NEVADA IRRIGATION DISTRICT BOARD OF DIRECTORS / JOINT POWERS AUTHORITY MINUTES March 13, 2013 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 13th day of March 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; Tim Crough, Assistant General Manager; Jim Malberg, Finance Manager; Gary King, Engineering Manager; Bill Morrow, Hydroelectric Manager; Brian Powell, Maintenance Manager; Chip Close, Interim Operations Manager; Peggy Davidson, Recreation Manager; Jeff Meith, District Counsel; and Lisa Francis Tassone, Board Secretary. EMPLOYEE RELATIONS New Employee Introduction, Drake Peggy Davidson, Recreation Manager, thanked the Board of Directors and Staff for authorizing new positions in the Recreation Division. She introduced Ryan Drake, Senior Park Ranger. Mr. Drake grew up in the state of Alabama and attended school in Florida and West Virginia studying recreation management. He has extensive background in recreation and has participated in six different camp settings. He moved to this area in 2004 after visiting a college friend that was getting married. Mr. Drake has two children, and enjoys spending time with his family, kayaking and camping. The Board and staff welcomed Mr. Drake to the District. EMPLOYEE RELATIONS New Employee Introduction, McKenzie Brian Powell, Maintenance Manager, introduced James McKenzie, Utility Worker I in the Placer Yard. Mr. McKenzie was born and raised in Penn Valley. He graduated from Nevada Union High School, and for many years he was involved in the Future Farmers of America. He had a grand champion lamb in 2010. Mr. McKenzie is also a certified climber and worked for a period of time in Texas erecting and stringing power lines. Luckily for the District, he did not like Texas, and moved back to this area. 38
The Board and staff welcomed Mr. McKenzie to the District. MINUTES February 27, 2013 Regular Meeting Approved the Minutes of the Board of Directors regular meeting of February 27, 2013, as submitted. M/S/C Weber/Drew WARRANTS Approved the following warrants: Yuba-Bear Revolving Fund Nos. 25324 through 25348, inclusive; General Fund Revolving Account Nos. 60636 through 60757, inclusive; Recreation Fund Nos. 3725 through 3738, inclusive; and Payroll Direct Deposit and Warrant Nos. 66693 through 66860, inclusive. M/S/C Weber/Drew HYDROELECTRIC DIVISION JACKSON MEADOWS RADIAL GATE PAINTING PROJECT Approved contract with Pacific Coatings Consultants and associated budget transfer for the Jackson Meadows Radial Gate Painting Project. M/S/C Weber/Drew CLAIMS & SUITS Ettlinger Rejected claim by Judith Ettlinger in the amount of $185.28. M/S/C Weber/Drew CLAIMS & SUITS Zwart Rejected claim by Yolanda Zwart in the amount of $865. M/S/C Weber/Drew CLAIMS & SUITS Marchinek Rejected claim by Peter and Crystal Marchinek in the amount of $8,050. M/S/C Weber/Drew CLAIMS & SUITS Miller Rejected claim by William and Shirley Miller for an unspecified amount. M/S/C Weber/Drew CLAIMS & SUITS Wambaugh Rejected claim by Jared and Vanessa Wambaugh in the amount of $1,301.14. M/S/C Weber/Drew DEPARTMENT OF BOATING AND WATERWAYS GRANT Jackson Meadows Woodcamp Boat Ramp Area (Res. No. 2013-05) Peggy Davidson, Recreation Manager, presented a recommendation from the Administrative Practices Committee to adopt a resolution authorizing Staff to submit a grant to the Department of Boating and Waterways for improvements to the Jackson 39
Meadows Woodcamp Boat Ramp Area. The grant is in the amount of $870,000 and would be distributed in 2014 and 2015. The grant would pay for a single lane boat ramp, a boarding float, a parking lot and a restroom. The Federal Energy Regulatory Commission (FERC) is requiring that the District make improvements to this area. If the District is not successful in obtaining the grant this year, Staff will reapply next year. She pointed out that there is no match for the grant. Adopted Resolution No. 2013-05 (Authorizing the Submittal of a Grant Application to the Department of Boating and Waterways for Improvements to the Jackson Meadows Woodcamp Boat Ramp Area). M/S/C Wilcox/Miller AWARD OF CONTRACT M2013-01 Lake Wildwood Water Treatment Plant Tank Painting Project Brian Powell, Maintenance Manager, stated that the contract is for exterior painting of Clearwell Tanks A and B. The contract is also for interior and exterior painting of Tank 1B and the pipe gallery next to the clearwell tanks. A painting project was done last year on the two clearwell tanks. The intent was to paint the inside and outside of those two tanks. When the tanks were being blasted, it was discovered that the rafters of the tanks were completely corroded in both tanks, and beyond repair. These tanks were installed in the 1970 s and have not been recoated since. The painters were pulled off the project and a company from Reno, NV was called in to remove the roof of both tanks and replace the rafters. The roof was put back on, and the painters returned to paint the tanks. The work that was done used up the remaining budget for 2012. Since Mr. Powell was planning on painting Tank 1B this year, he decided to budget for the exterior painting of Clearwell Tanks A and B. There was $200,000 