NEVADA IRRIGATION DISTRICT BOARD OF DIRECTORS / JOINT POWERS AUTHORITY MINUTES February 11, 2015 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 11th day of February 2015 at 9:00 a.m. Present were W. Scott Miller, President (Division III); Nancy Weber, Vice-President (Division I); John H. Drew (Division II), Jim Bachman (Division IV) and Nick Wilcox (Division V), Directors. Staff members present included Rem Scherzinger, General Manager; Tim Crough, Assistant General Manager; Mary A. Morris, Finance Manager; Chip Close, Operations Manager; Gary King, Engineering Manager; Brian Powell, Maintenance Manager; Jeff Meith, District Counsel; and Lisa Francis Tassone, Board Secretary. REAL PROPERTY NEGOTIATIONS Closed Session (Adding Item to Agenda) Rem Scherzinger, General Manager, stated that he would like to add a closed session item to the agenda pursuant to Government Code Section 54956.8 to allow the Board to meet with its real property negotiators to consider acquisition of one parcel of real property and to authorize price and terms of payment. The availability of this parcel arose after publication of the agenda, and the terms must be settled before the next meeting of the Board. Added a closed session item to the agenda pursuant to Government Code Section 54956.8 to allow the Board to meet with its real property negotiators to consider acquisition of one parcel of real property and to authorize price and terms of payment. Drew/Weber, MINUTES January 28, 2015 Regular Meeting Approved the minutes of the regular meeting on January 28, 2015. M/S/C Drew/Weber, 16
WARRANTS Approved the following warrants: Yuba-Bear Revolving Fund Nos. 27197 through 27248, No. 27079 being void; General Fund Revolving Account Nos. 67606 through 67727, inclusive; Recreation Fund Nos. 4728 through 4746, No. 4736 being void; and Payroll Direct Deposit and Warrant Nos. 71024 through 71030 and V4154 through V4328, inclusive. M/S/C Drew/Weber, FUND SIGNATURE AUTHORIZATION (Res. No. 2015-04) Adopted Resolution No. 2015-04 (Fund Signature Authorization District Bank and Investment Accounts). M/S/C Drew/Weber, POLICY: Administrative Policies Budget Amendment Authority Levels and Records Retention (Res. No. 2015-05) Adopted Resolution No. 2015-05 (Establishing Policies for Administration Budget Amendment Authority Levels and Records Retention). M/S/C Drew/Weber, BUDGET AMENDMENTS FOR 2014 CARRYOVERS Approved Budget Amendments reducing the 2014 Budget by $323,000 and increasing the 2015 Budget by $323,000. M/S/C Drew/Weber, unanimously approved JOB DESCRIPTIONS Facility Ranger Approved new job description for the Facility Ranger position in the Recreation Department. M/S/C Drew/Weber, AGREEMENTS: No Spray Agreement Approved implementation of the No Spray Agreement. M/S/C Drew/Weber, Director Weber requested a copy of the letter that will be mailed to the property owners regarding the new agreement. Brian Powell, Maintenance Manager, stated that he is in the process of preparing the letter and will ensure that the Directors receive a copy. NORTH AMERICAN ELECTRIC RELIABILITY CORPORATION (NERC) 2014 Self- Certification Status Report Submittal Received and filed the Nevada Irrigation District 2014 Self-Certification Status Report prepared in compliance with the NERC and Western Electricity Coordinating Council (WECC) reporting requirements. M/S/C Drew/Weber, 17
CLAIMS & SUITS Brewer, Martin, Moran, Warren, Files, Rowan, Walsh, Carpenter- Watson, Towers, Richardson, Dudley, Conragan and Gentz) Denied claims by Brewer, Martin, Moran, Warren, Files, Rowan, Walsh, Carpenter- Watson, Towers, Richardson, Dudley, Conragan and Gentz of the Valley View Subdivision to refund payments relating to the replacement of road culverts at the Bogdanoff Lateral Canal and the Lateral 1 South Canal. M/S/C Drew/Weber, SERVICE FEES 2015 Director Wilcox requested that this matter be pulled from the consent agenda because he has a question. In reviewing the list of service fees, he noticed a disparity between the late charges for treated water (3 percent) and raw water (10 percent). He asked why there is such a difference. Monica Reyes, Customer Account Administrator, explained that these late charges have been assessed for at least 19 years. Irrigation customers are billed two to three times each year, and the treated water customers are billed six times each year. This is the basis for the difference. Further, irrigation bills are typically larger than treated water bills. Approved and adopted the District s 2015 Service Fees. M/S/C Wilcox/Drew, AWARD OF CONTRACT M2015-01 Snow Mountain Tank Painting Project Brian Powell, Maintenance Manager, is requesting the Board to award a contract to Olympus and Associates, Inc. in the amount of $444,600 for the Snow Mountain Tank Painting Project. There are two tanks located at the old Snow Mountain Water Treatment Plant in Nevada City with a total capacity of 1.6 million gallons. Prior inspections indicate that the tanks need to be repainted, both inside and out. The District requested bids from five contractors and received three bids. Bid results are as follows: Company Bid Amount Olympus and Associates, Inc. $444,600 Farr Construction Corp. $493,500 Paso Robles Tank, Inc. $597,000 Mr. Powell noted that $500,000 was included in the 2015 Budget for the Snow Mountain Tank Painting Project. Director Drew stated that it appears that the last coating was done about 17 years ago. He remembered Mr. Powell stating before that there has been an improvement in the coating process. He asked if the tanks have to be encapsulated while the old coating is being removed. 18
