Good afternoon.

Bring this June 18, 2026 meeting of the Secretary of Flood Control Agency Board of Directors to order.

Would the clerk please call the roll?

Thank you.

Director Desmond.

Here.

Director Whom?

Here.

Chairman Kennedy.

Here.

Director Rodriguez.

Director Munoz?

Here.

Director Jennings.

Director Kaplan.

Director Plucky Baum.

Director Holloway.

Director Johns.

Director Chan.

Here.

Director Baines.

And Director Stevens.

We have an eight-member quorum.

Thank you.

Will you please join me with the Pledge of Allegiance?

Pledge allegiance to the flag.

The United States of America.

And to the Republic for which it stands.

One nation.

Good afternoon, ladies and gentlemen.

This meeting of Safca is being live streamed on Metro 14 Live.

SACCounty.gov and is being recorded and will be re-aired on Metro Cable Channel 14 on Thursday, June 25th at 9 a.m.

Thank you.

Thank you.

Our next item is public comments for items not on the agenda.

I do not have any cards.

Is there any member of the public here today that would like to address the board on an item not on the agenda?

Seeing none, our next item is closed session.

We are going to forego closed session as these items have been heard numerous times in closed session, unless there's any objection from a board member.

Hearing and seeing none.

Next item, please.

And the next item are consent matters and items one through 16 are in order.

Okay, we have a motion and a second.

Is there any member of the public that would like to address the board on an item on consent?

Hearing and seeing none.

All those in favor?

Opposed?

Abstain.

Next item, please.

Next item is separate matters item 18, which is a public hearing resolution number 2026 058.

Accepting the annual report on staff vacancies, recruitment and retention efforts as required under AB 2561.

Thank you, Chair Kennedy, members of the board, Jason Campbell, executive director.

As part of the requirements of AB 2561, staff has to report out to your board in regards to our requirements regarding vacancies of positions on an annual basis.

So today we have the report that is required also prior to adopting the budget.

We come become aware of vacancies or future vacancies due to retirement.

But your board has been very supportive in those processes to make sure that our small staff is able to maintain our work moving forward while recruitments are occurring.

So on the on the first page here, you can see that the requirements are really kick in when we have a situation where we have more than 20% of vacancies in any bargaining unit.

As we have a very small staff, it wouldn't take much to get there, but fortunately we do not have that issue as we move forward.

You'll see some of the uh basic uh reporting that goes forward with this uh effort.

So today the public hearing is obviously prescriptive, so as we want to uh make sure that we understand our real uh need here, you can see that overall uh our reporting period over the from June 25 to through May of this year.

Uh we have a date of reporting to June 1st of this year.

Uh the overall vacancy rate was 11 percent.

So that is basically broken down based on uh what we have as far as you know non-management and management positions, yeah.

As we everybody is at will at Safica, we have uh agreements and policies built into place to cover all of the components of what makes up our agreements with our staff, but we have been very successful in maintaining staff as I indicated by recruiting when vacancies occur, but also when we know that vacancies are going to occur, and then we also uh make sure that uh any one of those groups be the whether management or uh non-management positions, uh, we're trying to make sure that we have the staff to be able to take the take care of the work.

And I am kind of working a little bit slow here on purpose.

I'm sorry for that.

So as we uh look at our recruiting efforts historically, we have used temporary agencies for some of the positions.

Uh in addition, we have done execument executive recruitments using your recruiting firms, and we've also done evaluation evaluations of industry groups, but also we have prospected talent directly.

So we are basically uh trying all uh effective ways of finding good staff and good talent, and along with that, we want to retain those individuals so we make sure that we are keeping our competitive salaries and benefits uh in order.

We evaluate uh on a five-year turn, but we also evaluate what's going on specifically with engineering and accounting, you know, very tough to fill positions.

We are constantly keeping track of what's going on with those positions because we want to make sure that we're keeping up with the industry but also retaining staff, and overall, we do have a five-year comprehensive review that we uh uh bring to your board and identify whether or not there needs to be any changes to those salaries or any of the other components of compensation.

