Recreation and the community at Lake Berryessa has been devastated by the Bureau of Reclamation's transition process for new contracts for the resorts at the lake.
Seven concession were contracted in 1958/59 to develop resorts from raw land. Roads, launch ramps, water and sewer systems, fuel docks, stores, restaurants/cafes and other visitor facilities were put in with concessionaire funds. The contracts all expired in 2008/09.
Bureau of Reclamation [BOR] which manages the concessions came out with a new Visitor Services Plan in 2006. The plan required significant changes for the upcoming new concession contracts, but assured the public that there would be a smooth transition.
Appraisals were then done by Bureau of Reclamtion of the resorts, six of the resorts apraised values were approximately $40 million. Pleasure Cove Resort was appraised only for new improvements made by the interim contractor, the concession had been acquired by BOR through "abandonment," after they forced the previous resort owner into bankruptcy.
There was a Request for Proposals [RFP] in early 2007 with proposals submitted November 2007. Contract awards were given April 2008. Markley Cove Resort and Pleasure Cove Resort's contracts were awarded to the concessionaires of those resorts. The Pensus Group was awarded the other five resorts.
May 2008 Bureau of Reclamation wrote to the five Pensus awared resorts that all permanent facilities must be removed. Two resorts filed for bankruptsy, Putah Creek Resort and Lake Berryessa Marina Resort. The three other resorts, Rancho Monticello Resort, Spanish Flat Resort and Steele Park Resort began to remove all improvements. BOR refused to allow the movement/removal of the land cut/fill improvements.
After nearly a year of negotiations The Pensus Group did not sign their contract. March of 2009 BOR canceled all negotiations and contracts for all of the resorts, and declared the RFP illegal. Pleasure Cove's contract was resigned within a few months. Markley Cove Resort's contract remained cancelled, they were then issued a two year interim contract with a two year option.
A new RFP/Prospectus was issued in May 2009 with proposals submitted September 2009. The RFP disallowed a new concessionaire from purchasing ANY improvements from the prior concessionaires. With the exception of Markley Cove Resort, the winning bidder could choose to purchase some of the improvements from the owners.
January 15, 2010 BOR announced that Pensus Group won the award for all six concessions which were up for bid. Pensus Group signed the contract for six resorts on April 28, 2010.
The public was been locked out of most of the resorts 2008 and 2009. BOR got $4.3 million in "Stimulus Funds" in 2008, most of which has yet to be used. BOR is now seeking an additional $15 million for the cleanup.
Through bankruptcies, Reclamation gained ownership of the improvements at Putah Creek Resort and Lake Berryessa Marina Resort; and through a contract of "abandonment" Spanish Flat Resort and Steele Park Resort.
Rancho Monticello Resort has filed a 5th Amendment Taking lawsuit, which states, “The United States’ failure to compensate Laguna Hermosa [dba Rancho Monticello Resort] for the permanent facilities constitutes a taking of private property without just compensation in violation of the taking clause of the Fifth Amendment to the United Sates Constitution.” A similar lawsuit is expected from Markley Cove Resort in under contract until 2013, but the owners, John and Linda Frazier will not abandon their improvements.
Pensus has opened two resorts for the 2010 Season: Putah Creek Resort, with camping, RVs, launching and porta potties, and Steele Park Resort, with launching and day use parking opened Memorial Weekend [all resorts have new names]. There is not expected to be water or sewer this season at either resort. According to the Pensus contract Spanish Flat Resort was going to be open this summer for camping, RVs and launching, but the latest information is that it will not be open this season.
Pensus Group has posted that they will not take “possession” of Rancho Monticello Resort / Manzanita Canyon until 2014.
The current issues at Lake Berryessa are:
1] BOR taking improvements and personal property from the outgoing concessionaires without any compensation
2] BOR taking of pubic access and public recreation by not having a transition plan and/or allowing resorts to be closed for years at a time
3] BOR actions which have had devasting effects on the entire Lake Berryessa community and economy
4] BOR misuse of Stimulus Funds
5] BOR long term commitment to the maintenance of the concession infrastructures without proper authority and/or appropriations