VIRGIN VALLEY WATER DISTRICT
BOARD OF DIRECTORS
WORK SESSION
VIRGIN VALLEY WATER DISTRICT OFFICE
SEPTEMBER 29, 2010

Minutes of a Work Session of the Virgin Valley Water District Board held on September 29, 2010, at the Virgin Valley Water District Office at 5:00 p.m. Attending were President John Paul, Vice-President Karl Gustaveson, Secretary-Treasurer Kenyon Leavitt and Board Member Ted Miller. Board Member Mark McEwen was not present. Also present were Kenneth Rock General Manager, John Gleave District CFO, and Valerie Martinez taking minutes and other interested parties of agenda items.

John Paul opened the meeting at 5:08 p.m.

Kenyon Leavitt offered a Prayer and Karl Gustaveson led the pledge.

Public Comment – Sandra Ramaker wanted to thank the board and manager for getting her the information she had requested.

1. Discussion– Development of a Mission Statement for the District; no action will be taken. Any adoption of said Mission Statement would occur at the next regularly scheduled meeting.

John Paul informed everyone that no action for approval would be made tonight. This was to develop a Mission Statement and that the adoption would happen at the next regularly scheduled board meeting. Ken Rock said there were three documents before the board to work from. The original offers for Mission Statements: 1-Meet the water needs of the Bunkerville and Mesquite communities; 2-Provide safe and dependable drinking water at the lowest cost; 3-Serve the Virgin Valley with water to meet all of the community needs; 4-Water for everything and everyone in the Virgin Valley; 5-Water for quality business, play, and life in Mesquite and Bunkerville; and 6-Reliable, safe, and plentiful water for desert life today and tomorrow. Also included was a survey taken by the Mesquite Local and an email from Tim Hacker, City Manager who had some good suggestions for mission statements. Ken said the City Motto is “From Perseverance to Prosperity”, which is nice and short. Ken said that we could also brain storm and mix the groups favorite words. John Paul likes the word prosperity. John liked that we are trying to persevere and put our ducks in a row, and that reason was for prosperity. Karl Gustaveson said that looking at the original statements and the survey, the second and the fifth got the most votes and they make sense; both indicate safe water one saying plentiful and the other being dependable maybe we could use a combination of both. He went on to say we could take out Mesquite and Bunkerville, that we serve an operating area and it may be different in the future and we would want this statement to be long term. Kenyon said we could insert Virgin Valley. Ken stated that Mr. Hacker had indicated that he like 5, with no mention of the area, but that he liked that it’s a way of life in Mesquite. Ted said there is a concern out there about it being safe, and the need for RO systems, and would like to see safe in the motto. Kenyon liked 2; it has our goal of providing safe and dependable drinking water at the lowest cost. Ted stated he would like to see at the lowest cost taken out. Kenyon stated that low cost is still our goal and what is low to one may not be low to another. Karl said maybe we could replace with reasonable economical rates or reasonable rates. Kenyon then stated that the board could remove “at the lowest cost” and have it worded at Provide safe and dependable drinking water. Ted said he liked that, simple and says it all. Karl said he would like to see meeting the needs of today and tomorrow. Kenyon then modified it to provide safe and dependable drinking water for today and tomorrow. Ted agreed. Ken then said that we are in the water business but not only drinking water; he would like incorporation all of the area’s water resources. Kenyon said our primary concern would be potable water, even though we hold a large stock in both irrigation companies. Ken said if we look at the needs of non-potable use that it will leave more water for potable use and allow for a more economic development of the area. It would also reduce the cost of pumping treating and delivering potable water if there was a shift in the use of non-potable water. Ted suggested that we use reliable safe and dependable water for desert life today and tomorrow. The board decided to go with number 2 modified as Safe and dependable water for today and tomorrow. Direction was given to put the new mission statement on the agenda for October 5, 2010 for approval.

2. Discussion – the General Manager will present numerous potential projects involving water resources. The board will be invited to add to this list. The Board will then discuss, evaluate, modify and prioritize these potential projects for maximum service value to the community. No action will be taken at this meeting.

Ken stated that he wanted this to be an interactive discussion. Ken said that we need to understand:

• The water conditions here
• Consider the current and possible future development and political structures
• Review the District’s current service capabilities
• Evaluate options for achieving full service for the Virgin Valley in future scenarios
• Outline plans, directions and actions to make the best future possible build those will become logical and easier to decide on
• Do not add to the debt burden of the existing client base

Ken is looking for direction for the staff for both short and long term goals, but mostly long term. Ken said he wants the board to know where we are now; here is what it takes to get to build out; and this is how we are going to get there.