So that said, there is intended to be a public hearing receiving this report and understanding uh what exactly our uh requirements are.

Again, we have 11% vacancy over the period that is being evaluated, which does not trigger any of the additional uh components of changing policies or goals.

Any questions from the board?

Seeing none, I will open up the public hearing.

Is there any member of the public that would like to address the board at this time on this item?

Hearing none, I will close the public hearing.

Is there a motion?

I will move to approve the item.

Chair will second.

We have a motion to second.

All those in favor, aye, opposed, abstain.

Next item, please.

Thank you.

The next item is a public hearing.

Resolution number 2026 059 adopting the recommended fiscal year 2627 budget.

Again, thank you, Chair Kennedy, members of the board.

I have to wait for the presentation.

All right, so here we are, bottom budget hearing, June 18th, 2026.

Happy to uh present this once again.

Not many changes since uh the May presentation.

So again, we make budget assumptions based on what we are experiencing in the markets as well as in our construction industry and you know, in general.

Uh these these assumptions have been the basis of the budget for many years, and fortunately, we have not had to uh hopefully knock on wood, not having to happen uh to have major disruptions to affect our budget.

As a reminder, we have four basic funds.

The 325A operations maintenance assessment district number one acts as our general fund, and the development impact fee, the Natomas Basin Local Assessment District, and the consolidated capital assessment district number two are all primarily around capital program.

So those those two three assessment districts and a development impact fee make up our entire budget.

So there was discussion last month in regards to a reserve policy, and the question was raised is what is SafeCause reserve policy.

So today I wanted to go ahead and let you know that we do have the SAFCA Act has called out that we can put it in a as much as a 25% agency reserve policy.

Currently, we are carrying about 11.45 million dollars in general uh uh reserves that are unallocated in our general fund.

So that is basically around 11% of the overall budget that we have, including all of those capital programs.

Along with that, uh we in addition have 5% contingencies built into the funds and the appropriations that are before you, and then and uh beyond that.

Our our other pension obligations uh are held in a 115 trust with the OPEB piece already fully funded and the pension portion of liabilities at 80%, and that fluctuates depending on how staff is working through the retirements and other pieces.

So that does fluctuate a little bit with our small crew.

For our projected sources for the budget overall, you can see 104 million dollars roughly in the overall budget.

Our reserves, we've got some reserves that we're pulling into the budget going forward for this next fiscal year.

You can see fund balance of about 10.4 million dollars, and then the different funds that have funding allocated from them to go into the overall budget.

You can see 88.1 million dollars is uh the primary sources of the funding for all of our work.

You can see on the bottom their bond refunding and issuance.

We are in the process of issuing bonds for both the Natoma's basin local assessment district and CCAD2.

Uh we're anticipating that we'll identify about 50 plus million dollars in bond proceeds for that programs to be able to move forward.

Um, go ahead and next slide, and then our appropriations where where we're planning on spending our funds.

So you can see, of course, uh 70.6 million, the very large portion of our budget is capital program, which is levy systems and infrastructure and real estate and utility relocations.

Along with that, our salaries and benefits down in the uh four percent range.

We have some reserves that are being allocated that will be likely net after bond proceeds.

But you can see we do have some free cash going into next the following fiscal year.

Uh services and supplies and all funds is about 14.6 million.

And as I mentioned previously, we have contingency built into the operating funds as well.

So jumping into the line items for the budget, you can see this is the summary as we've been presenting.

This is the summary of all lines uh for all funds.

And as we move forward, we'll get into the OM a little bit simply because again, salaries are about 4.4 million.

We have services and supplies at about $6 million, and then you I like to mention every time is that that $2.8 million that you see with the parentheses, that's revenue coming in from the other funds for staff time towards projects.

So the other fees are uh paying for the funds for our general fund, so it's reimbursing general fund.

