MINUTES. January 23, 2013

Transcription

1 NEVADA IRRIGATION DISTRICT BOARD OF DIRECTORS / JOINT POWERS AUTHORITY MINUTES January 23, 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 23rd day of January 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 Tim Crough, Interim General Manager, Jim Malberg, Finance Manager; Gary King, Chief Engineer; Brian Powell, Maintenance Manager; Chip Close, Interim Operations Manager; Anthony Soares, District Counsel; and Lisa Francis Tassone, Board Secretary. PUBLIC COMMENT - Dutra Kathleen Dutra, District customer, stated that she is a homeowner in Auburn and an owner of a condominium in Auburn Greens. She is also a member of the Board at Auburn Greens. In these trying times, the Auburn Greens Board of Directors has been looking into how to save money for the owners and tenants of the Auburn Greens. When she was paying her bill one day, she noticed that $35.68 per residence is being charged for each building that contains four condominiums. She added that she pays this much for her home (one residence). For the months of October and November, 2012, the charge for water for the four condominiums (one building) was $45.89 which is divided by four. Added to this charge is the $35.68 meter fee for a total bill of $ She is not complaining about the charge for water, and she realizes it is costly to deliver water these days, and the District does a fine job. However, she does not understand why each condominium pays a meter fee at the same rate as one residence. She asked the Board to evaluate this situation and consider lowering the meter fee to $10 per unit. This would be in the realm of understanding of what the actual cost is to run the meter. Tim Crough, Interim General Manager, stated that he and Chip Close, Interim Operations Manager, will discuss this matter with Ms. Dutra and will bring proposed solutions to the Water and Hydroelectric Operations Committee and/or the Administrative Practices Committee. 9

2 PUBLIC COMMENT - Frank Marianne Frank stated that she is also an owner of a condominium in the Auburn Greens and a new Board member. She stated that she is not complaining about the water. She stated that with these economic times and low incomes, it would be nice if the District would consider alleviating at least a part of the meter charge. HEALTH REIMBURSEMENT ARRANGEMENT (HRA) Update (Adding Item to Agenda) Jim Malberg, Finance Manager/Treasurer, explained that on January 1, 2013, the District implemented the new health insurance premium which means that the District pays the minimum contribution and increases the contribution to employee/retiree HRA accounts. The HRA account balances were not received from Flex Plan until late last week, after the agenda was posted. The sense of urgency is that the next contribution to Flex Plan for February is due January 25, 2013, so Staff is asking that the Board consider adding this matter to the agenda. Agreed to add an item to the agenda regarding an update to the District s Health Reimbursement Arrangement (HRA) accounts. M/S/C Miller/Weber MINUTES January 9, 2013 Regular Meeting Approved the Minutes of the Board of Directors regular meeting of January 9, 2013, as submitted. M/S/C Drew/Weber ANNUAL DISCLOSURE OF REIMBURSEMENT (Res. No ) Adopted Resolution No (Annual Disclosure of Reimbursement to Employees and Directors). M/S/C Drew/Weber CEMENT HILL COMMUNITY FACILITIES DISTRICT (CFD) No Annual Report Upon Staff s request, this item was removed from the agenda and will be placed on the next Board of Directors meeting agenda. RODEO FLAT ASSESSMENT DISTRICT (AD) No Annual Report Upon Staff s request, this item was removed from the agenda and will be placed on the next Board of Directors meeting agenda. DISTRICT TRAINING/SEMINARS Government Finance Officers Association (GFOA) Annual Conference Approved two budget amendments allowing up to four Accounting Department employees to attend Government Finance Officers Association Annual Conference in San Francisco, CA. M/S/C Drew/Weber 10

