State of California Budget Amended and Reviewed

Transcription

1 NEVADA IRRIGATION DISTRICT BOARD OF DIRECTORS MINUTES November 30, 2011 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 30th day of November, 2011 at 9:05 a.m. Present were Nancy Weber, President; Nick Wilcox, Vice-President; John H. Drew, W. Scott Miller and Jim Bachman, Directors. Staff members present included Ron Nelson, General Manager; Tim Crough, Assistant General Manager, Marie G. Owens, Finance Manager/Treasurer; Gary King, Chief Engineer; John Kirk, Maintenance Manager; Peggy Davidson, Recreation Manager; Jeff Meith, District Counsel; and Lisa Francis Tassone, Board Secretary. EMPLOYEE RELATIONS Borlik Retirement (Res. No ) Adopted Resolution (Resolution of Appreciation upon Retirement Theresa J. Borlik) after 32 years of service to the District. M/S/C Wilcox/Miller EMPLOYEE RELATIONS Lovejoy Retirement (Res. No ) Adopted Resolution (Resolution of Appreciation upon Retirement Gregory B. Lovejoy) after 14 years of service to the District. M/S/C Wilcox/Miller EMPLOYEE RELATIONS Petroni Retirement (Res. No ) Adopted Resolution (Resolution of Appreciation upon Retirement Michael A. Petroni) after 32 years of service to the District. M/S/C Wilcox/Miller EMPLOYEE RELATIONS Seaton Retirement (Res. No ) Adopted Resolution (Resolution of Appreciation upon Retirement David Seaton) after 22 years of service to the District. M/S/C Wilcox/Miller 370

2 RESIDENTIAL FIRE SERVICE Option to Install Fire Service Meter Approved temporary method for adequately supplying water for a residential fire sprinkler system in addition to water for domestic demand by allowing the installation of a second meter used exclusively for fire demand, therefore, not collecting capacity fees. M/S/C Wilcox Miller MINUTES November 9, 2011 Approved the Minutes of the Board of Directors regular meeting of November 9, 2011 as submitted. M/S/C Miller/Drew WARRANTS Approved the following warrants: Yuba-Bear Revolving Fund Nos through 24194, inclusive; General Fund Revolving Account Nos through 56257, No being void; Recreation Fund Nos through 3100, inclusive; and Payroll Direct Deposit and Warrant Nos through 61407, inclusive. M/S/C Drew/Miller AUBURN RAVINE HIGHWAY 65 FISH PASSAGE IMPROVEMENT PROJECT Budget Amendment Gary King, Chief Engineer, explained that a budget amendment was presented to the Board on July 27, At that time, the Board chose to defer the budget amendment until an agreement was in place with Placer County. The Funding Agreement was approved by the Board with the amount of $405,000 being reimbursed to the District. Approved budget amendment in the amount of $950,000 for the Auburn Ravine Highway 65 Fish Passage Improvement Project. M/S/C Miller/Drew MOUNTAIN COUNTIES WATER RESOURCES ASSOCIATION (MCWRA) December Meeting Ron Nelson, General Manager, announced that the next MCWRA meeting is scheduled for Friday, December 9, He asked the Directors to let Staff know if they are interested in attending. President Weber stated that she will be attending the meeting. ASSOCIATION OF CALIFORNIA WATER AGENCIES (ACWA) Finance Committee Ron Nelson, General Manager, reported that he has been working with the Finance Committee that was assembled by the Vice-Chair of the ACWA Board of Directors. The Committee is focusing on going out to market with a bond issue to underwrite the projects in the proposed legislation of two years ago. Pieces of the legislation called for a bond sale. This was postponed due to market conditions, etc. ACWA is trying to position the water industry to support some level of financing for projects. 371