And then beyond that, we do have about 6.4 million dollars that are coming in for the assessment revenue from the for the OM, and you can also see the uh other piece of that uh fund balance that was being carried in.

As required by government code, we have to provide you with our uh salary list and positions and position allocations.

So you can see there is 18 and a half positions.

We have a small change between retired annuitants at the bottom.

So one ad, one delete, and then the salaries and the allocations above that.

So project expenses, as I mentioned, make up the primary load of our uh requirements for appropriation.

So 67 million dollars roughly in projects, and 80% of that is associated with two, which is both American River Common Features, Nathomas, and uh ARCF 16.

And we do have residual work going on up at Folsom, actually quite a bit of work, but it's primarily being performed by the core.

We do supplement in certain areas for relocations and other pieces that are required, including a sheriff's security agreement and things that help advance the work.

Our development impact fee, we we are showing that infrastructure has 10.3 million dollars again.

The development impact fee is intended to supplement the other program projects and make sure that we're getting to our 200-year level of protection and beyond.

So the 10 million that you see here is supporting some of those projects, and we'll get to that in just a second.

But you can also see that you know we are pulling some reserves out to cover those costs, but we also anticipate another $3.2 million in revenue from the DIF from our agencies that are collecting for us.

The Thomas Basin the revenue that we're seeing here is primarily for the bond refunding.

So we have savings on the 2014 bond issuance.

We're gonna capitalize that, and we're gonna generate a little over three million dollars, which will go into the construction funds and other components of uh the NOTOMAS project.

And of course, the consolidated capital assessment district number two.

Obviously a large number for the infrastructure, $48 million, rolling down into some of the provisions for reserve.

That is specifically based on the fact that we are issuing bonds, so we will we're already anticipating having uh provisions for reserves going into the following year, but you can see the bond issuance down on the bottom along with 16 or I believe that's 16 million dollars in uh state reimbursements for work that we advance in conjunction with the state where we advance the dollars to get that work done and they reimburse us.

And this slide here is intended to identify those projects that are you identified in those funds so you can see exactly which projects are being funded by which fund.

So that's basically all I have.

Uh we do have a public hearing, so we're staff is to is uh uh recommending that your board adopt this resolution and provide us with our budget for fiscal year 27.

Okay, I have no members in the queue.

I will open up the public hearing.

Is there any member of the public that would like to address the board at this time on this item?

Hearing seeing none, I will close the public hearing and entertain a motion.

I will move to approve the uh item.

Second.

Okay, we have a motion and a second.

All those in favor, aye, opposed, abstain.

Next item.

Thank you.

Next item is also a public hearing resolution of necessity regarding Sacramento County APN 226 0010-002.

Property at 5625 East Levy Road.

Property only owner is spirit on E and Georgia Avdis.

And this item requires a two-thirds of nine member approval of the past resolution.

Welcome back, Mr.

McDegroat.

Thank you.

Good afternoon, directors.

Matt Grove, real state, and nine, so the property in question is located at 5625 East Levy Road on the land side of the Natomas East Main Drainage Canal West Levy in the Natomas Basin area of Sacramento County.

Acquisition of the property is required for the Nimdeck West Levy Reach G component of the project.

So this property is located in reach G.

You can see on the map here.

Is of the Notomas Levy reaches.

This sketch shows the levy improvements along the east side of the property on East Levy Road, which includes widening the top of the levee and flattening the landside levee slope, construction of a seepage and stability berm, construction of an operation and maintenance road and on the landside toe of the levee, and the establishment of a flood control works protection zone.

This is exhibit shows where the property is located on that reach of the project.

You can see over in the corner there.

We have is the proposed fee acquisition.

It's hard to tell on the on the next few slides, so they're all gonna come together at the end.

But this is showing the fee acquisition, it's uh unit A parcel.

You can see it blown up over in the left-hand side.

This is depicting the access easement, it's the unit B parcel, and you can see it again on the left-hand side corner.

And this shows the temporary construction easement, which is kind of the squiggly path, which you can see blown up in the corner again.