Mr. Powell responded in the affirmative. The material is captured, put into barrels and hauled to the appropriate facility. He added that tank painting is getting more and more expensive each year. Director Drew asked if the tanks are made of steel. Mr. Powell stated that the District has 42 steel tanks in the system. For the past 15 years, the Maintenance Department has been working on a program to recoat the District s tanks on a systematic basis. The Department is nearing the end of the program. There are two tanks remaining in the system that have to be repainted, and this should occur next year. After that, there will be a new inspection program in place to repair and paint only individual spots of corrosion instead of full blasting and recoating the entire tank. This will be possible because of better quality materials and installation since this program began in 1999. While it will be necessary to occasionally blast and recoat the tanks, the method of regular inspections and spot repair should drastically reduce the overall cost of maintaining the tanks. Director Drew asked if liners for the tanks have been considered. Rem Scherzinger, General Manager, stated that liners are not as effective as coating the tanks. Director Wilcox stated that Staff will need to budget each year accordingly for the maintenance of these tanks. Awarded Contract No. M2015-01 to Olympus and Associates, Inc. in the amount of $444,600 for the Snow Mountain Tank Painting Project, and authorized the General Manager to execute the necessary documents. M/S/C Wilcox/Bachman, GOVERNOR S DROUGHT DECLARATION Rem Scherzinger, General Manager, reported that in December 2014, the Governor extended the emergency drought declaration to May 2016. What this means is that the State Water Resources Control Board (SWRCB) can continue its emergency mandate and maintain some of its functions within. On February 4, 2015, the SWRCB issued an informational order requiring all license holders in the Sacramento watershed to provide pre-1914 and riparian water rights information regarding statements of use. The District is currently working with the Northern California Water Association (NCWA) to develop a response to SWRCB s request. HEMPHILL FACILITY Update Rem Scherzinger, General Manager, reported that he met with the California Department of Fish and Wildlife (DFW) on February 10, 2015 regarding the District s Lake and Streambed Alteration Permit 1602 for the Hemphill Structure. The DFW is in the process of reviewing the permit and have requested a 30-day extension. It would appear that after talking with senior staff that the DFW intends to suspend the permit 19
which means that the District will not be allowed to do any of the rock work along the base of the facility. Mr. Scherzinger stated that during the past two years, the District has spent approximately $100,000 trying to improve fish passage at the facility. The District intends on conducting an options analysis of the Hemphill facility and will be sending out Requests for Proposals for that work in the second quarter of this year. He will be participating in a tour of the District s gaging station, Hemphill and Gold Hill on February 13, 2015. PROPOSED WATER STORAGE PROJECT Update Rem Scherzinger, General Manager, reported that he met with Assemblyman Dahle and members of his staff to tour the District s proposed Water Storage Project and to discuss the benefits of the Project. They indicated their support. Mr. Scherzinger informed the Board that the survey data is in house and looks fantastic. The draft hydrology has been reviewed and the first cut clearly demonstrates sufficient water supply. Mr. Scherzinger reported that he is in the process of setting up a meeting with South Sutter Water District to discuss the proposed Project. In March, the award of the geotechnical contract for the Project will be presented to the Board of Directors. GRASS VALLEY ROTARY Presentation Rem Scherzinger, General Manager, reported that he provided a presentation to the Grass Valley Rotary regarding District projects and the drought situation. SPECIAL DISTRICT LEADERSHIP FOUNDATION Leadership Academy Rem Scherzinger, General Manager, reported that the attended the Special District Leadership Foundation Leadership Academy in Napa, CA. The Academy was very well done, and if there is an opportunity, he encouraged the Directors to attend. NEVADA COUNTY BOARD OF SUPERVISORS Strategic Planning Session Rem Scherzinger, General Manager, reported that he provided a presentation on the District s storage and supply issues for the Nevada County s Board of Supervisors Strategic Planning Session. LOCAL AGENCY FORMATION COMMISSION (LAFCo) Tour Rem Scherzinger, General Manager, reported that the District is preparing a tour for the California LAFCo Staff Conference on April 15 at the Scotts Flat facility and at Empire Mine. Those in attendance will see the Scotts Flat Project, and if the powerhouse is 20