3 DISTRICT TRAINING/SEMINARS Operator Training Approved request for training to allow one Hydroelectric Division employee to attend three training sessions of Operator Training at the Pacific Gas & Electric Company facility in San Ramon, CA during March and April 2013, in the amount of $11, (plus meals, books, lodging and parking). M/S/C Drew/Weber DISTRICT TRAINING/SEMINARS Info Water Training Course Ratified training request for Chief Engineer to attend Info Water Training Course held November 13 and 14, 2012, in the amount of $1,400. M/S/C Drew/Weber WARRANTS Approved the following warrants: Yuba-Bear Revolving Fund Nos through 25228, inclusive; General Fund Revolving Account Nos through 60307, inclusive; Recreation Fund Nos through 3677, inclusive; and Payroll Direct Deposit and Warrant Nos through 66363, inclusive. M/S/C Weber/Drew Discussion ensued regarding membership dues paid for employees by the District. This has been a topic that has been discussed in the past, and Director Miller asked what the status is regarding payment of membership dues. Tim Crough, Interim General Manager, stated that memberships have been included in the 2013 budget. He stated that he is not aware of the Board taking any action regarding whether or not the District continues paying membership dues. It has been the past practice of the District to pay for memberships/licenses. In order for this to change, the matter would need to be negotiated with the labor organizations because they are considered benefits. Director Weber stated that there has been discussion about this matter and the intent was to have memberships/licenses included in the job descriptions and that the employee would be required to pay the dues for those memberships/licenses. This is the case with most jobs. She has been a teacher and credentials are required, and the teacher pays for these credentials, not the employer. She added that having the dues/memberships be the responsibility of the employee was repeatedly brought up during labor negotiations. She was informed that it would not be dealt with during labor negotiations, because it was being dealt with in the job description amendment process. Director Miller stated that he had been employed with Kaiser and Sutter Hospitals and the memberships were paid by the employer. Director Weber stated that hospitals are private, but education is public, and this is why there is a different standard. When she was a nurse, she had to pay for her credentials. Director Weber stated that she keeps hearing that the District has to cut water rates and has to stop raising the rates. She will not be interested in discussing stabilizing rates 11

4 unless costs can be cut. If a District employee is a professional, that employee can afford to pay for memberships/licenses. This is her individual bias. Director Weber stated that she has a list of items that she is saving for the new General Manager, and she would like to suggest that a workshop be scheduled to discuss cost cutting measures. FINANCIAL DONATION OR SUPPORT Requests from Various Non-Profit Organizations Tim Crough, Interim General Manager, stated that several requests for donations/contributions were presented to the Administrative Practices Committee. The Committee did not make a recommendation, so the matter has been advanced to the Board of Directors for consideration. One request by Tech Trek was added to the Staff Report because it came in after the Committee met. The District s existing contribution/donation policy has been included in the agenda packet for the Board s reference. Mr. Crough pointed out that there was discussion by the Committee that proponents of the donations or contributions should make a personal appeal to the Board. Requests received: Sierra Fund for a sponsorship donation in support of their Legislative Reception to be held on Monday, February 4, 2013 Sierra Business Council donation in support of their projects Nevada County Economic Resource Council (ERC) for an Annual Partner Investment California Water Awareness Campaign Support Payment Family Water Alliance, Inc. donation request for various levels of support Tech Trek for a sponsorship of the science and math camp for girls District Contribution Sierra Fund $500 Sierra Business Council $500 Economic Resource Council $0 CA Water Awareness Campaign $0 Family Water Alliance, Inc. $0 Tech Trek $425 Director Miller stated that he recognizes that it is difficult to say no to a request for a donation. However, he does not know if it is the District s mandate to make donations. Director Drew agreed, but stated that the community is served by the District s assistance. He suggested making donations once a year with a cap of $7,500, instead of dealing with each request individually. He added that he is not interested in contributing to the Economic Resource Council this year. With regard to Tech Trek, this request is from an organization representing young girls. If the District is going to make

