FACTS ABOUT STAGECOACH GENERAL IMPROVEMENT DISTRICT

An ordinance passed May 10, 1984 by the Lyon County commissioners creating the General Improvement District to provide water service to the customers of bankrupt Stagecoach Utilities.

The Improvement District took over operation of the water system February 7, 1985 with the first order of business billing the customers for January 1985’s water use, the meters having been read by the Public Service Commission which was in charge of the utility in the interim.

The General Improvement District was given a total of $280,000.00 in grant money to upgrade the system. With that money, four wells were upgraded, two storage tanks were built, some old lines were replaced, two booster pumps were installed, and a telemetry system was installed.

At the time the General Improvement District began operation, there were 198 customers and there was a building moratorium due to the lack of storage and the inability of the system to pump water to people living at the higher elevations in Unit III.

After the initial improvements were completed, the moratorium was lifted at 12:01 A.M. on January 10, 1986.

In 1986 the District received $32,500.00 in community Development Block Grant money and matched with $15,000.00 of its own to install the minimum necessary fire hydrants. With the installation of the fire hydrants, the fire zone changed for the area thus reducing the insurance premiums for residents.

In September of 1987 the District had to pay the Bankruptcy Court $74,808.00. This was for the judgment handed down by District Court for $51,000.00 that they felt Stagecoach Utilities was worth when condemned plus interest at 12% per year. In connection with this judgment, the District had to pay $2,580.50 for Stagecoach Utilities’ attorney’s fees and $5,000.00 to hire an appraiser to go to court for the District. The District had to borrow $35,000.00 to be able to pay the Bankruptcy Court and did so from the Interim Finance Committee of the State of Nevada. This loan was for a three-year period and was interest free.

In January 1991 the negotiations began to drill a new central well to provide more water to the rapidly growing community. The cost of this well was $130,429.00 plus $6,400.00 in engineering fees. The District had $80,000.00 to spend on the well so it borrowed an additional $50,000.00. That loan was paid in full in June of 1996.

In July of 1991, the District received permission from Water Resources to expand the service area to provide water to people living outside the original district boundaries. One of the reasons for doing this was to cut down on the number of private wells being drilled thereby lessening the chance for contamination to the ground water.

Beginning in January 1993, the District started an application to the Division of Water Planning for a grant in the amount of $660,000.00 to upgrade the system to meet SDWA standards. This upgrade included looping all dead-end lines in the system and replacing old lines.

At the same time, it started negotiations with FmHa for a combination grant/loan not to exceed $893,900.00 to build another storage tank, run a separate transmission line from the Central Well to the storage tank and install the balance of the necessary fire hydrants within the district.

In order to get the money from the Division of Water Planning and FmHa, it was necessary for the District to increase the water rates from $25.00 for 25,000 gallons to $32.50 for 22,000.

All of the requested funds were approved.

Phase I of the system upgrade was completed in April 1995, which consisted of looping dead-end lines and installing some fire hydrants. The construction cost of Phase I was $233,940.00.

Phase II, which consisted of installation of the main transmission line, building a 290,000 gallon storage tank and installing the balance of the hydrants was completed in October 1995 at a cost of $436,725.00.

Engineering fees for the two phases and work on additional construction totaled $219,358.08 as of June 30, 1996.

Since $649,277.00 was left of the grant and loan money the SGID decided to acquire another large production well and upgrade the booster pumps thus creating Phase III.

In February 1996 the upgrade to the booster pumps was completed at a cost of $59,439.00.

After lengthy planning and negotiations a new well was acquired on Boyer Lane, plans drawn for the transmission line from that well and construction began in April of 1997.

With the acquisition of the new well the District added a new 50 lot subdivision to its service area and with the installation of the transmission line from Boyer Lane north to Iroquois Trail and then east to Raindance added one other four lot subdivision besides opening up the potential for all of the growth along Iroquois Trail.

Once Phase III was completed there was money left in the USDA (formerly FmHa) grant to build our own office.

