, 2014 The above data indicates that admissions, patient days, and occupancy decreased in Acute Care for 2014, as compared to the previous year. However, patient days and occupancy increased in the Skilled Nursing Unit for 2014, as compared to the previous year. Outpatient services are typically medical procedures or tests that can be done in a medical center without an overnight stay. Many procedures and tests can be done in a few hours. For example, a blood test at a lab is an outpatient service. The District’s Audited Financial Statement for FY2013/2014 provided the data presented in Table 15.6, below, regarding outpatient services. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-20 North Tahoe and Martis Valley MSR Table 15.6 OUTPATIENT BUSINESS ACTIVITY 2014 2013 Emergency department visits 16,264 16,324 Laboratory tests 143,751 146,388 Home health visits 3,778 3,980 Radiology exams 10,600 10,542 Ultrasound exams 3,848 3,658 Cat scan exams (including PET CT) 3,951 3,889 MRI scan exams 1,851 1,705 Radiation oncology procedures 4,174 3,599 Surgery cases 1,093 1,132 Surgery minutes 99,961 86,167 Data Source: Matson & Isom, 2014 The above data indicates that emergency room visits, lab visits and home health visits all declined slightly in 2014 as compared to the previous year. However, radiology exams, ultrasound exams, and cat scans all increased slightly in 2014 as compared to the previous year. 15.8: INFRASTRUCTURE AND FACILITIES The District owns and operates the Tahoe Forest Hospital located at 10121 Pine Avenue, near Donner Pass Road, Truckee, CA (in Nevada County). The hospital was initially constructed in 1950 and since then has undergone a series of expansions, in 1966, 1980, 1986, 1978, 1991, 1995, and 2002. This hospital offers a 24-hour emergency room, diagnostic imaging, health clinic, hospice, ICU, inpatient and outpatient surgery, laboratory, long term care, obstetrics, occupational health, and a sleep disorders clinic. Incline Village Community Hospital is located at 880 Alder Avenue, near Tahoe Blvd., in Incline Village, NV, 89451. This hospital is located outside of the District boundaries approved by LAFCO. It serves the population of the North Lake Tahoe area including Kings Beach, Crystal Bay and Incline Village. Incline Village Community Hospital offers 24-hour emergency care, in- and outpatient surgery, complete diagnostic capabilities with state of-the-art CT scanner, full-service laboratory, sleep disorder center, physical therapy and multispecialty clinics. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-21 North Tahoe and Martis Valley MSR In addition to the two hospitals, the District offers a cancer center, the Tahoe Institute for Rural Health Research, and the Tahoe Center for Health and Sports Performance. The District also owns 51% of Truckee Surgery Center, LLC. CAPITAL IMPROVEMENTS With the passage of Measure “C” in 2007, TFHD issued $98.5 million in bonds to improve healthcare facilities. A Facilities Development Plan (TFHD, 2015) was created to guide prioritization and construction of these facilities. Consistent with the California Environmental Quality Act (CEQA), the Districted adopted a mitigated negative declaration for the Facilities Development Plan in July 2010. Construction was completed on several capital improvement projects during the years 2010 to 2016 including: • Pharmacy relocation and remodel • Dietary relocation and remodel (phase one) • Cancer Center building FIGURE 15.5: INCLINE VILLAGE HOSPITAL • Central Energy Plant Upgrades/Relocation • Skilled Nursing Facility addition and remodel • Interim birthing at Western Addition • Office relocations • IT Data Center • Fluoroscopy and diagnostic Imaging Equipment Replacement • Medical records at the ’66 building (conceptual design in progress) • Emergency Department and Sterile Processing Department – Increment II (construction in progress) • South Building, Birthing/Dietary Phase II • South Building, Birthing Fourth LDR • South Building, Phase 5 Interim Birthing OPPORTUNITIES TO SHARE FACILITIES AND TO COLLABORATE Tahoe Forest Hospital District (TFHD) is the only hospital district in the Eastern Placer County and Eastern Nevada County areas. Although there are no opportunities for shared facilities with other hospital districts, TFHD does collaborate with the local school district which allows TFHD to utilize its administrative offices for public meetings. Memorandums of understanding (MOU’s) are a mechanism to formalize agreements for collaboration among various parties. TFHD and Washoe County have a MOU for a Mutual Aid Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-22 North Tahoe and Martis Valley MSR and Evacuation Plan. TFHD and the Truckee Donner Recreation & Parks District have a MOU to support the local hospital in the event of an emergency (TFHD, 2014). 15.9: FINANCING This MSR analysis only reviews the financial information for the Tahoe Forest Health System. The District also has the benefit of two private foundations: the Tahoe Forest Hospital Foundation and the Incline Village Hospital Foundation. Financial information for these two private foundations is not included in this MSR analysis. Information on the Incline Village Community Hospital (IVCH) is not provided in this MSR since it is located in the State of Nevada. IVCH it has its own budget (separate from the Tahoe Forest Hospital District budget) and this budget is audited separately, using a methodology that is consistent with the regulations of the State of Nevada. The budget, including projected revenues, for IVCH is partially based on insurance program reimbursement rates that are unique to Nevada such as its State-based Marketplace, known as Nevada Health Link and Nevada Medicaid. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2016. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: https://www.tfhd.com/ / The District utilizes a rigorous budget preparation methodology and fixed asset accounting. Budgets are adopted in public meetings on an annual basis. The fiscal year begins on July 1 and ends on June 30. Both budgets and audits are available to the public via the District’s website. This MSR reviewed the independent auditor’s report for Fiscal Year (FY) 2013/2014 and dated October 24, 2014, as attached to the District’s Financial Statements. The audit found that there were no issues of noncompliance with financial regulations that could have an effect on the financial statement (Matson & Isom, 2014). The most recent financial statement is for FY 2014-2015 and is dated February 8, 2016. The District complies with guidelines from Local Health Care District Law and the Office of Statewide Health Planning and Development of the State of California in regards to the maintenance of financial records (Matson & Isom, 2014). TFHD utilizes enterprise fund accounting, meaning that the charges for services are intended to pay for the costs of providing such services. Revenues and expenses are recognized on the accrual basis consistent with Governmental Accounting Standards Board (GASB) Statement No. 62 (Matson & Isom, 2014). A financial summary for the fiscal year ending June 30, 2014 is: • Total assets were $254,624,083. • Total cash and cash equivalents were $79,664,461. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-23 North Tahoe and Martis Valley MSR • Net patient account receivables were $ 21,124,945. • Days net patient service revenue in net patient accounts receivable was 72 days. • Net Capital assets were $ 144,885,000. • Assets Limited as to Use were $ 1,878,250. • Total liabilities were $ 159,691,235. • The net position was $97,263,475.00 REVENUES The TFHD’s sources of revenue consist of payment of patient fees, district taxes, income from interest on investments, as well as philanthropy. The portion of revenue from patient fees primarily comes from third-party payors, including Medicare, Medi-Cal, and commercial insurance organizations. Revenues can be divided into two basic types: • Operating revenues are received from fees associated with the direct provision of health care services. • Non-operating revenues include property tax revenues, grants, and other contributions. Although amounts vary from year to year, Operating Revenues consist of Daily Hospital Services (approximately 13%), Ambulatory Services (16%), and Ancillary Services (71%). From those revenues are subtracted bad debts, charity care, Medicare and Medi-Cal contracted adjustments, and other contracted adjustments and deductions. This results in the ‘Net Patient Revenues’ detailed in Table 15.7. Other operating revenue are derived from additional costs for services. Non-Operating Revenue is derived from property taxes, interest income, rental income, and donations, minus interest expense as detailed in Table 15-7. The following table is a summary of District revenues as reported in the Audited Financial Statements for FY 11/12, FY 12/13 and FY 13/14. Table 15.7: Revenues TFHD Years Ended June 30 2012 2013 2014 OPERATING REVENUES Net Patient Revenue $99,795,015 $101,566,879 $107,664,272 Other revenue 6,711,124 6,142,592 6,710,952 Total Operating Revenues 106,506,139 $107,709,471 $114,375,224 Years Ended June 30 2012 2013 2014 NON-OPERATING REVENUES (EXPENSES) Property tax revenue $4,824,796 $5,716,834 $4,902,246 Property tax revenue - general obligation 3,222,798 4,986,760 4,744,356 bonds Gain (Loss) recognized on joint venture 59,376 (30,517) (191,666) Interest income 300,070 330,077 280,574 Rental income - net 17,559 242,348 237,992 Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-24 North Tahoe and Martis Valley MSR Donations 677,690 549,507 659,104 Gain (Loss) on disposal of assets 24,125 (11,867) 1,000 Interest expense (4,483,822) (4,448,220) (5,390,206) Total Non-operating Revenues (Expenses) $ 4,642,592 $7,334,922 $5,243,400 Data Source: Matson & Isom, 2012, 2013 and 2014 As shown in Table 15.7 above, total revenues increased by four percent from 2013 to 2014. In FY 13/14, non-operating revenues were 22 percent of total revenues. Property tax revenue accounts for approximately 12 percent of total revenue; however, about half of this amount (i.e. 6 percent) is derived from general obligation bonds and used for capital improvements. It is the Board’s practice to limit the use of tax revenues to pay for capital needs, bond debt, community health, and as a contribution to reserves. INVESTMENTS TFHD has an adopted investment policy which serves to establish the District’s cash investment objectives, authority and responsibility, approval, instrument limitations, concentrations, terms, reporting, judgment and care, and the liability of the District Treasurer, CEO, and CFO/Controller. The stated investment objective is, “to maximize the return on invested cash while minimizing risk of capital loss and adhering to the investment policy…” The District’s investment concentrations include unlimited investments in the California Local Agency Investment Fund, as well as U.S. Government guaranteed investments. The District is generally authorized, under state statute and local resolutions, to invest in demand deposits with financial institutions, savings accounts, certificates of deposit, U.S. Treasury securities, federal agency securities, State of California notes or bonds, notes or bonds of agencies within the State of California, obligations guaranteed by the Small Business Administration, bankers’ acceptances, commercial paper, and the LAIF. TFHD has $36,733,000 invested in capital facilities such as the hospitals, and net capital were $144,900,000 as of FY13/14. Additionally, TFHD had $79,664,461 in total cash, deposits, and other investments as of FY13/14. EXPENDITURES The following is a summary of District Operating Expenses as reported in the Audited Financial Statements for FY 11/12, FY 12/13 and FY 13/14. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-25 North Tahoe and Martis Valley MSR Table 15.8: Operating Expenses TFHD Years Ended June 30 2012 2013 2014 OPERATING EXPENSES Salaries and wages $37,130,794 $38,778,617 $40,492,967 Employee benefits 20,399,939 19,943,943 20,764,643 Professional fees 14,040,941 17,850,419 18,673,595 Supplies 12,893,813 15,206,878 14,939,799 Purchased services 7,404,230 7,680,764 10,104,398 Depreciation and amortization 4,991,727 7,239,280 8,642,417 Insurance 550,407 636,454 711,516 Other 5,766,233 6,133,885 5,938,373 Total Operating Expenses $103,178,083 $113,470,240 $120,267,708 NET OPERATING INCOME (OR LOSS) $3,328056 ($5,760,769) -5,892,484 Data Source: Matson & Isom, 2012, 2013 and 2014 In both FY 13/14 and FY 12/13, operating expenses exceeded operating revenue; however, total revenues (including non-operating revenue) did NOT exceed TFHD expenses and the District’s net position at the end of the fiscal year 13/14 13/14 was $97.3 million, indicating a very stable financial situation. DEBT TFHD does have $136,086,838 in debt as of June 30, 2014, with a current annual payment totaling $2,295,193. Most of the debt is related to the capital improvements approved by voters as part of Measure C in 2007 as shown in Figure 15-6. TFHD maintains a bond rating of BBB- (Lower medium grade) as published by credit rating agencies. Figure 15-6: TFHD Debt as of FY 13/14 General Obligation Bonds Series 2007 Revenue Bonds Series 2006 Variable Rate Demand Revenue Bonds Series 2002 Bank equipment leases Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-26 North Tahoe and Martis Valley MSR Measure “C” was passed by 72 percent of District voters in both Nevada and Placer counties in 2007. Measure “C” authorized the Tahoe Forest Hospital District to issue $98.5 million in bonds to improve healthcare facilities including: • expansion and enhancement of the Emergency Room; • maintenance of critical medical services including pediatrics, maternity, long term care for seniors and cancer care; and • upgrade facilities that are outdated or do not meet state-mandated earthquake safety standards. A Citizens Oversight Committee reviews annual independent audit reports and reviews the expenditure of Measure C funds. The Committee monitors expenditures of Measure C funds by reviewing the monthly balance sheets, profit and loss statements, and monthly invoices related to Measure C projects. The Committee’s findings are communicated to the TFHD Board, and to the community via a separate website at: http://hospitalcoc.org/ . In January 2014, as part of its annual report, the Committee issued the following finding: “The COC believes that the district is in compliance with the letter and intent of Measure C based on the detailed oversight exerted during the past year.” RATE RESTRUCTURING The hospital(s) is an enterprise activity in which fees are charged for service. The District charges all patients equally based on an established pricing structure for services rendered. The Master Schedule of Charges is evaluated on an ongoing basis to ensure that only allowable are billed in order to comply with insurance practices including Medicare and Medi-Cal regulations. It should be noted that the Gene Upshaw Cancer Center does accept cancer patients regardless of their ability to pay. COST AVOIDANCE TFHD uses several financial mechanisms to avoid unnecessary costs. The District participates in a joint-powers authority structured organization to obtain professional liability insurance. The organization, which is known as the BETA group, is governed by a board of directors drawn from the participating agencies. Because of the joint structure, the BETA group is not required to pay federal or state income taxes or state premium tax, which results in additional savings of the cost of the insurance. The District is self-insured to provide employee health insurance including group medical, dental, and vision coverage. A third party administers these coverages for the District. The District is self-insured for workers’ compensation insurance. A third party administers this coverage for the District. All billing and payroll activities are performed within the District’s administration, as opposed to employing outside consultants. The District does not anticipate that growth throughout Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-27 North Tahoe and Martis Valley MSR the area will result in exceedance of service capacity or decrease in the level of service. Contracts for TFHD projects are solicited through the selective bid process, ensuring the most efficient cost per project. Contractors are paid comparable rates for the same quality of service. There are no opportunities for the District to participate in joint financing and/or funding practices, as TFHD is the only hospital district in the area. The District has not defaulted on bonds or any of the other financing mechanism. 15.10: CHALLENGES Retaining a permanent CEO has recently been a challenge for the District. However, with the appointment of a new permanent CEO in the Fall of 2015, it is hoped that a productive relationship between the Board and the CEO can be established. It should be noted that other upper management positions appear to be stable with minimal turnover. Hospital staff that directly deliver patient care often work long hours; however, overtime pay seems to be minimal in comparison to other hospitals. Future workforce planning that considers whether staff should be added, reduced, or shifted around and future discussions regarding overtime pay should be conducted in an open and transparent manner. The Affordable Care Act of 2012 may provide benefits to hospitals over the long-run through an expansion of the number of patients with health insurance, increased patient revenues, and a presumable reduction in emergency visits. However, all hospitals may feel challenged to meet the new requirements of the ACA including significant changes in the financing model for the California Medi-Cal program; increases in the demand for care; and, and lower uncompensated care costs for the uninsured. Most significantly, The Affordable Care Act shifts the hospital reimbursement model from one based on the volume of care given to one based on the quality of care. TFHD is in a unique situation because although it is a rural hospital, it cares for a population composed of both residents and tourists. 15.11: SERVICE ADEQUACY Determining the adequacy of service to patients in hospitals relates to quality measures and it is difficult to find recent publicly reported listings, rankings, report cards and recognition for California hospitals. The Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) has created a standardized survey instrument and data collection methodology for measuring patients' perspectives on hospital care. While many hospitals have collected information on patient satisfaction, prior to HCAHPS there was no national standard for collecting or publicly reporting patients' perspectives of care information that would enable valid comparisons to Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-28 North Tahoe and Martis Valley MSR be made across all hospitals. HCAHPS survey items complement the data hospitals currently collect to support improvements in internal customer services and quality related activities. The HCAHPS survey asks patients to rate hospitals in 12 categories, as listed in Table 15.9, below. The results of the HCAPS survey for the Tahoe Forest Hospital are shown via a visualization tool at the Hospital Quality Institute website at: http://www.hqinstitute.org/post/hcahps-star-ratings-data-visualization-tool-california. The HCAHPS survey rated Tahoe Forest Hospital as a 5 star facility (the highest rating out of a max of 5 stars). Table 15.9 Results of HCAHPS Survey HCAHPS Performance Measure Patient Survey Star Rating for Tahoe Forest Hospital as of April 2015 Care transition 5 Cleanliness 4 Communication about medicines 4 Discharge information 4 Doctor communication 4 Nurse communication 5 Overall hospital rating 5 Pain management 5 Quietness 3 Recommended hospital 5 Staff responsiveness 5 Summary star rating 5 Data source: http://www.hqinstitute.org/post/hcahps-star-ratings-data- visualization-tool-california The category that Tahoe Forest Hospital received its lowest score was “quietness” which was rated as 3-star. All other categories were rated either 4-star or 5-star. Although there are several other indicators of service adequacy for hospitals such as the number of complaints, patient wellness and other outcomes, hospital occupancy rates, community acquired pneumonia mortality rates, and inpatient mortality rates, we found data for these indicators to be either: 1) over ten years old, or 2) not readily available. The best indicator for hospital quality that the consultant team was able to find is the HCAHPS survey results presented in Table 15.9 above and this data shows that TFHD provides very high quality service. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-29 North Tahoe and Martis Valley MSR 15.12: DETERMINATIONS GROWTH AND POPULATION PROJECTIONS 1. The permanent population residing within the Tahoe Forest Hospital District boundaries is estimated to be 33,482 persons. The overnight visitor population during peak season is estimated at 69,466 persons as of the year 2015. 2. The future growth rate of the Agency service area is approximately 2.3 percent. 3. While there is planned growth that has been a part of the various planning programs for many years, there are no projections, projects or plan updates on the horizon that would suggest that growth will exceed those levels reflected in the respective lead agency planning documents. DISADVANTAGED UNINCORPORATED COMMUNITIES 4. Within TFHD boundaries, the communities of Kings Beach, Carnelian Bay, some neighborhoods within Tahoe City and Soda Springs met the State’s standard for DUCs (i.e. income is less than 80 percent of the state median family income) as of 2015. 5. This MSR describes how the core services (water, sewer, and structural fire protection services) are adequately provided to disadvantaged communities within eastern Placer County. TFHD is not responsible for assuring that these services are adequately provided to disadvantaged communities. No health and safety issues have been identified within the DUCs. PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES 7. Hospital facilities are sufficient to ensure that the Tahoe Forest Hospital District will be able to provide sufficient service in the future. 8. TFHD is continuing its course to complete several capital improvement projects aimed at ensuring older facilities are earthquake compliant and finishing other construction projects (such as the Gene Upshaw Cancer Center) utilizing Measure C funds. 9. Occupancy rate at Tahoe Forest Hospital is 44.2 % in Acute Care and 89.8% in Skilled Nursing. 10. The Tahoe Forest Hospital has enough beds to accommodate current and projected demands for service. The recently constructed facilities authorized by Measure C will ensure TFHD’s ability to deliver health care services into the future. 11. Facilities at the Incline Village Hospital were not analyzed in this MSR because this facility is located Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-30 North Tahoe and Martis Valley MSR outside the District boundaries and is located in a different state. 12. There were no outstanding infrastructure deficiencies identified in analysis of the Tahoe Forest Hospital District and its operations as of 2015. Existing review mechanisms appear sufficient to ensure that facilities and equipment will continue to be replaced and upgraded as service needs require. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES 13. The Tahoe Forest Hospital District has sufficient financing mechanisms in place to ensure short- and long-term provision of services within its current boundaries. The District adequately finances improvements and services through existing fees and revenue streams, and has financial reserves and assets sufficient to ensure financial stability. The District does not appear to need to find additional sources of revenue to meet projected service demands associated with service provision. 14. The District had over $136 million in debt in 2014 and its repayments are on schedule. 15. Most of TFHD’s revenues (i.e. 78 percent) is classified as “operating revenue” and is derived directly from fees paid by patients and their insurers for health care service. 16. The District does have a facility located in the State of Nevada. However, no tax dollars from the district cross the state line. The IVC hospital has a separate budget and separate audit. STATUS OF, AND OPPORTUNITIES FOR, SHARED FACILITIES 17. TFHD collaborates with the local school district which allows TFHD to utilize its administrative offices for public meetings. 18. TFHD and Washoe County have a MOU for a Mutual Aid and Evacuation Plan. 19. TFHD and the Truckee Donner Recreation & Parks District have a MOU to support the local hospital in the event of an emergency. 20. No other opportunities for shared facilities or other government structure options were identified in the MSR. These opportunities are limited in that the District is geographically isolated in the mountainous region of the Sierra Nevada and is located a substantial distance from other hospitals and healthcare districts. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATION EFFICIENCIES 21. TFHD is governed by an elected five-member Board of Directors. 22. All major administrative documents related to the Board and the District, such as meeting agendas, meeting minutes, financial statements, budgets and other information are made available to the public through a variety of distribution mechanisms including e-mail and the District website. 23. TFHD readily responded to LAFCO’s request for information, thereby demonstrating accountability and cooperation. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-31 North Tahoe and Martis Valley MSR 24. Healthcare facilities under the District’s jurisdiction include the Tahoe Forest Hospital in Truckee; Incline Village Health Center, located in Nevada; and a health service satellite facility located in Tahoe City. Operation of the Incline Village Hospital extends the District’s service area outside of their delineated boundary and into the state of Nevada. 25. It is recognized that hospital districts are unique, when compared to other public service districts in that patients may travel to seek health care services. 15.13: REFERENCES Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS). Hospital Survey. Centers for Medicare & Medicaid Services, Baltimore, MD. Available on-line at: <http://www.hcahpsonline.org>. Accessed August 23, 2015. Matson & Isom. Financial Statements With Independent Auditors’ Report. Tahoe Forest Hospital District. June 30, 2014 and 2013. October 24, 2014. 44 pages. Available on- line: <http://www.tfhd.com/pdf/Tahoe-Forest-FS-Final-14.pdf>. Accessed 30July2015. Matson & Isom. Financial Statements with Independent Auditors’ Report. Tahoe Forest Hospital District. June 30, 2013 and 2012. November 22, 2013. 45 pages. Available on- line: <http://tfhd.com/pdf/June-30-2013-2012.pdf>. Accessed 30July2015. Matson & Isom. Financial Statements with Independent Auditors’ Report. Tahoe Forest Hospital District. June 30, 2014 and 2013. October 17, 2012. 44 pages. Available on- line: <http://tfhd.com/pdf/June-30-2012-2011.pdf>. Accessed 30July2015. Placer County. General Plan Update. General Plan Background Report, Technical Appendices, Appendix A: Large Water Systems. September 25, 1992. Contributing authors include Crawford Multari & Starr, DKS Associates, Psomas and Associates, et. al. 382 pages. Placer LAFCo. Municipal Service Review for North Lake Tahoe and Martis Valley. 2004. Auburn, CA. Tahoe Forest Hospital District. Facilities Development Plan. 2010 as updated July 1, 2015. 4 pages. Prepared by Geney/Gassiot Inc. General Contractors. Available on-line at: <http://hospitalcoc.org/assets/downloads/agendas/2015/7-1-15-COC-MtgAgenda.pdf Tahoe Forest Hospital District. Response to LAFCo’s Request for Information. Coordinated by Mr. Ted Owens. January 2014. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-32 North Tahoe and Martis Valley MSR Tahoe Forest Hospital District. Website, Home Page. Available on-line at: <http://www.tfhd.com/>. Accessed 1August2015. U.S. Department of Commerce (USDC), United States Census Bureau. 2010 Demographic Profile. American Fact Finder Website. Accessed on 5July2015. Available on-line at: <http://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml>. Draft Final MSR, August 2018 Chapter 15, TF Hospital District 15-33 North Tahoe and Martis Valley MSR CHAPTER 16: TAHOE-TRUCKEE SANITATION AGENCY This Municipal Service Review (MSR) describes the Tahoe Truckee Sanitation Agency (T-TSA). This Agency was formed in 1971 and currently provides conveyance, treatment, and disposal of sewage and industrial wastewater service within its boundaries. Table of Contents 16.1: Services, Formation, and Boundary ........................ . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16-1 16.2: Accountability and Governance ...............................................................16-5 16.3: Management Efficiencies and Staffing ........................................................16-8 16.4: Population and Growth .........................................................................16-9 16.5: Financing ........................................................................................ 16-13 16.6: Opportunities for Shared Facilities ......................................................... 16-22 16.7: Wastewater Services .......................................................................... 16-23 16.8: Challenges ...................................................................................... 16-29 16.9: Service Adequacy .............................................................................. 16-29 16.10: Determinations ............................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . .16-29 Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-1 North Tahoe and Martis Valley MSR 16.1: Agency Profile Tahoe-Truckee Sanitation Agency Type of District: Statutorily created Special Purpose District Enabling Legislation: Water Code Appendix, Chapter 114 Functions/Services: Collection, treatment, and disposal of sewage, and industrial wastewater Main Office: 13720 Butterfield Drive, Truckee, CA 96161 Mailing Address: same Phone No.: (530) 587-2525 Fax No.: (530) 587-5840 Web Site: www.ttsa.net General Manager: LaRue Griffin Email: lgriffin@ttsa.net Governing Body: Board of Directors Dale Cox Squaw Valley Public Service District 2018-2022 S. Lane Lewis North Tahoe Public Utility District 2016-2020 Jon Northrop Alpine Springs County Water District 2016-2020 Dan Wilkins Tahoe City Public Utility District 2018-2022 Blake Tresan Truckee Sanitary District 2018-2022 Meeting Schedule: 2nd Wednesday of the month at 9:00 a.m. Meeting Location: Agency Board Room 13720 Butterfield Drive, Truckee, CA 96161 Date of Formation: November 17, 1971 Principal County: Placer County 16.2 Overview of Agency Although T-TSA’s Principal County is Placer County, the Agency also reaches constituents in El Dorado and Nevada Counties. Placer LAFCo is specified as the principal LAFCo in the T-TSA Act (California Water Code Appendix, Chapter 114, §114-21). Summary Description of Existing Services The Tahoe-Truckee Sanitation Agency (T-TSA or Agency) is the sole operator of the regional wastewater treatment facility serving Eastern Placer County and Eastern Nevada County. The T-TSA is a regional agency, located in Truckee, California, which was established to treat and dispose of wastewater generated in the area located between Truckee and Lake Tahoe. The T-TSA receives wastewater from its member districts at various locations along the Truckee River Interceptor (TRI) sewer line which runs from Tahoe City to the T-TSA Water Reclamation Plan east of the Town of Truckee (see Figure 16-1 – T-TSA Service Area Map). The T-TSA oversees conveyance, treatment and disposal of sewage and industrial waste within the Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-2 North Tahoe and Martis Valley MSR agency’s service area. As provided in the formation legislation, the member agencies include the following: • Truckee Sanitary District (TSD) • North Tahoe Public Utility District (NTPUD) • Squaw Valley Public Service District (SVPSD) • Alpine Springs County Water District (ASCWD) • Tahoe City Public Utility District (TCPUD) Northstar Community Services District (NCSD) is also served by T-TSA facilities through a contract with TSD for shared use of TSD’s collection system infrastructure in route to the T- TSA. Location and Size The T-TSA headquarters and Water Reclamation Plant (WRP) is located in the Martis Valley, east of the Town of Truckee, and its service areas covers portions of Nevada County and Placer County, as well as a small portion of El Dorado County. The Truckee River borders the WRP to the north and Martis Creek is located east of the facility. The geographic size of each of the five-member agencies is listed in Table 16-1 and the total encompassed by T-TSA is 58,375 acres. Formation The Porter Cologne Act (adopted in 1969) expanded the enforcement authority of the State Water Resources Control Board and the nine Regional Water Quality Control Boards (including the Lahontan Regional Water Quality Control Board, which oversees TTSA). The Act placed a moratorium on exports of sewage from the Tahoe Basin and required that all non-compliant treatment facilities be replaced (Placer LAFCO, 2004, pp. 4.2-53). As discussed above, the T- TSA was formed by a special act of the California Legislature known as the Tahoe-Truckee Sanitation Agency Act, which became effective in November 1971. This Act created the T-TSA for the conveyance treatment and disposal of sewage, industrial waste and storm water within the service area of the agency; prescribing its organization, powers, and duties; and repealed the North Lake Tahoe-Truckee River Sanitation Agency Act (Chapter 1503 of the Statues of 1967). Boundary History The legislation creating T-TSA recognizes two types of annexations; annexation of territory that has been annexed to a member district and annexation of territory not within a member district. Jurisdiction for the first type of annexation is retained by the TTSA, although in that case, the annexation to TTSA is automatic, and TTSA is only responsible for making the appropriate filings to complete the action. Annexation of territory not within a member district, such as the territory of the NCSD, would be subject to Placer County LAFCo’s review because Placer County is T-TSA’s principal county (Quad Knopff, 2003, pp. 2-2). Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-3 Truckee 1 T-TSA Water Nevada County Reclamation Plant Placer County 2 6 3 Kings Beach 4 5 Tahoe City 6 Legend 1 Truckee Sanitary District (TSD) Tahoe Pines 2 Northstar Community Services District 3 North Tahoe Public Utility District 4 Squaw Valley Public Service District 5 Alpine Springs County Water District 6 Tahoe City Public Utility District 15,500 7,750 0 15,500 Feet *Note: Northstar Community Services District territory is being a Scale 1:186,000 1in = 15,500ft Source: GIS Depot DRGs, Quad Knopf, Inc 2003. Figure 16-1 Tahoe - Truckee Sanitation Agency (T-TSA) Nevada County LAFCo Service Area Eastern County Wastewater MSR Drw. By: M.H. Plot Date: 6/24/2003 Job No.: 02524 North Tahoe and Martis Valley MSR Although a number of annexations have occurred in conjunction with annexations to member districts in Nevada and Placer Counties, no separate LAFCo actions were required (LAFCo files). LAFCo approved two annexations: in 1975, the T-TSA annexed the territory of the TSD (Bald Mountain Annexation); and in 1974, the T-TSA annexed the Alder Hill Annexation. The boundary for T-TSA is shown in Figure 16-2. Sphere of Influence No formal sphere of influence (SOI) for the T-TSA has been formally adopted by Placer LAFCo. However, the Agency noted that Placer LAFCo has deemed its SOI is the combination of the spheres of its member entities (T-TSA, 2013a, p. 4). Extra-territorial Services NCSD is served by way of a contract with TSD, one of T-TSA’s member entities. NCSD collects wastewater within its boundaries and transmits raw sewage through a section of the TSD collection system in route to the T-TSA WRP for treatment. The NCSD maintains a contract with TSD for use of their transmission lines. Although not directly a member, wastewater from NCSD is accepted into the T-TSA facilities through its contract with TSD. In 2016, the number of connections served by NCSD had increased to 138 commercial accounts and 1,789 residential services (personal communication, T-TSA, 2016). 16.2: ACCOUNTABILITY AND GOVERNANCE The T-TSA Board includes a representative from each of the five-member agencies listed above. The legislation provides for a membership of five entities with a total of four votes, with the TCPUD, TSD, and NTPUD each having one vote, and the ASCWD and SVPSD each having one-half vote. Of the four votes, two are from within the Tahoe Basin (TCPUD and NTPUD), and the other two votes are outside the Tahoe Basin (TSD, ASCWD and SVPSD). Membership can only be granted by an act of the State Legislature. The T-TSA Board Members are appointed to the Board by the elected Boards of Directors of its member entities for four-year terms. Board Members receive compensation of $100 per meeting which typically occurs once per month. The current Board of Directors is listed below: Board of Directors Dale Cox Squaw Valley Public Service District 2018-2022 S. Lane Lewis North Tahoe Public Utility District 2016-2020 Jon Northrop Alpine Springs County Water District 2016-2020 Dan Wilkins Tahoe City Public Utility District 2018-2022 Blake Tresan Truckee Sanitary District 2018-2022 The Board meets on the 2nd Wednesday of the month at 9:00 a.m. The meeting location is the Agency Board Room at 13720 Butterfield Drive, Truckee, CA 96161. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-5 89 NEVADA CO. 80 TTSA Wastewater Reclamation Plant Donner Lake 267 T r u c k e e R iv e r 28 89 PLACER CO. 89 Lake Tahoe Hell Hole Reservoir Rub ic o n Tahoe Truckee Sanitary Agency R ELDORADO iv Northstar Community Service District e r CO. District Boundaries from Placer County GIS, 0 1 2 Nevada County GIS, and Eldorado County GIS. Miles Figure 16-2 TAHOE TRUCKEE SANITATION AGENCY North Tahoe and Martis Valley MSR The Agency’s operations are led by a General Manager providing daily oversight and management of staff and resources. The Agency holds regularly scheduled meetings on the second Wednesday of each month, at 9:00 a.m. Agency staff indicates that all meetings are held in compliance with the Brown Act and all laws governing public meetings including public posting of notices and agendas. The Agency and its activities undergo public review procedures, including financial review by independent auditors. There are sufficient mechanisms in place to ensure that actions and operating procedures of the District are open and accessible to the public. The Agency maintains a website at www.ttsa.net where residents can obtain Agency news, Board meeting agendas, and other information. Customers can send their comments or complaints to the Agency office by mail, phone, or email. No complaints have been received in recent years (TTSA, personal communication, 2015). Member Agencies Formation and geographic information about each of the 5+1 member agencies are described in Table 16-1, below. Population data for these five districts (plus NCSD) is provided in Table 16-2 on page 16-10 of this MSR. Table 16-1: Member Agencies Formation and Geographic Information Name Year Enabling Legislation Size of Principal Counties Formed Boundary LAFCo Served Area in Acres Alpine Springs 1963 The County Water 3,779 Placer Placer County Water District Law: Water District Code §§ 30000- 33901 North Tahoe 1948 Public Utility District 4,112 Placer Placer Public Utility Act: Public Utilities District Code §§ 15501-18055 Squaw Valley 1964 The County Water 5,350 Placer Placer Public Service District Law: Water District Code §§ 30000-33901 Tahoe City 1938 The Public Utility 19,840 Placer Placer & El Public Utility District Act: Public Dorado District Utilities Code §§ 15501-- 18055 Truckee Sanitary 1906 Sanitary District Act 25,294 Nevada Nevada & District Placer Non-member Northstar 1991 The Community Services 1,9001 Placer Placer Community District Law: Services District Government Code §§ 61000-61934. Data Source: 2018 MSR on Lake Tahoe and the Martis Valley published by Placer LAFCo 1 In 2014, Placer LAFCo approved Resolution No. 2014-03 regarding the consolidation of water services between the Northstar CSD and the PCWA Zone 4. However, the area served by sewer service remains at 1,900 acres. