MINUTES. July 24, 2013

Transcription

1 NEVADA IRRIGATION DISTRICT BOARD OF DIRECTORS / JOINT POWERS AUTHORITY MINUTES The Board of Directors of the Nevada Irrigation District and the Nevada Irrigation District Joint Powers Authority convened in regular session at the District's main office located at 1036 W. Main Street, Grass Valley, on the 24th day of July 2013 at 9:00 a.m. Present were Jim Bachman, President; John H. Drew, Vice-President; Nancy Weber, W. Scott Miller and Nick Wilcox, Directors. Staff members present included Remleh Scherzinger, General Manager; Jim Malberg, Finance Manager; Gary King, Engineering Manager; Emily LaMoe, District Counsel; and Lisa Francis Tassone, Board Secretary. PUBLIC COMMENT - McMullin Phil McMullin, resident on Brunswick Pines Road, stated that he has two accounts, and would like to pay his water bills with a credit card. He encouraged the Board to consider providing this service. Jim Malberg, Finance Manager/Treasurer, stated that the District receives this request on a frequent basis (about 20 to 30 requests a day during the past month). He is planning on presenting this matter to the Administrative Practices Committee on August 6, MINUTES July 10, 2013 Regular Meeting Approved the Minutes of the Board of Directors regular meeting of July 10, 2013, as submitted. M/S/C Weber/Drew WARRANTS Approved the following warrants: Yuba-Bear Revolving Fund Nos through 25653, inclusive; General Fund Revolving Account Nos through 62050, inclusive; and Recreation Fund Nos through 3932, inclusive. M/S/C Weber/Drew 144

2 POLICY: Administrative Policies Conflict of Interest (Res. No ) Adopted Resolution No (Establishing Policies for Administration Conflict of Interest). M/S/C Weber/Drew DISTRICT S BUSINESS CENTER Building Repairs Gary King, Engineering Manager, presented a recommendation from the Engineering Committee to approve a contract with Bruce Ivy Construction in the amount of $241, and to approve a budget amendment in the amount of $330,000. There have been a number of leaks, and a number of repairs have been made to no avail. A Structural Insulated Panel system (SIP) was used for the new section of the building. The work would consist of peeling the stucco, and making the necessary repairs. Ultimately, the goal is to stop the leaking. The biggest risk to the District is the issue of mold. Testing has been done, and there is no mold in the air in the building at this time; however, mold could be in the walls. Mold is a significant health and safety issue, and at some point, the mold could penetrate the walls. Staff has presented this matter to the Engineering Committee, and the Committee has advanced the matter to the Board of Directors. Mr. King stated that the reason this project did not go out to bid, is because the walls would have to be opened up so that contractors could evaluate the situation before submitting formal bids. This is a lengthy process, and there could be damage due to the building being exposed. Bruce Ivy Construction has completed a number of projects for the District, and he has a positive working relationship with the District. Mr. Ivy has provided a bid based on the best case and the worst case scenarios. Mr. King explained that several departments provided funding for the project in the amount of $330,000. He stated that the goal is to finish this project as soon as possible. The Maintenance Department will manage the construction project with the support of the Engineering Department. Director Weber asked who the contractor was that installed the addition to the Business Center. Bruce Ivy stated that John Schrugen was the contractor that completed the addition. Director Weber stated that there is reference to parking lot problems, and asked for more details. Mr. King stated that there is a location near the Engineering Department that ices over in the winter. The repair would consist of raising the sidewalk so that it does not ice over, so that slips and falls will be reduced. This is included in the contract. President Bachman stated that in his 50 years of construction experience, he never used the SIP system. It appears to him that the water proofing would come from the paper and stucco. 145

