NEVADA IRRIGATION DISTRICT BOARD OF DIRECTORS MINUTES 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 27th day of June, 2012 at 9:00 a.m. Present were Nick Wilcox, President; Jim Bachman, Vice-President; Nancy Weber, John H. Drew and W. Scott Miller, Directors. Staff members present included Ron Nelson, General Manager; Tim Crough, Assistant General Manager, Jim Malberg, Finance Manager; Gary King, Chief Engineer; Brian Powell, Maintenance Manager; Bill Morrow, Hydroelectric Manager; Peggy Davidson, Recreation Manager; Yvonne DuBose, Human Resources Manager; Jeff Meith, District Counsel; and Lisa Francis Tassone, Board Secretary. CLOSED SESSION was declared at 9:00 a.m. pursuant to Government Code Section 54957.6 to provide direction to the District s designated bargaining representatives Nelson, District Counsel, Miller and/or Weber regarding 2012 salary/benefit/working conditions. MEETING RECONVENED in regular session at 10:07 a.m. MINUTES June 13, 2012 Regular Meeting Approved the Minutes of the Board of Directors regular meeting of June 13, 2012 as submitted. M/S/C Drew/Weber ASSESSMENT DISTRICT No. 2008-1 (Rodeo Flat) Special Tax Levies for FY 2012-2013 (Res. No. 2012-29) Adopted Resolution No. 2012-29 (Acting as the Legislative Body of Assessment District No. 2008-1 Authorizing the Levy of Special Taxes within Assessment District No. 2008-1 for Fiscal Year 2012/2013 Rodeo Flat). M/S/C Drew/Weber 163
BANNER QUAKER HILL SITE KLOVE Lease Expiration and Transfer of Facilities Received and filed a Bill of Sale from Education Media Foundation for the KLOVE tower, shed and equipment. M/S/C Drew/Weber COMMUNITY FACILITIES DISTRICT No. 2007-1 (Cement Hill) Special Tax Levies for FY 2012-2013 (Res. No. 2012-28) Tim Crough, Assistant General Manager, provided the Board with an update on the Community Development Block Grant (CDBG) funding. He spoke with Kyle Thompson, (Nevada County) this morning. There were originally 30 applications submitted for the CDBG funds. Three applications were denied because the income exceeded the requirement. Seventeen applications have been qualified, four property owners need to provide the County with additional information and six property owners are waiting for additional information from a third party (such as a bank). Mr. Thompson shared that he feels the District will receive a check in two weeks. The Resolution before the Board at this time includes the assessment for all parcels within the Community Facilities District. Section 1 of the Resolution authorizes the Finance Manager or designee to make any necessary modifications to the special taxes to correct any errors, omissions or inconsistencies in the listing or categorization of parcels to be taxed or in the amount to be charged to any category of parcels. When the CDBG funds are received, corrections will be made to the assessed parcels. Director Weber asked if the Federal Government has released the funds yet. Mr. Crough explained that the County has authorization to spend the funds, but has not yet received the funds. Director Weber asked about the headings in the Exhibit of the Resolution, specifically the contingent special tax. She asked what contingent special tax represents. Mr. Crough stated that if for some reason the 231 parcels within the CFD were reduced, the contingent special tax would be added, and this would be based on an acreage basis. Larger parcels would pay more. Adopted Resolution No. 2012-28 (Acting as the Legislative Body of Community Facilities District No. 2007-1 Authorizing the Levy of Special Taxes within Community Facilities District No. 2007-1 for Fiscal Year 2012/2013 Cement Hill). M/S/C Drew/Weber WARRANTS Approved the following warrants: Yuba-Bear Revolving Fund Nos. 24680 through 24707, inclusive; General Fund Revolving Account Nos. 58161 through 58299, inclusive; Recreation Fund Nos. 3294 through 3323, inclusive; and Payroll Direct Deposit and Warrant Nos. 63688 through 63849, inclusive. M/S/C Drew/Bachman 164
PURCHASE OF VEHICLES Dump Truck and Three Pickup Trucks for the Maintenance Department Tim Crough, Assistant General Manager, stated that he is asking the Board to approve/ratify the purchase of the following vehicles for the Maintenance Department: One (1) 2012 Ford F350 One-Ton Truck Chassis w/9 foot 3 yard Rugby Dump Body and Fold Down Sides, in the amount of $44,760.59; and Three (3) 2012 Ford F150 4WD ½ Ton Pickup Trucks in the amount of $21,789.58 each, or a total of $65,368.72. Mr. Crough explained that the vehicles were purchased through the California Multiple Award Schedule (CMAS) which eliminates the need for competitive bidding. Ron Nelson, General Manager, stated that Staff budgeted for a certain amount of vehicles for 2012, but will not purchase all of these vehicles. Approved/ratified purchase of one (1) 2012 Ford F350 One-Ton Truck Chassis with 9 foot 3 yard Rugby Dump Body and Fold Down Sides in the amount of $44,760.59, and three (3) 2012 Ford F150 4WD ½ Ton Pickup Trucks in the amount of $65,368.72, from the California Multiple Award Schedule (CMAS) Contract No. 1-11-23-20. M/S/C