shut down, there will be an opportunity to tour this facility. In addition, the mercury equipment will be on display. NEVADA COUNTY RESOURCE CONSERVATION DISTRICT Annual Dinner Rem Scherzinger, General Manager, reported that he will be providing a presentation at the Nevada County Resource Conservation District Annual Dinner on March 3, 2015. He will focus his presentation on the District s involvement and history with agriculture. BIOMASS PROJECT Grant Update Rem Scherzinger, General Manager, reported that the District has received the full amount of grant funds for the Biomass Project in the amount of $125,313. FOREST MANAGEMENT PLAN Award of Grant Rem Scherzinger, General Manager, reported that the District has been awarded the Forest Management Plan grant from CalFire pursuant to the agreement with the Forester s Coop. CHILI CRAWL Rem Scherzinger, General Manager, announced that the Chili Crawl (cook-off) is scheduled for March 18, 2015 between 1:00 p.m. and 3:30 p.m. There will be several stations located in various maintenance buildings so that employees, retirees, and Directors can mingle and view these work areas. Kristi Kelly, Management Assistant, has been gracious enough to donate one of her vacation days for the grand prize. WATER STORAGE Update Chip Close, Operations Manager, reported on the District s water storage as follows: Water Condition Update: District storage remains above average for this time of year Presently at 78 percent of total reservoir capacity Reservoir Storage: As of February 10, 2015, storage equals 202,000 acre feet which is 78 percent of capacity Precipitation: Precipitation amounts at Bowman are above last year, but below normal Precipitation total at 92 percent of average for this time of year Bowman Lake Precipitation: As of February 10, 2015, precipitation equals 37.61 inches, which is 92 percent of average Snow Survey: First Snow Survey February 1 well below average 21
- 6 inches of water content (average is 20 inches) - Recent storms rained on what snow was left State Water Condition Update: Statewide drought is not over Governor has extended the drought declaration State Board is requesting further information on pre-1914 water rights If the remainder of the year remains dry, curtailments could be expected again District s Status: District s Resolution of Drought remains in place - Will continue to request a 20 percent reduction in water usage for all customers Irrigation water applications will be sent out next week - Applications request voluntary reductions in service for 2015 District will continue historic practice of being conservative with storage Continuing weekly water management meetings with PG&E and PCWA Too early to make a determination on a drought stage for the 2015 irrigation season Director Weber asked if any District reservoirs spilled during the last storm. Mr. Close stated that Staff proactively managed Rollins Reservoir by producing power through the storms to manage water levels. He does not believe any reservoirs spilled, but Rollins came very close. Director Wilcox asked if the 20 percent reduction is based on the previous year s baseline. The District cannot ask the public year after year to save 20 percent over the previous year. Conservation is wonderful, but after awhile, conservation savings are very hard to achieve. Mr. Close stated that Director Wilcox raises a good point. The reduction will be based on an average year s baseline. Director Wilcox asked if there was agricultural water conservation in the last year. Mr. Close stated that there was a reduction in agriculture water last year in the amount of approximately 5,000 acre feet. He noted that the reduction included additional new sales last year so the agriculture customers have made a great effort to reduce their water use. Director Wilcox stated that as climate change hits us harder and harder and there are extended droughts, the District cannot manage the system solely by applying demand side actions. Director Weber stated that there has been discussion in past Water Rates Committee meetings about a program where the District might assist with equipment that would require less water use for agriculture customers. This needs to be revisited. 22