budgeted for this year, and the low bid came in at $265,430. He is asking the Board to also consider a budget amendment to make up the difference. Director Drew asked if there is an intertie with the City of Grass Valley in this area. Chip Close, Interim Operations Manager, explained that the Lake Wildwood System is a stand-alone system with no interties, but the Loma Rica System does have an intertie with the City of Grass Valley. Director Wilcox asked where the money will come from for the budget amendment. Jim Malberg, Finance Manager/Treasurer, stated that there is $750,000 in the 2013 budget for pipeline replacement, and the amendment will be funded will a portion of that budget. Three bids were submitted to the District, and the results are as follows: 1 DESCRIPTION Lake Wildwood - Clearwell Tank A, B and Tank 1B REDWOOD PAINTING, PITTSBURG OLYMPUS & ASSOCIATES, RENO, NV RIVER CITY PAINTING, SACRAMENTO BUDGET $359,000 $298,000 $265,430 $200,000 40
Awarded bid to River City Painting in the amount of $265,430 for the Lake Wildwood Treatment Plant Tank Painting Project, approved the associated budget amendment in the amount of $65,430, and authorized the General Manager to execute the necessary documents. M/S/C Drew/Weber AWARD OF CONTRACT M2013-02 Osborne Hill Tank Painting Project Brian Powell, Maintenance Manager, stated that an inspection occurred on February 13, 2013 at the Osborne Hill Tank. The tank was built in 1988 and has the original paint. The inspection showed that there is delamination occurring and the paint is failing. The tank was inspected by divers in 2006, and the inspection showed that there were no problems. The tank cannot be put back into service until it is recoated and this work needs to be done before July 1, 2013. This tank is one of the largest tanks the District has and supplies a huge part of the District s demand. Director Wilcox asked where the money will come from for this unbudgeted project. Jim Malberg, Finance Manager/Treasurer, stated that in the 2013 budget, there is approximately $700,000 of contingency funds for these types of situations. The money for this project ($333,333) will come from the contingency funds. Three bids were submitted to the District, and the results are as follows: 1 DESCRIPTION Osborne Hill - Tank C REDWOOD PAINTING, PITTSBURG OLYMPUS & ASSOCIATES, RENO, NV RIVER CITY PAINTING, SACRAMENTO BUDGET $568,505.56 $385,000.00 $333,333 $0 Awarded bid to Redwood Painting Company in the amount of $333,333 for the Osborne Hill Tank Painting Project, approved the associated budget amendment, and authorized the General Manager to execute the necessary documents. M/S/C Wilcox/Weber RAW WATER MASTER PLAN Phase 2 (Without the Capital Improvement Plan) President Bachman commented that the Raw Water Master Plan is a very useful, informative document. Director Weber stated that the document is written in a very clear style and is well organized. Gary King, Engineering Manager, stated that the Raw Water Master Plan (RWMP) Phase 2 has been on hold for some time, but is now ready to be approved by the Board (without the Capital Improvement Plan). The RWMP is used for planning purposes and provides a model and guideline to prepare for the District s future. 41
Mr. King stated that the Engineering Committee has reviewed the document several times, and there have also been public meetings to discuss the document. Mr. King pointed out that sheet 4-4 has been revised by removing the South County Mutual Water Company because it is not a true mutual water company. Mr. King stated that the RWMP flows are used for culvert capacity analysis. Storm water flows are not considered in these analyses. Director Weber stated that there are recommendations in the RWMP, and she asked what the plans are for implementing the recommendations. She referenced page 5-19 with regard to inflows into Rollins Reservoir: It is recommended that the District investigate locating gages at these sites to better quantify flows in the future. Mr. King stated that when the previous master plans were approved, projects were included in the District s 10-year budget. When a project is included in the budget, the RWMP or appropriate plan is referenced in parentheses behind the project. Director Weber asked if the recommendations can be presented to the Engineering Committee. Mr. King stated that once the RWMP is approved, future projects will be proposed during the budgeting process which will be presented to the Engineering Committee and ultimately the Board of Directors for approval. Director Wilcox stated that the presumption would be that once Chapter 8 (capital improvement plan section) is adopted, this will establish a project list that, after a California Environmental Quality Act (CEQA) analysis, will be incorporated into the District s project planning process. Director Drew asked if the moratoriums on raw water services will be lifted now that the Lower Cascade Canal / Banner Cascade Pipeline Project and DS Canal Flume Replacement Projects are virtually completed. Chip Close, Interim Operations Manager, explained that the Operations Department is reviewing all canals at this time. The moratorium has been lifted on the DS Canal and the Cascade Canals and the branches that service these canals. However, other canals in the system are being reassessed. Director Weber stated that there is a whole series of recommendations regarding drought conditions. She referenced page 6-3 with regard to the Drought Contingency Plan: It is suggested that the District initiate drought contingencies based on projected annual runoff instead of the current practice of seasonal snowpack assessment. Mr. King stated that drought recommendations would be discussed with the Operations Department and included in District policies as appropriate. 42