From the time that Water Resources gave permission for the District to expand its service area without additional water rights 13 lots have been included in the boundaries without water rights and an additional 28 have been developed after dedicating water rights to the District. There have also been water rights dedicated to the District for an additional 200 lots, but no development has been done on them. These lots do not include any of the new ones that will be added after the well and transmission line are complete.

In 1996 the District had 360 customers, which is a growth rate of 45% since 1985.

Over the past eleven years 22 people have served on the Board as VOLUNTEERS. These 22 people have contributed 1500 hours of their time to the District. However, beginning in September 1996 the Board started getting compensation of $50.00 per meeting.

The County Commissioners passed a resolution in February 1997 to allow the Improvement District to broaden its scope to include wastewater.

Phase III was completed in October 1997 for a total cost of $402,618.28. With $121,992.45 left from the grant funds plans were started for a new office building.

In May of 1998 the District again expanded its service area to include all of Stagecoach basin from 10-mile hill on the west to Stagecoach Hill on the east, and from the Storey County line on the north to the Carson River south. This was done to preclude any other water utilities from coming into the area and also to gain some control of the type of developments allowed in the area.

The office building was completed in November of 1998 for a total cost of $150,639.66. The District had to use $28,647.21 from the sinking fund to complete the office project, and no shop was built due to lack of funds.

After two years of lengthy discussions and meetings with the County Commissioners the SGID acquired the Churchill Ranchos Water Company from John DeCarlo. Mr. DeCarlo did not want to run a water system and it was necessary for the Commissioners to pass an ordinance including the Churchill Ranchos in the boundaries of the Stagecoach General Improvement District. This ordinance was passed October 14, 1998. And the SGID took over the system in November. Rates were set for the Ranchos’ customers at $45.00 for 35,000 gallons and $1.50 per thousand over the base. This rate was determined so that the SGID could pay for the three quarters of samples that will be required after Mary Cioffi of the Churchill Ranchos Water Company tests for the 1^st quarter round.

It is anticipated that after June of 2000, the rates will be the same as set for the original SGID customers.

With the acquisition of the Churchill Ranchos the total number of customers rose to 405 for December 1999.

The rates were raised to $35.00 for 25,000 gallons and $1.50 per thousand over the base for the customers of Routes 1-5 effective with the water bills for January 2000’s usage and the advalorem tax was eliminated beginning in July 2000. To replace the tax a Service Availability Fee (SAF) of $8.50 a month was established. This SAF will be billed by the Treasurer’s office on every property owner’s tax bill beginning in July 2000. It was felt that the SAF was more equitable than a tax based on assessed value.

The SGID purchased a back-hoe in December 1999 which will reduce expenses related to new installations and repairs to the system and will make it possible for the District to possibly extend some water lines thereby reducing the costs to potential new customers.

In February 2000 a commercial meter was installed to serve 5 homes on a 6-acre parcel on Sioux Lane.

As of March 2000, 19 lots have been included in the boundaries without water rights and an additional 38 have been developed after dedicating water rights to the District.

In December 2000 a developer extended the water line from the corner of Cimarron and Sioux down to and part way down Cochise Trail. The SGID hired a contractor to run the line from that point to a point on Cheyenne Trail thus looping the lines.

Plans were also under way to build a shop after acquiring a short-term loan.

The first six months of 2001 brought numerous changes to the District. A new service vehicle was purchased to replace the old #89 which finally quit running.

Three of the District’s smaller wells and one private well that was given to the District in lieu of a hook-up fee were abandoned with grant money from NDEP. Wells 2, 3, and 4 had high nitrate levels and it was determined that the sampling costs and electrical costs were too high for the small volumes of water the wells produced.

The shop was built with “Storage Fund” money since getting a loan required too much red tape with the Department of Taxation. The shop was completed in June.

The pump, motor and starter quit working in the Central Well so all of those parts were replaced.

In June of 2001 the number of customers in the District was 436. The Churchill Ranchos grew the most with an increase of 8 from the same time the previous year.

June of 2002 found the District with 455 customers with a total of 62 in the Churchill Ranchos.