3 FEDERAL ENERGY REGULATORY COMMISSION (FERC) Relicensing Update Ron Nelson, General Manager, reported that he continues to participate in a robust schedule of meetings dealing with flows. A system-wide modeling of the post license flows will be conducted to determine the full range of impacts. There are continued discussions regarding recreation and what might be included in the new license for improvements or expansion of recreation. Mr. Nelson stated that FERC was asked by the District and relicensing participants to delay the issuance of a Ready for Environmental Analysis (REA). The REA kicks off a series of activities regarding environmental evaluations. Mr. Nelson stated that the District and participants feel that good progress is being made to solve issues. FERC stated that they will not delay the issuance of the REA (to be issued in December 2011), but they would be open to delaying the end of the REA process to allow time for additional work to resolve issues. FERC is very reluctant to defer any matters under the Integrated Licensing Process (ILP) because FERC wants to adhere to the time frames outlined in the ILP. COMBIE RESERVOIR Meeting with the Lake Combie Association Director Miller reported that he has been asked to attend the Lake Combie Association meeting this evening regarding terminal reservoirs. He stated that he will explain to the Association that the District is adhering to the Combie Lake Shoreline Management Plan, and that Combie Reservoir is not designated as a terminal reservoir. Director Wilcox stated that the District has submitted a report to the Department of Water Resources arguing that because of the flow-through characteristics of the Reservoir, Combie Reservoir should not be designated a terminal reservoir. The basis of the argument is that storage is so small, and the amount of water that flows through the system is so large that the Reservoir does not meet the criteria for a terminal reservoir. The Department of Water Resources has not responded to the report as of this date. WATER RIGHTS LAW CONFERENCE Director Drew reported that he will be attending the Water Rights Law Conference on December 8 and 9, in Sacramento. Meeting recessed at 9:25 a.m. and reconvened at 9:30 a.m. SAVE AUBURN RAVINE SALMON AND STEELHEAD (SARSAS) - Presentation Stan Nader, Board Member of SARSAS, stated that most of his life, he has been a farmer, so he is well acquainted with irrigation water which is what the District deals with every day. As a young boy growing up, Coon Creek went through the middle of his 372

4 family s ranch. He vividly remembers salmon coming up Coon Creek. SARSAS recently obtained a video from the former City Manager of the City of Lincoln who in 1988 lived along Auburn Ravine. The video demonstrates that salmon were spawning in Auburn Ravine near McBean Park. SARSAS knows that there have been salmon in the rivers in the past, and are working on returning the salmon to Auburn Ravine and eventually to Coon Creek. He thanked the Board of Directors for their commitment and willingness to be a partner with SARSAS in this effort. The completion of the Auburn Ravine Highway 65 Fish Passage Improvement Project is an example of the District s collaborative spirit. Jack Sanchez, President of SARSAS, stated that SARSAS is a 501(c)3 non-profit public benefit corporation whose mission is to return salmon and steelhead to the entire thirtythree mile length of Auburn Ravine. SARSAS is an all-volunteer organization, and has been in existence since October, He was born on the Auburn Ravine in Ophir, and still owns the property. When he retired in 2001, he took a close look at the Auburn Ravine, and realized that it was not the Auburn Ravine that he remembered while growing up. So, he established SARSAS who has an eight member Board of Directors. SARSAS works with many agencies and individuals in a collaborative manner to get salmon and steelhead back into the Auburn Ravine. He had a dream which turned into a vision, and the plan is SARSAS. Mr. Sanchez stated that below the City of Lincoln there were eight flash board dams (a dam that can be removed during a certain part of the year). None of the dams had been removed for a number of years. SARSAS met with the owners of the dams and asked the owners if they knew that the flash board dams should be removed on a specific date and put back into place on a specific date. The owners were not aware of the dates, but graciously complied. This kept salmon from dying. John Rabe, Board Member of SARSAS, stated that SARSAS operates in an entrepreneurial atmosphere. He ran figures, and if the labor being done by volunteers is calculated on an annual basis without workers compensation, etc., SARSAS would be running a payroll of approximately $330,000 per year. SARSAS has done a tremendous amount of documentation about salmon. At the turn of the century, there were salmon present. In 1907, fish were stacked side to side and bottom to top in pools and spawning areas, from Fowler Road to two miles above Gold Hill Road. SARSAS has also been able to have dialogue with individuals familiar with the River up to In 1986 or 1987, the salmon essentially disappeared. They were present, but in extremely small numbers. SARSAS stated that work was done at two sites on the Auburn Ravine that probably were major contributors to the decline in salmon. Interestingly, the steelhead has remained in the River. A month ago, he retrieved a dying steelhead (19 ½ inches long, three pounds) from behind his property. With the Project the District recently completed, salmon will be able to move up to the base of the Hemphill Dam. He explained several photographs of the Auburn Ravine, and the issues regarding salmon and steelhead being able to move up the Auburn Ravine. 373

