Regular Meeting of the Board of Directors (Open)

1. Call to Order of the Regular Meeting of the Board of Directors

The Board Chair will call the meeting to order if a quorum is present. Announcements by the Board Chair or Executive Director may be made at this time. Board members may make announcements at this time as well.

2. Public Comments

Opportunity for members of the public to address the Conservancy’s Board of Directors.

3. Approval of the minutes

All items listed under the Consent Calendar, including minutes, are considered and acted upon by one Motion. Any Board member may request an item be removed for separate consideration.

The Board Chair will request approval of the consent items and the minutes of the Board of Directors meeting of October 2, 2024.

Download the Conservancy’s signed October 2, 2024 Board meeting minutes (PDF, 7 MB)

4. Donation Policy

The Conservancy’s Donation Policy was last updated and approved by the Board of Directors on December 7, 2022. The Donation Policy was presented to the Board’s Compensation & Governance Committee for review with minor changes and adjustments. The Compensation & Governance Committee recommends the Board approve the Conservancy’s Donation Policy.

If you would like a copy of the document included in this item, please contact the Conservancy office.

5. Employee Handbook Update

The Conservancy’s Employee Handbook (Handbook) was last updated and approved by the Board of Directors on April 6, 2022. The Handbook was presented to the Board’s Compensation & Governance Committee for review with changes and adjustments as suggested by legal counsel, largely for updates in employment law.

Updates to the Handbook include:

1.) The Board-approved change to the SEP-IRA age threshold from 21 to 18 as previously requested by the Board (Resolution No. RS 23.06.02),

2.) arbitration, COVID-19, and bereavement for regulatory changes,

3.) modification to drug testing provisions to reflect operational practices, and

4.) the Injury and Illness Prevention Plan (IIPP) was removed and made a stand alone plan.

The Compensation & Governance Committee recommends the Board approve the Conservancy’s Handbook.

If you would like a copy of the document included in this item, please contact the Conservancy office.

6. Travel and Other Expense Reimbursement Policy

The Conservancy’s Travel and Other Expense Reimbursement Policy was last updated and approved by the Board of Directors on October 6, 2021. The Travel and Other Expense Reimbursement Policy was presented to the Board’s Compensation & Governance Committee for review, with minor changes recommended. The Compensation & Governance Committee recommends the Board approve the Conservancy’s Travel and Other Expense Reimbursement Policy.

If you would like a copy of the document included in this item, please contact the Conservancy office.

7. Board member Committee assignment

This item requests that new Board member Matthew DiGiacomo be appointed to the Finance Committee.

If you would like a copy of the document included in this item, please contact the Conservancy office.

8. Pedro Barn #2

At the October 2, 2024 Board meeting, Conservancy staff advised the Board of its plans to construct a second barn near the current Pedro barn on the Conservancy’s Betts tract. Conservancy staff intends to use the same contractor for the new hay barn on the Silva tract, which provides for economics of scale.

The barn will be approximately 2,200 square feet, similar in size to the current Pedro barn. It will cost approximately $155,000.00, including a 10% contingency.

This item requests Board authorization of the following:
1.) to spend approximately $155,000.00 for the new Pedro Barn #2, (it is anticipated that $17,500.00 will be paid in 2024 as a deposit and the remainder will be paid in 2025), and

2.) authorization to modify the 2024 and 2025 budgets as may be needed to reflect this expenditure, and

3.) this item also authorizes and directs either the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns, to take all actions deemed necessary or appropriate to implement this action.

9. Swainson’s hawk prey production site seeding

This agenda item requests Board ratification of purchase of a cover crop seed mix for portions of the Bennett North, Lauppe North, Nestor and Frazer South tracts in an amount not to exceed $30,000.00, and Board authorization to adjust the 2024 budget as may be needed to reflect this expenditure. This item also authorizes and directs either the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns, to take all actions deemed necessary or appropriate to implement this action.

10. Field services equipment

Conservancy staff has budgeted for the purchase of a backhoe in the 2025 budget to aid in field services operations. The projected cost, including implements, is approximately $180,000.00. Pending Board approval of the 2025 budget, this agenda item requests Board approval to purchase a backhoe in 2025 and authorizes and directs either the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns, to take all actions deemed necessary or appropriate to implement this action.

11. USGS GGS monitoring

At the June 5, 2024 Board meeting the Board approved a contract with U.S. Geological Survey in the amount of $57,175.21 for Giant garter snake monitoring (Resolution No. RS 24.06.12). This item requests an additional $3,000.00 for the HCP-required 2024 annual report and authorizes and directs either the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns, to take all actions deemed necessary or appropriate to implement this action.