3 Mr. Ivy explained that 16 corings were done throughout the building. He found that the Oriented Strand Board (OSB) on the exterior of the SIP was saw dust. The SIP consists of six inches of foam with OSB on both sides. Moisture is being trapped in the wall either from failed flashings, or paper tears. The water is going up and down the wall depending on the temperature causing the OSB to rot. He stated that the SIP system was cutting edge at the time, and the product had not been fully vetted. It was learned over time what was done wrong. The problem the District is experiencing is not uncommon with the installation of early SIP systems. Director Wilcox stated that under normal circumstances, he would not be in favor of a sole source contract; however, Mr. Ivy is a reputable contractor and he trusts that Mr. Ivy will treat the District fairly. Approved contract with Bruce Ivy Construction in the amount of $241, for building repairs to the District s Business Center and approved budget amendment in the amount of $330,000; authorized the General Manager to execute the necessary documents. M/S/C Miller/Wilcox QUARTERLY INVESTMENT REPORT AND UPDATE ON RESERVE BALANCES Jim Malberg, Finance Manager/Treasurer, apologized for not providing the handouts in the agenda packet. He referenced the schedule of cash as of June 30, This schedule breaks down the cash accounts and balances, in addition to the investments the District holds for a total of $59.5 million. Director Weber noted that Rodeo Flat is listed in the Schedule of Investments. She asked if Cement Hill is included. Mr. Malberg stated that Rodeo Flat is listed in the Schedule because the District purchased those bonds. Cement Hill is included with the US Bank investment. He stated that he will label these accounts in the future. Director Weber stated that she struggles with financial information when she receives information the day of a Board meeting. She needs to study the information. She would appreciate receiving the information ahead of time. Director Miller stated that if the Board was making a decision at this time, he would agree with Director Weber s comments. Since this is a discussion item, he feels that it is appropriate to receive the information the day of the Board meeting. Mr. Malberg referenced the handout that depicts the District s reserve position in graph form for the years 2008 through The reserves have decreased due to major projects being completed during the past several years. He stated that the reserves should increase in the next year or so. Director Weber asked if a graph depicting the District s debt could be presented with the next quarterly report. 146

4 Mr. Malberg responded affirmatively. AGREEMENTS: SOUTH SUTTER WATER DISTRICT WATER SALES AGREEMENT - Amendment Sue Sindt, Operations Administrator, stated that she is seeking the Board s approval of an Amendment to the 2013 Water Sales Agreement with South Sutter Water District (SSWD) which will allow for the sale of up to an additional 2,500 acre feet. SSWD has inquired about the possibility of getting additional water. Pacific Gas & Electric Company (PG&E) has reevaluated their supplies and can make an additional 2,500 acre feet of supplemental water available. SSWD will use this water to offset use of groundwater. In April, it was prudent to be conservative with the amount of water to make available to SSWD because there was a fair amount of uncertainty in the amount of water available due to the snow water content being at 50 percent of average. A successor agreement to the PG&E Coordinated Operating Agreement had not yet been executed, nor had the Bridging Agreement been finalized, so there was uncertainty in the availability of PG&E water past June 30. Also, the repair of the Bowman-Spaulding penstock was just getting underway. At that point, the District was bypassing a limited amount of water, but the return to service date was unknown. The repair is not directly related to making water available to SSWD, but it is related to the management of reservoir elevations at Rollins and Spaulding for recreation purposes and was a factor in determining how much water to originally make available to SSWD. At this point in the year, District reservoir storage is at 101 percent of average. The Amendment to the Agreement with SSWD will not compromise the District s ability to purchase PG&E water as necessary to manage carryover storage, nor will it affect the amount of PG&E water available for Placer County Water Agency. The Bridging Agreement with PG&E has been executed and the Bowman-Spaulding penstock repair is almost complete, so it is recommended that the Board approve the Amendment. Director Miller asked if the South Yuba Canal outage that occurred at the beginning of July resulted in an increase to storage. Ms. Sindt stated that the District retained approximately 400 acre feet in storage as a result of this event. Director Drew made a motion to approve Amendment to the South Sutter Water District Water Sales Agreement and to authorize the General Manager to execute the necessary documents. Director Weber seconded the motion. Motion passed on the following roll call vote: Division I Division II Division III Aye Aye Aye 147

5 Division IV Division V Aye No Director Miller asked what SSWD will be paying the District for this water. Ms. Sindt explained that SSWD is paying the outside District surplus rate in the amount of $29.33 per acre foot. Per the PG&E Bridging Agreement, the District is purchasing some of the water at $3 per acre foot and some water is being purchased at the avoided cost of energy rate for Newcastle Power House which was approximately $13.71 per acre foot in June. WATER STORAGE - Update Rem Scherzinger, General Manager, reported that the District currently has approximately 216,000 acre feet of storage. BOWMAN-SPAULDING REPAIR - Update Rem Scherzinger, General Manager, reported that 80 cubic yards of concrete has been poured, and the anchors are being bored on the block. The drain valve is being prepared, and he anticipates that the facility will be back in service in August. RETIREMENT CEREMONY Alex Ferreira Rem Scherzinger, General Manager, reported that he and Directors Drew and Bachman attended the retirement ceremony honoring Alex Ferreira, Director at Placer County Water Agency. The event was well attended, and there were a number of presentations and speakers sharing the history of Mr. Ferreira s community service. RETIREMENT Bill Morrow Rem Scherzinger, General Manager, reported that Bill Morrow, Hydroelectric Manager, has retired as of July 22, NEWTOWN CANAL PARTIAL ENCASEMENT PROJECT - Update Rem Scherzinger, General Manager, reported that the Engineering Department will begin making the first offers for right-of-way easements for the Newtown Canal Project. BANNER-TAYLOR RESERVOIR RESTORATION PROJECT - Update Rem Scherzinger, General Manager, reported that at this time, the liner is being cut up and is no longer used for water storage. COSUMNES, AMERICAN, BEAR AND YUBA RIVER INTEGRATED REGIONAL WATERSHED MANAGEMENT PLANNING GROUP (CABY IRWMP) - Update Director Weber stated that she plans on providing a CABY update at each Board meeting. She has nothing to report at this time, but she has downloaded some information from CABY s website. There is a great deal of work that needs to be done. 148

