Carson City Supervisors move forward with Clear Creek water lease to Washoe Tribe sawmill, asking for higher rate

Carson City Supervisors discussed moving forward with a contract with the Washoe Development Corporation (WDC) for the diversion and use of around 71 million gallons of surface water from Clear Creek each year for use in the Tahoe Forest Products (TFP) saw mill, but asked for the lease to return with a higher price paid to the city.

The saw mill has long been a point of contention for nearby neighbors, a majority of whom do not approve of the mill. However, because the mill is on Washoe tribe owned land, neither Douglas County nor Carson City governments or citizens have a say in what can or cannot go onto the property.

According to WDC's Wendy Loomis, the site spans a total of 168 acres, and initially, TFP asked for a much larger site. However, following multiple environmental and cultural studies, the tribe offered a much smaller site of 37 acres.

Currently, Loomis said, TFP is utilizing Douglas County municipal water through fire hydrants, which she said is "not a good method."

The water is used to water down the logs waiting to be turned into lumber, so they do not become a fire hazard. The water used to "sprinkle" the logs is then caught by plastic and directed into a retaining pond on the site where it can be drawn from again and reused.

Loomis said WDC has three objectives for its projects: first, it must protect mother earth, second, it must create workforce development, and third, it must create some type of sustainable revenue that comes back to the tribe.

TFP is using trees destroyed in recent wildfires to turn into usable lumber which, Loomis said, is a benefit to the environment.

"Even though the bark was damaged, the wood is very usable," Loomis said.

They also have contracts with NV Energy and Douglas County who previously had to send trees to Oregon to be processed after they were cleared.

However, neighbors of the mill refute the project is a benefit to the environment.

Neighbor Susan Smock said contrary to Loomis's claim, there is not plastic down "all over" the site, and the term "sprinkles" is incorrect as water is streamed constantly over the logs.

She said that the logs coming in are covered in fire retardant from the fires, and can be seen sitting in the piles.

She said Loomis told neighbors the site would be digging its own well, which it has not done.

"What we were promised isn't what we got."

Neighbor Dawn Wood said the saw mill has effected her "tremendously." She said the site was clear cut in two days, destroying natural vegetation and ecosystems in the process. She said the smell from the rotting logs that have "water pouring all over them day and night" is causing a smell that is "like living in an untreated fish tank."

Wood said she has never seen them lay plastic. She also said that TFP should not be able to use water from the fire hydrants because if there is a fire in the neighborhood, there will be no pressure to put it out.

Horton said he did not believe the amount of water being used from the hydrant would have an affect on firefighting, unless there was a scenario of a "big commercial fire."

"If flow from one hydrant kills your flow, you've got a big humongous problem in your community," Horton said. "I don't know if the fire hydrant issue is relevant."

Bagwell said she was sorry for the neighbors, who are Douglas County residents, that they weren't able to have their voices heard during the initial approval of the project by the tribe. "I'm sorry you never had a public access to be put on the record, and I'm sorry we won't be able to solve some of your issues because it's not within our jurisdiction. But we care, we care about our neighbors."

Initially, the tribe asked the city for a ten-year contract as they would need to install infrastructure and pumps in order to divert water from the creek. However, the city negotiated it down to a five-year contract, with the option to agree to a second five-year contract if both parties agree.

According to Andy Hummel, utility manager for Carson City, the water is not currently usable to the city because there is no infrastructure to support it. To use it for drinking water, a treatment plant would need to be constructed nearby. The water has not been utilized by the city since the 1960s, when it was used to irrigate Fuji Park, which is now on municipal water.

"So even though we have the rights, it's not usable to us, because of the lack of infrastructure," Supervisor Lisa Schuette said.

Supervisor Maurice White claimed that the water is used to "flush wells" and it would be a mistake to lease the water, as it could provide an opportunity to clear out wells that are currently unusable due to nitrates.

However, as was pointed out by Supervisor Curt Horton who worked for public works for over 35 years, surface water has little effect on ground wells because it is very difficult to capture without infrastructure such as dams or retaining ponds.

Mayor Lori Bagwell asked if the nitrate well issue could be fixed within the next five years, the term of the agreement, and Hummel said no.

"Leasing water is a good idea - for the right price," Horton said. "There's nothing wrong with letting it run down the creek, but it's not going to cure or make a difference in the nitrate issue. Letting it go downstream, we're not getting nay benefit. This is an opportunity to make a little money."

However, Horton and other supervisors questioned if the price, proposed at $35,518 per year, or 50 cents per 1,000 gallons, was enough.

Mayor Lori Bagwell pointed out that tax payers are paying 75 cents per acre foot from Marlette Lake for drinking water, and said she would like to see the same price.

However, Hummel said, the reason behind the Marlette price is due to the extensive infrastructure needed to bring the water down, whereas the tribe would be funding the infrastructure cost to divert water from the creek.

Debbie Leonard, counsel for WDC, said the price was discussed and initially proposed by the city, not the tribe.

Giomi said leasing the water rights would have less of an environmental impact on the area, and the neighbors, than TFP digging their own well, which they are allowed to do with permission from the tribe. If they dug their own well, it could drain the aquifers of nearby residential wells, which neighbors are concerned about.

Bagwell asked Loomis why they had chose not to dig their own well.

Loomis said they decided not to because of the concerns from nearby residents, as well as potential environmental concerns to the aquifer.

Schuette said while there are issues residents are dealing with TFP, such as smell, hours of operation, trucks, etc., saying yes or no to leasing the water wouldn't have any effect on them.

Bagwell said the board would not approve the 50 cent lease, and would need a higher price. The city pays Minden 90 cents for the water brought into Carson City, and Bagwell said 75 cents to 90 cents was the "ballpark" they were searching for.

"If we're paying within that range, you'll be in that range, too," Bagwell said. "That's where we feel comfortable paying our own rate payers."

Bagwell asked for the resolution to return at the next meeting with a higher price. Loomis said she would need to discuss the cost with the tribe, as it would need to be beneficial to the tribe.

"We're not going to say 'okay we'll give you $5 per acre feet;' we need to make sure it's beneficial to both parties while also taking into consideration how it's going to impact the residences."

"And (90 cents) is something you guys will have to decide on," Giomi said.

The item will return before supervisors in two weeks.