August 24, 2015

Mr. Dann

felt that the budget for FY16 could not be supported by the current $5 per parcel fee that the County collects in support of the Water District. Ken Searles questioned the legality of the parcel fee. Mr. Dann noted that we need a plan for the over-budgeting of money by the Nye County Water District. Darrell Lacy suggested that feedback be collected from other members of the board about concerns that they may have. The closeout of the budget from FY15 will soon be complete and, going forward, the next budget report will accurately reflect the true status of Water District funds. He explained that any budget must reflect carryover expenditures and funds from the previous year as is required by state law. 3 Nye County Water District Governing Board August 24, 2015

Mr. Lacy

related that there are additional funds coming in over the next 5 years for a DOE study that will help augment the salary of John Klenke. He also suggested that a more detailed discussion of the budget be continued to another meeting so that he has time to prepare since the Chair did not communicate to him that there would be a budget debate at this meeting. During public comment Horace Carlyle from Tonopah related that he would be prepared to pay a $20 parcel fee if it could be shown that citizens were getting any value for their money. He noted that Mr. Lacy was not proposing that the entire budget be spent. He felt that the attitude of the Water Board was demeaning to staff. He was all for dissolving the Water Board if its members were not acting in good faith. “Go ahead and throw the County at the mercy of the State by dissolving this board.” John Bosta in Pahrump supported the removal of the current General Manager and finding a more cost effective replacement (see attached). Kenny Bent felt that certain staff duties could be assumed by members of the Water Board in order to reduce budget expenditures. Gregory Hafen II clarified that the ByLaws stipulate a permanent replacement for the General Manager position cannot be a member of the Water Board. Due to the contentious nature of this discussion, Tim Hafen suggested getting the Attorney General’s opinion about who is qualified to assume the position of General Manager. John Koenig reminded everyone that the current budget was accepted in vote of 5-2 by members at an earlier meeting. Dave Hall suggested that staff come back with a clarification of expenditures for FY16. Greg Dann stated he was against this budget. Upon questioning Darrell Lacy related that there would be carryover from the FY16 budget into FY17 but did not know the amount at this point. James Eason asked members to decide which direction they feel they want this water board to take in the future: Who should be guiding the group and to consider if the water board should be disbanded. Ken Searles made a motion to table decision on this item until next month until it is determined whether or not the Water District has a legal funding source which will allow it to continue operations. Dennis Gaddy seconded the motion. There was other public comment taken. James Eason felt that waiting for the Attorney General’s opinion would paralyze operations of the Water District. Jim Weeks thought that this agenda item appeared to be “punitive” and would not lead to fixing the budget. A vote was taken and the motion failed with a vote of 3-4 against passage. James Eason, Dan Sweeney, Jim Weeks and Dave Hall cast the dissenting votes. Dan Sweeney, a new member on the board, related that he needs a more detailed breakdown of the budget before he is able to go forward with a vote on whether or not to replace Mr. Lacy as General Manager. James Eason related that the Water Board needs to provide a clear definition of what it wants to be. With that, he made a motion that a committee made up of Greg Dann, Darrell Lacy and Oz Wichman should come back in 3 months with a plan and a direction that addresses options 1-6 of Agenda Item 11 as presented, or disband this Board if no actual plan is submitted. Dan Sweeney seconded the motion. Kenny Bent felt that input needs to be obtained from other entities besides the chair and staff. Ken Searles hoped that the BOCC would be able to address the legality of funding for the Water District. 4 Nye County Water District Governing Board August 24, 2015 The motion passed with a vote of 7-0 in favor. Jim Weeks left the meeting at this time.

Mr. Wichman

discussed his upcoming project that will determine the number of water rights that have been over-dedicated to subdivisions in Basin 162. It will take about a month of his time to capture those numbers. He also related that he will have an agenda item ready for the next meeting that will address the outreach programs that he has proposed for Beatty and Tonopah. III. Levi Kryder

Mr. Kryder

revealed that he has recently submitted his resignation to Nye County. Oz Wichman felt that losing Levi will put a big gap in the water science program. He noted that it may be necessary to do a short-term contract with Mr. Kryder, through the end of FY 16, in order to fill in those gaps. IV. John Klenke

Mr. Klenke

updated the Board on projects in which he is involved. All water level data is now ready for posting to the Water District website. He discussed new wells that will be added to the program in northern parts of Nye County. d. Project Status Report Darrell Lacy briefly discussed the projects that are included in the status report. He also talked a little about the Resource Management Plan that is being proposed by the BLM. This is an example of how Levi Kryder can be a valuable asset when dealing with water management plans proposed by the Federal Government that could adversely affect Nye County. Oz Wichman related that the State Engineer was very pleased with steps that have been taken in development of the Groundwater Management Plan for Basin 162. It is crucial to continue the good relationship that has been established with the DWR. Mr. Wichman discussed recent developments in Eureka County. Citizens of that area were in favor of being designated a critical management area and have shown respect and a spirit of cooperation with the State Engineer. e. Board Liaison Report I. Dan Schinhofen No comments f. Report from other individuals, groups and or agencies regarding water-related issues: For informational purposes only. None 5 Nye County Water District Governing Board August 24, 2015