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 minutes and consent items of the Board of Directors meeting of August 7, 2024.

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

4. Audit Committee Charter

The Conservancy’s Finance Committee Charter (Charter) was last reviewed by the Audit Committee on June 1, 2022. The Charter was presented for Committee review with minor changes and adjustments as suggested by legal counsel.

The Audit Committee recommends the Board approve the proposed changes to the Conservancy’s Audit Committee Charter.

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

5. Corporate credit card changes

Currently, the Conservancy has two corporate credit cards via River City Bank (Card Assets), each with a $10,000.00 limit. This item requests Board approval for an additional corporate credit card for the Field Supervisor also with a $10,000.00 limit.

Request: This item requests Board approval to add a new corporate credit card for the Field Supervisor with a $10,000.00 limit, and authorize and direct either the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns, to take all action deemed necessary or appropriate to implement this change.

6. Internal Financial Controls Policy

The Conservancy’s Internal Financial Controls Policy was last updated and approved by the Board of Directors on October 4, 2023. This policy was recently presented to the Audit Committee for review with minor changes and adjustments, most notably is the addition of a new corporate credit card for the Field Supervisor.

The Audit Committee has reviewed the policy and recommends the Board approve the proposed changes to the Conservancy’s Internal Financial Controls Policy.

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

7. Managed marsh renovation

This item requests ratification of a Service Agreement with Westervelt Ecological Services for the supplemental topographic surveys for the Bennett North marsh development projects. In order to facilitate preparation of engineering drawings and a bid package, this service agreement needed to be executed prior to the Board meeting.

This agenda item requests Board ratification of $26,771.00 for the above supplemental survey work 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.

8. Barn project update

Introduction. Staff will share with the Board the changes proposed in association with the BKS tract barn replacement project.

Background. The Conservancy’s pole barn and large dairy barn on the Silva tract were felled by high winds. These facilities provided shade for workers and equipment, in the summer, as well as from rain and cold winds in the winter. They also provided weather-protected storage space for equipment and occasional native grass hay.

The Board previously approved (Resolution No. RS 23.06.03) construction of a replacement barn. This was to be funded in large part by insurance proceeds received for the storm damage loss as well as with additional funds. The concept was to include space for a field services office in the replacement barn with a cooling center, break room, eye wash facility, safety center, and certain materials storage.

The Board also approved razing the “Casa de Pedro” single family residence on the nearby Betts tract (Resolution No. ES 24.04.04).

New information. The bids for the barn replacement as envisioned were so high as to cause Conservancy management to re-consider its requested action. It now believes considerable savings could be yielded from the following revised path:

1.) Large replacement barn, Silva tract. In this case, the Conservancy would no longer include improvements for field services previously envisioned as well as other improvements (a new septic tank, electricity, etc.). Instead, the replacement barn would be as “like kind” (in function) as the barn lost to the high winds. The re-conceptualized barn will be spec’d so that it could be improved in the future as the Conservancy grows and its demands change. The cost of the barn replacement is approximately $450,000.00, which includes a 10% contingency. The Board is asked to approve this revised, and much lower, price as well as to proceed with the best value quote from construction contractors. (Insurance proceeds will offset total reconstruction cost.)

2.) Casa de Pedro residence, Betts tract. In this case, the Board is asked to rescind its action to raze the Casa de Pedro residence (Resolution No. ES 24.04.04). See next.

Future plans:

Casa de Pedro residence improvement, Betts tract. At the next Conservancy Board meeting, the Board will be asked to approve a renovation budget for the Pedro house. This will provide for updates such that it would be used for the field services staff as noted above, previously proposed for the barn replacement.

Pedro barn upgrade, Betts tract. At a future Board meeting, the Board will be asked to approve plans to improve the Pedro barn facility, a much smaller but enclosed metal barn with a concrete floor, to accommodate certain equipment and supplies, previously planned for the above-referenced replacement barn on the Silva tract.

Discussion. In all cases, the budget impact is projected to be substantially lower than the previously envisioned large replacement barn. It is also expected to provide diversity and optionality that is desirable so that as the Conservancy’s needs change, it can take advantage of the flexibility afforded in these multiple facilities.

Action. The Board is asked to approve recommendations #1 and #2 listed above 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.

9. Proposed Mid-Year Budget Revision

There have been several events that have caused the Conservancy to present a mid-year budget revision for the Board to consider.

When the 2024 budget was proposed by staff in late 2023, staff shared that there were many variables in the 2024 budget and should any of these or other events be realized, a mid-year budget revision would be proposed. Since the Conservancy’s auditors check year-end financials against budget as a measure of financial discipline and control, it is especially important to maintain Board oversight of the budget.

In summary, this mid-year budget revision, decreases revenues by approximately $805,000 due to a decrease in mitigation fees, and decreases expenses by approximately $1,400. This is management’s best current knowledge as to the most significant changes in financial condition as well as expectations through the end of 2024.