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-7 North Tahoe and Martis Valley MSR 16.3: MANAGEMENT EFFICIENCIES AND STAFFING The Agency consists of a five-member Board of Directors who oversees the functions of the General Manager. The General Manager has full charge and control of the maintenance, operation and construction of the wastewater treatment systems of the Agency, with full power and authority to employ and discharge all employees and assistants, other than the Secretary to the Board, Treasurer, Attorney and Auditor, prescribes their duties and fixes their compensation. The General Manager performs such duties as may be imposed on him or her by the Board. For example, the General Manager prepares and submits to the Board plans, programs and budgets required to accomplish the goals and objectives of the Agency; prepares reports and financial statements and makes recommendations to the Board; responsible for solution of all problems related to maintenance, operation and construction of the treatment works; negotiates agreements for service and develops standard ordinances for regulation of the sewer system; acts as agency’s representative with respect to all services to be provided; transmits instructions, receives information, interprets and defines Agency policies and decisions (T-TSA, 2013a, p. 2). The Agency employs a total of 49 full-time employee equivalents (FTE), 36 of which work in wastewater service and 13 who work in administration and management. The District has five departments including maintenance, operations, administration, engineering, and information technology as shown in Figure 16-3. Board of Directors General Manager Information Maintenance Operations Administration Engineering Technology Figure 16-3: T-TSA Organizational Chart Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-8 North Tahoe and Martis Valley MSR 16.4: POPULATION AND GROWTH Existing Population Population characteristics throughout the Truckee-Tahoe Sanitation Agency (T-TSA) service area are substantially affected by seasonal variations, distinct user groups and the abundance of second homes. There are seasonal variations in demand for wastewater treatment services, due to the popularity of skiing and winter recreation in the area. The seasonal day user also creates a significant portion of peak demand on urban services, including wastewater collection and treatment. It is beyond the scope of this MSR to project seasonal populations; although we have provided rough estimates based upon studies that describe and characterize some of the seasonal population dynamics along with the visitor accommodations. The latter are reflective in equivalent dwelling unit connections that serve the tourism and hospitality industry. The population analysis contained in this wastewater municipal service review for T-TSA reflects the projections for service demand for each of the Agency’s member districts. T-TSA serves five-member districts as listed below: 1. Tahoe City Public Utility District (TCPUD) 2. North Tahoe Public Utility District (NTPUD) 3. Squaw Valley Public Service District (SVPSD) 4. Alpine Springs County Water District (ASCWD) 5. Truckee Sanitary District (TSD) In addition to the five districts listed above, wastewater from NCSD is treated at the T-TSA WRP through an agreement with the TSD. Placer LAFCo analyzed the existing and projected population in five of the districts (TCPUD, NTPUD, SVPSD, ASCWD, and NCSD) in its recently approved MSR for eastern Placer County. The population of TSD is analyzed in detail in Chapter 3 of this MSR document. The population in these 5+1 districts, when added together, yields the population served by T-TSA as of early 2015, as shown in Table 16-2, below. Based on the data shown in the Table 16-2, it is estimated that as of 2015 T-TSA’s boundaries encompassed a permanent population of 32,616 persons. The overnight visitor population during peak season is estimated at 62,811 persons as of the year 2015. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-9 North Tahoe and Martis Valley MSR Table 16-2: 2015 Population in 5+1 Districts Served by T-TSA District Served by T-TSA # of Wastewater Existing Estimated Connections Permanent Current Peak Population Visitor Population2 Alpine Springs County Water 653 191 1,5463 District North Tahoe Public Utility 5,524 5,4864 11,138 District Squaw Valley Public Service 1,0735 950 3,5006 District Tahoe City Public Utility 7,540 8,524 7 17,307 District Truckee Sanitary District 8 16,8389 17,32910 17,32011 Non-Member Northstar Community Services 182012 136 12,000 District Total served by T-TSA 33,448 32,616 62,811 Data Source: Placer LAFCo, 2018 MSR for Lake Tahoe and the Martis Valley Projected Growth and Development Projections for future development and hence increased service demands within the Martis Valley, North Lake, and Highway 89 Corridor areas comprising T-TSA’s service area are based on information provided in the 1994 Placer County General Plan and related area plans, 1996 Nevada County General Plan, 2003 Martis Valley Community Plan, 2025 Town of Truckee General Plan, Tahoe Regional Planning Agency documents and other sources. At the time when the Placer County portion of Martis Valley Community Plan was completed in 2003 and the 2 This column shows the # overnight visitors. (Day-use only visitors are not included.) 3 Overnight visitor population for ASCWD calculated from 653 units x 2.55 persons per household and 89% absentee owner unit rate. See Placer LAFCo’s 2018 MSR for Lake Tahoe and the Martis Valley Chapter 6 for details. 4 NTPUD has 6,519 housing units with an average of 2.55 persons per household. An estimated 16,623 total peak population resides within NTPUD boundaries. See Placer LAFCo’s 2018 MSR for Lake Tahoe and the Martis Valley Chapter 10 for details. 5 Data Source: T-TSA, personal communication. This includes 39 commercial connections. In 2016 the number of connections at SVPSD is approximately 1,082. 6 Please note that several thousand more visitors could be accommodated in hotel rooms located within the District. See Placer LAFCo’s 2018 MSR for Lake Tahoe and the Martis Valley Chapter 12 for additional details. 7 See Placer LAFCo’s 2018 MSR for Lake Tahoe and the Martis Valley Chapter 14 for details. 8 Nevada LAFCo is the primary agency over TSD and analysis of TSD is included in Chapter 3 this MSR. 9 See also: TSD website at: http://www.truckeesan.org/home/index.php?site_config_id=109&page _selection=2331&s_page= . This includes 14,435 residential and 1,876 commercial connections. 10 Calculated from 16211 persons in Town of Truckee per DOF data on website: <http://www.townoftruckee.com/departments/planning-division/growth-and-development/truckee-population- and-housing-estimates> plus 1686 persons in Martis Valley per 2010 census. 11 Peak visitor population is based on Chapter 3 of this MSR. Also, please note there are approximately 6692 vacation homes in Truckee plus 1729 vacation homes (not permanently occupied) in Martis Valley * 2.55 persons per household. 12 2015 data. In 2016, NCSD’s number of connections had grown to 1,831, which includes 1,767 residential accounts and 64 commercial accounts, per E. Martin, NCSD, Sept. 2016. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-10 North Tahoe and Martis Valley MSR Truckee 2025 General Plan was updated in 2006 (and updated in 2009), the area was in a phase of rapid growth and development, the recent economic downturn was unforeseen and, as a result, both plans have overestimated growth. It is important to note, however, that planned capacity for growth still remains. Population, growth and land-use for the Town of Truckee is described in more detail Chapter 3 of this MSR. Future population growth within the North Tahoe and Martis Valley region which T-TSA serves is dependent upon zoning and general plan policies and land-use designations in the region. Regional population and zoning/general plans are described in detail in Chapter 3 of this MSR. The Placer County General Plan which is largely applicable to the North Lake Tahoe Basin and Highway 89 corridor area was adopted in 1994. Each of the major communities in the Lake Tahoe area is also covered by area or community plans, which are being incorporated into the Proposed/Review Draft Tahoe Basin Area Plan, June 2015. The Placer County General Plan serves as an umbrella plan for the five sub-plans (see Table 16-3) including: 2003 Martis Valley Community Plan; Proposed/Review Draft Tahoe Basin Area Plan; 1983 Squaw Valley General Plan and Land Use Ordinance; Proposed Draft Village at Squaw Valley Specific Plan; and the Alpine Meadows General Plan. For the most part (not including Alpine Meadows and Squaw Valley planning area), the Tahoe Basin is under the oversight planning control of the Tahoe Regional Planning Agency (TRAPA). The following table provides an overview of the various land use planning documents applicable to the T-TSA service area and relevant to projections of future growth in the area. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-11 North Tahoe and Martis Valley MSR Table 16-3: Planning Documents Planning Document Jurisdiction Citation Year Adopted 2025 Truckee General Plan Town of (Truckee, 2006 Truckee 2006).13 Nevada County General Plan Nevada (Nevada County, 1996 (Updated 2014) (1996 with 2014 Land Use County 1996)14 Element and Housing Element, 5th Revision) 1994 Placer County General Plan Placer County (Placer County, 1994 (Updated 2013) (as updated May 21, 2013) 1994)15 • 2003 Martis Valley Placer County (Placer County, December 16, 2003 Community Plan16 2003)17 • Tahoe Basin Area Plan and Placer County (Placer County, Adopted by the Placer County Implementing Regulations 2015)18 Board of Supervisors on December 6, 2016 and by TRPA Governing Board on January 25, 2017 • 1983 Squaw Valley General Placer County (Placer County, 1983 Plan and Land Use Ordinance 1983) • Proposed Draft Village at Placer County (Squaw Valley Not yet Adopted. Draft on April Squaw Valley Specific Plan Real Estate, 2016 LLC, 2014) • Alpine Meadows General Plan Placer County (Placer County, 1968 1968)19 2012 Lake Tahoe Regional Plan TRPA (TRPA, 2012)20 2012 T-TSA Projected EDUs T-TSA reported the total equivalent dwelling unit connections (EDUS) to the regional waste water treatment plant from 2003 through 2012 as shown in Table 16-4 (next page). The projected EDU’s for the years 2017 to 2032 are based upon anticipated future population growth from the total growth in the 6-member agencies. The economic downturn from 2009 to 2011 may have resulted in pent up demand for development. For example, projected planned growth associated with the 2025 Town of Truckee General Plan has not occurred on pace with expectations, as described in Chapter 3 of this MSR document. The same can be said for Northstar-at-Tahoe, whose growth is expected approach buildout by 2034 (See Northstar CSD 13 Truckee General Plan: http://laserfiche.townoftruckee.com/Weblink/PDF/uloj2y45db1nasz14f00di45/19/ Town%20of%20Truckee%202025%20General%20Plan.pdf 14 Nevada County General Plan at: https://www.mynevadacounty.com/nc/cda/planning/Pages/Nevada-County-General-Plan.aspx 15 General Plan on County website at: http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/PCGP/PCGP2013.pdf 16 The urban core of Martis Valley is the Town of Truckee. Outlying areas will continue to support and be supported by the services found within the Town. The Nevada County portion of the 1975 plan area has not been updated, although the 2025 Town of Truckee General Plan covers their portion of the Martis Valley. 17 Martis Valley Comm Plan at: <http://www.placer.ca.gov/~/media/cdr/Planning /CommPlans/MartisValley/ MartisValleyCommPlanDec2003.pdf> 18 http://www.placer.ca.gov/departments/communitydevelopment/planning/tahoebasinareaplan 19 Alpine Meadows GP at: <http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/NTahoeCPs /AlpineMeadowsGeneralPlan.pdf> 20 LT Regional Plan, 2012 at: <http://www.trpa.org/regional-plan/> Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-12 North Tahoe and Martis Valley MSR MSR). Other resort communities (Tahoe City, Kings Beach, etc.) in the Lake Tahoe Basin are not expected to achieve a high level of growth. The projections in Table 16-4 reflect a more modest and conservative increasing growth curve through 2032. Table 16-4: T-TSA EDU Projections Projections 2003 2008 2012 2017 2022 2027 2032 EDUs 33,720 37,496 38,918 40,903 43,203 46,541 50,138 Percent change -- 11.1 3.8 5.1 5.6 6.9 7.7 Percent change per -- 2.2 .76 1.0 1.1 1.4 1.5 year Disadvantaged Unincorporated Communities Senate Bill (SB) 244, which became effective in January 2012, requires LAFCo to consider the presence of any Disadvantaged Unincorporated Communities (DUCs) when preparing an MSR that addresses agencies that provide water, wastewater or structural fire protection services. A DUC is an unincorporated geographic area with 12 or more registered voters with a median household income of 80 percent or less of the statewide median household income. According to the U.S. Census Bureau’s 2012-2016 American Community Survey 5-Year Estimates, California’s MHI is $63,783 for the year 2016, which qualifies any community with a MHI less than $51,026 as a DUC. Within the Agency’s service area in Placer County, the communities of Kings Beach, Carnelian Bay, and some neighborhoods within Tahoe City meet the states standard for DUCs of 80 percent of the state median family income. For additional information on DUCs in Placer County, please refer to the 2018 Placer LAFCo MSR for Lake Tahoe and the Martis Valley, Chapter 3. No public health and safety issues have been identified. 16.5: FINANCING This section evaluates the factors affecting the financing of operations and improvements for T-TSA. Information on Agency financing is derived from audited financial statements for the Fiscal Year 2011/2012, 2010/2011, 2013/2014, 2014/2015, and 2015/2016 as well as information provided by Agency staff. These statements represent the financial statements of the Agency and follow Government Accounting Standards Board (GASB) method of Accrual accounting which aims to improve financial reporting by state and local governments. GASB 68 specifically requires all public agencies to identify their unfunded pension liabilities. Based on recent recommendations from the Little Hoover Commission, this determination on the financial ability to provide services is based upon several key financial performance indicators that are shown in tables in the following pages. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2018. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-13 North Tahoe and Martis Valley MSR the newer financial statements and budgets published by the District on their website at: https://www.ttsa.net/ . In California, special districts are classified as enterprise or non-enterprise districts, based on their source of revenue:  Enterprise districts: Finance of district operations is via fees for public service. Under this model, the customers that consume goods or services such as drinking or sewer water, waste disposal, or electricity, pay a fee. Rates are set by a governing board and there is a nexus between the costs of providing services and the rates customers pay. Sometimes enterprise district may also receive property taxes which comprise a portion of their budget.  Non-enterprise districts: Districts which receive property taxes are typically classified as non-enterprise districts. Services that indirectly benefit the entire community, such as flood or fire protection, community centers, and cemetery districts are often funded through property taxes. T-TSA is predominantly an enterprise district, since only 17 percent of the revenue is derived from the property taxes. T-TSA’s multiple sources of revenue are detailed in Figure 16- 4, below. Budgets are adopted in public meetings on an annual basis. Financial Policies & Transparency The Agency prepares and approves an annual budget, along with a five-year capital improvement plan. Budget status updates are presented to the Board of Directors on a regular basis. The fiscal year begins on July 1 and ends on June 30. The Agency’s budgets and annual Financial Statements Supplementary Information and Independent Auditor’s Report for the two most recent years are available to the public via the District’s website. Older budgets and annual Financial Statements (AFS’) are available upon request to District staff. A summary of the 21 significant accounting policies is provided in the Agency’s annual AFS. One notable policy is the Board-Designated Net Position policy whereby the Agency has designated a portion of the unrestricted net position for major plan Replacement Reserve in order to provide funds for future replacement of the treatment plant and equipment. Excess resources from operations are transferred into the reserve each year. The designated balances as of June 30,2016 and 2015 were $11,676,353 and $10,618,319, respectively. Table 16- 5: Summary of T-TSA Financial Policies & Transparency Indicators Indicator Score Notes Summary financial information presented √ The annual AFS and budget in a standard format and simple language. clearly and transparently present financial information District has a published policy for reserve √ T-TSA’s policy on Board- funds, including the size and purpose of Designated Net Position reserves and how they are invested describes reserve policy. Other financing policies are clearly √ 21 accounting policies are articulated listed in the 2016 AFS – Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-14 North Tahoe and Martis Valley MSR Compensation reports and financial 0 Insufficient data. Consultants transaction reports that are required to be did not find compensation submitted to the State Controller's Office reports on T-TSA’s website. are posted to the district website Key to score: √= Above average (compared to similar sewer districts) ∆= Average 0= Below average Revenues and Expenses T-TSA has two basic types of revenue: Operating revenues consist primarily of charges for services. Non-operating revenues and expenses are related to financing and investing type activities. Specific sources of revenue for T-TSA include service charges, other charges, property taxes, interest earned, in-lieu taxes, aid agencies, other income, and contributions & fees. The largest source of revenue is service charges paid by T-TSA customers directly for wastewater treatment and disposal service. Businesses and homeowners pay a sewer fee to their local collection District and pay a fee directly to T-TSA (bi-annually) for sewage treatment. When a new building is constructed, connection fees are paid to both the local collection district and to T-TSA to support the collection, conveyance, and treatment infrastructure. In a sense, customers pay a portion of the sewer costs to two agencies, rather than paying one agency a larger amount for all sewer service. The Agency also relies on property tax revenue, classified as non-operating revenue, to fund 17 percent of its general and administrative operating expenses. T-TSA also relies on connection fee income for funding capital improvements and expansion projects. Service charges cover the cost of maintenance and operations. The annual Financial Figure 16-4: Sources of Revenue Statement and FY 15/16 Independent Auditor’s Report 0% 0% 1% for fiscal years 1% 9% ending June 30, Service Charges 2012 and 2011 Other charges determined that the Agency 17% Property Taxes demonstrated a Interest Earned favorable In-Lieu Taxes variance in 1% Aid Agencies 71% service charge Other Income revenue and Contributions & Fees property tax revenue meaning Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-15 North Tahoe and Martis Valley MSR that these revenues were higher than expected. The favorable variance in property tax revenue is due to a conservative approach to budget estimates in the uncertain climate of California property tax allocation. Specifically, in FY 11/12, the actual Operations and Maintenance and Administrative and General Expenses were less than the budgeted amount because of a combination of vacant employee positions; experiencing some long unpaid employee absences due to injury or illness; obtaining competitive bids for maintenance and operations projects that were less than anticipated; postponing some capital projects that were budgeted into the following budget year; and receiving more favorable utility rates than were projected by the utility company at the time the budget was prepared as shown in Table 16-6, below (Damore, Hamric & Schneider, Inc., 2012, p. 8). For both of these fiscal years, operating expenditures exceeded revenues. Table 16-6: Statement of Revenues, Expenses and Changes in Net Assets, fiscal years 2011/2012 and 2010/2011 (Actual Audited) Fiscal Year 2010/2011 2011/2012 Revenues Property Taxes $2,212,915 $2,177,609 Service Charges 11,934,529 12,067,555 Other Services 331,936 300,661 Connection Fees 906,450 1,403,875 Interest Earned 241,866 185,732 In-Lieu Taxes 386,689 395,110 Aid from other Governmental 23,754 24,001 Agencies Other Income 300 375 Total Revenues $16,038,439 $16,554,918 Expenditures Operations & Maintenance $11,842,309 $11,649,682 Administrative & General 1,188,341 1,271,706 Interest Expense 1,166,078 1,111,961 Depreciation 3,001,788 3,022,715 Total Expenditures $17,198,516 $17,056,064 Change in Net Position $(1,160,077) $(501,146) Beginning Net Position 98,964,330 97,804,253 Ending Net Position $97,804,253 $97,303,107 Source: T-TSA Independent Auditor’s Report, June 30, 2012 and 2011; pg. 11. Revenue for FY 15/16 was over $17 million. Data on the sources of revenue for FY 13/14, 14/15 and 15/16 is shown in Table 16-7 (next page). Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-16 North Tahoe and Martis Valley MSR Table 16-7: Statements of Revenues, Expenses and Changes in Net Position for Fiscal Years Ended June 30, 2014, 2015, and 2016 (Actual Audited) Fiscal Years Revenues 2013/2014 FY 2014/2015 FY 2015/2016 Property Taxes $2,324,977 $2,497,457 $2,935,461 Service Charges $12,189,791 $12,247,486 $12,328,555 Other services $237,046 $67,177 $147,705 Connection Fees $1,639,117 $1,791,569 $1,567,620 Interest Earned $120,047 $128,960 $217,742 In-Lieu Taxes $418,489 $229,168 $228,271 Aid from other Governmental Agencies $26,120 $24,083 $25,851 Other Income $48,193 $46,135 $60,150 Total Revenue $17,003,780 $17,032,035 $17,511,355 Expenditures Operations & Maintenance $10,042,129 $9,795,687 $11,849,464 Administrative & General $1,455,547 $1,470,909 $1,639,732 Interest Expense $999,470 $941,021 $881,052 Depreciation $3,002,702 $3,004,800 $2,965,086 Total Operating Expenses $14,500,378 $15,212,417 $17,335,334 Change in Net Position $1,503,932 -$1,819,618 $176,021 Prior Period Adjustment per Implementation of GASB 68 $10,455,626 Beginning of Year after Restatement - Net Position $98,222,286 $89,270,592 $91,090,210 End of Year Net Position $99,726,218 $91,090,210 $91,266,231 Expenses In 2016, T-TSA expended $17 million to run the wastewater operation and this was the highest level of expenditure obtained within the five-year study period as shown In Tables 16-6 and 16- 7, above. This increase was due to the increases in expense categories called Operations & Maintenance and Administrative & General. Overall, District funds are expended to support the Agency’s service operations & maintenance, administrative & general expenses, interest expense, and depreciation costs. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-17 North Tahoe and Martis Valley MSR A comparison of annual total revenue to total expenses, as provided in Figure 16- 5 below, shows that annual expenses exceeded revenues in $14,000,000 only of the two of the five years studied $12,000,000 (i.e. 10/11 and $10,000,000 11/12). Expenses $8,000,000 associated with capital improvement $6,000,000 projects contributed $4,000,000 to the expenditure $2,000,000 totals during these years and $0 contributions from 10/11 11/12 13/14 14/15 15/16 the capital fund, dedicated connection fees and other funds were used to offset the difference. Capital improvement projects are described on page 16-23. Having sufficient reserve funds is important to T-TSA to help it fund capital improvement projects and to help it weather the economically lean years. Per connection expenditures amounted to $611 per sewer connection, on average, in 2016. Per acre expenditures averaged to $297 per acre in 2016. Table 16-8 below shows the summary scores revenues, expenditures, and net position. Table 16-8: Summary of Indicators Revenues, Expenditures, and Net Position Indicator Score Notes Revenues exceed expenditures ∆ Total revenue was more than the operating in 50% of studied fiscal years expenditures in three of the five study years. Capital contributions were used to offset the difference. It is recognized that capital improvement projects are expensive and necessary. Many wastewater districts in California are in a similar situation. Increases or decreases in net ∆ Changes to the Net Position are shown in Tables 16-6 position and 16-7 above, to be highly variable. However, the decline in Net Position of -$1.8 million in FY2015 was predominately due to Period Adjustment per Implementation of GASB 68 as described21 in the Notes of T-TSA’s AFS 2016. This situation is typical of many wastewater districts in California. Key to score: √= Above average (compared to similar sewer districts) ∆= Average 0= Below average 21 GASB 68 requires all public agencies to identify their unfunded pension liabilities. See also page 5-16 for additional information on GASB. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-18 $ SU Figure 16- 5 : Comparison of Revenue to Expenditure s $20,000,000 $18,000,000 $16,000,000 Total Revenue Total Operating Expenses Fiscal Year North Tahoe and Martis Valley MSR Agency/District Assets and Liabilities Table 16-9 summarizes activities leading to a decrease of net assets by one percent. The 12 percent increase for the category “Restricted for State Loan” in FY 11/12 was the result of compliance with the State Water Resources Control Board loan agreement, which required T- TSA to increase the balance in the State Revolving Fund Wastewater Capital Reserve account annually by 0.5 percent of the original $53,154,954 loan amount (Damore, Hamric & Schneider, Inc., 2012, p. 6). Table 16-9: Statement of Net Assets, FY 11/12 and 10/11 Fiscal Year Ending Percent Assets and Liabilities June 30, 2012 June 30, 2011 change Assets Current Assets $ 17,820,382 $17,140,997 4% Restricted Assets 28,164,354 29,378,973 -4% Capital Assets 95,608,761 97,774,417 -2% Total Assets $141,593,497 $144,294,387 -2% Liabilities Current Liabilities -4% Unrestricted $1,488,215 $1,557,403 Current Liabilities Restricted 2,887,888 2,864,715 1% Long Term Liabilities 39,914,287 42,068,016 -5% Total Liabilities $44,290,390 $46,490,134 -5% Net Assets Investment in Capital Assets $53,540,745 $53,607,250 0% Restricted for Wastewater -6% Capital Reserve $24,830,372 $26,288,557 Restricted for State Loan 2,599,823 2,324,852 12% Unrestricted 16,332,167 15,583,594 5% Total Net Assets $97,303,107 $97,804,253 -1% Source: T-TSA Independent Auditor’s Report, June 30, 2012 and 2011; pg. 6. T-TSA ended the 2016 fiscal year with $91 million in total net assets as shown in Table 16-10, below. This is a decrease of approximately $6 million in net assets from fiscal year 2012. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-19 North Tahoe and Martis Valley MSR Table 16-10: Statement of Net Assets, FY 15/16 and 14/15 Fiscal Year Ending Assets and Liabilities Percent 6/30/2016 6/30/2015 Change Assets Current Assets $25,196,248 $22,479,430 12% Restricted Assets $24,827,832 $25,780,294 -4% Net Capital Assets $88,472,281 $90,744,098 -3% Deferred Pension Outflows (Note 7) $587,605 $599,448 -2% Total Assets $139,083,966 $139,603,270 0% Liabilities Current Liabilities Unrestricted $1,464,477 $1,542,693 -5% Current Liabilities Restricted $2,985,583 $2,941,244 2% Long Term Liabilities $41,402,669 $41,283,029 0% Deferred Pension Inflows (Note 7) $1,965,006 $2,746,094 -28% Total Liabilities $47,817,735 $48,513,060 -1% Net Assets Net Investment in Capital Assets $55,361,024 $55,306,716 0% Restricted for Wastewater Capital Reserve $21,330,508 $21,746,415 -2% Restricted for State Loan $2,898,346 $3,418,760 -15% Unrestricted $11,676,353 $10,618,319 10% Total Net Assets $91,266,231 $91,090,210 0% Long Term Debt and Investments The T-TSA entered into a State Revolving Fund (SRF) loan with the California State Water Resources Control Board on February 24, 2004 to provide financing for the plant capacity expansion. Over the course of the project, the Agency borrowed $50.1 million, which it will repay over 20 years at an annual payment of approximately $3.2 million (Damore, Hamric & Schneider, Inc., 2012, p. 5). The SRF loan the Agency received has a fixed 2.6 percent rate, which consists of 1.6 percent in interest and a 1 percent service charge (Damore, Hamric & Schneider, Inc., 2012, p. 8). The Agency had debt of $33,111,257 and $35,437,382 as of June 30, 2016 and 2015 respectively. The current (2016) portion of this long-term debt ($3 million) is listed correctly as a liability (T-TSA, 2017). Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-20 North Tahoe and Martis Valley MSR Capital Improvement Plan, Asset Maintenance and Replacement The T-TSA reviews capital improvement needs annually and it projects improvements needed over a 5-year time frame. In 2012, the Agency’s Upgrade and Rehab Fund identified a total of $9,210,917 in maintenance and update projects. For FY 2013/2014, the Agency proposed improvements and repairs in the amount of $1,822,755 for rehabilitation projects and $2,915,257 in capital outlay projects (T-TSA, 2013b). As of 2016, the Agency had $21 million in its restricted waste water capital reserve fund with which to make capital improvements (T- TSA, 2017a). Rate Restructuring The Independent Auditors Report determined that the T-TSA sets adequate levels of rates and charges which have resulted in the Agency’s ability to operate and maintain the plant and to service the debt requirements of the State of California State Revolving Fund Loan for the portions of the Expansion Project, which benefit current users (Damore, Hamric & Schneider, Inc., 2012, p. 8) and (T-TSA, 2017a). At their January 2018 meeting, the T-TSA Board agree to fund a connection fee study to assess current fees and connection classifications. The study will be prepared by HDR Engineering Consultants at a cost of $19,975. Table 16-11: Summary of Rate Indicators TSD Rate Indicator Score Notes Rates were adopted by the Board of 0 Insufficient Data Directors Rates are consistent with requirements of 0 Insufficient Data the State Water Resources Control Board and the process for adopting rates are consistent with Proposition 218 Rates are readily available to constituents 0 Insufficient Data Key to score: √= Above average (compared to similar sewer districts) ∆= Average 0= Below average Cost Avoidance The T-TSA routinely seeks ways in which to reduce overhead and operational costs. T-TSA has reduced staffing through reorganization of duties as employees have retired and some vacancies have not been filled. Plant operations have been automated through use of Programmable Logic Controllers (PLCs) and SCADA programming. Additionally, some plant processes have been changed to lower the demand for purchase of chemicals. T-TSA also takes advantage of pooled insurance as a cost savings measure and is a member of the California Sanitation Risk Management Authority for insurance and workers’ compensation coverage (T-TSA, 2013a, pp. 4, 12). Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-21 North Tahoe and Martis Valley MSR Contract Services The T-TSA utilizes a competitive bid process for projects. Technology/Management T-TSA utilizes industry standard technologies and constantly evaluates technological advancements and operation improvements available in the industry (T-TSA, 2013a, p. 11). 16.6: OPPORTUNITIES FOR SHARED FACILITIES Shared Facilities & Regional Cooperation LAFCos describe shared facilities and regional cooperation in municipal service reviews because it is thought that a local government agency’s ability to partner with another entity, public or private, in order to accomplish the same level of public service, while splitting the costs to deliver the service will provide an efficiency of service. Ideally, a sharing or cooperative arrangement would yield the same public service at less cost, and with less resources required from a community to pay for those results. Another aim of LAFCo is to avoid the duplication of service. T-TSA’s activities related to shared facilities and regional cooperation are described in the following paragraphs. The relationship between T-TSA and its five-member agencies (plus Northstar CSD) represents a high level of regional cooperation. This functioning relationship demonstrates T-TSA’s ability to partner with its member agencies in order to accomplish a high level of public service, while splitting the costs to deliver the wastewater treatment and disposal service. The partnership yields efficiency of service, providing public service on a regional basis at less cost, compared to what would be needed if each of the five-member agencies operated their own separate treatment plant. The existing agreements avoid a duplication of service. The 2013 Sphere of Influence Update for the Truckee Sanitary District acknowledged that opportunities to share wastewater infrastructure between TSD and T-TSA are limited due to the distinct functions of the District and the Agency. However, it recommended that the T- TSA and its member agencies explore opportunities to share personnel, facilities, and other cost-sharing arrangements including sharing corporation yards, specialized equipment, and office space. This recommendation from the 2013 SOI Update remains relevant. T-TSA participates in the Tahoe Truckee Area Emergency Contingency Plan, which provides a framework for assistance to all public utility, improvement and county water districts within the Tahoe-Truckee area in times of emergency or natural disasters affecting the services provided (T-TSA, 2013a, p. 4). Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-22 North Tahoe and Martis Valley MSR T-TSA along with several of its member agencies have formed a Joint Powers Authority through a Joint Exercise of Powers Agreement, which is known as the California Sanitation Risk Management Authority. The Authority is organized under Government Code Section 6500 as a separate and distinct public entity and is governed by a Board comprised of one member appointed by the governing body of each party to the agreement. The governing board appoints its own management and approves its own budget (T-TSA, 2017). This authority helps participants to share the cost of risk management. Effective January 1, 2017, Government Code §6503.6 and §6503.8 require LAFCo to be a repository for all Joint Powers Authority Agreements (JPA) within a county for the purpose of providing municipal services. 16.7: WASTEWATER SERVICES Service Overview T-TSA provides regional wastewater conveyance, treatment and disposal services within its service area. Approximately 20 percent of the Agency’s services are to commercial customers; there are currently no industrial customers. Over 2,000 residences located within the service area are believed to not be currently connected to TTSA facilities (DWR, 2016). T-TSA’s WRP is subject to permits issued by the Lahontan Regional Water Quality Control Board (Lahontan RWQCB). A Waste Discharge Requirements (WDR) Order No. R6T-2002-0030, signed April 9, 2002, allows the effluent from the plant to be disposed of in a subsurface effluent disposal field. The Lahontan RWQCB specifies waste discharge requirements and regulates the waste discharged into the leach field and the Truckee River. The Lahontan RWQCB also has effluent requirements for the plant. Conveyance T-TSA provides regional conveyance of wastewater in the Tahoe region and owns and maintains the Truckee River Interceptor (TRI), a main trunk line for raw sewage conveyance (Figure 16- 6, TRI Map). The 19-mile long TRI pipeline runs along the Truckee River corridor between Tahoe City and the Water Reclamation Plan (WRP) in Truckee. The interceptor flows exclusively by gravity and varies in size from 24-42 inches in diameter. The TRI conveys all of the untreated, raw sewage collected from the northern and western shores of Lake Tahoe, as well as from the communities at Alpine Meadows and Squaw Valley. Collection within the member districts is handled by the respective districts. Additionally, as previously described, NCSD is also served by the T-TSA via conveyance (?) agreement between the NSCD and TSD (Placer County, 2013, pp. 14-18). Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-23 North Tahoe and Martis Valley MSR The T-TSA’s 2009/2013. Sewer System Management Plan details the Agency’s maintenance and inspection protocols for its conveyance infrastructure, including the TRI. Close-circuit television (CCTV) or digital scanning inspection work is performed on each reach of the TRI at a frequency of at least every four years. Findings from CCTV or digital scanning inspection work may indicate that root intrusion, sediment accumulation, corrosion, or other defects have occurred on a particular reach. Additionally, annual field inspections at manhole sites occur in the spring and fall of each year. For the spring inspections, the goal is to determine whether the sites are accessible and whether erosion or landslides are potentially affecting the integrity of the pipeline (T-TSA, 2009/2013, pp. 4-2). In general, the TRI is considered to be in relatively good condition based on findings from inspections and its age. CCTV or digital scanning inspection activities performed to date have revealed that, overall, the system has had very few problems. In addition, compared to many other systems throughout the country, the TRI is considered a relatively young sewage system, with the bulk of the piping installed in the late 1970s (T-TSA, 2009/2013, pp. 4-3). The most significant project after the initial construction activities was the installation of a parallel TRI pipeline from the emergency storage ponds to the treatment facility (T-TSA, 2009/2013, pp. 5- 1). Treatment System The WRP provides tertiary level treatment, which consists of influent screening, grit removal, primary sedimentation, pure oxygen activated sludge, biological phosphorus removal, chemical treatment, mixed media filtration, biological nutrient removal, ion exchange ammonia removal, and final chlorination. Organic sludge is digested anaerobically, dewatered and transported to a landfill or used as a solid amendment. The T-TSA completed its wastewater treatment facility expansion in 2008, which increased capacity sufficiently to serve the region through 2025 (Nevada LAFCo, 2013, p. 4). The resultant expansion project was designed to increase overall plant capacity to 9.6 MGD. The primary and secondary treatment processes were expanded and a biological nitrogen removal (BNR) system was constructed to replace an existing physical-chemical process. In addition, a new method of dewatering biosolids was implemented. The facility was formally commissioned in 2008 at a total program cost of nearly $75 million, with a constructed value of $54 million. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-24 North Tahoe and Martis Valley MSR Waste activated sludge is pumped to an organic sludge thickener for thickening before being fed to the anaerobic digesters. The digesters serve to stabilize the material for dewatering and disposal. Methane gas, a byproduct of the digester process, is drawn off and stored to supply a series of boilers which furnish facility and process heat. Once stabilized, the sludge is put through centrifuges for dewatering. The dewatered solids are then discharged to a conveyor system for Aerial photo of T-TSA Wastewater Reclamation Plant transfer to storage hoppers. Both inorganic and organic sludges are generated at the water reclamation plant. Inorganic sludges are hauled to the Lockwood Landfill, east of Reno/Sparks. Organic sludges are hauled to agricultural operations in Nevada for use as a soil amendment (T-TSA, pp. 18-19). The daily average treatment plant influent flow for October 2017 was 3.18 MG. The maximum instantaneous flow rate was 5.49 MG (T-TSA, 2017b). Although the plant expansion was originally sized to meet demand through 2015, due to the slower than expected rate of population growth, those projections have been extended to 2020 or 2025 depending on actual growth. The Agency indicated that the plant capacity available is expected to meet the needs of its members, including any annexations to the member districts and T-TSA during that timeframe. Disposal Effluent is disposed of in a subsurface effluent disposal field; solids are hauled to the Lockwood Facility and Bently Farm in Nevada (T-TSA, 2013a, p. 6). The Agency utilizes a soil aquifer treatment system, with an underground disposal system which allows plant effluent to percolate into the permeable glacial outwash soil in Martis Valley (T-TSA Brochure, p. 6). The discharge field is located about 1/3 mi. southwest of the wastewater treatment facilities. This disposal practice departs from the typical practice of discharging plant effluents directly into receiving water bodies. Instead, the facility discharges to the Martis Valley Groundwater Basin, which eventually migrates toward the Truckee River and Martis Creek, both of which are within a half mile of the disposal site (Lahontan RWQCB, 2002, p. 4). High rate subsurface effluent disposal is possible because of the highly permeable glacial outwash materials that overlay the older, much less permeable materials of the Truckee Formation. The disposal system consists of 78,000 feet of underground perforated piping (T-TSA, p. 3). Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-25 North Tahoe and Martis Valley MSR Wastewater that is applied to land within the Martis Valley does contribute to groundwater recharge of the Martis Valley basin, up to 9.6 million gallons per day (mgd) 7-day average (Quad Knopf, Inc. 2003). The disposal system includes approximately 78,000 feet of underground perforated piping (T-TSA webpage, 2018). Capacity T-TSA served approximately 28,361 connections in 2014- 2015. This increased to 28,655 connections in the year 2016. The plant has a treatment capacity of 9.6 million gallons per day (mgd) for a maximum of a week, or 8.3 mgd for a maximum of a month. The average annual flow volume is 4.0 mgd22. Peak instantaneous flow capacity is 15.4 mgd (T-TSA 2012 Brochure, p. 7). The Agency anticipates that future demand for services will increase at a rate of approximately one percent per year (T-TSA, 2013a, p. 7). Infrastructure Needs and Deficiencies Future improvement needs have been identified to address future capacity deficiencies along the TRI, which runs directly adjacent to the environmentally-sensitive Truckee River. These improvements were identified in the planning and environmental review phases of the most recent plant expansion project, but were characterized as Phase II work to be completed in the future. The proposed improvements would reduce the likelihood of accidental releases of raw sewage into the Truckee River during extreme flow events, floods, environmental catastrophes, and other types of emergencies. Additional information is provided in the Capital Improvement Plan section of this MSR. 22 Peak flow in 2012 was 8.67 mgd (T-TSA, 2013a). Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-26 Source:NevadaCounty,QuadKnopf,Inc2003. Figure 16-6 Wastewater Collection NevadaCountyLAFCo EasternCounty WastewaterMSR Drw.By:M.H. PlotDate:7/01/2003 JobNo.:02524 North Tahoe and Martis Valley MSR Water Quality Database Reports Overview This section provides the results of database searches on water quality for the T-TSA. Compliance of wastewater agencies with water quality regulations promulgated by the State Water Resources Control Board (State Water Board) and the Lahontan Regional Water Quality Control Board (Regional Water Board) is important to LAFCo. Although T-TSA applies the treated wastewater to dry land, the watershed is dynamic and there is a remote possibility that constituents could reach underground or above ground aquatic systems; hence the need for a permit. California Integrated Water Quality System Project The California Integrated Water Quality System23 (CIWQS) is a relational database used by the State and Regional Water Boards to track information about permit violations and enforcement activities. T-TSA has permits from the Lahontan Regional Water Quality Control Board and is therefore classified as a “Permittee.” Permittees are allowed to self-report their own permit violations to the CIWQS. A four-year term from January 1, 2013 to December 31, 2017, was queried in the CIWQS database. The results of the database query show that T-TSA had one recorded regular water quality violation/enforcement actions during this timeframe. The minor violation occurred in October 2017 when the pH level in groundwater near T-TSA’s disposal field had a low pH. Specifically, the groundwater in monitoring well #31 on October 25, 2017 had a pH of 6.4 and the requirement is to have a pH between a range of 6.5-8.5. The discharge from the plant was in the acceptable range. Corrective measures were immediately taken and this situation is now resolved (WRCB, 2017a). Sanitary Sewer Overflow Database The State Water Board maintains a database of Sanitary Sewer Overflows (SSO) from public/permitted systems and private lateral sewage discharges. This database is a specific module in the CIWQS. The State Water Board formalized the Statewide General Waste Discharge Requirements for Sanitary Sewer Systems, Water Quality Order No. 2006-0003 (SSS WDRs), on May 2, 2006. All public agencies that own or operate a sanitary sewer system that is comprised of more than one mile of sewer pipes which convey wastewater to a publicly owned treatment facility must be covered under the SSS Waste Discharge Requirements. The SSS Waste Discharge Requirements requires enrollees, among other things, to maintain compliance with the Monitoring and Reporting Program. A four-year term from January 1, 2013 to December 31, 2017, was queried in the CIWQS-SSO database. The results of the database queries regarding T- TSA show that no sanitary overflow events were reported. The database also shows that the state conducts annual inspections of T-TSA facilities. T-TSA passed each inspection; however, one inspection did require a follow-up in 2007 (WRCB, 2017b). 23 CIWQS website is at: https://www.waterboards.ca.gov/ciwqs/ Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-28 North Tahoe and Martis Valley MSR 16.8: CHALLENGES No challenges were identified by the T-TSA during the preparation of the 2018 Placer LAFCo MSR for Lake Tahoe and the Martis Valley. However, in general wastewater dischargers are challenged by continuously restrictive discharge requirements imposed by the State RWQCB to protect water quality. Because the T-TSA WRP was recently upgraded, it is current with its discharge permit requirements. 16.9: SERVICE ADEQUACY The Agency provides excellent public service to its member districts. The Agency has received two honors in recent years: the California Water Environment Association Sierra Section Plant of the Year Award for 5-20 mgd Plant and the California Sanitation Risk Management Authority Workers’ Compensation Excellence Award in the Large Agency Category for 2010-2011 and 2011- 2012 (T-TSA, 2013a). 16.10: Determinations Based on the information included in this report, the following written determinations make statements involving the service factors the Commission must consider as part of a municipal service review. The Commission’s final MSR determinations will be part of a Resolution which the Commission formally adopts during a public meeting. Population and Growth 1. The Tahoe Truckee Sanitation Agency (T-TSA) served a permanent residential population of 32,616 persons as of 2014-2015. The estimated peak population served was 95,472 persons (this includes the 32,616 permanent residents plus a visitor population of 62,811 persons.) 2. The growth rate within the Agency service area is approximately two percent in the Truckee and Squaw Valley areas and less than one percent in the North Tahoe special district areas. 3. While there is planned growth that has been a part of the various planning programs for many years, there are no projections, projects or plan updates on the horizon that would suggest that growth will exceed those levels reflected in the respective lead agency planning documents. Disadvantaged Unincorporated Communities 4. Within the Agency’s Placer County service area (NTPUD and TCPUD), the communities of Kings Beach, Carnelian Bay, and some neighborhoods within Tahoe City meet the states standard for DUCs of 80 percent of the state median family income based on data Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-29 North Tahoe and Martis Valley MSR from the US Census. All DUC areas receive adequate water, wastewater, and fire protection services. No public health and safety issues have been identified. Present and Planned Capacity of Public Facilities 5. The wastewater treatment plant has a treatment capacity of 9.6 million gallons per day (mgd) for a maximum of a week, or 8.3 mgd for a maximum of a month. The average annual flow volume is 4.0 mgd. Peak instantaneous flow capacity is 15.4 mgd (T-TSA 2012 Brochure, p. 7). The Agency anticipates that future demand for services will increase at a rate of approximately one percent per year. 6. According to current projections, the T-TSA has adequate capacity to serve its member districts. Analysis for pending development projects will assess the need for additional facility and infrastructure that may be required to support added demand. Financial Ability of Agency/District to Provide Services 7. The Agency has sufficient financing mechanisms in place to ensure short- and long-term provision of services within its current service area. 8. T-TSA’s s annual AFS and budget clearly and transparently presents financial information. T-TSA’s policy on Board-Designated Net Position describes its reserve policy. T-TSA identifies 21 accounting policies in its 2016 AFS. 9. Compensation reports and financial transaction reports should be posted T-TSA’s website so they can be readily accessible by the general public. 10. The Agency’s total revenue was more than the operating expenditures in two of the five study years (FYE 2011 and FYE 2012). The difference between revenues and expenditures can be attributed to capital contributions used for projects. It is recognized that capital improvement projects are expensive and necessary. Many wastewater districts in California are in a similar situation. 11. Over the past several years, changes to the District’s Net Position have been highly variable. The decline in Net Position of -$1.8 million in FY2015 was predominately due to Period Adjustment per Implementation of GASB 68 as described in the Notes of T- TSA’s AFS 2016. This situation is typical of many wastewater districts in California. Status and Opportunities for Shared Facilities 12. The T-TSA is a shared regional facility that transmits and treats raw sewage from special districts within the North Tahoe and Truckee region. 13. The 2013 Sphere of Influence Update for the Truckee Sanitary District acknowledged that opportunities to share wastewater infrastructure between TSD and T-TSA are limited due to the distinct functions of the District and the Agency. However, it recommended that the T-TSA and its member agencies explore opportunities to share personnel, facilities, and other cost-sharing arrangements including sharing corporation Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-30 North Tahoe and Martis Valley MSR yards, specialized equipment, and office space. This recommendation from the 2013 SOI Update remains relevant. 14. T-TSA along with several of its member agencies have formed a Joint Powers Authority through a Joint Exercise of Powers Agreement, which is known as the California Sanitation Risk Management Authority. The Authority is organized under Government Code Section 6500 as a separate and distinct public entity and is governed by a Board comprised of one member appointed by the governing body of each party to the agreement. The governing board appoints its own management and approves its own budget (T-TSA, 2017). This authority helps participants to share the cost of risk management. 15. No other opportunities for shared facilities were identified by the Agency or during the preparation of this MSR. Accountability for Community Service Needs, Including Governmental Structure and Operation Efficiencies. 16. An appointed five-member Board oversees the management of the Agency’s resources. T-TSA meets its statutory financial reporting requirements that ensure its operations are conducted in an open and transparent manner. T-TSA meets its fiscal accountability requirement to its customers through budgetary and financial reporting. The Agency provides public notice of meetings, and posts agendas online as well as by email upon request. 17. A General Manager oversees the Agency administration and operations under the direction of the appointed Board. The Board and management work together in the identification of goals and issues and assignment of staff as appropriate for each type of service provided. 18. No formal sphere of influence (SOI) for the T-TSA has ever been adopted by Placer LAFCO, which is the principal county LAFCO. However, the Agency noted that Placer LAFCO has deemed its SOI is the combination of the spheres of its member entities. Placer LAFCO should consider formally adopting an SOI for the Agency or periodically review its informal SOI for adequacy. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-31 North Tahoe and Martis Valley MSR 16.11: References California Department of Water Resources (DWR). 2016. Annual Inventory of Water Use Lake Tahoe & Truckee River Basins Calendar Year 2016. 62-pages. Retrieved from <http://troa.net/reports/troa_annual_reports/2016/reports/California%202016%20An nual%20Inventory%20of%20Water%20Use%20-%20Tahoe-Truckee%20Basins.pdf >. California Department of Water Resources (DWR). 2018. Web page entitled Disadvantage Communities Mapping Tool. Retrieved from <https://gis.water.ca.gov/app/dacs/> on January 15, 2018. California, State of. Water Resources Control Board (WRCB). Facility At-A-Glance Report from the California Integrated Water Quality System. Database downloaded on December 20, 2017. Available on-line at: <https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/CiwqsReportServlet?inCommand= drilldown&reportName=facilityAtAGlance&placeID=262840&reportID=2930471 >. California, State of. Water Resources Control Board (WRCB). Operational Report from the California Integrated Water Quality System - SSO module. Database downloaded on December 10, 2017. Available on-line at: https://www.waterboards.ca.gov/ciwqs/chc_sso.shtml . Damore, Hamric & Schneider, Inc. 2012. T-TSA Independent Auditor's Report FY 2011/2012 and 2010/2011. Dean Runyan Associates, 2009. Placer County Travel Industry Assessment and Detailed Economic Impact Estimates, 2002-2008. March 2009. Lahontan RWQCB. 2002. Revised Waste Discharge Requirements Board Order No. R6T-2002- 0030. Nevada County. 1996. Nevada County General Plan 1995. Approved in 1996, updated in 2008, 2010, and 2014. Retrieved April 2, 2015, from Nevada County <https://www.mynevadacounty.com/nc/cda/planning/Pages/Nevada-County-General- Plan.aspx>. Nevada LAFCo. November 26, 2003. Final Eastern Nevada County Wastewater Municipal Service Review . Prepared by Quad Knopff. Retrieved March 17, 2014, from Nevada County LAFCo: <https://secure.mynevadacounty.com/nc/lafco/docs /LAFCo%20Municipal%20Service%20Reviews/Completed%20MSRs/2003%20Eastern%20Ne vada%20County%20Wastewater%20MSR.pdf>. Nevada LAFCo. March 21, 2013a. Sphere of Influence Update Truckee Sanitary District. Prepared by Michael Brandman and Associates. Retrieved January 21, 2014, from Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-32 North Tahoe and Martis Valley MSR Nevada County LAFCo: <http://www.mynevadacounty.com/nc/lafco/ docs/LAFCo%20Sphere%20Plans%20and%20Related%20Materials/DRAFT%20SPHERE%20P LAN%20UPDATES/TSD-Material%20for%20Website/TSD-Final%20Documents/TSD %20SOI%20Adopted%20May%202013.pdf>. Nevada LAFCo. 2013b, February. Sphere of Influence Update Truckee Sanitary District Draft EIR. Prepared by PMC. Retrieved January 18, 2014, from Nevada LAFCo: <http://www.mynevadacounty.com/nc/lafco/docs/LAFCo%20Sphere%20Plans%20and% 20Related%20Materials/DRAFT%20SPHERE%20PLAN%20UPDATES/TSD- Material%20for%20Website/CEQA%20Documents/Draft%20EIR%20for%20TSD%20SOI%20U pdate.pdf>. Placer County. 1968. Alpine Meadows General Plan. Prepared by Raymond M. Smith, A.I.P. Retrieved December 8, 2014, from Placer County: <http://www.placer.ca.gov /~/media/ cdr/Planning/CommPlans/NTahoeCPs/AlpineMeadowsGeneralPlan.pdf>. _____. 1994. Placer County General Plan 1994. Adopted August 16, 1994, updated May 21, 2013. _____. December 16, 2003. Martis Valley Community Plan. Prepared with assistance from Pacific Municipal Consultants, LSC Associates, and Placer County Water Agency. Auburn, CA. 146 pages. Retrieved January 8, 2014, from Placer County: <http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/MartisValley/ MartisValleyCommPlanDec2003.pdf>. _____. November 2013. Northstar Mountain Master Plan Draft EIR. Retrieved January 8, 2014, from Placer County: <http://www.placer.ca.gov/ Departments/CommunityDevelopment/EnvCoordSvcs/EIR/NorthstarMMP.aspx>. _____. 1983. Squaw Valley General Plan and Land Use Ordinance. 70 pages. Auburn, Ca. Retrieved Village at Squaw Valley Specific Plan. 29 pages. Retrieved April 2, 2015 from Placer County: <http://www.placer.ca.gov/~/media/cdr/Planning /CommPlans/NTahoeCPs/SquawValleyGP/SquawValleyGenPlan1stPart.pdf>. Squaw Valley Real Estate, LLC , et. al. (2014, October). _____. April 2, 2015 from Placer County: < http://www.placer.ca.gov/~/media/cdr/Planning /SpecificPlans/VillageAtSquawValley/Draft%20Specific%20Plan%20Oct%202014/Introdu ction.pdf> Placer LAFCO. 2004. Municipal Services Review Area 3 Services. Auburn: Placer LAFCO. Tahoe Regional Planning Agency. 2012. Lake Tahoe Regional Plan. Retrieved June 1, 2015 <http://www.trpa.org/regional-plan/>. T-TSA. 1998. Technical Memorandum, T-TSA Report for Expansion of the Regional Waste Water Reclamation Plant. Prepared by CH2MHill. August, 8, 1998 _____. 2009/2013. Sewer System Management Plan (SSMP). _____. 2013a, October 25. Agency Response to Placer LAFCO RFI. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-33 North Tahoe and Martis Valley MSR _____. 2013b. Upgrade Rehab Fun Budget 2013-2014. _____. (n.d.). T-TSA Water Reclamation Plant Brochure. _____. February 15, 2017a. Financial Statements with Supplementary Information and Independent Auditor’s Report for the Fiscal Years Ended June 30, 2016 and 2015. Contributions from Damore, Hamric & Schneider, Inc. Certified Public Accountants. 47-pages. _____. November 2017b. Board meeting packet. Memorandum from Operations Manager Regarding Operations in October 2017. U.S. Census Bureau. 2012-2016 American Community Survey 5-Year Estimates. Retrieved from < https://factfinder.census.gov> on January 15, 2018. Draft Final MSR, August 2018 Chapter 16, Tahoe Truckee Sanitation Agency 5-34 North Tahoe and Martis Valley MSR C 17 HAPTER Talmont Resort Improvement District The Talmont Resort Improvement District was formed in 1964 and it now provides drinking water and snow removal services. Table of Contents 17.1: Agency Profile ....................................................................................17-2 17.2 Overview of Agency ...............................................................................17-3 17.3: Formation and Boundary ........................................................................17-4 17.4: Accountability and Governance ...............................................................17-6 17.5: Management Efficiencies and Staffing ........................................................17-6 17.6: Population and Growth .........................................................................17-7 17.7: District Services ..................................................................................17-8 17.8: Infrastructure and Facilities ................................................................. 17-10 17.9: Financing ........................................................................................ 17-11 17.10: Challenges ..................................................................................... 17-21 17.11: Service Adequacy ............................................................................ 17-21 17.12: Determinations ............................................................................... 17-22 17.13: References .................................................................................... 17-25 Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-1 North Tahoe and Martis Valley MSR 17.1: AGENCY PROFILE Talmont Resort Improvement District Type of District: Resort Improvement District Enabling Legislation: Special Districts Act of 1963: Public Resources Code §§ 13000-13233 Functions/Services: Water distribution and snow removal Main Office: None Mailing Address: P.O. Box 1294, Tahoe City, CA 96145 Equipment Garage: 2010 Silver Tip Drive, Tahoe City, CA 96145 Phone No.: 530-583-8743 Fax No.: 530-583-0709 Web Site: https://www.sites.google.com/site/talmontdistrict/meet-directors-staff Email: None Administrative Supervisor: Libby Gregg Email: libbygregg4@aol.com Phone: 530-583-1889 Governing Body: Elected Board of Directors Name Role Terms Ends Howard Perry President November 2018 James Henderson Director November 2018 Larry Anderson Director November 2020 Kym Pipkin Director November 2020 Leigh Ann Cullen Director November 2020 Meeting Schedule: Second Monday of every other even month at 4:00 p.m. Meeting Location: District garage, 2010 Silvertip Drive, Tahoe City, CA Date of Formation: 1964 Principal County: Placer County Other: Powers restricted by Public Resources Code § 13075 Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-2 North Tahoe and Martis Valley MSR 17.2 OVERVIEW OF AGENCY SUMMARY DESCRIPTION OF EXISTING SERVICES The Talmont Resort Improvement District (TRID/District) provides domestic water delivery and snow removal services within its service area. This is the first complete Municipal Service Review for the District since Talmont RID did not provide data for Placer LAFCo’s 2004 MSR. TYPE AND EXTENT OF SERVICES The District provides water delivery and snow removal services. Primary activities for the District’s water delivery system include repairs and maintenance of infrastructure (e.g., wells, tanks, pipeline, and meters), water metering, water testing, preparation of an annual report for the California Department of Health, and State permitting. Snow removal services involve removal and storage of snow at road dead-ends within the service area, and repairs of the maintenance building and equipment. TRID is a public corporation organized in 1963 under the authority of Placer County and Public Resources Code §§ 13000-13233 for the primary purpose of CONTACT INFORMATION: providing water to largely seasonal residences in the Talmont Estates and Twin Peak Estates subdivisions in PHONE NO.: (530) 583-8743 Placer County. These subdivisions contain FAX: (530) 583-0709 MAILING ADDRESS: approximately 380 lots, 30 of which are Tahoe P.O. BOX 1294, TAHOE CITY, CA Conservancy lots. The District served 340 of these lots 96145 as of 2014, with the potential to serve the remaining ten undeveloped lots. The District’s total budget is $350,800 annually, of which $208,163 is for water system expenses, $87,387 for snow removal expenses, and $55,250 for general expenses such as insurance, metering, and administration. LOCATION AND SIZE The District is located in the Ward Creek watershed, in an unincorporated area of northeastern Placer County approximately two miles southwest of the community of Tahoe City. Lands to the north, south, and west are primarily zoned for recreation and conservation uses, while higher density residential development is situated to the eastern side of the service area before it meets the western shore of Lake Tahoe. The service area Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-3 North Tahoe and Martis Valley MSR encompasses approximately three square miles (1,920 acres). The community of Tahoe City is the closest socioeconomic center to the Talmont area. See Figure 17.1 for a District map. 17.3: FORMATION AND BOUNDARY The District was formed in 1964 as a resort improvement district with the goal of providing a host of services to the residents of the Talmont Estates and Twin Peak Estates subdivisions, including water for domestic use, irrigation, sanitation, industrial use, fire protection, and recreation; the collection, treatment, and disposal of sewage, waste water, and storm water; fire protection; garbage collection; public recreation; and street lighting. Snow removal was added to the District’s functions in the late 1960s. To the knowledge of District staff, however, since that time only domestic water provision and snow removal have been offered to customers. The District boundaries have not changed since its inception in the early 1960s, and the District is limited in its future growth potential by changes in State law. The District was created to serve residents in the Talmont area, and no annexation proposals have been brought before Placer LAFCo since the initial formation of the District. TRID’s boundaries do overlap with those of Tahoe City PUD. BOUNDARY HISTORY The District boundaries were originally established in November 1963 as part of Board Resolution 63-330 and subsequently affirmed by voters in a special election in 1964. There have been no changes to the District boundaries since that time. SPHERE OF INFLUENCE The District’s Sphere of Influence (SOI) is not described in detail in LAFCO’s files because the District was formed more than 50 years ago in 1964. However, based upon conversation with LAFCO’s Executive Officer, the District’s SOI is assumed to be concurrent with its existing boundaries. The District has no plans for expansion of its service area and has not considered a larger SOI than the current boundaries. EXTRA-TERRITORIAL SERVICES Service is not provided to areas outside the service boundary. AREAS OF INTEREST No specific areas outside the TRID boundaries have been identified that require services from the District. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-4 Silver Tip Drive Ward Creek Blvd. Ward Creek d. v Bl e k a L W. 89 Lake Tahoe District Boundary Parcels Local Roads 0 500 1,000 Feet Parcel, Roads and District Boundary from Placer County GIS. Figure 17-1 TALMONT RESORT IMPROVEMENT DISTRICT North Tahoe and Martis Valley MSR 17.4: ACCOUNTABILITY AND GOVERNANCE The District is small with a range of services limited by its enabling legislation and changes to State law restricting its operational authority. The District is governed by a five-member Board of Directors elected by voters registered within the District boundaries. Regularly scheduled meetings are held on the second Monday of every other even month (February, April, June, etc.) at 4:00 p.m. Meetings are located at the District garage at 2010 Silvertip Drive, Tahoe City, CA. The current Board members and Manager are as follows: Name Role Term Howard Perry President 4 years James Henderson Director 4 years Larry Anderson Director 4 years Kym Pipkin Director 2 years Leigh Ann Cullen Director 2 years All meetings are publicly posted at least one week prior to Board meetings. Meeting notices are posted at the equipment garage at 2010 Silvertip Drive, Tahoe City, CA; on the District’s website at https://sites.google.com/site/talmontdistrict; and sent via U.S. mail to all addresses within the service area. The State of California considers Recreation Improvement Districts to be archaic. In 1961, the California Legislature passed the Resort Improvement District Law (Public Resources Code §13000, et seq.; SB 384, Cameron, 1961). In 1965, the California State Assembly held hearings and banned new resort improvement districts (Public Resources Code §13003). As a result, only seven RID’s remain operational in the state. In 2010, the Governor approved Senate Bill 1023 (Wiggins) to create an expedited procedure for converting resort improvement districts and municipal improvement districts that operate under archaic statutes into community services districts, without substantive changes to their powers, duties, finances, or service areas. It is recommended that Talmont RID work with LAFCo to consider a process to convert the RID to a Community Service District. 17.5: MANAGEMENT EFFICIENCIES AND STAFFING Day-to-day operations for the water delivery system are managed by the Administrative Supervisor and Water Manager, both subcontractors for the District. The District employs one part-time staff person for snow removal. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-6 North Tahoe and Martis Valley MSR 17.6: POPULATION AND GROWTH POPULATION The 2010 US Census reported a population of 1,557 in the Sunnyside-Tahoe City area, with a population density of 460.6 people per square mile. This population figure represents a decrease of about 200 people from the 2000 US Census, which reported a population of 1,761. However, the District boundaries are much smaller than the Sunnyside-Tahoe City area, and the 2010 US Census does not provide statistics for the service area alone. The District indicates that they currently have 340 residential connections and have the potential for 350 total connections. With only ten more residential lots to be developed within the service area, the population will likely plateau in the near future. However, many of the 340 residences are vacation homes with a seasonal visitor population. It is estimated that the year-round (permanent) population of the District is 300 persons1. The service area has historically been limited by the boundaries of the Talmont Estate and Twin Peak Estate subdivisions, and without any requests for additional service outside the boundaries or requests for boundary changes, the service area will remain bounded by these subdivisions in the foreseeable future. Nearly all large surrounding parcels are zoned for conservation or recreation uses. Other residential subdivisions in the area are serviced by other public entities or are privately serviced, making requests for additional service from TRID unlikely. The 2009 Placer County Housing Element Background Report indicates that the average household size is 2.56 persons per residence in unincorporated Placer County. Thus, the total resident and visitor population in the service area during the peak summer season can be estimated at 870. When the total buildout of 350 residences is assumed, the maximum resident and visitor population is estimated at 896 during the peak summer season. PROJECTED GROWTH AND DEVELOPMENT The Placer County General Plan serves as the County’s vision for long-term land use development and conservation. Placer County’s General Plan adopted on August 16, 1994, and updated May 21, 2013, provides a series of goals, policies, standards, and implementation programs to guide the land use, development, and environmental quality of the County. Table 17.1: Population Projections for Talmont RID 2014 Permanent 2014 Visitor (only) 2020 Permanent 2020 Visitor Population Population during Population Population during summer peak season (projected) summer peak season 300 570 309 587 1 So. Lake Tahoe PUD. July 2014, Appendix 2. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-7 North Tahoe and Martis Valley MSR The population projections in Table 17.1, above assumes that the 10 vacant parcels will be developed by the year 2020. Using the District’s average of 0.88 permanent residents per household, the projected population in 2020 will be 309 permanent residents. Using the District’s average of 1.67 visitor population per household, the additional 10 units yields a peak visitor population of 587 persons. This brings the total projected max population (permanent resident plus visitor) to a total of 896 persons. Since our calculations assume build-out by the year 2020, the 2020 projections will also be valid for the years 2025, 2030, and 2035. In other words, the District’s projected population is predicted to be a flat value for the years 2020 through 2035. DISADVANTAGED UNINCORPORATED COMMUNITY As described in Chapter 3, LAFCo is required to consider the provision of public services to disadvantaged unincorporated communities (DUCs). Relevant data were reviewed for the Talmont RID area. No DUCs have been identified within Talmont RID boundaries, its SOI, or adjacent areas. The U.S. Census 2010 found the median household income (MHI) in the 96145 zip code was $66,628.2 This is higher than the DUC threshold MHI of less than $48,706 (80 percent of the statewide MHI). The DWR mapping tool for locating disadvantage communities was also queried and DWR does not classify the Talmont RID area as disadvantaged. Additionally, this area does receive adequate water, wastewater, and fire protection services as detailed in this MSR. Please see Chapter 3, Section 3.6 of this MSR for more information on disadvantaged unincorporated communities. 17.7: DISTRICT SERVICES SERVICE OVERVIEW The District provides snow removal and the distribution of water within the service area. Snow removal occurs during the winter and spring months as needed. There are approximately 10 miles of roadways within the RID boundaries that receive seasonal snow removal services. Although the roads are owned and maintained by Placer County, Talmont RID provides snow removal service consistent with the specifications of its contract with the County. Water is provided to residents year-round. However peak water use occurs predominantly during the summer months because the service area encompasses a seasonal, resort-style development that is occupied year-round by only 20 percent of the service area home owners. The District monitors its two wells, one a primary working well and the other a back-up well, on an hourly basis. The water system is on an alarm that notifies workers if the water service fails. As part of the permitting process, the data is sent to the California Department of Health along with an annual report. The District is also responsible for repairs and 2 2010 census via American Fact Finder website at: <http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=CF>. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-8 North Tahoe and Martis Valley MSR maintenance of its infrastructure (wells and pumps, tanks, pipeline, hydrants, and meters), upkeep of its maintenance facility, water metering, and State permitting. Water is minimally treated and consistently meets State water quality standards. SUPPLY/DEMAND SNOW REMOVAL Snow removal demands are affected not by population growth but by the number of paved roads requiring snow removal and the amount of snowfall accumulated. There is no anticipated expansion in the number of road miles. Continued operation of the snow removal service within the District can continue given the existing management structure of the District and available funding and infrastructure. No change in the provision of this service, either in extent of provision or type of service provided, is necessary for the long-term continued operation of the District. Under current State law, the District cannot add new services and could not restart this service if it was stopped. The limited ability to change District operations is a constraint on potential government structure revisions, and there do not appear to be viable alternatives COURTESY OF WWW.GOOGLE.COM/MAPS available for other districts to provide this snow removal service in this area. WATER The District utilizes groundwater as its primary water supply. Groundwater in the region is generally of good quality3. Water wells pump water to the surface where it is treated and then distributed to customers. Demand for municipal water is typically impacted by development. Population growth or additional service connections increase the water demand and the need for additional infrastructure. Minimal development is anticipated in the remainder of the District. The District’s boundaries encompass a subdivision that has only ten remaining undeveloped lots. Approximately 23% of the land in the Talmont area is owned by public agencies4, leaving little remaining area to be developed. Furthermore, 80 percent of the homes in the service area are only seasonally occupied during the summer months of June through September. Water use in the summer of 2014 declined by 10% compared to the summer of 2013 indicating that residents are conserving water during the drought5. The District has adopted a drought 3 So. Lake Tahoe PUD. July 2014. Page ES-5 4 USDA. 2000. Page 654. http://gis.fs.fed.us/psw/publications/documents/psw_gtr175/psw_gtr175_ch6.pdf 5 Minutes of the Talmont Resort Improvement District. October 15, 2014. Available at: https://www.sites.google.com/site/talmontdistrict/minutes/july-13-2011 Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-9 North Tahoe and Martis Valley MSR plan (Resolution 2014-2)6 as mandated by the State Water Resources Board. The drought plan includes conservation measures such as limiting outdoor irrigation to hours between 9am-9pm and washing of vehicles with a shutoff nozzle on hose only. 17.8: INFRASTRUCTURE AND FACILITIES The District maintains a Capital Improvement List to inventory and identify future repair and replacement needs of the District’s infrastructure and facilities, and has estimated that between 2011 and 2016, $160,000 will be needed to repair and replace equipment needed for snow removal, and $637,000 will be needed to repair and replace water service equipment. These items were taken into account in the 2013-14 budget and will be considered in future budgets as well. The District uses the Capital Improvement List to budget for future needs and ensure that replacement of infrastructure and facilities will be feasible when necessary. All items on the Capital Improvement List are funded from the annual capital improvement assessment that is part of property taxes for lots within the service area. SNOW REMOVAL The District provides snow removal services on approximately ten miles of roadways within its District boundaries. All roadways are owned by Placer County, and services are provided according to specifications of a contract with the County. The County maintains the general condition of the roadways and sands the roads during the winter and early spring seasons, while the District provides snow removal services and maintains its own equipment and storage facilities to provide snow removal. The District is responsible for repairs and maintenance of its snow removal equipment, a CAT 966 loader and two graders, as well as a maintenance building for storage of equipment and vehicles. Given the age of equipment, it is likely that significant repairs or replacement will be necessary within the next three years. WATER The District owns and operates two wells on Washoe Way, one duty well and one back-up well, both approximately 250 feet deep. Water is pumped into three water tanks, one of which holds 60,000 gallons and two of which hold 200,000 gallons. The water is untreated and consistently meets all the State water quality standards for drinking water. The District is responsible for repairs and maintenance of its wells and pumps, tanks, pipeline, hydrants, and water meters. OPPORTUNITIES TO SHARE FACILITIES The District holds its meetings in a building that also serves as the District garage for snow removal equipment. The Administrative Supervisor and Water Manager work from private offices, while the Snow Removal Manager works from the equipment garage. 6 Resolution 2014-2 is available at: < http://apps.tahoedailytribune.com/utils/c2/app/v2/ index.php?do=adDetail&adId=10474839#.VOvszy7QDW8>. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-10 North Tahoe and Martis Valley MSR DISTRIBUTION AND TRANSMISSION The District’s water distribution system begins at the two wells, only one of which is active at any given time, and proceeds to three holding tanks from which the water is conveyed through a series of underground pipelines to residential and commercial connections. 17.9: FINANCING Talmont RID has an adopted management and budget policy addressing budget preparation, accrual basis of accounting, investment of funds, and expense authorization. Budgets are adopted in public meetings on an annual basis. The budget has sufficient organization and content to account for the major expenses to the District. The fiscal year begins on July 1 and ends on June 30. The District’s website contains recent budget data and rate information. Audited financial statements are available upon request from the District. Limited financial data for Talmont RID is also available at the CA Controller’s website at: https://bythenumbers.sco.ca.gov/finance-explorer/view-by-special-district . Please note that the data available at the CA Controller’s website is unaudited data that Talmont RID supplied to the Controller’s Office. Neither the Controller’s Office nor the MSR consultants has verified the accuracy of this data. Although the data provided on the Controller’s Office website differs somewhat from the Audited Financial Statement from McClintock Accountancy Corp, perhaps the difference could be attributed to the difference between audited and unaudited information. The data from the Controller’s Office is utilized herein only as supplemental information and this MSR analysis relies primarily upon the audited financial statement prepared by McClintock Accountancy Corp. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2014. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: https://www.sites.google.com/site/talmontdistrict/ . This MSR section was written in 2014 and at that time, the most recent independent auditor’s report was prepared for FY11/12 and dated December 5, 2012, and was attached to the District’s Financial Statements. The audit found that there were no issues of noncompliance with financial regulations that could have an effect on the financial statement7. 7 McClintock Accountancy Corporation. Financial Statements and Independent Auditor's Report For the Year Ended June 30, 2012. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-11 North Tahoe and Martis Valley MSR REVENUES This section describes sources of revenues for Talmont RID. The District operates under one Enterprise Fund that covers both snow removal and water service8. The District receives revenue from several sources including user fees, property tax, grants, investments, and other sources. An enterprise fund is intended to ensure the fees collected as customers pay their bills can be accounted for separately. Property tax assessments of properties within the District’s boundaries are the revenue mechanism funding snow removal service. Revenues for the FY 11/12 are detailed in Figure 17.2, below: Figure 17.2: FY 11/12 Revenues Water service 19% Snow removal service 11% Other revenue 59% Interest income 0% Special assessment 10% Source: McClintock Acc Late charges Corp. Audited Finacial Statement 1% Sources of revenue in the FY 11/12 included fees for water service at $189,406, snow removal service property tax at $114,433, special assessment at $101,475, late charges at $3,781 and interest income at $1,317. The RID’s largest source of revenue, classified as “Other Revenue” represents 59% of the District’s total revenue at $599,4539. Total operating revenue in FY 11/12 was $307,620 and total non-operating revenue was $699,525 which calculates to a total revenue of slightly over $1 million. In 2011 the TRID received a $7,000 grant from the Placer County Water Agency for their water meter program, the major goal of which was to install water meters at all residential and commercial addresses in the service area for water conservation purposes. In May 2014, the 8 McClintock Accountancy Corporation. Financial Statements and Independent Auditor's Report For the Year Ended June 30, 2012. 9 McClintock Accountancy Corp. Audited Financial Statement. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-12 North Tahoe and Martis Valley MSR Placer County Water Agency Board of Directors granted $5,000 to the Talmont Resort Improvement District for a project to rebuild a district pump station10. In June 2018, the MSR authors reviewed Talmont RID’s budget for FY 16/17 and 17/18 and the budget indicated District revenues totaled $352,552 as shown in Table 17-2, below. Table 17-2 TRID Budget Revenues 16/17 and 17/18 Budget Data for FY 16/17 and 17/18 (unaudited) Revenues FY 16/17 FY 17/18 501-00 Water Service $258,279 $258,279 502-00 Snow Removal $94,273 $94,273 · 504-00 Miscellaneous Income $0 $0 · 505-00 Late Charges & Shut off $0 $0 Fees · · 506-00 Interest Income $0 $0 512-00 Transfer Fee $0 $0 · Total Revenue $352,552 $352,552 · EXPENSES Expenses for the enterprise fund include administrative expenses such as insurance, depreciation of capital assets, and the costs of providing water treatment and distribution, and snow removal services as shown in Figure 17.3 below. In FY 11/12 the RID paid $47,391 in utility bills, which averages to about $3,950 per month. Utility bills are one area in which the District may wish to consider implementing projects to improve energy efficiency and thus lower utility bills. Electricity to power the wells to pump groundwater is likely the RID’s largest energy use. 10 Additional information about the grant is available here: http://www.rocklintoday.com/news/templates/community_news.asp?articleid=12969&zoneid=4 Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-13 North Tahoe and Martis Valley MSR Figure 17.3: Expenses FY 11/12 Salaries, wages 13% Depreciation 27% Repairs, maintenance 25% Utilities 17% General, admin 17% Interest 1% Comparing revenues to expenses provides an analysis of the overall fiscal health of the enterprise fund and serves to assess the financial ability of the District to continue its provision of water and snow removal services. In recent years revenues exceeded expenses and this indicates that under current levels of maintenance and capital improvements, the customer service fees and taxes cover existing costs. As shown in Figure 17.4 below total revenues exceeded $1 million in FY 11/12, far outpacing total expenses of $280,71611. However, the large revenue in FY 11/12 appears to be an anomaly, perhaps related to payment for a capital expense. In most years, the RID’s total revenue is approximately $300,000 per year and expenses average approximately $187,000 per year12. Revenue that is in excess of expenses is held in reserves for use during emergencies13. It is recommended that the RID provide more information about its reserve accounts and provide audited financial statements for a minimum of three fiscal years to LAFCo, when LAFCo prepares the next MSR, in approximately five years. In June 2018, the MSR authors reviewed Talmont RID’s budget for FY 16/17 and 17/18 and the budget indicated District expenditures are expected to total $365,662 in FY 17/18 as shown in Table 17-3, below. 11 McClintock Accountancy Corp. Audited Financial Statement. 2012. 12 CA Controller’s Office website at: <https://bythenumbers.sco.ca.gov/finance-explorer/view-by- special-district>. 13 Talmont RID’s response to LAFCo’s Request for Information for MSR. Sept. 2013. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-14 North Tahoe and Martis Valley MSR Table 17-3: Expenditures TRID FY 16/17 and 17/18 Budget Data for FY 16/17 and 17/18 (unaudited) Expenditures FY 16/17 FY 17/18 Meter Reading Expense $3,500 $3,500 6560 · Payroll Expenses $40,000 $42,000 707-00 · Gas & Oil $6,250 $7,250 712-00 · Depreciation-Ws $92,593 $92,593 713-00 · Depreciation-Sr $25,113 $25,113 760-00 · Electricity $37,000 $37,000 765-00 · Utilities-Maintenance Bldg $4,000 $4,000 766-00 · Repairs & Maint-Building $2,000 $2,000 791-00 · Insurance $9,300 $9,300 792-00 · Workers Comp Insurance $2,000 $2,000 794-00 · Water Testing $2,000 $2,000 802-00 · Accounting $12,000 $12,000 803-01 · Secrtrl/Admin/Misc. Costs $25,000 $25,500 807-00 · Miscellaneous $1,000 $1,000 810-00 · Office Supplies & Expense $5,000 $5,000 812-00 · State Water Fee&Csda $7,100 $7,100 826-00 · Repairs & Maint-Ws/Labor $37,450 $40,000 828-00 · Contract Maintenance $27,996 $28,556 830-00 · Repairs & Maint-Sr $3,750 $4,750 855-00 · Telephone & Signal Lines $9,500 $15,000 Interest expense $0 $0 Total Expenditures $352,552 $365,662 Diff/Income from expenses $0 -$13,110 Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-15 North Tahoe and Martis Valley MSR $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2011 2012 2013 Although Figure 17- above indicates that revenues generally exceed expenditures, for FY 17/18 the TRID budget indicates that expenses will exceed revenues by $13,110. Additionally, data is necessary prior to determining whether this is a significant financial trend. ASSET MAINTENANCE AND REPLACEMENT The District's net assets were $1,542,906 at June 30, 2011 and $2,272,054 at June 30, 2012. The increase in FY 11/12 was due to the water meter project not yet completed, a special assessment that was collected, and interest income received. Capital assets the district owns and maintains includes cash, cash equivalents, accounts receivable, interest receivable, land, land improvements, a building, water plant, equipment and meters, depreciable assets, and construction in progress. It should be noted that the RID’s water meter installation is part of a water conservation effort and will likely yield long-term benefits by contributing towards increased cost effectiveness. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-16 $ SU Figure 17.4: Revenues and Expenses - Talmont RID Revenue Expense Source: 2012 data from Audited Financial Statements by McClintock Acc Corp 2011 and 2013 data from CA Controller's website. North Tahoe and Martis Valley MSR $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2011 2012 2013 Part of the assets the RID maintains is cash and investments. The audited financial statement for FY 11/12 reports that cash and investments held by the District at June 30, 2012 are as follows: Cash on deposit at banks $ 190,301; investments held by LAIF $485,080; cash held by LAIF-restricted $38,701. LAIF is the State of California Local Agency Investment Fund (LAIF) a governmental investment pool managed and directed by the California State Treasurer and is not registered with the Securities and Exchange Commission. An oversight committee comprised of California State officials and various participants provide oversight to the management of the fund. The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's office. The District is a voluntary participant in the investment pool. CAPITAL IMPROVEMENTS The Talmont RID has a simple list of capital improvement projects. A sample of the near term water projects and two snow removal projects are listed as shown below14. Water 1. Tank Interior/exterior painting, service. 2. Pump replacement Wells 1 and 2 3. Hydrants- 10-12 will be replaced 4. Upgrades to Telemetry 5. Snow Removal Equipment needs 6. Silver Tip Pump Station Project 14 Talmont RID. Minutes of Meeting. 2014-2015 Budget Planning Meeting. March 7, 2014 2:00 PM. <https://sites.google.com/site/talmontdistrict/minutes/january-13-2011>. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-17 $ SU Net Assets - Talmont RID Source: 2011 and 2012 data from Audited Financial Statements by McClintock Acc Corp. 2013 data from CA Controller's website. North Tahoe and Martis Valley MSR Snow removal15 1. Cat 966 Loader, $90,000 estimated cost 2. Transmission Repair, $12,000 estimated cost Capital expenditure financing is provided by “capital improvement assessments” of properties within the District boundaries. All maintenance and operations financing is provided by monthly rates and fees as shown above under “Rate Restructuring.” LONG-TERM LIABILITIES AND DEBTS As of June 30, 2012, Talmont RID had $81,686 in total liabilities. These liabilities include a lease and accounts payable16. In 2010, the District entered into a capital lease to purchase a loader. The terms of the lease are 60 payments of $1,827 and the payments are scheduled to end off in 2016. $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2011 2012 2013 RATE RESTRUCTURING The District’s rates were amended as of July 1, 2013 (Ordinance2013-01), in order to fully fund the FY 2013-2014 budget and to provide for increased conservation due to the new consumption-based rate structure. At the same time, snow removal rates decreased from to $72.60 per quarter due to operational efficiencies. Water rates were modified from a flat fee system to a tiered billing system based on water use, which is now metered. The base allowance is up to 24,000 gallons per quarter. The District states that 98 percent of their customers use this amount or less in the winter quarter, and 85 percent use this amount or less in the fall and spring quarters. However, approximately 35 percent of customers use in 15 Capital Improvement Schedule available at: <https://sites.google.com/site/talmontdistrict/capital- improvement-schedule>. 16 Audited Financial Statement. McClintock Accountancy Corp. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-18 $ SU Total Liabilities Source: 2012 data from Audited Financial Statements by McClintock Acc Corp. 2011 and 2013 data from CA Controller's website. North Tahoe and Martis Valley MSR excess of this amount in the summer months, placing them in the higher tiers of the new rate schedule. The new rates therefore provide an incentive for customers to conserve water when it is scarcer. Reliable water meter data is now available and could potentially be utilized to improve efficiency at the RID. Water rates are shown below. Table 17-4: TRID Water Rates 2012 Tiers Gallons Used per Residential Quarterly Commercial Quarterly Quarter Water Rates Water Rates Tier I (Base 0 - 24,000 $175.50 $352.20 rate) Tier II 24,001 - 42,000 base rate + $49.50 base rate + $49.50 Tier III 42,001- 96,000 base rate + $94.50 base rate + $94.50 Tier IV 96,001 - base rate + 184.50 base rate + 184.50 150,000 Tier V 150,001 + $360 + $2 per 1,000 $360 + $2 per 1,000 gallons gallons over 150,001 over 150,001 gallons gallons Special Assessment $75 per quarter, ending $75 per quarter, ending 12-31-2013 12/31/2013 System Replacement Fee $75 per quarter, $75 per quarter, effective effective 01-01-2014, 01/01/2014, regardless of regardless of usage usage Table 17.5: Schedule B – Water and Snow Fees - Ordinance 2011-01 of the Talmont RID Residential: New Construction or Remodel Description Fee Notes Locate Service Line $75 Per visit Shut off & reconnection fee - $75 Per visit, min plus actual cost Temporary Shut off & reconnection fee - $250 Per visit, min plus actual cost Emergency Connection inspection, plan check $50 Per visit fee Meter installation $2000 If paid in full by June 30, 2011 Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-19 North Tahoe and Martis Valley MSR Meter installation $2500 If paid between July 1, 2011 and April 2013 New Service Extension, Service $2100 deposit Billed actual cost tap Late fee, administration charge $25 Monthly payment administration $10 charge Returned check fee $30 Tax lien administration fee $150 Tax lien sales fee $150 Process refund of fees, excluded $25 overpayment Finance Charge 1.50 % Per month on unpaid amounts Ownership transfer fee $50 Ordinance Violation disconnect $500 Plus any additional costs for and reconnect (including non- administrative, field investigation, payment) and legal expenses. Unauthorized connections, $500 Plus any additional costs for discharges, fire hydrant use administrative, field investigation, legal expenses, and consumption rates. As shown in Table 17.5 above, in addition to monthly fees, the TRID charges a water meter installation charge of $2,000, to be collected at the time a residential Property is sold (i.e. before Close of Escrow or change of title)17. Other fees include an emergency shut-off fee of $50, a returned check fee of $30, an ownership transfer fee of $50 and several other fees. COST AVOIDANCE This section highlights cost avoidance practices given necessary service requirements and expectations. Ideally, proposed methods to reduce costs would not adversely affect service levels. In general, water systems have a fixed cost associated with operations and maintenance and has a variable cost related to flows. As the RID staff continues to provide water services to residents, they must deal with regulatory and physical constraints which may limit their ability to pursue cost avoidance practices. Given these constraints, the District pursues an array of cost avoidance techniques that each contributes incrementally towards keeping costs at a reasonable level. District meetings are held in the District-owned equipment garage. TRID employs one part- maintenance worker to provide snow removal services, and two subcontractors who work from private offices. The Board of Directors is not compensated. Expenditures are largely a 17 Installation charge is described here: < http://www.tahoemls.com/blog/wp- content/uploads/2013/09/Tahoe-Truckee-Regional-Area-Advisory-10-1-13.pdf>. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-20 North Tahoe and Martis Valley MSR result of maintenance and operations of the water system and snow removal equipment, with these services accounting for 84 percent of the annual operating expenses. Review of the annual budget for snow removal shows little expenditure beyond maintenance, salary, insurance, and taxes. With limited budget and minimal expenditures, there do not appear to be any opportunities for cost avoidance related to the provision of snow removal. Talmont RID’s budgeting processes serves as one means to avoid unnecessary costs since budget line items are carefully thought out well in advance. Additionally, the District’s purchasing policies provide a review of significant purchases and competitive bidding to ensure purchases are made efficiently. Talmont RID conducts regular maintenance on water lines. Snow removal is sub-contracted out. The District has not identified areas currently served that might be served more efficiently by another agency. However, water system utility expenses account for 17 percent of the expenditures for water delivery. The District should investigate efficiencies in its electricity use, as well as the possibility of capturing renewable energy as a cost-reduction strategy. 17.10: CHALLENGES The District’s rates and fees provide the financing for the provision of domestic water and snow removal services. The budget for fiscal year 2013-14 results in $2,907.20 surplus and includes depreciation for equipment that will need to be replaced and maintained over the next several years. No other issues have been identified by TRID. 17.11: SERVICE ADEQUACY District facilities are sized to adequately serve the existing and anticipated connections within the service area. The District also has adequate water supply to serve existing and anticipated future customers. In 2012 the District pumped 205 gallons per minute (gpm) from its primary well, with the ability to pump 165 acre-feet (af) annually. Supply from the second well exceeded that amount at 290 gpm and 233 af. Water demand for 2012 was 60 af, significantly less than the supply. As previously noted, minimal development is expected to occur within the District due to the fact that only ten lots are undeveloped in the District. Operations and maintenance needs are accommodated by service charges and tax assessments, resulting in adequate long-term water provision. Snow removal is currently adequate as well, and continued operation of the snow removal service within the District can continue given the existing management structure of the District and available funding and infrastructure. No change in the provision of this service, either in extent of provision or type of service provided, is necessary for the long-term continued operation of the District. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-21 North Tahoe and Martis Valley MSR 17.12: DETERMINATIONS GROWTH AND POPULATION PROJECTIONS 1. The current number of residential connections in the District was 340 as of 2014. With an average household size of 2.56 in Placer County, the estimated maximum population during the peak summer season is 870 people. 2. Given the limited number of residential lots in the service area (that do not have the ability to be subdivided under current zoning), the ultimate potential number of service connections is 350, with a possible ultimate peak summer season population estimated at 896. 3. Population in the service area is not likely to increase beyond 896 unless the service area is expanded, household size increases, the number of second units increase, or the zoning is changed to allow for subdivision of the existing lots. 4. There are no plans for expansion of the service area, and nearly all large surrounding parcels are zoned for conservation or recreation uses, or are already constructed with existing residential subdivisions 5. The population served by the District is predominantly seasonal, with 80 percent of residents occupying their homes only during the peak visitation months. 6. The District has the ability to provide water for year-round residents and seasonal residents. DISADVANTAGED UNINCORPORATED COMMUNITIES 7. No areas within the District qualify as a disadvantaged unincorporated community because the median family income exceeds 80% of the state median family income. PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES 8. The District was established in 1964 to provide a range of public services, including water delivery, to the Talmont Estates and Twin Peak Estates subdivisions. The district has never activated any of the services that were part of the original formation, including sewage and storm water collection and treatment, fire protection, garbage collection, public recreation, and street lighting. 9. Snow removal was added to the District’s functions in the late 1960s and is provided under direction of the District’s Board of Directors. 10. The District is limited in future growth potential and no annexation proposals have been brought before Placer LAFCo since the inception of the District. 11. Repairs and replacements will be necessary on an ongoing basis for both snow removal equipment and water delivery infrastructure. 12. The Capital Improvement List allows the District to accurately budget for future needs and ensures that infrastructure and facilities can be replaced and repaired when necessary. The annual budgets consider these items and fund them with the annual capital improvement assessment that is part of property taxes for lots within the service area. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-22 North Tahoe and Martis Valley MSR 13. The District’s Capital Improvement List identified the need for $160,000 in repairs and replacements for snow removal equipment from 2011 to 2016, and $637,000 in repairs and replacements for water service infrastructure. 14. The capital improvement assessment, along with any surpluses provided by the standard fees and rates, pays for any necessary capital improvements to the water system. Infrastructure needs and deficiencies are thus addressed by the ongoing assessment and budget process. 15. Water is pumped from one active well, while another well is used only on a backup basis. 16. Water supply regularly exceeds the amount needed for the service area, and the District has recently taken measures to support customer water conservation by installing water meters at each service address. 17. Because only ten additional residences remain to be built in the service area, both water supply and delivery appears to be adequate in the foreseeable future. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES 17. On an annual basis, the Talmont RID adopts a comprehensive budget and receives an audited financial statement. The FY 2013-2014 budget demonstrates adequate finances for the continued ability of the District to provide services, with a surplus of $2,907. 18. The District is funded through service charges, fees, and taxes. 19. The annual tax assessment collected from customers is used to fund capital improvements. Within the next several years, the District plans to implement several modest and specific capital improvements to maintain and support its infrastructure. It is recommended that any capital improvements be considered in light of available revenues and other potential funding sources to ensure that the scope of the proposed projects is congruent with funding availability. 20. Rates should continue to be reviewed and adjusted as necessary to fund District costs and provide for capital improvements as needed. 21. The Enterprise Fund is managed efficiently. In most years, the RID’s total revenue is approximately $300,000 per year and expenses average approximately $187,000 per year18. Revenue that is in excess of expenses is held in reserves for use during emergencies19. It is recommended that the RID provide more information about its reserve accounts and provide audited financial statements for a minimum of three fiscal years to LAFCo, when LAFCo prepares the next MSR, in approximately five years. 22. Utility bills comprise 17% of the RID’s monthly expenditures and they are one area in which the District may wish to consider implementing projects to improve energy efficiency and thus lower utility bills. Electricity to power the wells to pump groundwater is likely the RID’s largest energy use. Within the next ten years, it is 18 CA Controller’s Office website at: < https://bythenumbers.sco.ca.gov/finance-explorer/view-by- special-district>. 19 Talmont RID’s response to LAFCo’s Request for Information for MSR. Sept. 2013. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-23 North Tahoe and Martis Valley MSR suggested that the RID develop a plan to utilize green technology, energy efficient pumps, or other mechanism to lower utility bills. 23. The District practices cost reduction through careful purchasing, bidding processes, and other mechanisms. 24. In the short-term, no additional cost-avoidance opportunities have been identified at this time. STATUS OF, AND OPPORTUNITIES FOR, SHARED FACILITIES 25. The District uses its equipment garage for snow removal equipment and as a meeting facility for the District Board of Directors. 26. No other opportunities for facility sharing have been identified. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATIONAL EFFICIENCIES 27. The District demonstrated accountability through its prompt disclosure of information requested by LAFCo for preparation of this MSR. 28. Board meetings are publicly noticed and comply with the Brown Act, California’s open meeting law. They are held every other month. 29. No boundary changes are pending or proposed at this time. 30. The District follows standard accounting procedures. 31. All Board members have access to District data, records and information. 32. The District has adequate public outreach, with a public website featuring meeting minutes, meter readings, information, rates, reports and the capital improvement schedule. 33. The District does not currently have a strategic plan that outlines its mission statement, vision statement, and goals and objectives. Such a strategic plan could help the District could improve upon 1) planning efforts, 2) accountability and transparency. 34. In 2010, the Governor approved Senate Bill 1023 (Wiggins) to create an expedited procedure for converting resort improvement districts and municipal improvement districts that operate under archaic statutes into community services districts, without substantive changes to their powers, duties, finances, or service areas. It is recommended that Talmont RID work with LAFCo to consider a process to convert the RID to a Community Service District. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-24 North Tahoe and Martis Valley MSR 17.13: REFERENCES Gregg, Libby. Administrative Supervisor, Talmont Resort Improvement District. Placer Local Agency Formation Commission: 2013 Municipal Service Review Update: Districts/Agencies in North Tahoe & Martis Valley: Information Request. August 2013. Gregg, Libby. Administrative Supervisor, Talmont Resort Improvement District. Email correspondence. 5, 7, 8 October 2013. McClintock Accountancy Corporation. Talmont Resort Improvement District, Tahoe City: Financial Statements and Independent Auditor’s Report: For the Year Ended June 30, 2012. Placer County Grand Jury. 2009 – 2010 Grand Jury Responses. December 22, 2010. 96 pages. Available on-line at: <http://www.placer.courts.ca.gov/grandjury/2009- 2010/Final_Response_2009-2010.pdf >. Accessed 23February 2015. South Tahoe Public Utility District. Tahoe-Sierra Integrated Regional Water Management Plan. July 2014. Prepared by Kennedy/Jenks Consultants. 1138 pages. Available on line at <http://tahoesierrairwm.com/wp-content/uploads/2014/07/T-S-IRWMP_July- 2014_lo-res.pdf>. Accessed February 23, 2015. Talmont Resort Improvement District. Annual Budget: 1 July 2013 – 30 June 21014. 31 Talmont Resort Improvement District. Compiled Financial Statements. 31 March 2013. Talmont Resort Improvement District. Compiled Financial Statements. 31 December 2012. Talmont Resort Improvement District. Compiled Financial Statements. 30 September 2012. Talmont Resort Improvement District. Comprehensive Depreciation: GAAP: For the Period July 1, 2012 to June 30, 2013. Talmont Resort Improvement District. Hydrant Replacement Priority. June 2010. Talmont Resort Improvement District. Ordinance No. 2011-01 of the Talmont Resort Improvement District Establishing Rules, Regulations, Rates and Charges Governing Use, Operation, and Management of the District Water System Facilities and Snow Removal Services; and Revoking all Previous Water Ordinances and Resolutions, to the Extent that They Are Inconsistent with this Ordinance. 15 March 2011. <https://www.sites.google.com/site/talmontdistrict/information-history>. Accessed 3 October 2013. Talmont Resort Improvement District. Talmont District: Capital Improvement Schedule. 24 July 2011. https://www.sites.google.com/site/talmontdistrict/capital-improvement- schedule. Accessed 5 October 2013. Talmont Resort Improvement District. Talmont District: Changes to Ordinance 2011-01- Effective 7/1/2013, including Schedule A: Water and Snow Rates and Schedule B: Water and Snow Fees. Accessed 5 October 2013. Talmont Resort Improvement District. Talmont District: History. <https://www.sites.google.com/site/ talmontdistrict/information-history.> Accessed 3 October 2013. Talmont Resort Improvement District. Water Distribution Plan. 20 May 1974. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-25 North Tahoe and Martis Valley MSR Talmont Resort Improvement District. Annual Water Quality Consumer Confidence Report 2012. <https://www.sites.google.com/site/talmontdistrict/consumer-confidence- report>. Accessed 30 October 2013. USDA. U.S. Forest Service. Lake Tahoe Watershed Assessment. Volume 1. 2000. Dennis D. Murhy and Christopher M. Knopp, Editors. Chapter Six: Social, Economic, and Institutional Assessment. Mark Nechodom, Rowan Rowntree, Nick Dennis, Hank Robison, and Jamie Goldstein. Gen. Tech. Rep. PSW-GTR-176. Albany, CA: Pacific Southwest Research Station, Forest Service, US Department of Agriculture; 753 p. Available on line at: <http://gis.fs.fed.us/psw/publications/documents/ psw_gtr175/psw_gtr175_ch6.pdf>. Accessed 23February, 2015. US Department of Commerce. www.census.gov. Accessed 15 October 2013. Wikipedia. Sunnyside-Tahoe City, California. <http://en.wikipedia.org/ wiki/Tahoe_City,_CA>. Accessed 15 October 2013. Draft Final MSR, August 2018 Chapter 17, Talmont RID 17-26 North Tahoe and Martis Valley MSR C 18 HAPTER TRUCKEE TAHOE AIRPORT DISTRICT Photo courtesy of www.google.com/maps (street view) Table of Contents 18.1: Agency Profile ....................................................................................18-2 18.2 Overview of Agency .............................................................................18-2 18.3: Accountability and Governance ...............................................................18-5 18.4: Management Efficiencies and Staffing ........................................................18-6 18.5: Population and Growth .........................................................................18-8 18.6: District Services ................................................................................ 18-14 18.7: Infrastructure and Facilities ................................................................. 18-17 18.8: Financing ........................................................................................ 18-20 18.9: Challenges ...................................................................................... 18-25 18.10: Service Adequacy ............................................................................ 18-26 18.11: Determinations ............................................................................... 18-27 18.12: References .................................................................................... 18-29 Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-1 North Tahoe and Martis Valley MSR 18.1: AGENCY PROFILE TRUCKEE TAHOE AIRPORT DISTRICT Type of District: Airport District Enabling Legislation: California Airport District Act: Public Utilities Code Sections 22001 –et seq. Functions/Services: Airport operations Main Office: 10356 Truckee Airport Road, Truckee, CA 96161 Mailing Address: Same PHONE NO.: 530-587-4119 Fax No.: 530-587-2984 WEB SITE: WWW.TRUCKEETAHOEAIRPORT.COM EMAIL: INFO@TRUCKEETAHOEAIRPORT.COM General Manager: Kevin Smith Email: kevin.smith@truckeetahoeairport.com Phone: 530-587-4119 Ext 105 Governing Body: Board of Directors Term Expires John B. Jones, Jr., President December 2018 James Morrison, Vice President December 2018 Teresa O’Detter, Board Member December 2020 Rick Stephens, President December 2020 Lisa Wallace, Board Member December 2020 Meeting Schedule: 4th Wednesday of each month Meeting Location: Airport Administrative Building, Community Room, 10356 Truckee Airport Road, Truckee, CA at 4:30 PM. Date of Formation: May 12,1958 Other: Multi-county district serving Placer County and Nevada County Principal County: Placer County 18.2 OVERVIEW OF AGENCY SUMMARY DESCRIPTION OF EXISTING SERVICES The Truckee Tahoe Airport District (TTAD or District) provides airport services to eastern Placer and Nevada counties, and beyond. This is the second Municipal Service Review (MSR) for the District. TYPE AND EXTENT OF SERVICES TTAD is a California special district, created in 1958 in accordance with the California Airport District Act. The District was formed to provide aeronautic services to residents in Placer and Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-2 North Tahoe and Martis Valley MSR Nevada counties, including operation of the Truckee Tahoe Airport and related facilities and infrastructure. TTAD operates under permits granted by a variety of local, State, and federal departments. These include Placer County Department of Environmental Health, California Department of Transportation (Aeronautics Division), U.S. Environmental Protection Agency, and the Federal Aviation Administration. District staff indicates that operation under the laws applicable to special districts are conducive to quality provision of airport services and allows the District to meet public and user needs efficiently and effectively. See Figure 18-1 for the district boundary and the currently adopted Sphere of Influence. LOCATION AND SIZE The District boundaries encompass 485 square miles of unincorporated territory in eastern Placer County and eastern Nevada County. GIS data indicates that within TTAD’s boundaries, there are 25,825 parcels within Placer County and 18,128 parcels within Nevada County. The Truckee-Tahoe Airport lies in the center of Martis Valley adjacent to the Town of Truckee. The Airport property consists of 1.88 sq. miles (1,200 acres) and it is situated at an elevation of 5,900 ft. above mean sea level. Although the community of Truckee is the socioeconomic center of the District area, the airport serves a wide region including Tahoe City, Incline Village, Kings Beach, Tahoma, and Donner Summit. FORMATION This District was created by a resolution of the Placer County Board of Supervisors (Resolution 58-63), following a vote of residents in the affected area in 1958, to oversee the Truckee Tahoe Airport and its operations. The state enabling legislation (Principal Act) that authorized the formation and operation of the District is the California Airport District Act: Public Utilities Code Sections 22001 – 22909. BOUNDARY HISTORY The District was initially formed in 1958. Since then, there have been no other changes to the District boundaries. The boundaries include portions of both Placer County and Nevada County. Placer County has the majority of assessed value of land, and is therefore, the Principal County, and under Placer LAFCo jurisdiction. SPHERE OF INFLUENCE The District’s Sphere of Influence (SOI) was approved by LAFCO on April 1, 1986 and it is contiguous with the District’s boundary. District staff noted that the Sphere of Influence boundary is adequate for projected future needs of the District (TTAD, 2013). Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-3 NEVADA CO. UV 89 er v Ri e §¨¦ cke 80 Tru South Yuba River Donner Lake UV 267 T r u c k e A mericanRiver e R iv e r UV 28 NorthFork UV 89 PLACER CO. UV 89 French Meadows Reservoir River Lake Tahoe n a c eri m A k Hell Hole Reservoir or F dle Mid R u b ico n ± R iv e River r SouthForkRubicon EL DORADO CO. Truckee Tahoe Airport District Boundary and Sphere of Influence 0 1 2 Placer Co. District Boundary from Placer County GIS. Miles Nevada Co. District Boundary from Nevada County GIS. Figure 18-1 TRUCKEE TAHOE AIRPORT DISTRICT North Tahoe and Martis Valley MSR EXTRA-TERRITORIAL SERVICES The airport’s physical infrastructure is limited to property that the District owns within its service area boundaries. The District provides airport and related services to residents and businesses located both within and outside the District’s boundaries. AREAS OF INTEREST No specific areas outside the District boundaries have been identified that require services from the District. 18.3: ACCOUNTABILITY AND GOVERNANCE The District is governed by a five member Board of Directors, who are elected to four-year terms by registered voters within the District boundaries. The current Board members are as follows: Board of Directors Term Expires John B. Jones, Jr., President December 2018 James Morrison, Vice President December 2018 Teresa O’Detter, Board Member December 2020 Rick Stephens, President December 2020 Lisa Wallace, Board Member December 2020 Directors receive $100 in compensation per Board meeting – not to exceed four meetings in any one month. Additionally, Directors are eligible to receive miscellaneous travel expenses and health insurance premiums, subject to review by the full Board. The most recent contested election was in the Presidential Election of November 2012, in which four candidates vied for three Board positions. Election turnout District-wide was 59.5%. Two seats were filled by appointment of the Placer County Board of Supervisors in lieu of election in November 2014. Regularly scheduled public meetings of the Board are held on the 4th Wednesday of each month. The meetings are held at the Airport Administrative Building, Community Room, 10356 Truckee Airport Road, Truckee, CA at 4:30 PM. All meetings are publicly posted at the District Administrative Building at least three days prior to Board meetings. The meetings are streamed live over the internet and are broadcast on the local access television station. The District’s Attorney attends each meeting to ensure compliance with the Brown Act. There is an open public comment time at the beginning of each meeting for items not on the agenda and public comment is allowed during the meeting for each agenda item. The District’s website (http://www.truckeetahoeairport.com) contains meeting agendas, meeting minutes, and other applicable information. The District also sends Board agendas to a mailing list of people and organizations who have requested to be on the mailing list (TTAD, 2013). It is important for local government agencies such as TTAD to be trustworthy, transparent, and to act in the public’s interest rather than in self-interest. Transparency is particularly Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-5 North Tahoe and Martis Valley MSR important to TTAD and in early 2015, TTAD received a “District Transparency Certificate of Excellence” from the Special District Leadership Foundation1. In summary, TTAD and its activities undergo a variety of public review procedures, including review by the California Department of Transportation (Caltrans) Division of Aeronautics and financial review by independent auditors. There are sufficient mechanisms in place to ensure that actions and operating procedures of the District are open and accessible to the public. The Board of Directors is supported by its staff and by the Airport Community Advisory Team, which is comprised of community volunteers. The Airport Community Advisory Team formulates recommendations which are presented to the Board of Directors. 18.4: MANAGEMENT EFFICIENCIES AND STAFFING The TTAD operates under the leadership of an elected Board of Directors (described above), with a General Manager providing daily oversight and management of staff and resources. There are currently 20 FTE and 2 Seasonal employees of the District as shown in the Organization Chart, Figure 18-2, below. This is a slight increase from the 19 CONTACT INFORMATION: employees the District had in 2003 (TTAD, 2013). KEVIN SMITH GENERAL MANAGER The General Manager is responsible for the 530-587-4119 EXT 105 day-to-day operations and financial kevin.smith@truckeetahoeairport.com accountability for the District. The General Manager directs, coordinates, and reviews all aircraft operations, maintenance of the airfield and buildings, community relations, and financial matters of the airport. The District’s General Manager received the Excellence in Government Award from the Truckee Donner Chamber of Commerce in October of 2012 (TTAD, 2013). For the ten highest paid employees of the District, the average annual salary2 is $84,550. When adding in employee benefits such as sick time and health insurance costs, the average cost per employee (for the ten highest paid) is $118,314. 1 Special District Leadership Foundation is at:<http://www.sdlf.org/#!current-certificates-and-recognitions/ck30> 2 As reported to: <http://transparentcalifornia.com > Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-6 North Tahoe and Martis Valley MSR Figure 18-2: TTAD Organization Chart Board of Directors (5) Airport General Manager Community (1) Advisory Team Director Of Director Of Director Of Aviation & Finance & Operations & Community Administration Maintenance (1) Services (1) (1) Aviation & Aviation & Operations & Community Community Safety Accounting Clerk Maintenance District Clerk (1) Services Manager Services Program Coordinator (1) (1) Supervisor (2) (1) Coordinator (1) Ops & Ops & Seasonal Workers Maintenance Maintenance (2) Techs (8) Clerk (1) In addition to the formal employees of the District, TTAD also has several contractual positions including Technical Aviation Consultant, Geographic Information Systems (GIS) Support Consultant, Multilateration (MLAT) Support Consultant, Information Technology (IT) Support Consultant, District Engineer, and District Counsel. Since these services are provided via contract, the District is not responsible for providing retirement, health and other standard benefits. TTAD’s overall management and staff structure appear to be operating efficiently. The District is fiscally solvent, stable, and carries no long-term debt. All required permits for operation and provision of services are up-to-date. Management is considered efficient at providing aeronautic services to residents of Placer and Nevada counties. The current staff organization appears to effectively serve the basic functions of the District and no recommendations for alteration are proposed herein. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-7 North Tahoe and Martis Valley MSR Community Relations A large part of management’s responsibilities is maintaining positive community relationships. Part of community relationships is handling complaints. The District does have established procedures for accepting complaints. Aviation customers may send complaints regarding general issues to the District Clerk; however these types of complaints are not common. Staff submits a quarterly report to the Board that logs and analyzes the number and type of complaints. This report entitled “Community Comments & Operations Report” is available on the District’s website as part of Board meeting packets. TTAD received 61 noise/annoyance complaints in 2012 (TTAD, 2013) and received 272 complaints regarding aircraft in the year 2014 (TTAD, 2015). Noise and annoyance complaints are directed to the Aviation and Community Services Director who aims to ensure best management practices are utilized to reduce noise and other annoyances, consistent with the 2004 Truckee Airport Jet Noise Limits Resolution. The Airport maintains a voluntary, but strongly requested flying curfew between 10pm and 7am as part of its good neighbor policy. In addition, the District initiated ‘Fly Quiet’ procedures in 2001 in order to reduce flight-related noise. The airport also supports a variety of community services that are aviation related or that serve as an adjunct to management of the airport as listed below. • Truckee Tahoe Air Show & Family Festival (see http://truckeetahoeairshow.com/) provides a family friendly event and a portion of revenues generated support local non-profit youth organizations. The Air Show typically occurs during the summer and features aerial performances, vendor booths, and static aircraft displays. • A webcam (or web camera) uses a computer to send live images of the airport to internet users across the world. Many people utilize the Airport webcam to check snow conditions and other weather situations. The webcam runs 24/7 (see https://truckeetahoeairport.com/webcam). • Waddle Ranch is owned by the District and jointly managed with the Truckee Donner Land Trust. This ranch property serves to secure open areas around the Airport to remove potential future impacts that the Airport may have on developments. • Ponderosa Golf Course is owned by TTAD and is leased to Truckee Donner Recreation and Park District. The golf course serves to secure open areas around the Airport to remove potential future impacts that the Airport may have on developments. 