5 a contribution to this type of organization, then the District should also consider making a donation to an organization that represents young boys. Director Miller suggested making contributions to the agriculture programs at local high schools. He agreed with Director Drew s statement regarding the Economic Resource Council. Mr. Crough pointed out to the Board that the District is partnering with Sierra Fund on a grant application. Director Weber asked if the California Water Awareness Campaign is a subsidiary of the Association of California Water Agencies (ACWA). If so, she pointed out that the District already pays membership dues to ACWA. Director Weber disclosed that she is a friend of Izzy Martin, Chief Executive Officer of the Sierra Fund. Sierra Fund s purpose is to clean up toxic mine waste and they have quite a degree of involvement with the District on this matter. She stated that she has invitations for the Board of Directors to the event that Sierra Fund is hosting to celebrate the newly appointed Director of California State Parks and newly elected Assembly Member. Director Wilcox stated that the Sierra Fund has gone to bat for the District and has lobbied at the Capitol to secure funding for the District s Mercury Project. He would agree to make a donation to the Sierra Fund and the Sierra Business Council. From personal experience, he does not have a great deal of respect for the Family Water Alliance, Inc. because the members are only looking out for their own water supply. With regard to Tech Trek, he likes the idea of supporting young women in science fields. Science fields have tended to be male dominated. There is a great deal of talent within the female population that is potentially missed. He would recommend that the District support the Sierra Fund and the Sierra Business Council at the 2012 levels, and he is open to supporting Tech Trek. He would not support the remaining requests for contributions/donations. He added that he does not have a problem with the District making donations to the community because the District receives taxes from the community. Discussion ensued regarding the District s existing policy. Director Miller suggested that Staff provide an updated draft to the Administrative Practices Committee reflecting that the District will distribute donations/contributions once a year, the total amount to be distributed, and how the money is to be distributed. Anthony Soares, District Counsel, recommended that the Board maintain the introductory paragraph of the policy because it serves as the guideline for donations/contributions. Mr. Crough stated that he would like input from the new General Manager, so this matter will be placed on the agenda for the Administrative Practices Committee in March

6 Approved making a donation to the following organizations: Sierra Fund in the amount of $500; Sierra Business Council in the amount of $500; and American Association of University Women (Tech Trek Program) in the amount of $425; and directed Staff to present an amended policy regarding contributions/donations to the Administrative Practices Committee. M/S/C Drew/Weber CONSULTING AGREEMENT Ron Nelson (Adding Item to Agenda) Director Miller stated that he has reviewed Ron Nelson s contract that had come to light to this Board, and he has several questions. He was going to bring his questions up under Directors Reports, but felt this matter might be appropriate for closed session. The urgency for adding the matter to the agenda is because Mr. Nelson may have already begun work. Anthony Soares, District Counsel, stated that the safest approach is to discuss this matter in open session. Agreed to add an item to the agenda regarding a review of the consulting agreement between the District and Ron Nelson, with possible action. M/S/C Miller/Weber Director Weber stated that when this matter is discussed, she would like a copy of the consulting agreement because she left her copy at home. RESERVE BALANCES AND INVESTMENT REPORT Jim Malberg, Finance Manager/Treasurer, stated that Director Weber has made requests in the past to review reserve balances and cash balances. Mr. Malberg distributed an unaudited schedule of cash reserve balances and a schedule of cash. The schedule of cash is a listing of the various accounts that the District has and the balances within those accounts. A summary of the schedule of cash reserve balances is as follows: Water (Fund 10) $19,153, Recreation (Fund 30) 2, Hydro (Fund 50) 4,432, Designated Reserves 16,619, Restricted Reserves 17,258, $57,466, Director Weber stated that she would appreciate a description of the monies that can go into specific reserve accounts and the monies that can be taken out. Mr. Malberg stated that he will be providing the reserve definitions to the Administrative Practices Committee when the reserve policy will be discussed, and this information will be available when the Board discusses the reserve policy at a future workshop. 14