12. Noxious weed abatement

Staff will brief the Board on tackling a problem of long-standing, and that is the proliferation of the non-native, noxious weed known as foxtail (Setaria spp). Foxtail is an annual grassy weed that can grow up to three feet tall and has a distinctive foxtail-shaped spike. It proliferates throughout the non-urbanized areas of the Natomas Basin and is known to be especially difficult to control.

Management determined that the Conservancy must proceed with control measures. Board ratification is requested in an amount not to exceed $27,000.00 in expenditures for foxtail control on selected Conservancy’s preserves. The strategy is to gain maximum control by using a pre-emergent herbicide in the impacted areas.

This agenda item requests:
1.) Board ratification for an expenditure not to exceed $27,000.00 to control foxtail on selected Conservancy’s preserves,

2.) authorizes and directs either the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns, to take all actions deemed necessary or appropriate to implement this action, and

3.) Board approval to adjust the budget as may be needed.

13. Unused/unclaimed mitigation land credits on the Tufts tract

This matter addresses a more than 15-year old outstanding mitigation land credit. Staff requests the Board’s review and approval to resolve this matter.

In 2004, Opus West (Opus) paid NBHCP mitigation fees on 295.9 project acres and dedicated the Tufts tract, 147.95 acres, to satisfy the land dedication portion of the fee. Opus used 63.116 acres of the mitigation land credits (126.23 development acres) for its shopping center project in Natomas.

In 2006, Opus sold 42.005 acres of mitigation land credits on the Tufts tract (allowing for 84.01 acres of development) to Griffin Industries. Griffin Industries paid catch-up fees on 84.01 acres and used the 42.005 acres of mitigation land credits.

In 2007, Opus sold 32.1075 acres of mitigation land credits on the Tufts tract (allowing for 64.215 acres of development) to Brookfield Land Co. These mitigation land credits remain unused and have been annually accounted for on the Conservancy’s books.

This leaves a remaining unused and unclaimed mitigation land credit on the Tufts tract of 10.7215 acres.

Opus filed for bankruptcy many years ago and the case closed in 2016. The bankruptcy records were reviewed by Conservancy legal counsel to see if these mitigation land credits were listed. No claims surfaced. Conservancy management also had conversations with Opus’ former project lead, who in turn communicated with the firm’s court-appointed successors. As a result, and given the passage of considerable time, Conservancy management recommends the Board act to reassign these mitigation land credits in Conservancy records from Opus to the Conservancy’s approved surplus acres account. These mitigation credits could then be used for new mitigation needs, just like other credits currently banked. These credits could be used for either NBHCP or MAPHCP projects, as originally approved by the Conservancy’s Board of Directors and the Wildlife Agencies in an NBHCP TAC meeting.

This item requests Board approval to:

1.) determine that the remaining Opus HCP mitigation land credits on the Conservancy’s Tufts tract of 10.7215 acres be declared abandoned and unassigned,

2.) add the newly unassigned 10.7215 acres to the Conservancy’s approved surplus acres listing to be used for either NBHCP or MAPHCP projects,

3.) designate the pre-paid mitigation fees of $184,924.43 as “special project” funds to be used for future projects to enhance HCP Covered Species, and

4.) authorize and direct either the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns, to take all actions deemed necessary or appropriate to implement this action.

14. MAPHCP mid-point review and adjustments

As reported at the June 5, 2024 Board meeting, the Metro Air Park Property Owners Association (MAPPOA), along with its consultant, has been working on the Metro Air Park Habitat Conservation Plan (MAPHCP) mid-point review, which is required in the MAPHCP. MAPPOA sent its draft mid-point review to the Conservancy for review this past summer. In the early days of MAPPOA’s annual reporting on mitigation activities, computer aided design (CAD) software was not used. For the MAPHCP mid-point review, MAPPOA switched to using CAD software for more accurate reporting. Based on the enhanced and more accurate GIS information, it has been determined that there are some mitigation overpayments and under-payments by HCP fee payers (fee payers). Conservancy staff reviewed the MAPPOA data and agreed with the revised numbers in the draft report. There are approximately 18 acres between eight fee payers that are impacted by this review.

Conservancy management proposes the following:

1.) Two fee payers (SMUD and Reyes Holdings) are owed a total of $8,005.30, representing less than one acre. Conservancy management proposes sending refunds to those two fee payers. In doing this the Conservancy would then restore approximately 0.114 acres to surplus mitigation land,

2.) Three fee payers (Target, Buzz Oates, and North Point) are owed $480,074.65 in mitigation fees and approximately 9.68 acres of mitigation land credits. Conservancy management proposes offering credits (both fee and land) to those three fee payers. The credits would be held until the fee payers use them. At time of use, the fee payers would pay a catch-up fee based on the then-current mitigation fee, and

3.) Three fee payers (Amazon, Badiee, and Phelan) owe the Conservancy $47,466.25. The Conservancy will bill fee payers to collect the amounts owed, but it may be unsuccessful, given the nature of how the HCPs work and the passage of time. If fees are collected, the mitigation acres will come from pre-approved surplus acres and be deducted accordingly.