5 Mr. Rabe stated that SARSAS has four water testing sites: 1) below the gauging station in Lincoln; 2) his property which is half way between Fowler Road and Gold Hill Road; 3) 2.3 miles above Gold Hill Road; and 4) just below the Auburn Wastewater Treatment Plant. There are ideal conditions for steelhead and salmon in these areas. Mr. Rabe stated that the District s Fish Passage Project is very much appreciated by SARSAS. Ron Nelson, General Manager, expressed concern regarding a title on one of the slides in SARSAS presentation. The word misaligned is not an accurate characterization. The District expected going in that there may be challenges installing the pre-cast panels, not knowing what the underlying geology is. Mr. Rabe stated that he appreciates Mr. Nelson s comments and fully agreed with him because he watched the day the panel was being installed, and it was clear that a major obstruction was hit. Mr. Sanchez stated that he can remember his mother and grandmother feeling that the District was not one of their favorite organizations. The District had a terrible reputation throughout his entire life, until the Board hired Mr. Nelson 9 years ago. Mr. Nelson has turned around the District s culture, and is one of the most capable individuals Mr. Sanchez has had the pleasure of working with. They do not agree on every issue, but they find a way to resolve concerns. The District is made up of nothing but quality individuals. Mr. Sanchez provided a list of agencies and individuals that SARSAS collaborates with. He thanked the Board for taking the time to hear a presentation by SARSAS. Director Wilcox asked what caused the salmon to disappear around He stated that the District s operations were consistent throughout that time period regarding the movement of water. Mr. Sanchez stated that SARSAS examined flash board dams below the City of Auburn (8 dams). He believes there was a lack of oversight by whatever agency was in charge to ensure the owners took out the flashboard dams. Many of the owners simply did not know that they had to take the flashboard dams out. In large part, the decrease in salmon was due to apathy and misunderstanding. Mr. Rabe explained that in studying the events that occurred in 1986, 1995 and 1997, there was some major damage done at two of the District s facilities. On one occasion, the fix was to install large boulders below the gauging station. This did not allow for any kind of resting pool. After one of the floods, there was a great deal of damage at the Hemphill. The work that was done at this location included extending the apron. This may well have been part of the reason for the decrease in salmon. 374

