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 14th day of January, 2009 at 9:00 a.m. Present were John H. Drew, President; R. Paul Williams, Vice-President; Nancy Weber, Scott Miller and Nick Wilcox, 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; Jeffrey A. Meith, District Counsel; and Lisa Francis Tassone, Board Secretary. The Minutes of the special meeting held January 7, 2009 were approved as submitted. EMPLOYEE RELATIONS Ottonello, Retirement Presentation (Res. 2008-60) John Kirk, Maintenance Manager, recognized John Ottonello for 27 years of service with the District, and congratulated him on his retirement. Mr. Ottonello began his employment with the District in October 1981 on the Labor Crew. After three years he was promoted to the Service Crew. Since that time, Mr. Ottonello has probably been involved with every single treated water service in the District (23,000). Mr. Kirk respects and admires Mr. Ottonello s knowledge of service installations. When Mr. Kirk became the Maintenance Manager, he became aware of Mr. Ottonello s teaching abilities regarding the repair and installation methods for treated water services. He has a great demeanor and presence in addition to being a good leader. The Board applauded Mr. Ottonello s 27 years of service. President Drew presented Mr. Ottonello the Resolution of Appreciation (Res. 2008-60). EMPLOYEE RELATIONS Thomas, Retirement Presentation (Res. 2008-61) Don Wight, Operations Manager, recognized Ray Thomas for 25 years of service with the District, and congratulated him on his retirement. Mr. Thomas has been a key employee in the Operations Department. For the past 15 years he has been the lead 8
employee overseeing the District s Lower Division Hydroelectric Plants. Mr. Wight stated that he appreciates the work Mr. Thomas has done for the District. Mr. Thomas stated that he will miss the District. It has been a fun place to work. The Board applauded Mr. Thomas 25 years of service. President Drew presented Mr. Thomas the Resolution of Appreciation (Res. 2008-61). EMPLOYEE RELATIONS Ruvalcaba Retirement (Res. No. 2009-01) Under the Consent Agenda, the Board adopted Resolution 2009-01 (Resolution of Appreciation upon Retirement Santiago Ruvalcaba) after 30 years of service to the District. M/S/C Weber/Williams EMPLOYEE RELATIONS Allen Retirement (Res. No. 2009-02) Under the Consent Agenda, the Board adopted Resolution 2009-02 (Resolution of Appreciation upon Retirement Carey L. Allen) after 38 years of service to the District. M/S/C Weber/Williams EMPLOYEE RELATIONS Witkowski Retirement (Res. No. 2009-03) Under the Consent Agenda, the Board adopted Resolution 2009-03 (Resolution of Appreciation upon Retirement Malte Ghlee Witkowski) after 15 years of service to the District. M/S/C Weber/Williams LOWER SCOTTS FLAT RESERVOIR SIZE LIMITATION ON WATERCRAFT AND MOTORS (Res. No. 2009-04) Adopted Resolution No. 2009-04 (Finding that Certain Watercraft and Motors Should Not Be Allowed on Lower Scotts Flat Reservoir and Requesting Amendment to Nevada County Ordinance No. 1441 for Small Lakes Lower Scotts Flat Reservoir). M/S/C Weber/Williams DISTRICT RESERVOIRS PROHIBITING THE LANDING OF AIRCRAFT (Res. No. 2009-05) Adopted Resolution No. 2009-05 (Requesting Amendment of Placer County Ordinance 3444-B Chapter 10, Section 10.13 Relating to Use Restrictions). M/S/C Weber/Williams ANNUAL DISCLOSURE OF REIMBURSEMENT (Res. 2009-06) Adopted Resolution No. 2009-06 (Annual Disclosure of Reimbursement to Employees and Directors). M/S/C Weber/Williams 9
PERSONNEL Hydraulic Technician I/II Job Description Approved changes to the Hydraulic Technician I/II job description. M/S/C Weber/Williams POLICY AND PROCEDURE Purchasing Approved changes to the District s Purchasing Policy (defining Term Contract) and approved changes to the District s Purchasing Procedure (adding the Human Resources Manager, the Hydroelectric Manager, the Recreation Manager and the Information Systems Manager to the Authority Section). M/S/C Weber/Williams WARRANTS Approved the following warrants: Yuba-Bear Revolving Fund Nos. 21471 through 21540; General Fund Revolving Account Nos. 44887 through 45268, inclusive, Nos. 44424, 44966, 45142, 45104, and 44842 all being void; Recreation Fund Nos. 1662 through 1685, inclusive; and Payroll Direct Deposit and Warrant Nos. 47406 through 47949, inclusive. M/S/C Williams/Weber Director Weber expressed concern about the minimal information provided in the warrants report. She stated that it is difficult to approve the warrants based upon minimal information. Marie G. Owens, Finance Manager/Treasurer, suggested that if the Board of Directors has any questions on the warrants, to feel free to see her prior to the Board meeting for explanations/clarifications. Director Weber also requested progress reports on the District s projects. Gary King, Chief Engineer, stated that he will provide the monthly Project Status Report to the Board of Directors. CLAIMS & SUITS Whittingslow Tim Crough, Assistant General Manager, presented a recommendation from the Maintenance and Resource Management Committee to deny a claim submitted by Craig Whittingslow in the amount of $8,034.28 for losses due to a release of water from Jackson Meadows Reservoir down the middle fork of the Yuba River. Mr. Crough noted that Mr. Whittingslow is not in the audience. President Drew stated that Mr. Crough should continue with his presentation, and if Mr. Whittingslow appears, the Board will invite him to provide comment on this matter. Mr. Crough explained that Mr. Whittingslow dredges gold in the middle fork of the Yuba River. He indicated that he did not receive any notice of the District s release of water from Jackson Meadows. Mr. Whittingslow admittedly heard about the release of water, 10