Drew/Weber SCOTTS FLAT HYDRAULIC ACTUATOR REFURBISHMENT PROJECT Change Orders/Purchase Orders Doug Roderick, Senior Associate Engineer, stated that the Project was originally budgeted in 2011 for two actuators to be refurbished as required by the Federal Energy Regulatory Commission (FERC). During normal operations, there was a loss of fluid which suggested that there was a leak. The divers verified that there was a leak. Big Valley Divers pulled the actuator out and delivered it to Thomas Hydraulics in Chico, CA. They refurbished the actuator which included replacing a seal. The actuator was put back into place, has been inspected and is fully operational. The costs exceeded the General Manager s authority so Staff received a recommendation from the Water and Hydroelectric Operations Committee in November 2011 to advance this matter to the Board of Directors for approval. Staff felt it would be appropriate to present this matter to the Board of Directors when the work was completed. Increases in cost were due to diving time, no as-builts, and the necessity to torch the bolts. Mr. Roderick stated that the next actuator will be repaired in a couple of years. Approved Change Orders/Purchase Orders and associated budget amendment in the amount of $214,208.45 for the Scotts Flat Hydraulic Actuator Refurbishment Project. M/S/C Drew/Bachman CLOSED SESSION was declared at 10:35 a.m. pursuant to Government Code Section 54957.6 to provide direction to the District s designated bargaining representatives 165
Nelson, District Counsel, Miller and/or Weber regarding 2012 salary/benefit/working conditions. MEETING RECONVENED in regular session at 10:45 a.m. NATIONAL MARINE FISHERIES SERVICE (NMFS) Biological Opinion Paul Kelley, Consultant, provided the Board a briefing on the NMFS s Biological Opinion on the US Army Corps of Engineer s Operations and Maintenance of Daguerre and Englebright Dams. Background: South Yuba River Citizens League Legal Challenge to 2007 NMFS Biological Opinion April 2011 Judge Karlton orders NMFS to prepare new Biological Opinion October 2011 A draft Biological Opinion from the US Corps of Engineers to NMFS Proposed Action: Continued operations and maintenance and issue of easements Yuba County Water Agency is an applicant for easement February 29, 2012 NMFS issued Biological Opinion Biological Opinion Procedural Deficiencies: No meaningful NMFS consultation with the Corps NMFS did not consult with Yuba County Water Agency Biological Opinion Substantive Deficiencies: Effects analysis goes beyond Corps proposed action (includes the effect of continued existence of dams) NMFS s inclusion of effects of interrelated or interdependent actions goes against NMFS but for causation test Reasonable Prudent Alternatives (RPAs) require actions beyond Corps authority and funding Cannot be implemented in prescribed time Other agencies (including Yuba County Water Agency) could be required to implement RPAs Unnecessarily conflicts with other in-stream flow requirements Like the Yuba Accord Contains unsupported and incorrect statements and conclusions on biological issues - Ignoring peer-review science - Concerns that the Biological Opinion conclusions will be used in other regulatory proceedings 166
Potential Impacts to NID: Biological Opinion s effects analysis and interpretation of interrelated or interdependent actions would be a precedent for next Biological Opinion (and projects throughout the United States) Biological Opinion s factual errors are untenable Biological Opinion could require the Corps to use permitting authority to require Yuba County Water Agency and others to implement RPAs (If Federal facilities have impacts, then mitigation should be a Federal obligation) Implementation of RPAs would be counterproductive to collaborative fish passage initiatives Ongoing Steps: Monitor and review May 29, 2012 Workshop (Corps, NMFS, Congressional Staff) Review possible responses/actions by NID in conjunction with other Agencies; work with neighboring agencies on written comments Keep NID interests in the discussion and impacts for future regulatory processes Participate in the Yuba Salmon Forum and monitor neighboring activities Ron Nelson, General Manager, stated that a coordinated effort will be made to prepare comments that will be on record that will defend the District s viewpoint and future impacts regarding the Biological Opinion in the next couple of weeks. Director Bachman suggested that the District utilize Congressional leaders with regard to these types of situations. Mr. Kelley concurred. Director Weber asked Mr. Kelley to elaborate on the impacts to the District. Mr. Kelley stated that the interrelated interdependent assertion by NMFS in the Biological Opinion has the potential to reach up into the District s Yuba-Bear operations and relicensing, and the potential for NMFS to use a Biological Opinion on another Project, and take that as comments in relicensing activities. Mr. Nelson stated that when the District enters into the National Environmental Policy Act (NEPA) phase of relicensing, the Biological Opinion will show up as a cumulative impact. President Wilcox stated that the Biological Opinion basically requires the Corps to provide fish passage above and below Englebright by some date. No funding is provided for fish passage projects, and the Corps has no financial authorization for these projects. The risk for the District is that requiring fish passage means that the District has to create adequate conditions to sustain the anadromous fish. This translates directly into draining the District s reservoirs for the benefit of anadromous fish. 167