Director Weber requested that a discussion on the drought contingency recommendation on page 6-3 be presented to the Water and Hydroelectric Operations Committee in April. Director Miller stated that he appreciates the revisions to sheet 4-4, but he thought the Committee agreed to add another color indicating the South County group be included as an interested group for raw water service. Mr. King stated that the RWMP is a living document, and changes will be made from time to time. Director Wilcox asked if Chapter 8 and the appendices can be provided to the Board. Mr. King stated that he will provide the Board with this information. Director Wilcox stated that he supports the idea of doing a full programmatic CEQA document on the RWMP update, and not to piece meal the projects. He understands that there are budgeting issues associated with doing a programmatic CEQA, but he thinks that this needs to remain a priority to keep the RWMP on track. Mr. King stated that this is Staff s goal. Director Miller stated that he would like to address the CEQA matter in a strategic planning session. He asked the President to consider planning such a session. President Bachman agreed that this would be an important topic for a strategic planning session. Director Wilcox stated that the capital improvement plan component of the RWMP is another important topic for strategic planning and goes hand in hand with the CEQA discussion. Approved the Raw Water Master Plan Phase 2 (without the Capital Improvement Plan). M/S/C Miller/Wilcox FEDERAL ENERGY REGULATORY COMMISSION (FERC) Land Use Issues Rem Scherzinger, General Manager, stated that Director Weber asked that he report out on the FERC land use issues that El Dorado Irrigation (EID) was faced with recently. FERC charges EID rent for land use as part of the project. He contacted Tom Cumpston, EID s General Counsel, and was told that FERC went into an abbreviated rule making process a couple of years ago, and they assumed that 100 percent of the appraised value of the property was to be levied against EID. EID responded by saying that FERC was out of line and that they needed to conduct the full rulemaking process. In that conversation, it was determined that 25 percent of the appraised value would be the amount that was levied against EID. EID has completed the rulemaking process. The benefit to Nevada Irrigation District is that the District is paying just under $500,000 each year for the District s land use. In this year and the following budget year, there is 43
$450,000 budgeted for this purpose. This number will increase in two years after FERC reappraises the lands that the District uses. WATER SUPPLY - Update Rem Scherzinger, General Manager, reported that the Water and Hydroelectric Operations Committee received a water supply briefing on March 12, 2013. The District has a little over 310,000 Acre Feet (AF) and are ahead of the drought contingency normal determination that occurs on April 1 of each year. In consultation with Staff, the District is storage rich and snowpack poor. It is early in the season, and the District will remain conservative with operations as irrigation season begins in mid April. BOWMAN RESERVOIR Update on Repair Rem Scherzinger, General Manager, reported that the weld repair has been executed at the bifurcation in the valve house. After that repair, about 20 psi of water was put into the system, and leakage was discovered along the seam of the pipe at the tunnel upstream. The pipe was dewatered and Pacific Gas and Electric Company (PG&E), HDR, and District Staff inspected and discovered a second leak further up the tunnel. The original fix is no longer appropriate. There are two other issues: 1) the 48-inch valve downstream of the fix is leaking, and 2) the 8-inch drain valve is leaking. A second repair must be executed, and Staff and HDR have prepared a tentative design and are working on finalizing the design. In discussions with the Federal Energy Regulatory Commission (FERC) and the Department of Safety of Dams (DSOD), the timelines they require to review the work are pushing into the District s ability to deliver water. As an alternative, Mr. Scherzinger stated that he will move forward with emergency work on an inlet structure that was abandoned in the 1980 s. This will allow water to be moved out of Bowman South down into the canal into Rollins Reservoir so the District can continue to make water deliveries. He will return to the Board with the contracts for approval. Currently, there is $400,000 