So putting those together is something that's more visible.

You can see them on this slide here.

So the fee acquisition is the red and the easement is orange, and the temporary construction easement is blue.

The fee is needed to construct the levy improvements to ensure that there are no encroachments for excavations under undermine the integrity of the levy and allow for the proper OM of the flood control features to take place.

The permanent access easement is needed to route the project's OM road around the owner's access ramp and connect back to East Levy Road.

And the temporary construction easement is required to replace the owner's fence along the new property line and constructing the replacement ramp and reconstructing the farm road that connects the owner's property to the adjacent property on the south.

Attachment E3 on the staff report is a project description and necessity for the acquisition, the environmental compliance documents and considerations in selecting the mitigation sites, and the design analysis that was done for the relocated irrigation and drainage canals.

On March 7th of 2022, Safica sent a letter to the property owners advising them that the upcoming levy improvements project will affect their property.

On July 28th of 2022, Safica sends a letter to the property owners advising them that Safica was preparing an appraisal to acquire a portion of the property and fee.

On January 11th of 2023, Safica sent a letter to the property owners advising them that the acquisition areas required for the project have been updated to reflect a more current design.

And then on June 22nd, 2023, Safica did provide a formal offer to purchase the property rights, which that time consisted of a fee interest over a portion of the property, permanent access easement, and the temporary construction easement.

On June 24th of 2024, SafeCA and the owners entered into a possession and use agreement.

And this granted SAFCA the possession of the property for the construction and allowed for more time for negotiations.

However, one of the terms of this POA stated that if an agreement on compensation could not be reached and Safica hasn't initiated imminent domain proceedings by March at that time, March 31st, 2025, then the owners may initiate an inverse condemnation action.

So then on February 23rd of 2025, Safica provided the owners with a revised offer that reflected the changes in the areas of the access easement and the temporary construction easement that were negotiated at part as part of that JUA.

On February 30, 2025, also SafeCAV mailed a written notice of the owners of the property, advising them that the board would hold a public hearing on February 20th to consider the adoption of a resolution of necessity to acquire the property rights by eminent domain.

At that February 20th board meeting, upon being informed that the owners wish to extend that PUA, the board continued the hearing till its April 17th meeting to allow for more time for negotiations.

So every time the meeting is uh rescheduled for board meeting, we always have to rescind a new notice out.

So that's kind of a recurring theme as we go through this.

You'll see a lot of those notices.

On March 5th of 2025, Safica had mail a written notice to the owners of the property again, advising that the board would hold a hearing at a regular meeting on March 20th to consider the adoption of the RON to acquire the rights by amendment domain.

On March 10th of 2025, SafeCA and the owners executed an amendment to that PUA, which extended the date that SAFCA must initiate eminent domain proceedings by 60 days to at that time May 31st of 2025.

Then on March 10th of 2025, SAFCA mailed a written notice to the owners, informed them that the matter would no longer need to be held at that board meeting because that PUA was extended.

On April 1st of 2025, CIFA again had a mail written notice to the owners of the property advising that the board would hold a hearing at a regular meeting on April 17th to consider the adoption of the property by a domain.

At that meeting, the board continued the hearing to its May 15th meeting to allow for more time for negotiations.

On April 25th of 2025, SafeCan, say if you can the owners then executed another amendment to the possession use agreement, which extended the date that SafeCo must acquire the property by eminent domain by one year to June 30th of 2026.

So a year later, we haven't reached an agreement in that year time frame.

So then on May 1st of 2026, CEFA had to mail another written notice to the owners advising them that the board would hold a hearing at the meeting on May 21st to consider adopting the resolution of necessity to acquire the property in the domain.

After we mailed that that notice, we then discovered that the exhibits, the property were inadvertently switched with exhibits from the adjacent property.

So a revised notice was sent out and emailed on May 7th.

At that May 21st board meeting, the board continued this hearing to today.

So attachment T to the staff report is the diary of discussions between Safica's right-of-way, acquisition agent and staff and the owners and the representatives in which they discussed the effects of the project on the property and the acquisition process that would take place.

