NID Working to Shore Up Water Rights

GRASS VALLEY, Calif. May 20, 2009 - In the minds of many state bureaucrats, farmers, ranchers, and environmentalists, the value of water far surpasses that of gold. The same sentiment is also held by water agencies like Nevada Irrigation District. That is why for the past several years district staff have been actively pursuing the licensing of NID's ten remaining water right permits.

At the district's May 13 board meeting directors heard a presentation on the status of this process. According to NID Operations Manager Don Wight, acquiring water rights is a complicated process. While NID already has 18 existing licenses, it must secure licensing approval on 10 use permits for its lower division, which includes Scotts Flat, Rollins and Combie Reservoirs. These permits are for both consumptive and non-consumptive (such as hydropower and recreation) use.

A license is the final confirmation of an appropriative right and remains in effect as long as license conditions are met and the water is put to beneficial use. Beneficial uses in California include domestic, aquaculture, fire protection, fish and wildlife, frost protection, irrigation, industrial use, mining, municipal, power, recreation, and livestock watering.

In the past four years, NID has been working to quantify the amount of water beneficially used under these 10 permits with the goal of making its water rights consistent with historic and current NID operations.

The district is currently at the petition stage of the licensing process. Here, NID petitions the State Water Resources Control Board Division of Water Rights for full licensing based on beneficial use quantities the district has determined it needs to maintain its operations. These petitions also address changes in place of use, purpose of use, and points of diversion/re-diversion. The district is also petitioning for modification of some of its permits prior to licensing.

Once the petitions have been filed, a public notice must be circulated to allow a specified amount of time for any potential public protest and subsequent responses by NID. The petition process also calls for a CEQA review.

"The scope of changes are so small we will only need a negative declaration," NID legal counsel Jeff Meith advised the board.

According to Wight, there is indication from the Division of Water Rights that public notification could be conducted as early as the third quarter of 2009. Wight also informed the board that final licensing approval could occur by the end of 2009.

NID and Its Water Rights: A Primer

While development of the canals and flumes that exist and convey water throughout the district began in the mid 1800s, NID officially formed in 1921. NID holds both pre-1914 and post-1914 appropriative water rights as well as riparian rights.

Appropriative rights are acquired by putting surface water to beneficial use. Prior to 1914, appropriative rights could be claimed through diversion and use of water. A notice simply had to be posted at the point of diversion. In addition, a copy of the notice needed to be recorded with the local County Recorder.

Today, post-1914 appropriative rights are secured through the State Water Board Division of Water Rights. Riparian rights are derived from ownership of land bordering a surface water source. These rights are senior to most appropriative rights.

District Annexations: Hammering Out Tax Sharing

Before jurisdictional changes pending with any Local Agency Formation Commission (LAFCo) can become effective, local agencies involved in these service area changes must establish formal agreements to accept a negotiated exchange of property tax revenues. Currently there are annexations pending between the City of Nevada City and NID.

In compliance with tax code regulations, the district's board recently approved adoption of an agreement stipulating the apportionment of property tax revenues for all annexations involving the City of Nevada City and Nevada County.

While an agreement between the three entities was originally developed in 1995 and was approved by the City of Nevada City, it was never presented to the county Board of Supervisors or NID's Board of Directors.

According to district assistant manager Tim Crough, there are properties in the outlying area of Nevada City that are receiving water through the city that could be better served by NID. "The city has asked NID to serve these parcels," Crough advised NID's board. Some parcels within the Gracie Commons project, for instance, are included in the pending annexation.

Director Scott Miller questioned staff about the failed annexation of the newly-constructed Home Depot in Auburn. In the case of Home Depot, NID offered to supply water to the development. However, while Placer County was willing to do an annexation of the Home Depot property, it refused to enter into a tax sharing agreement.

"We could send this agreement (the pending tax sharing agreement between NID, the City of Nevada City and Nevada County] to Placer once it is signed to show that this tax share is being agreed upon here and that it is fair," Crough advised the board.

According to Crough, under the revenue sharing agreement between NID, the City of Nevada City and Nevada County, the percentage of tax sharing will vary from parcel to parcel.

Generally, the District would receive ten percent of what the city receives in property tax revenues.

Decision on Board Vacancy Imminent

With the clock ticking on the time required to appoint a replacement for retired director Paul Williams, NID's board will likely fill the District IV vacancy at the next board meeting. Board president John Drew advised that making the appointment at the May 27 board meeting keeps the district within the required 60 day period.

If the district fails to approve a replacement within this time frame, the authority to appoint falls on the Board of Supervisors in the county where the majority of NID's Division IV lies. In this case, it would be the County of Placer BOS.

NID's board must conduct potential candidate interviews in a public session. The final vote must also be conducted during a public forum.

Drew requested that discussion of letters of interest and presentations by potential candidates be conducted at the regularly scheduled May 27 board meeting in anticipation of making a decision then.

"If we don't make the decision that day, we will still have two weeks," Drew added, referring to the possibility of delaying a decision until the June 10 board meeting.

The next regularly scheduled NID board meeting will be held May 27 at 9 a.m. at the NID Business Center in Grass Valley. The public is encouraged to attend.

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