October 27, 2014

Ms. Webster

noted that from an administrative standpoint it is easier for the employee to stay with the Nye County Program. She suggested that this item be tabled until the response from PERS is obtained. John MacLaughlin discussed with Ms. Shamrell the benefits of an employee being enrolled in a 50/50 program versus that of a 100% employer pay program. Oz Wichman questioned whether there was a savings to the Water District with future employees enrolled in a 50/50 contribution plan. Ms. Webster explained that could only happen if the employee took a deduction in their base rate of pay which would make up the difference in the added expense to the Water District for PERS contributions. In response to a question from James Eason, Ms. Webster revealed that there would be no added expense to Nye County to set up the 50/50 plan in the Eden accounting system. There was brief public comment and more discussion among staff and board members about base rates of pay and how they are impacted depending upon which PERS funding scenario is chosen. James Eason recommended that this item be tabled until PERS comes back with an answer as to whether the Water District can continue to participate in the Nye County Plan. At that time the board can make a final decision. 5. (00:39:22) Approval or Modifications of the Agenda for the Water District meeting of October 27, 2014. Darrell Lacy requested that Item 11 be moved up on the Agenda to follow Item 7. 6. (00:40:15) For Possible Action – Approval of the Minutes for September 22, 2014. Dave Hall made a motion to approve the Minutes for July 21, 2014. James Eason seconded the motion. The motion was approved with a vote of 7-0 in favor. 7. (00:41:14) Correspondence and Announcements There will be presentation of a plaque to Donna Lamm, former Water Board Member from 2009-2014, to honor her for years of commitment, service and dedication to the Citizens of Nye County. Donna Lamm stepped forward to receive a plaque to honor her for dedication to the citizens of Nye County by serving as a member of the Nye County Water District Governing Board since its inception in 2009. She has played an integral part in setting up the foundation under which the Water Board now operates. Ms. Lamm related that it had been a joy and an honor to serve with this group of talented people

Mr. Kunzi

suggested that Mr. Lach, Water District and Planning staff get together to “brainstorm” options on the issue of boundary lot adjustments. At a future meeting these findings can be presented to the entire board. Mr. Lach also plans on preparing a presentation on this matter. 10. (01:16:10) For Possible Action – Discussion, deliberation, direction and decision by the Board regarding the Special Use Permit Application, Special Conditions of Approval Item Number 22, which states that the grantee shall submit a Water Impact Plan and obtain the approval of the Nye County Water District Governing Board prior to the Board of County Commissioners issuing a MME License. Darrell Lacy related that there has been quite a bit of discussion with staff on this issue. The items that were felt to be the most important are now included in the Medical Marijuana Establishment-Water Impact Plan Application. Michael Lach noted that some applicants were just changing the type of crop being grown but are being held to higher water quality standards. Mr. Lacy felt that there still were a lot of unanswered questions especially with regards to the application of chemical fertilizers. In the future there may be many more grow facilities. Now was the time to set in place a system to gather information on how they are handling water in case there is a need to regulate at a later date. It was related that a monitoring well is not required by NDEP as an MME would be agricultural. The county might require a monitoring well if there is not currently one on site. Water sampling guidelines are included in the application. The MME permit will be renewed annually by the county and that process will require a yearly water chemistry analysis. The cost of drilling a new monitoring well was discussed. There were other options discussed if an MME was disposing effluent into a public utility treatment facility. Michael Lach wondered if other kinds of crops being grown are going to be monitored as intensely as a marijuana farm. Mr. Lacy related that the BOCC made a Special Use Permit requirement part of the MME application process. In the future they may require this for other agricultural operations too. Dave Hall related that dairy operations are required to have monitoring wells. He felt it was important to have baseline information before start-up begins. Greg Dann felt that monitoring was important in Basin 162 especially with the concentration of septic systems in this valley. James Eason stressed that the Water District must provide a set of guidelines so MME operators know what standards must be met. He did not want farms to be regulated out of business. There was discussion of what standards should be included in those guidelines. 4 Nye County Water District Governing Board October 27, 2014 Jay Dixon made a motion that the Board approves the MME Permit Application for all Special Use Permits associated with an MME, with a modification of Question 7 to reflect that the applicant be required to provide a Profile 1 water chemistry analysis from the site once per year. Michael Lach seconded the motion. There was brief discussion among board members and staff about what was included in the Profile 1 analysis and what the cost might be ($400-$500). Public member John Bosta questioned what NDEP requirements may be for grow houses. Darrell Lacy noted that the amount of water used by MME’s is such a low amount that NDEP has exempted greenhouses from regulation at this time. Oz Wichman requested clarification of language at the bottom of the application. It should state that water analysis information is collected for informational purposes and not for enforcement of regulations. There was discussion about requiring a test for coliforms for each application which would be an added expense of about $30. Bob Coache, public member, related this test would not be necessary for the type of greenhouses they were discussing at this time.