On June 21st of 2026, Safica then again had to file a written note or mail a written notice to the owners of the property advising that this board to hold a hearing today at this time to consider the adoption of resolution necessity to acquire the rights amendment domain.

Nope, missed a couple slides, sorry.

So this exhibit here shows the attachments to the resolution.

It's the uh the platin legal for the fee acquisition easement and the temporary construction easement.

And again, at this point, this is pretty much the end of the presentation, but to remind the board we're here today because we're at the daylight of that possession use agreement clause, which says we need to file imminent domain proceedings at the end of this month.

So that's why we're here before you today to request um consideration of this resolution.

Thank you.

Any questions from the board?

Yeah, Mr.

DeGroot, it um like we always say when we do a run, this does not necessarily mean the end of negotiations, correct?

Correct, absolutely.

We're always we will continue negotiating as all the way to the courthouse steps if necessary.

Thank you very much.

All right, at this time I will open the public hearing.

Is there any member of the board that would I mean of the public that would like to address the board on this item?

Hearing seeing none, I will close the public hearing and take a motion.

I will move to approve the item.

We have a motion and a second.

All those in favor, aye, opposed, abstain.

I will be abstained from the second.

Okay, note that uh uh we have one abstention.

We can't continue, oh it's two-thirds.

I need to abstain.

Okay, so this puts us in a real bad predicament, does it not?

Because we uh have to finish this item before.

Yeah, we will have to continue this till next month.

This item maybe, but is that too late?

By choosing to do that right now, it would expose the agency to inverse condemnation damages.

Right.

Which has been made clear at various points throughout this.

Okay.

Um I will having that information.

Uh I'm going to make a motion to reconsider.

Is there a second?

Okay.

Um we have a motion and a second to reconsider, and then we'll have a vote on the substantive uh motion itself.

Uh all those in favor to reconsider.

Aye.

Opposed.

Abstain.

Still me.

Pardon me.

Still abstain.

Okay.

Uh, is there a motion?

Um, Chair, I just received a text that uh director Pluckybaum is on his way.

How any idea?

The next item.

So I think you have to have a run thing.

But it would be preferable if Mr.

Plucky Bum was here to be able to answer answer it, ask any questions on the item.

Yeah, okay.

Okay, we're gonna take a 15 minutes.

We're gonna take a 15 minute recess.

We'll call the meeting back to order.

Clerk, please call a roll to establish a quorum.

Thank you, Director Desmond, Director Whom, Chairman Kennedy, Director Rodriguez.

Here, Director Munoz.

Here.

Director Jennings, Director Kaplan, Director Pleckibaum.

Here.

Director Holloway.

Director Johns.

Director Chan.

Director Baines.

Director Stevens.

We do have a 10 member quorum.

Thank you, Madam Clerk.

Alright, let's recap.

We're uh still on item 20.

We had a uh presentation by staff uh after this item has been heard in closed session on numerous occasions.

Um we uh came one vote short um of a quorum for a two-thirds vote uh on that item.

It was then reconsidered in which we still remain one vote short.

Um so uh Mr.

Plucky Baum.

Thank you, Mr.

Chair.

My apologies for being late.

I've observed uh the meeting up to this point on YouTube and I'm prepared to vote.

Thank you very much.

Uh so I believe we need another motion to reconsider.

All right, that's correct.

Chair will move.

Okay, vice chair moves to reconsider.

We have a second.

All those in favor?

Aye, opposed, abstain.

All right, okay.

Director Munoz abstains, and now on the substantive motion, uh chair will move the uh the staff recommendation um authorizing imminent domain action to condemn this the real property.

Is there a second?

Second.

We have a motion and a second.

All those in favor, aye, opposed.

I'm sorry, let's do a roll call vote.

Roll call vote on item 20.

Rich Desmond.

Director Hume.

Aye, Chairman Kennedy, aye, Director Rodriguez.