6 There are minutes available from only two meetings out of all of the years that CABY has been in existence. This needs to change. RECREATION - Update Director Drew reported that recreation facilities at the District are "booming" at Rollins Reservoir. The sites are "packed." One of the offshoots of this is that campers are swimming in and around the docks as opposed to the swimming areas. Rear landing decks on the boats are being used as climb out points. There is usually someone posted at the end of the ramp, and the activitydoes not occur until he leaves his post. HISTORICAL SOCIETY - Presentation bv Les Nicholson Director Weber reported that she attended a presentation on the early history of the District provided by former District employee Les Nicholson and sponsored by the Historical Society. She said the presentation was well attended and the old photos were wonderful. She would like to ensure that this history is documented. He has documents that the District needs to have, especially old Pacific Gas & Electric documents. Rem Scherzinger, General Manager, stated that he would like to interview Mr. Nicolson and Terry Mayfield, another former District employee. He would also like them to provide a presentation at a brown bag session for the Board of Directors and the employees. Director Drew stated that Mr. Nicholson and Mr. Mayfield love the District, and they had long careers at the District. WORKSHOP - Elster Ranch President Bachman reported that he and Lesa Osterholm, Water Efficiency Coordinator, attended a workshop on July 23, 2013 at Elster Ranch, owned by George Noble, off of McCourtney Road. The Ranch has 320 acres, with 100 acres of irrigated pasture. They have 80 head of cattle and market the beef at the Briar Patch. They purchase 35 miner inches of water from the District, and the water comes off of the Tarr Canal. They have a 300 foot elevation drop and have installed three pressure reducing valves. President Bachman attended the workshop primarily to learn more about the K-Line sprinkler system, a new innovative above-ground system. The event was very well attended, and he was glad that there was a District presence. CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) - Election of Region 2 (Seat B) Board of Directors Cast a ballot for Ginger Root, representative of Lincoln Rural County Fire Protection District, for the California Special Districts Association (CSDA) Region 2 (Seat B) Board of Directors. M/S/C Drew/Weber 149

7 SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY (SDRMA) - Election of Board of Directors (Res. No ) Casting Ballot for Adopted Resolution No (For the Election of Directors to the Special District Risk Management Authority Board of Directors) by casting a ballot selecting Mike Scheafer, DirectorWice President, Costa Mesa Sanitary District; John Woolley, Director/Finance Officer, Manila Community Services District; Jean Bracy, Director of Administrative Services, Mojave Desert Air Quality Management District; and David Aranda, North of the River Municipal Water District. M/S/C Wilcox/Miller - CLOSED SESSION was declared at 9:51 a.m. pursuant to Government Code Section (b) to confer with Legal Counsel - Anticipated Litigation - Claim of George Loftus. CLOSED SESSION was declared at 9:51a.m. pursuant to Government Code Section to provide direction to the District's designated bargaining representatives - Scherzinger, Crough and/or District Counsel - regarding 2013 salary/benefit/working conditions. CLOSED SESSION was declared at 9:51 a.m. pursuant to Government Code Section 54957: Public Employee Performance Evaluation - General Manager. MEETING RECONVENED in regular session at 12:00 p.m. " MEETING ADJOURNED at 12:00 p.m. to reconvene in regular session on August 14, 2013, at 9:00 a.m. at the District's main office located at 1036 W. Main Street, Grass Valley, California. Attest a true record of actions had and taken at the above and foregoing meeting our presence thereat and our consent thereto. /$V BoardjSecretary 7/i/t->t.C<~i K_.S<e- ±<h >rt / Director Division

8 j^h{ajfr*a Division IV Division V r 151