Nevada City Police officers and members of the Nevada County Sheriff’s Narcotics Task Force teamed up Friday to arrest an alleged drug dealer living in a transient camp on Sugar Loaf Mountain. “There had been a rumor about drugs up there,” said Nevada City Police Chief Jim Wickham. Nevada City purchased the 30-acre Sugar Loaf Mountain in 2011 for $450,000 to preserve it as a public space free from development and subsequently annexed the area into the city’s boundaries. The area off Coyote Street, which has hosted a number of transient camps and which has historically been treated as a …