and he did move his equipment from the river before the release. He confirmed there was no damage to his equipment as a result. Mr. Crough stated that Mr. Whittingslow should have scheduled the release two weeks later so that he could pursue his opportunities to dredge gold a little longer in the season. Mr. Crough stated that the release was scheduled in conjunction with other agencies. The release had already been scheduled once, but needed to be rescheduled to accommodate other agencies and scientists that needed to evaluate impacts of the release pertaining to temperature, frogs, and a number of other issues. Mr. Whittingslow s claim appears to be for a loss of gold that he would have been able to dredge during that period of time the water was released. Director Weber stated that Mr. Whittingslow contacted her to let her know he was not notified of the release, and that a notice should have been placed on his equipment. Mr. Crough stated that leaflets were distributed to those along the river (by helicopter), posted in nearby campgrounds, and a notice was published in the local newspapers. Director Wilcox asked if Mr. Whittingslow is operating pursuant to a permit (i.e. Forest Service). Mr. Crough stated that he did not inquire, but will inquire if the Board so desires. Denied claim by Craig Whittingslow for losses in the amount of $8,034.28 due to a release of water from Jackson Meadows Reservoir. M/S/C Wilcox/Williams President Drew reiterated that if Mr. Whittingslow appeared later in this meeting, the Board would reengage discussion on this matter. COMBIE NORTH POWERHOUSE REPLACEMENT PROJECT Budget Amendment Gary King, Chief Engineer, explained that a budget amendment in the amount of $1,300,000 has been prepared for approval by the Board. Staff reviewed various proposed projects and determined that Phase II of the Brunswick Water Main Project and the School House Siphon Project can be delayed. These projects amount to a transfer of $1,300,000 to the Combie North Powerhouse Replacement Project. Mr. King reported that the contractor has begun demolition of the facility. Director Weber asked for clarification regarding the amount of $3 million reported for the Project in December. She stated that the amount is now up to $3.1 million. Mr. King stated that the contract is solid and all of the engineering is complete. The unit has been purchased and the numbers are solid, other than contingencies which are unpredictable. Director Weber asked if Black and Veatch were the consultants, and Mr. King answered in the affirmative. 11
Director Weber asked what Black and Veatch s role was on the Project. Mr. King explained that they confirmed the economic viability for the Project, they checked shop drawings on the turbine unit and they designed the facility. He added that District Staff will handle the construction management of the Project. Director Wilcox pointed out that this Project will provide revenue to the District in the long run and there is no net budget impact. Approved budget amendment for the North Combie Powerhouse Replacement Project in the amount of $1,300,000, to be funded as a loan from the District s Rate Augmentation Reserve, and authorized the General Manager to execute the necessary documents. M/S/C Wilcox/Weber APPRECIATION: Dave Carter, Public Outreach Ron Nelson, General Manager, recognized Dave Carter for working nearly 30 years with the District in a public outreach capacity. Mr. Carter has done an excellent job reporting out to the community all of the work that the Board accomplishes, and the fine work he does on the employee newsletter. Mr. Carter has been a wonderful ambassador beyond the reporting that he does. President Drew stated that Mr. Carter really cares for the District and the District s relationship to the community. He also cares what goes on in this Boardroom. FEDERAL ENERGY REGULATORY COMMISSION (FERC) Relicensing Update Ron Nelson, General Manager, reported that the District is facing a critical deadline this month in submitting study proposals. This will end the first significant phase of relicensing. The remaining proposed studies will be submitted, FERC will take those under advisement, issue an order, and if any of the agencies have an objection, there is a process whereby the agencies and FERC will resolve the objections. Mr. Nelson stated that 25 study proposals have been agreed to out of 34. Significant progress has been made at coming up with agreed to study proposals, of which many have been implemented. Director Miller would like a workshop to be scheduled for the Board to learn about the results of the FERC studies. He suggested that Staff facilitate the workshop as opposed to the consultant in order to achieve a cost savings. Mr. Nelson pointed out that results from some of the studies will not be available until late 2009 or 2010. He is planning to provide presentations in February to the Water and Hydroelectric Operations Committee and a subsequent Board of Directors meeting to provide an update on the status of relicensing. 12