This item requests Board approval for the following:

1.) Refunds: Offer to refund two fee payers (SMUD and Reyes Holdings) for overpayment and, whether accepted or not, the Conservancy restores 0.114 acres of surplus mitigation land.

2.) Credits: Notify three fee payers (Buzz Oates, North Point and Target) of overpaid mitigation fees, as well as mitigation land credits. The Conservancy will offer credits (both fee and land) to these fee payers. At time of use, fee payers will owe catch-up fees based on the then-current mitigation fee. Adjust Conservancy financial statements as may be necessary.

3.) Owed: Bill three fee payers (Amazon, Badiee and Phelan) to collect identified underpayments. This may be unsuccessful, given the nature of how the HCPs work and passage of time. However, if successful, the mitigation acres will be taken from surplus acres held by fee payers.

4.) Authorize and direct either the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns, to take all actions deemed necessary or appropriate to implement this action.

5.) Where settlement is best served through negotiation the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns are encouraged to seek the best outcome, and

6.) Board approval to adjust the budget as may be needed.

15. 2025 NBHCP Finance Model and 2025 budget

The proposed 2025 Conservancy budget is presented to the Board for adoption. A draft of the 2025 Conservancy budget was shared with the Board at the October 2, 2024 Board of Directors meeting for review and discussion.

The Conservancy’s proposed 2025 budget is integrated with the NBHCP Finance Model, so that the document submitted for action is one document. The consolidation of the two documents was introduced in 2007 with the intention of reducing the chance of differing budget numbers and because of the consistency it afforded.

The matter of reserves for property taxes has been a substantial issue for the NBHCP Finance Model calculation over the last several years. This year, the Conservancy made no change in the following assumptions with respect to the Williamson Act’s impact on Conservancy-held property:

The fee is substantially influenced by land prices. The recommended fee, as proposed by Conservancy staff, is supported by work done by Bender Rosenthal, Inc. (BRI), updated for 2025. BRI estimates the range for mitigation land acquisition in 2025 is $25,000 to $30,000 per acre. The NBHCP Finance Model presented assumes mitigation land acquisition at $27,500.

The price estimate for future-acquired mitigation land is based on an assumption contained in the NBHCP Finance Model. The NBHCP requires that the Conservancy purchase mitigation land within 12 months of demand. There are no exceptions or extensions provided for. So, the Conservancy’s estimate for mitigation land acquisition costs are based on a “looking forward” methodology.

The 2025 Conservancy Budget and NBHCP Finance Model are now submitted for Board acceptance, as is a request to the City of Sacramento and the County of Sutter to adopt the Finance Model’s indicated fee as follows:

The Board is asked to:

1.) approve the proposed 2025 Conservancy Budget;
2.) accept the 2025 NBHCP Finance Model recalculation, setting the NBHCP mitigation fee (full fee) at $47,031 per developed acre and the NBHCP mitigation fee with land dedication at $33,281;
3.) adopt a resolution to be submitted to the City of Sacramento requesting the above-noted draft NBHCP fee adjustments (see attached resolution);
4.) adopt a resolution to be submitted to the County of Sutter requesting the above-noted draft NBHCP fee adjustments (see attached resolution).

Download the NBHCP Finance Model update (PDF, 1 MB)

If you would like a copy of the documents included in this item, please contact the Conservancy office.

16. City of Sacramento Report

Report from the City of Sacramento regarding HCP-related activity and other topics.

17. County of Sutter Report

Report from the County of Sutter regarding HCP-related activity and other topics.

18. Financial Report

A financial statement will be provided for the period ended October 31, 2024 (unaudited). Additional financial information will be provided.

Download the Conservancy’s unaudited October 31, 2024 financial statements (PDF, 898 KB)

19. Managed marsh construction update

Staff will update the Board on the status of the planned managed marsh construction projects.

20. ECOS presentation

Environmental Council of Sacramento (ECOS) requested an opportunity to present to the Board of Directors on matters of urban growth.

21. Executive Director’s Report

Various matters for Board members’ general information will be presented by the Conservancy’s Executive Director.

If you would like a copy of the document included in this item, please contact the Conservancy office.

22. Adjournment of the Regular Meeting of the Board of Directors

Official adjournment of the Regular Meeting of the Board of Directors.

Upcoming Regular Meetings

• February 5, 2025
• April 2, 2025
• June 4, 2025