Feb. 16, 2010 - While Nevada Irrigation District remains locked in negotiations over a lawsuit alleging CEQA violations, on Feb. 10 its board of directors awarded the contract on the contentious DS Flume Replacement Project to T&S Construction Co., of Sacramento. According to Associate Engineer Tonia Tabucchi Herrera, the bid by T&S Construction was the only quote considered for this project.
Herrera informed board members that T&S Construction, as a specialty contractor, performed work on DS Canal flume #12. "They have developed special tools for this kind of project," she added.
NID staff documents indicate that a "reasonable price" was submitted for the project. The construction contract was approved at just under $5 million. This figure includes an addition to the project -- replacement of the Gracie Road Culvert -- a modification that has occurred since certification of the EIR.
According to district legal counsel Jeff Meith, NID is still involved in legal negotiations with Trevor and Sue Robbins, plaintiffs in the lawsuit challenging board approval of the project and certification of the environmental impact report (EIR). A formal court date has been set for this summer.
Documents filed allege that the EIR ignores or understates the impacts of dewatering to downslope riparian vegetation, wildlife habitat, streams, and groundwater -- and fails to mitigate these impacts. The lawsuit also alleges that NID's approval of the project violates CEQA by failing to address growth-inducing impacts of increasing the DS capacity. Filed documents also state that "NID has failed to secure appropriative water rights sufficient to provide the additional water that the Project will withdraw from the Deer Creek and Yuba watersheds and deliver to urban and other uses throughout NID's service area."
NID's DS Canal Flume Replacement Project consists of replacing eight open flumes with enclosed steel pipe. The existing wooden structures would be replaced with steel supports. Portions of the canal would be relocated and short stretches lined. The project would also increase the capacity of the flumes from 72 cubic feet per second to 105 cubic feet per second. According to NID, this would allow the district to lift a temporary service freeze currently in place. The EIR states it has approximately 250 customers interested in receiving raw water from the DS Canal.
Local Company Lands Contract on South County Pipeline Project
Submitting the lowest quote among four other bidders, Grass Valley-based Hansen Brothers Enterprises was awarded the construction contract on NID's Rodeo Flat Pipeline and Pump Station Project. In response to property owner requests and as part of the district's Community Investment Program, the project will provide water service to 36 landowners within the Rodeo Flat Assessment District. In addition, construction of a pump station within the NID Lake of the Pines community service area will provide regional water service benefits.
Chief Engineer Gary King responded to Board President Scott Miller's inquiry about who would be picking up the tab on the project. "There are two major components here," King advised. "The pipeline will be paid by the homeowners' association while the second phase -- the pump station -- is of regional benefit. As a regional benefit facility, it thus falls under capacity fee reimbursement," King said, adding that every time the district receives capacity fees in the future from a developer, a portion will go to the pump station.
Construction of the entire project will cost $1.35 million, with approximately $800,000 paid by the Rodeo Flat Assessment District. NID will fund the remaining $500K.
Eminent Domain Issues Continue to Dominate Board Calendar
With formal litigation resolved two years ago, NID continues to face legal hurdles with its Banner Cascade Pipeline Project. At the district's recent board meeting, directors voted to add five additional parcel numbers to the growing list of properties scheduled to receive Notices of Intent (NOI) alerting property owners to potential commencement of eminent domain proceedings.
NID must acquire at least 60 permanent and 50 temporary easements to complete the project. So far, most of these have been secured. However, in the case of those parcels under consideration for eminent domain, issues like re-landscaping, compensation, and general easement description remain serious concerns for some property owners.
At the same board meeting, directors also decided to postpone authorizing eminent domain proceedings on a parcel located within the district's Cement Hill Water Supply Project. In response to correspondence from a concerned property owner, Senior Right of Way Agent Matthew Crowe asked for a continuation of discussion on the pending resolution. The public hearing is rescheduled for Feb. 24 during NID's regularly scheduled board meeting.