budgeted for a gunite project, and this project will be placed on hold, so that these funds can be used for the emergency repair. The work on the Bowman tunnel project can take place while work is being done on the emergency repair of the inlet structure. ENVIRONMENTAL AND WATER RESOURCES INSTITUTE OF THE AMERCIAN SOCIETY OF CIVIL ENGINEERS Climate Change Water Adaptations at the Operational Level - 2013 Annual Symposium (Report by President Weber) Director Weber reported that she attended a Symposium on March 7, 2013 titled Climate Change Water Adaptations at the Operational Level hosted by the Sacramento Chapter of the Environmental and Water Resources Institute of the American Society of Civil Engineers. This Symposium focused on operational procedures. The keynote speaker was Rachel Jonassen who is an expert on climate change legislation and works as a consultant. Her approach was that there is a known shift in climate, and there is no need to argue how it occurred, but preparations must be made similar to preparing for earthquakes. There were three panels: 1) Federal and State agencies 44
and Non-Governmental Organizations; 2) Upstream Water Users; and 3) Exporters/In- Delta and Through Delta Water Users. One of the messages she took away from the Symposium is that climate change is migratory, and regulations are stationery. There needs to be changes in regulations. With regard to water year types, more emphasis needs to be placed on trends rather than specific years. A white paper will be presented to the Governor, and she will provide the Board with a copy when it becomes available. NATURAL RESOURCES CONSERVATION SERVICE (NRCS) Annual Dinner Director Drew reported that he attended the NRCS annual dinner on March 5, 2013. The event was well attended and most of the focus was on the long-term farmers and ranchers that have been in the area for over 100 years. There were many introductions including the Board of Supervisors, etc. He noted that there was no mention or acknowledgement of the District. PARKER DAM Discussion of Proposed Facility Director Drew stated that, after reviewing the Raw Water Master Plan and listening to Director Weber s comments regarding climate change, the District has not done any work on water storage for about 50 years. The District is sadly in need of more water storage facilities. He requested that discussions regarding the planning and building of Parker Dam be placed on future Board of Directors meeting agendas. Director Miller stated that part of the discussion should include comparing and contrasting raising Rollins Reservoir vs. building Parker Dam. Director Drew concurred. MOUNTAIN COUNTIES WATER RESOURCES ASSOCIATION (MCWRA) Legislative Committee Director Miller reported that he attended the MCWRA Legislative Committee meeting on March 5, 2013, and he will be attending the MCWRA meeting on March 15, 2013 in Auburn at The Ridge Country Club. The Legislative Committee raises some questions that he wants to pose to the Board. Director Miller has been engaging Rem Scherzinger, the District s new General Manager, and it has become evident to Director Miller that the Legislative Committee needs focus. The MCWRA has always been a gentleman s lunch club. About 18 months ago, the MCWRA changed. John Kingsbury, Executive Director, has tried to make more of the MCWRA, and the membership dues increased from $1,250 to $16,000 per year. The District is one of the largest contributors. Director Miller asked the Board if the District should help make the MCWRA successful. He does not want to be solely directing the District s General Manager to be working on these efforts. The goal for the MCWRA is to be a lobbying group with a Northern California perspective, and Mr. Kingsbury has done a good job trying to achieve this goal. 45
Director Miller stated that he and Mr. Scherzinger have been working on coming up with projects and one page handouts regarding bio-mass, mercury remediation, and 20 percent by 2020. Last year, Director Miller suggested that the Legislative Committee prioritize the legislative bills so that Mr. Kingsbury could use the priorities as his focus. Director Miller is asking the Board if Mr. Scherzinger s time should be spent on this type of work. Another issue is that Mr. Kingsbury is working more than his allotted time, and not collecting pay for the additional hours he works. Rather than increasing Mr. Kingsbury s hours, the MCWRA Board directed Mr. Kingsbury to limit what he is doing. Director Miller stated that if the Board wants MCWRA to be successful, he feels that the District should use the District s Staff time to assist MCWRA. Director Weber stated that MCWRA has a Technical Advisory Committee and she has been serving on this Committee for about a year. There is a small hydro workshop that is scheduled in the near future, and there is a list of five different topics for future workshops. She prepared a plan for education in the community about watersheds. El Dorado County Water Agency is implementing some of her plan. She feels the role of MCWRA is to raise awareness of the watersheds and other related water issues, such as the Water Bond, and