7 Director Weber asked how much of the Other Post Employee Benefit (OPEB) will be paid this year. Mr. Malberg stated that the estimated OPEB liability for 2012 is $2.2 million. This number may change when a new actuarial report is completed. Director Wilcox asked if the District s recent purchase of the campgrounds came out of the Watershed Stewardship Reserve. Mr. Malberg responded affirmatively and explained that an adjustment to several reserves need to be paid before he can provide any reserve balance information to the Administrative Practices Committee and ultimately the Board of Directors in the near future. Director Weber stated that she would like to review the District s debt in addition to reserves when this matter comes back to the Board of Directors. HEALTH REIMBURSEMENT ARRANGEMENT (HRA) ACCOUNTS - Update Jim Malberg, Finance Manager/Treasurer, explained that on January 1, 2013 the newly negotiated Health Insurance Premium and HRA Account benefits became effective for all retired and active District employees. As part of the transition of the District making the minimum contribution to CalPERS and increasing the amount of the deposits into the HRA, Staff did not apply the maximum balance (CAP) calculation to the HRA contributions for the month of January as discussed with the Board of Directors at the December 12, 2012 Board of Directors meeting. The CAP amounts are as follows: $4,000 for retired employees $4,720 for employees that have employee only coverage or have declined coverage $8,720 for employees with dependent coverage The current situation is that there are 21 retirees and 67 active employees and Directors that have exceeded their CAP. In order to implement the CAP amounts agreed upon in the Memorandum of Understanding (MOU), Staff is recommending the following administrative actions: 1. Implement temporary CAP amounts that include the individual s CAP as listed above plus one month of health insurance premium up to the amount agreed upon in the MOU for the months of February and March Send a letter to all retired and active employees (including Directors) that have exceeded the CAP advising them that they have been temporarily allowed to exceed the CAP amount and need to submit all outstanding reimbursement claims by Friday March 1, 2013 in order to utilize any balance above the CAP. 3. Beginning in April 2013, reestablish the CAP amounts as agreed upon in the MOU and adjust HRA account contributions accordingly. 15

8 Director Weber asked why there would be no budgetary impact. Mr. Malberg explained that the benefits have been budgeted for in the 2013 Budget, so there will be no additional expense. Approved increasing caps to HRA account contributions temporarily until March 31, 2013 for active and retired employees. M/S/C Wilcox/Weber CONSULTING AGREEMENT Ron Nelson Director Miller stated that the District has entered into a contract with Ron Nelson as a consultant. There was discussion about the contract at the last Board meeting. When he actually read through the contract, it seemed a little different than what was discussed at the last Board meeting. He does not know if the contract needs to be amended per the Board s discussion because the contract was written prior to the Board s discussion. Director Miller expressed concern over the hourly rate, charges for travel time, potential scope creep and attendance at the Yuba Salmon Forum meetings. Tim Crough, Interim General Manager, explained that the intent of the Agreement is to provide the services the District needs from Mr. Nelson on an average of eight hours per week. This is not written in the agreement, but this was the basis of the discussion he had with Mr. Nelson. Some weeks may require Mr. Nelson to attend two meetings, so a cap of 64 hours per month was included in the Agreement. The Agreement is for six months which would result in a contract in the amount of $28,000 to $32,000. The General Manager s authority is $100,000, but more importantly, the services are to be performed on an as needed basis under the direction of the General Manager. It would be the General Manager s decision whether or not Mr. Nelson should attend certain meetings. The General Manager can limit the scope but he cannot increase the scope unless there is mutual agreement. Mr. Crough referenced the Scope of Work (Exhibit A of the Agreement). The first item is to provide strategic and tactical support for Yuba-Bear relicensing. Staff has decided to limit this work to aquatics and recreation. This is where the relicensing team requires the extra support from Mr. Nelson for a six month period. The next item in Exhibit A is to attend relicensing meetings as necessary. Mr. Crough stated that Mr. Nelson would not attend all of the relicensing meetings. Mr. Crough stated that Mr. Nelson would be paid for his commute time. He added that the District also pays Legal Counsel and other consultants for commute time. Director Wilcox pointed out that District Counsel is paid a different rate for travel. Anthony Soares, District Counsel, stated that his firm is paid dependent on the project. To attend a District Board meeting, the District pays District Counsel $60 per hour. During litigation, the rate increases to $265 per hour. Mr. Crough stated that he discussed with Mr. Nelson what services he is actually needed for, after discussing this with Staff. Mr. Nelson s participation will include 16