The property in question is owned by Nevada City Sugarloaf Properties, LLC and the Estate of Archibald M. Mull, Jr. NID's design team for this project identified the need for a tank site and three easements affecting this parcel. According to an NID staff report, the district has made attempts to address property owner concerns regarding project details, including access and tank site footprint. In addition, NID has been asked to reconsider its offer of compensation for the tank site and the three easements.
NID Eyes Potential Dollars for Improving Irrigation Water Use Efficiency
For local farmers and ranchers who want to reduce their water consumption and irrigate more efficiently -- thereby cutting water costs at the same time -- there are federal programs designed to help these users. NID directors heard this from Lesa Osterholm, district manager of the Nevada County Resource Conservation District (RCD).
During a recent presentation before the NID board, Osterholm described programs through RCD and the Natural Resources Conservation Service (NRCS) which reimburse existing irrigators who choose to convert to more efficient water-use practices. At the same time, some funding opportunities call for cost-sharing by farmers and ranchers, which Osterholm admitted limits the number of participants.
Citing a newer federal program -- the Agricultural Water Enhancement Program (AWEP) -- Osterholm suggested that NID and her district might work together to secure financial assistance for local irrigators on water efficiency improvements. "You should identify the need, why so many local landowners need assistance with water efficiency and what the cost sharing would be," Osterholm advised the board. Director Scott Miller agreed to take the subject to NID's Water and Hydroelectric Operations Committee for discussion.
NID Board Mulls Proposed State Water Bond
What began as a brief report by Director Nancy Weber on the Planning and Conservation League's (PCL) annual symposium (Jan. 30) eventually evolved into a serious discussion surrounding the $11 billion proposed state water bond.
"According to State Senator Lois Wolk, in the legislature's haste to get the water legislation and bond package passed, five Delta counties were excluded from the process," Weber told NID's board. "Wolk told us that a GO (General Obligation) bond is not the way to go, that it should be ‘those who benefit should pay,'" Weber added, referring to area of origin concerns from northern California taxpayers and water purveyors like NID.
Weber also pointed to other issues discussed at the conference -- hot topics like the need for enforceable in-stream flow standards, universal health requirements for recycled and surface water, and local representation in decision-making. In particular, according to Weber, Charlotte Hodde of the PCL called for more volumetric pricing of agricultural water based on use.
During a session focused on the state's Sacramento-San Joaquin Delta, concerns were raised that corporate farmers in central California might eventually be able to upgrade their junior water rights to senior water rights under current water legislation. "The idea that we in the north need area of origin protections, that we need a reaffirmation of existing basic water rights, was emphasized," Weber noted.
While Tim Brick, director with the Metropolitan Water District in southern California, felt the water legislation passed in November 2009 has more governance for conservation, Weber noted he also called for more than a spotlight on the issue of plummeting Delta smelt populations. "He said there needs to be a broader scope than just focusing on the effects of the pumps on Delta smelt," Weber added.
NID Director Nick Wilcox questioned whether the local public would be looking to the district for information on the bond issue, or possibly even a general statement. Advising that NID may provide leadership during a public forum on the subject, General Manager Ron Nelson nevertheless warned that the district cannot be "overtly opinionated" on the issue.
Questioning the appropriateness of a general obligation versus a revenue bond, Wilcox continued to press for a commitment from NID. "It seems we should be able to say something about this," he stated. "$600 million dollars interest out of the general fund must be paid yearly to support this bond. We have done this before, we've thrown hundreds of millions of dollars at this problem before and really don't have anything to show for it. So at this point, is it morally right to throw more money at it, and still have nothing to show for it?" Wilcox questioned.
Reminding the board that the bond measure does not include funding for conveying water around the Delta, Nelson also noted it doesn't cover the cost of new storage projects.
Suggesting the next step should include inviting Tim Quinn, former executive director of the Association of California Water Agencies (ACWA), to speak on the subject, Nelson met with an immediate response from Director Weber.
"I want to see all sides of this issue," Weber responded. "Tim Quinn has a one-sided view on this," Weber added, referring to Quinn's ties to southern California water interests as former deputy general manager of the Metropolitan Water District of Southern California.
The next regular NID board meeting will be held at 9 a.m. on February 24 at the NID Business Center in Grass Valley. NID board meetings are open to the public.
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