We finally looped our lines at Cheyenne, Cochise and Sioux to install a pressure- reducing valve, which made service available to 14 more potential customers. We also installed electrical equipment necessary for generator compatibility at all of our well sites and booster station. The cost of these projects was approximately $100,000.00. We were able to do all these projects without raising rates. Thanks to a grant from NDEP Wellhead Protection, we will soon have larger signs at both ends of the valley reminding people of our Program.

Also with grant money from NDEP, we purchased antenna balls, magnets and coolies to remind people of the Wellhead Protection Plan.

2002 will be an interesting election year with 3 positions on the Board up for election and 4 people having filed to run.

The election was interesting, as predicted. People not living within the District boundaries were allowed to vote for the District Board members. The SGID complained to the Clerk/Treasurer, but nothing came of it. Lori Cline, Mel Earls and Patrick McIntyre were elected. Donald Schalla was unable to retain his seat on the Board.

Lori and Patrick won the four-year terms.

With grant money from NDEP we placed large signs at both ends of the valley for our Wellhead Protection area and also constructed buildings over the well sites in the Churchill Ranchos.

We received a grant from AB198 in the amount of $43,123.60 for the wiring of the Central Well to run a generator and for a generator. The generator was purchased for a cost of $61,844.00. Our Well #4 site was sold and that money was used for the difference.

For the past two years the GID has been involved in a pilot test with Narasimhan Consulting Services (NCS) to determine the effectiveness of POE and POU arsenic removal units. To this date testing is on going. Results so far show that the POU under the sink units are removing all of the arsenic. These units would have to be approved by the Nevada State Health Department before they could be used on a permanent basis.

Another grant from NDEP was applied for in the amount of $22,368.00. That grant will be used for Minerals Exploration & Environmental Geochemistry (MEG) to conduct a study of arsenic in sagebrush for possible new well sitings in the area around the Churchill Ranchos. The cost of that study is $19,988.00. The balance of the grant will be used to purchase and mail educational materials to customers and residents of the valley.

Curiosity over arsenic and nitrate levels throughout the entire valley prompted us to offer private well owners a chance to have their wells tested for those two items with the GID splitting the cost for the samples. Twenty-seven wells were tested. The results were disappointing as no pattern was determined for higher or lower levels of those components.

Six touch-read meters are being purchased each month to replace the old manual-read meters in the system. New chlorinators were purchased and a building was built over the chlorinator at the Churchill Downs well and a second isolation valve was installed at the intersection of Sioux and Cimarron.

The Board and members of the community worked long and hard drafting a Wellhead Protection Ordinance to require developers/owner-builders to install denitrification septic systems on newly constructed properties. This Ordinance would also apply to existing systems that fail. As of June 2003 the Ordinance had not been finalized, but should be adopted sometime after the beginning of the new fiscal year.

Working with Marci Cary of Sierra GIS & Cartography through Nevada Rural Water, the GID now has all of the distribution information on ArcView GIS.

As of June 2003, the District had 479 customers up from 455 the year before. Churchill Ranchos gained three customers and the Churchill Downs (which is finally starting to grow) now has 13 customers up 8 from the previous period.

From June of 2003 to June 30, 2004 the District had 504 total customers. Churchill Ranchos grew from 63 to 65 and the Churchill Downs from 16 to 20.

The Attorney General’s Office issued an opinion that the Wellhead Protection Ordinance could not be written, so the District requested the County Commissioners to allow the expansion of duties of the District to include wastewater which could include the requirement of denitrification septic systems. As of June 30, that is still a work in progress.

A 163-lot subdivision (High Plains Estates) is being built off of Boyer Lane across from the Churchill Downs. The first phase consisting of 40 homes is already sold and the water lines installed as of July 2004.

With bad luck in hiring and keeping utility workers this past spring and finally having two people interested in a career with the District, the Board voted at the July meeting to hire an additional utility worker.

The arsenic study with NCS was completed and shows that POUs do, indeed, remove the arsenic from drinking water. Now we have to see if the State of Nevada Bureau of Health Protection Services will approve them as alternatives to building arsenic removal plants.

