Nevada Division of Environmental Protection - Office of Financial Assistance

Kingsbury General Improvement District Water System Improvement Project

BACKGROUND

Straddling the crest of the Sierra Nevada above magnificent Lake Tahoe, the service area of the Kingsbury General Improvement District (KGID) commands an eagle's eye view of both one of the world's largest and deepest alpine lakes - Lake Tahoe - and one of the country's largest ski resorts - Heavenly Valley. Only steps from the slopes or moments from the turquoise waters of Lake Tahoe, KGID is not only America's year round playground, it is an international haven for outdoor recreation. Just 200 miles east of San Francisco, at the crystal clear elevation of 6,200 feet, Lake Tahoe is famous for the scenery that for so many years provided the backdrop for television's legendary series - Bonanza.

The Lake's western alpine charm spans all four seasons and a myriad of lifestyles, as water sports turn to winter sports. Mountaintop condominiums, timeshares, and apartments as well as a major hotel and mobile home park, coupled with a small permanent population, make KGID the ideal choice for accommodating the liveliest - or most peaceful retreat.

The principal, yet limited, water source is the lake itself. In 1992 the annual water demand without snowmaking was at 69% of lake water rights. The lake intake is located approximately six hundred thirty-four feet from shore at a depth of approximately sixty feet. Water flows by gravity into a pumping station located on the lakeshore between Nevada Beach and the Edgewood Tahoe Golf Course. KGID uses Lake Tahoe as a surface water source under a waiver from filtration issued by the State of Nevada on December 11, 1991. Ozonation is the approved alternative treatment technique for KGID's lake water source. A small secondary source of KGID water is a well next to the District's Andria Drive water tank. The water is chlorinated before being pumped into the tank.

The planned capital improvements will replace leaking water lines that have reached their useful life, rehabilitate or replace water tanks with corroded interior coatings, and provide emergency power for water pumping. The projects will significantly reduce or eliminate existing threats to water quality and ensure a reliable supply of water. KGID is currently providing drinking water that meets all State and Federal standards.

Assembly Bill (AB) 237 enhanced the AB 198 program by adding water conservation projects to the list of projects that are eligible for grant assistance. One new provision is for the "measurement or metering of the use of water." Water meters are effective in both conserving water and managing the water utility. Residential connections in KGID are not metered nor are the significant number of residential units in the Lake Park Apartments and Tahoe Shores Mobile Home Park. All but one of the 104 commercial connections is metered. The Nevada Administrative Code 349.500 1.(h) requires that KGID include in their grant application an estimate of the capital costs required for the installation of water meters on all service connections to the community water system, including an analysis of the feasibility of installing the water meters.

A water conservation plan was approved by the Division of Water Planning on September 25, 1992. The water conservation plan of the Kingsbury General Improvement District included a goal for developing water rates that promote water conservation. In order to accomplish this goal, KGID was to establish a program to convert residential customers to water meters by December 31, 1993. At present, KGID has not attained this goal.

PROJECT DESCRIPTION

The Kingsbury General Improvement District applied for a grant under the AB 198 program for a water system improvement project. The grant was originally approved by the Board for Financing Water Projects (Board) on June 26, 2002, for $5,099,853.10 (61.9% of the total eligible project cost of $8,238,858). The scope of the project includes the installation of approximately 386 water meters, water lines and transmission mains, a water storage tank, and a pressure reduction valve station.

The KGID Phase 1 project was divide into the following elements:

2000-05 Waterlines in Pine Drive area
2000-06 Waterlines in Palisades Road area
2000-11 Construct storage tan T-10B
2000-12 Waterlines in Chimney Rock Road
2000-16 Waterlines in Foothills Estates area
2000-21 Waterlines in Bigler Court
2000-24 Waterlines in Palady-Perkins area
2000-28 Zone 2 transmission line-Kingsbury Grade
2000-31 Portion of transmission main-Zone 10
2002-38 Waterlines on Logging Road and Laurel Ln
2002-68 Cottonwood Drive inter-tie
2002-70 Replace PRV station on Highway 50

PROJECT STATUS

From 2003 to 2005, waterline replacement projects - Phase 1A, Phase 1B, and Phase 1C - were completed for a total of approximately $4,828,485 ($2,988,832 in grant funds). Phases 1A-C included project elements: 2000-05, 2000-06, 2000-12, 2000-16, 2002-68, and 2002-70. Due to rising costs, a scaled-back waterline replacement project - Phase 1D - was completed in the fall of 2006. This Phase of the project focused on project element 2000-28.

The line replacements completed to-date resulted in significant reductions in leaks as demonstrated by the reduction in overall demand. KGID's annual water leaks have been reduced from an average of 46 per year between 1997 and 2000 to 12 leaks in 2005.

