MINUTES. August 8, 2007

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1 MINUTES BOARD OF DIRECTORS NEVADA IRRIGATION DISTRICT The Board of Directors of the Nevada Irrigation District convened in regular session at the District's main office located at 1036 W. Main Street, Grass Valley, on the 8 th day of August, 2007 at 9:00 a.m. Present were Scott Miller, President; and George Leipzig, Vice President; John H. Drew, Nancy Weber and R. Paul Williams, Directors. Staff members present included Ron Nelson, General Manager; Timothy A. Crough, Assistant General Manager; Marie G. Owens, Finance Manager/Treasurer; Gary King, Chief Engineer; John Kirk, Maintenance Manager; Don Wight, Operations Manager; Dustin Cooper, District Counsel (during closed sessions); and Lisa Francis Tassone, Board Secretary. The Minutes of the regular meeting held July 25, 2007 were approved as submitted. AGREEMENTS: EASEMENT SALE AND EXCHANGE WITH SIERRA COLLEGE Accepted and approved Easement Sale and Exchange Agreement with Sierra College and authorized the General Manager to execute the necessary documents. M/S/C Weber/Leipzig ASSESSMENT RATE (Res ) Adopted Resolution No (Fixing the Rate of Money to be Raised by Assessments, , and Determining the Assessment Rate for Voter Approved Debt Service) setting the assessment rate at $ per $100 of assessable property (land only) within the District. M/S/C Weber/Leipzig AT&T CELL TOWER AT SECRET TOWN ROAD SITE Add MetroPCS Facilities Approved Request for a Letter of Authorization to add MetroPCS Facilities to the Existing AT&T Tower at the Secret Town Road Site. M/S/C Weber/Leipzig 202

2 EMPLOYEE RELATIONS Hubbard, Retirement Presentation (Res ) Gary King, Chief Engineer, stated that a key employee is retiring from the District Larry Hubbard, Associate Land Surveyor. He has done an excellent job in the five plus years he has been with the District. He has transitioned the Department to GPS technology. It is a sad day for the District, but Mr. Hubbard has other jobs to keep him busy. He has recently purchased a door Model A Ford which he plans on restoring. Mr. King stated he will miss Mr. Hubbard. Mr. Hubbard addressed the Board and stated that in 1993, he and his wife visited a high school friend in Nevada City (Tom Balch, former mayor of Nevada City). While here, Mr. Hubbard and his wife both agreed that they liked the area. He spent part of his time looking for a land surveyor position. At the end of 2001, a flyer was in the mail advertising the position of Associate Land Surveyor at the District. He asked his wife how she would feel about moving to Grass Valley. The timing was perfect he had just sold his business. He has enjoyed his employment as Associate Land Surveyor. The Engineering Department has been a great Department to work with, and the District is a great organization to work for. Mr. Hubbard stated that he is retiring a little sooner than he had planned. He believes that the Model A project may be more difficult than working for the District. Mr. Hubbard thanked the Board for the opportunity to work with the District. He introduced his wife, Denia. Director Drew stated that he had a 1930 Model A and offered to assist Mr. Hubbard if necessary. Director Drew stated that he worked for Sacramento County for the Highways and Bridges Engineering Department on the survey crew. He stated that it was the best job he ever had. Director Drew s father was a surveyor also. The surveying profession is a good profession. Director Leipzig stated that a friend of his who owns a Model A lives in Lake Wildwood. Apparently he spends about 90 hours a week on restoring the Model A. The Board applauded Mr. Hubbard s 5 years of service. President Miller presented Mr. Hubbard the Resolution of Appreciation (Res ). WARRANTS Approved the following warrants: upon the motion made by Director Leipzig, seconded by Director Williams: Yuba-Bear Revolving Fund Nos through 20192, inclusive; General Fund Revolving Account Nos through 39537, inclusive, No being void; Payroll Direct Deposit and Warrant Nos through 41192, inclusive; and Recreation Fund Nos through Motion passed on the following roll call vote: Division I No 203