Director Miller suggested that perhaps each Director select a study that they are interested in, so that the results can be presented at a workshop. LEGISLATIVE UPDATE Ron Nelson, General Manager, reported that the State is no where closer to having a Budget than they were in October 2008. DISTRICT BUDGET 2009-2011 Ron Nelson, General Manager, explained that Staff is beginning to discuss opportunities to streamline the District s Budget and exercise cost savings. A presentation will be made to the Board in February 2009. DEPARTMENT OF WATER RESOURCES Water Plan Update, Bulletin 160-09 Director Wilcox announced that the Department of Water Resources has released their public review draft on the internet of the Water Plan Update Bulletin 160-09. This is a key planning document and a document that the Board and Staff should review at some point. He directed the Board s attention to a fairly strong statement made in the beginning of the document: By and large, California s reservoirs and water delivery systems were designed and operating rules have been developed using historical hydrology, an assumption in the past that has been a good guide to the future, but with climate change, that assumption is simply no longer valid. The Plan states that California s temperature has risen one degree Fahrenheit, mostly at night and during the Winter with higher elevations experiencing the greatest increase. The impact of this change has been that the average early Spring snow pack in the Sierra Nevada has decreased by about 10 percent, with a reduction in total system storage of approximately 1.5 million acre feet. He wanted the Board to be aware of the Plan. There are enormous potential implications for the District. These must be taken seriously and planning for these potential implications should begin. Ron Nelson, General Manager, stated that when discussing this issue with colleagues of other districts, it has been suggested to bring together those who are knowledgeable in climate change and those who have skills in modeling these types of events, in an effort to bring a scientific, thoughtful understanding of this issue to policy makers and water managers, and to develop tools that could be used to help deal with climate change. Director Wilcox stated that the Board is charged with trying to create a vision to keep the District strong well into the future. He said he will provide the internet link to the Board and Staff. In response to President Drew s question regarding the possibility of creating a library for the Directors so that information can be made available for review, Mr. Nelson 13
answered in the affirmative. Director Miller suggested that a computer also be made available. ASSOCIATION OF CALIFORNIA WATER AGENCIES 2008 Fall Conference: Director Drew s Report (Matter Continued from Board of Directors Meeting of December 10, 2008) President Drew reported that he attended the Association of California Water Agencies (ACWA) 2008 Fall Conference. The highlight of the Conference was the presentations on the quagga and zebra mussels. There was a representative from the Department of Fish and Game who he intends to invite to make a presentation to the District s Board of Directors on the quagga and zebra mussel program. One of the outstanding points is that on one panel there were five panelists. One of the panelists from Lake Casitas (in an area between Santa Barbara and Ventura County) stated that every year there is an annual bass tournament. Participants arrive from all over the United States bringing their boats. The manager at Lake Casitas stated that the notification and the inspection process were thoroughly inadequate by the Department of Fish and Game. Management at Lake Casitas has taken responsibility of creating their own inspection program with extremely tight controls. President Drew has also asked that the video presentation titled California Gold by Huell Howser regarding quagga and zebra mussels be obtained by the District. President Drew made available for the Board s review the ACWA 2008 Fall Conference agenda. DROUGHT WATER BANK Director Weber stated that in the Fall of 2008, there was discussion about a drought water bank. The General Manager was going to report back to the Board with information he learned at the Association of California Water Agencies Conference on conservation and drought planning. Ron Nelson, General Manager, stated that he will provide a report to the Board on these matters at a Board meeting in the near future. President Drew asked if the District can begin thinking about a water allotment bank. In other words, one raw water user may purchase five miner s inches, but only need three miner s inches. He asked if the District looks for opportunities to sell the remaining water to those who might need more water. Don Wight, Operations Manager, explained that historically, the purchase of raw water is on a first come/first serve basis. The trend is that users like to purchase more water, and few users give up water. 14
