June 23, 2014

Mr. Bosta

. Michael Lach proceeded to make a motion to move Item 13 to follow Item 8. John Bosta seconded the motion. The motion passed with a vote of 6-0 in favor.

Mr. Kryder

emphasized that this discussion was only for informational purposes and there will be no decisions made at this time. Mr. Kryder also stressed that the project currently only exists as an idea for bringing additional water to the community of Pahrump, in addition to the benefits of bringing water to the community of Trout Canyon and generating power. Mr. McCormick explained that currently community members are hauling water from a private well until a permanent solution can be found. Sources of potential funding were discussed. It was noted that VEA would finance the portion of the pipeline that leads from the community to the hydroelectric generating plant. Anything beyond that will be the responsibility of the Water District. Mr. Kryder related that approximately 4,000 AF of water might be available for transport to the Pahrump Community via the pipeline. Easements across Forest Service land were discussed. An ASR project for Pahrump will not be included as part of a Trout Canyon proposal. Clark County will have to be involved in discussions of this plan as Trout Canyon is located within that county, but utilizes water from Basin 162. A precedent was set during the Carpenter One fire which allows for the use of heavy equipment on Forest Service land that accesses the majority of the pipeline easement. During questioning it was revealed that the Trout Canyon Water Company is a defunct organization. The Trout Canyon Land and Water Users Association is the only water company in the area. Water rights to the spring must be purchased from the defunct water company for use in the new project. Until an engineering study is complete it cannot be determined what the exact options are for a new system. There are no groundwater rights currently available in the basin for the drilling of a new municipal well. Mr. McCormick stressed that his water association was strictly non-profit. Meghan Holzer, acting as a liaison for Clark County Commissioner Brown who provides representation for the district that includes Trout Canyon, was present to weigh-in on the potential plan. She explained some of the actions taken by Clark County to help the community of Trout Canyon since the fire. She did not feel that Clark County would have any objections to Nye County utilizing water from this area since it can be used to benefit an entire region. She noted that some this water is owned by the Forest Service and not Clark County and did not know what the opinion of SNWA may be on this issue. Bob McCormick related that SNWA has been involved in discussions concerning Trout 3 Nye County Water District Governing Board June 23, 2014 Canyon water issues. At this point there is no accurate data regarding the volume of water flowing from the source spring. It will be about 2 months before the PER will be available for review. Mr. McCormick noted that the spring water has never required treatment for public consumption as it meets all requirements related to health and safety. During public comment it was noted that water flows from the spring back into Basin 162, but it is of no benefit to Pahrump as it flows farther south of town toward California. The new water system will be built properly in order to prevent similar scenarios from occurring again. It was still too early in the process to be discussing costs for construction and future maintenance. One member of the public had conflict of interest concerns about a board member who owns property in Trout Canyon. Others felt that it was the responsibility of Clark County to handle this problem since Nye County did not collect any tax revenue from Trout Canyon citizens. 9. (01:09:51) For Possible Action – Discussion, deliberation and election of Secretary/Treasurer for FY14-15. Darrell Lacy noted that in the past, the Secretary/Treasurer position has been held by the Nye County Comptroller. That position has recently been vacated. Pam Webster, the County Manager, has temporarily assumed the Comptroller position until someone is hired. Michael Lach made a motion that Pam Webster be appointed as interim Secretary/Treasurer until such time as new Water Board officers are elected. John Bosta seconded the motion. The motion was approved with a vote of 6-0 in favor. 10. (01:13:20) For Possible Action - Presentation, discussion, deliberation, and possible revision regarding Water District participation in the Nevada Public Employee Retirement System (NV PERS). Oz Wichman briefly discussed what has transpired between the Water District and PERS officials in the past 2 years. He did note that the Water District is not required to provide health benefits as per state law. In July of 2012 Mr. Wichman was told (via email) that the Water District did not have to enroll part-time employees in PERS. Earlier this year, the Water District was informed that PERS is required for any employee working more than 19.5 hours per week, and they should have been paying into the system all along. Since then, that employee has been enrolled and back payment has been made into a PERS retirement account. The Water District has different options available for making future payments: Either the Water District pays the full amount, or it can pay 50% while the employee pays the remaining 50%. The 50/50 contribution may require some computer programing changes to the current payroll system that is in place in the county. In order to make a 50/50 contribution the Water District must create its own account with PERS that is separate from Nye County. There was a brief discussion about the Water District taking over its own administrative services if the MOU with Nye County was dissolved. Other discussion ensued over the fact that interest was charged on the money that had to be back-paid to PERS even though it was essentially their fault that payment was not made. John Bosta made a motion that back payments be approved which includes 8% interest on the entire amount. In the future the Water District will set up its own PERS account and the Water District will continue with a 100% contribution. Jay Dixon seconded the motion. John MacLaughlin felt that the 50/50 option might be a better option. John Bosta amended his motion to read that the PERS contribution from the Water District will be 50% with the employee contributing matching funds. Jay Dixon 4 Nye County Water District Governing Board June 23, 2014 amended his second to incorporate the changes reflected in the revised motion. Oz Wichman requested a 90 day period in which to iron out all of the details that will be required to set up a 50/50 plan for Water District employees. Pam Webster suggested that the motion be broken up into two parts for clarity. John Bosta proceeded to withdraw his last motion and make two new motions as outlined by