3 Division II Division III Division IV Division V Director Weber noted that due to the use of herbicides, she voted no. DS CANAL FLUME REPLACEMENT PROJECT Recirculation of a Revised Negative Declaration Gary King, Chief Engineer, stated that staff is asking the President of the Board to terminate the public hearing for the DS Canal Flume Replacement Project, and allow staff to revise and recirculate the documents. The President terminated the public hearing for the DS Canal Flume Replacement Project, and directed staff to revise and recirculate the documents associated with the Project. Meeting recessed at 9:12 a.m. and reconvened at 9:30 a.m. GRANTS - Update Ron Nelson, General Manager, reported that the District has been awarded three grants totaling approximately $800,000, thanks to the efforts of Cara Wasilewski, the District s grant writing consultant. LOWER CASCADE CANAL / BANNER CASCADE PIPELINE PROJECT - Consultants Ron Nelson, General Manager, reported that staff has been reviewing the consultants who have responded to a request for proposal for the Lower Cascade Canal / Banner Cascade Pipeline Project. The list is down to four, and he inquired of the Board if they are interested in being involved in the interview process. Director Weber stated that she is interested in being involved in the selection process because this Project is in the area she represents, and because she is a member of the Engineering Committee. Discussion ensued regarding whether or not to develop a policy or template for the Board s involvement on any project, not just the Lower Cascade Canal / Banner Cascade Pipeline Project. President Miller requested that staff present this matter (developing a policy pertaining to the Board s involvement with the selection of consultants for District projects) to the Administrative Practices Committee. President Miller stated that the Board should, in the future, participate in a workshop regarding meeting processes (Robert s Rules of Order, etc.). 204

4 MOUNTAIN COUNTIES WATER RESOURCES ASSOCIATION Meeting of August 10, 2007 Director Leipzig inquired of the Board and staff if they are planning on attending the Mountain Counties Water Resources Association (MCWRA) meeting on August 10, Ron Nelson, General Manager, stated that he is planning on attending the California Water Plan which is associated with the MCWRA meeting. LOWER CASCADE CANAL / BANNER CASCADE PIPELINE PROJECT - Consultant Selection Criteria Director Drew stated that when the Engineering Committee returns to the Board with a recommendation on the consultant for the Lower Cascade Canal / Banner Cascade Pipeline Project, he would like to review the criteria used for selection. Gary King, Chief Engineer, explained that an advertisement for Requests for Proposals for the Project occurred in March The District received eight proposals on July 3, Seven proposals were received for the full Project, one proposal for Segment 3 of the Project and two no-bids. Staff utilized a development and review criteria outlined in the proposal. A pre-proposal meeting was held in June with approximately 45 representatives with different consulting firms. At this time, four proposals will be presented to the Engineering Committee for consideration. It was anticipated that the Engineering Committee would participate in the interview process which would take about two days. President Miller reiterated that a policy should be developed and presented to the Administrative Practices Committee regarding the Board s involvement in the selection process of consultants on District projects. Mr. King stated that he would like to utilize the existing process for the Lower Cascade Canal / Banner Cascade Pipeline Project. Tim Crough, Assistant General Manager, reminded the Board that this matter is not on the agenda. CLOSED SESSION was declared at 9:49 a.m. pursuant to Government Code to provide direction to the District s designated bargaining representatives Drew, Nelson, Crough, DuBose and Meith regarding salary/benefit/working conditions CLOSED SESSION was declared at 9:49 a.m. pursuant to Government Code (a) to confer with Legal Counsel regarding existing litigation: Gary Stoddard v. Nevada Irrigation District 205

