VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
JULY 6, 2010

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on July 6, 2010, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Karl Gustaveson, and Board Members Ted Miller and Mark McEwen. Secretary-Treasurer Kenyon Leavitt was not present however was participating via telephone. Also present were Kenneth Rock District General Manager, William “Pete” Peterson Interim General Manager, Michael “Boomer” Johnson Chief Hydrologist, Bo Bingham District Legal Counsel and Valerie Martinez taking minutes and other interested parties of agenda items.

President John Paul called the meeting to order at 3:00 p.m.
Karl Gustaveson offered a Prayer and Mark McEwen led the pledge.
Public Comment – There was no public comment at this time.

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

CONSENT AGENDA:

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

1. Discussion & Action - Approve Agenda

2. Discussion & Action – Approve Minutes from 6/15/10 Regular Board Meeting

3. Discussion & Action – Approve Bills Paid - $425,132.03

4. Discussion & Action – Approve Purchase Orders Over $2,500
a. Dell Computers - $4,572.14.00 – Two Computer Systems

** End of Consent Agenda**

5. Discussion & Possible Action – Discuss the status of the transaction with Virgin River 140, LLC (“VR 140”) and the existing agreement for the Virgin Valley Water District (VVWD) to purchase 5 acres from VR 140. Possible Action could include amending the agreement due to Clark County declining to approve dividing out the subject 5 acres that was to be purchased by VVWD

Ted asked if there were questions for Bulloch Brothers as a representative of Bulloch Brothers was present. Victor Campbell came forward to answer any questions asked by the board. Bo asked that in the event that the Board approved the agreement tonight that the legal document will need to contain all needs of the Water District. (I.e. waterlines, utilities ingress and egress easements). Bo said he wanted an open discussion to make sure we are clear on what was needed to be included in the document. Victor said that whatever legal counsel wanted in the document would be what was needed to protect the rights of the water district; that on the record of survey the only easement called out was an ingress and egress, but that other needs could be negotiated with the owner. Bo inquired of Victor what other needs maybe needed. Victor said Michael Johnson would be more appropriate in that discussion. Michael said there was a 30’ easement for waterline, ingress and egress would need to include power, and telemetry. Ted said he was of the impression that the board was going to table this item for two weeks until there was a better idea of the value of the property. Karl said he had a question for Victor, the purchase of this property started in 2008 and what has held up the closing is the re-parcel of this property. Karl asked why it has taken so long and what is the time frame that is anticipated for completion? Victor responded in 1881 there was a fraudulent survey of this property, which included +/- 25 townships surveyed and that there is no evidence of this survey; in 2002 the BLM came in and suspended all the surveys. At that time the BLM had to survey to allow people to patent land and get it from the government. Currently the county is trying to buy the Meadow Land property but due to the surveys being suspended in that area they will not purchase it until there is a new survey. Victor anticipates it could be up to 5 years before the new survey is completed. The County Surveyor will not approve any land division until it is completed. The other issue is NRS states that the Virgin River being navigable water and that it discusses the high water mark and anything that lies within the high water mark is controlled by state lands; after numerous meetings and emails they have been trying to determine the state boundary with this land. Victor stated that this property is a complicated piece of property. Karl clarified so it is possible that the district may obtain a piece of property that they may not gain a deed for on for 5 years. Karl then inquired as to if this was what happened with the City’s parcel that was also purchased in this area. Victor said that the City’s parcel was within the city boundaries and therefore the City had accepted the survey. Karl then clarified that this was the difference between working in the township vs. the city. John Paul then asked for any other questions. John Paul then called for a vote, however Bo then brought before the board that he was in discussions with the Attorney for the party that is holding the trust deed for this property and that time was of the essence for this property. Bo stated that they thought that by allowing this time they were doing the district a favor. They, being the individuals holding the trust that the property owned by Virgin River 140, appears they are in default. The attorney, for the individuals holding the trust, was going to contact his client and respond via email as to if they were going to grant the district a few more weeks to get answers about this property prior to the district spending any more money. Mark McEwen asked if they say no, what their other options are. Bo stated that because they own the trust deed they have the option to foreclose on this property and that is what they have indicated they will do, but because the district has spent significant amount of money on this property there would be some potential equitable relief that could be possibly obtained under the law. Bo stated he would rather see some time allowed and not have the legal fees. John Paul said we can table this item to the last item of the meeting. Karl let Bo know that while he was out that Victor had indicated that it could possibly be 5 years before there was a use of this property. Bo said that in the event that the board decided to move forward on this property the district would have to put in the agreement that the district had rights of use until title can be transferred.

Karl said he was not comfortable making a motion on this item today.

Board then moved further discussion and action to this item to the last item on the agenda.