6 Director Wilcox stated that Auburn Ravine is used as a channel for downstream delivery. He is interested in SARSAS impressions on the adequacy of flow during the non-pg&e Canal outage period. Clearly, there is a problem when PG&E takes down the Canal for maintenance. Mr. Rabe stated that the flows are adequate for the fishery. Occasionally, in March, the Canal is dry. When the irrigation season begins, the flows are excellent and consistent. During the outage, flows are 1 to 1.5 cubic feet per second. Director Wilcox pointed out that the outage situation is an issue that the District is currently working on. Mr. Nelson added that the reason for a healthy habitat for both resident and anadromous fish is because of imported water. Director Bachman asked how salmon responds to sewage outflow from the Auburn Wastewater Treatment Plant. He believes this may be one of the reasons the salmon disappeared for a while. Mr. Sanchez stated that every few years there would be a total fish kill as a result of an operation of the Wastewater Treatment Plant. This was definitely a contributing factor to the decrease in salmon. However, the City of Auburn has brought their Plant up to state of the art. Water quality requirements are also getting much more stringent. Director Miller expressed his appreciation for the presentation. He stated that it would be helpful if a map was included in the presentation. Mr. Sanchez thanked the Board once again for partnering with SARSAS. In response to Director Wilcox s question regarding whether or not SARSAS focuses only on Auburn Ravine, Mr. Sanchez stated that when SARSAS s goal is obtained for Auburn Ravine, his organization will begin work on Coon Creek. Meeting recessed at 10:14 a.m. and reconvened at 10:22 a.m. 2011A REVENUE BONDS Water System Improvements and Refunding of 2002 Certificates of Participation Michael Kremer, Senior Vice President, First Southwest, provided the Board with the following information: Results from Competitive Sale (9:00 a.m. PT on November 30, 2011): The District received bids from seven (7) firms The Series 2011A Bonds were awarded to Hutchinson, Shockey, Erley & Co. with a Bid Total Interest Cost (TIC) of 3.697% 375

7 Bidder Name TIC Hutchinson, Shockey, Erley & Co Fidelity Capital Markets Morgan Stanley & Co., Inc Wells Fargo Bank, National Association Southwest Securities, Inc Stifel, Nicolaus & Co., Inc J.P. Morgan Securities, LLC Final Sizing of District s Series 2011A Revenue Bonds* Overall All-in Cost of 3.81% New Money Purpose: Finance a portion of the Lower Cascade Canal / Banner Cascade Pipeline Project - $20 million par amount; project fund deposit of $20.3 million - All-in Cost of 4.00%; $1.34 million in average annual debt service; total debt service of $32.37 million Refunding Purpose: Series 2002 Certificates of Participation (COPs) - 100% of callable maturities are advance refunded - $6.0 million issued to refund $6.1 million - Net Present Value (NPV) savings of $530,269 (8.66% of refunded par) Sources: Uses: New Money Refunding Total Par Amount $20,000,000 $5,970,000 $25,970,000 Premium / (Discount) 583, ,758 1,281,231 Total Sources $20,583,473 $6,667,758 $27,251,231 Acquisition Fund $20,264,201 $20,264, Escrow Fund $6,568,882 6,568,882 Cost of Issuance 142,472 46, ,573 Underwriter s Discount 176,800 52, ,575 Total Uses $20,583,473 $6,667,758 $27,251,231 *Subject to Verification Agent s review and SLGs subscription Director Wilcox asked how much the District saved by using the competitive sale versus the negotiated sale. Mr. Kremer stated that he will need to review other bond sales that occurred today, and provide this information to the Board when it becomes available. Director Wilcox thanked Marie G. Owens, Finance Manager/Treasurer, and Mr. Kremer for their efforts in achieving a favorable competitive sale. 376

8 Adjourned as the Nevada Irrigation District Board of Directors and convened as the Nevada Irrigation District Joint Powers Authority Board of Directors to discuss matters of the Joint Powers Authority. Adjourned as the Nevada Irrigation District Joint Powers Authority and reconvened as the Nevada Irrigation District Board of Directors to discuss matters of the District FINAL BUDGET Public Hearing Marie G. Owens, Finance Manager/Treasurer, provided a summary of the 2012 Budget as follows: Revenue: Water Division = $30,465,300 (50 percent) Hydroelectric Division = $11,823,100 (19 percent) Recreation Division = $ 1,204,200 (2 percent) Net Reserve Withdrawal = $17,975,200 (29 percent) Total = $61,467,800 Expenditures: Water Division = $48,440,500 (79 percent) Hydroelectric Division = $10,235,400 (17 percent) Recreation Division = $ 1,278,400 (2 percent) Deposit to Reserves = $ 1,513,500 (2 percent) Total = $61,467,800 ~~~~ Detailed revenue and expenditure budgets by division for 2012: Water Division Operation and Maintenance Revenue: Water Sales = $16,900,000 (69 percent) Treated and Raw Water Operating Revenue = $ 548,000 (2 percent) Non-Operating Revenue = $ 250,000 (1 percent) Net Reserve Withdrawal = $ 6,489,800 (28 percent) Total = $24,627,700 Water Division Operation and Maintenance Expenditures: Payroll Costs = $15,273,850 (62 percent) Services/Materials/Other = $ 8,636,550 (35 percent) Contingencies = $ 717,300 (3 percent) Total = $24,627,700 ~~~~ 377

