Regular Meeting of the Board of Directors
August 5, 2020
(Meeting will be held electronically. Click here to attend.)
4:00 p.m. – Executive Session (closed)
5:30 p..m – Public Session (open)
Upcoming Regular Meetings
- October 7, 2020
- December 2, 2020
- February 3, 2021
Meeting facilities are accessible to persons with disabilities. If you require special assistance to participate in the meeting, notify the Conservancy’s office at (916) 649-3331 at least 48 hours prior to the meeting.
1. Executive Session
Executive Session is scheduled for real estate.
2. Call to Order of the Regular Meeting of the Board of Directors
The Board Chair will call the meeting to order if a quorum is present. Announcements by the Board Chair or Executive Director may be made at this time. Board members may make announcements at this time as well.
3. Public Comments
Opportunity for members of the public to address the Conservancy’s Board of Directors.
4. Implementation Annual Meeting
IMPLEMENTATION ANNUAL MEETING (Implementation Agreement §5.4)
A. Meeting notes minutes were contained in the June 5, 2019 Board of Directors meeting minutes agenda, previously made available to the Board and approved by the Board.
B. Discussion of Annual Report. Concerns, comments, recommendations.
C. City of Sacramento comments.
D. County of Sutter comments.
E. California Department of Fish and Wildlife comments.
F. U.S. Fish and Wildlife Service comments.
G. Adjourn Implementation Annual Meeting.
5. Approval of the minutes
All items listed under “Action by Consent,” including minutes, are considered and acted upon by one Motion. Any Board member may request an item be removed for separate consideration.
The Board Chair will request approval of the minutes and consent items of the Board of Directors meeting of June 3, 2020.
6. Request for Proposals – Audit Services
The December 31, 2019 financial statement audit reported at the June Board meeting concluded the current contract between the Conservancy and Gilbert CPAs.
The Conservancy has had other accounting firms over the years conduct financial statement audits. The Conservancy has prepared a Request for Proposals (RFP) designed to solicit responses from qualified accounting firms to conduct audits for fiscal years 2020, 2021, and 2022. Responses to the call for RFPs will be presented to the Board at its October 7, 2020 Board meeting for selection of a responding, qualified accounting firm beginning January 1, 2021. The contract is proposed for three years with two one-year options to renew.
Conservancy staff recommends the Board authorize the release of the RFP for audit services with the intent to obtain responses from multiple qualified respondents.
7. Request for Proposals – Land Management and Maintenance
The three-year term on the Conservancy’s land management and maintenance contract is expiring at year’s end (see Board resolution #17.10.09). Management requests the Board authorize the release of a Request for Proposals (RFP) in order to obtain submissions from qualified firms for a three-year engagement as a Conservancy land management and maintenance contractor beginning January 1, 2021. The goal is to have multiple submissions and from that a recommended land management and maintenance contractor for the Board to consider at its October 7, 2020 Board meeting.
(Note: A significant part of the Fisherman’s Lake Area Reserve Area is managed under contract with HRS, Inc., and is not a part of this agenda item. Much of that area under management is SAFCA property.)
8. Employee Handbook update
The Conservancy’s Employee Handbook was last updated on August 7, 2019. This policy is presented for Board review and approval with minor changes and adjustments as suggested by legal counsel with regards to COVID-19.
9. Audit Committee Charter update
The Conservancy’s Audit Committee Charter is presented for Board review and approval with minor updates. The policy was last updated October 2, 2019.
10. SAFCA/HRS land management agreement
HRS will have completed its three year agreement for Sacramento Area Flood Control Agency (SAFCA) Land Management Agreement on December 31, 2020. The contract is three years with an option to extend for two additional years. The Conservancy would like to exercise the renewal option under the terms of the contract. Staff recommends approval of the two-year extension with HRS.
11. SAFCA enter and construct agreement
SAFCA, the U.S. Army Corp of Engineers and the Central Valley Flood Protection Board are constructing improvements to the Sacramento River East Levee and relocating the Natomas Central Mutual Water Company Riverside Canal. This construction requires an Enter and Construct Agreement as the improvements are on the Conservancy’s Alleghany and Cummings properties. After work activities on Alleghany or Cummings are completed SAFCA has assured the Conservancy that it will be compensated in the event of crop loss or damage to soil related to construction activities.
12. 2020 Mid-Year Budget Revision
A mid-year budget revision is present for Board review. Several line items have been adjusted some up and some down based on current needs. Most notably is the addition of Board-approved land acquisition funds and additional legal expense for aforementioned land acquisitions. Staff will present further details at the meeting.
Staff is recommending Board approval of the mid-year budget revision.
13. City of Sacramento report
Report from the City of Sacramento regarding HCP-related activity and other topics.
14. Financial statement review
Financial statements will be provided for the period ended June 30, 2020 (unaudited). Additional financial information will be provided.
15. NBHCP Finance Model sensitivity analysis
As a result of conversations some months ago with senior City of Sacramento finance officials regarding the long-term adequacy of the NBHCP fee, Conservancy management engaged in a series of conversations with Economic and Planning Systems (EPS). EPS is tasked each year with recalculating the NBHCP Finance Model, and its work in the recalculation effort has positioned the firm to be especially knowledgeable about NBHCP implementation finance. Accordingly, excellent support was available to the Conservancy as it contemplated some of the larger questions City management posed that test the NBHCP Finance Model. See the “sensitivity analysis” finalized by EPS and shared with the Board.
Conservancy management will present to the Board the results of the sensitivity analysis that has been completed in response to City management’s questions. In brief, if the Conservancy accepts existing, accepted assumptions, the NBHCP fee that is currently in place is adequate over the long term. However, if less optimistic assumptions are considered, there is an underfunding. In all scenarios–each one less optimistic than the current assumption that drives the NBHCP Finance Model calculation–the delta is not extraordinary, but should be addressed.
As we approach the season where the Conservancy conducts the 2021 NBHCP Finance Model recalculation, which begins in a couple of months, a harder look at that nexus between the current assumptions used and those that are less optimistic will be considered. In the meantime, Board members are invited to review, comment upon and make recommendations on this important aspect of the Conservancy’s mission as we move into budget and NBHCP Finance Model recalculation season.
16. Executive Director’s Report
Various matters for Board members’ general information will be presented by the Conservancy’s Executive Director.
Official adjournment of the meeting.