Demand up on the Summit

If it weren’t for an under-capacity sewer plant, hundreds of new homes would be going up on Donner Summit, and prices on vacant lots would be going up even higher.

Thomas Skjelstad, general manager of the Donner Summit Public Utility District, fields a half-dozen calls a week asking about a planned sewage plant expansion and sewer permits to start construction of new homes on the Summit.

“We get four to five calls per week on this.” Skjelstad said. “Normally these are calls from people who are looking at purchasing an unimproved lot or are Realtors representing a client.

“Once the plant is expanded those calls will stop,” he said.

And what has been essentially a building moratorium on Donner Summit will be lifted. But not before about $10 million is spent.

Even with the area’s long-running shortage of sewer capacity hamstringing new development, Donner Summit real estate prices are up more than 50 percent for homes and 60 percent for vacant lots over last year, according to recent real estate sales records. That makes expansion an eagerly awaited event.

“Lots being sold by longtime owners for $170,000 to $200,000 without permits would sell for $100,000 more with a sewer permit,” said Jackie Kirby, owner of Serene Lakes Realty. “Moratoriums have been on and off over the last six years. The lack of a sewer hookup for a vacant lot is often enough to discourage some buyers altogether.”

The current sewer capacity shortage, which dates back to 2002 for the district itself and to 2000 for the Serene Lakes and Ice Lakes subdivision, won’t likely disappear until 2010 or later. And it will come with a pricetag of about $3 million, not counting $7 million to meet increased state wastewater discharge requirements.

“Additional requests will be serviced once the plant is expanded after four to seven years,” Skjelstad said. “Preliminary estimates are that we need 300 more connections for Serene Lakes, and 500 for Donner Summit.”

Today the Summit has sewer capacity to support about 1,400 dwellings. That capacity is used by the area’s homes, ski resorts and other businesses. The district now has customers virtually lining up and requesting an additional 800 connections, according to Skjelstad.

And that’s who’s calling the district: property owners, potential lot buyers, Realtors, and contractors. They want to know when the district’s plant will be expanded.

“Hopefully the expansion will allow for more homes and cabins, and will help the revitalization of historic Soda Springs,” said Realtor Ken Stanley.

Envisioning expansion

Joining the district two and one half years ago, Skjelstad has worked with the district’s board to establish stability after a number of management changes. As well as the expansion, the district has to address a water quality improvement program needed to renew the plant’s state operating permit.

“California is putting stricter requirements on both ammonia and nitrates for the water we discharge into the South Yuba River, or use for irrigation on the Soda Springs ski hill during the summer months, when the Yuba flow rates are reduced,” Skjelstad said.

The improvements to meet the stricter water quality requirements will cost the district and its rate payers $7.25 million. Based on current projections, the expansion will cost an additional $2.8 million.

Skjelstad said he wants work to expand the current plant to start next year with the initiation of environmental reviews. He said he hopes the environmental reports can be approved for the project by the end of 2007, and in parallel, design and engineering also finished.

“The expansion then could break ground in 2008, and be online by 2010,” he said.

Serene Lakes: Now and in the future Since 1971, Sierra Lakes County Water District, which serves the Serene Lakes and Ice Lakes subdivision, has purchased its wastewater processing capacity from the Donner Summit PUD. In the Serene Lakes and Ice Lakes subdivision, the shortage in sewer hookups has been one of the major challenges for property owners and investors hoping to build homes and cabins on their vacant lots. Wade Freedle, president of the Sierra Lakes County Water District, said his organization would prefer to see a more accelerated expansion schedule, “but the sewer plant is totally owned and operated by the DSPUD. All plans are their exclusive prerogative.” Freedle said that “In hindsight” the wastewater expansion should have been on the drawing boards 10 years ago. Freedle said. While local Realtors note that in some cases property owners in the area have purchased buffer lots that may never require sewer services, a recent count showed the subdivision still had 371 vacant home sites out of 1,051 total parcels. “We are legally and morally obligated to provide services to all subdivided lots,” Freedle said. “Everyone has been paying a pro-rated share for construction of the original subdivision for sewer, water, and roads.” The most recent moratorium on new sewer connections started in May 2000, and ran through May 2003. When the moratorium was lifted, a yearly reservation program was created by the district allowing on average 20 new connections annually thru 2007. Property owners wishing to build on one of the area’s vacant parcels have had to vie for one of the scare reservations each year. “Between February and March this year, in a three- to four-week period, the last remaining reservations were gone.” said Freedle. With all reservations subscribed, except for the few lucky individuals holding a reservation, lot owners must wait for new capacity to come online in 2010.

Who pays?

“Only one thing is certain in this process, and that is current rate payers are not going to pay for [the expansion],” said Dale Verner, Donner Summit PUD board president. “The expansion can begin quickly once funds are produced.”

Beyond the anticipated capacity for 800 new connections, long term growth will place more capacity demands on the district. Verner said developers have approached the district about service to areas as far away as Cisco Grove.

“It is possible that two future wastewater collection and processing systems will be developed for the areas of Kingvale and Cisco Grove,” he said.

Verner noted that developers have discussed with the district the possibility of their providing land to support new outlying plants, but such facility would likely cost in the neighborhood of $14 million, he said.

Growing the Summit Supervisor Ted Owens, responsible for the Nevada County portion of the Donner Summit area, and Nevada County Sheriff Keith Royal, said they both believe the pending growth on the Summit creates opportunities for greater regional efforts, and collaboration with Placer County, and the state. “There will be the potential for the flood gates to open,” Owens said, referring to development that would follow increased capacity at the Donner Summit PUD wastewater treatment plant planned in five years. Ownes said the issue of the Summit’s economic viability needs to be revisited. He identified three constituencies in the area: “area residents, second home owners, and businesses.” “While at times their interests may clash all must be carefully considered and have a voice,” he said. “I want to listen to the concerns on how they envision their community.” Key to addressing issues on the Summit, and the eastern part of Nevada County, is working to develop a more regional approach, Owens said. He has spoken with his counterpart in Placer County, Supervisor Bruce Kranz, along these lines. For the Sheriff’s Department in Nevada County, the challenge with growth is having the additional staffing and facilities where needed, Royal said. Increased demand for services will provide an opportunity for regionalization that will allow improvements in quality of service, efficiency, and cost, he said. “We plan for the long term on facility needs.” Royal said. “Staff planning is more year to year, as needs change.” Royal said his department’s planning process includes working with the Board of Supervisors closely as population grows. “Vacation and seasonal activities outside of city areas will increase demands for services.” he said “In Nevada County, growth, it doesn’t matter where, is dependent on a limited tax base.”