18.5: POPULATION AND GROWTH The existing population and projected future growth are analyzed in MSRs because they are directly related to existing and future demand for most public services. POPULATION The size of the existing population throughout the Truckee-Tahoe Airport District boundary area is substantially affected by seasonal variations, distinct user groups, and the abundance Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-8 North Tahoe and Martis Valley MSR of second homes. It is beyond the scope of this MSR to project seasonal populations; although rough estimates are provided based upon studies that describe and characterize some of the seasonal population dynamics along with the visitor accommodations are referenced herein. TTAD’s boundaries encompass several distinct sub-regions including: 1. Tahoe City 2. North Tahoe 3. Squaw Valley 4. Alpine Springs 5. Northstar 6. Truckee 7. Donner Summit/Sierra Lakes The population in these sub-regions, with the exception of Truckee, is described within this MSR in other chapters. Adding the population in these sub-regions together yields the population residing within TTAD’s boundaries, as shown in Table 18-1, below. Table 18.1: Existing Population in Six Sub-Regions of TTAD’s Boundary Sub-Regions in TTAD’s Existing Permanent Estimated Boundary Population Current Peak Visitor Population3 Tahoe City 8,524 4 17,307 North Tahoe 5,486 11,1385 Squaw Valley 950 3,5006 Alpine Springs 191 1,5467 Northstar Community 136 12,000 Services District Truckee 17,8978 21,4739 Donner Summit/Serene 298 2502 Lakes Total in TTAD 33,482 69,466 Based on the data shown in the above table, it is estimated that TTAD’s boundaries encompass an existing permanent population of 33,482 persons. The overnight visitor 3 This column shows the # overnight visitors. (Day-use only visitors are not included.) 4 See Chapter 14 for details. 5 Calculated from total population of 14691 (=5523*2.55 persons per household). Subtracted 5507 = 9184. 6 1315 housing units from absentee owners (i.e. visitors) x 2.55 persons per household. Please note that several thousand move visitors could be accommodated in hotel rooms located within the District. 7 Overnight visitor population for ASCWD calculated from 653 units x 2.55 persons per household and 89% absentee owner unit rate. 8 Calculated from 16211 persons in Town of Truckee per DOF data on website: http://www.townoftruckee.com/departments/planning-division/growth-and-development/truckee-population- and-housing-estimates plus 1686 persons in Martis Valley per 2010 census. 9 Calculated from 6692 vacation homes in Truckee plus 1729 vacation homes (not permanently occupied) in Martis Valley * 2.55 persons per household. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-9 North Tahoe and Martis Valley MSR population during peak season is estimated at 69,466 persons as of the year 2015. The Town of Truckee represents 54% of the permanent population and 31% of the visitor population. PROJECTED GROWTH AND DEVELOPMENT Land Use Planning Documents Projections for future development and hence increased service demands within the Martis Valley, North Lake Tahoe, and the Highway 89 Corridor areas comprising TTAD’s boundary area are based on information provided in the 1994 Placer County General Plan and related area plans, the 1995 Nevada County General Plan, the 2003 Martis Valley Community Plan, the 2025 Town of Truckee General Plan, the Tahoe Regional Planning Agency documents and other sources. At the time when the Placer County portion of Martis Valley Community Plan was completed in 2003, and the Truckee 2025 General Plan was updated in 2006 (and updated again in 2009), the area was in a phase of rapid growth and development, the recent economic downturn was unforeseen and, as a result, both plans have overestimated growth. It is important to note, however, that planned capacity for growth still remains. See discussion below under Town of Truckee General Plan. Future population growth within the North Tahoe and Martis Valley region is dependent upon zoning and general plan policies and land-use designations in the region. Regional population and zoning/general plans are described in detail in the Introduction (Chapter 3) of this MSR. The three local land use jurisdictions that have authority to grant entitlements to new development within TTAD’s boundaries include Nevada County, Placer County, and the Town of Truckee. Additionally, there are several federally managed properties located near the airport including the Martis Creek Lake National Recreation Area (U.S. Army Corps of Engineers) and the Tahoe National Forest (U.S. Forest Service). The Placer County General Plan which is largely applicable to the North Lake Tahoe Basin and Highway 89 corridor area was adopted in 1994. Each of the major communities in the Lake Tahoe area is also covered by area or community plans, which are being incorporated into the Proposed/Review Draft Tahoe Basin Area Plan, June 2015. The Placer County General Plan serves as an umbrella plan for the five sub-plans (which are listed Table 18-2) including: 2003 Martis Valley Community Plan; Proposed/Review Draft Tahoe Basin Area Plan; 1983 Squaw Valley General Plan and Land Use Ordinance; Proposed Draft Village at Squaw Valley Specific Plan; and the Alpine Meadows General Plan. For the most part (not including Alpine Meadows and Squaw Valley planning area), the Tahoe Basin is under the oversight planning control of the Tahoe Regional Planning Agency (TRAPA). The following table provides an overview of the various land use planning documents applicable to the TTAD boundary area and relevant to projections of future growth in the area. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-10 North Tahoe and Martis Valley MSR Table 18-2: Planning Documents Planning Document Jurisdiction Citation Year Adopted 2025 Truckee General Town of Truckee (Truckee, 2006 Plan 2006).10 Nevada County General Nevada County (Nevada County, 1996. Updated Plan (1996 with 2014 1996)11 2014) Land Use Element and Housing Element, 5th Revision) 1994 Placer County Placer County (Placer County, 1994 (Updated General Plan (as updated 1994)12 2013) May 21, 2013) • 2003 Martis Valley Placer County (Placer County, December 16, 2003 Community Plan13 2003)14 • Proposed/Review Placer County (Placer County, Not yet Adopted. Draft Tahoe Basin 2015)15 Revised Draft on Area Plan April 2016. • 1983 Squaw Valley Placer County (Placer County, 1983 General Plan and Land 1983) Use Ordinance • Proposed Draft Village Placer County (Squaw Valley Not yet Adopted. at Squaw Valley Real Estate, Draft on October Specific Plan LLC, 2014) 2014 • Alpine Meadows Placer County (Placer County, 1968 General Plan 1968)16 2012 Lake Tahoe Regional TRPA (TRPA, 2012)17 2012 Plan In addition to the planning documents listed in the Table above, the Airport and nearby neighborhoods are subject to the Truckee Tahoe Airport Land Use Compatibility Plan, 10 Truckee General Plan: http://laserfiche.townoftruckee.com/Weblink/PDF/ uloj2y45db1nasz14f00di45/19/ Town%20of%20Truckee%202025%20General%20Plan.pdf 11 Nevada County General Plan at: https://www.mynevadacounty.com/nc/cda/planning/Pages/Nevada-County- General-Plan.aspx 12 General Plan on County website at: <http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/PCGP/PCGP2013.pdf> 13 The urban core of Martis Valley is the Town of Truckee. Outlying areas will continue to support and be supported by the services found within the Town. The Nevada County portion of the 1975 plan area has not been updated, although the 2025 Town of Truckee General Plan covers their portion of the Martis Valley. 14 Martis Valley Comm Plan at: <http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/MartisValley/ MartisValleyCommPlanDec2003.pdf>. 15 <http://www.placer.ca.gov/departments/communitydevelopment/planning/tahoebasinareaplan> 16 Alpine Meadows GP at: <http://www.placer.ca.gov/~/media/cdr/Planning/CommPlans/NTahoeCPs /AlpineMeadowsGeneralPlan.pdf > 17 LT Regional Plan, 2012 at: <http://www.trpa.org/regional-plan/> Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-11 North Tahoe and Martis Valley MSR approved in December 2004, by the Foothill Airport Land Use Commission. This Compatibility Plan promotes compatibility between the airport and surrounding land uses by establishing compatibility criteria applicable to the review and approval of the design of new development. The Airport District is working with NCTC to update this plan in 2016/2017. Projected Population Numbers Future population growth within the boundaries of TTAD is only one indicator of future service demand at the airport. However it is important to analyze this indicator since it is part of the equation. The 2004 MSR estimated the population growth rate within TTAD’s boundary area at 2% annually. This projected growth rate never materialized, in part due to the national recession that started in 2008 and partly due to other factors. For planning purposes TTAD uses the population growth estimated provided in its 2014 Appropriations Limit Calculation which was calculated using the Annual Percent Change in Population (minus exclusions) provided by the California State Department of Finance. The rates of population growth were a negative 0.35% for Nevada County and a positive 0.56%, for Placer County. For this MSR, a new analysis was conducted using equivalent dwelling units (EDUS) as a metric to relate to population growth. The projected EDU’s shown in in Table 18-3, below, for the years 2017 to 2032 are based upon anticipated future population growth from the total growth in the 6 sub-regions. The economic downturn from 2009 to present may have resulted in pent up demand for development. For example, projected planned growth associated with the 2025 Town of Truckee General Plan has not occurred on pace with expectations. The same can be said for Northstar-at-Tahoe. Northstar-at-Tahoe will experience growth that should approach buildout by 2034 (See Northstar CSD MSR). Other resort communities (Tahoe City, Kings Beach, etc.) in the Lake Tahoe Basin are not expected to achieve a high level of growth. The projections in Table 18-3 reflect a more modest and conservative increasing growth curve through 2032. TABLE 18.3: EDU PROJECTIONS WITHIN TTAD BOUNDARY AREA Projections 2003 2008 2012 2017 2022 2027 2032 EDUs 35,374 39,150 40,572 42,557 44,857 48,195 51,792 Percent change -- 11% 4% 5% 5% 7% 7% Percent change per -- 2% 0.90% 1% 1% 1.50% 1.50% year Total (i.e. permanent plus visitor) Population 108,520 114,385 122,897 132,069 Calculated from EDU’s18 Data Source: 1) Table 16.3, T-TSA EDU Projections, 2) EDU data from Chapter 7, Donner Summit Public Utility District, and 3) EDU data from Chapter 11, Sierra Lakes County Water District. 18 2.55 persons per household is the metric used to convert EDUs into population, based on data from 2010 census and more recent data from CA Dept. of Finance. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-12 North Tahoe and Martis Valley MSR In the year 2032, the area is expected to have a total population of 132,069. It is assumed that 65% of the dwelling units are owned by absentee owners. DISADVANTAGED UNINCORPORATED COMMUNITIES As described in Chapter 3, LAFCo is required to consider the provision of public services to disadvantaged unincorporated communities (DUCs). Senate Bill (SB) 244 requires LAFCo to identify and consider disadvantaged unincorporated communities (DUCs) when preparing MSRs and Sphere updates for cities and special districts that provide sewer, water, or structural fire protection services. Although TTAD does not provide critical services such as sewer, water, or structural fire protection, information regarding DUCs within TTAD’s boundaries is provided herein to portray socio-economic information. A DUC is defined by the Water Code as one in which the median annual household income (MHI) is 80 percent of the statewide average. In 2010, the statewide MHI was $60,883; 80 percent of that is $48,706. Severely disadvantaged communities are defined as areas with a median income of less than 60% of the State's median household income. Relevant data were reviewed for the TTAD boundary area. Figure 18-3: DUCs Per DWR Two DUCs have been identified within the TTAD boundary, its SOI, and/or adjacent areas. The California Department of Water Resources (DWR) has developed a methodology to determine the location of DUCs using the census-designated places19 (CDPs). DUC status is determined based on the DUC definition provided in DWR's Proposition 84 and 1E Integrated Regional Water Management Guidelines, dated August, 2010. DWR has developed a mapping tool to help determine which communities in an Integrated Regional Water Management (IRWM) region meet the DUC median household income (MHI) definition for grants20. The maps and geographic information system files are derived from the US Census Bureau's American Community Survey and are compiled for the five-year period 2006-2010. DWR has included, in the maps, a calculated field which indicates the DUC status for different census 19 The U.S. Census Bureau identifies “census designated place” as the statistical counterpart of a city in that it is a named place with a concentration of residents, housing, and commercial activity, but is located in a county’s unincorporated territory. 20 Department of Water Resources IRWM Grant Program, Disadvantaged Communities (DAC) Mapping Tool. <www.water.ca.gov/irwm/grants/resourceslinks.cfm>. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-13 North Tahoe and Martis Valley MSR geographies (Place, Tract, and Block Group). Within TTAD’s boundaries two areas, Soda Springs and Kings Beach are recognized by the Department of Water Resources as DUCs as shown in Figure 18-3. The median household income as of July 1, 2015 for the Kings Beach Census Designated Place was $40,621 and for the Soda Springs21 CDP was $44,621. Additionally, data from the California Department of Finance22 has mapped areas of Figure 18-4: High Income Areas Per Ca Dept. Of Finance Low unemployment / low poverty in order to exclude these designated areas from the New Employment Credit program. The areas shown in the map below have incomes which are higher than average. Another indicator of income is determining whether a census tract is eligible for special home financing by California Home Financing Agency. There are no neighborhoods in the North Tahoe/Martis Valley region that area eligible23 for this type of home financing because median incomes are too high to qualify. 18.6: DISTRICT SERVICES SERVICE OVERVIEW The District provides aviation services at the Truckee Tahoe Airport. Although the airport is primarily utilized for general aviation, there are also a few semi-commercial small private jet companies. The airport is attended seven days a week, 7am - 9pm. The Federal Aviation Administration (FAA) lists the Truckee Tahoe Airport as a general aviation facility and it is NPIAS (National Plan of Integrated Airport Systems) airport number 02366-A (TTAD, 2013) and its FAA assigned identification code is KTRK. Being listed as a NPIAS airport allows TTAD to be included in the Federal Airport Improvement Program (AIP), and therefore eligible for grant funding for airport improvements. The District serves several types of customers including: • itinerant (nomadic) pilots; • home-based pilots (primarily regional customers); • constituents (members of the public that utilize airport facilities) (TTAD, 2013); and • Surf Air, a private membership commuter airline which operates a Pilatus single- engine turboprop aircraft out of the Truckee airport. Surf Air connects Truckee to Oakland, San Carlos, and Burbank airports. 21 Data Source: http://california.hometownlocator.com/ca/nevada/soda-springs.cfm 22 Data source: http://maps.gis.ca.gov/gobiz/dga/default.aspx 23 Data source: http://qct.huduser.org/tables/1statetable.odb?statefp=6.0&DDAYEAR=2013 Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-14 North Tahoe and Martis Valley MSR The Airport houses aircraft in220 hangars and 150 temporary or visitor aircraft tie-down spaces available (TTAD, 2013). However, the hangars and tie-downs are not fully occupied. Occupancy varies seasonally. The airport is home to 135 permanent aircraft and 67 visiting aircraft (TTAD, 2014). Ancillary services provided at the airport include: • one repair maintenance facility located at the airport; • one primary aircraft rental facility; • flight instruction service provide services to students at the airport; • hosting of emergency medical aircraft; • hosting of firefighting aircraft (usually on a seasonal or temporary basis); • snow removal service on the runways and associated area, but not aircraft de-icing; • commercial warehouse tenants who provide services in the retail and wholesale marketplace; and • other aviation related services at the airport such as aviation fuel, courtesy transportation, restrooms, catering, car-rental and crew services (TTAD, 2013). The Truckee Fire Protection District and Cal Fire provide on-site fire suppression support. On- site emergency medical support is provided by the Truckee Fire Protection District. The airport is home to one commercial business called fixed-base operators (FBO) who is granted the right by the airport to operate and provide aeronautical services such as fueling, aircraft rental, aircraft maintenance, flight instruction, aerial tours/sightseeing, and aircraft sales available for corporate and individual clients. Pre-heating services and aircraft maintenance are offered by this local FBO. The District grants a lease to the FBO business. Three rental car companies also operate at the airport: Hertz, Enterprise and Avis. In addition to its traditional customers, the District also has stakeholders that include nearby property owners and residents. SUPPLY/DEMAND LAFCo’s 2004 MSR noted that “While population projections within the service area are useful for estimating certain functions, the overall ability of the District to provide services will be better estimated by the projected number of aircraft utilizing the airport.” KTRK has about 23,000annual operations24 (an operation is a takeoff or landing). Historical trends suggest that airport operations have slowly decreased over the thirty year period. Recent operational numbers for the past five years however shows stabilized growth within a certain type of aircraft. A decreasing number of piston powered aircraft is becoming apparent. An increase in operations from turboprop and turbine aircraft continues to drive slow growth for KTRK. A majority (97%) of the aircraft operations at the airport are general aviation planes, 3% are air taxis, and less than 1% are military related. There are 202 aircraft that park at the airport on a permanent and/or temporary basis (TTAD, 2014). 24 Personal communication Kevin Smith, General Manager, Sept. 23, 2015 Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-15 North Tahoe and Martis Valley MSR Another factor that contributes to demand for aviation services is the amount of disposable income that visitors and residents have available to spend on high ticket items such as aviation (TTAD, 2014). As described in Chapter 3 of this MSR, median income for the North Tahoe /Martis Valley region is higher than the state average. The data presented in Table 18.4 indicates that service demand declined significantly during the first year of the recession in 2008. Since then, demand has risen steadily but has not yet reached the past peak demand levels (i.e. pre-recession levels). This indicates that the airport has some underutilized capacity and the physical ability to accommodate projected future growth. Table 18-4: Trends in Service Demands at Airport Service # Customers in # Customers # Customers in # Customers in 2003 in 2008 2012 2014 Airport1 26,733 11,031 20,082 22,764 1 The number of customers is measured by the number of aircraft counted on airport cameras. Each number represents one operation, which is either a departure or an arrival (TTAD, 2013). In 2014, there were average of 62 operations per day; however it is recognized that daily traffic is highly variable with peak aircraft traffic occurring in July and over holiday weekends. Of the 22,764 aircraft operations in 2014, 35% were conducted by piston-single engine, 5% Piston-Twin engine, 17% Turbo Prop, 16% Jet, 5% Helicopter and 22% Glider and ultralight (TTAD, 2015). In addition to the demand for direct use of the runway by aircraft, the supply and demand for aircraft parking is also considered. Parking for specific aircraft is provided through the use of tie-downs and hangars. The FAA forecasts modest growth in the domestic aviation market nationally. This growth will be in the turboprop and the turbo jet type aircraft. Significant changes to the fleet mix are expected for Tahoe Truckee airport over the next 30 years (TTAD, 2013 and TTAD, 2014). The June 2014 Draft Airport Master Plan (DAMP) presents aircraft-demand forecasts for the airport, based on historical rates at the airport, national (FAA) data, and anticipated changes in small aircraft operation and usage. The following table presents the projected growth demand for operations at airport. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-16 North Tahoe and Martis Valley MSR Table 18-5 Forecast Summary of Total Operations Year 2015 2020 2025 Number of Aircraft Operations 27,464 29,229 31,139 Source of data: TTAD, 2014 Based on data presented in the above table, the growth forecast between the years 2015 and 2025, is that aircraft operations will increase by 13 percent. Operational forecasts for the Truckee Tahoe Airport indicate that it has operational capacity (including sufficient facility size) to meet the needs of its customers now and over the next 15 years (TTAD, 2013). These projections appear to be based on all relevant data available, and indicate a realistic projection of future demand for airport services. Based on aviation demand forecasts made in the DAMP, infrastructure demands for future needs will focus on sufficient resources for airplane storage. The Airport Capital Improvements Program (ACIP) has been developed to provide for infrastructure and facility expansion based on current and projected demand. The District’s process to develop the ACIP and its future updates appear sufficient to allow for expansion of facilities and infrastructure necessary to meet the demands of future growth. 18.7: INFRASTRUCTURE AND FACILITIES This section describes existing infrastructure and reviews planned infrastructure to assess the District’s ability to provide high levels of service called for in District plans. As part of this assessment, several documents were reviewed including the 2009 Airport Capital Improvements Program25 (ACIP) and the 2014 Draft Airport Master Plan. Airport infrastructure is generally classified into two broad categories: airside and landside facilities. Airside facilities relate directly to the operation of aircraft and include all infrastructure, capital facilities, and equipment. Landside facilities are part of the transition between air transportation to surface transportation and also include support facilities for operation of FBOs. The Truckee Tahoe Airport Master Plan (AMP) was originally adopted in 1980 and updated in 2000, and is now being updated a second time with the 2014 Draft Plan available 25 ACIP is available on-line at: https://truckeetahoeairport.com/board_meetings/73/view_file?file=TAB+13c+-+ACIP+2009.PDF Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-17 North Tahoe and Martis Valley MSR for review on the District’s website. The AMP contains a list of all infrastructure and facilities associated with the airport. The airport is unique in that it straddles the county line between Nevada County and Placer County. While Placer County contains the greater portion of the assessed value of taxable properties within the District’s overall boundaries, most of the airport facilities are located in Nevada County. However, the southern ends of Runways 2/20 and 11/29, and approximately 33% of the contiguous airport property lie within Placer County. Two-hundred acres of land was originally acquired for the airport in the early 1960s. The airport opened in 1964 with one 5,000-foot runway oriented to the northwest/ southeast. Today, the 926 acre Airport property includes two runways; however runways have separate identification numbers for each direction of approach. Therefore, a total of four runways may sometimes be referenced in other documents. In this MSR we use a “/” to denote one runway that has two numbers to reflect the two directions of approach. Runway 11/29 is 7,000 feet in length by 100 feet wide, and is oriented from northwest to southeast. Runway 2/20 is 4,650 feet in length and 75 feet wide, and is oriented from northeast to southwest. All runways are paved asphaltic concrete (hard) surface and all runways have parallel taxiways. The elevation of the runways is approximately 5,900 feet above sea level (TTAD, 2013). The 2014 Draft AMP describes all runways as being in good condition. Other Airside infrastructure includes taxiways, lighting systems, navigational aides, and above-ground tanks that contain fuel. Landside infrastructure and facilities includes aircraft hangars, apron space, the administration building, warehouse and storage facilities, and other structures and equipment. A total of 219 aircraft can be parked in hangar storage and an additional 192 aircraft can be parked in apron space. In 2012, a new terminal building was constructed to include a pilot lounge, a pilot kitchen, a flight planning room, a customer service/UNICOM desk, public meeting rooms, and a restaurant. A children's playground and park are adjacent to this terminal building. The meeting rooms within this terminal are made available to non- profit groups such as American Youth Soccer, Girl Scouts, Toastmasters and the Chamber of Commerce. Emergency helipad sites are proposed in the future (TTAD, 2014). All facilities have been assessed in the AMP as in either good or excellent condition. Of the airport’s 926 acres, 328 acres is developed with aviation facilities and other assorted facilities, or is held open for aeronautical purposes. An additional 598 acres has the potential to be further developed at some point in the future. An example of the type of potential future development is the District’s agreement with Clear Capital for office space. Other non-aviation uses might also be proposed for future development on District owned property and the District has formed a “Non-Aeronautical Land Use Plan Ad Hoc Committee” to address this issue. The impacts of any future development will likely be evaluated on a project specific basis, consistent with CEQA and consistent with the Airport Master Plan which is currently being updated (2014 Draft Plan is available for public review). In addition to the 926 acre Airport property, TTAD has acquired interest in an additional Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-18 North Tahoe and Martis Valley MSR ±1,717 acres, which includes Waddle Ranch and the Ponderosa Golf Course. The purpose of these properties is to preserve land uses that are compatible with airport operations and to facilitate other aviation-related services, such as emergency heli-pads, in other parts of the District. The 2014 Draft Airport Master Plan is based upon previous master plans completed in 1980 and 2000. The 2000 Airport Master Plan suggested construction of two additional runways at some time in the future. One new runway could be parallel to the primary runway (11/29) to provide better separation between business jets and propeller aircraft. It could also be utilized for flight training. The second proposed runway could be used by sailplanes and constructed of turf. Enhanced instrument approach capabilities and land acquisition for additional hangar facilities were also proposed in the 2000 plan. These proposals from the 2000 Plan are being reevaluated in the 2014 Draft Plan. INFRASTRUCTURE NEEDS Infrastructure needs or deficiencies are described in capital facilities maintenance plans for: Structures, Pavement, and Forest Management. Additionally, the Draft 2014 Master Plan is evaluating long-term needs for construction of additional runways, improved instrument approach capabilities and additional hangar facilities. In the short-term, TTAD does have an adopted five-year Airport Capital Improvement Plan26 (ACIP). For 2015, the ACIP calls for the following improvements: • Runway 2/20 & Taxiway G – Saw and Seal New Joints • South Jet Apron Reconstruction • Hangar Taxilanes West G and GH Reconstruction • Remove Taxiway E and widen Apron A1 and A@ • Taxiway A Reconstruction. OPPORTUNITIES TO SHARE FACILITIES, SERVICES & STAFF MSRs analyze how local agencies share facilities, services, and staff because sharing is an indicator for government efficiency and collaboration. Part of the efficiency equation is cost savings, since it is cheaper to share facilities as compared to building new facilities. Although TTAD does not share facilities, services, or staff with other regional airports, they are actively 26 ACIP is available on line at: https://truckeetahoeairport.com/board_meetings/73/view_file?file=TAB+13c+-+ACIP+2009.PDF Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-19 North Tahoe and Martis Valley MSR engaged in sharing and collaboration with neighboring districts and local agencies including the Truckee Donner Recreation and Park District, Truckee Fire Protection District, and Tahoe City Public Utility District (PUD). Given the Airport’s proximity to the Town of Truckee, these two entities often discuss and work to resolve issues of mutual interest. TTAD owns the Ponderosa Golf Course, which is adjacent to the District’s boundary. The District leases the land to the Truckee Donner Recreation and Park District for $166,000 per year; however the rent is waived on an annual basis if the Recreation and Park District meets certain conditions set forth in the Lease Document (TTAD, 2013). TTAD maintains a mutual aid agreement with Truckee Fire Protection District to provide on- site fire, emergency medical support, and rescue response in the event of an aircraft incident at the Truckee Tahoe Airport. TTAD also has joint access to firefighting equipment specifically designed to combat aircraft incident fires. Cal Fire may also contribute towards on-site fire suppression support (TTAD, 2013). TTAD contributed approximately 8% of the cost towards acquisition of the Tahoe City Golf Course, in exchange for the opportunity to construct a heli-pad for use during an emergency. This golf course is jointly owned by Tahoe City PUD, Placer County, the North Lake Tahoe Resort Association, and TTAD and the course is operated consistent with a March 2012 memorandum of understanding27. 18.8: FINANCING This section evaluates the factors affecting the financing of services, operations and capital improvements for TTAD. TTAD operates as an Enterprise Fund, meaning that charges for services are intended to pay for the costs of providing such services. The District also relies on property taxes to support its operations, and utilizes Federal grant funds for capital improvement projects. Disclaimer: The financial information provided in this MSR section was accurate as of its writing in 2014. However, the District updates its financial information on an annual basis. Therefore, the financial information in this MSR has been superseded and readers are encouraged to read the newer financial statements and budgets published by the District on their website at: https://truckeetahoeairport.com/ . District Revenues and Expenditures for Fiscal Year (FY) 2011-2012, FY 2012-2013, and FY 2013-2014 are summarized in Table 18-6. The District’s Fiscal Year runs from October 1st through September 30th. District Audits are prepared by James Marta and Company. Refer to the District website for the actual audit reports. TTAD follows the General Accounting Standard Board Statement No. 34 (GASB 34) accounting standards (TTAD, 2013). 2727 MOU is on-line at: http://www.tahoecitypud.com/download/general/tcgcmou.pdf Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-20 North Tahoe and Martis Valley MSR 18-6 Summary of Revenues and Expenditures for Fiscal Years 2011-2012, 2012- 2013 and 2013-2014 Fiscal Year Ending 2011-2012 2012-2013 2013-2014 Revenues Operating $2,261,985 35.0% $2,571,464 31.8% $2,702,074 37.6% Revenue Non-Operating Revenue Property Taxes 4,312,620 66.8% 4,530,360 56.0% 4,604,584 64.1% Interest Income 56,009 0.9% 54,407 0.7% 62,273 0.9% Other Government 59,703 0.9% 962,252 11.9% 119,370 1.7% Funds Miscellaneous (234,912) (3.6%) (33,598) (0.4%) (308,443) (4.3%) Revenue (Loss) Total Revenues $6,455,405 100% $8,084,885 100% $7,179,858 100% Expenditures Operating Expenses Salaries & Wages 1,237,501 20.3% $1,300,540 17.0% $1,315,239 19.6% Employee Benefits 736,820 12.1% 638,881 8.4% 698,365 10.4% General & 1,438,913 23.6% 1,929,729 25.3% 1,897,816 28.3% Administrative Repairs & 1,099,794 18.0% 1,911,738 25.0% 896,464 13.4% Maintenance Depreciation 1,595,551 26.1% 1,853,450 24.3% 1,891,878 28.2% & Amortization Total $6,108,579 100% $7,634,338 100% $6,699,762 100% Expenditures Net Income (or $346,826 $450,457 $480,096 Loss) Change in Net $3,290,705 $884,292 $1,610,436 Assets Beginning Net $44,121,032 $47,411,737 $48,296,029 Assets Ending Net Assets $47,411,737 $48,296,029 $49,906,465 Source: TTAD Independent Auditor’s Reports - FY 2011-2012, FY 2012-2013, and FY 2013-2014 REVENUES While total District revenues have fluctuated over the three fiscal years, the general trend is upward, with the stabilization of property taxes after two years of decline in 2010 and 2011, and an increase in fuel sales. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-21 North Tahoe and Martis Valley MSR District revenue is divided into two main categories: Operating Revenue; and Non-Operating Revenue. Operating Revenue (and their respective percentage) is derived from landing fees (4%), aircraft storage fees (37%), fuel flowage fees (44%), concessions (2%), rents and leases (11%), and miscellaneous revenues (2%). Non-Operating Revenue (and their respective percentage) is derived from property taxes (96%), interest income (1%), and governmental funds (grants) (3%). Property taxes comprise around 60% of total District revenue, with an incremental increase each year (refer to Table 18-6). Placer County generates about two- thirds of the property tax revenue, with one-third coming from Nevada County. Since the Airport provides services to the general public, including individuals that live and/or work outside the District boundaries, fees for service are a significant revenue source, and contribute around 35% of the overall revenue of the District. The TTAD’s 2011 Strategic Plan requires that property tax revenue be allocated in the following manner: • Operations 20% • TTAD Portion of Grants 10% • Annoyance Reduction and Outreach Projects 25% • Other Capital Projects 15% • Land Purchase and Management 30% Additionally, funding for capital improvement projects has come from the Federal Aviation Administration (FAA).28 For 2014, the District received funding through the FAA Airport Improvement Program (AIP), including $1.1 million to complete pavement rehabilitation and airfield infrastructure projects. EXPENDITURES District Expenditures are divided into two main categories: Operating Expenses; and Non- Operating Expenses. Operating Expenses (and their respective percentage) include administration (including salaries, wages and employee benefits) (26%), and maintenance and operation (including landing areas (20%), terminal building and other buildings (5%), general shop and equipment (6%), cost of sales and services (21%), and depreciation and amortization (22%). As shown in Table 18-6, the District has shown a net positive income over the past three fiscal years, and has increased its ending net assets in each of these years. In February 2015, the District Directors approved a construction and lease agreement with Clear Capital, a real estate data firm, and the Directors allocated $1.61 million to start work on a 12,640-square-foot building intended to house Clear Capital offices and other uses. The $1.61 million in cost will be used for design and permitting of the building and was accommodated by transferring funds from the District’s reserve budget. The remaining 28 Details on 2015 capital improvements are on-line at: https://truckeetahoeairport.com/news/51- proposed-airport-improvement-projects Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-22 North Tahoe and Martis Valley MSR project cost, $2.48 million for construction, is projected to come from reserve funds and is budgeted for the District’s 2015-16 fiscal year. Grading and preliminary construction was planned to start on October 15, 2015. RATE RESTRUCTURING As an enterprise district, TTAD charges fees for services, as specified under a Master Fee Schedule. Current fuel prices are around $4.60 per gallon for both Jet A fuel and 100 LL fuel. Fuel sales comprise a significant revenue source for the District. Other fees include aircraft services (towing, lavatory service and aircraft jump start service). Auto parking fees range from $7.00 per night to $350 annually. Facility use fees for the Community Rooms range from $100 to $200 per hour for for-profit entities, and No Charge for non-profit entities. Long- term hangar space is based on a ‘per square foot’ basis between $0.346 and $0.409. Overnight tie-downs vary from $311 to $7,128 per year, depending on the type of aircraft. The Master Fee Schedule, adopted in May of 2013, is available for review on the District website. Many of the fees in the Master Fee Schedule are adjusted frequently based on cost of goods sold, consistent with TTAD’s Rates and Fees policy. Staff is currently working with consultants to revise the Primary Management and Compliance documents which will provide a review and update of the Master Fee Schedule. ASSETS AND LIABILITIES As reflected in Table 18-7, the District’s total net assets have increased slightly in each of the past three fiscal years. More significantly, the District’s Unrestricted Assets (in effect, the District’s Reserve Fund) has increased by over 10% per year. These funds have been designated by the Board of Directors as follows: $3.6 million for future capital projects; $2.75 million for land acquisition; $2.65 million for operating funds, and $500,000 exclusively for pavement maintenance. A total of $1.5 million has been ear-marked to address the not yet adopted Accounting Standard No. 68, which will require the District to show its net pension liability. TTAD has no outstanding debt (TTAD, 2013). TTAD does maintain insurance for professional activities (TTAD, 2013). Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-23 North Tahoe and Martis Valley MSR Table 18-7 Summary of Assets and Liabilities as of September 30, 2014 Fiscal Year Percent Fiscal Year Ending Ending Change Sept 30, Sept 30, 2013 Percent Sept 30, 2014 Assets and Liabilities 2012 Change Assets Current Assets $10,206,727 $12,268,557 17% $13,421,813 9% Restricted Assets 250,000 1,000,000 750,000 (Investments) Noncurrent 522,500 20,000 25,000 Receivable Capital Assets 36,687,710 37,336,450 2% 37,386,324 0% Total Assets $46,669,437 $50,377,507 7% $51,828,127 3% Liabilities Current Liabilities $2,160,761 $1,998,795 -8% $1,840,355 -8% Unrestricted Current Liabilities % Restricted Long Term Liabilities 96,939 82,683 -15% 81,317 -2% Total Liabilities $2,257,700 $2,081,478 -8% $1,921,672 -8% Net Assets Investment in Capital $38,687,710 $37,336,450 -4% 37,386,324 0% Assets Restricted 16,468 16,648 0% 16,648 0% Unrestricted 8,707,559 10,943,111 10% 12,503,673 12% Total Net Assets $47,411,737 $48,296,029 1% $49,906,465 3% Source: TTAD Independent Auditor’s Report - FY 2013-2014 COST AVOIDANCE MSRs describe measures that districts take to avoid unnecessary costs because it is important for the public sector to avoid waste and to be financially efficient. TTAD actively works to avoid costs through the following measures: • Utilizes its own property/building (i.e. Airport Administrative Building) to conduct District meetings space, thereby saving rental costs. • Participates in the SDRMA, a Joint Powers Authority formed for the purpose of providing risk management services to local government agencies. TTAD secures its Workers’ Comp insurance through SDRMA (TTAD, 2013). • Added a second tier to the employee pension program. The District has revised the employee insurance benefit to self-insure for a portion of the risk – savings in the first year approximated $100,000(TTAD, 2013). Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-24 North Tahoe and Martis Valley MSR 18.9: CHALLENGES TTAD faces challenges that are similar to those faced by every small airport including safety, climate change, resolving litigation, and real estate management. Although flying today is extremely safe, the Truckee Tahoe Airport does present unique geographic and climate issues that make safety awareness paramount. Between the years 2008 to 2012, nine crashes occurred at or near the Airport; although only one was fatal (MacMillan, 2012). Safety issues associated with the airport include: mountainous terrain; density altitude (in which the aircraft performs at an equivalent altitude based on the airport elevation and temperature – for KTRK, this can exceed 9,000 feet in the Summer); wind gusts/wind shear (terrain can cause shifting winds); glider plane activity in the airport proximity; fuel mixture (lean for higher elevation performance); and wildlife on the runway. In addition, at the present time, TTAD does not provide de-icing services. Climate change is another challenge that faces all airports. Currently, aircraft burn carbon- based fuels which directly contribute greenhouse gases to the atmosphere. Fuel efficiency, sustainable biofuels, and other aviation technology might provide solutions to the carbon problem. Related to this is Vehicle Miles Traveled that pilots and passengers expend driving to and from the airport, which also contribute to greenhouse gas emissions. Energy efficient cars and electric cars are becoming more common and TTAD may wish to consider facilities to support these future vehicular trends. The alternative to driving to the airport is bus service. Rail service to the Airport is not feasible at this time. TTAD has historically been involved with very few lawsuits. The only current outstanding litigation is a suit brought on behalf of TTAD against an entity that failed to comply with the terms of a contract. There is currently a settlement negotiated that will not impact the District’s finances in a negative manner (TTAD, 2013). TTAD’s Airport property does have some development potential and while this presents an opportunity to the District, it also present some challenges. There is revenue potential for developing this real estate for its highest and best use. Balancing the aviation uses with the non-aviation businesses that are located on District property will be an on-going challenge. Managing noise issues even while allowing for future development and expansion of the Airport will be an on-going challenge. The Airport currently has in place Noise Abatement Procedures, and while voluntary, are designed to reduce noise effects over residential areas and during night time hours. There are a variety of potential future states for the Airport and TTAD’s process for updating the Master Plan may address several of the possibilities. It will be important for TTAD to continue to work cooperatively with the Town of Truckee and other unincorporated communities near the Airport to resolve issues of mutual interest. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-25 North Tahoe and Martis Valley MSR 18.10: SERVICE ADEQUACY Service adequacy is an area of analysis focused on consideration of the overall ability of the TTAD to effectively provide airport services and on the appropriateness of physical boundaries of the District. Effectiveness of service can be indicated by the condition of infrastructure and permit (FAA and other) violations. TTAD’s infrastructure is reported to be in good shape. No permit or FAA violations have been noted. Determining the appropriateness of physical boundaries relates to the opportunities for merger or consolidation with other nearby districts. Eight airports are located within 30 nautical miles of Truckee Tahoe Airport: • Reno/Stead Airport, Reno, NV • Reno/Tahoe International Airport, Reno, NV • Dayton Valley Airpark, Carson City, NV • Carson Airport, Carson City, NV • Sierraville Dearwater Airport, Sierra County, CA • Minden-Tahoe Airport, Minden, NV • Lake Tahoe Airport, South Lake Tahoe, CA • Blue Canyon-Nyack Airport, Emigrant Gap, CA Consolidations of the TTAD with other nearby airports was briefly considered in the 2004 MSR for the District and found to be unnecessary at that time. Conditions have not changed since then, and merging TTAD with one of the above listed airports is not likely to be feasible. The physical boundaries of the District are appropriate for the service provided and for the established location of the airport. There are no identified opportunities for improvement of services by alteration of the physical boundaries of the District. The Airport was last inspected by Caltrans, Division of Aeronautics on April 29, 2015; no violations were identified. According to the inspection report, the conditions of the runway and markings on the runway are adequate. TTAD actively manages a wide range of tasks including safety and security, noise control, community relations, financial management, oversight of contracts and leases, facility Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-26 North Tahoe and Martis Valley MSR maintenance, compliance with federal grant conditions, and capital improvements. TTAD operates efficiently and is fiscally sound. 18.11: DETERMINATIONS GROWTH AND POPULATION PROJECTIONS 1. The current permanent population residing with TTAD boundaries is estimated to be 33,482 persons. The overnight visitor population during peak season is estimated at 69,466 persons as of the year 2015. 2. The growth rate of the Agency service area is approximately two percent in the Truckee and Squaw Valley areas and less than one percent in the North Tahoe special district areas. 3. While there is planned growth that has been a part of the various planning programs for many years, there are no projections, projects or plan updates on the horizon that would suggest that growth will exceed those levels reflected in the respective lead agency planning documents. DISADVANTAGED UNINCORPORATED COMMUNITIES 4. Within the TTAD’s boundary area, the communities of Kings Beach, Carnelian Bay, some neighborhoods within Tahoe City, and Soda Springs meet the states standard for DUCs of 80 percent of the state median family income. 5. This MSR describes how the core services water, sewer, and structural fire protection services are adequately provided to disadvantaged communities within eastern Placer County. TTAD is not responsible for assuring that these services are adequately provided to disadvantaged communities. 6. TTAD is reviewing the feasibility of providing EMS Heliports in the Kings Beach Tahoe Vista area which will provide additional services to DUCs. 7. The District currently has an education partnership with the Boys and Girls Club in Kings Beach to provide education programs centered on Aviation STEM initiatives. PRESENT AND PLANNED CAPACITY OF PUBLIC FACILITIES 8. The Truckee Tahoe Airport District is responsible for the safe operation of the Truckee Tahoe Airport. TTAD actively manages wide range of tasks including administration, safety and security, noise control, community relations, financial management, oversight of contracts and leases, facility maintenance, compliance with federal grant conditions, and capital improvements. TTAD operates efficiently. 9. The Airport Capital Improvements Program (ACIP) is sufficient to allow for expansion of facilities and infrastructure necessary to meet the demands of future growth. 10. The Truckee Tahoe Airport District has adopted an Airport Master Plan in 2000 which presents a reasonable projection of likely service demands. This Master Plan is currently being updated and a June 2014 Draft Master Plan is available on the Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-27 North Tahoe and Martis Valley MSR District’s website. Current plans and financing mechanisms appear sufficient to ensure that the District will be able to accommodate projected service demands. 11. Each Year TTAD updates in 5 year Airport Capital Improvement Plan (ACIP). The current FAA approved 2015 to 2020 ACIP clearly lists the projects needed to maintain the Airport. FINANCIAL ABILITY OF AGENCY TO PROVIDE SERVICES 12. The Truckee Tahoe Airport District has sufficient financing mechanisms in place to ensure short- and long-term provision of services within its current boundaries. The District maintains no long-term debt, and has financial reserves and assets sufficient to ensure financial stability. The District does not need to find additional sources of revenue to meet projected service demands. STATUS OF, AND OPPORTUNITIES FOR, SHARED FACILITIES 13. TTAD is actively engaged in sharing and collaboration with neighboring districts and local agencies including the Truckee Donner Recreation and Park District, Truckee Fire Protection District, and Tahoe City PUD. 14. TTAD often meets with representatives of the Town of Truckee to discuss and resolve issues of mutual interest. ACCOUNTABILITY FOR COMMUNITY SERVICE NEEDS, INCLUDING GOVERNMENTAL STRUCTURE AND OPERATION EFFICIENCIES 15. An appointed five-member Board oversees the management of the TTAD’s resources. TTAD meets its statutory financial reporting requirements that ensure its operations are conducted in an open and transparent manner. TTAD meets its fiscal accountability requirement to its customers through budgetary and financial reporting using its website as a communication channel. The Agency provides public notice of meetings, and posts agendas online as well as by email upon request. 16. The Airport Community Advisory Team, which is comprised of community volunteers, formulates recommendations which are presented to the Board of Directors. 17. A General Manager oversees the District administration and operations under the direction of the appointed Board. The Board and management work together in the identification of goals and issues and assignment of staff as appropriate for each type of service provided. 18. TTAD’s sphere of influence is congruent with its boundaries. TTAD has indicated that its SOI is sufficient. 19. The District maintains a website where current information about District activities, documents and updates is made readily available to the public. 20. The District demonstrated accountability in its cooperation with Placer LAFCo information requests. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-28 North Tahoe and Martis Valley MSR 18.12: REFERENCES California State Controller’s Office. Government Compensation in California Database. 2013. Accessed in July 2015. Available on-line at: < http://publicpay.ca.gov/>. Dean Runyan Associates, 2009. Placer County Travel Industry Assessment and Detailed Economic Impact Estimates, 2002-2008. March 2009. Placer County. General Plan Update. General Plan Background Report, Technical Appendices, Appendix A: Large Water Systems. September 25, 1992. Contributing authors include Crawford Multari & Starr, DKS Associates, Psomas and Associates, et. al. 382 pages. Placer LAFCo. Municipal Service Review for North Lake Tahoe and Martis Valley. 2004. Auburn, CA. Available on-line: <http://www.mynevadacounty.com/nc/lafco/docs/ Placer%20LAFCo%20MSRs/Area%20III,%20Public%20Review%20Draft/3.0%20Service%20D emand%20Projections.pdf>. MacMillan, Kevin. “Thursday plane crash is ninth in past four years at Truckee airport”. August 2, 2012. Tahoe Daily Tribune. Available on-line at: <http://www.tahoedailytribune.com/article/20120802/ARCHIVES01/120809961>. Accessed 7August2015. Tahoe Truckee Airport District (TTAD). Draft Report Airport Master Plan. Chapter 1 Inventory of Existing Conditions and Chapter 2 Aviation Forecasts. June 2014. Prepared by Mead & Hunt, Consultants. Available on-line at: <http://www.ttadmasterplan.org/draft- plan-docs/>. Tahoe Truckee Airport District (TTAD). Response to LAFCo’s Request for Information in Preparation of the MSR. October 2013. 21-pages. Tahoe Truckee Airport District (TTAD). Blog post “TTAD - History & Stats, Jun 20, 2015”. Available on-line at: <https://truckeetahoeairport.com/news/48-truckee-tahoe- airport-history-and-stats >. Accessed on 7August2015. Tahoe Truckee Airport District (TTAD). January 28, 2015. Memorandum from Michael Cooke, Manager of Aviation & Community Services, To: Community Members, Board of Directors, ACAT and Staff, Subject: Community Comments & Operations Report- 4th Quarter 2014. Available on-line at: https://truckeetahoeairport.com/board_ meetings/90/view_file?file=TAB+5a+-+Operations+and+Comment+Report+Q4+2014. pdf>. U.S. Department of Commerce (USDC), United States Census Bureau. 2010 Demographic Profile. American Fact Finder Website. Accessed on 5July2015. Available on-line at: <http://factfinder.census.gov/faces/nav/jsf/pages/community_facts.xhtml>. Draft Final MSR, August 2018 Chapter 18, Truckee Tahoe Airport District 18-29 North Lake Tahoe and Martis Valley MSR Chapter 19 CONCLUSIONS AND RECOMMENDATIONS This Municipal Service Review Update has been prepared in accordance with Section 56430 of the California Government Code. LAFCO’s municipal service review process is a means to improve the quality and consistency of data. By providing, analyzing, and sharing data, LAFCO supports collaborative planning and policy efforts. Ideally, service reviews provide a context for understanding the relationship between service options and regional issues, goals and policies. Regional planning initiatives present an opportunity for LAFCO to collaborate with service providers and planning agencies and to encourage alignment of goals and policies. This regional MSR focuses on the North Lake Tahoe/Martis Valley area of eastern Placer County and analyzes thirteen service providers including Alpine Springs County Water District, Donner Summit Public Utility District, Mckinney Water District, North Tahoe Fire Protection District, North Tahoe Public Utility District, Sierra Lakes County Water District, Squaw Valley Public Services District, Tahoe City Cemetery District, Tahoe Forest Hospital District, Tahoe City Public Utility District, Tahoe Truckee Sanitation Agency, Talmont Resort Improvement District, and the Truckee Tahoe Airport District. A fourteenth service provider, Northstar Community Services District was described in a separate 2014 MSR on file with Placer LAFCO. The previous MSR for these thirteen agencies in the North Tahoe and Martis Valley Area was approved by the Commission in 2004. This document presents an update to the 2004 MSR. SIZE OF AGENCIES/DISTRICTS Population Population size among the thirteen districts is highly variable. Of the thirteen districts studied in this MSR, the least populated district is the Donner Summit Public Utility District with a permanent population of 93 persons, as shown in Figure 19-1, below. The most populated district studied is the Tahoe Forest Hospital District with a permanent population of 53,878 within the District’s proper boundary including portions of eastern Placer County and Nevada County. Although Figure 19.2 shows that the Truckee Tahoe Airport District and the Tahoe Forest Hospital District have the same population size, in actuality, the Hospital District has a larger population. This is due to the Hospital District’s service to residents of the State of Nevada, who are not included in the population counts for this MSR. Tourism is the factor that has the biggest influence on the number of people agencies/districts are expected to serve. Draft Final MSR, August 2018 Chapter 19, Conclusions 19-1 North Lake Tahoe and Martis Valley MSR 4500 4000 3500 3000 2500 2000 1500 1000 500 0 DSPUD MWD ASCWD SLCWD TRID SVPSD Draft Final MSR, August 2018 Chapter 19, Conclusions 19-2 noitalupoP Small Sized Districts - Existing Population (2015) Visitor Population Permanent Population 120000 100000 80000 60000 40000 20000 0 noitalupoP Larger Sized Districts - Existing Population (2015) Visitor Population Permanent Population North Lake Tahoe and Martis Valley MSR Geographic Size of Agencies/Districts The geographic size of the thirteen districts included in this MSR varies widely. The smallest sized district is McKinney Water District at 266 acres (0.42 sq. mi.) as shown in Figure 19.3, below. The largest sized district is Tahoe Forest Hospital District at 390,585 acres (610 sq. mi.), as shown in Figure 19.4 (next page). In both Figures 19.3 and 19.4, the boundary area includes only the existing direct service area of each district and is depicted on the bottom of each bar (blue). The acreage of the sphere of influence for each district is shown on the top of each bar (yellow). 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Draft Final MSR, August 2018 Chapter 19, Conclusions 19-3 egaercA Figure 19.3: Acreage of Smaller- Sized Districts SOI Boundary North Lake Tahoe and Martis Valley MSR 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 TCCD TTAD TFHD (Note: TTAD’s Sphere of Influence is contiguous with its boundary.) As shown in Figure 19.4, above, the geographic size of the Tahoe Forest Hospital District is quite large compared to most independent districts in the state. To put its size into perspective, we can compare it to the size of Placer County, at a total of 961,800 acres1. The Hospital District’s boundary area plus its SOI area yields 586,620 acres, approximately 60% of the size of Placer County. Several of the Districts span multiple counties. The Tahoe Truckee Sanitation Agency spans three counties, Placer County, El Dorado County and Nevada County. The McKinney Water District and Tahoe City Public Utility District encompasses portions of both Placer County and El Dorado County. Districts that encompass portions of both Placer County and Nevada County include Donner Summit Public Utility District, Tahoe Forest Hospital District, and the Truckee Tahoe Airport District. SERVICE PROVISION The agencies/districts in eastern Placer County have variety in both the type and the number of public services they provide. Five of the districts are single service providers, including McKinney Water District, Tahoe City Cemetery District, Tahoe Forest Hospital District, Tahoe Truckee Sanitation Agency, and the Truckee Tahoe Airport District. Three districts provide two public services with the Donner Summit Public Utility District and Sierra Lakes County Water District providing both water and wastewater services, and the Talmont Resort 1 Data source: http://www.dof.ca.gov/html/FS_DATA/STAT-ABS/documents/A1.pdf Draft Final MSR, August 2018 Chapter 19, Conclusions 19-4 egaercA Figure 19-4: Acreage of 3 Large Sized Districts Sphere of Influence Boundary Area North Lake Tahoe and Martis Valley MSR Improvement District providing water service and snow removal. Three of the districts provide three public services with the North Tahoe Fire Protection District providing ambulance, emergency medical, and fire protection. The North Tahoe Public Utility District and the Tahoe City Public Utility District each provide the same services: parks, water and wastewater services. Alpine Springs County Water District and Squaw Valley Public Services District provide six public services to their customers. They each provide emergency medical, fire protection, solid waste collection, wastewater, and water services. Additionally, Alpine Springs County Water District provides park services and Squaw Valley Public Services District provides rescue services. In eastern Placer County, the Northstar Community Services District provides the most (11) types of public service to its customers. Northstar CSD was evaluated in a 2014 MSR which is available on LAFCO’s website. 12 10 8 6 4 2 0 PUBLIC PROCESS Preparation of this MSR involved outreach to agency/district staff and to the larger community. The Commission held its first public meeting on the Preliminary Draft MSR/SOI Update on May 11, 2016. The Commission and the public were encouraged to provide comments for staff to review and possibly incorporate into the final document. Two email messages or other public comments on the Draft MSR/SOI Update were received during the public comment period. A public staff workshop was held in Truckee on August 29, 2017 and the public notice for these workshops is in Appendix 6 and several verbal comments were offered at that time. A second public meeting was held by the Commission on August 8, 2018. Draft Final MSR, August 2018 Chapter 19, Conclusions 19-5 secivreS fo rebmuN Figure 19.5: Number of Services Provided by Agencies/Districts North Lake Tahoe and Martis Valley MSR This MSR Update was prepared to ensure current information for analysis. The major issues that arose during the analysis are summarized in the Executive Summary and are discussed in detail in the associated service provider review chapters. SPHERE OF INFLUENCE A sphere of influence is defined by Government code Section 56425 as “a plan for the probable physical boundary and service area of a local agency or municipality.” This MSR study does not include an analysis of the sphere of influence for each agency/district. Rather, the intent is to provide sufficient information about each service provider to allow LAFCO to determine whether or not an update to the SOI may be needed in the future and to support various options for updating the SOIs by providing data that can be utilized to document service and facility capacity. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 requires that LAFCo review and update the Sphere of Influence (SOI or Sphere) for each of the special districts and cities within the county. In determining the Sphere of Influence for an agency, LAFCo must consider and prepare written determinations with respect to four factors [Government Code §56425(e)]. These factors relate to the present and planned land uses including agricultural and open-space lands, the present and probable need for public facilities and services, the present capacity of public facilities and adequacy of public services, and the existence of any social or economic communities of interest in the area. Future Sphere of Influence Options The intent of an SOI is to identify the most appropriate areas for an agency’s service area in the probable future. Most LAFCos in the state tend to discourages inclusion of land in an agency’s Sphere if a need for services provided by that agency cannot be demonstrated. Conceptually, territory included in an agency’s Sphere is an indication that the probable need for service has been established, and that the subject agency has been determined by LAFCo to be the most logical service provider for the area. There are a number of ways to consider Spheres of Influence. One option is to consider growth and development and the need for municipal services over time. A second option is to determine an agency’s ability to provide municipal services beyond its current boundary. For a District that does not plan to provide municipal services beyond its present boundary, a Sphere boundary that is the same as the agency boundary is called a Coterminous Sphere of Influence. A third option is related to reducing the current Sphere of Influence of an agency by adopting a Minus Sphere of Influence (or Reduced Sphere of Influence) by excluding territory currently within an agency’s Sphere. A fourth option relates to Sphere areas for which municipal services are not intended to be provided; that is, areas within a Sphere which will remain undeveloped (such as open space or ‘protected lands’). Such an area is a special case, and requires the agency to demonstrate why an area should be included within a Sphere for which no municipal services will be provided. Draft Final MSR, August 2018 Chapter 19, Conclusions 19-6 North Lake Tahoe and Martis Valley MSR LAFCo also has the ability to determine a Zero Sphere of Influence for a District, which sometimes indicates that the District does not have the wherewithal, governance capability, financial means, and/or operational capability to provide the municipal services for which it was formed, and should be dissolved or its function(s) reallocated to another agency. In eastern Placer County, a few districts may have a zero sphere of influence such as the McKinney Water District; however this is likely due to historical low resolution mapping rather than specific intent about capabilities. RECOMMENDATIONS A number of determinations are provided for each service provider in Chapters 6 to 18 of this MSR. These determinations cover seven topic areas as codified in the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Government Code Section 56000 et seq.). These areas of analysis contain the essential operational and management aspects of each service provider, and together constitute a review of the ability of the providers to meet the service demands of the residents within their boundaries. The seven topic areas covered in the determinations include the following factors:  Growth and population projections for the affected area  Disadvantaged unincorporated communities  Present and planned capacity of public facilities  Financial ability of the agency to provide services  Opportunities for shared facilities  Accountability for government service needs  Any other matter relative to service delivery as required by Commission Policy The areas of analysis contain the essential operational and management aspects of each service provider and together constitute a review of the ability of the providers to meet the service demands of the residents within their boundaries. Two types of determinations are presented in Chapters 6 to 18: 1) statements of fact and 2) recommendations. General Recommendations for LAFCO and the Next MSR Consistent with Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, this MSR should be updated in five years (2020). This MSR provides a comprehensive analysis of each service provider and each service provider is described in a stand-alone chapter. There will be no need to repeat all of the information contained in this MSR or to repeat the level of detail provided herein. Rather the next MSR should focus on the following issues for each agency/district: • Finances: Audited financial statements provide the best independent assessment of agencies finances. LAFCO may wish to identify specific financial indicators that can be used to assess financial health and to compare different districts. Draft Final MSR, August 2018 Chapter 19, Conclusions 19-7 North Lake Tahoe and Martis Valley MSR • Personnel: Assess and compare any personnel changes that have been made since this 2018 MSR was conducted. • Programs: Consider any programs that have been added, transferred, consolidated, or eliminated from an agency’s operations. • Land-use development: Physical changes in land-use within a district’s boundaries may be correlated with increases in permanent or visitor population and can influence the demand for public service. Additionally, Regional, County and City/Town general plans may affect the districts. Future growth scenarios for the districts can be updated when the next MSR is prepared in 2023. • Growth Indicators: The Lake Tahoe and Martis Valley area has a unique set of historical, political, demographic, and institutional differences as compared to the western County. One of those differences is the important role that tourism and vacation homes play in the local economy and in the demand for services from local agencies. Because of these differences, traditional indicators of economic growth such as new housing starts, commercial square footage, and building permit counts may not be the best way to measure or predict the demand for future public services. Instead, favorable weather conditions, access to Reno and Truckee airports and train stations, and the economic situation of the SF Bay area may be factors that promote visitation to Lake Tahoe and therefore increase demand for public services. Before LAFCO prepares the next MSR for this region in five years (i.e. 2023), it is recommended that the Commission consider which indicators or metrics it wishes to use to assess existing and future growth for this unique region. • Efficiency and cost of utilities: LAFCO may wish to identify indicators of efficiency that can be implemented via specific programs. North Lake Tahoe and Martis Valley experience seasonal weather conditions with cold winters and warm summers. Utility costs are quite high for several of the districts studied because the cold winters do require extra temperature maintenance etc. Energy efficiency can be compared across districts. Opportunities for increased energy efficiency can be studied in more detail. • Website: Websites are modern tools that serve to facilitate transparency in local government by making key pieces of information readily available in a timely manner. Since the promotion of transparency in local government agencies is within LAFCO’s purview, it is recommended that Placer LAFCO review the best practices guidance from the Special District Leadership Foundation and from the Institute for Local Government and establish guidelines for websites for cities and special districts that can assessed during future MSRs. The next MSR may consider a more detailed analysis of websites (as compared to the website analysis provided in the Executive Summary of this document). • Age of Infrastructure: For those districts that provide water service and/or wastewater service (Alpine Springs County Water District, Donner Summit Public Utility District, McKinney Water District, Northstar Community Services District, North Tahoe Public Utility District, Placer County Water Agency, Zone 4, Sierra Lakes County Water District, Squaw Valley Public Services District, Tahoe City Public Utility District, and Draft Final MSR, August 2018 Chapter 19, Conclusions 19-8 North Lake Tahoe and Martis Valley MSR the Tahoe Truckee Sanitation Agency) the next MSR that LAFCO prepares (in Spring of 2021) should address the age and condition of the collection, treatment, and distribution/disposal infrastructure. Many of the water and wastewater pipes and other parts are getting older and replacing this infrastructure is expensive and must be planned for in advance. Recommendations for LAFCO regarding SOI Updates After the Commission approves this MSR, LAFCO may wish to review each of the thirteen districts studied herein to consider which districts should have their sphere of influence updated. The dates of the most recent SOI Update for each District is listed in Table 19-1, below. LAFCO may wish to establish a work schedule and allocate staff resources towards the SOI Update effort. Table 19-1: Dates of SOI Documents Name of District Date of Most Recent SOI Update Alpine Springs County Water District LAFCO files do not indicate whether a SOI has been established for the District. Donner Summit Public Utility District 1998 McKinney Water District No SOI North Tahoe Fire Protection District 1993 North Tahoe Public Utility District SOI is established and mapped. However, no date in LAFCo files. Sierra Lakes County Water District April 12, 2000 Squaw Valley Public Service District SOI is established and mapped. However, no date in LAFCo files. Tahoe City Cemetery District Placer LAFCo files do not indicate whether or not a formal SOI was ever adopted for TCCD. Tahoe City Public Utility District 1994 Tahoe Forest Hospital District SOI is established and mapped. However, no date in LAFCo files. Tahoe Truckee Sanitation Agency No formal sphere of influence (SOI) for the T-TSA has ever been adopted by either Placer or Nevada LAFCo. However, the Agency noted that Placer LAFCO has deemed its SOI is the combination of the spheres of its member entities. Talmont Resort Improvement District No date in LAFCo files Truckee Tahoe Airport District April 1, 1986 Draft Final MSR, August 2018 Chapter 19, Conclusions 19-9 North Lake Tahoe and Martis Valley MSR Recommendations for LAFCO regarding Mutual Water Companies Chapter 4 of this MSR describes mutual water companies in the North Tahoe and Martis Valley region. It is recommended that LAFCO utilize the information contained in Chapter 4 to complete the following tasks: • Contact each mutual water company • Request that each mutual water company provide LAFCO with a map of its service area. • Request additional information as deemed appropriate by LAFCO. • Encourage each mutual water company to undergo board training required under AB54. • Continue to study the compliance of mutual water companies with the Safe Drinking Water Act and issue a report of findings. • Post information about mutual water companies on the LAFCO website. • Establish formal lines of communication with each Mutual Water Company going forward. LAFCO may wish to establish a work schedule and allocate staff resources towards this effort. Draft Final MSR, August 2018 Chapter 19, Conclusions 19-10 North Tahoe and Martis Valley MSR Chapter 20 COMMENTS RECEIVED AND RESPONSES TO COMMENTS This Chapter summarizes public comments received on this document during the public comment period. The Preliminary Draft MSR Update was first considered by the Commission during a public meeting on May 11, 2016. At that time, the Preliminary Draft MSR Update was also shared with the thirteen service providers described in this MSR. The public was encouraged to provide comments for staff to review and possibly incorporate into the final document. During this time, two comments were received as follows:  Tahoe Forest Hospital District, Ted Owens Email dated August 23, 2017 requesting correction to list of names for the Board of Directors (Consultants made this correction).  Squaw Valley Public Service District provided Resolution 2016-20 regarding the Second Amendment To Water And Sewer Agreement With Squaw Creek Associates, LLC To Extend Dedication Deadline Of Well 18-3R (Consultants noted this Resolution). LAFCO staff conducted two public workshops in Truckee on Tuesday, August 29, 2017 and the workshop notice is shown in Appendix 6. Workshop participants offered several suggestions as listed in the table below. Table 20-1: Comments from 2017 Workshop Participants Comment from Workshop Participant Consultant Response The North Tahoe PUD and the Tahoe City PUD A determination to this affect has been added provide similar services and are located in to the MSR chapters covering The North geographic proximity. The MSR should Tahoe PUD and the Tahoe City PUD. recommend further study of this issue. Many districts have a sphere of influence that Table 19-1 on page 19-9 has been added in was adopted in the 1980’s with hand-drawn response to this comment. maps. The sphere of influence adoption dates should be listed in a table Much of the financial information presented This disclaimer has been added to Chapters 6- in the MSR is now outdated. Add a disclaimer 18 to respond to this suggestion. to the MSR to indicate this data was collected in 2013. Park and recreation services are provided by Additional information about park and Placer County, State Parks, the U.S. Forest recreation service providers has been added Service, and several independent districts. to the MSR Introduction pages 1-3 to 1-4. There is an overlap in service providers. The Commission held a public meeting on the Draft Final MSR/SOI Update on August 8, 2018. Draft Final MSR, August 2018 Chapter 20, Comments Received 20-1 North Tahoe and Martis Valley MSR Chapter 21 Glossary Acre-feet (AF): a unit of volume equal to the volume of a sheet of water one acre in area and one foot in depth; 43,560 cubic feet (1233.5 cu m). Annexation: The annexation, inclusion, attachment, or addition of territory to a city or district. Average base flow (ABF): Flow in the sanitary sewer during dry-weather months, measured when no appreciable rain is falling. Base flow consists of sanitary flow plus groundwater infiltration. Average dry-weather flow (ADWF): The 30-day rolling average wastewater flow from May through October. Average wet-weather flow (AWWF): The 30-day rolling average wastewater flow from November through April. Bond: An interest-bearing promise to pay a stipulated sum of money, with the principal amount due on a specific date. Funds raised through the sale of bonds can be used for various public purposes. Buildout: The maximum development potential when all lands within an area have been converted to the maximum density allowed under the General Plan. Board of Directors: The legislative body or governing board of a district. Board of Supervisors: The elected board of supervisors of a county. City: Any charter or general law city. California Environmental Quality Act (CEQA): A State statute that requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts. Community Services District (CSD): A geographic subarea of a county used for planning and delivery of parks, recreation, and other human services based on an assessment of the service needs of the population in that subarea. A CSD is a taxation district with independent administration. Draft Final MSR, August 2018 Chapter 21, Glossary 21-1 North Tahoe and Martis Valley MSR Consolidation: The uniting or joining of two or more districts into a single new successor district. In the case of consolidation of special districts, all of those districts shall have been formed pursuant to the same principal act. Contiguous: In the case of annexation, territory adjacent to an agency to which annexation is proposed. Territory is not contiguous if the only contiguity is based upon a strip of land more than 300 feet long and less than 200 feet wide. Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH) : A State law which establishes procedures for local government changes of organization, including city incorporations, annexations to a city or special district, and city and special district consolidations. Cost avoidance: Actions to eliminate unnecessary costs derived from, but not limited to, duplication of service efforts, higher than necessary administration/operation cost ratios, use of outdated or deteriorating infrastructure and equipment, underutilized equipment or buildings or facilities, overlapping/inefficient service boundaries, inefficient purchasing or budgeting practices, and lack of economies of scale. Crown (of the sewer): The upper portion of the sewer pipes. Cubic Feet Per Second (cfs): is a rate of water flow which will supply 1 cubic foot of water in one second. 