Board of Directors Agenda
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 October 4, 2017.
4. Sacramento Tree Foundation Contract
The Sacramento Tree Foundation provides tree counting services as required in the Conservancy’s Implementation Annual Report. The services will cost the Conservancy $15,000 per year as part of a two-year contract.
This item would affirm payment for the 2016-2017 agreement and authorize payment of the 2018-2019 service agreement with the Sacramento Tree Foundation as the work is performed and invoiced.
5. 2018 NBHCP Finance Model and 2018 budget
The proposed 2018 Conservancy budget is presented to the Board for adoption. A draft of the 2018 Conservancy budget was shared with the Board at the October 2017 Board of Directors meetings for review and discussion.
The Conservancy draft 2018 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 State of California’s Williamson Act subventions to counties remains unfunded or largely unfunded in this and future State budgets.
- Counties with which the Conservancy has Williamson Act contracts (Sacramento and Sutter) make no additional change to existing contracts.
- Counties permit no newly-acquired properties to be enrolled in Williamson Act contracts and to enjoy the property tax benefits such participation affords.
- 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.
- 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 2018. Harrington estimates the range for mitigation land acquisition in 2018 is $17,500 to $23,500 per acre.
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 2018 Conservancy Budget and NBHCP Finance Model is now submitted for Board acceptance as is a request to the City of Sacramento to adopt the Finance Model’s indicated fee as follows:
• Increasing the NBHCP fee to $33,091 per developed acre, from $31,600 in 2017.
• Increasing the NBHCP fee with land dedication to $21,841, from $20,350 in 2017.
This item requests:
1.) approval of the proposed 2018 Conservancy Budget,
2.) acceptance of the 2018 NBHCP Finance Model recalculation, and
3.) adoption of a resolution to be submitted to the City of Sacramento requesting the above noted NBHCP fee adjustments (see attached resolution).
This item anticipates that should Sutter County express an interest in initiating its use of the NBHCP’s Incidental Take Permit acres, an identical resolution is approved for it as well, changing out only the City of Sacramento references to County of Sutter references.
6. 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 13, 2018, at the Four Points by Sheraton, 4900 Duckhorn Dr., Sacramento, CA 95834. The Conservancy holds 3,396 shares of stock in the Company (out of approximately 31,452). Conservancy staff recommends that votes be cast for candidates committed to preserving the NCMWC’s historic policy of keeping the NCMWC stock linked to the land owned by the shareholder (that is, not allowing the stock to be severed from the land), familiarity with the NBHCP and sensitivity 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 after consultation from the Conservancy’s Board Chair.
7. Financial statement review
Financial statements will be provided for the period ended October 31, 2017 (unaudited). Additional financial information will be provided.
8. Executive Director’s Report
Various matters for Board members’ general information will be presented by the Conservancy’s Executive Director.
9. Executive Session
Executive session is scheduled for real estate.
Official adjournment of the meeting.