5 MEETING RECONVENED in regular session at 10:30 a.m. No action was taken on the closed session matters. CEMENT HILL PUMP ZONE Resolution Nos & Tim Crough, Assistant General Manager, stated that he is pleased to introduce this item to the Board. It has taken some time to get to this point. Staff will be asking the Board to adopt two Resolutions: 1) one to formally adopt the boundary map of the Cement Hill Community Facilities District (CFD) ; and 2) one to declare intention of incurring indebtedness. Mr. Crough explained that the Board will adopt a rate and method of apportionment. There are approximately 240 parcels within the CFD, some of which are public properties owned by the City of Nevada City and the Bureau of Land Management. In the rate and method of apportionment prepared for the Board s consideration, special taxes would be exempt to the public properties. However, if the properties are sold to private ownership, then the properties would be subject to special tax. The rate and method of apportionment identifies a 25 year term for the tax formula to be applied. The loan for the Cement Hill project is for a 20 year term. The reason for the difference is due to a contingency. If there are delinquencies, there would be the opportunity to catch up. In addition, taxes could be levied for an additional year if need be. It has been determined that the special tax needed to cover the debt service on the loan would require the properties to pay $1,385 per year per parcel to be collected on the tax rolls with the properties. The special tax amount is based on the amortized debt service of the loan for the number of parcels in the CFD over a 20 year period. There is a statement within the rate and method of apportionment that identifies that the District is not required to levy taxes, but it would be the District s goal to continue to levy taxes where appropriate. If a property owner failed to pay taxes, a manual bill would be sent. Sara Mares, NBS, addressed the Board to explain the process of forming the Cement Hill CFD and the rate and method of apportionment. The Board adopted goals and policies for Community Facilities Districts in April At the same time, the Board initiated proceedings for the CFD. Today, the Resolution of Intention and the Resolution to Incur Debt will be considered for adoption. The remaining process is as follows: Hold a public hearing which is a protest hearing. Both property owners and voters will be allowed to submit written protests. If there are no majority protests of voters or property owners, the Board will consider adopting the Resolution of Formation and the Resolution Calling the Election. The Election will be scheduled for December 11, This is a registered voter election, not a property owner election. Votes would be tabulated and results would be announced at the Board meeting of December 12,

6 The tax lien will then be recorded that enforces the special tax. The rate and method of apportionment allocates a tax in a reasonable manner per Code. There is flexibility in how the tax can be designed, levied and spread in a CFD. All of the developed property in the district will be taxed at the same rate. Undeveloped property less than 10,000 square feet will not be taxed because they are likely not to receive water. If a property subdivides a large parcel, a contingent special tax will be applied so that the newly created parcels will pay a catch up tax so that these property owners will be equal with those property owners who have been paying all along. Ms. Mares noted that provisions have been included to allow property owners to prepay the special tax lien, the lien would then be removed from their property. Also, the lien is transferable because it is a lien on the property, not the property owner. A provision has also been made for a cash collection period. After the election, a notice would be sent by mail to property owners allowing them to take advantage of paying up front if they are not interested in financing the lien. If payment is made, the lien would be released. Norm Stout, Cement Hill resident, thanked Mr. Crough, Mr. Nelson and Ms. Mares for all of the work they have done on this project. He thanked the Board for making a tremendous change. At Mr. Nelson s instigation, the District has established a Strategic Plan, and Mr. Stout thanked the Board for their support. Buck Stovall, Nevada County resident, asked for clarification on the undeveloped parcels less than 10,000 square feet. It was his understanding that some properties would not qualify because they did not have a deep well. Ms. Mares stated that she made no reference to wells and that the rate and method of apportionment has nothing to do with wells. There are three categories: 1) Undeveloped property less than 10,000 square feet has a zero special tax. 2) Property more than 10,000 square feet (developed or undeveloped) will pay a special tax in the amount of $1,385 per year 3) Property less than or equal to 10,000 square feet (developed) will pay a special tax in the amount of $1,385 per year Mr. Stovall asked what the tax is compared to, for example, $1,000 per assessed value or $13.85 per parcel. Director Drew stated that the special tax would amount to $1,385 per year per parcel within the CFD, not $ Adopted Resolution No (Approving Boundary Map and Declaring Intention to Form Community Facilities District and to Authorize Levy of Special Tax). M/S/C Drew/Leipzig 207

7 Adopted Resolution No (Declaring Intention to Incur Indebtedness). M/S/C Weber/Drew Director Weber thanked the Board members and stated that this is a real milestone. MEETING ADJOURNED at 10:58 a.m., to reconvene in regular session on August 22, 2007, 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. Director Division I Division II Division III Division IV Division V Board Secretary 208

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