April 28, 2014

Mr. Meads

related that the owners want this project to enhance the Pahrump community. There are plans to build approximately 80 new luxury homes with lots of garage space as many of the members have multiple cars. The homes are only weekend residences for the most part, and do not have a lot of living space. There will be 50 or more RV spaces. The proposed lake will host a training school for Jet Lev/Jet Pac instructors and owners. Stand-up paddle board activities are planned for the lake and it will be open to the general public. Commercial property purchased along Hwy. 160 will be developed for shopping, entertainment, dining, and lodging for the benefit of everybody in the community.

Mr. Meads

discussed the generous amount of tax revenue that will be generated for Nye County when this project is completed. There will be no fulltime residents at the facility so there is no impact on the school system even though impact fees for schools will 3 Nye County Water District Governing Board April 28, 2014 be collected from the developers. He explained the project includes a new water and sewer facility that they will build with their own funds. Since they are not allowed to operate such a facility, it will either be given to Nye County or to another qualified utility district to operate. Details of this part of the plan are still being worked out.

Mr. Meads

anticipates that when this project reaches full build-out there will be an additional 500 jobs generated within the community. He expects to reach complete build-out within 5 years. Impact on water resources was addressed. Currently the raceway is using 16.5 AF annually, and he anticipates that amount to increase to about 24 AF in annual consumption. They will be relinquishing 92.24 AF back to the state as required by law for the homes.

Mr. Meads

related some of the water saving features that will be incorporated into the property. He showed video of the retention infiltration basin that is built on the raceway which captures and allows storm water to seep back into the aquifer. On one day alone over 23 million gallons were captured to be returned to the water table. There are several other RIB’s located elsewhere on the property. They also help to control erosion. He explained how the new water and sewer system could be made available to enable development of the new county fairgrounds. He also noted that this will be one of the finest facilities of its kind in the country and that it would be a great asset to the community. There is zero cost to the community and is planned to be environmentally responsible. The Las Vegas Tourism Board has expressed a lot of interest in the water sports planned for the lake. Future employees must be residents of the Pahrump Valley. The owners are very insistent that locals are hired for construction and that local material suppliers are utilized as much as possible. Donna Lamm commented that this is a wonderful thing for Pahrump. Upon questioning,

Mr. Mead

noted that the water treatment plant can be located on raceway property or at another site depending upon who assumes ownership once it is complete. John Bosta related that “rumors” are saying the plant will be built on county property at the fairgrounds site and the BLM may take back the property if the land is not used for its intended purpose as a park and recreational facility. Mr. Meads noted that they have been in conversation with the town about locating the plant on that property but since it can be designed to be self-contained it could stay on raceway property. It must then be turned over to an authorized utility company for operation. These details are still in negotiation. Mr. Bosta felt that the county was not qualified to run a utility company and he would support putting the plant on raceway property

Mr. Meads

felt that this was a rare opportunity for the county to get into the utility business at no cost to the taxpayers. He felt that it could be a great benefit to the community as it would allow for the fairgrounds to be properly developed to its full potential. Donna Lamm noted that if nothing is done at the fairgrounds it will eventually have to be returned to the BLM. Michael Lach noted that if the fairgrounds are ever developed, some sort of sewer system will have to be placed there since UICN has no sewer lines in the vicinity. Only UICN and Nye County are qualified to operate a system in this vicinity. Frank Carbone noted that the Water District also legally qualifies to operate a utility system. Upon questioning, Mr. Meads stated that the owners are currently negotiating to purchase additional water rights for the commercial portion of the development from a well that is located on site. Evaporation rates for the lake were discussed. SNWA has some calculations available on line. According to those figures, about 43 AF per year 4 Nye County Water District Governing Board April 28, 2014 would be evaporated. Mr. Meads noted that the water system will be designed to be expandable for increased development within a mile going each direction along the highway including development on the other side of the highway. Upon questioning from James Eason, it was explained that the raceway is currently serviced by a private water system and utilizes a commercial septic system that is permitted by the state. Frank Carbone related that cost projections for the county to operate the utility system were being put together by the Public Works Director at this time. Mr. Meads related that the raceway was in the process of putting together some operating cost estimates too. Since a portion of this project is located within the UICN tariff area, Mr. Eason requested UICN be allowed to comment on the proposal with regards to the county operating a utility that overlaps into their district. He felt that this project could benefit the entire county. Mr. Meads related that water rights currently being used date back to the 1960’s, and the new acquisitions currently being used in a gravel pit operation date back to the 1960’s and 70’s. Darrell Lacy discussed mitigation measures that the ranch will be utilizing to offset evaporative water loss from the lake while emphasizing that the lake will be open to the public. Mr. Meads related that he has been in talks with UICN for the design of the system in the event the community decides that the county should not operate the utility.