1 cfs is = to 7.48 gallons per second. Design flow: The selected flow condition for wastewater collection system design, determined by adding corresponding peak sanitary flow and peak groundwater infiltration. This is also referred to as peak dry-weather flow. Detachment: The detachment, deannexation, exclusion, deletion, or removal from a city or district of any portion of the territory of that city or district. Development Fee: A fee charged to the developer of a project by a county, or other public agency as compensation for otherwise-unmitigated impacts the project will produce. California Government Code Section 66000, et seq., specifies that development fees shall not exceed the estimated reasonable cost of providing the service for which the fee is charged. To lawfully impose a development fee, the public agency must verify its method of calculation and document proper restrictions on use of the fund. Dissolution: The dissolution, disincorporation, extinguishment, and termination of the existence of a district and the cessation of all its corporate powers, except for the purpose of winding up the affairs of the district. District or special District: An agency of the state, formed pursuant to general law or special act, for the local performance of governmental or proprietary functions within limited boundaries. "District" or "special district" includes a county service area. District of limited Powers: An airport district, community services district, municipal utility district, public utilities district, fire protection district, harbor district, port district, Draft Final MSR, August 2018 Chapter 21, Glossary 21-2 North Tahoe and Martis Valley MSR recreational harbor district, small craft harbor district, resort improvement district, library district, local hospital district, local health district, municipal improvement district formed pursuant to any special act, municipal water district, police protection district, recreation and park district, garbage disposal district, garbage and refuse disposal district, sanitary district, or county sanitation district. Dissolution: The termination of the existence of a district. Dry-weather flow: Wastewater flow monitored during the dry season, occurring May through October. Consists of sanitary flow and groundwater infiltration. Excessive infiltration and inflow: The quantities of infiltration/ inflow that can be economically eliminated from a wastewater collection system by rehabilitation, as determined by a cost-effective analysis. Formation: The formation, incorporation, organization, or creation of a district. Function: Any power granted by law to a local agency or a county to provide designated governmental or proprietary services or facilities for the use, benefit, or protection of all persons or property. Functional revenues: Revenues generated from direct services or associated with specific services, such as a grant or statute, and expenditures. Fiscal year (FY): A period that a company or government uses for accounting purposes and preparing financial statements and/or for tax purposes. The fiscal year may or may not be the same as a calendar year. General plan: A document containing a statement of development policies including a diagram and text setting forth the objectives of the plan. The general plan must include certain state mandated elements related to land use, circulation, housing, conservation, open-space, noise, and safety. General revenues: Revenues not associated with specific services or retained in an enterprise fund. Groundwater: Water under the earth’s surface, often confined to aquifers capable of supplying wells and springs. Incorporation: The incorporation, formation, creation, and establishment of a city with corporate powers. Any area proposed for incorporation as a new city must have at least 500 registered voters residing within the affected area at the time commission proceedings are initiated. Independent Special District: Any special district having a legislative body all of whose members are elected by registered voters or landowners within the district, or whose members are appointed to fixed terms, and excludes any special district having a legislative body consisting, in whole or in part, of ex officio members who are officers of a county or another local agency or who are appointees of those officers other than Draft Final MSR, August 2018 Chapter 21, Glossary 21-3 North Tahoe and Martis Valley MSR those who are appointed to fixed terms. "Independent special district" does not include any district excluded from the definition of district contained in §56036. Infiltration: The water entering a sewer system and service connections from the ground, through such means as, but not limited to, defective pipes, pipe joints, connections, or manhole walls. Infiltration does not include, and is distinguished from, inflow. Infiltration and inflow (I&I): The collective term used to describe the extraneous flow in a wastewater collection system from both rainfall-dependent infiltration and inflow or groundwater infiltration. Infrastructure: Public services and facilities, such as pipes, canals, levees, water-supply systems, other utility, systems, and roads. Integrated Regional Water Management Plan (IRWMP): IRWM is the application of Integrated Water Management (IWM) principles on a regional scale. Details at: http://www.water.ca.gov/irwm/. LAFCo: Local Agency Formation Commission. Local accountability and governance: A style of public agency decision making, operation and management that includes an accessible staff, elected or appointed decision- making body and decision making process, advertisement of, and public participation in, elections, publicly disclosed budgets, programs, and plans, solicited public participation in the consideration of work and infrastructure plans; and regularly evaluated or measured outcomes of plans, programs or operations and disclosure of results to the public. Local agency: A city, county, or special district or other public entity, which provides public services. Management Efficiency: The organized provision of the highest quality public services with the lowest necessary expenditure of public funds. An efficiently managed entity (1) promotes and demonstrates implementation of continuous improvement plans and strategies for budgeting, managing costs, training and utilizing personnel, and customer service and involvement, (2) has the ability to provide service over the short and long term, (3) has the resources (fiscal, manpower, equipment, adopted service or work plans) to provide adequate service, (4) meets or exceeds environmental and industry service standards, as feasible considering local conditions or circumstances, (5) and maintains adequate contingency reserves. Merger: The termination of the existence of a district, and the assumption of the district's responsibilities by a city. Million Gallons Per Day (MGD): An expression of water-use data such that 1 million gallons per day = 3.07 acre feet per day. Draft Final MSR, August 2018 Chapter 21, Glossary 21-4 North Tahoe and Martis Valley MSR Municipal services: The full range of services that a public agency provides, or is authorized to provide, except general county government functions such as courts, special services and tax collection. As understood under the CKH Act, this includes all services provided by Special Districts under California law. Municipal Service Review (MSR): A study designed to determine the adequacy of governmental services being provided in the region or sub-region. Performing service reviews for each city and special district within the county may be used by LAFCO, other governmental agencies, and the public to better understand and improve service conditions. Ordinance: A law or regulation set forth and adopted by a governmental authority. Peak flow: Maximum measured daily flow. Commonly measured in cubic feet per second (cfs). Typically occurs during wet-weather events and can also be referred to as peak wet-weather flow. Peak dry-weather flow (PDWF): Peak daily sanitary flow plus groundwater infiltration. Peak wet-weather flow (PWWF): Peak daily wet-weather flow plus peak rainfall-dependent infiltration and inflow from rainfall events. Peaking Factor: The ratio of peak hourly wet-weather flow to base flow. Per Capita Water Use: The water produced by or introduced into the system of a water supplier divided by the total residential population; normally expressed in gallons per capita per day (gpcd). pH: A measure of the relative acidity or alkalinity of water. Water with a pH of 7 is neutral; lower pH levels indicate increasing acidity, while pH levels higher than 7 indicate increasingly basic solutions. Plan of reorganization: A plan or program for effecting reorganization and which contains a description of all changes of organization included in the reorganization and setting forth all terms, conditions, and matters necessary or incidental to the effectuation of that reorganization. Potable Water: Water of a quality suitable for drinking. Principal act: In the case of a district, the law under which the district was formed and, in the case of a city, the general laws or a charter, as the case may be. Principal LAFCO for municipal service review: The LAFCO with the lead responsibility for a municipal service review. Lead responsibility can be determined pursuant to the CKH Act definition of a Principal LAFCO as it applies to government organization or reorganization actions, by negotiation, or by agreement among two or more LAFCOs. Proceeding: A course of action. Procedures. Draft Final MSR, August 2018 Chapter 21, Glossary 21-5 North Tahoe and Martis Valley MSR Public agency: The state or any state agency, board, or commission, any city, county, city and county, special district, or other political subdivision, or any agency, board, or commission of the city, county, city and county, special district, or other political subdivision. Rainfall-dependent infiltration and inflow (RDI/I): Rainfall runoff from both infiltration and inflow sources that enter the wastewater collection system during and shortly after a rain event. RDI/I consists of stormwater inflow and rainfall-dependent infiltration. Rate restructuring: Rate restructuring does not refer to the setting or development of specific rates or rate structures. During a municipal service review, LAFCO may compile and review certain rate related data, and other information that may affect rates, as that data applies to the intent of the CKH Act (§56000, §56001, §56301), factors to be considered (§56668), SOI determinations (§56425) and all required municipal service review determinations (§56430). The objective is to identify opportunities to positively impact rates without adversely affecting service quality or other factors to be considered. Reorganization: Two or more changes of organization initiated in a single proposal. Responsible LAFCO: The LAFCO of a county other than the Principal County that may be impacted by recommendations, determinations or subsequent proposals elicited during a municipal service review being initiated or considered by the Lead LAFCO. Retained earnings: The accumulated earnings of an enterprise or intragovernmental service fund which have been retained in the fund and are not reserved for any specific purpose (debts, planned improvements, and contingency/emergency). Reserve: (1) For governmental type funds, an account used to earmark a portion of fund balance, which is legally or contractually restricted for a specific use or not appropriable for expenditure. (2) For proprietary type/enterprise funds, the portion of retained earnings set aside for specific purposes. Unnecessary reserves are those set aside for purposes that are not well defined or adopted or retained earnings that are not reasonably proportional to annual gross revenues. RWQCB: Regional Water Quality Control Board. SCADA: Acronym for Supervisory Control and Data Acquisition; a software application program used for process control and to gather real time data from remote locations. The SCADA System consists of hardware and software components. The hardware collects and feeds data into a computer with SCADA software installed. The function of SCADA is recording and logging all events in a file that is stored in a hard disk or sending them to a printer. If conditions become hazardous, SCADA sounds warning alarm. Service lateral: A sewer connecting a building or house to the mainline sewer. Draft Final MSR, August 2018 Chapter 21, Glossary 21-6 North Tahoe and Martis Valley MSR Service review: A study and evaluation of municipal service(s) by specific area, subregion or region culminating in written determinations regarding seven specific evaluation categories. Sewage: Sewage is the wastewater released by residences, businesses and industries in a community. It is 99.94 percent water, with only 0.06 percent of the wastewater dissolved and suspended solid material. The cloudiness of sewage is caused by suspended particles which in untreated sewage ranges from 100 to 350 mg/l. Sewer Information Maintenance and Management System (SIMMS): A computer program that provides a means of tracking and organizing sewer maintenance schedules. Special Reorganization: A reorganization that includes the detachment of territory from a city or city and county and the incorporation of that entire detached territory as a city. Specific plan: A policy statement and implementation tool that is used to address a single project or planning problem. Specific plans contain concrete standards and development criteria that supplement those of the general plan. Sphere of influence (SOI): A plan for the probable physical boundaries and service area of a local agency, as determined by the LAFCO. Sphere of influence determinations: In establishing a sphere of influence, the Commission must consider and prepare written determinations related to present and planned land uses, need and capacity of public facilities, and existence of social and economic communities of interest. Stormwater runoff: Rainwater which does not infiltrate into the soil and runs off the land. Subject agency: Each district or city for which a change of organization is proposed or provided in a reorganization or plan of reorganization. SWRCB: State Water Resources Control Board. Total Dissolved Solids (TDS): A quantitative measure of the residual minerals dissolved in water that remains after evaporation of a solution. Usually expressed in milligrams per liter. Treated water: Raw water which has been treated for human consumption through secondary or tertiary processes at a water treatment plan (WTP). Watershed: An area of land that drains water, sediment and dissolved materials to a common receiving body or outlet. The term is not restricted to surface water runoff and includes interactions with subsurface water. Watersheds vary from the largest river basins to just acres or less in size. In urban watershed management, a watershed is seen as all the land which contributes runoff to a particular water body. Draft Final MSR, August 2018 Chapter 21, Glossary 21-7 North Tahoe and Martis Valley MSR Zoning: The primary legal instrument for implementing the county general plan. Zoning divides a community into districts or "zones" that specify the permitted/prohibited land uses. Draft Final MSR, August 2018 Chapter 21, Glossary 21-8 North Tahoe and Martis Valley MSR Chapter 22 Acknowledgements Assistance and Support Several people contributed information that was utilized in this Municipal Service Review. Placer LAFCo and SWALE Inc. wish to acknowledge the support received from the following individuals and organizations. LAFCo Staff Kris Berry, Executive Officer Linda Wilkie - Commission Clerk Alpine Springs County Water District John M. Collins, P.E Donner Summit Public Utility District Tom Skjelstad Mckinney Water District Karla Gunter North Tahoe Fire Protection District Michael Schwartz North Tahoe Public Utility District Duane Whitelaw Sierra Lakes County Water District Bill Quesnel Squaw Valley Public Services District Mike Geary Tahoe City Cemetery District Judy Friedman Tahoe City Public Utility District Cindy Gustafson and TCPUD staff Tahoe Forest Hospital District Ted Owens Tahoe Truckee Sanitation Agency Larue Griffin, Marcia Beals, and Agency staff Talmont Resort Improvement District Libby Gregg Truckee Tahoe Airport District Kevin Smith Report Preparers A team of consultants authored this MSR and provided an independent analysis. The expertise and contributions provided by this consulting team are greatly appreciated. The names and roles of the individual experts responsible for writing this MSR are provided below. Kateri Harrison, Project Manager, Co-Author Jessica Hankins, Planning Consultant, CoAuthor SWALE Inc. Uma Hinman Consulting Uma Hinman, Co-Author, Planner Judy Stolen Geographic Information System Maps Baracco & Associates Bruce Baracco, Co-Author, Project Advisor Tom Parillo Planner, Socio-Economics & Population Growth Robertson, Bryan Inc. Art O’Brien, Engineer for Water and Wastewater information. Draft Final MSR, August 2018 Chapter 22, Acknowledgements 22-1 North Tahoe and Martis Valley MSR Stanley Hoffman & Associates Marcine Osbourn, Financial Analyst Draft Final MSR, August 2018 Chapter 22, Acknowledgements 22-2 Chapter 23 APPENDICES Table of Contents for Appendices AP.1: Enhanced Infrastructure Financing Districts AP.2: Assembly Bill 54 – Mutual Water Companies AP.3: CA Dept. of Finance. New Population Projections AP.4: Placer County Water Systems AP.5: Demographic Report for Placer County AP.6: LAFCO Staff Workshops in Truckee - 2017 Public Notice AP.1: ENHANCED INFRASTRUCTURE FINANCING DISTRICTS This Appendix presents a Fact Sheet on Enhanced Infrastructure Financing Districts prepared by the California Economic Summit. AP.2: ASSEMBLY BILL 54 This appendix presents Assembly Bill 54, related to mutual water companies. Assembly Bill No. 54 CHAPTER 512 An act to amend Section 14300 of, and to add Sections 14300.5, 14301.1, 14301.2, and 14301.3 to, the Corporations Code, to amend Sections 56375 and 56430 of the Government Code, and to add Section 116760.65 to, and to add Article 12 (commencing with Section 116755) to Chapter 4 of Part 12 of Division 104 of, the Health and Safety Code, relating to drinking water. [Approved by Governor October 7, 2011. Filed with Secretary of State October 7, 2011.] legislative counsel’ s digest AB 54, Solorio. Drinking water. (1) Existing law authorizes any corporation organized for or engaged in the business of selling, distributing, supplying, or delivering water for irrigation purposes, and requires any corporation organized for or engaged in the business of selling, distributing, supplying, or delivering water for domestic use, to provide in its articles or bylaws that water shall be sold, distributed, supplied, or delivered only to owners of its shares and that those shares are appurtenant to certain lands, as specified. This bill would specify that any corporation organized for or engaged in the business of selling, distributing, supplying, or delivering water for irrigation purposes, and any corporation organized for or engaged in the business of selling, distributing, supplying, or delivering water for domestic use that provides in its articles or bylaws that the water shall be sold, distributed, supplied, or delivered only to owners of its shares and that those shares are appurtenant to certain lands shall be known as a mutual water company. The bill would also require each mutual water company that operates a public water system to, by December 31, 2012, submit a map depicting the approximate boundaries of the property that the municipal water company serves to the local agency commission within the county in which the mutual water company operates. The bill would prohibit a mutual water company from expanding its boundaries without approval from the appropriate local agency formation commission. The bill would require a mutual water company that operates a public water system to supply certain information to a local agency formation commission upon request, as specified. This bill would require a mutual water company that operates a public water system to maintain a financial reserve fund to be used for certain types of activities. 87 Ch.512 — 2 — The bill would also require each board member of a mutual water company that operates a public water system to, within 6 months of taking office, complete a 2-hour course offered by a qualified trainer, as specified. (2) Existing law, the California Safe Drinking Water Act, requires the State Department of Public Health to administer provisions relating to the regulation of drinking water to protect public health, including, but not limited to, conducting research, studies, and demonstration programs relating to the provision of a dependable, safe supply of drinking water, enforcing the federal Safe Drinking Water Act, adopting enforcement regulations, and conducting studies and investigations to assess the quality of water in domestic water supplies. Existing law establishes the Safe Drinking Water State Revolving Fund, continuously appropriated to the department for the provision of grants and revolving fund loans to provide for the design and construction of projects for public water systems that will enable suppliers to meet safe drinking water standards. Existing law requires the department to establish criteria to be met for projects to be eligible for consideration for this funding. This bill would provide that in considering an application for funding a project, the department shall not be prejudiced by the applicant initiating the project prior to the department approving the application for funding. This bill would also provide that preliminary project costs or construction costs that are otherwise eligible for funding shall not be ineligible because the costs were incurred by the applicant during certain time periods. (3) Existing law, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, sets forth the powers and duties of a local agency formation commission, including, among others, the powers to review and approve or disapprove with or without amendment, wholly, partially, or conditionally, proposals for changes of organization or reorganization, consistent with written policies, procedures, and guidelines adopted by the commission. This bill would additionally authorize the commission to approve, with or without amendment, wholly, partially, or conditionally, or disapprove the annexation of territory served by a mutual water company that operates a public water system into the jurisdiction of a city, a public utility, or a special district, with the consent of the respective public agency or public utility and mutual water company. (4) Under the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000, each local agency formation commission is required to develop and determine the sphere of influence of each local governmental agency within the county and enact policies designed to promote the logical and orderly development of areas within the sphere of influence. In order to prepare and update spheres of influence, the commission is required to conduct a service review, including the review of growth and population projections for the affected area, present and planned capacity of public facilities and adequacy of public services, financial ability of agencies to provide services, the status of, and opportunities for, shared facilities, 87 — 3 — Ch.512 accountability for community service needs, and any other matter related to effective or efficient service delivery, as required by commission policy. This bill would authorize the commission to include in the service review, a review of whether the agencies under review comply with safe drinking water standards. This bill would provide that a public water system may comply with that review by submitting certain documents. (5) Existing law provides for the imposition of civil fines in amounts up to $5,000 or $25,000 for specifi ed violations of the California Safe Drinking Water Act. This bill would provide that a mutual water company is liable for any fines, penalties, costs, expenses, or other amounts that may be imposed upon the mutual water company under the California Safe Drinking Water Act. This bill would authorize a mutual water company to levy an assessment to pay those fines. This bill would provide that if the amount of those fines exceeds 5% of the annual budget of a mutual water company, then the mutual water company would be required to levy an assessment to pay those fines. The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following: (a) Californians rely on a broad diversity of public and private organizations to deliver clean and safe drinking water to their home water taps. Regardless of the form of the organization that operates a public water system, these organizations provide a public service that remains one of the core duties of the people’s government. (b) While the state’s goal is to ensure clean and safe drinking water, California’s drinking water quality has deteriorated and some public water systems continue to suffer poor water quality that are inconsistent with safe drinking water standards. (c) The state provides funding to public water systems to improve drinking water quality through the Safe Drinking Water Revolving Fund, but demand far exceeds the available funding. Based on the United States Environmental Protection Agency’s Drinking Water Infrastructure Needs Survey and Assessment, which was performed in 2007, the State Department of Public Health estimates that the 20-year drinking water infrastructure need for California is $39 billion. Funding for such projects, however, for 1997–2008 totaled only $1.2 billion. SEC. 2. Section 14300 of the Corporations Code is amended to read: 14300. (a) Any corporation organized for or engaged in the business of selling, distributing, supplying, or delivering water for irrigation purposes may provide, and any corporation organized for or engaged in the business of selling, distributing, supplying, or delivering water for domestic use shall provide, in its articles or bylaws that water shall be sold, distributed, supplied, or delivered only to owners of its shares and that the shares shall be appurtenant to certain lands when the same are described in the certificate 87 Ch.512 — 4 — issued therefor; and when the certificate is so issued and a certified copy of the articles or bylaws recorded in the office of the county recorder in the county where the lands are situated the shares of stock shall become appurtenant to the lands and shall only be transferred therewith, except after sale or forfeiture for delinquent assessments thereon as provided in Section 14303. Notwithstanding this provision in its articles or bylaws, any such corporation may sell water to the state, or any department or agency thereof, or to any school district, or to any public agency, or, to any other mutual water company or, during any emergency resulting from fire or other disaster involving danger to public health or safety, to any person at the same rates as to holders of shares of the corporations; and provided further, that any corporation may enter into a contract with a county fire protection district to furnish water to fire hydrants and for fire suppression or fire prevention purposes at a flat rate per hydrant or other connection. In the event lands to which any stock is appurtenant are owned or purchased by the state, or any department or agency thereof, or any school district, or public agency, the stock shall be canceled by the secretary, but shall be reissued to any person later acquiring title to the land from the state department, agency, or school district, or public agency. (b) A corporation described in subdivision (a) shall be known as a mutual water company. SEC. 3. Section 14300.5 is added to the Corporations Code, to read: 14300.5. For purposes of this chapter, “public water system” shall have the same meaning as provided in Section 116275 of the Health and Safety Code. SEC. 4. Section 14301.1 is added to the Corporations Code, to read: 14301.1. (a) No later than December 31, 2012, each mutual water company that operates a public water system shall submit to the local agency formation commission for its county a map depicting the approximate boundaries of the property that the mutual water company serves. (b) A mutual water company that operates a public water system shall respond to a request from a local agency formation commission, located within a county that the mutual water company operates in, for information in connection with the preparation of municipal service reviews or spheres of influence pursuant to Chapter 4 (commencing with Section 56425) of Part 2 of Division 3 of Title 5 of the Government Code within 45 days of the request. The mutual water company shall provide all reasonably available nonconfidential information relating to the operation of the public water system. The mutual water company shall explain, in writing, why any requested information is not reasonably available. The mutual water company shall not be required to disclose any information pertaining to the names, addresses, or water usage of any specific shareholder. This subdivision shall not be interpreted to require a mutual water company to undertake any study or investigation. A mutual water company may comply with this section by submitting to the local agency formation commission the same information that the mutual water company submitted to the State Department of Public Health. 87 — 5 — Ch.512 (c) A mutual water company that operates a public water system shall be subject to the requirements of, and has the powers granted by, subdivision (b) of Section 116755 of the Health and Safety Code. SEC. 5. Section 14301.2 is added to the Corporations Code, to read: 14301.2. Each board member of a mutual water company that operates a public water system shall comply with the training requirements set out in subdivision (a) of Section 116755 of the Health and Safety Code. SEC. 6. Section 14301.3 is added to the Corporations Code, to read: 14301.3. (a) All construction on public water systems operated by a mutual water company shall be designed and constructed to comply with the applicable California Waterworks standards, as provided in Chapter 16 of Title 22 of the California Code of Regulations. (b) A mutual water company that operates a public water system shall maintain a financial reserv e fund for repairs and replacements to its water production, transmission, and distribution facilities at a level sufficient for continuous operation of facilities in compliance with the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.) and the California Safe Drinking Water Act (Chapter 4 (commencing with 116270) of Part 12 of Division 104 of the Health and Safety Code). SEC. 7. Section 56375 of the Government Code is amended to read: 56375. The commission shall have all of the following powers and duties subject to any limitations upon its jurisdiction set forth in this part: (a) (1 ) To review and approve with or without amendment, wholly, partially, or conditionally, or disapprove proposals for changes of organization or reorganization, consistent with written policies, procedures, and guidelines adopted by the commission. (2) The commission may initiate proposals by resolution of application for any of the following: (A) The consolidation of a district, as defi ned in Section 56036. (B) The dissolution of a district. (C) A merger. (D) The establishment of a subsidiary district. (E) The formation of a new district or districts. (F) A reorganization that includes any of the changes specified in subparagraph (A), (B), (C), (D), or (E). (3) A commission may initiate a proposal described in paragraph (2) only if that change of organization or reorganization is consistent with a recommendation or conclusion of a study prepared pursuant to Section 56378, 56425, or 56430, and the commission makes the determinations specified in subdivision (b) of Section 56881. (4) A commission shall not disapprove an annexation to a city, initiated by resolution, of contiguous territory that the commission finds is an y of the following: (A) Surrounded or substantially surrounded by the city to which the annexation is proposed or by that city and a county boundary or the Pacifi c Ocean if the territory to be annexed is substantially developed or developing, is not prime agricultural land as defined in Section 56064, is designated for 87 Ch.512 — 6 — urban growth by the general plan of the annexing city, and is not within the sphere of influence of another city. (B) Located within an urban service area that has been delineated and adopted by a commission, which is not prime agricultural land, as defined by Section 56064, and is designated for urban growth by the general plan of the annexing city. (C) An annexation or reorganization of unincorporated islands meeting the requirements of Section 56375.3. (5) As a condition to the annexation of an area that is surrounded, or substantially surrounded, by the city to which the annexation is proposed, the commission may require, where consistent with the purposes of this division, that the annexation include the entire island of surrounded, or substantially surrounded, territory. (6) A commission shall not impose any conditions that would directly regulate land use density or intensity, property development, or subdivision requirements. (7) The decision of the commission with regard to a proposal to annex territory to a city shall be based upon the general plan and prezoning of the city. When the development purposes are not made known to the annexing city, the annexation shall be reviewed on the basis of the adopted plans and policies of the annexing city or county. A commission shall require, as a condition to annexation, that a city prezone the territory to be annexed or present evidence satisfactory to the commission that the existing development entitlements on the territory are vested or are already at build-out, and are consistent with the city’s general plan. However, the commission shall not specify how, or in what manner, the territory shall be prezoned. (b) With regard to a proposal for annexation or detachment of territory to, or from, a city or district or with regard to a proposal for reorganization that includes annexation or detachment, to determine whether territory proposed for annexation or detachment, as described in its resolution approving the annexation, detachment, or reorganization, is inhabited or uninhabited. (c) With regard to a proposal for consolidation of two or more cities or districts, to determine which city or district shall be the consolidated successor city or district. (d) To approve the annexation of unincorporated, noncontiguous territory, subject to the limitations of Section 56742, located in the same county as that in which the city is located, and that is owned by a city and used for municipal purposes and to authorize the annexation of the territory without notice and hearing. (e) To approve the annexation of unincorporated territory consistent with the planned and probable use of the property based upon the review of general plan and prezoning designations. No subsequent change may be made to the general plan for the annexed territory or zoning that is not in conformance to the prezoning designations for a period of two years after the completion of the annexation, unless the legislative body for the city makes a finding at a public hearing that a substantial change has occurred 87 — 7 — Ch.512 in circumstances that necessitate a departure from the prezoning in the application to the commission. (f) With respect to the incorporation of a new city or the formation of a new special district, to determine the number of registered voters residing within the proposed city or special district or, for a landowner-voter special district, the number of owners of land and the assessed value of their land within the territory proposed to be included in the new special district. The number of registered voters shall be calculated as of the time of the last report of voter registration by the county elections official to the Secretary of State prior to the date the first signature was affixed to the petition. The executive officer shall notify the petitioners of the number of registered voters resulting from this calculation. The assessed value of the land within the territory proposed to be included in a new landowner-voter special district shall be calculated as shown on the last equalized assessment roll. (g) To adopt written procedures for the evaluation of proposals, including written definitions consistent with e xisting state law. The commission may adopt standards for any of the factors enumerated in Section 56668. Any standards adopted by the commission shall be written. (h) To adopt standards and procedures for the evaluation of service plans submitted pursuant to Section 56653 and the initiation of a change of organization or reorganization pursuant to subdivision (a). (i) To make and enforce regulations for the orderly and fair conduct of hearings by the commission. (j) To incur usual and necessary expenses for the accomplishment of its functions. (k) To appoint and assign staff personnel and to employ or contract for professional or consulting services to carry out and effect the functions of the commission. (l) To review the boundaries of the territory involved in any proposal with respect to the definiteness and certainty of those boundaries, the nonconformance of proposed boundaries with lines of assessment or ownership, and other similar matters affecting the proposed boundaries. (m) To waive the restrictions of Section 56744 if it finds that the application of the restrictions would be detrimental to the orderly development of the community and that the area that would be enclosed by the annexation or incorporation is so located that it cannot reasonably be annexed to another city or incorporated as a new city. (n) To waive the application of Section 22613 of the Streets and Highways Code if it finds the application w ould deprive an area of a service needed to ensure the health, safety, or welfare of the residents of the area and if it finds that the waiver would not affect the ability of a city to provide any service. However, within 60 days of the inclusion of the territory within the city, the legislative body may adopt a resolution nullifying the waiver. (o) If the proposal includes the incorporation of a city, as defined in Section 56043, or the formation of a district, as defined in Section 2215 of the Revenue and Taxation Code, the commission shall determine the property 87 Ch.512 — 8 — tax revenue to be exchanged by the affected local agencies pursuant to Section 56810. (p) To authorize a city or district to provide new or extended services outside its jurisdictional boundaries pursuant to Section 56133. (q) To enter into an agreement with the commission for an adjoining county for the purpose of determining procedures for the consideration of proposals that may affect the adjoining county or where the jurisdiction of an affected agency crosses the boundary of the adjoining county. (r) To approve with or without amendment, wholly, partially, or conditionally, or disapprove pursuant to this section the annexation of territory served by a mutual water company formed pursuant to Part 7 (commencing with Section 14300) of Division 3 of Title 1 of the Corporations Code that operates a public water system to a city or special district. Any annexation approved in accordance with this subdivision shall be subject to the state and federal constitutional prohibitions against the taking of private property without the payment of just compensation. This subdivision shall not impair the authority of a public agency or public utility to exercise eminent domain authority. SEC. 8. Section 56430 of the Government Code is amended to read: 56430. (a) In order to prepare and to update spheres of influence in accordance with Section 56425, the commission shall conduct a service review of the municipal services provided in the county or other appropriate area designated by the commission. The commission shall include in the area designated for service review the county, the region, the subregion, or any other geographic area as is appropriate for an analysis of the service or services to be reviewed, and shall prepare a written statement of its determinations with respect to each of the following: (1) Growth and population projections for the affected area. (2) Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies. (3) Financial ability of agencies to provide services. (4) Status of, and opportunities for, shared facilities. (5) Accountability for community service needs, including governmental structure and operational efficiencies. (6) Any other matter related to effective or efficient service delivery, as required by commission policy. (b) In conducting a service review, the commission shall comprehensively review all of the agencies that provide the identified service or services within the designated geographic area. (c) In conducting a service review, the commission may include a review of whether the agencies under review, including any public water system as defined in Section 116275, are in compliance with the Safe Drinking Water Act. A public water system may satisfy any request for information as to compliance with the Safe Drinking Water Act by submission of the consumer confidence or water quality report prepared by the public water system as provided by Section 116470 of the Health and Safety Code. 87 — 9 — Ch.512 (d) The commission may request information, as part of a service review under this section, from identified public or priv ate entities that provide wholesale or retail supply of drinking water, including mutual water companies formed pursuant to Part 7 (commencing with Section 14300) of Division 3 of Title 1 of the Corporations Code, and private utilities, as defined in Section 1502 of the Public Utilities Code. (e) The commission shall conduct a service review before, or in conjunction with, but no later than the time it is considering an action to establish a sphere of infl uence in accordance with Section 56425 or 56426.5 or to update a sphere of influence pursuant to Section 56425. SEC. 9. Article 12 (commencing with Section 116755) of Chapter 4 of Part 12 of Division 104 is added to the Health and Safety Code, to read: Article 12. Board Member Training 116755. (a) Each board member of a mutual water company that operates a public water system, as defined in Section 116275, shall, within six months of taking office, or by December 31, 2012, if that member was serving on the board on December 31, 2011, complete a two-hour course offered by a qualified trainer regarding the duties of board members of mutual water companies, including, but not limited to, the duty of a corporate director to avoid contractual conflicts of interest and fiduciary duties, the duties of public water systems to provide clean drinking water that complies with the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.) and this chapter, and long-term management of a public water system. For the purposes of this subdivision, a trainer may be qualified in any of the following ways: (1) Membership in the California State Bar. (2) Accreditation by the International Association of Continuing Education and Training (IACET) ANSI/IACET 1-2007. (3) Sponsorship by either the Rural Community Assistance Corporation or the California Rural Water Association. (b) A mutual water company formed pursuant to Part 7 (commencing with Section 14300) of Division 3 of Title 1 of the Corporations Code shall be liable for the payment of any fines, penalties, costs, expenses, and other amounts that may be imposed upon the mutual water company pursuant to this chapter. The mutual water company may levy an assessment, pursuant to Section 14303 of the Corporations Code, to pay these fines, penalties, costs, expenses, and other amounts so imposed. If the amount of outstanding fines, penalties, costs, expenses and other amounts imposed pursuant to this chapter exceed 5 percent of the annual budget of the mutual water company, then the mutual water company shall levy an assessment, pursuant to Section 14303 of the Corporations Code, to pay those fines, penalties, costs, expenses, and other amounts so imposed. SEC. 10. Section 116760.90 of the Health and Safety Code is amended to read: 87 Ch.512 — 10 — 116760.90. (a) The department shall not approve an application for funding unless the department determines that the proposed study or project is necessary to enable the applicant to meet safe drinking water standards, and is consistent with an adopted countywide plan, if any. The department may refuse to fund a study or project if it determines that the purposes of this chapter may more economically and efficiently be met by means other than the proposed study or project. The department shall not approve an application for funding a project with a primary purpose to supply or attract future growth. The department may limit funding to costs necessary to enable suppliers to meet primary drinking water standards, as defined in Chapter 4 (commencing with Section 116270). (b) With respect to applications for funding of project design and construction, the department shall also determine all of the following: (1) Upon completion of the project, the applicant will be able to supply water that meets safe drinking water standards. (2) The project is cost-effective. (3) If the entire project is not to be funded under this chapter, the department shall specify which costs are eligible for funding. (c) In considering an application for funding a project that meets all other requirements of this chapter and regulations, the department shall not be prejudiced by the applicant initiating the project prior to the department approving the application for funding. Preliminary project costs that are otherwise eligible for funding pursuant to the provisions of this chapter shall not be ineligible because the costs were incurred by the applicant prior to the department approving the application for funding. Construction costs that are otherwise eligible for funding pursuant to the provisions of this chapter shall not be ineligible because the costs were incurred after the approval of the application by the department but prior to the department entering into a contract with the applicant pursuant to Section 116761.50. O 87 AP.3: CA DEPT. OF FINANCE. NEW POPULATION PROJECTIONS MACRO USED: H:\Prod\Template\Dof-Ltrhd.dotm FOR IMMEDIATE RELEASE: CONTACT: Ethan Sharygin (916) 323-4086 March 8, 2017 H.D. Palmer (916) 323-0648 DEPARTMENT OF FINANCE RELEASES NEW STATE POPULATION PROJECTIONS SACRAMENTO – New projections showing how California’s population is expected to change by growth, generation, and geography through 2060 were released today by the Department of Finance. Highlights From 2016 to 2036, California is projected to grow at an annualized rate of 0.76 percent, adding 6.5 million people. During these 20 years, the share of the population age 65 and older is projected to grow from 14 percent to 23 percent. In 2051, California is projected to join the ranks of Japan and many European countries which have more deaths than births, while migration is expected to keep California’s population growth rate positive. Compared to previous projections (2013 baseline series, published Dec. 2014), the statewide population forecast in 2060 is approximately 1 percent lower, due primarily to lower expected birth rates. The Hispanic population is projected to grow from 39 percent today to 46 percent by 2060. The Millennial generation (born 1981-1997) was the largest in California as of 2016 (9.4 million or 24 percent of the population). “Generation X” (born 1965-1980) is projected to overtake the Baby Boom generation in total population size by 2019, when both become approximately 20 percent of the population. The San Francisco Bay Area, greater Sacramento region, Central Valley, and Inland Empire regions of the state are projected to grow more quickly than the state overall, each increasing their share of the state’s total population (by 1 to 2 percentage points). Total population growth California’s population on July 1, 2016 was 39.4 million. The state is poised to reach a population of 40 million by the year 2018, 45 million by 2035, and 50 million during 2055. Between 2016 and 2060, the state is projected to grow by 30 percent: from 39.4 million to 51.1 million (0.6 percent annually), adding over 11.7 million people (more than the 2016 population of Ohio). Total population is calculated using projected births, deaths, and migration—collectively, the components of change. The crude birth rate1 has been declining in California since the late 2000s, and is projected to decline further from 12.6 births per 1,000 population in 2015 (490,000 births) to 9.4 per 1,000 in 2060 (475,000 births). As the elderly population grows, the projected number of deaths rises more rapidly: from a crude death rate2 of 6.8 deaths per 1,000 population in 2015 (265,000 deaths) to approximately 9.9 per 1,000 in 2060 (505,000 deaths). The number of deaths is projected to exceed the number of births starting in 2051. 