Regional
Surplus Water Sales to Boost Revenues for Nevada Irrigation District
Author: Susan Snider, YubaNet
Published on Apr 4, 2008 - 10:35:37 AM

GRASS VALLEY, April 4, 2008 - As most Californians know, water is shaping up to be one of the biggest, most lucrative businesses in the Golden State.

And long-standing water sale agreements between agencies like Nevada Irrigation District and South Sutter Water District are becoming even more valuable as California edges closer toward a probable north-south water crisis.

Last week, NID's board of directors approved the sale of surplus water to South Sutter Water District. NID purchases this water from PG&E.

Early each year, PG&E notifies NID of surplus raw water available for irrigation needs. This allows the water district to sell water to customers like South Sutter Water District who are typically outside NID's external district boundaries.

NID normally expects a commitment of 20,000 acre feet of surplus water from PG&E. This year the hydroelectric utility guaranteed 15,000 acre feet with plans to notify NID at a later date as to the status of remaining available supplies.

According to Water Operations Manager Don Wight, NID buys the first 11,000 acre feet of water from PG&E at $1.25 per acre foot and the remaining allotment at $15 per acre foot.

Under a set rate, NID charges South Sutter Water District $24.10 per acre foot for all water supplied to the out-of-district water customer.

Historically, NID has sold all or most of its surplus water purchases from PG&E to South Sutter Water District.

The contract between NID and South Sutter expires in 2013.

As Videotaping Goes, So Does Transparency?

For the second year in a row, a request that NID fund videotaping of its board meetings has failed at the committee level.

It also appears that NID's customers and district taxpayers would not have been informed about this had it not been for Division 1 Director Nancy Weber's questions at the water district's recent board meeting.

Up to now, videotape funding has been made by private individuals and local neighborhood groups in an effort to provide viewing alternatives for citizens unable to attend the 9 a.m. weekday meetings. Copies of these tapes have also been made available at the county library.

The cost of taping varies between $100-$200 each meeting. NID's board meets twice a month.

Nevada City and Grass Valley both fund the videotaping of their city council and planning commission meetings. Nevada County funds the taping of their BOS and planning commission meetings, as well.

"What happened with videotaping for NCTV?" queried director Weber. NCTV Channel 17 is Nevada County's local Comcast station which has been broadcasting NID's board meetings.

Board President George Leipzig replied that he and director John Drew turned down the videotaping request in committee.

Leipzig declined to offer reasons for the decision, but added that there will be further discussion with staff and ultimately the topic will be presented to the board as an agenda item.

Earlier in the meeting, Grass Valley resident Marc Matthias addressed the board on this topic during the public comment period.

"I'm happy to see that your deliberations are being televised today," Matthias observed. "I urge you to pay for videotaping for all proceedings of board meetings to stay ahead of the curve."

Director Leipzig later indicated that taping is only one of the options and that it would be premature to come back to the board with any discussion within a month.

At this point, private funds for videotaping have been exhausted.

High Marks on 2007 Financial Statements, Questionable Direction in 2008

In spite of a glowing assessment, NID's audit forecasts a future indicative of an increasingly darker economy.

Ralph Marcello of Nicholson and Olson reported that the water district's audit is "without material mistakes." "This is the highest opinion a company can give a business," Marcello said.

Nevertheless, he noted that NID's finances are "definitely headed the wrong way." With total operating expenses up at the same time revenues were down, NID experienced a 3.7 million dollar loss in 2007.

"Your saving grace were taxes and assessments in 2007," said Marcello. "You also had developer contributions which are tied to construction."

With a crushing downturn in home sales and construction-related activity, NID can't bank on a substantial increase of tax revenues for 2008.

FERC Update

In an update on NID's Federal Energy Regulatory Commission (FERC) relicensing process, Jim Lynch of Devine Tarbell & Associates informed board members that formal filing would be made sometime by the end of March.

NID has hydroelectric operations within its district that are regulated under FERC and require relicensing, typically at 50-year intervals.

Director Weber requested that the board be presented with periodic updates on the process since many board members are unable to make all the FERC meetings.

Meetings to establish proposal groups and workshops for the public and interested stakeholder groups have already begun as a part of the relicensing process for NID and PG&E as collaborative partners.

NID General Manager Ron Nelson assured the board that they would be apprised of significant milestones.

Director Scott Miller questioned whether NID will be incurring additional cost by keeping the board informed.

"It is what I built into the process, to keep you informed and involved in the process," Nelson responded. "There is no additional cost, I am managing strategically to keep you [the board] engaged."

Why Doesn't NID Concern Itself With Groundwater Issues?

NID claims it isn't in the business of talking about groundwater, according to Director John Drew. But several people present at a recent town hall meeting on Nevada County water issues seemed to dispute this statement.

In other words, when wells go dry, who will be there to provide water to residents and farmers?

Director Nancy Weber reported to the board that over 135 people including local media attended the public forum. "If people don't have groundwater, they need to go to NID and we should not be omnipotent,"said Weber.

Weber indicated following last week's board meeting that additional town hall meetings will be scheduled to continue the dialogue about Nevada County residents' water concerns.

"This first forum barely touched on issues like access and water rights, how water is managed and protected, and future state demands on Sierra water resources," Weber noted. "There still needs to be serious discussion on topics like groundwater, conservation, and a potential county-wide water plan."

Individuals interested in future town hall meetings can contact Director Weber at (530) 265-0424.

Public Notice: Upcoming Meeting on NID's Raw Water Master Plan, Phase II

The public is encouraged to attend a meeting on April 16, 6:30 p.m. at NID's Grass Valley headquarters. The first in a series of meetings, NID staff will introduce the project and its goals and discuss the methodology used to gather data that will be incorporated into studies for the plan.

The next regular NID board meeting will be held at 9 a.m. on April 9 at the NID Business Center in Grass Valley. NID board meetings are open to the public.

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