protection of water rights. She thinks the MCWRA is a very effective organization, but she does not think that John Kingsbury can continue at the pace he is going. Director Miller reiterated his question about whether or not the District wants to assist MCWRA so that they can continue being a successful organization. He wants to make sure the Board is in agreement before asking the General Manager to put forth any effort to assist the MCWRA. He feels that this topic could be addressed in a strategic planning session. Rem Scherzinger, General Manager, agreed. After a strategic planning/goal setting session, he suggested placing this topic on the Maintenance and Resource Management Committee agenda to address the three priorities (bio-mass, mercury remediation, and 20 percent by 2020) and discuss an in-kind commitment on the District s behalf to pursue these priorities, or other legislative items of importance to the District. The Committee could then advance a recommendation to the Board of Directors for consideration. Director Miller stated that the strategic planning session can be used as a guideline for the Board and the General Manager. He asked what the date is for the strategic planning/goal setting session. Mr. Scherzinger stated that he is finalizing the consulting agreement, and hopes to have the process underway before the end of March or early April. Director Wilcox stated that he has heard that the Water Bond has been put off to the 2018 election, so the urgency is less than what it otherwise might have been. He personally would not want to place any more on Mr. Scherzinger s plate at this time. 46
Director Weber stated that the bio-mass item could be dealt with through the Technical Advisory Committee, rather than making it part of the general picture. Matt Young is organizing the Committee, and this could be one way of diverting some of Mr. Kingsbury s responsibilities. BEAR YUBA LAND TRUST - New Land Acquisition Director Wilcox reported that on March 8, 2013, he toured the Bear Yuba Land Trust s new land acquisition at the Garden Bar area. The property is beautiful, and the issue of the Garden Bar Reserve is very closely tied with the subject of Parker Dam. He noticed a large area that was badly overgrazed, and he believes that the Trust is working with Jim Gates to run his cattle in this area in a more sustainable fashion. LOCAL AGENCY FORMATION COMMISSION (LAFCo) Request for Nominations for Alternate Special District Member Director Wilcox stated that Hank Weston, Supervisor, Nevada County, contacted Director Wilcox to inform him that he would work with Director Wilcox to ensure that the District has a seat on the LAFCo Board. Mr. Weston encouraged the District to wait until the Special District Member seat is open before submitting a nomination, rather than submitting a nomination for the Alternate Special District Member seat. Director Drew pointed out that the District is the most significant member of the special districts and contributes a higher amount to help fund LAFCo s budget. He had asked for LAFCo to conduct an analysis to determine how to make the process more equitable. After some discussion, the Board decided to take no action at this time for the Alternate Special District Member, and to wait for a request for nominations for the Special District Member. THE UNION Introduction of New Reporter Director Wilcox introduced Matthew Renda, reporter for The Union newspaper who is now the reporter covering the District. Mr. Renda stated that he has many areas to cover, and he hopes to be able to attend as many District meetings as possible and to become conversant in the issues facing the District. He stated that he looks forward to working with the District. CLOSED SESSION was declared at 10:28 a.m. pursuant to Government Code Section 54956.8 to confer with Real Property Negotiators Scherzinger, Malberg, Morrow, Sindt and/or 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) 47
March 13,2013 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. CLOSED SESSION was declared at 10:28 a.m. pursuant to Government Code Section 54956.9(c) to confer with Legal Counsel - Potential Litigation: 1) Yuba County Water Agency vs. National Marine Fisheries Service, et al; and 2) South Yuba River Citizens League and Friends of the River vs. National Marine Fisheries Service, et al. i CLOSED SESSION was declared at 10:28 a.m. pursuant to Government Code Section 54956.9(a) to confer with Legal Counsel - Existing Litigation - Bingaman v. Nevada Irrigation District; Nevada County Case No. 78684. CLOSED SESSION was declared at 10:28 a.m. pursuant to Government Code Section 54956.9(b) to confer with Legal Counsel - Anticipated Litigation - Claim of George Loftus. MEETING RECONVENED in regular session at 11:17 a.m. MEETING ADJOURNED at 11:17 a.m. to reconvene in regular session on March 27, 2013, at 9:00 a.m. at the District's main office located at 1036 W. Main Street, Grass Valley, California. 1 Attest a true record of actions had and taken at the above and foregoing meeting our presence thereat and our consent thereto. toard Secretary 0. ^tltv Director Division Division UitL ^i <* Division V n 48