GRASS VALLEY, March 1, 2010 - Senior Right of Way Agent Matthew Crowe has become a regular speaker at Nevada Irrigation District's board meetings in the past several months. In December 2009, Crowe requested a change in the district's practice dealing with eminent domain issues. Historically, it had been the preference of NID's board to be apprised of any easement problems before making a final decision to send out notices of intent (NOI) to consider commencement of eminent domain proceedings. But Crowe and other NID staff called for placing the decision solely in the hands of NID's general manager.
This request was met with overwhelming resistance from board members, who refused to be bypassed in the NOI decision-making process.
Then followed three consecutive board meetings where Crowe stood before NID directors and asked for approval to send out NOIs to over 17 property owners in Nevada and Placer Counties. Crowe maintained that NID has made a concerted effort in achieving successful outcomes on most of the easements necessary for three pending pipeline projects, Banner Cascade, Cement Hill and Mount Vernon Road. But while right of way negotiations continue, he has said that construction delays will be likely if some easements are not acquired soon.
At the district's Feb. 24 board meeting, Crowe asked NID directors to approve resolutions of necessity (RON) on three parcels. Following issuance of a notice of intent, if easement acquisition negotiations remain at an impasse, NID may then decide to invoke its authority of eminent domain.
The RON declares that a property is necessary to a project based on three criteria -- public interest and necessity require construction of the project, the project is planned or located such that it will achieve the greatest public good with the least private injury, and the property interests sought to be acquired are necessary for the project. It also notifies a property owner that NID intends to commence eminent domain proceedings.
One parcel, owned by Nevada City Sugarloaf Properties, LLC and the estate of Archibald Mull, sits within the Cement Hill project in Nevada City. To complete this project, the district says it must secure .94 acres for a tank site and 2.11 acres for three proposed easements.
Crowe told directors that negotiations are at an impasse, namely over issues with the tank location and how the easements would affect future use of the property.
Following a two-week continuance granted to the landowners, NID directors heard public comments at Wednesday's board meeting by Kriss Halpern, on behalf of Sugarloaf Properties and the Mull family. The focus of Halpern's objections revolved around the proposed location of the 1-million gallon water tank. NID engineering staff maintain that the .94 acre site on the 111-acre Mull property is the most practical choice, particularly because it rests at the 3250-foot elevation level of the proposed project. This location is necessary to provide optimum gravity feed of water to properties within the Cement Hill CFD boundary.
Given the slope and terrain of the larger Mull parcel, Halpern pointed out, buildable home sites are very limited. He argued that the proposed tank location sits roughly in the middle of the best building sites on the Mull estate, and thus would greatly impact their ability to develop the parcel. Following lengthy and sometimes heated discussion on both sides, NID's board agreed to an additional two-week postponement before voting on the resolution of necessity and to commence eminent domain proceedings. A meeting was scheduled for Feb. 25 between Halpern and NID staff to work on resolving the issue of the tank site.
Two other parcels, located in Placer County, were also on the board agenda to be considered for resolutions of necessity and acquisition through eminent domain. Located within the district's Mount Vernon Road Siphon Pipeline project, the properties are owned by Dustin and Renee Hawkins and Robert and Sharon Hane, respectively.
Early in the board meeting legal counsel Tony Soares reminded the board that issues over adequate compensation were not part of the RON hearings. NID Right of Way agent Anthony Rondoni reiterated this when he approached the board requesting RONs on both the Hawkins and Hane parcels. Nevertheless, Rondoni specifically pointed to compensation as the reason for an apparent impasse in negotiations on the Hawkins parcel. To complete the Mount Vernon project, NID is seeking a strip easement from the Hawkins on .31 acres of the property.
Clearly frustrated with the fact the RON hearing excluded any discussion of compensation issues, Dustin Hawkins nevertheless told directors that he was willing to negotiate with NID. "All I want is someone to look at something as simple as a privacy barrier," he noted. "I'm not happy with the appraisal because it was cut down several times. I'm saying I'm losing something I worked hard to get." Hawkins was making reference to the over 30 trees that NID plans to remove during construction.
In the matter of the Hane property, the owners raised concerns about impacts to their existing and ongoing Christmas tree business. Robert Hane echoed his neighbors' frustrations with the right of way process at NID. "It appears we got to a point of confusion or lack of communication," Hane told the board. "I thought we had the ability to negotiate directly with your right of way staff, but that isn't so, so that's why we're here," Hane added.
Specifically, Hane was dissatisfied with NID's appraisal for compensation of roughly .25 acres necessary for a road easement. Hane claimed that the appraisal didn't take into account the loss of tree planting area for his business.
Both Hawkins and Hane also expressed frustration over the "second appraisal" process required under California Civil Code. According to NID staff reports, the district has "offered to pay the reasonable cost for an appraisal report" ordered by an owner. At issue with both property owners is how the reimbursement process for such an appraisal works.
After hearing comments from the property owners and NID staff, directors also approved a two-week postponement on a decision to commence eminent domain proceedings on the Hawkins and Hane parcels. Both landowners indicated they were willing to work with NID in achieving a positive outcome.
The Mount Vernon project involves construction of a new raw water pipeline designed to transport water currently conveyed by the Combie Ophir 4 Canal. Along with limited access for ditch maintenance, there have been numerous breaches resulting in loss of operation, canal spillage and damage to property. NID anticipates the new pipeline will reduce overall maintenance costs, limit erosion and the potential for overspill, and increase capacity during peak summer months.
NID directors also authorized staff to send out notices of intent to commence eminent domain proceedings on four additional parcels located within the Banner Cascade pipeline project.
Earlier in the meeting, NID directors awarded a $23.4 million construction contract on the project to Lincoln-based Teichert Construction. Submitting the lowest bid among six received, Teichert will include nine local sub-contractors, under a local bidders preference (LBP) agreement established between NID and the Nevada County Contractors Association. At $2.5 million, local involvement represents 14.83 per cent of the contract.
While NID originally budgeted $41 million for the project, Project Manager Brian Powell gave an optimistic forecast on the final cost. "We are reviewing the budget numbers again," Powell told the board. "We are saving a lot of money by doing construction at this time in the economy," referring to what he predicted could be up to a $10 million-savings. Powell also pointed to an earlier decision by NID staff to bring construction management of the project in-house, which will also contribute to cost reduction.
This information pleased Director Nancy Weber. The project lies within her division and Weber has voiced concerns about how constituents in the project area will be treated. "I don't want to see things like portable toilets placed in front of properties, like Teichert has done in the past," Weber noted. "It's important that subs know how to function in this environment as well," she added, voicing appreciation that NID staff would be assuming the role of construction management.
Powell assured Weber that he and his staff have worked to gain the trust of property owners. "We don't want to lose that trust," he said. "We will continue our effort at good public relations on the project."
The next NID Board of Directors meeting will be held on Wednesday, March 10 at 9 a.m. at the NID Business Center in Grass Valley. The public is encouraged to attend.
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