The final report from MEG has not been received, but initial reports indicate that there is indeed a correlation between arsenic in sagebrush and arsenic in the water. We did not receive a grant from NDEP for this fiscal year, so no work will be done to further the study at this time.

Being informed that arsenic levels are lower the deeper the well, the Board voted to have the pump in the Central Well lowered from 315 feet to 483 feet at a cost of $9,992.00. Arsenic samples are being taken on a continuing basis to see if the levels remain low.

Receptacles to wire the generator into all the well sites and the booster station were purchased and installed at a cost of $5,975.00.

The District asked for CDBG funding in the amount of$88,000 to do a preliminary wastewater feasibility study and was awarded CDBG funding in the amount of $48,000.00. Our engineering firm, MACTEC, was contracted to do the study. The initial study shows that the first phase of the wastewater treatment facility will cost $24,257,615.00. The District did not qualify for more CDBG funding, so no further work will be done on the feasibility study for now.

Jack Norberg left MACTEC to work for Nichols’ Consulting, and the Board voted to follow Jack.

Lori Cline passed away so Judith Dillon was appointed to finish her term. Charles and Mel filed for re-election to their positions. Ray chose not to run again. Donald Schalla also filed. With the death of Lori, four positions were open and since only three filed, there will be no election. They are automatically elected. Charles and Donald will have four-year terms and Mel a two-year term. Lori’s position will have to be re-appointed in January.

June of 2005 found the District with 544 customers, 68 of which reside in the Churchill Ranchos. Unfortunately, High Plains Estates is still sitting vacant. Apparently Lyon County threw a few monkey wrenches in the works. Hopefully this summer and fall will find construction under way on Phase I.

Many things happened in the previous year including selling the worn-out backhoe and installing air conditioning. We have been trying to work with Lyon County to have donated or purchase at reduced cost one of their surplus backhoes. We are using it at the present time, but have not heard from them on whether we can have it permanently or not.

Deepening the Central Well did not lower the Arsenic levels as much as the Board hoped, but they voted to leave the pump at the lower level. In August of 2004, we had to replace the motor in that well. It is believed that the sand being drawn from the lower level wore the motor out. The cost of that replacement was $12,324.00, but after reimbursement from the insurance it only cost the District $500.00. Sand continued to be a problem at that well until late spring of 2005.

We also had to replace the pump and motor in the south well at the Churchill Ranchos. That cost the District $5,779.00. We did not turn that repair into the insurance company since we had just switched to the State Insurance Pool which saved the District over $6,000.00 per year.

The results of the MEG report showed an area in Iron Mountain that might be considerably lower in Arsenic. We applied to NDEP for a grant to test the theory, but they do not fund for well drilling. Therefore, we have not been able to prove that theory at the present time.

In January of 2005 the water rates were raised to $40.00 for 0 to 25,000 gallons and $2.00 per thousand over that. They will increase again in January 2006 to $45.00 for the same amounts. In future years (if necessary) the rates will increase based on the cost of living increases to Social Security benefits.

Due to the fact that the wheels of politics turn extremely slow, the Board passed a Denitrification Resolution in January 2005 that requires new construction within the District boundaries to install Denitrification septic systems. Any existing dwellings whose old systems fail will also be required to install the new type. Policies and procedures are still being worked on at the present time.

Deciding it was time to start upgrading parts of the District. We bought a generator to run the office in case of emergency and had to have the plugs for that installed. After many of our customers got stuck in the parking lot due to flooding and an extremely wet winter, we paved the parking lot. New, much needed, tools were bought for the maintenance personnel, and 6 isolation valves were bought.

We requested a change in status on the State Revolving Fund list and wrote a Letter of Intent to apply for a grant to the Board for Financing Water Projects. The grant request consists of $1,198,614.00 to consolidate the Churchill Ranchos with the rest of the District; $1,761,354.00 to build a new 1,000,000 gallon storage tank and $681,915.00 to drill a new well (testing for that new well would be in the area designated by the MEG report). This work would be done in Phases as listed above, though the order could conceivably change; however the consolidation would most likely still be the first Phase.

