May 15, 2014

Mr. Lacy

related that collecting data for scientific purposes was within the realm of the Water District. This is a policy issue in which the board makes a decision on whether or not to spend money on the program. Donna Lamm noted that the State Engineer was in agreement about the benefits of a volunteer metering program as it can provide valuable data about individual water usage. Michael Lach made a motion that Item 10c. not be pulled from the agenda and that it will be discussed as they proceed through the agenda. James Eason seconded the motion. There was no further comment. The motion passed with 5-Ayes and 1-Nay from John Bosta.

Mr. Lacy

noted that this issue is one of policy since this matter has already been addressed by the Attorney General and deemed appropriate. NRS 542 does not restrict the creation of a utility district by the Water District. The Water Board can decide what the appropriate method may be to provide water services to Nye County, of which one benefit would be development of the fairgrounds. UICN never had any plans to provide service to the raceway until this opportunity presented itself.

Ms. Barnett

did not agree with some of Mr. Lacy’s statements and hoped to work cooperatively with Nye County in the future. She talked about some of the problems that UICN had inherited from the previous utility owner, Preferred Equities.

Mr. Bosta

complained about the lack of back-up for Item 13 c. Michael Lach questioned why the developer of Spring Mountain Raceway would have chosen Nye County first to take over operation of the wastewater plant. He wondered if there were more advantages in choosing Nye County over UICN, primarily economic. Ms. Barnett related that it was more of a time issue, if anything. The County can expedite the permitting process due to the fact that UICN must annex much of the property being considered for service. There was a brief discussion concerning setting of customer rates.

Mr. Lacy

reminded everyone that the BOCC had the final decision in this matter. Frank Carbone related that under NRS 542 the Water District has the authority to run water and sewer utilities. He felt that the County Commissioners should not be involved in these negotiations and that the final decision should rest with the Water District.

Mr. Lach

felt that the Raceway did not want the wastewater plant on their property due to odors that may be emitted. Darrell Lacy related that County Staff was currently working on an operating plan and there are qualified staff on board that could handle operations of the facility. Mr. Lacy related the economic benefits that the project can bring to Pahrump. Mr. Lach felt that the Water Board could not make a decision because they have not yet reviewed the operations plan from the county. It was noted that since the Town of Pahrump owns the fairgrounds property, the county would lease the property before anything could be built.

Mr. Lacy

noted that the Water Board has never expressed an interest in operating a utilities district. He was looking for direction from the board in this matter. Frank Carbone felt that there was no desire of the Water Board to be involved in this type of endeavor. James Eason requested a more current opinion from the AG’s Office. He felt that running a utility at this time was not in the best interest of the Water District. Recommendations from the Basin 162 Groundwater Management Committee were imperative before going forward. He also had questions about financing.

Mr. Eason

made a motion that the Nye County Water District does not have anything to do with Nye County’s request to accept a new utility to be put in by Spring Mountain Raceway. Frank Carbone questioned the direction that the Water Board has taken over the last 6 years. Mr. Eason noted that representatives from the raceway have never approached the Water District regarding the building of a utility.

Mr. Eason

clarified his motion to state that the Water District will not get involved at all in working with the speedway to assume responsibility of this utility, and to stay out of the discussion and process. Jim Weeks seconded the motion. The motion passed with 5 Nye County Water District Governing Board May 15, 2014 a vote of 5-Aye and 1-Nay from John Bosta. It was decided a discussion regarding the future direction of the Water District be placed on the next agenda. Darrell Lacy briefly discussed the importance of Items 13a. and c. as they relate to future endeavors of the Water District. Once again he was looking for future direction from the Water Board. Donna Lamm noted that a strategic planning discussion by the Water Board will be included on the next agenda. Michael Lach requested that Mr. Lacy provide to the Board some information about the process involved in setting up a potential utility district. Mr. Lacy noted that some of the small utilities in Nye County operate as separate enterprise zones that are self- financed. Oz Wichman noted that each utility district is unique in its operation. A summary of operations of the various utilities in Nye County will be presented to the Water Board at a future date.

Mr. Lacy

asked Jason King to comment on water dedication for the utility companies in the valley. Mr. King noted that for new subdivision lots the current dedication rate is 1.12 AF. For older existing lots he does not believe that the dedication can be increased from the existing 0.54 AF to the current 1.12 AF requirement. Mr. Lacy related that UICN has been requesting that people purchasing the older lots provide an additional 0.58 AF to UICN to make up the difference. Mr. King will do some investigation into this issue and bring back information at a future meeting. II. Oz Wichman

Mr. Wichman

briefly updated the board on issues with PERS and the Shoshone Estates Water System. He plans on spending time working on the Shoshone Estates problem unless the Water Board has some objections. Darrell Lacy noted that this water system is currently in violation of allowable arsenic levels as mandated by NDEP. III. Levi Kryder None d. (02:32:08) Project Status Report None e. (02:312:21) Board Liaison Report I. Frank Carbone None f. (02:02:16) Report from other individuals, groups and or agencies regarding water-related issues (for informational purposes only). Jason King, State Engineer, related that he had concerns regarding the development proposal for the Spring Mountain Raceway and conflicts that it may create between water providers in the valley. 6 Nye County Water District Governing Board May 15, 2014