9 Water Division Capital Revenue Summary: Assessments = $11,158,000 (47 percent) Capacity Fees = $ 300,000 (1 percent) Non-Operating Revenue = $ 1,004,300 (4 percent) Net Reserve Withdrawal = $11,350,500 (48 percent) Total = $23,812,800 Water Division Capital Expenditure Summary: Community Investment Program = $ 250,000 (1 percent) Debt Service = $ 4,320,700 (18 percent) Materials & Equipment Leases = $ 115,000 (0 percent) Consulting = $ 760,000 (3 percent) Contracts & Construction = $ 163,000 (1 percent) Trucks & Equipment = $ 1,143,000 (5 percent) Contingency = $ 645,200 (3 percent) Transfers from O&M = $ 1,660,900 (7 percent) Projects = $14,755,000 (62 percent) Total = $23,812,800 ~~~~ Hydroelectric Division Revenue Summary: Yuba-Bear Project = $ 7,856,800 (72 percent) Rollins Power Project = $ 1,981,300 (10 percent) Other NID Plants = $ 1,985,000 (18 percent) Total = $11,823,100 Hydroelectric Division Expenditure Summary: Yuba-Bear Project = $ 7,856,800 (66 percent) Rollins Power Project = $ 1,981,300 (17 percent) Other NID Plants = $ 1,985,000 (17 percent) Total = $11,823,100 ~~~~ Recreation Division Revenue Summary: Scotts Flat = $ 708,000 (61 percent) Rollins = $ 105,000 (9 percent) Orchard Springs = $ 289,000 (25 percent) Combie Lake = $ 28,000 (2 percent) Subsidy - Excess Hydro Revenue = $ 74,200 (3 percent) Total = $ 1,204,200 Recreation Division Expenditure Summary: Scotts Flat = $ 727,100 (60 percent) Rollins = $ 91,250 (8 percent) Orchard Springs = $ 304,700 (25 percent) Combie Lake = $ 12,950 (1 percent) Upper Division = $ 68,200 (6 percent) Total = $ 1,204,200 ~~~~ 378