1 Net migration refers to the arrival of people (foreign- or native-born) to California. The rate of net migration is projected to steadily grow from approximately 1.8 net migrants per 1,000 population per year in 2015 (70,000 net migrants) to 4 per 1,000 by 2060 (215,000 net migrants). Projected migration cannot be separated by direction (domestic or foreign flows) due to limitations in the historical data sources used to estimate net migrants. Population aging In 2016, 24 percent of the population of California was under age 18 (9.2 million). The working- age population (18-64) was 63 percent of the population (24.6 million), and is projected to decrease modestly as a share of the total population. Growth is expected in the age 65 and over group: it was 14 percent of the population in 2016 (5.5 million), and is projected to grow to 23 percent in 2036 and 26 percent in 2060 (Table 1/Figure 1). Table 1. Population by age category: California, 2016-2060 2016 2036 2060 Total population 39,354,432 100% 45,807,050 100% 51,056,510 100% Age <18 9,257,380 24% 8,946,985 20% 9,166,821 18% Age 18-24 4,223,279 11% 4,401,571 10% 4,401,877 9% Age 25-64 20,413,692 52% 22,087,332 48% 23,999,011 47% Age 65+ 5,460,081 14% 10,371,162 23% 13,488,801 26% Age 16+ 31,171,308 79% 37,951,306 83% 42,995,258 84% Note: Total of shares may not sum due to rounding. Figure 1. Population by age category: California, 2010-2060 2 Population aging will be rapid during the next 20 years as a large cohort of Baby Boomers (born 1946-1964) moves into and through retirement. The share of the population age 65 and older is projected to grow rapidly, becoming a larger share of the population in 2030 than children under 18. The median age in California was 36.2 years in 2016, compared to 37.8 years nationwide. By 2036, the state median age is projected to increase to 41 years, and to 45 years in 2060. A large Baby Boom cohort in California kept the state younger than the national average for many years, but the state will see more rapid increases in the elderly population than the rest of the country due to the aging of this cohort over the next decades. Other important causes of population aging in California are lower fertility rates and greater longevity. The total fertility rate3 has fallen from 2.1 children per woman in 2000 to 1.8 in 2015, and is projected to decrease to 1.6 children per woman by 2060. At the same time, life expectancy at birth has increased from 78 years in 2000 to 81 years in 2015, and is projected to increase to 86 years by 2060. Migration to California has been a contributor to the youthfulness of the state’s population (Figure 2). Foreign-born Californians are concentrated in prime working ages (25-64). Foreign- born Californians have contributed significantly to the state’s population growth: over 40 percent of children born in California since 2000 have at least one foreign-born parent. Figure 2: Age profile of the native and foreign-born populations: California, 2015 Men Women Foreign born Native born Total 100 80 60 40 20 0 300 200 100 0 100 200 300 300 200 100 0 100 200 300 300 200 100 0 100 200 300 Source: American Community Survey, Public Use Microdata Survey (PUMS) 1-year file (2015). 3 egA Population (1000s) Population change by race/ethnicity A plurality of California is Hispanic, with 39 percent (15 million) claiming Hispanic ethnicity. The Hispanic proportion of the population is projected to grow to 42 percent by 2036 and 46 percent by 2060. The fastest growth is projected for the multiracial and Hispanic populations (Table 2). Table 2. Population by race and Hispanic ethnicity: California, 2016-2060 2016 2036 2060 Total population 39,354,432 100% 45,807,050 100% 51,056,510 100% Non-Hispanic White 15,147,499 38% 15,863,204 35% 15,792,622 31% Black 2,260,738 6% 2,628,340 6% 2,847,709 6% American Indian/Alaska Native 165,633 <1% 176,608 <1% 167,582 <1% Asian/Pacific Islander/Hawaiian 5,302,598 13% 5,864,385 13% 6,081,859 12% Multiracial (2+ of the above) 1,065,236 3% 1,778,219 4% 2,862,227 6% Hispanic 15,412,728 39% 19,496,294 43% 23,304,511 46% Note: Totals may not sum due to rounding. Generational change Births through 1997 can be divided into five generations or cohorts (Table 3/Figure 3). The largest cohort in California today is the Millennial (born 1981-1997). The Millennial generation is projected to peak in size at 9.5 million persons during the 2030s, as its ranks continue to grow due to migration. Baby Boomers (born 1946-1964) constitute the second-largest cohort at present, but will rapidly diminish in size due to mortality. In 2019, Generation X (born 1965- 1980) is projected to exceed the Baby Boom generation in population size. Table 3. Population by generation: California, 2016-2060 2016 2036 2060 Total population 39,354,432 100% 45,807,050 100% 51,056,510 100% Born <1928 343,180 1% 181 <1% Born 1928-1945 2,973,738 8% 527,399 1% Born 1946-1964 8,468,780 22% 6,455,468 14% 510,480 1% Born 1965-1980 8,274,964 21% 7,891,899 17% 5,210,083 10% Born 1981-1997 9,460,216 24% 9,431,876 21% 8,918,679 17% Note: Totals by generation do not sum to total population (births after 1997 not shown). 4 Figure 3. Population by birth cohort: California, 2010-2060 Regional growth California’s population will go through phases of aging and renewal during the projection period, with varying effects by race, ethnicity, and geography. The patterns are related to the relative size of birth cohorts, decisions on where to move for education, work, family, and retirement, and the size of migration flows to and from California. Some rural counties will see replenishment of population, while others will see rising median ages. Counties in the greater Los Angeles region will add the most people over the next 45 years. During 2016-2060, Los Angeles, Riverside, and San Bernardino counties are each projected to grow by over 1 million. At present, 45 percent of Californians live in coastal southern counties (Ventura, Los Angeles, Orange, or San Diego). However, this share is projected to decrease in the coming years (declining to 42 percent in 2036 and 39 percent by 2060). The Central Valley, San Francisco Bay Area, Inland Empire, and greater Sacramento region are all expected to grow faster than the statewide average, increasing their share of the state population by 1 to 2 percentage points (Table 4). 5 Table 4. Population by region: California, 2016-2060 2016 2036 2060 Total population 39,354,432 100% 45,807,050 100% 51,056,510 100% [1] San Francisco Bay Area 7,680,709 20% 9,163,287 20% 10,468,398 21% [2] Sacramento 2,458,135 6% 3,066,335 7% 3,714,415 7% [3] Far North 1,055,315 3% 1,143,648 2% 1,229,677 2% [4] Central Valley 4,208,003 11% 5,310,906 12% 6,494,076 13% [5] Sierra Nevada 187,901 0% 198,799 0% 205,220 0% [6] Central Coast 1,502,662 4% 1,709,588 4% 1,825,151 4% [7] South Coast 17,565,890 45% 19,291,680 42% 19,990,023 39% [8] Inland Empire 4,695,817 12% 5,922,807 13% 7,129,550 14% Note: Counties by region: [1]: San Francisco, Marin, Sonoma, Napa, Solano, Contra Costa, Alameda, Santa Clara, San Mateo; [2] Sacramento, Sutter, Yuba, Yolo, Placer, El Dorado; [4] San Joaquin, Stanislaus, Merced, Madera, Fresno Kinds, Tulare, Kern; [5] Alpine, Amador, Calaveras, Tuolumne, Mariposa, Mono, Inyo; [6] Santa Cruz, San Benito, Monterey, San Luis Obispo, Santa Barbara; [7] Ventura, Los Angeles, Orange, San Diego; [8] San Bernardino, Riverside, Imperial; [3] all others. Kern is projected to overtake Fresno County in population size during 2052 (Table 5). During the next 20 years, the highest growth rates (above 1 percent annually) are expected in the Central Valley counties of Yolo, Kern, Madera, Placer, and San Joaquin (Table 6). Table 5. Largest counties: California, 2016-2060 10 Largest Counties Rank 2016 2036 2060 1 Los Angeles 10,229,245 Los Angeles 11,070,046 Los Angeles 11,251,434 2 San Diego 3,300,891 San Diego 3,756,811 San Diego 4,136,812 3 Orange 3,181,371 Orange 3,516,426 Orange 3,617,223 4 Riverside 2,360,727 Riverside 3,052,045 Riverside 3,602,352 5 San Bernardino 2,147,933 San Bernardino 2,636,148 San Bernardino 3,237,092 6 Santa Clara 1,930,215 Santa Clara 2,358,693 Santa Clara 2,810,865 7 Alameda 1,637,712 Alameda 1,973,632 Alameda 2,265,671 8 Sacramento 1,506,677 Sacramento 1,871,993 Sacramento 2,262,556 9 Contra Costa 1,129,894 Contra Costa 1,384,877 Contra Costa 1,568,920 10 Fresno 989,183 Fresno 1,212,462 Kern 1,488,228 6 Table 6. Fastest growing counties: California, 2015-2060 10 Fastest Growing Counties Rank 2015-2016 2016-2036 2016-2060 1 Yolo 1.9% Yolo 1.3% Yolo 1.2% 2 San Joaquin 1.5% Kern 1.3% Madera 1.2% 3 Placer 1.4% Madera 1.3% Kern 1.2% 4 Riverside 1.3% Placer 1.3% Merced 1.2% 5 Stanislaus 1.2% San Joaquin 1.3% Placer 1.0% 6 Contra Costa 1.2% Riverside 1.3% San Joaquin 1.0% 7 Solano 1.1% Merced 1.3% Imperial 1.0% 8 Sacramento 1.1% Imperial 1.1% Riverside 1.0% 9 Monterey 1.1% Sacramento 1.1% San Bernardino 0.9% 10 Alameda 1.1% Stanislaus 1.1% Sacramento 0.9% These 2016 baseline population projections are used by state and local government agencies to anticipate and plan for future population needs and resource demands, as well as to measure incidence rates and program effectiveness. The Department of Finance uses a cohort- component method to project population by age, gender, and race/ethnicity. A cohort- component method traces people born in a given year through their lives: with each passing year, new cohorts are formed by applying fertility assumptions, and the population at each age grows or shrinks due to aging, mortality, and migration assumptions. The baseline assumptions of the projections are the continuation of changing demographic dynamics within the norm of historical experience. The projections assume that the trends described in the projections will continue irrespective of recent or anticipated legislation or policy changes. The projections are developed in consultation with local and regional authorities, who may make different assumptions in their analysis that are partly reflected in the final migration, fertility, and mortality forecasts when their input is taken into consideration. County tables and maps are appended. Additional datasets and methodological notes are available from the Department of Finance website: http://www.dof.ca.gov/Forecasting/Demographics/Projections/ 1 Crude birth rate: number of births per 1,000 population. 2 Crude death rate: number of deaths per 1,000 population. 3 Total fertility rate: a synthetic measure of fertility representing the hypothetical number of children born to a woman during her lifetime, if she experienced the age-specific rates for the period in question throughout her reproductive life. 7 Total Estimated and Projected Population for California and Counties: July 1, 2010 to July 1, 2060 in 5-year Increments Estimates Projections 2010 2015 2025 2030 2035 2040 2045 2050 2055 2060 California 37,333,583 39,059,809 42,407,005 44,019,846 45,521,334 46,884,801 48,088,425 49,158,401 50,124,768 51,056,510 Alameda County 1,515,338 1,619,679 1,795,390 1,878,556 1,958,389 2,032,262 2,099,569 2,159,782 2,213,971 2,265,671 Alpine County 1,175 1,157 1,134 1,150 1,169 1,164 1,141 1,105 1,078 1,057 Amador County 38,069 37,314 38,977 40,134 41,083 41,719 42,197 42,711 43,391 44,245 Butte County 220,157 224,363 238,546 247,339 256,042 263,642 270,612 277,512 285,290 292,892 Calaveras County 45,535 44,899 46,143 47,129 47,851 48,242 48,465 48,775 49,397 50,468 Colusa County 21,465 22,271 24,085 24,980 25,765 26,451 26,989 27,482 28,013 28,626 Contra Costa County 1,051,525 1,116,882 1,250,935 1,314,573 1,373,950 1,426,050 1,469,258 1,505,996 1,537,429 1,568,920 Del Norte County 28,387 27,119 27,467 27,775 28,062 28,309 28,553 28,773 29,082 29,550 El Dorado County 180,975 183,140 196,057 204,977 214,008 221,939 228,335 234,290 241,185 249,924 Fresno County 932,628 979,357 1,088,963 1,145,646 1,201,416 1,256,572 1,309,006 1,358,963 1,407,602 1,457,705 Glenn County 28,182 28,960 30,605 31,594 32,502 33,261 33,856 34,357 34,841 35,389 Humboldt County 134,929 135,090 140,298 141,501 142,085 141,958 141,625 141,193 140,651 140,489 Imperial County 175,107 185,328 208,364 220,459 232,298 243,975 255,677 267,419 278,720 290,106 Inyo County 18,539 18,640 19,048 19,219 19,339 19,360 19,307 19,176 18,993 18,864 Kern County 841,887 883,327 995,408 1,067,631 1,141,109 1,213,558 1,283,154 1,350,705 1,419,039 1,488,228 Kings County 152,175 149,702 162,049 170,105 178,505 187,048 195,106 202,760 209,804 217,058 Lake County 64,905 65,180 66,476 67,718 69,030 70,275 71,574 73,015 74,769 76,877 Lassen County 34,869 30,969 30,478 30,157 29,668 29,117 28,521 27,941 27,408 26,999 Los Angeles County 9,837,011 10,185,487 10,688,523 10,885,337 11,042,709 11,161,569 11,238,210 11,274,596 11,275,452 11,251,434 Madera County 150,193 154,956 174,156 186,761 199,556 212,229 224,744 237,116 249,271 262,065 Marin County 252,185 262,105 270,747 274,243 277,316 278,955 278,811 277,335 275,223 273,469 Mariposa County 18,245 18,088 18,243 18,481 18,698 18,823 18,967 19,112 19,323 19,655 Mendocino County 87,661 88,429 92,145 93,657 94,782 95,329 95,500 95,608 95,847 96,369 Merced County 256,803 269,729 305,794 326,574 348,150 369,193 389,832 410,095 430,832 452,519 Modoc County 9,689 9,507 9,228 9,177 9,105 8,971 8,808 8,656 8,543 8,497 Mono County 14,017 13,818 14,389 14,692 14,928 15,020 14,974 14,778 14,473 14,179 Monterey County 414,915 436,242 475,105 491,601 507,123 521,041 532,661 541,508 548,649 554,839 Napa County 136,237 141,546 149,471 154,107 158,238 161,795 164,541 166,634 168,466 170,408 Nevada County 98,517 98,190 102,549 105,732 108,910 111,421 113,423 115,821 119,222 123,679 Orange County 3,014,962 3,161,218 3,351,315 3,434,157 3,504,411 3,558,718 3,595,775 3,616,582 3,621,879 3,617,223 Placer County 350,052 370,738 424,858 454,102 482,171 507,740 530,743 551,660 572,485 594,279 Plumas County 19,982 19,586 19,194 19,022 18,760 18,366 17,947 17,605 17,473 17,538 Riverside County 2,196,137 2,329,256 2,692,006 2,863,260 3,021,572 3,165,363 3,292,187 3,406,136 3,507,769 3,602,352 Sacramento County 1,421,628 1,489,952 1,669,830 1,762,759 1,854,128 1,942,004 2,025,927 2,105,299 2,183,173 2,262,556 San Benito County 55,401 57,584 63,368 66,796 70,220 73,535 76,499 79,210 81,812 84,473 San Bernardino County 2,044,228 2,129,851 2,357,002 2,483,568 2,610,720 2,735,646 2,857,883 2,981,484 3,105,723 3,237,092 San Diego County 3,100,529 3,275,084 3,529,054 3,638,609 3,737,507 3,830,210 3,916,308 3,997,108 4,069,577 4,136,812 San Francisco County 809,174 863,108 945,660 981,738 1,015,352 1,047,902 1,081,493 1,117,661 1,156,570 1,196,108 San Joaquin County 687,827 727,547 839,665 895,240 947,929 996,379 1,040,015 1,079,902 1,116,089 1,150,034 San Luis Obispo County 269,013 276,844 295,019 302,323 307,467 310,367 310,573 309,424 308,155 307,681 San Mateo County 720,496 764,379 822,392 846,852 867,540 886,272 902,065 915,205 927,366 938,228 Santa Barbara County 423,552 444,900 477,699 492,495 505,338 516,163 524,590 531,252 536,043 540,508 Santa Clara County 1,790,301 1,915,102 2,124,780 2,230,564 2,337,470 2,443,718 2,545,513 2,640,473 2,726,922 2,810,865 Santa Cruz County 262,341 274,697 294,233 303,377 311,059 317,542 322,998 327,682 332,459 337,650 Shasta County 177,062 178,777 184,384 188,847 193,030 196,656 199,830 202,817 206,244 210,014 Sierra County 3,233 3,147 3,126 3,092 3,042 2,985 2,931 2,899 2,890 2,910 Siskiyou County 44,862 44,500 44,352 44,492 44,522 44,339 44,095 44,024 44,290 44,954 Solano County 412,573 429,267 482,723 509,230 534,008 556,679 576,963 595,865 614,246 633,039 Sonoma County 483,844 501,182 538,701 558,134 574,747 586,957 595,413 601,189 606,178 611,690 Stanislaus County 515,888 538,372 605,618 638,995 670,443 699,177 724,772 747,343 768,026 787,300 Sutter County 94,859 97,618 106,589 111,423 116,316 120,845 125,529 129,929 134,607 139,449 Tehama County 63,505 63,970 66,956 69,004 71,036 72,859 74,607 76,483 78,493 80,751 Trinity County 13,779 13,562 13,324 13,314 13,271 13,224 13,200 13,311 13,623 14,143 Tulare County 442,551 463,291 514,101 541,140 568,186 594,348 617,916 639,477 659,482 679,167 Tuolumne County 55,350 54,525 54,470 54,958 55,369 55,557 55,588 55,691 56,063 56,752 Ventura County 824,467 852,013 896,731 922,001 944,298 961,828 973,476 979,739 982,270 984,554 Yolo County 202,352 212,686 245,902 262,418 279,236 296,657 313,962 331,183 348,267 365,773 Yuba County 72,315 75,579 83,180 86,931 90,400 93,517 96,211 98,554 100,630 102,434 Projections Prepared by Demographic Research Unit, California Department of Finance, February 2017 8 California 2010 Median Age Del Norte Siskiyou Modoc µ Shasta Trinity Lassen Humboldt Tehama Plumas Butte Mendocino Glenn Sierra Nevada California: 35 Lake Colusa S Yuba Placer u tte r El Dorado Yolo Sonoma Alpine Marin Napa Solano Sacrament A o m C a a d l o av r eras Contra San Tuolumne Costa Joaquin Mono San Francisco Alameda Stanislaus Mariposa San Mateo Santa Clara Merced d era Santa Ma Cruz Fresno San Benito Inyo Tulare Monterey Kings San Luis Kern Obispo Median Age San Bernardino 29 Santa Barbara Ventura 30 - 34 Los Angeles 35 - 39 Riverside Orange 40 - 44 San Imperial Diego 45 - 49 50 - 51 0 20 40 80 120 160 Miles Source: U.S. Census Bureau, 2010 Census. Map prepared by: California Department of Finance, Demographic Research Unit, February 2017. California Projected 2035 Median Age Del Norte Siskiyou Modoc µ Shasta Trinity Lassen Humboldt Tehama Plumas Butte Mendocino Glenn Sierra Nevada California: 41 Lake Colusa S Yuba Placer u tte r El Dorado Yolo Sonoma Alpine Marin Napa Solano Sacrament A o m C a a d l o av r eras Contra San Tuolumne Costa Joaquin Mono San Francisco Alameda Stanislaus Mariposa San Mateo Santa Clara Merced d era Santa Ma Cruz Fresno San Benito Inyo Tulare Monterey Kings San Luis Kern Obispo Median Age San Bernardino 26 - 29 Santa Barbara Ventura 30 - 34 Los Angeles 35 - 39 Riverside Orange 40 - 44 San Imperial Diego 45 - 49 50 - 56 0 20 40 80 120 160 Miles Source: California Department of Finance, Population Projections for California and its Counties, 2016 Baseline Series. Map prepared by: California Department of Finance, Demographic Research Unit, February 2017. California Projected Population Growth 2010 to 2035 Numeric Change Del Norte Siskiyou Modoc µ Shasta Trinity Lassen Humboldt Tehama Plumas Butte Mendocino Glenn Sierra California: 8,150,486 Nevada Lake Colusa S Yuba Placer u tte r El Dorado Yolo Sonoma Alpine Marin Napa Solano Sacrament A o m C a a d l o av r eras Contra San Tuolumne Costa Joaquin Mono San Francisco Alameda Stanislaus Mariposa San Mateo Santa Clara Merced d era a Santa M Cruz Fresno San Benito Inyo Tulare Monterey Kings San Luis Kern Obispo San Bernardino Numeric Change Santa Barbara -4,181 to -1 Ventura Los Angeles 0 to 19,999 Riverside 20,000 to 99,999 Orange 100,000 to 299,999 San Imperial Diego 300,000 to 999,999 1,000,000 to 1,237,874 0 15 30 60 90 120 Miles Source: California Department of Finance, Population Projections for California and its Counties, 2016 Baseline Series. Map prepared by: California Department of Finance, Demographic Research Unit, February 2017. California Projected Population Growth 2010 to 2035 Percent Change Del Norte Siskiyou µ Modoc Shasta Trinity Lassen Humboldt Tehama Plumas Butte Mendocino Glenn Sierra California: 21.8 Percent Nevada Lake Colusa S Yuba Placer u tte r El Dorado Yolo Sonoma Alpine Marin Napa Solano Sacrament A o m C a a d l o av r eras Contra San Tuolumne Costa Joaquin Mono San Francisco Alameda Stanislaus Mariposa San Mateo Santa Clara Merced d era Santa Ma Cruz Fresno San Benito Inyo Tulare Monterey Kings San Luis Kern Obispo San Bernardino Santa Barbara Percent Change Ventura Los Angeles -12.0 to -0.1 Riverside Orange 0.0 to 14.9 15.0 to 29.9 San Imperial Diego 30.0 to 39.9 0 20 40 80 120 160 Miles Source: California Department of Finance, Population Projections for California and its Counties, 2016 Baseline Series. Map prepared by: California Department of Finance, Demographic Research Unit, February 2017. AP.4: PLACER COUNTY WATER SYSTEMS Appendix AP.4 -Placer County Water Systems Drinking Water Branch Safe Drinking Water Information System Source: https://sdwis.waterboards.ca.gov/PDWW/JSP/WaterSystems.jsp? PointOfContactType=none&number=&name=&county=Placer Primary Water System Principal Water System Name Type Status Source Water No. County Served Type CA3103294 8200 WATER SYSTEM NTNC A PLACER GW AGATE BAY WATER CA3110012 C A PLACER SW COMPANY ALPINE MEADOWS CA3100041 C A PLACER SW PROPERTY OWNERS ASSO ALPINE SPRINGS COUNTY CA3110029 C A PLACER GW WATER DISTRICT ANTELOPE OAKS WATER CA3107329 NTNC A PLACER GW SYSTEM CA3105886 ANTELOPE SPRINGS NC A PLACER GW APPLEGATE MOTEL WATER CA3100102 NC A PLACER GW SYSTEM CA3107069 APPLEGATE PARK NC A PLACER GW CA3103195 APPLEGATE STATION NC A PLACER GW CA3107313 AQUAPURE NTNC A PLACER GW CA3100069 AUBURN RIDGE WOODS C A PLACER GW AUBURN VALLEY CA3100011 C A PLACER GW COMMUNITY SERVICE DIS BAKER RANCH WATER CA3100014 C A PLACER GW COMPANY CA3107332 BEAR VALLEY YMCA CAMP NC A PLACER GW BEAR VALLEY, SIERRA CA3105852 NC A PLACER GW DISCOVERY TRAIL BIG BEND CAMPGROUND & CA3100080 NC A PLACER GW ADMIN SITE CA3100086 BIG TREES PICNIC GROUND NC A PLACER GW CA3110150 CALAM - WEST PLACER C A PLACER SWP CALTRANS-WHITMORE CA3104519 NC A PLACER GW MAINT. STATION CA3104449 CAMP WINTHERS NC A PLACER SW CAPITAL MT CHRISTIAN CA3103209 NC A PLACER GW CAMP CA3110033 CASTLE CITY MHP C A PLACER SWP CHRISTIAN VALLEY PARK CA3110034 C A PLACER SW CSD CA3100008 CISCO GAS & FOOD NC A PLACER GW CISCO GROVE CA3106501 NC A PLACER GW CAMPGROUND & RV PARK CA3110004 CITY OF LINCOLN C A PLACER SWP CA3110008 CITY OF ROSEVILLE C A PLACER SW CA3100105 CLIPPER GAP HEAD START NTNC A PLACER GW COMMUNITY OF THE GREAT CA3103218 NC A PLACER GW COMMISSION DRY CREEK ELEMENTARY CA3100077 NTNC A PLACER GW SCHOOL CA3100034 DSPUD-BIG BEND NC A PLACER GW CA3100058 DUTCH FLAT MUTUAL C A PLACER SW EASTERN REGIONAL CA3105779 SANITARY LANDFILL NTNC A PLACER GW WATER EMIGRANT GAP MUTUAL CA3103310 C A PLACER GW WATER CO. CA3103234 EVERYBODY'S INN NC A PLACER GW FOLSOM LAKE MUTUAL CA3107339 C A PLACER SWP WATER CO FORESTHILL PUBLIC UTILITY CA3110003 C A PLACER SW DIST FRENCH MEADOWS NORTH CA3100085 NC A PLACER GW SHORE FRENCH MEADOWS SOUTH CA3100084 NC A PLACER GW SHORE CA3110015 FULTON WATER COMPANY C A PLACER SW GOLD HILL MOBILEHOME CA3100043 C A PLACER GW PARK GOLD RUN RECREATION CA3100106 NC A PLACER GW ENTERPRISES GOLDEN HILLS MUTUAL CA3100528 C A PLACER SWP WATER CO CA3103297 GOOSE MEADOWS NC A PLACER GW GRANITE FLAT CA3103665 NC A PLACER GW CAMPGROUND HAMPSHIRE ROCKS CA3100082 NC A PLACER GW CAMPGROUND HEATHER GLEN CA3100038 C A PLACER SW COMMUNITY SERVICE DIST CA3100120 HELL HOLE NC A PLACER GW CA3107327 HIDDEN FALLS NC A PLACER GW HIDDEN VALLEY CA3103836 C A PLACER SWP COMMUNITY ASSOCIATION CA3104508 HUPPE MOORE LANDSCAPE NTNC A PLACER GW INDIAN CREEK GOLF CA3100062 NC A PLACER GW COURSE JEHOVAH'S WITNESS/VISTA CA3106491 NC A PLACER GW CONG. JESUIT RETREAT CENTER OF CA3107323 NC A PLACER GW THE SIERRA CA3105853 KIDD LAKE NC A PLACER GW CA3107324 KILNER PARK NC A PLACER GW CA3100067 LAKE ARTHUR CABINS NC A PLACER GW LAKEVIEW HILLS CA3103835 C A PLACER SWP COMMUNITY ASSOC LDS RECREATION BALL CA3103257 NC A PLACER GW PARK LIVE OAK WALDORF CA3100072 NTNC A PLACER GW SCHOOL CA3105446 LODGEPOLE CAMPGROUND NC A PLACER GW CA3103247 LOOMIS COMMUNITY PARK NC A PLACER GW LOOMIS LAND INC SENIOR CA3106937 NTNC A PLACER GW CARE VILLA WATER MADDEN CREEK WATER CA3110043 C A PLACER GW COMPANY CA3110022 MCKINNEY WATER DISTRICT C A PLACER GW CA3110009 MEADOW VISTA CWD C A PLACER SW MIDDLE MEADOWS CA3100119 NC A PLACER GU CAMPGROUND CA3110041 MIDWAY HEIGHTS C. W. D. C A PLACER SWP CA3103279 MKS APPLEGATE NC A PLACER GW MORNING STAR LAKE CA3100010 NC A PLACER GW RESORT NEVADA ID - NORTH CA3110026 C A PLACER SW AUBURN CA3100019 NORTH EDEN VALLEY C A PLACER GW CA3100081 NORTH FORK CAMPGROUND NC A PLACER GW NORTH TAHOE PUD - CA3110023 C A PLACER GW CARNELIAN WOODS NORTH TAHOE PUD - CA3110036 C A PLACER GWP DOLLAR COVE CA3110001 NORTH TAHOE PUD - MAIN C A PLACER SW NORTHSTAR AT TAHOE CA3107322 NTNC A PLACER GW COMSTOCK WATER SYSTEM CA3110028 NORTHSTAR C.S.D. C A PLACER SW NORTHSTAR SUMMIT DECK CA3107311 NC A PLACER GW & GRILL CA3103291 NYACK WATER SYSTEM NTNC A PLACER GW CA3100114 OLIVERS GROCERY NC A PLACER GW OPHIR ELEMENTARY CA3100083 NTNC A PLACER GW SCHOOL WATER SYSTEM CA3107321 PALISADES WATER SYSTEM NC A PLACER GW CA3103259 PENRYN OAKS PRESCHOOL NTNC A PLACER GW CA3110048 PLACER CSA - SHERIDAN C A PLACER GW CA3110024 PLACER CWA - ALTA C A PLACER SW CA3110050 PLACER CWA - APPLEGATE C A PLACER SW PLACER CWA - CA3110005 C A PLACER SW AUBURN/BOWMAN PLACER CWA - BIANCHI CA3110040 C A PLACER SWP ESTATES CA3110006 PLACER CWA - COLFAX C A PLACER SW CA3110025 PLACER CWA - FOOTHILL C A PLACER SW PLACER CWA - MARTIS CA3110051 C A PLACER GW VALLEY PLACER CWA - MONTE CA3110124 C A PLACER SW VISTA RAINBOW SPRINGS PUBLIC CA3100027 NC A PLACER GW WATER SYSTEM CA3105918 RIDE TO WALK NC A PLACER GW CA3103260 ROBINSON FLAT NC A PLACER GW ROCKANNA ROYALE CA3100023 C A PLACER GW MOBILE HOME PARK ROLLINS LAKE RESORT, CA3103283 NC A PLACER GW LONG RAVINE CA3100538 ROSECREST MUTUAL C A PLACER GW SHADY GLEN COMM WATER CA3100040 C A PLACER SW SYSTEM SIERRA LAKES COUNTY CA3110017 C A PLACER SW WATER DIST SIERRA MEADOWS CA3100061 C A PLACER GW APARTMENT CA3100079 SIERRA REACH MINISTRIES NC A PLACER GW CA3107318 SIERRA WOODS LODGE NC A PLACER GW SILVER CREEK CA3100088 NC A PLACER GW CAMPGROUND SILVER CREEK SUMMER CA3103666 NC A PLACER GW HOME TRACT SKY MOUNTAIN CHRISTIAN CA3104457 NC A PLACER GW CAMP CA3103288 SNOWFLOWER NC A PLACER SW CA3110019 SQUAW VALLEY MWC C A PLACER GW CA3110020 SQUAW VALLEY PSD C A PLACER GW CA3103261 SUGAR PINE RESERVIOR NC A PLACER GW TAHOE CEDARS WATER CA3110013 C A PLACER GW COMPANY TAHOE CITY PUD - ALPINE CA3110044 C A PLACER GW PEAKS CA3110010 TAHOE CITY PUD - MAIN C A PLACER GW TAHOE CITY PUD - CA3110011 C A PLACER SW MCKINNEY/QUAIL TAHOE PARK WATER CO - CA3110049 C A PLACER GW SKYLAND/NIELSEN TAHOE PARK WATER CA3110018 C A PLACER SW COMPANY TAHOE SWISS VILLAGE CA3110042 C A PLACER SW UTILITY CA3107315 TAHOE VISTANA NC A PLACER GW TALMONT RESORT CA3110047 C A PLACER GW IMPROVEMENT DISTRICT CA3107328 TAMARACK LODGE NC A PLACER GW TIMBERLAND WATER CA3100029 C A PLACER GW COMPANY INC CA3107084 TURKEY CREEK GOLF CLUB NTNC A PLACER GW VETERINARY CA3107310 NTNC A PLACER GW DEVELOPMENT COMPANY WAKE ISLAND WATER CA3107338 NC A PLACER GW SYSTEM WARD WELL WATER CA3110031 C A PLACER GW COMPANY CA3110035 WEIMAR WATER COMPANY C A PLACER SW CA3107337 WISE VILLA WINERY NC A PLACER GW CA3107330 445 WARD AVE WELL NC I PLACER GW CA3105895 BLACK BEAR TAVERN NTNC I PLACER GW CA3103205 BLACK OAK GOLF COURSE NC I PLACER GW BLUE CANYON WATER CA3100057 NC I PLACER GW ASSOCIATION CEMEX (PATTERSON SAND & CA3107314 NTNC I PLACER GW GRAVEL) CA3104509 FOOTHILL BIBLE CHURCH NC I PLACER GW CA3107316 FULDA FLAT CAMP NC I PLACER GU CA3100048 IMMACULATE CONCEPTION NTNC I PLACER GW KASPIAN POINT PICNIC CA3103664 NC I PLACER GW AREA LAKE FOREST UTILITY CA3110032 C I PLACER SWP COMPANY CA3100063 OPHIR GARDENS C I PLACER GW SONS OF NORWAY REC CA3100096 NC I PLACER GW CENTER TIMBER HILLS MUTUAL CA3100001 C I PLACER SWP WATER CO Notes: (a) Water system type definitions: C = Community: Serves at least 15 service connections used by year‐round residents or regularly serves 25 year‐round residents. NTNC = Non‐Transient Non‐Community: Serves at least the same 25 non‐residential individuals during 6 months of the year. NC = Transient Non‐Community: Regularly serves at least 25 non‐residential individuals (transient) during 60 or more days per year. (b) Primary source of water GW = Ground Water SW = Surface Water AP.5: DEMOGRAPHIC REPORT FOR PLACER COUNTY DEMOGRAPHICS STARTER REPORT Placer County CALIFORNIA TABLE OF CONTENTS Topic Page Summary 2 Population 3 Race 4 Sex 6 Age Breakdown 6 Educational Attainment 7 Households 8 Income 9 Poverty 9 Housing 10 Citations 11 prepared by www.cubitplanning.com DEMOGRAPHICS STARTER REPORT Placer County, CA Page 2 2017 POPULATION MEDIAN HOUSEHOLD INCOME 386,166 $76,926 SEX BY AGE 40k 27,727 20k 21,603 22,484 24,312 25,328 19,244 20,344 22,663 21,931 25,628 24,638 25,337 23,156 20,760 25,448 19,968 0k 0 to 9 10 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60 to 69 70+ Female Male EDUCATIONAL ATTAINMENT RACE & ORIGIN 5.8% 13.5% 12.2% 3.7% 19.2% 0.1% 0.1% 6.6% 0.3% 24.8% 1.4% 74.3% 38.1% White Black American Indian No Diploma High School Some College Asian Islander Other Two Bachelors Graduate Hispanic POVERTY UNEMPLOYMENT HOUSING UNITS HOUSEHOLDS 6.2% 4.3% 157,888 136,730 for all families whose income in the past 12 months is below for the population 16 years & over in the labor force houses, apartments, mobile homes, group of rooms or all the people who occupy a housing unit the poverty level single rooms that serve as separate living quarters Source: United States Census Bureau. The US Census Bureau's 2017 Population Estimates dataset has the most current population estimate data. The US Census Bureau's 2016 American Community Survey dataset has the most current demographic data (i.e. race). DEMOGRAPHICS STARTER REPORT Placer County, CA Page 3 POPULATION 400k 386,166 379,742 380k 373,469 369,727 370,571 365,822 360,569 360k 356,445 340k 2011 2012 2013 2014 2015 2016 2017 Population Estimates (PEP) Population Estimates (ACS) Population Estimates (ACS) # % Change 2016 5-yr estimate 370,571 - Source: American Community Survey 2016 Population Estimates (PEP) # % Change 2011 356,445 - 2012 360,569 1.2% 2013 365,822 1.5% 2014 369,727 1.1% 2015 373,469 1.0% 2016 379,742 1.7% 2017 386,166 1.7% Source: Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2017 Historical Population Counts # % Change 2000 248,399 - 2010 348,432 40.3% Source: Decennial Census 2010, 2000 DEMOGRAPHICS STARTER REPORT Placer County, CA Page 4 RACE Race & Origin (Hispanic) Hispanic: 13.5% Two or More: 3.7% Some Other Race: 0.1% Islander: 0.1% Asian: 6.6% American Indian: 0.3% Black: 1.4% White: 74.3% # % Non-Hispanic 320,667 86.5% White 275,220 74.3% Black 5,162 1.4% American Indian 1,252 0.3% Asian 24,485 6.6% Islander 529 0.1% Other 335 0.1% Two or More 13,684 3.7% Hispanic 49,904 13.5% Total Population 370,571 - The complete Census race descriptions are as follows: White alone; Black or African American alone; American Indian and Alaska Native alone; Asian alone; Native Hawaiian and Other Pacific Islander alone; Some Other Race alone; and Two or More Races. Hispanics may be of any race. For more information, visit the American Community Survey Data & Documentation page: http://www.census.gov/acs/www/data_documentation/documentation_main/. Source: American Community Survey 2016 DEMOGRAPHICS STARTER REPORT Placer County, CA Page 5 Detailed Race # % One race 352,826 95.2% White 308,414 83.2% Black or African American 5,473 1.5% American Indian and Alaska Native 1,957 0.5% Cherokee tribal grouping 257 0.1% Chippewa tribal grouping 32 0.0% Navajo tribal grouping 119 0.0% Sioux tribal grouping 39 0.0% Asian 24,862 6.7% Asian Indian 5,108 1.4% Chinese 4,049 1.1% Filipino 7,982 2.2% Japanese 1,941 0.5% Korean 1,609 0.4% Vietnamese 1,493 0.4% Other Asian 2,680 0.7% Native Hawaiian and Other Pacific Islander 585 0.2% Native Hawaiian 243 0.1% Guamanian or Chamorro 128 0.0% Samoan 20 0.0% Other Pacific Islander 194 0.1% Some other race 11,535 3.1% Two or more races 17,745 4.8% White and Black or African American 2,147 0.6% White and American Indian and Alaska Native 4,087 1.1% White and Asian 5,584 1.5% Black or African American and American Indian and Alaska 128 0.0% Native Total Population 370,571 - Source: American Community Survey 2016 DEMOGRAPHICS STARTER REPORT Placer County, CA Page 6 Hispanic or Latino # % Non-Hispanic 320,667 86.5% Hispanic or Latino (of any race) 49,904 13.5% Mexican 37,822 10.2% Puerto Rican 2,077 0.6% Cuban 517 0.1% Other 9,488 2.6% Total Population 370,571 - Source: American Community Survey 2016 SEX # % Male 180,790 48.8% Female 189,781 51.2% Total Population 370,571 - Source: American Community Survey 2016 AGE BREAKDOWN # % 0 to 9 years 44,087 11.9% 10 to 19 years 49,640 13.4% 20 to 29 years 39,588 10.7% 30 to 39 years 44,594 12.0% 40 to 49 years 50,266 13.6% 50 to 59 years 53,064 14.3% 60 to 69 years 43,916 11.9% 70+ years 45,416 12.3% Total Population 370,571 - Source: American Community Survey 2016 DEMOGRAPHICS STARTER REPORT Placer County, CA Page 7 EDUCATIONAL ATTAINMENT 5.8% 12.2% 19.2% 24.8% 38.1% No Diploma High School Some College Bachelors Graduate # % No diploma 14,879 5.8% High school graduate & equivalency 49,288 19.2% Associate degree & some college, no degree 97,742 38.1% Bachelor's degree 63,509 24.8% Graduate or Professional degree 31,180 12.2% Population 25 Years and Over 256,598 - Source: American Community Survey 2016 DEMOGRAPHICS STARTER REPORT Placer County, CA Page 8 HOUSEHOLDS Average Household Size 2.68 persons Average Family Size 3.20 persons A household includes all the people who occupy a housing unit. (People not living in households are classified as living in group quarters.) A family household consists of a householder and one or more other people living in the same household who are related to the householder by birth, marriage, or adoption. For more information, visit the American Community Survey Data & Documentation page: http://www.census.gov/acs/www/data_documentation/documentation_main/. Source: American Community Survey 2016 Household Types # % Family households (families) 95,580 69.9% With own children under 18 years 41,214 30.1% Married-couple family 77,768 56.9% With own children under 18 years 31,725 23.2% Male householder, no wife present 4,882 3.6% With own children under 18 years 2,383 1.7% Female householder, no husband present 12,930 9.5% With own children under 18 years 7,106 5.2% Nonfamily households 41,150 30.1% Householder living alone 33,380 24.4% 65 years and over 15,909 11.6% Total households 136,730 - A family household consists of a householder and one or more other people living in the same household who are related to the householder by birth, marriage, or adoption. A nonfamily household is a householder living alone or with nonrelatives only. Same-sex couple households with no relatives of the householder present are tabulated in nonfamily households. For more information, visit the American Community Survey Data & Documentation page: http://www.census.gov/acs/www/data_documentation/documentation_main/. Source: American Community Survey 2016 DEMOGRAPHICS STARTER REPORT Placer County, CA Page 9 INCOME Median Household Income Census 2000 in 1999 dollars $57,535 American Community Survey (ACS) 2016 in 2016 $76,926 inflation adjusted dollars Source: Decennial Census 2000, American Community Survey 2016 Household Income Distribution Income in thousands. # % Less than $10 5,487 4.0% $10 to $14.9 5,155 3.8% $15 to $24.9 9,481 6.9% $25 to $34.9 9,949 7.3% $35 to $49.9 13,734 10.0% $50 to $74.9 22,789 16.7% $75 to $99.9 18,050 13.2% $100 to $149.9 26,586 19.4% $150 to $199.9 13,342 9.8% $200K+ 12,157 8.9% Total Households 136,730 - Source: American Community Survey 2016 POVERTY # % Families with Income in the past 12 months below (X) 6.2% poverty level Population with Income in the past 12 months below (X) 8.7% poverty level Source: American Community Survey 2016 DEMOGRAPHICS STARTER REPORT Placer County, CA Page 10 HOUSING Occupancy # % Occupied Housing Units 136,730 86.6% Owner-occupied Housing Units 95,824 70.1% Renter-occupied Housing Units 40,906 29.9% Vacant Housing Units 21,158 13.4% Total Housing Units 157,888 - Source: American Community Survey 2016 Renter-occupied: 29.9% Owner-occupied: 70.1% Value # % Median Value of Owner-occupied Housing Units $380,900 - Source: American Community Survey 2016 DEMOGRAPHICS STARTER REPORT Placer County, CA Page 11 CITATIONS & NOTES Citations United States Census Bureau / American FactFinder. "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2017". 2017 Population Estimates Program. Web. March 2018. http://factfinder2.census.gov United States Census Bureau / American FactFinder. "DP02: SELECTED SOCIAL CHARACTERISTICS IN THE UNITED STATES". 2012 - 2016 American Community Survey. U.S. Census Bureau's American Community Survey Office. Web. 7 December 2017 http://factfinder2.census.gov. United States Census Bureau / American FactFinder. "DP03: SELECTED ECONOMIC CHARACTERISTICS". 2012 - 2016 American Community Survey. U.S. Census Bureau's American Community Survey Office. Web. 7 December 2017 http://factfinder2.census.gov. United States Census Bureau / American FactFinder. "DP04: SELECTED HOUSING CHARACTERISTICS". 2012 - 2016 American Community Survey. U.S. Census Bureau's American Community Survey Office. Web. 7 December 2017 http://factfinder2.census.gov. United States Census Bureau / American FactFinder. "DP05 : ACS DEMOGRAPHIC AND HOUSING ESTIMATES". 2012 - 2016 American Community Survey. U.S. Census Bureau's American Community Survey Office. Web. 7 December 2017 http://factfinder2.census.gov. United States Census Bureau. "B01001 Sex by Age." 2012 - 2016 American Community Survey. U.S. Census Bureau's American Community Survey Office. Web. 7 December 2017 http://ftp2.census.gov/. United States Census Bureau. 1990 Census. U.S. Census Bureau, 2007.Web. 17 October 2012 ftp://ftp.census.gov/census_1990/. United States Census Bureau. 2000 Census. U.S. Census Bureau, 2011.Web. 17 October 2012 ftp://ftp.census.gov/census_2000/. United States Census Bureau. 2010 Census. U.S. Census Bureau, 2012.Web. 17 October 2012 ftp://ftp.census.gov/census_2010/. Notes American Community Survey data are estimates, not counts. Although the American Community Survey (ACS) produces population, demographic and housing unit estimates, it is the Census Bureau's Population Estimates Program that produces and disseminates the official estimates of the population for the nation, states, counties, cities and towns and estimates of housing units for states and counties. Supporting documentation on code lists, subject definitions, data accuracy, and statistical testing can be found on the American Community Survey website in the Data and Documentation section. Sample size and data quality measures (including coverage rates, allocation rates, and response rates) can be found on the American Community Survey website in the Methodology section. Data are based on a sample and are subject to sampling variability. The degree of uncertainty for an estimate arising from sampling variability is represented through the use of a margin of error. The value shown here is the 90 percent margin of error. The margin of error can be interpreted roughly as providing a 90 percent probability that the interval defined by the estimate minus the margin of error and the estimate plus the margin of error (the lower and upper confidence bounds) contains the true value. In addition to sampling variability, the ACS estimates are subject to nonsampling error (for a discussion of nonsampling variability, see Accuracy of the Data). The effect of nonsampling error is not represented in these tables. The ACS questions on Hispanic origin and race were revised in 2008 to make them consistent with the Census 2010 question wording. Any changes in estimates for 2008 and beyond may be due to demographic changes, as well as factors including questionnaire changes, differences in ACS population controls, and methodological differences in the population estimates, and therefore should be used with caution. For a summary of questionnaire changes see http://www.census.gov/acs/www/methodology/questionnaire_changes/. For more information about changes in the estimates see http://www.census.gov/population/www/socdemo/hispanic/reports.html. For more information on understanding race and Hispanic origin data, please see the Census 2010 Brief entitled, Overview of Race and Hispanic Origin: 2010, issued March 2011. (pdf format) 05000US06061 Generated 2018-07-18 00:17:26 +0000 AP.6: PUBLIC NOTICE – LAFCO STAFF WORKSHOP IN TRUCKEE, 2017 This Appendix presents the public notice from the 2017 LAFCO staff workshops held in Truckee. Please see the next page.