Ms. Webster

as follows: 1) A motion to pay the amount due and all associated penalties to PERS. Michael Lach seconded the motion. The motion passed with a vote of 6-0 in favor. Jay Dixon removed his second from the earliest version of the motion. 2) A motion to proceed to set up a Water District account with PERS and to continue to pay a 100% contribution until such time as the new account takes effect as per the recommendation by Oz Wichman. Mr. Wichman will work on getting the new plan in place within 90 days. Michael Lach seconded the motion. The motion passed with a vote of Aye-5 and one Nay vote by James Eason. One member of the public commented that a PERS retirement plan can cause a reduction in the amount that one can collect from Social Security due to “double dipping.” The first public comment session, which was overlooked at the beginning of the meeting, opened with comments regarding the importation of water and suggestions for a possible metering program. Greg Dann, GWMP Committee member, offered to measure static well levels for members of the public at no charge.

Mr. Lacy

noted that notifications requesting public comment are only published in local newspapers. Jay Dixon proceeded to make a motion that Water District staff monitor notifications for water pollution control permits and provide comment when appropriate. Michael Lach seconded the motion. The motion was approved with a unanimous vote of 6-0 in favor. 18. (02:42:10) For Possible Action – Presentation, discussion and possible decision to comment on changes by the EPA that would amend the definition of “Waters of the US” and expand the range of waters that fall under federal jurisdiction. John Bosta made a motion that the Water District provides comment in opposition to some of the proposed changes. Jay Dixon felt that these changes could have a negative impact upon local ranchers by impeding their ability to remain productive. He suggested that staff go to the Nevada Farm Bureau website and gather more details in order to formulate an appropriate response. This action may also have a negative impact upon the mining industry. Levi Kryder noted that Nye County has also put together some comments which the Water District may wish to incorporate into their response. Jay Dixon seconded the motion. The motion was approved with a vote of 6-0 in favor. 19. (02:45:36) For Possible Action – Discussion, deliberation and possible decision regarding long term strategic plans for the Nye County Water District. Donna Lamm emphasized this discussion was to provide direction to staff regarding future pursuits. John Bosta felt that the back-up material was inadequate and wanted this item to be postponed. Darrell Lacy noted that today would only be a discussion about which direction the Water District may wish to move in the future. No action has to be taken. 7 Nye County Water District Governing Board June 23, 2014

Mr. Lacy

presented a brief history of the Water District and discussed some of the studies that have been conducted. He addressed the legal powers of the Water District and suggested items that the Water District may want to address in the future. The over- allocation of water rights in the basin was the primary concern. Mr. Lacy proposed some solutions to help maintain water levels in the basin. Tough decisions will need to be made as solutions will not be cheap. The Water Board has the power to pass rules, ordinances and regulations including the authority to seize property under the powers of eminent domain. In order to move forward plans will have to be made. Michael Lach recommended that each board member bring forward to the next meeting a list of 5 high priority items that need to be addressed by the Water District in the future. There was some discussion about the types of projects that could be considered. 20. (03:23:31) For Possible Action – Discussion, deliberation, and possible decision to authorize GM to protest or comment on select water right applications in order to protect the groundwater in Nye County as per guidelines from the Nye County Water District. Darrell Lacy related that there were no applications at this time that were important enough to warrant filing a protest. 21. (03:23:56) District Member, Staff and Liaison Reports/Comments b. Board Reports I. LVVWD/SNWA – Darrell Lacy None II. Desert Tortoise Advisory Committee – John MacLaughlin The committee is at a standstill. III. Donna Lamm She noted that Judy Gilmore from UICN and she will be talking to the Nye County School District about incorporating a water conservation education program into the school curriculum. c. Staff Reports: I. Darrell Lacy None II. Oz Wichman

Mr. Wichman

noted that the DWR now has on their website an interactive program that shows points of diversion and places of use for all water rights. He noted that he is still helping out the Shoshone Estates Water Company with a variety of issues. They are now looking at point-of-use water treatment to clear up their arsenic problems. Mr. Wichman said that he is only using a couple of hours here and there to assist them and will continue to do so as long as the Water Board has no problem with that. III. Levi Kryder None d. Project Status Report Oz Wichman related that the Water District was overdue with having the Nye County Water Resources Plan (Buqo) updated and it should be placed on someone’s priority action list. Michael Lach suggested that Mr. Wichman, Mr. Lacy and Mr. Carbone all make a priority list of their own to present to the board. e. Board Liaison Report I. Frank Carbone

Mr. Carbone

related that the GWMP Committee is getting off to a very slow start. f. Reports from other individuals, groups and or agencies regarding water-related issues: For informational purposes only. 8 Nye County Water District Governing Board June 23, 2014 Walt Kuver related that John Bosta was wrong with regards to the status of the Volunteer Domestic Well Metering Program. All data has been updated as of June 12, 2014. The data from all eight wells shows 0.58 AF per year/per well as the average water use. He emphasized that only one reading per year is necessary for obtaining an average. Donna Lamm noted that this figure was right on target with what the State Engineer has estimated to be the average yearly usage per person.