Aye, Director Munoz.

Abstain, Director Jennings, Director Kaplan, Director Plucky Baum, Director Holloway, Director Johns, Director Chan.

Aye.

Director Baines, and Director Stevens.

We do have a nine-member approval.

Thank you.

Next item, please.

Next item is a public hearing resolution of necessity continued from the May 21st board meeting regarding portions of APN 226 001003 property at 5311 East Levy Road.

Property owner Nick Avidis, and this item also requires a two-thirds or nine-member approval to pass resolution.

Mr.

DeGroot.

Here, I got you.

There you go.

Thank you.

So this property is located at 5311 East Levy Road on the landside.

Levy and Thomas East Main Drange Canal, West Levy in the Natomas Basin area of Sacramento County.

And acquisition of the property is required for the NIMDEC West Levy Reach G component of the project.

This is also located in reach G of the project, shown up on the screen here.

So I'm gonna read through the first half of this presentation because they're uh different to this particular acquisition property, then we'll kind of get an abridged view on the the second half.

Knock yourself out.

So this sketch shows the levy improvements along the east side of the levee of the property on East Levy Road, which include widening of the top of the levee and flattening the landside levy toe, construction of the CPU and stability berm, construction of an own inroad on landside levy toe of the levee, and establishment of uh flood control works protection zone.

Again, here is the location of this property at 5311 East Levy Road.

So this attachment attachment D shows uh unit A of the pro of the proposed acquisitions, the fee area up in the left-hand corner.

You can see it um enlarged.

This shows the access easement, permanent access easement unit B and the left-hand corner, enlarged also, and this attachment D3 shows the temporary construction easement, which is kind of a squiggly line up on the left-hand corner enlarged.

So this attachment brings those together and shows how those proposed acquisitions interact.

So you have the fee acquisition in red, which is to construct the levy improvements to ensure that no encroachments or excavations undermine the integrity of the levy improvements.

And also for the proper O and M and the flood control features take place.

The permanent access easement is needed to route the project's OM road around the owner's ramp that to reconnect back up to East Lake Road.

And the temporary construction easement is required for replacing the owner's fence along the new property line and constructing the replacement access ramp and reconstructing a farm road that connects the owner's property to the adjacent property on the north.

So this part of the presentation is very much uh similar to the one we just heard.

So attachments E F, H, I, J, K, L, M N O, P and Q, R, S, T U, are all in order in the staff report as presented to the board.

Your mastery of the alphabet is impressive.

Um counsel just to establish that's this that is enough to establish a record correct.

Thank you.

Continue.

Um so to summarize though, for this request of the board.

Again, there was a possession use agreement signed between uh SafeCA and the owner, and that allowed the agency to have possession of the property for the construction of the project.

However, through that possession use agreement and several amendments, there's a term in there that says the agency must initiate imminent domain proceedings by the end of by June 30th of this month of this year.

So that's why we're here before you today because we're up against that timeline that we need to initiate imminent domain proceedings, or else the owner can file an inverse condemnation claim.

And with that, um as always, we will continue to negotiate with this owner all the way to the court of steps as long as it takes.

Uh, and if we can reach a resolution, so with that we request uh your consideration of this resolution.

Thank you.

Any questions from the board?

Hearing seeing none, I'll open the public hearing.

Is there any member of the public that would like to address the board on this item at this time?

Hearing seeing none, I will close the public hearing and entertain a motion.

We have a motion.

Is there a second?

Chair will second.

All those in favor?

Aye.

Opposed, abstain.

Aye.

Okay.

Or we'll do a roll call.

I think this one's clear.

Okay.

Thank you.

Okay, so we uh just let the record reflect that director Munoz did abstain.

So noted.

Okay.

Thank you, sir.

Thank you.

Appreciate it.

All right.

Our next meeting for the Safica board will be July 16th, 2026.

Correct, Mr.

Campbell?

Okay.

Yep.

Okay.

Thank you very much.

Thanks everybody for being here.

We're adjourned.