Mr. Nelson asked the Board members if they are comfortable with Staff completing the letter and submitting the letter regarding the Biological Opinion in the next two weeks or so. President Wilcox stated that the District needs to stay engaged in this process and move ahead with all due speed by commenting on the Biological Opinion. After some discussion, the Board directed Staff to prepare a comment letter, and if there is time, a draft letter will be shared with the Board on July 11, 2012. POWER PURCHASE AGREEMENT Letter Agreement Ron Nelson, General Manager, reported that the Letter Agreement associated with the Power Purchase Agreement with Pacific Gas & Electric Company has been fully executed and is on file. FEDERAL ENERGY REGULATORY COMMISSION (FERC) - Update Ron Nelson, General Manager, reported that the FERC filings of the amendments have been completed. The District has reached out to various agencies to see if continued discussions on the remaining issues are necessary. GENERAL MANAGER - Retirement Ron Nelson, General Manager, announced that he will be leaving the District (retiring). He will need to coordinate with the Board of Directors for a smooth transition. He did not expect to retire this soon, but for personal and private reasons, he needs to do so. He thanked the Board and Staff for the privilege of working with them. President Wilcox stated that Mr. Nelson has made enormous contributions to the District over 10 years. Mr. Nelson stated that his gratification comes every day when he has the chance work with Staff and the Board of Directors. PLACER COUNTY AG TOUR Director Bachman thanked the District for being a sponsor for the Placer County Ag Tour. He and his wife attended and visited three different vineyards in the Placer County area. Placer County Water Agency had several representatives in attendance. He encouraged more participation by the District for future tours. RECREATION Rollins Reservoir Director Drew noted that recreation at Rollins Reservoir is busy. The water quality is good, and the boat slips are full. Recreation is becoming the rising star of the District. 168
Ron Nelson, General Manager, pointed out that Staff is in the process of preparing a budget amendment for the Board to consider regarding additional staffing in the Recreation Division. PROPOSITION 1A Status on Reimbursement Director Weber stated that a month ago she had asked about the status of the Proposition 1A reimbursement. Coincidentally, the Association of California Water Agencies (ACWA) had an article in their newsletter. The deadline for repayment by the State, with interest, is June 30, 2013. MOUNTAIN COUNTIES WATER RESOURCE ASSOCIATION (MCWRA) - Meeting Director Weber reported that she attended the MCWRA meeting on June 15, 2012 at El Dorado Irrigation District. There were a couple of interesting presentations. One presentation by Barbara Balen of Tuolumne Utilities District Board of Directors provided a report on obtaining National Registry of Historic Places status for their wooden flumes. Each property owner that has a flume on their property could decide whether or not they wanted to participate. There was also a panel discussing ecosystem management strategy for the Sierra Nevada. One panelist was Barry Hill, a hydrologist with the Forest Service. Another panelist was Roger Bales, UC Merced, who is in charge of Project Sweep. Project Sweep will study the effect of different forestry practices and climate change on water supply. They are in the planning stage, but have no funds for implementation. CLOSED SESSION was declared at 11:22 a.m. pursuant to Government Code Section 54956.8 to confer with Real Property Negotiators Nelson, Morrow, Sindt and Meith regarding price and terms of payment for acquisition and sale of rights in real property; properties subject to negotiations: South Yuba Canal, Chalk Bluff Canal, Deer Creek Powerhouse; flowage/wheeling rights in Drum Canal, Bear River Canal, Wise Canal, and South Canal (all owned by PG&E) Flowage Rights in Bowman-Spaulding Canal, Fall Creek Flume, Dutch Flat Flume, and Chicago Park Flume; right to storage in Rollins Reservoir (all owned by NID) Persons with whom negotiations will be conducted: PG&E Management. MEETING RECONVENED in regular session at 12:00 p.m. MEETING ADJOURNED at 12:00 p.m. to reconvene in regular session on July 11, 2012, at 9:00 a.m. at the District's main office located at 1036 W. Main Street, Grass Valley, California. 169
Board Secretary 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 170