6. Discussion & Possible Action – Consideration to Approve Donation to VVHS & HMS Spirit Team

Karl Gustaveson said that he would like some discussion on this issue and was not ready for a motion. Karl stated that when the budget was done this year they realized because of the budgetary issues the district was running a deficit and even though it is a wonderful use of money, it is also important to use the money to keep employees employed. Karl further stated that even though it was budgeted this year, with the economy as it is, he did not want to make rate holders subsidize donations.

There was no further comment from board, no public comment and no motion. Item dies from lack of motion.

7. Interim General Manager’s Report

Pete included a written report informing the board that leaks have been spread out and not enough that it has been unmanageable. Walk through with MMC has been scheduled and is being taken care of. Pete didn’t feel that anything with the Conservation Policy needs to be changed at this time. Karl asks that he get a copy of the current Conservation Policy. Michael Johnson stated that it is available on the VVWD web site. The policy is submitted to the State and State Engineers (Water Resources) office. Karl asked if there was a date that the plan had to be implemented on. Pete said it is already implemented, just that restrictions are not implemented at this time. Pete said it does state specific steps to take if there is a shortage. Pete asked for a direction for the possible lease of the River View LLC 188 acres water shares, board gave staff direction to advertise for the possible Lease of said shares.

Karl and John Paul introduced the VVWD General Manager, and made a special thanks to Pete for filling in during the interim and for the great job he has done.

General Manager Ken Rock applauded Pete for the job he has done. He also commended the staff and the job they have done on their own with the direction from Pete and that they have been able to take care of business. He said he will do the best he can to make a stronger and better district by using all of its virtues. Ken Rocks official first day will be the 26th of July.

8. Hydrologist’s Report

Michael handed out his written report and also informed the board that he did go back to DC and met with the congressional delegation on reauthorization of the Rural Nevada 595 Army Corp with the brief summary of the aquifer recharge project and did discuss some of the issues with the Gold Butte NCA. Michael had the opportunity to spend a day with all the congressional delegation members and Dean Heller’s staff. Michael stated that the District has some water quality sampling coming up for the disinfection byproduct rule, which is required in the summer months. Michael stated that the district’s water well operation is currently at a weekly average of 8.2 million, at this time last year we were at 13 million gallons weekly. The district is operating off of 5 wells; reservoir storage capacity is currently at 59%. Michael’s update on Well 34- We do have money with the Army Corp that has been authorized for the arsenic treatment plants and with the left over balance we can use it towards well 34. The specifications are at 95% complete and will have the specifications off to Army Corp by the end of the week to see about funding for the drilling of well 34 which is about a mile north of the reservoirs in Lincoln County. Michael reported that the Habitat Conservation Recovery Plan Executive Committee will be on July 20th in Las Vegas to review those documents and the implementation. Michael reported that there was nothing new with Gold Butte. Michael reported that the national conservation area beaver dam wash has no updated status and it could be years in establishing a resource management plan for it. Ted Miller inquired as to if there were still problems with Well 30. Michael said we did turn it on and we were having problems with high amps, Michael said it kicked out at a 150 amps. Ken Rock asked Michael about the Triltalomethanes (TTHM) and Haloacetic Acids (HAA5) and if we have ever shown anything on this. Michael said no because of our ground water source, but that the district still has to go through that disinfection byproduct rule analysis. It’s all lower than actual standard, but we still have to collect and submit results. Ken Rock wanted clarification on the Half Way Wash project (prototype horizontal collector) and if the district already had the property for this. Michael informed him that that property slated for this was the Virgin River 140 property on the agenda tonight.

9. Public Comment

Morris Workman asked what the amount was for the donation for the VVHS and HMS Spirit Team. The amount requested was $2,000.00. Morris Workman also asked where the location of the 5 acres is and what was the reason it was purchased? John Paul clarified it has not been purchased. Michael said it’s for the Horizontal Collection Well and it’s located near the intersection Gold Butte Road and State Route 170 on the left bank of the River in the river bottom to utilize our surface water rights.

5. Discussion & Possible Action – Discuss the status of the transaction with Virgin River 140, LLC (“VR 140”) and the existing agreement for the Virgin Valley Water District (VVWD) to purchase 5 acres from VR 140. Possible Action could include amending the agreement due to Clark County declining to approve dividing out the subject 5 acres that was to be purchased by VVWD

Bo reported that he had talked with Mr. Morgan (attorney) and he indicated that he had tried to get in contact with his client and was not able to.

Ted Miller made the motion that this item be tabled for two weeks for the July 20th meeting. Mark McEwen seconded this motion and it was unanimously carried. 5-0

10. Adjournment

President John Paul adjourned the meeting at 3:44 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: 2010-07-06 (.pdf 21.K)