On October 20, 2023, the TCPUD Board of Directors adopted the HDR 2023 Infrastructure Improvement Charge Rate Study (Resolution No. 23-29) and the Infrastructure Improvement Charge for customers in the Tahoe Cedars and Madden Creek water service areas (Ordinance No. 308). Prior to the adoption of the Resolution and Ordinance by the Board, the TCPUD retained an independent rate consultant, HDR Engineering, Inc., to perform a comprehensive Rate Study to develop a cost-based infrastructure improvement charge that reflects the specific benefit of fire protection improvements to the customers in the Tahoe Cedars and Madden Creek water service areas. 

The Charge is specific to the cost of upsizing waterlines and adding fire hydrants to meet modern fire protection standards as part of the complete reconstruction of the Tahoe Cedars and Madden Creek water systems.  It represents a secure source of revenue that will be combined with water rate revenue from all TCPUD water customers and TCPUD property tax revenue and allows the TCPUD to pursue debt financing for the Tahoe Cedars and Madden Creek Water System reconstruction projects. 

The Charge, effective on January 1, 2024, will be:

• Fixed at $43.58 per month for 30 years.
• Paid by all current and future water customers in the Tahoe Cedars and Madden Creek water service areas.
• In addition to the customer’s regular water rate and included in the bill. 

The Charge was established in compliance with Proposition 218 and is consistent with the Board’s commitment to transparency and the long-term financial sustainability of the TCPUD.

Background

In January 2018, TCPUD purchased the privately owned Mid-Sierra Water Utility, which included the Tahoe Cedars and Madden Creek water systems. The TCPUD immediately began operating and investing in both water systems, and in 2021, the TCPUD Board adopted Water System Master Plans (Plans). These Plans identified serious deficiencies such as actively failing water mains and insufficient fire suppression capacity, including undersized water mains and a significant lack of fire hydrants.  Additionally, the Plans called for complete system reconstruction in both service areas.

Public Outreach:

• Two public workshops were held to review the 2023 Rate Study and proposed Charge (September 19 and 20, 2023).
• Staff presented information on the 2023 Rate Study at the Tahoe Cedars Property Owners Association and Homewood Homeowners Association annual meetings.
• Two public meetings were held on the 2023 Rate Study's findings, conclusions, and recommendations (July 26 and August 18, 2023).
• Project information distributed through webpage and constant contact.

2023 Rate Study Public Meeting Presentations

To view previous meetings regarding the Charge (held on Apr 21, 2023, Jul 26, 2023, and Aug 18, 2023) and the Public Hearing (Oct 20, 2023), visit TCPUD Board Meetings.

Documents and Exhibits

• Ordinance No. 308 (Establishing an Infrastructure Improvement Charge for Current and Future Customers in the Tahoe Cedars and Madden Creek Water Service Areas)
• Resolution No. 23-29 (Adopting the HDR 2023 Infrastructure Improvement Charge Rate Study for customers in the Tahoe Cedars and Madden Creek Water Service Areas)
• HDR Engineering, Inc. (HDR) Final Report on development of Infrastructure Improvement Charge
• Infrastructure Improvement Charge FAQs
• Prop 218 OFFICIAL NOTICE: Notice of Public Hearing on Proposed Infrastructure Improvement Charge, to be conducted October 20, 2023 
• Exhibits Presented at Public Workshops

Learn about the Tahoe Cedars and Madden Creek Reconstruction Projects:

Tahoe Cedars Water System Reconstruction Project

• Tahoe Cedars Service Area Map

Madden Creek Water System Reconstruction Project

• Madden Creek Service Area Map

For more information: Contact Aaron Hussmann by email or 530-580-6291.