RESOURCE CONSERVATION DISTRICT - Meetings Director Miller stated that he attended several meetings with representatives from the Nevada County Resource Conservation District and the Placer County Resource Conservation District to discuss options to assist the agricultural community regarding conservation measures. Director Weber stated that she and Director Wilcox met with the Resource Conservation District in the Fall of 2008 to discuss conservation issues. Her thought after these discussions is that the issue is more talk. She does not mean to discredit the efforts made, but this is not enough. There needs to be equipment installed so that the cattle growers can see results. Director Weber stated that the Water Efficiency Program that was presented by Mr. Crabtree had omissions such as soil moisture testing, etc. It appeared that there was a lack of hard equipment that may be utilized to improve irrigating practices. Fresno State University has a Water Institute that the District should look into. President Drew stated that the National Resources Conservation Services and the Resource Conservation District will be the lead agencies, and that Nevada Irrigation District will be supportive in these matters. Grant funds should be pursued to assist the agricultural community. Ron Nelson, General Manager, stated that Staff has met with the Resource Conservation District late last year. He suggested that the Board share thoughts and visions with Staff and provide Staff with direction so that efforts are not duplicated. In addition to meeting with the Resource Conservation District and other agricultural programs, Staff is looking at the Department of Interior s resources. Grants are being looked into for various conservation programs. Director Williams stated that the Federal government is proposing the implementation of a cow tax. The proposal consists of $84 per head for beef cattle and $174 per head for dairy cattle per year. The Farm Bureau is fighting this proposal. BOARD COMMITTEES FOR 2009 The President s 2009 Board Committee assignments are as follows: Meeting Day/Time Committee and Members (Staff Attendance) 1 st Tuesday ADMINISTRATIVE PRACTICES 9:00 A.M. Drew, Williams (Nelson, Crough, Owens, Tassone, DuBose) Personnel matters and employee benefits Annexation requests Office Procedure Internal Board policy (per diem, travel, etc.) District memberships and subscriptions 15
Board and management objectives Budgets and financial reporting Audit control Collection of accounts Insurance and Bonds 2 nd Tuesday WATER & HYDROELECTRIC OPERATIONS 9:00 A.M. Miller, Drew (Nelson, Crough, Morrow, Wight) Water supply and utilization Water delivery policy Hydroelectric power policy Hydroelectric Division activities 3 rd Tuesday ENGINEERING 9:00 A.M. Miller, Wilcox (Nelson, Crough, King, Gann) Develop and revise engineering policies Priorities and funding for system development Capital improvement projects (treated and raw water) Hydroelectric power contracts 4 th Tuesday MAINTENANCE & RESOURCE MANAGEMENT 9:00 A.M. Weber, Wilcox (Nelson, Crough, Kirk, Davidson) Maintenance policy (including funding) Resource management policy Recreation Safety Building activities As Needed During the Year WATER RATES Miller, Williams OTHER COMMITTEES/ASSOCIATIONS/COUNCILS Ad Hoc Ad Hoc Ad Hoc LABOR Williams (Nelson, Crough, Owens, DuBose w/meith, ExOff) INTERGOVERNMENTAL RELATIONS Nelson, Crough City and County relations and agreements Local government program coordination State and Federal relations ECONOMIC RESOURCE COUNCIL Nelson or Designated Representative Support and enhance the local economic vitality by supporting the retention, creation, and attraction of quality jobs while at the same time preserving the unique environment 16
WATER COMMITTEE PCWA & NID Miller, Williams Mutual programs and/or projects Meet together on the need for cooperation on water and power issues facing and affecting both agencies Advisory committee to initiate policy level dialogues between PCWA and NID Facilitate communication and outreach between Boards (7/6/2000 1 st meeting) ACWA-USA DIRECTORSHIP Nelson 4 th Thursday in March Nevada Power Authority (appointed by BOD) 2 nd Thursday in December Weber 2 nd Friday, bimonthly Mountain County Water Resources Association Miller (Nelson alternate) Ad Hoc Quarterly Placer County Water Resources Council Williams Nevada County Water Agency Advisory Council Assign as needed 1 st Tuesday/Month Project Review Williams February, March Weber April, May, June Miller July, August, September Drew October, November, December Appointed Director Weber as the Nevada Power Authority representative. M/S/C Wilcox/Miller Director Weber stated that she has a light schedule with regard to District Committees. She can be available if other Directors cannot attend their assigned Committee meeting. In response, Director Miller asked if Director Weber would like to attend the NID/PCWA Water Committee meeting scheduled for Thursday, January 22, 2009. Director Weber stated that she could attend this meeting. LOWER CASCADE CANAL / BANNER CASCADE PROJECT 50% Design Meeting Ron Nelson, General Manager, announced that on Thursday, January 15, 2009, between 3:00 p.m. and 6:00 p.m., a meeting will be held to discuss the 50% design for the Lower Cascade Canal / Banner Cascade Project. This meeting will be held at the Horsemen s Lodge. 17
MEETING ADJOURNED at 10:12 a.m., to reconvene in regular session on January 28, 2009, 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 18