10 Ms. Owens referenced the Budget and stated that she would like to point out amendments/clarifications. Page 13 of 132 Water Division Operating Revenue: Line 31 (Contributions from Other Agencies) includes $405,000 in 2012; Line 40 (Watershed Stewardship Reserve) includes $545,000 in These budgeted revenue amounts are for the Auburn Ravine Highway 65 Fish Passage Improvement Project. President Weber stated that she thought contributions from other agencies were $386,000. Ms. Owens stated that if this is the case, then the withdrawal from the Watershed Reserve will increase. Page 15 of 132 Directors (and other Departments): Gray highlighted areas in this Department (Directors) and in each of the other departments represent the salary and benefits for employees and Directors. None of the previous budgets had the final numbers. Page 18 of 132 Management (and other Departments): Pension premiums (each Department) were originally projected by CalPERS to be increased from 17.5% (2012) to 21% (2013) to 24% (2014). When she received the CalPERS retirement contribution notification, the increase from 17.5% increase did occur, but the increase for 2013 and 2014 were virtually identical to the 2012 projected rate. Health Insurance premiums (each Department) are based on the 2012 CalPERS Bay Area PPO rate. Page 37 of 132 Maintenance: Fish Screens/Passages has a budget in the amount of $950,000 (expenditures) for the Auburn Ravine Highway 65 Fish Passage Improvement Project. Ms. Owens stated that this amount might be moved to the Engineering Budget. She stated that the verdict is still out whether or not this expenditure is legitimately a capital expense. Staff will be having a discussion with the District s auditor. Page 42 of 132 Water Division Capital Revenue: Line 42 (new money - bond proceeds) in the amount of $20 million may change when she has final figures. Page 43 of Water Division Capital Revenue: In 2011, there is a deposit into the Operation, Repair and Replacement (ORR) Reserve in the amount of $20,431,000 because of the bond proceeds. At this time, she does not know if the District s bond reserve is still active. When the money is spent in 2012, a reserve withdrawal will be made from the ORR Reserve. In order for the Budget to be balanced, a transfer from the Hydroelectric Division in the amount of $3 million in 2013 to the Water Division Capital Budget, and $7 million in 2014 to the Water Division Capital Budget will need to be made. If the District proceeds with the Combie Phase I Project, a portion of the excess hydroelectric revenues generated from the new power purchase agreement will 379

11 partially pay for this Project. Additionally, more money will be deposited to the ORR Reserve to pay for Water Division Operations and Maintenance. Page 51 of 132 Water Operations - Capital: As discussed at a prior Board meeting, a correction was made to Purchase of Other Equipment. Additionally, the Water Treatment Plant Bleach/Tanks budgeted for 2011 in the amount of $300,000 is being carried forward to Page 53 of 132 Maintenance - Capital: The purchase of forklifts for the Maintenance Department ($50,000) and Shop Operations ($40,000) budgeted in 2011 will be carried forward to A budget amendment is also necessary in the amount of $300 to cover the purchase of the forklift for the Purchasing Department. Page 55 of Hydroelectric Division Actual Budget Summary for 2011: Net revenue is projected at $968,487 of which $500,000 will fund the Hydroelectric Relicensing Reserve; a budget amendment will be necessary to fund the Scotts Flat Penstock and Tunnel Seismic Analysis in the amount of $120,000; and $348,487 can fund the Water Division Capital Budget. Page 56 of Hydroelectric Division Amended Budget Summary for 2011: Net revenue is projected at $1,248,900 of which $36,500 will fund the Recreation Deficit; $500,000 will fund the Hydroelectric Relicensing Reserve; a budget amendment will be necessary to fund the Scotts Flat Penstock and Tunnel Seismic Analysis in the amount of $120,000; and $592,400 can fund the Hydroelectric ORR or Water Capital Reserves. Page 57 of Hydroelectric Division Budget Summary for 2012: Net revenue is projected at $1,587,700 of which $74,200 will fund the Recreation Deficit; and $500,000 will fund the Hydroelectric Relicensing Reserve, leaving $1,013,500 in the Hydroelectric ORR Reserve. Page 58 of Hydroelectric Division 2013 Budget Summary: Net revenue is projected at $5,128,451 of which $8,500 will fund the Recreation Deficit; $3 million will fund the Water Division Capital Budget; and $2,119,951 will fund the Hydroelectric Relicensing Reserve. Ms. Owens stated that she did not have the detailed analysis of the anticipated revenues to be generated under the new power purchase agreement when she prepared the Budget. The revenues should be broken down between the Yuba-Bear Project and the Rollins Power Project. The revised budget will have the correct breakdown (estimated that 24% of total revenue will be from the Rollins Power Project). Page 59 of Hydroelectric Division 2014 Budget Summary: Net revenue is projected at $11,536,200 of which $446,200 will fund the Recreation Deficit (primarily due to relicensing expenditures); $7 million will fund the Water Division Capital Budget; and $4,090,000 will fund the Hydroelectric Relicensing Reserve. Additionally, the revised budget will have the correct revenue breakdown between the Yuba-Bear Project 380