Several new projects are planned for FY 2005/2006 including replacing the telemetry in the Churchill Ranchos (necessary, even though we hope to consolidate), up grading the billing system and computers in the office and installing the valves bought in the previous fiscal year. We will continue to buy touch-read meters to replace old meters in the system and will buy more tools to make the Utility Workers' jobs easier

In FY 05/06, February, the GID sold 340 “Privilege to Connect” permits for a total of $4,328,200.00. We reserved $2,000,000.00 in a Long-term CD for depreciation and put $1,300,000.00 in a Short-term CD for our AB198 match money. The balance was put in restricted funds, which will be used for future capital improvements and the purchase of capital assets.

Rates increased $5.00 in February of 2006 raising the base rate of the water bill to $45.00.

The GID is currently out of EPA compliance in the Churchill Ranchos subdivision. The Ranchos has Arsenic levels of 22 – 28 ppm and the EPA standard is 10ppm. In answer to this Arsenic problem, the GID applied for an AB198 Grant, this would cover an intertie project, which would consolidate the Ranchos with the original Stagecoach service area, whose wells only have Arsenic levels of 6-7ppm, a new Storage Tank and drilling and equipping a new well in an area believed to have water with lower Arsenic content. We will know if we get the grant in August 2006.

Funds were used in 05/06 to purchase a Backhoe, a new computer for the Office and a Security system for the Office and Shop. The Parking lot at the office was paved and work continued on the telemetry. New billing software (Mosaics) was purchased and has shown to be extremely efficient. $4,800.00 was spent on repairs at the Churchill Downs Well.

In February 2007 base rates were increased by $1.50. Making the new base rate for residential service $46.50.

In FY 06/07, August, the GID’s request for an AB198 grant was approved, without the drilling and equipping of the well, which the Board for Financing water projects did not feel was necessary at this time. The project will begin in June of 2007 with projected completion by Thanksgiving. A & K Earthmovers won the bid for the job.

Funds are still restricted for depreciation and AB198 match money in long-term and short-term CD’s.

For the first time in GID history, 2 “brand new” trucks were purchased. Security fencing was put up at the Office/Shop and the Churchill Ranchos tank site. New fire-hydrant meters were purchased along with new Chlorinator pumps. A backhoe cab enclosure was bought and, at long last, the telemetry installation was completed.

Once again, beginning in January of 2008 the rates increased, this time by $1.00 to $47.50. The number of customers of the District has remained steady. Unfortunately no new customers have been added to the base due to the housing market and the rise in fuel costs.

Our 500,000-gallon tank and inter-tie project was completed and the Churchill Ranchos is now receiving water from the District wells on the north side of highway 50. The cost of that project was $2,408,185.33 with $1,644,796.29 being paid by the AB198 Grant.

New telemetry was installed at the new booster pump stations and the new tank along with upgrades to the existing telemetry system so that most all of the operations can be done by computer along with monitoring for well depths, pumping and power monitoring.

The road to the Churchill Ranchos tank was graded and based making access to the tank much easier than before. Gates were installed at the base of that road and also part way up the 500,000-gallon tank road for security measures.

A records retention building was constructed to house all the files that the District must keep in climate controlled fire safe conditions. The cost of that building was $66,826.00 including the fire suppression equipment and alarm.

The District did not drill a pilot well this fiscal year to find a water source with less Arsenic. That project is budgeted for fiscal year 2008/2009, as is installation of radio-read meters with the initial equipment being donated by Western Nevada Supply. Also in the budget for FY 08/09 is a golf cart for meter reading to cut down on fuel costs along with cleaning of the inside of the Churchill Ranchos tank and locating equipment for the valves installed within the District.

Credit cards are now being accepted; and hopefully, beginning in the new fiscal year payments will be accepted by accessing our web site.

Four board positions are up for election and 6 people have filed for those positions. With that election, the national elections and the downturn in the economy this fiscal year is promising to be a challenging one for the SGID.