Rem Scherzinger, General Manager, stated that the Board directed him to evaluate supporting the agriculture customers. The District is in the process of working with National Resources Conservation Service (NRCS) on the EQUIP grant. He stated that the District is exploring fronting the grant funds and recovering those funds from the agriculture customers at a later date. Director Wilcox stated that it seems to him that this type of program would be similar to the District s waterline extension program. With the waterline extension program, the District is fronting funds so that neighborhoods can build water systems, and these property owners pay back the District. He does not see why the District could not develop a similar program for agriculture customers. Mr. Close ended his report by stating that the last storm event yielded an average of seven inches of precipitation in the upper alpine, and the overall addition to storage from the event was approximately 18,000 acre feet. CLIMATE CHANGE COALITION Presentation Director Wilcox reported that he has been asked to provide a presentation to the Nevada County Climate Change Coalition at their meeting on February17, 2015. STATE WATER RESOURCES CONTROL BOARD (SWRCB) Correspondence Director Wilcox reported that the District has received a letter from the SWRCB dated January 22, 2015 formally accepting the District s water rights application and formally assigning the State filing 5634 to the District for the purpose of building the proposed water storage project. MOUNTAIN COUNTIES WATER RESOURCES ASSOCIATION (MCWRA) MEETING (The Complete Story) Report by Directors Weber, Drew and Wilcox Director Weber reported that the regional conference hosted by the MCWRA was held on February 6, 2015. There were a number of speakers that participated on a panel. One of the topics of discussion was the Water Bond. There seems to be an effort to work together. She has a copy of the California Water Plan (mountain counties area) and stated that it is good reading that pertains directly to the District. MCWRA has also created a folder with some basic information about the Sierra Nevada Watersheds. Personally, she feels that this is the grandest event that has occurred with MCWRA. MCWRA is a very active lobby now that is dealing with the legislature. Director Drew stated that Senator Jim Nielsen spoke and his comments on the water rights curtailment were interesting. He looked at those in the audience from the Department of Water Resources and indicated that great power has been put in their hands and will affect many lives. The Department should exercise this power very cautiously. 23
Director Wilcox stated that the water planning efforts are interesting because these efforts are transitioning more into the hands of the stakeholders. Director Weber s copy of The California Water Plan Mountain Counties Chapter is one of 150 hard copies that exist, and there will be no others. The Department of Water Resources is not publishing the State Water Plan in paper format any longer; however, the document can be downloaded. The document was written by the stakeholders and handed to the Department of Water Resources, so the document is not really the State s take on the mountain counties region. It is an advertisement and a plea for the State to invest more money into mountain counties. The document is biased and does not necessarily represent the opinion of the State or the Department of Water Resources. Director Weber stated the document is a supreme effort by the stakeholders in the mountain counties, and will have a tremendous influence. Director Wilcox stated that he would agree. Finally, we are sticking up for ourselves. The basic point of the document is we are the area in which the water originates. There is enormous economic value provided to the rest of the State by the mountain counties, and mountain counties receive very little in return for that value. Rem Scherzinger, General Manager, stated that the fact that the Department of Water Resources has accepted the document condones that the mountain counties overlay does exist, and funding can be obtained for this overlay. Director Wilcox stated that Jim Chatigny, former District General Manager, was a tremendous champion by letting the State know that the mountain counties must be considered as an overlay region. Director Weber noted that the MCWRA meeting is available in video format on the MCWRA s website. PUBLIC COMMENT Curtis Cody Curtis, member of the public, stated that he works on farms in the area and he would like to make public a collective will and aspiration of the community to produce some or more of our own food locally and create a local food system. He is aware of the challenges with water allocations in this County and the State at large. He thanked Director Weber for sharing information at the Food and Farm Conference and other venues. He extended his voice and those of others to support and partner with the District because a local food system is entirely contingent upon water supply. CLOSED SESSION was declared at 9:53 a.m. pursuant to Government Code section 54956.9 to confer with District Counsel regarding (1) pending litigation appeal of adverse listing and function assignment to the North American Reliability Corporation Compliance Registry and (2) potential litigation Power Purchase Agreement dispute with PG&E. 24