Wednesday, May 12, 2021

[Sutter County] Grand Jury raises development concerns

Report: Officials could be jeopardizing future south Sutter County projects

The Sutter County Grand Jury is raising concerns that officials could be unknowingly jeopardizing development of the Sutter Pointe project and other future development opportunities in south Sutter County due to oversight involving an important conservancy board.

Sutter County and Sacramento each appoint five board members to serve on the nonprofit Natomas Basin Conservancy, which was established to oversee a conservancy plan focused on providing a balance between new development and habitat for 22 plants and wildlife species in a large area of land on the south Sutter County border – an area where plans are in place to develop an eventual city called Sutter Pointe.

The grand jury stated a lack of representation and poor communication by the county in recent years has allowed Sacramento to develop beyond the agreed borders within the conservation plan, and large tracts of land in Sutter County that could’ve been used for county development have now been acquired by the conservancy and other developers as mitigation lands for Sacramento development. Because of that, the grand jury stated it has concerns that there is not enough mitigation land available now for the development of the Sutter Pointe project, which is expected to be a major source of jobs and housing for Sutter County.

“The grand jury recommends that the Sutter County Board of Supervisors be kept fully informed about the Natomas Basin Conservancy plans concerning development impacting Sutter County and ensure full representation at each meeting,” the grand jury stated in the latest investigation’s summary released last week. “The board needs to challenge entities that impact Sutter County’s interest in the Natomas Basin area and should additionally renegotiate the conservation plan to keep the benefits laid out in the current plan for Sutter County.” 

Investigation
The grand jury received a complaint regarding the conservancy and the Sutter County Board of Supervisors’ lack of a response to complaints about the management of conservancy lands, which prompted the investigation that saw members review documents and meetings, and interview county staff and conservancy personnel.

Between August and October 2019, four conservancy board members who were local representatives resigned – some cited differences with management, another cited issues with the conservancy’s policy regarding land rents. The grand jury said proper attention to the resignations should have alerted the board to a potential issue at that time. Grand jury members also reviewed board agendas and couldn’t find evidence that supervisors reacted to the resignations at a meeting, or were even aware of the need to expedite selection of new members. Those interviewed cited a variety of reasons for the delay, one of which was that the process of selecting someone for the conservancy board was different from other board seats.

Sutter County staff that were interviewed were also unaware of who the county-appointed liaison was to the conservancy. The grand jury found little in-depth communication existed between the conservancy and the Sutter County Board of Supervisors in an official capacity.

The investigation also uncovered that Sacramento started development in an incorporated section of the Natomas Basin not shown as permitted development in the conservancy maps and therefore not approved under the conservation plan. With the city circumventing the conservation plan by starting a new development, the grand jury stated there is a need to reevaluate the conservancy plan, as the Sacramento project is using mitigation lands in Sutter County, which further reduces the development and mitigation land available for Sutter County.

With a finite amount of land available in the Natomas Basin for development and mitigation, Sacramento County is further complicating the matter as it has plans to develop two new areas in the basin that will require mitigation land. The original Natomas Basin agreement between the city, Sutter County, and the federal and state agencies concerned was for development of 17,500 acres – if one party exceeds its allotment then the other party’s allotment may be reduced to keep the overall development to 17,500 acres.

“If Sacramento County and the city are allowed to develop at their current rate then Sutter County will not have enough mitigation land to develop their allotment of 7,467 acres,” the grand jury stated. “...One thing is clear: Sacramento is growing faster than south Sutter County. Further development will cause the conservation plan to be reevaluated and Sutter County will inevitably lose current acreage for mitigation lands, as there is only a finite amount of land within these borders. Sutter County must act immediately to lessen the city of Sacramento’s control over mitigation in the basin or lose out on the opportunity to develop in that area.”

Findings/recommendations
The grand jury found that there was a serious communication breakdown between the conservancy, Sutter County officials and the county-appointed liaison, both in the time consuming and unclear method of selecting new board members and ensuring the local liaison representative was actively involved. Jury members found no evidence that the board was informed of the resignations, resulting in a lack of corrective measures being taken to ease concerns about the conservancy’s management and the county’s development interests. Also, past board of directors at the conservancy approved risky investments of Sutter County mitigation funds, which are still in place and could lead to financial problems in the future.

The grand jury also found that commissions representing the city of Sacramento (LAFCO) ignored objections from Sutter County on developing outside conservation plan borders and proceeded with development, which jeopardizes the plan requiring renegotiation and impacting development in south Sutter County. Also, current plans for development in Sacramento County, which is not a member of the conservancy, could disrupt plans for development in the Natomas Basin.

They recommended Sutter County supervisors immediately create a procedure to receive briefings of any letters of resignation sent to the board and have the information relayed during public meetings for full transparency. They asked that the board direct the county administrative officer to create a board and commission appointment procedure that is consistent for all boards and commissions to be completed within a set timeframe. Procedures should also be set up by the board to receive regular annual updates from the conservancy on the impacts of all development in the area within the next 90 days.

The grand jury also recommended the board immediately direct its members to the conservancy board of directors to investigate management of the conservancy endowment fund investments and change procedures to minimize financial impact on Sutter County, as well as immediately start proceedings to renegotiate the plan with Sacramento and other permittees to remediate the encroachment done by the city and its impact on wildlife in the new plan – they stated Sacramento County should be included in its negotiations for a comprehensive conservation plan for the Natomas Basin. Lastly, they recommended supervisors direct county staff to prepare a letter for signatures clarifying their position to both Sacramento County and Sacramento objecting to development not meeting the conservation plan.

To view the latest investigation released by the Sutter County Grand Jury, visit https://bit.ly/2QZZ1of. The report regarding development in south Sutter County is the second report released by the 2020/21 Sutter County Grand Jury. A final report is expected to be released in late June or early July.

Appeal-Democrat
By Jake Abbott jabbott@appealdemocrat.com
May 11, 2021

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