Mr. Lacy

noted that since the county or water district is not regulated by the PUC, they have the legal authority to operate within the tariff area of a privately owned utility company. Whether it makes for good policy is another matter. Frank Carbone noted that some of the fairground property is located within the UICN tariff area and they have the potential to locate the treatment plant at that location too. John Bosta made a motion to approve the plan, but require that the water treatment plant be located on raceway property. The motion failed due to lack of a second. The general consensus was that the board was in support of the plan but needed more information on operation and maintenance costs of the water plant as well as input from UICN on where they might locate the plant. Darrell Lacy requested that in making a recommendation the BOCC the Water Board address the mitigation measures being proposed to offset water loss from evaporation. John Bosta felt that the Water Board did not spend enough time analyzing the development agreement between Nye County and Spring Mountain Raceway. Donna Lamm commented that the agreement contained most of the information that had already been discussed. Utility plans are still being developed so that is still open for discussion at a later date. James Eason made a motion to support the Spring Mountain Raceway Project as presented, excepting the utility portion until more information is made available regarding the utility service tariff area; operating and maintenance costs estimates are obtained from the professional engineer hired by Spring Mountain Raceway; and it is determined whether Nye County will be allowed to provide service within the UICN tariff area. The Water Board also supports the mitigation plans as presented. Jay Dixon seconded the motion. The motion was approved with a vote of 6-0 in favor. 9. (01:45:16) For Possible Action – Discussion, direction and possible decision regarding revision of the Mission Statement for the Nye County Water District that was adopted by the Nye County Water District Governing Board on July 27, 2009. Donna Lamm related that the current Mission Statement would suffice. John Bosta felt that the current statement did not reflect the purpose of the Water Board. Economic 5 Nye County Water District Governing Board April 28, 2014 development should not be included as a purpose. Michael Lach felt that the statement needed to be simple but broad. Jay Dixon proposed a Mission Statement to read as follows: “Provide, protect and preserve water resources within Nye County”. This would simply state the purpose of the Water Board and not imply any constraints. Everyone agreed with that proposal. Jay Dixon made a motion for the board to adopt as their Mission Statement the following: “Provide, protect and preserve water resources within Nye County”. Michael Lach seconded the motion. There was no further discussion or public comment. The motion was approved with a vote of 6-0 in favor. 11. (01:49:51) For Possible Action – Discussion, deliberation and possible direction from Staff regarding the Nye County Water District Budget for Fiscal Year 2014- 2015. A detailed breakdown to be provided to the Water Board by staff for each of the short-term and ongoing programs proposed in the current tentative budget: Ongoing Programs - Short Term Programs – Water Level Management Program GWMPAC Support Grant Match Water Metering Program WRP Review & Update Other Conservation Water Rights Purchases Darrell Lacy briefly discussed individual items that are included in the proposed program budget for FY 2014-2015. He noted that the Water Level Management Program was a bit broader in scope and includes other related water science issues. This is covered thoroughly under Item 12. He noted that most of these are ongoing programs with a few exceptions. Short term programs are generally funded by reserve accounts. Susan Paprocki discussed how the budget is formulated. This agenda item is asking for approval of the program portion of the budget for next year. James Eason asked questions regarding the new PERS requirement for the Administrative Assistant position and how that would impact this budget. Darrell Lacy noted that it has not been determined as to whether the Water District will partially or fully fund the PERS requirement. Another option would be to cut back work hours to that of a part time position so that PERS will no longer be required. He discussed that back payment is required to make up for hours worked over the half time limit. Ms. Paprocki related that there is enough money in the proposed budget to cover those back payments and future payments. Right now she is budgeting for the worst case scenario. The board will have the option to modify the Water District’s commitment at any time and not fear going over budget. James Eason questioned budget details for GWMPAC staff support. Mr. Lacy related that it required approximately 3 days a month for Mr. Lacy, 6 days per month for the Administrative Assistant, and 2 days each for Mr. Kryder and Mr. Wichman’s time. That worked out to about $60,000 for the next year’s budget. Michael Lach made a motion to approve the program budget as presented. Jay Dixon seconded the motion. There was no further comment. The motion passed with a vote of 6-0 in favor. 12. (02:08:49) For Possible Action - Discussion, deliberation, possible decision, and direction to staff to: 1) Fund the Water Science and Level Measurement Program; 2) Set the level of funding for the program in the 2014/15 budget; 3) Review the Oz Wichman basin health report; and 4) Identify information and 6 Nye County Water District Governing Board April 28, 2014 technical water level data needed. (Tabled from March 24, 2014 meeting due to time constraints.) Darrell Lacy related that at the last meeting there was a request for $50,000 to finance one half of the salary of a current NWRPO employee in order to continue operation of the Water Science and Level Measurement Program under the auspices of the Water District. He explained the scientific significance of continuing the program. Levi Kryder presented cost estimates from outside contractors that could also provide similar services. It was shown that it would be more economical for the Water District to finance one half-time employee rather than go elsewhere for the service. The Oz Wichman basin health report gives information to the board so that they may be better able to decide what direction this program may take in the future. John Bosta made a motion that the Water District provides funding for the continuation of the Water Science and Level Measurement Program to be managed by County Staff in the amount of $50,000 as proposed in the budget for 2014/15. During discussion, it was noted that PERS benefits would be provided to that employee. Michael Lach seconded the motion with the stipulation that he would like to see, at a future date, a breakdown of how monies are allocated within the program on a year to year basis. Mr. Lacy noted that the program may be modified somewhat from the current proposal, but that can occur without increasing the budget.

