Bids for a 1.3 million gallon water storage tank came in well below what North Tahoe Public Utility District board of directors was ready to pay.

At the Aug. 10 meeting directors awarded the $1.76 million project to Paso Robles Tank Inc. This is more than $250,000 less than engineers estimated.

This project includes the construction of a 1.3 million gallon water storage tank, booster pump station, water lines and all appurtenances at the end of Canterbury Drive in Kings Beach. This tank will bring the district into compliance with current standards for water storage based on use and potential fire flow needs. The tank was an integral part of the need for the 2007 rate increase.

Related to this project, the board heard an update from Craig Hill of Northcross Hill and Ach and Andy Hall of Jones Hall on the status of the district’s financing for the water tank and the other 15,000-plus linear feet of water line that are being installed within the district this year. The district intends to fund $4.5 million in project costs. The annual debt service is estimated to be $550,000 to $575,000.

Northcross Hill and Ach are soliciting interest from financial institutions in providing the financing for these projects. The financing will come from a financial institution such as a bank or from the general public through an investment banking firm through municipal bonds.

In addition to district funds, grants from the U.S. Forest Service through the Lake Tahoe Restoration Act are also being used for projects that qualify.