Mr. Kryder

related that he has revised Work Plan -10 to be specific to the needs of the Water District. Using a process diagram he showed the role that each staff member plays in the collection and entry of data from the wells. The QA Officer then reviews this data for accuracy. It is hoped that the data may be posted on the Nye County Water District Website in the near future. There was additional discussion about other facets of the data collection process. Mr. Kryder again stressed the importance of having a QA program in order to maintain the integrity, transparency, traceability and quality of the Water Levels Measurement Program that may be adopted by this board.

Mr. Kryder

related that the yearly cost of the program would be approximately $20,000. There was discussion about the possibility of the Yucca Mountain Program coming back and using information that was gathered by the Water District. Mr. Kryder noted that the Yucca Mountain Program could run concurrently with that of the Water District and remain a separate entity even though data may be shared. 5 Nye County Water District Governing Board October 27, 2014 Jay Dixon made a motion that: 1) The Water District adopt the Nye County Water District Water Level Measurement Program and supporting documents and place the program under the authority of the General Manager and; 2) Instructs the staff to revise supporting QA documents to be NCWD specific. James Eason seconded the motion. There was no public comment.

Mr. Leising

presented an overview of the project noting that it will be set up in phases. Possible outcomes for each phase were shown. He discussed the similarities between the Las Vegas and Pahrump basins with regards to water source, lithology, depositional history and climate history. Due to these similarities it is possible that a highly transmissive area or ‘sweet spot’ may exist in the Pahrump Basin as it does in the Las Vegas Basin. The sweet spot is an area where water can readily be absorbed back into the aquifer. The bulk of natural recharge occurs in this area. Artificial recharge could be directed to this spot and provide the most benefit to the basin. He explained various revisions that were made from the initial proposal. The original focus area was limited but has now been expanded to include most of the valley. One of the benefits of this study may be the ability to identify new sources for water. The project is divided into 4 phases. At the end of each phase a report and recommendations will be prepared by Mr. Leising. Continuation to the next phase will not proceed without approval from the Water District. Mr. Leising noted that he can decide to end the project if desired results are not being attained. Mr. Leising explained the work that will be done during each phase and gave an estimated length of time to complete each one. He briefly explained the goals of the Climate-Recharge Proposal. One of the long term benefits would be to establish the effect of short & intermediate term climate fluctuations and trends on water levels at selected wells. Mr. Leising related that he has completed such a study in the Las Vegas Basin with very successful results. He stressed this is a research project and there will be some uncertainty. One benefit of the project is that it will enable the Water District to plan for the future activities. He stressed the importance of collecting good quality data. During conversation with Greg Dann, Mr. Leising related that the data which Mr. Dann was collecting on his own from domestic wells in the valley 7 Nye County Water District Governing Board October 27, 2014 was important even if it did not comply with a QA program as it provides additional knowledge of what may be happening within the basin. Levi Kryder noted that staff was in agreement that this project was relevant and warranted for Basin 162 and it should be funded by the Water District. As far as financing priorities, the QA Program should take precedence over Mr. Leising’s project if funding was an issue at this time. The next step in this process is to prepare a contract that can be brought back for signatures at a future meeting.

