VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
MAY 4, 2010

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on May 4, 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 Bo Bingham District Legal Counsel, William “Pete” Peterson Interim General Manager and Mary Johnson taking minutes and other interested parties of agenda items. Chief Hydrologist Michael “Boomer” Johnson was not present.

President John Paul called the meeting to order at 3:00 p.m.
Kenyon Leavitt offered a Prayer and Ted Miller 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 stated that item number “5” should have the time of 1:00 p.m. be added to the date and time of the meeting on the 20th.

Kenyon Leavitt made a motion to approve the consent agenda as listed below adding that the meeting on May 20th will start at 1:00 p.m. Karl Gustaveson seconded this motion and it was unanimously carried. 5-0

1. Discussion & Action - Approve Agenda

2. Discussion & Action – Approve Minutes from 4/15/10 Rules & Regulations Workshop Meeting

3. Discussion & Action – Approve Minutes from 4/20/10 Regular Board Meeting

4. Discussion & Action – Approve Bills Paid - $34,692.47

5. Discussion & Action – Approve Changing Regularly Scheduled Board Meeting on May 18th to May 20th Held in Conjunction with Public Budget Hearing Scheduled per NRS beginning at 1:00 p.m.

** End of Consent Agenda**

6. Discussion & Possible Action – Consideration of Proposed First Amendment to Cooperative Agreement (“Amendment”) between the Virgin Valley Water District (“VVWD”) and the City of Mesquite regarding use of, and access to, equipment and facilities existing at the Scenic, Arizona tank site and construction and installation of other equipment and facilities at such site. The proposed Amendment includes, among other things, provisions to allow additional governmental agencies to use the tank site. Possible action includes, but is not limited to, authorizing VVWD’s Interim General Manager and legal counsel to execute the proposed Amendment, disapproving of the Amendment, or directing VVWD legal counsel to negotiate revisions and changes to the proposed Amendment.

Chief Derek Hughes for the Mesquite Fire Department stated that this item deals with the partnership between the VVWD and the City of Mesquite in communication and gave a short history of how the City’s tower was built on the District’s Scenic Site. The City has been contacted by numerous other governmental agencies desiring to also use the City’s tower. The agreement in effect states that only the City of Mesquite can occupy the tower and this is why they would like to amend the agreement to have other governmental entities to occupy this tower also. Chief Hughes further explained that all entities would pitch in and would assist in paying the power; and that they have some grant money to repair the roof, increase the power, upgrade inside and outside of building, fencing if wanted, etc. There would be no revenues made by the City and it would only be available to other governmental entities with only operational costs to be split.

The City plans on doing Interlocal agreements between them and the other entities. Mr. Andy Gagliardl with Clark County Communications stated that this site was a key element they needed for their site communications and that they have grant money and would be willing to use the grant money to upgrade and revamp the site so they would be able to hit Utah Hill. There was further discussion regarding issues of splitting costs, security and entrance to the site, responsible party for permits and fencing.

Bo stated that he has spoken with City Attorney and that point 7 would be changed so that it is not the District’s responsibility for any permitting issues and that there were a few other things to modify within the agreement. One of his concerns in the MOU (Memorandum of Understanding) was that specific governmental entities were not referenced in the agreement and Bo feels that they should be identified. Bo also mentioned that the air conditioner and generator would need upgraded and we could add this to the agreement and decide how to split costs. Bo further stated that he would like to beef up the indemnification language in the agreement so the District is not responsible for anything that may happen on the tower. The agreement states that the City must maintain insurance, but we may want to put the burden on the City and require them to make sure all other entities have insurance also.

Mr. Jeff Yeagley with Metro Radio Systems Bureau explained that they wanted to increase security in the area and that they were willing to take on any burden or costs to see that this is accomplished. He also stated that there is an engineering study being conducted to even determine what will fit on the tower. There was further discussion about the 911 system and participants on the tower.

Karl Gustaveson made a motion to approve the first amendment to cooperative agreement between the VVWD and the city of Mesquite regarding use of, and access to, equipment and facilities existing at the Scenic, Arizona tank site and construction and installation of other equipment and facilities at such site and direct legal counsel to modify legal adjustments to the verbiage in the contract as outlined by Bo Bingham during the meeting. Ted Miller seconded this motion and it was unanimously carried. 5-0

7. Discussion & Possible Action – Consideration of tendering a defense for Robert Smith, a former member of the Virgin Valley Water District’s Board of Directors, to the Nevada Public Agency Insurance Pool (“POOL PACT”) for the lawsuit brought in federal court by Rebel Communications, LLC against the VVWD, Robert Smith and others. Possible action may include, but is not limited to, direction to VVWD legal counsel to deliver a letter to POOL PACT tendering a defense for Robert Smith for such lawsuit.

Bo commented that because this dealt with litigation that we should keep within specific issue and not speak about the facts of the case and save that for a litigation session. Ted stated he was confused since Bubba was on the board and being sued individually and didn’t the District have a responsibility to cover him since he was a member of the board. Bo stated that to the extent that Bubba was acting within his scope and course of his employment, then yes, he was covered and Bo has already made contact with POOL PACT on that and they do intend to provide a defense for him after they receive a specific letter from District’s legal counsel stating that in their legal opinion we believe that Bubba was acting within his course and duty of his employment and that the POOL PACT should provide coverage. Bo further stated that some other issues he just wanted to touch upon that besides being a board member of the VVWD he was also a councilman for the City of Mesquite and one thing he wanted to put into the letter is that Bubba’s involvement in the case stems from his involvement with the Water District and we will provide coverage up to that point. Kenyon asked about the City also providing coverage for Bubba as a councilman and Bo stated that yes he would be covered by the City and POOL PACT for his involvement as it relates to the City. Bo further stated that all parties listed as defendants would each be covered by their own attorneys by the POOL PACT.

Kenyon Leavitt made a motion to direct legal counsel to submit a letter to the POOL PACT tendering a defense for Robert Smith. Ted Miller seconded this motion.

There was question if verbiage should be included to state Rebel Communication and that coverage is only for while he was working under the Water District and Bo stated that he planned on adding that verbiage, but it could be included within the motion also.

Kenyon Leavitt amended his motion to include that the letter should specify that Bubba’s defense only be for his actions that dealt with the VVWD and reference the Rebel Communications lawsuit. Ted Miller seconded the amended motion.
John Paul called for a vote on the amended motion and it be was unanimously carried. 5-0.
John Paul called for a vote on the original motion as amended, and it was unanimously carried. 5-0

8. Interim General Manager’s Report

Pete’s report informed the board that he really had nothing to report except that there has been a few service repairs. Karl questioned Pete and if he could give an update on well #30. Pete stated that it was not running at this time and as far as when it would be running, he would defer that to Michael Johnson. Karl requested that Pete obtain or have Boomer provide information and an update on well #30.

9. Hydrologist’s Report

Michael had not included a written report and was not present due to an accident in the family.

10. Public Comment

Morris Workman questioned what tower site was in question with the Interlocal agreement with the City and he was informed it sat on the Scenic Site.
Kenyon also commented that there would be telephone interviews for hiring a new GM on May 13th.

11. Adjournment

President John Paul adjourned the meeting at 3:50 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: 2010-05-04 (.pdf 19.K)