The water tank bid was not awarded due to the lowest bid being more than double the engineering estimate. In addition, problems with securing right-of-way to run a new transmission main in a major roadway from the Nevada Department of Transportation are forcing the KID to re-route the replacement main, extending the length significantly and increasing material and construction costs.

The Phase 1 project was originally scheduled for design and construction over 3 years but is now scheduled as 5 separate construction projects over 5 years, 2003 through 2007. Each project has its own permitting, bidding, inspection and construction management. This has increased both engineering and construction costs, but became necessary for the following reasons: 1) Design has been complicated by the District's many pressure zones and often confusing existing piping; 2) The permitting restrictions of both the Tahoe Regional Planning Agency (TRPA) and the Nevada Department of Transportation (NDOT) have limited alignment options and caused delays while new options are explored; 3) KGID does not have complete maps of its water system and the District's small staff has been capable of providing design and construction support for only moderate size annual projects in addition to carrying out its regular day-to-day responsibilities; 4) Phase 1 has required unexpected easements and utility agreements before permitting and construction can proceed; 5) Cost of waterline construction in 2005 was 40% higher than in 2004 and the cost of construction in 2006 is on average 30% higher than 2005; 6) Unrealistic Preliminary Engineering Report Cost Estimates for the Zone 2 Transmission main and Tank 10B.

The following Phase I projects identified in the preliminary engineering report remain to be completed:

Project 2000-11- Storage Tank 10B Tank 10A was purchased in 1972 as a used tank and was reconstructed on the site. It was identified in the PER as a high priority item for replacement. In 2005, KGID obtained sealed bids to construct storage tank 10B on an easement acquired from Heavenly Ski Resort. The required tank elevation presented few site options, and the easement's steep site required much more extensive engineering than anticipated, including the design of a major soil nailed retaining wall to stabilize the slope and protect the tank. The project additionally required significant tank pad preparation, drainage and screening, and the replacement of the 200-foot water transmission main running up a steep hillside to the tank. District received bids of $2,611,675 and $2,717,166 for the work. The construction estimate in the PER was $1,000,000, and KGID did not award a construction contract for a tank on this site.

KGID continues to seek an alternate site, but a viable site has not been obtained at this time. KGID is, therefore, focusing its efforts on a replacement of the existing Tank 10A. By replacing Tank 10A instead of constructing a new Tank 10B, the costs of site work will be reduced but costs will be significantly increased for providing water to this high-demand zone while the tank is off-line.

The water tank in Zone 10 (Tank 10A) does not have supplemental storage available from other water storage tanks in the system. The zone has high fire flow duration requirements and high water demand requirements. Tank 10A currently provides the only water storage for this zone, serving over 1,000 residential units. According to an engineering analysis and tank examination by Resource Development, the tank has "significant structural deficiencies and it does not appear feasible to repair and rehabilitate the tank." The engineering analysis correlated with the September 6, 2001, sanitary survey noting that the "tank at station 10 has gaps in the roof seams and is buckling." In addition, staff observed the boulders above the tank area that may fall and damage the tank (see photos below). Those appearing to be an imminent danger to the tank are pulled off the hillside in a controlled manner.

KGID and its engineers propose using a small temporary tank and making improvements to pumping stations supplying Zone 10 to keep the zone in water during tank replacement. These pump station improvements would become a permanent upgrade to pumping capability and are felt to be a better expenditure of dollars than the construction and subsequent demolition of a very large temporary storage tank that would otherwise be necessary for this high demand zone. The pump station improvements have not yet been designed but are estimated to cost up to $505,000.

KGID proposes to increase the capacity of Tank 10A from 1.2 million gallons to 1.7 million gallons at an estimated additional cost of $375,000 (500,000 gallons at $0.75 per gallon) to provide additional storage for fire protection and domestic use. The cost of the additional storage was included in the additional grant request. According to the PER, a 1.4 million gallon tank is necessary to meet the existing (2002) storage need. The planned tank size represents a 300,000 gallon increase in capacity for build-out conditions according to the PER and would not be grant eligible.

Engineering fees incurred for design, survey/geotechnical, permitting and bidding for Tank 10B, which was not constructed, total $101,611 and are included in costs to date. This work enabled the District and its engineers to identify and preliminarily address many of the challenges associated with installing a tank in this area, including required easements, scenic issues, drainage, slope stabilization issues and utility conflicts for connecting piping.

The replacement of Tank 10A will not eliminate the need for storage redundancy at this uppermost zone in the water system. This redundancy is necessary in the event that something happens to Tank 10A or if it must be taken off-line for maintenance or repair.

Project 2000-21 - Replacement of water lines on Bigler Court This project will replace an old 4-inch pipe that has a history of leaks and which has reached the end of its useful life. The project involves the installation of approximately 1,140LF of 8-inch PVC pipe on a section of Bonnie Drive and on Bigler Court and the replacement of a pressure-reducing station. The original construction cost estimate for this project was $304,210; the current cost estimate is $520,000.