Mr. Lacy

noted that numbers 3 and 4 of this agenda item can be addressed at a later date as they had no impact upon the approval for funding. 13. (002:26:25) For Possible Action - Discussion, deliberation, and possible decision to recommend changes to the Nye County Regional Planning Commission regarding Nye County Code 16.20.190 (E) to eliminate the 4.5-acre threshold for relinquishment of water rights to the Nevada DWR. This change would require relinquishment of water rights for all land subdivisions within Amargosa Valley, consistent with recommendations from the WDGB regarding relinquishment of water rights for land subdivision in the Pahrump Valley. Darrell Lacy related that this proposal is consistent with the changes that have been proposed for the relinquishment of water rights for land subdivision in the Pahrump Valley. This proposal addresses the increasing demand for water as more land is made available for development in the Amargosa Valley. He noted that he was in agreement with an earlier comment made by John Bosta that the Amargosa Town Board needs to be made aware of this proposal before moving forward to the BOCC for a final decision. In keeping with open meeting law, this is just the beginning of discussions about this issue. Levi Kryder noted that it was important to obtain water relinquishments on all land subdivisions.

Mr. Bosta

felt that it was the Planning Director that was supposed to bring this issue forward and not the Water District. He also felt that the language in the land use code was unclear due to the changes that have occurred over the years. Mr. Kryder noted that the State Engineer fully supports the proposed code amendments. Oz Wichman clarified that there is a difference between relinquishment for a subdivision and that for a parcel map. He noted water relinquished and dedicated to a parcel is attached to that parcel into perpetuity even though it is technically dedicated back to the State. Kelly Harris, from the Tonopah Planning Department, clarified for Mr. Bosta that the land use code does have correct wording at the present time as it relates to all land use 7 Nye County Water District Governing Board April 28, 2014 proposals outside of the Pahrump Planning District. She went on to relate the history of changes to the code in Nye County. It was shown to Mr. Bosta that indeed, all water is relinquished to the State and not the County. She also showed that subsequent parceling of land is not allowed until 5 years after the initial division. Michael Lach made a motion to direct the Nye County Water District Governing Board to support the direction in which this proposal is proceeding. The Board also requests that Darrell Lacy bring this proposal to the Amargosa Town Board for discussion before binging back a specific ordinance for review by the Water Board. James Eason seconded the motion. The motion was approved with a vote of 6-0 in favor. 14. (02:43:37) For Possible Action - Presentation, discussion, deliberation on comments submitted to PUCN regarding the Integrated Resource Plan for Utilities Inc. of Central Nevada, Docket No. 14-02043. Darrell Lacy related that at the last meeting it was decided that the Water District would act as a “commentator” and not an “intervener” with regards to the Integrated Resource Plan that was submitted to the PUC by UICN. He was now looking to the board for commenting suggestions. Mr. Lacy noted that Nye County has been accepted as an intervener by the PUC.

Mr. Lacy

felt that it would be wise to discuss proposed comments with the Water District Attorney, George Benesch, before moving forward in the process. John Bosta felt that the banking of water rights by UICN needed to be a topic for comment. James Eason commented that this issue is bigger than simply making a comment to the PUC. It was a statewide issue and this was not the time or place to address this problem. Donna Lamm requested that board members forward their comments to the Water District. Michael Lach made a motion to approve the comment letter submitted to the PUC by Darrell Lacy. Jay Dixon seconded the motion. The motion was approved with a vote of 6-0 in favor.

Mr. Lacy

related that the SNWA was ready to get involved in discussions regarding water issues in the Trout Canyon area and give a presentation on effluent reuse. This will be scheduled for the near future. II. Desert Tortoise Advisory Committee – John MacLaughlin None c. Staff Reports: I. Darrell Lacy None II. Oz Wichman

Mr. Wichman

read into the record a letter from the Shoshone Estates Water Company regarding their inability to comply with state limits for arsenic in drinking water. The SEW is requesting the services of Mr. Wichman to guide them in bringing their system into compliance. Mr. Wichman will bring back to the board an estimate of his hours required to perform this work. The Water District, in the past, has lent support to other entities in the county and Mr. Wichman feels that there may be some items of which he will be capable of providing assistance. There will be further discussion of the situation as things progress. III. Levi Kryder None d. Project Status Report None e. Board Liaison Report I. Frank Carbone

Mr. Carbone

related that recently there had been a test of the Emergency Management System through the simulation of disaster scenarios. The county did very well in getting a B+ grade. f. Report from other individuals, groups and or agencies regarding water-related issues: For informational purposes only. Donna Lamm related that she has been looking at potential options for capturing water run-off in the Trout Canyon area. She and Levi Kryder will be meeting on that issue in the near future. Also, Judy Gilmore, from UICN, and Ms. Lamm have been working on putting together a water education program for local schools. Mr. Kryder related that he had surface water model that was available for presentation to the Water Board and could also be used in school education programs.