Special Meeting Minutes
July 10, 2026
Naco Sanitary District Chair Mr. Charles Behney called the Special Meeting to order on July 10, 2026, at 5:00 PM. Roll call had board members Charles Behney, Stephen Dey, Victor Silva, and Jesus Guerrero present. Luis Silva was excused and absent. NSD attorney Denis Fitzgibbons participated by video conference.
Under old business, the board reviewed the minutes from the June 5, 2026, meeting. No additions or corrections were proposed. Mr. Stephen Dey moved to approve the minutes as written, seconded by Mr. Behney. The motion passed unanimously.
Next, the status of USDA, WIFA, and North American Development Bank (NADB) grants and loans was discussed. Mr. Behney reported conference calls with USDA, RCAC, WIFA, and Kimley-Horn regarding funding opportunities and monitor well replacements. NSD has qualified for one USDA grant to fund half of the Preliminary Engineering Review quoted by Kimley-Horn. The board discussed the required matching funds and confirmed that approximately $30,000 is available within the Capital Reserve Fund, allowing NSD to satisfy matching requirements if necessary while maintaining sufficient operating expenses.
Mr. Behney reported that NSD’s WIFA loan application had progressed to legal review after submitting the board’s previously approved debt authorization, which had been adopted and recorded in August 2025. It was noted that, if approved, a low-interest WIFA loan could reduce or eliminate the need to utilize reserve funds.
The board discussed cooperation with Kimley-Horn, including preparation of a Capacity Assurance Plan related to the Camp Riff project and specifications for replacement of two NSD monitor wells. Kimley-Horn has received information to prepare specifications for construction and well drilling bids. Clear Creek also conducted static water level testing on one monitor well during the week for Freeport McMoran.
The board discussed NSD’s ongoing accelerated monitoring due to elevated nitrate levels and previous coliform. Mr. Behney reported that recent testing from Central Analytical Services measured nitrate levels at approximately 5.5 parts per million at Monitor Well #1, a slight improvement over the previous test. Mr. Dey discussed possible causes of the nitrate contamination, including seepage from the wastewater ponds, suggesting installation of an isolation valve.
Under New Business, the board discussed a proposed $100 per month rent increase for NSD office space leased from R&R Taxation. Members agreed that the increase was reasonable given inflation and current market conditions. Mr. Stephen Dey moved to approve the $100 monthly rent increase, seconded by Mr. Behney. The motion passed unanimously.
The board next considered a proposed employment agreement to replace former Site Operator Chris Wilhoite. NSD attorney Denis Fitzgibbons advised that Chair Charles Behney declare a conflict of interest because he was the proposed employee. Mr. Behney recused himself from discussion and abstained from voting while Vice Chair Stephen Dey presided over this agenda item.
Mr. Dey expressed support for compensating work performed outside the normal duties of a board member, including grant administration and specialized technical work, but stated concerns regarding the structure of the proposed agreement, the minimum monthly hours, and the broad scope of responsibilities described. He spoke of the need for clearer job boundaries, more specific compensation for individual tasks, and the possibility of restructuring the position as an independent contractor arrangement. Attorney Fitzgibbons noted that these options could be considered by the board.
Following discussion, Mr. Dey moved to table consideration of the proposed employment agreement to allow additional revisions and discussion, including the possibility of conducting a public work session. The motion was seconded by Mr. Victor Silva. Following a roll call vote among the eligible voting members, the motion passed unanimously. Mr. Behney remained recused and did not participate in the vote.
During the public comment period, Mr. David Loyd, Ms. Lori Anderson and Naco resident Roland addressed the board. Mr. Loyd spoke regarding the historical volunteer nature of board service, the potential financial impact of creating a compensated administrative position, while Ms. Anderson spoke regarding her NSD tax rates. Mr. Loyd also acknowledged the significant improvements made to NSD operations while encouraging continued transparency and public involvement in future discussions. Mr. Dey thanked the public for their comments and stated they would be taken into consideration.
A motion to adjourn was made by Mr. Behney and seconded by Mr. Dey. The motion passed unanimously, and the meeting was adjourned at 5:20 PM.
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Charles Behney, Naco Sanitary District Chair