The key issues necessitating a budget revision include:

• Increase in mitigation revenue from the City of Sacramento,
• Decrease in revenue from HCP fees from Metro Air Park,
• Decrease in Biological monitoring due to change in consultants,
• Decrease in Facilities Improvement and Maintenance, General due to certain project savings and some projects that are now slated for 2025,
• Decrease in Facilities Improvement and Maintenance, Barn reconstruction due to changes in design and planning of the replacement barn,
• Decrease in Restoration & Enhancement due to changes in the projects and some expenses adjusted to the 2025 budget,
• Increase in Office equipment due to new copy machine purchase,
• Increase in Vehicle expense due to other staff mileage expenses,
• Increase in Insurance due to addition of two new Conservancy vehicles and an increase in general liability due to insurance claim, and
• Increase in City of Line of Credit due to Board-approved additional payment of $250,000.

Staff will review this in further detail at the Board meeting. Staff recommends Board approval of the proposed 2024 mid-year budget revision.

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

10. GGS monitoring contract

The Board is asked to authorize the Conservancy’s Executive Director, John Roberts, or Chief Financial Officer, Kimberli Burns to execute and deliver a contract with United States Geological Survey (USGS) in an amount not to exceed $219,202.00, which includes a 10% contingency, per year that extends the existing GGS monitoring contract by two years (2025-2026).

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

This matter addresses a more than 15-year old outstanding mitigation land credit. Staff is requesting 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 those 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 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, assigned to Opus.

Opus filed for bankruptcy many years ago and the case closed in 2016. The bankruptcy records were reviewed to see if these mitigation land credits were listed and no claims surfaced. Conservancy management also had lengthy and detailed conversations with Opus West’s former project lead, who in turn communicated with 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 from Opus and move them to the Conservancy’s approved surplus acres.

This item requests Board approval to:

1.) determine that the remaining Opus HCP mitigation land credits on the 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,

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.

12. City of Sacramento Report

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

13. County of Sutter Report

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

14. Financial Report

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

Download the Conservancy’s unaudited August 31, 2024 financial statements (PDF, 4 MB)

15. Draft 2025 budget

Staff will discuss with the Board the draft 2025 budget. The submitted draft is for familiarization and review by the Board. The final 2025 budget will be included with the NBHCP Finance Model update and presented for approval to the Board at its December 4, 2024 meeting.

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

16. BKS pond status and evaluation

Introduction. Staff will share with the Board the assessments performed on certain of the managed marsh component of the Conservancy’s flagship preserve, the Betts-Kismat-Silva (“BKS”) tract. The BKS tract is unique in that it receives extraordinary water, both in quantity and quality, by virtue of the fact that tailwater off the adjacent caviar factory (Sterling Caviar) is discharged into the marsh complex. This is an exceptional advantage for the benefit of the habitat at BKS, but it comes at some cost. For the purposes of this report, that cost is sediment load. The sediments and particulates from this water source settle out as water courses through the BKS marsh complex. It is inevitable that pond cleanouts are necessary to remove this sediment.

Purpose. The purpose of the examination was to determine the interval between the last renovation and the next. This has implications to the HCPs’ Covered Species as well as the Conservancy’s operating budget.

Originally, the preserves were targeted at being five to eight years between renovations. About 15 years ago, the Conservancy used the “adaptive management” provisions in the HCPs to renovate the marsh complexes with the intention of extending their life beyond this interval, largely to both diminish disturbance to the Covered Species that rely on them, but also to save money for use in additional enhancement pursuits.

Intervening opportunity. Because the water control structure at Pond K at BKS failed early in the Spring of this year, the Conservancy used the opportunity to conduct its inspection there. In addition, the Conservancy drew down water levels for inspection purposes on Pond Q and Pond R, two of the largest bodies of water on the BKS tract.

The Conservancy used the water-lowering as an opportunity to do the following:

1. Clean-out interval evaluation (the most important reason). Inspecting the interval for major clean out and/or renovation (this includes an assessment of accretion of sediment/particulate accumulation), and

2. Rare opportunity to see upper reaches. Examination for any surprises that might be found in the extensive upper reaches of the unit that could help learn how to improve management of it given their greater likelihood of being compromised by both submerged aquatic vegetation (SAV) and floating aquatic vegetation (FAV), as well as scouring, stranded pools and macrophyte density, and

3. Natural sloughing from bankside; filling in. Evaluating any below-waterline edge/bank sloughing, and

4. Undermining examination, estimation of risk. Inspecting for the amount of burrowing, tunneling and undermining by fossorial and related life and any potential for impoundment failure that might result, and

5. Fish life that fans and or otherwise places soil in suspension. This was to get an understanding of the type and amount of fish life that has matured there after 15-plus years.

Staff will brief the Board on its findings.

17. Managed marsh construction update

Staff will update the Board on managed marsh construction projects.

18. Executive Director’s Report

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

Executive Session (Closed)

19. Executive Session

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

Regular Meeting of the Board of Directors (Open)

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

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

Upcoming Regular Meetings

• December 4, 2024
• February 5, 2025
• April 2, 2025