9 negotiations for the acquisition of the Deer Creek Power House, South Yuba Canal and related facilities, and the Successor Coordinated Operating Agreement. Mr. Nelson will only be involved in these matters on a limited basis. The Coordinated Operating Agreement is approximately 98 percent complete. Mr. Nelson would participate in a minor role with regard to negotiations for the acquisition of the Pacific Gas & Electric Company s facilities. Mr. Crough stated that it was his understanding, based on prior direction from the Board, that the Board wanted Mr. Nelson to attend the Yuba Salmon Forum meetings. Mr. Crough stated that the Board may direct him or the new General Manager to modify or terminate the Agreement. If this is the pleasure of the Board, he needs the Board to direct him accordingly. Director Weber stated that the scope of work should be revised to reflect what the Board discussed at the last meeting. Director Miller stated that the scope would be limited to providing strategic and tactical support for aquatics and recreation for relicensing. Attending the Yuba Salmon Forum would not be necessary. Director Weber asked where it states in the Agreement that the Agreement will expire in six months. Mr. Crough referenced Item 6 of the Agreement. Director Drew stated that the Yuba County Water Agency is pretty involved with the salmon. He stated that the Yuba Salmon Forum is special right now. He agreed with Director Miller and stated that it is questionable whether the District needs to show up right now. Director Drew stated that the Agreement is fine with him as long as the Interim General Manager or the new General Manager is monitoring the hours. The contract is defined enough. Director Wilcox stated that the danger of participating in the Yuba Salmon Forum too much is that it might give the idea that the District has responsibility in the Lower Yuba River. Mr. Soares reviewed the contract and stated that the Agreement can be terminated with 15 days notice. The Agreement can be amended. The District can present the amendments to Mr. Nelson who will have the option to say yes or no. If he says no, the Board can terminate the Agreement. Director Miller stated that he would like to amend the commute time, and limit the scope to the first bullet. 17

10 Director Wilcox pointed out that the second bullet (attend relicensing meetings as necessary) goes along with the first bullet. Director Wilcox stated that he thinks the reason the Board contemplated this Agreement was the fact that Mr. Morrow has made it plain that he is planning on retiring in June 2013, and there are a number of things relating to the FERC license that have to happen before that time. Mr. Morrow s time is going to be of the essence. To have him dealing with recreation and aquatics is not a good use of his time. President Bachman stated that in his opinion, Mr. Nelson is a very valuable asset, and he thinks that the Board would be foolish to cut him off. He thinks that Mr. Nelson should be available, and President Bachman has enough faith in Mr. Crough and Mr. Nelson s integrity that they would not take advantage of us. The Board would be foolish not to use Mr. Nelson s services as need be. This is his opinion. He pointed out that there is still a great deal of work that needs to be done. Director Drew stated that it would be fair to say that the Board has expressed its concerns to the Interim General Manager on this matter. The top three bullets in Exhibit A of the Consulting Agreement with Ron Nelson should receive top priority. The Yuba Salmon Forum is out and Director Miller s concern about the District paying Mr. Nelson $150 per hour for commuting to meetings should be discussed. Mr. Crough should have a discussion with Mr. Nelson and report back to the Board. Director Weber stated that she thinks it is a good thing that we re doing this. She hopes that nobody sees this as a personal matter. The Board needs to have oversight for some of these contracts. MOUNTAIN COUNTIES WATER RESOURCES ASSOCIATION (MCWRA) Technical Advisory Committee Director Weber reported that she is working with a special committee of the MCWRA - the Technical Advisory Committee. She announced that MCWRA will be conducting an all day workshop on small hydroelectric projects on March 22, 2013 at El Dorado Irrigation District, and the fee will be $25 (includes lunch). CLOSED SESSION was declared at 10:39 a.m. pursuant to Government Code Section to confer with Real Property Negotiators Nelson, 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) 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. 18

11 r CLOSED SESSION was declared at 10:39 a.m. pursuant to Government Code Section (b) to confer with Legal Counsel - Anticipated Litigation - Claim of George Loftus. CLOSED SESSION was declared at 10:39 a.m. pursuant to Government Code Section (a) to confer with Legal Counsel - Existing Litigation - O'Sullivan and Weyman v. Nevada Irrigation District; Nevada County Case No CLOSED SESSION was declared at 10:39 a.m. pursuant to Government Code Section 54957: Public Employee Performance Evaluation - Interim General Manager. MEETING RECONVENED in regular session at 12:20 p.m. CLAIMS & SUITS-Loftus With regard to the claim of George Loftus, the Board rejected the claim in part, returned the claim in part as untimely, and denied the application for leave to present a late claim. M/S/C Drew/Miller r MEETING ADJOURNED at 12:20 p.m. to reconvene in regular session on February 13, 2013, 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. Board Secretary Director Division I 19