VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
MARCH 16, 2010

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on March 16, 2010, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Karl Gustaveson, Secretary-Treasurer Kenyon Leavitt, and Board Members Ted Miller and Mark McEwen. Also present were William “Pete” Peterson Interim General Manager, Bo Bingham District Legal Counsel and Mary Johnson taking minutes and other interested parties of agenda items.

President John Paul called the meeting to order at 3:03 p.m.
Mark McEwen offered a Prayer and Karl Gustaveson led the pledge.
Public Comment – There was no public comment at this time.

Discussion: Board Comments - None
President of Board Comments - None

CONSENT AGENDA:

Kenyon Leavitt made a motion to approve the consent agenda as listed below. Karl Gustaveson seconded this motion and it was unanimously carried. 5-0

1. Discussion & Action - Approve Agenda

2. Discussion & Action – Approve Revised and Amended Minutes from 2/2/10 Closed Session Meeting

3. Discussion & Action – Approve Minutes from 2/22/10 Special Meeting

4. Discussion & Action – Approve Minutes from 03/02/2010 Regular Board Meeting

5. Discussion & Action – Approve Bills Paid - $382,281.53

6. Discussion & Action – Approve Purchase Orders Over $2,500
a. Iceberg Air Conditioning & Heating - $3,995.00 – 4 Ton Split System Heat Pump
b. Trace Detect - $27,330.00 – Renewal of Service & Maintenance Contract for Arsenic

7. Discussion & Action – Approve “Will Serve” Letters
a. Amended Santa Theresa Estates – 22 Additional EDU’s
b. MSM 0013-09 – A Minor Subdivision – 4 EDU’s

Contingent upon meeting the Criteria to Ordinance II

** End of Consent Agenda**

8. Discussion & Possible Action – Consideration to Review, Revise, Amend and Approve the Parameters for Leasing of Irrigation Shares Owned by the District

Kenyon commented that it seems like what we’ve been doing is working and doesn’t see why we need to change. It was discussed that these parameters were adopted in March of 2009 and in that motion it was decided to bring them back annually in March for review.
Karl commented that he liked the idea of the one year lease, the no sub-leasing without the District’s prior approval clause, but he would like to see the District increase the minimum bid to $600 per share from $300.
Kenyon asked Karl why he would like to increase and Karl stated that with what the District pays for water, $300 is such a small amount and even $600 was a good deal and seems more appropriate with the District’s current financial situation. Kenyon stated that he understands that we get what we can out of it, but when we bought the water, leasing the water was not to re-coup the purchase price. The lease amount beginning at $300 was further discussed with comments that it was not economical for the farmers to grow alfalfa paying more than $300; that the idea of the District leasing was not to make it profitable or break even; that there was no cap on the bidding and that price could go up; and that the District at some point may be able to use this water in the system.
Public comment was offered by Kraig Hafen and Robert Smith.

Karl Gustaveson made a motion to not alter our current water shares offerings and policy at this time. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0

9. Discussion & Possible Action – Consideration to Lease Sixty Four (64) Shares in the Mesquite Irrigation Company Owned by the Virgin Valley Water District and the Parameters and Terms for the Lease of Such Shares

These shares are currently being leased and that lease contract will expire April 1, 2010. We would advertise for an auction as in the past.

Kenyon Leavitt made a motion to advertise for the lease of the sixty four (64) Mesquite Irrigation shares, at the parameters that were just voted on, for two weeks and hold the auction on the date of our second meeting in April, April 20, 2010 at 10:00 a.m. Ted Miller seconded this motion and it was unanimously carried. 5-0

10. Discussion & Possible Action – Consideration to Approve Purchase of New Truck for Treatment Department and Surplus 2001 F-150 to the Highest Bidder

Pete explained that the truck he wishes to replace is a 2001 F-150 with over 121,195 miles. This truck was originally purchased for the meter department, and although it has been maintained properly, time, use and hard miles have had its toll on this vehicle. The truck has had problems and has been in more than one shop for repairs. The driver of this truck works independently and has been stranded when the vehicle has failed. Pete stated that the truth is that this truck is just worn out. Pete obtained quite a few bids with Parkway Motors coming in at a low price of $14,386 for a 2010 F-150.

Karl Gustaveson stated that we do have a truck in the budget for this year and if we don’t act on this at this time, we would have to act on it in next year’s budget anyway and in his opinion we should go ahead and take the lowest bidder.

Ted questioned government contracts and after looking at bids, this truck’s base price is $22,795 and with the Government Price Concession, the price drops to the $14,386.

John Paul stated that he thought it would be prudent on the District’s part to replace this vehicle.

Karl Gustaveson made a motion to accept the bid from Parkway Motors for the purchase of the 2010 F-150 for $14,386 and to surplus the 2001 F-150 to the highest bidder. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0

11. Interim General Manager’s Report

Pete stated that the plan he has been working on to cut back on freight charges for chemicals has pretty much been finalized and has resulted in a pretty favorable outcome for the District.
The leak at the end of Ben Franklin Parkway has been repaired and is back in service.
The Arsenic Project is just about complete with only a few repairs and warranty issues to be completed. Pete also reminded everyone that the Open House for the Arsenic Treatment Plants would be at Plant 27 located at 712 Hardy Way from 9:00 a.m. to 1:00 p.m. on Wednesday, March 17th.
John Paul stated that he would like to commend Pete on a stellar performance and that he was greatly appreciated and highly respected. Karl and Ted also issued words of praise and thank you for staff’s work on the budget.

12. Hydrologist’s Report

Boomer was not present due to being in Carson City at the Legislative Special Session but had included a written report. He reminded the board that the City of Fallon would be conducting a mandatory pre-bid meeting at the District offices on March 17th. The 2009 PRV Project is all but complete with PRV’s being installed on Horizon and Hardy Way, Horizon and Pioneer, Red Hills Parkway and Pioneer and Greens Way and Hardy Way and that pressure setting were to be completed by VVWD staff. Boomer also informed the board what actions he has taken regarding
the District’s Water Rights; meetings attended regarding Tule Desert, Halfway Wash, Nevada Water Resource Association (NWRA) and the US Fish & Wildlife Service.

13. Public Comment

Morris Workman with the Mesquite Local Newspaper questioned who currently leases the 64 shares (River View, LLC) and if the $300 lease amount was per share or per acre-foot (per share).

14. Adjournment

President John Paul adjourned the meeting at 3:33 p.m.

(NOTE): The minutes of this meeting have been tape-recorded and will remain on file in the District office for a one-year period for public examination.

• Board Meeting Minutes: 2010-03-16 (.pdf 18K)