Regular Meeting Board of Directors

December 7, 2022

4:00 pm

This will be a hybrid meeting, meaning in-person (1st floor conference room) and virtually via Zoom. Select to attend the December 7, 2022 meeting via Zoom Or call 1 (669) 900-6833, webinar ID 862 2515 8782

  • Executive Session (closed session) 4:00 p.m.
  • Public Session (open session) 5:00 p.m.
Meeting facilities are accessible to persons with disabilities. If you require special assistance to participate in the meeting, notify the Conservancy’s office at (916) 649-3331 at least 48 hours prior to the meeting.

Upcoming Regular Meetings

February 1, 2023

April 5, 2023

June 7, 2023


Executive Session (Closed session)

Executive Session

Executive Session is scheduled for real estate matters pursuant to Government Code 54956.8.


Regular Meeting of the Board of Directors (Open session)

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.


Action by consent

3. Approval of consent items including 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 minutes of the Board of Directors meeting of October 5, 2022 and consent items.

Download the Conservancy’s October 5, 2022 Board meeting minutes (PDF, 149 KB)


Action by consent

4. Authorization for Farm Air to utilize landing strip on TNBC’s Bianchi West tract

The only remaining agricultural aircraft operator in the Natomas Basin is Farm Air Flying Service, Inc. TNBC and its tenants use Farm Air, and without the firm operating in the Basin, costs would likely rise, and delays in planting crops could also result. (Rice is frequently seeded by air.) Farm Air has requested permission to use TNBC’s portion of the Bianchi West tract landing strip for use in serving its customers, including TNBC and its tenants. Before acquiring the Bianchi West tract, TNBC completed Phase One and Phase Two environmental testing on the airstrip. This was done in order to ascertain the level, if any, of toxicants in the soil at the landing strip site. (The studies revealed acceptable levels, so TNBC moved forward with its acquisition of the tract.) With this baseline data, TNBC can keep track of the status of soils on and around the runway. Staff requests authorization to enter into an agreement with Farm Air Flying Service, Inc. to allow it to utilize TNBC’s portion of the Bianchi West landing strip. The authorization would include the following restrictions, among others:

  1. the authorization terminates December 31, 2023,
  2. only seed and fertilizer are permitted to be used on the landing strip,
  3. no pesticides may be used on the strip without the written authorization of TNBC’s Executive Director,
  4. only in-Basin sites may be served by Farm Air from the landing strip, and
  5. a properly executed agreement must be in TNBC’s office prior to Farm Air’s use of the landing strip, and that the agreement contain TNBC’s standard indemnification, hold harmless protections, and that TNBC be named as an additional insured on the relevant Farm Air insurance policy or policies.

The Executive Director expects no authorization request for pesticide use on the landing strip. However, there could be special occasions that might warrant such authorization, but only for the use by TNBC or its contractors and tenants.


Action by consent

5. Reclamation District 1000 security contract with Brookman Protection Service, Inc.

Since 2006 Reclamation District 1000 (RD 1000) has contracted with Brookman Protection Service, Inc. to provide Basin-wide security services. The Natomas Central Mutual Water Company and the Conservancy contribute to that effort. In the past the Conservancy has contributed up to $20,000 per year as its share of security costs, payable to RD 1000. Staff requests approval for 2023 service not to exceed $20,000. (This is included in the 2023 budget presented in this agenda.)


Action by consent

6. Reclamation District 1000 Board of Directors election ratification

The RD 1000 Board of Directors election was November 8, 2022. Voters elected Jag Bains, Ed Perez and Elena Lee Reeder. This item requests Board ratification of the Conservancy’s votes.


Action by consent

7. Natomas Central Mutual Water Company Annual Meeting of shareholders

The annual election of Directors of the Natomas Central Mutual Water Company (NCMWC) takes place on February 14, 2023, at 10:00 am, location to be announced. The Conservancy holds 3,973 shares of stock in the Company (out of approximately 30,720). Conservancy staff recommends that votes be cast for candidates familiar with the NBHCP and sensitive to the Conservancy’s view of land holding and water rights in perpetuity. This action authorizes the Conservancy’s Executive Director to vote the Conservancy’s shares in the Conservancy’s interest.


Action by consent

8. Compensation & Governance Committee Charter

The Conservancy’s Compensation and Governance Committee Charter was last updated on August 7, 2019. This policy is presented for Board review and approval with minor changes and adjustments.

Download the proposed changes to the Conservancy’s Compensation & Governance Committee Charter (PDF, 66 KB)


Action by consent

9. Document Retention and Destruction Policy

The Conservancy’s Document Retention and Destruction Policy was last updated on August 7, 2019. This policy is presented for Board review and approval with minor title changes and adjustments.