12 and the Rollins Power Project (estimated that 24% of total revenue will be from the Rollins Power Project). Ron Nelson, General Manager, explained that he expects that the District will have a successor coordinated operating agreement defined by early next year so it will be in place by the expiration of the existing agreement in Additionally, the new terms and conditions of the Federal Energy Regulatory Commission (FERC) license will probably not affect the District for several years after the expiration of the existing license. It takes FERC and the State between two and five years to issue a new license. In that interim period, the District will not have new conditions, but operate under existing conditions. Also, the District should have a power purchase agreement in place at the time of the expiration of the existing power purchase agreement. Page 70 of 132 Yuba-Bear Project Summary: The revised budget will have the correct revenue breakdown between the Yuba-Bear Project and the Rollins Power Project (estimated that 24% of total revenue will be moved to the Rollins Power Project). Director Bachman pointed out that the budgeted amounts for power generation are shown in the PG&E Yuba Bear Debt Service category instead of the Power Generation category. Ms. Owens agreed and stated that this correction will be made. Page 75 of 132 Rollins Power Project Summary: Ms. Owens will make amendments to the PG&E Expense Reimbursement for 2013 and 2014 when she has the information for the breakdown of revenues between the Yuba-Bear Project and the Rollins Power Project. There will be no more reimbursements to PG&E after July Mr. Nelson asked Ms. Owens to note that the District will need to prepare a budget for the Rollins Transmission Line. Page 84 of 132 Upper Division Recreation: A FERC required recreation facility rehabilitation is being budgeted in the amount of $425,000 in Page 93 of 132 Staffing Summary by Department: Total authorized positions in 2011 are 193. A total of positions have been frozen, and positions have been approved for None of the salaries or benefits of the frozen positions have been incorporated into the Budget. President Weber opened the public hearing. Hearing no testimony, President Weber closed the public hearing. Adopted the District s Final Budget as amended and corrected. M/S/C Wilcox/Bachman The Board complimented Ms. Owens on her presentation of the Budget. 381

13 CLOSED SESSION was declared at 11:59 a.m. pursuant to Government Code Section to confer with Legal Counsel - Existing Litigation Nevada Irrigation District v. Nevada City Sugarloaf Properties, LLC, Nevada County Superior Court Case No CLOSED SESSION was declared at 11:59 a.m. pursuant to Government Code Section to confer with Legal Counsel - Existing Litigation Nevada Irrigation District v. Mull, Nevada County Superior Court Case No CLOSED SESSION was declared at 11:59 a.m. pursuant to Government Code Section to provide direction to the District s designated bargaining representatives Nelson, Crough and District Counsel regarding 2011 salary/benefit/working conditions. MEETING RECONVENED in regular session at 1:17 p.m. COMPREHENSIVE MEMORANDUM OF UNDERSTANDING State of California Mediator s Recommended Settlement Jeff Meith, District Counsel, reported out of closed session that a motion was made by Director Miller, seconded by Director Drew, and carried unanimously approving the Mediator s Recommended Settlement with the $60 contribution to the Health Reimbursement Arrangement (HRA) accounts, and directed Staff to prepare implementing resolutions as needed for the Board to approve at the meeting of December 14, 2011, and to be effective December 14, BOARD OF DIRECTORS MEETING SCHEDULE December 2011 Director Drew made a motion to cancel the Board of Directors meeting scheduled for December 28, Director Bachman seconded the motion. Motion passed on the following roll call vote: Division I Division II Division III Division IV Division V Aye Aye No Aye Aye MEETING ADJOURNED at 1:19 p.m. to reconvene in regular session on December 14, 2011, at 9:00 a.m. at the District's main office located at 1036 W. Main Street, Grass Valley, California. Board Secretary 382

14 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 383