Diversion Authority approves six-month consulting agreement with Jody Smith to finish land-acquisition negotiations

The Diversion Authority on Feb. 6 approved a consulting agreement with Jody Smith to assist the authority with remaining land-acquisition and eminent-domain negotiations tied to the diversion project, voting unanimously at a special meeting.

The agreement pays Smith a flat fee of $12,000 per month for six months (February through July) and, if services continue after Aug. 1, $130 per hour. The contract requires Smith to act as an independent contractor, carry her own general liability insurance, pay her own taxes and be reimbursed for expenses; a 30-day termination clause applies. The authority’s staff said court or subpoena appearances after Aug. 1 would be billed at the hourly rate.

Board staff summarized Smith’s duties as assisting with ongoing negotiations related to land acquisition—primarily with Cass County Joint Water Resource District and the MCCJPA—negotiating with landowners and their attorneys, coordinating with legal counsel, reporting to the executive director and working on environmental monitoring easements and forest mitigation matters. The presenter referenced section 2.01 of the draft agreement for a duties summary.

Board members asked several questions before the vote. Commissioners sought clarity on the 12-to-15-hours-per-week estimate in the contract and whether a cap or amendment should be in place if substantially more time were required. Mr. Shockley said the authority could amend the agreement or have staff perform the services if additional time were needed; he described the six-month flat fee as a transitional arrangement to let the new executive director evaluate long-term staffing needs. "She is taking the risk that there’s more time than she's estimating per month involved," Shockley said, describing the flat fee as an allocation of risk between the consultant and the authority.

Deputy Executive Director Robert Wilson provided compensation context, saying the current salary for the director-of-lands position is $194,593 and that the compensation study’s 50th percentile for the role was $171,920.67. Several members pressed on reconciling those salary figures with the consultant rate and the implied annualized hourly rates, and members said the board should revisit long-term staffing and pay decisions once the new executive director is in place.

Supporters on the board cited Smith’s institutional knowledge and experience in eminent-domain negotiations as the reason for the contract. Commissioner Campbell said, "I think she's got great skills," and other members said the six-month cap made them comfortable because it limits the flat-fee term and allows the authority to adjust later.

The motion to approve the agreement was moved, seconded and approved on a roll call vote with all members present voting in favor. The authority announced its next meeting for Feb. 27 and adjourned.