Download the proposed changes to the Conservancy’s Document Retention & Destruction Policy (PDF, 113 KB)


Action by consent

10. Donation Policy

The Conservancy’s Donation Policy was last updated on August 7, 2019. This policy is presented for Board review and approval with minor changes and adjustments.

Download the proposed changes to the Conservancy’s Donation Policy (PDF, 135 KB)


Action by consent

11. Internal Financial Controls Policy

The Conservancy’s Internal Financial Controls Policy was last updated on December 6, 2021. This policy is presented for Board review and approval with minor changes and adjustments.

Download the proposed changes to the Conservancy’s Internal Financial Controls Policy (PDF, 109 KB)


Action by consent

12. Tree watering

The existing land maintenance contract was approved by the Board of Directors on October 7, 2020 (Resolution # 20.10.03) with Triangle Properties Inc. Due to the recent retirement of its long standing watering contractor, the Conservancy would like to return the tree watering task to the land maintenance agreement. This item requests an amendment to the original land maintenance agreement in the amount of $22,320.00 ending December 31, 2023, with an option for two one-year extensions, at the discretion of the Conservancy. This item requests that the Board authorize the Executive Director or Chief Financial Officer to execute and deliver a tree watering amendment to the Triangle Properties current land maintenance contract.


Action by consent

13. Audit of 2022 financial statements

Conservancy management met recently with Gilbert CPA’s to review fiscal year 2022 and all the activity that has occurred. Near the conclusion of the meeting the senior partner informed us that with all the additional activity this year, Gilbert requested an additional $2,000.00 to its contract for the 2022 audit. This item requests Board approval to increase Gilbert CPAs contracted amount for the 2022 audit from $26,500.00 to $28,500.00.


TNBC Action Item icon

14. 2023 NBHCP Finance Model and 2023 budget

The proposed 2023 Conservancy budget is presented to the Board for adoption. A draft of the 2023 Conservancy budget was shared with the Board at the October 5, 2022 Board of Directors meetings for review and discussion.

The Conservancy’s proposed 2023 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:

  1. The State of California’s Williamson Act subventions to counties remains unfunded or largely unfunded in this and future State budgets.
  2. Counties with which the Conservancy has Williamson Act contracts (Sacramento and Sutter) make no additional change to existing contracts.
  3. Counties permit no newly-acquired properties to be enrolled in Williamson Act contracts and to enjoy the property tax benefits such participation affords.
  4. All new properties acquired by the Conservancy for HCP mitigation purposes enjoy no Williamson Act property tax protection and are assessed at their full value at the time of acquisition.
  5. Sutter County’s Williamson Act contracts are reduced by 10 percent.

The fee is substantially influenced by land prices. The recommended fee, as proposed by Conservancy staff, is supported by work done by Stephen Harrington, MAI, updated for 2022. Harrington estimates the range for mitigation land acquisition in 2023 is $30,000 to $33,000 per acre. The NBHCP Finance Model presented assumes mitigation land acquisition at $31,500.

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, while appraisal valuations are typically based on recent historical valuations.

The 2023 Conservancy Budget and NBHCP Finance Model are now submitted for Board acceptance, as is a request to the City of Sacramento to adopt the Finance Model’s indicated fee as follows:

  • The NBHCP mitigation fee for 2023 is recommended to increase from $43,968 per developed acre in 2022 to $45,565 per developed acre.
  • The NBHCP mitigation fee with land dedication for 2023 is recommended to increase from $27,718 per developed acre in 2022 to $29,815 per developed acre.

The Board is asked to:

  1. approve the proposed 2023 Conservancy Budget;
  2. accept the 2023 NBHCP Finance Model recalculation;
  3. adoption of a resolution to be submitted to the City of Sacramento requesting the above noted NBHCP fee adjustments (see attached resolution);
  4. adoption of a resolution to be submitted to the County of Sutter requesting the above noted NBHCP fee adjustments (see attached resolution).

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

Download the NBHCP mitigation fee recommendation to the City of Sacramento (PDF, 40 KB)

Download the NBHCP mitigation fee recommendation to the County of Sutter (PDF, 40 MB)


Discussion

15. City of Sacramento report

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


Discussion

16. County of Sutter Report

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


Discussion

17. Financial statement review

A financial statement will be provided for the period ended October 31, 2022 (unaudited). Additional financial information will be provided.

Download the Conservancy’s unaudited October 31, 2022 financial statements (PDF, 1 MB)


18. Executive Director’s Report

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

Download the Conservancy’s Executive Director’s Report (PDF, 504 KB)


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

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