Project 2000-24 - Installation of water lines in the Palady-Perkins and Granite Springs areas The project originally anticipated the installation of approximately 3,120 LF of 8-inch waterline along "backbone" sections of the Palady-Perkins Tract and a section of Granite Springs. KGID's engineer determined, through water modeling and further evaluation of this project, that Palady-Perkins Tract water lines originally proposed to be upgraded in size do not need upgrade to support recommended fire flow to other sections of the tract. The "backbone" lines are generally less than 25 years old and are not leaking. The AB 198 Administrator approved a change of scope that will replace different waterlines in the same neighborhood instead to accomplish a more complete upgrade of fire flow capabilities in the area. The project will replace 2-inch, 4-inch, and 6-inch pipe that have a history of leaks by constructing approximately 2,350 LF of 8-inch pipe. The original construction cost estimate for this project was $574,126; the current cost estimate is $980,000.

Project 2000-28 - Zone 2 transmission main replacement: This project replaces old 12-inch pipe that has a history of leaks and has reached its useful life. The repair of pipe along Kingsbury Grade (State Route 207) is particularly hazardous due to the volume of traffic and poor sight distance conditions. The original project called for an alignment along 4-H Camp Road and State Route 207 that required 8,196 LF of 16-inch ductile iron pipe at $125/LF for a construction cost of $1,024.500. Valves, hydrants and service connections plus contingency brought the total construction cost to $1,373,100. The PER did not sufficiently take into account the additional design and construction requirements of replacing the existing Zone 2 transmission main which currently runs up State Highway 207. These requirements include moving the alignment out of the highway whenever possible; connecting customers on both sides to the new main through pressure reducing stations and multiple highway crossings; the requirement to construct at night when work is in traveled lanes; and the extraordinary paving requirements of highway work that require hot-mix paving by the end of each work day and the grinding and paving of a full lane width, with top level open grade, if work occurs in a traveled lane. Due to NDOT's prohibition of longitudinal utilities in highways (unless there is no option), the transmission main alignment was moved out of Highway 50 and State Route 207 wherever possible, adding length and additional permitting requirements. The AB 198 Administrator approved the required alignment changes to the project.

The projected construction cost of the Zone 2 transmission main has increased from $1,373,100 to $5,125,468, including contingency, an increase of $3,632,368 (273%). The new alignment requires an estimated 10,163 LF of 16-inch pipe and appurtenances including valves, hydrants, air release valves, erosion control, traffic control and other necessary costs. A portion of this project (Phase 1D) is currently in progress.

Project 2000-38 - Replacement of water lines on Logging Road and Laurel Lane This project replaces 6-inch pipe that serves a dead-end pipe on the east end of Laurel Lane. The project involves the installation of approximately 1,610 LF of 8-inch PVC pipe on Logging Road and Laurel Lane. The original construction cost of this project was $239,373; the current construction cost estimate is $541,148.

Project 2000-31 - Zone 10 transmission main replacement This project originally called for the replacement of old 10-inch transite pipe that has a history of leaks in certain areas and has reached the end of its useful life. The project originally involved the installation of 4,520 LF of 16-inch ductile iron pipe on Tramway Drive. To date, the District has replaced approximately 500 feet of leaking steel Zone 10 waterline within State Route 207 roadway as part of this project. The remaining sections of water line within Project 2000-31 are transite and have never leaked. Water modeling by the design engineers indicates the transite line has remaining unused capacity.

The AB 198 Administrator approved a change in scope so that only the portion of Zone 10 pipe that was leaking and in the highway was replaced. Approximately 4,000 linear feet of 10-inch water line that has not leaked was not replaced. The District substituted replacement of 2,020 linear feet of leaking 8-inch water line on North Benjamin Drive (completed in 2005) and approximately 1,480 linear feet of leaking 8-inch water line on Andria Drive (to be completed in 2006). KGID will not upgrade the transite water lines designated in Project 2000-31.

The original construction cost estimate was $880,900. Approximately $144,000 was expended to replace the Zone 10 leaking steel line in 2005. The North Benjamin Drive waterline replacement cost was approximately $430,697 and the Andria Drive water line replacement bid for construction in 2006 is $274,355 for an estimated total of $849,052, a small savings of $31,848.

In August 2006, KGID requested an increase in grant amount based on escalating costs in materials and construction and additional engineering necessary for changes to the original design. The overall scope of the project remained the same. The Board approved an increase in the original grant amount of $4,405,458.28. The total grant amount should not exceed $9,505,311.39, or 61.9% of eligible project costs estimated to be $15,355,915.00.

Phase 1E was completed this summer (2007) and included project elements: 2000-21, 2000-24, 2000-31, and 2002-38. The replacement of the storage tank (project element 2000-11) is the last remaining task in Phase 1 of the Kingsbury project and is scheduled for completion in 2008.