Mr. Leising

spent some time answering questions from board members and staff. Darrell Lacy felt that this project might be delayed until the Groundwater Management Plan Committee decided which projects to pursue and their order of importance. Greg Dann, who is also a member of the GWMP Committee, felt that this project will likely be considered one of the committee’s top priorities. Mr. Dann made a motion to take a vote to accept both proposals as described today for a cost not to exceed $58,450 and to put together a contract between Joe Leising and the Water District. There was other discussion among board member regarding the project and a suggestion by Dave Hall that additional funding for projects may be obtained by soliciting contributions from private organizations. Michael Lach seconded Greg Dann’s motion. The motion passed with a vote of 7-0 in favor. Greg Dann thought that there would not be much interest from the private sector in contributing funds to the Water District for future projects, even though he thought it was a great idea. 16. (03:36:10) For Possible Action - Discussion, deliberation, possible decision and instruction to staff regarding a policy on water importation, exportation and examination of options for the same and all other items properly related thereto Oz Wichman related that previously there has been some discussion about importing water into the Pahrump Valley from outside Basin 162 and from a portion of Basin 162 located within Clark County. Yet, Nye County has been involved in a lengthy protest proceeding regarding exportation of water from the Railroad Valley into Las Vegas. These two actions appear to directly contradict one another. James Eason requested that the Water District adopt an official position on the importation and exportation of water within Nye County as it may be beneficial in future negotiations with other water regulatory agencies. Darrell Lacy noted that it will never be an easy task to approve an inter-basin transfer by the Water District since it will require a super majority vote from both the BOCC and the Water Board before applying for approval from the State Engineer. He related how a Special Use Permit could be used in this circumstance to approve or deny a project. The validity of a project must be proven. There are currently 2 inter-basin transfers that have been approved in Nye County: One for the Town of Beatty and another for the Town of Tonopah. There was discussion among members about potential importation of water from Trout Canyon, located in Clark County, to the Pahrump Valley. Greg Dann stressed the importance of having strong scientific data to support the county’s position on importation or the exportation of water. Michael Lach related that before data gathering occurs one must find what obstacles may prevent this plan from moving forward.

Mr. Eason

emphasized the importance of not appearing foolish in the eyes of the State 8 Nye County Water District Governing Board October 27, 2014 Engineer when it comes to making decisions about the importation or exportation of water within the county. Oz Wichman proposed a policy for the board to consider. His proposal would include, as a first step, a cooperative agreement between all parties involved in a plan. There was discussion about the rights of “stakeholders” that may be affected by a transfer of water. Members of the public provided information and expressed their opinion on what direction the Water District should take in this matter. James Eason made a motion to direct staff to come up with a policy based upon a proposal by Oz Wichman regarding the importation and exportation of water within Nye County, and submit that policy back to the Water Board for discussion and approval. Dave Hall seconded the motion. There was a brief discussion about who would be involved in formulating the policy. The motion passed with a vote of 7-0 in favor. 17. (04:23:40) 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 in general there were no new applications that were of concern to the Water District. Upon questioning, Bob Coache, former DWR water engineer, related that filing a Protest with the State Water Engineer could be expensive, time consuming and would not be considered more significant than filing a Comment letter outlining their concerns. He related that Extensions which are filed in Pahrump get, at least, to the Deputy level before being approved. He noted that the State will consider the transfer of water rights from the valley floor to the fan in some instances. 18. (04:33:00) District Member, Staff and Liaison Reports/Comments b. Board Reports I. LVVWD/SNWA – Darrell Lacy . None c. Staff Reports: I. Darrell Lacy

Mr. Lacy

related that he met with members of the Amargosa community to discuss a proposal that will limit the minimum lot size to 5 acres for Parcel Map applications in the Amargosa Valley. It will be presented to the Amargosa Town Board for their input before it comes before the Water Board for further discussion.

Mr. Lacy

related that Civilwise Engineering would like to make a presentation to the Water Board regarding their plans for a RV Park and lake. The Water Board may want to weigh-in on the issue at a future date before a final decision is made by the RPC and BOCC. Michael Lach requested that staff provide an evaporation rate chart to the board that would be a good reference when addressing requests to construct lakes. Greg Dann discussed how filling of a lake may negatively impact wells in the surrounding area. II. Oz Wichman

Mr. Wichman

related that the Shoshone Estates Water Company contract has been signed and the Water District will be able issue a check very soon. He is now in the process of handing over management of this project to Day Engineering, although he is always available to assist with issues that arise. 9 Nye County Water District Governing Board October 27, 2014 He noted that he is working on a budget for revision of the Water Resources Plan. III. Levi Kryder

Mr. Kryder

discussed his latest efforts regarding the Trout Canyon water export/import proposal. He is currently working on getting an agreement signed with Clark County giving Nye County approval to export water from the Trout Canyon Spring. IV. John Klenke

Mr. Klenke

discussed his latest efforts regarding the Water Levels Measurement Program. He has been working with UICN to bring back into the program seven well that were formerly included but have not been measured for several years. . d. Project Status Report Nothing new to report e. Board Liaison Report I. Frank Carbone As a liaison to the RPC, he has been working with them to have water related proposals forwarded to the Water Board for an opinion. The BOCC also plans on doing the same thing. f. Report from other individuals, groups and or agencies regarding water-related issues: For informational purposes only. None