Ken described the Hydro-Geographical outline of Basin 222 and the aquifers in it and its affects. He described to the board the “Leaky bucket analogy” and how they all affect the water we use today. Ken discussed what is full and what effects downstream and what is sustainable to the area. Ken said that what is going into the bucket is approximately 176,000 afy annual Virgin River flow1929 to 2008 and 30 to 60 thousand acre feet of rainfall recharge per Jeff Johnson, SNWA. Ken discussed the water district’s surface water right allocations, and the sustainable yield of 12,000 acre per year. The water right applications now in place are 22,000, we have to prove up on these applications and determine what is sustainable for potable water for the whole 222 basin.

Virgin Valley Development

Show the current population and the use of both potable and non-potable water. Ken then went on to show what the likely build out and the possible build out could be. Based on estimated numbers, if total build out was 78 thousand, potable water use would be estimated at 24,600 afy plus 20 thousand in non-potable water. If the areas build out were estimated at 100 thousand, the estimated potable use would be 31,800 and 23 thousand non-potable water use. If build out is 78 thousand, then the estimated potable of 25 thousand afy would exceed what is currently Certified, Permitted and Vested Rights; we now have applications for approx 22 thousand. Planning ahead with new development and being able to use secondary water for non-potable uses would free up potable at approximately 15 to 20 thousand and leave a sustainable amount of water for the area. Some discussion was had between Karl and Ken about the current flow rate of recycled water being 2 thousand afy and at expected build out would be approximately 5 thousand afy.

John Paul said with this increase in population we should probably adjust the tiers for water use. John wanted to know if it would be appropriate to look at this now or in the future and when is it appropriate to adjust the tiers. Karl said in a down economy we don’t want to be too far ahead of the development as to discourage it. John said we should to be aware, but not to act on it at the moment. Of the 12 thousand afy we have permitted, the use has been approximately 6,700. Karl said that another possible cause for less water use was that a lot of changes have happened in the community towards xeri-scape use. Karl said that if we get a water plan in place maybe the City will be able to mandate that the community use desert scape. Ken stated that if we don’t keep within the ground water resources boundary then we will be in trouble, and the cost to provide drinking water will go way up. So we are trying to avoid that by switching to using conservation efforts and non-potable water sources for non drinking uses.

Current VVWD Water Resources

Basin 222 Underground Water Rights- currently the VVWD has approximately 224 thousand afy in request for applications. Board discussed what and who had water applications in for basin 222 and 221. Ken said that there may be room for discussion for a possible trade of applications. Board was inquiring as to what amount of Basin 221 leaks into Basin 222 and does that affect us. Ken said that by reducing the leakage out of Basin 222 would be important. No matter what, water pulled out of another basin will affect the lower basin. The key is to be more efficient with the leaks out of the bucket and or the redirection of the leaks. Aaron stated that in order to prove up on water, you must use the amount allocated for one year, and have it metered.

Ken said back in 1991 the General Manager applied for water in Beaver Dam Wash because it was very good and that possible reservoirs could be constructed and water brought to us; but the cost associated with this would be great between the dam, pumping, reservoirs and piping. Ken wanted the board to be aware of all applications that the district currently has. John Paul wanted to know how big does a river need to be to be called a river. Karl stated that when it hits the Virgin River its part of the river. Kenyon was wondering if we could use the wash as a tributary to get it down as Vegas does with Lake Mead. Ken said that he had thought of this and recapturing it when it entered Nevada, however we would have to adjust what is called the annual duty. The General Manager in 1991 selected this site due to the pristine water, however, after it had blended with the river it would no longer be pristine. The Board discussed what Wind River was proposing with getting VVWD arsenic clean water at a price less than what VVWD could have pumped it for; however that was shut down by Arizona Legislature.

Ken said the VVWD currently calculates we have 10,607 afy in Lower Virgin River Surface Water rights, SNWA currently has approximately 212 thousand and there is approximately 2 thousand afy in recycled water. Ken said not all current water use is the responsibility of the District (being the Arizona I-15 corridor as a basin in whole); so what is the future gap?

Discussion was had about future build out and the potable, non potable water use ratio as build out progress occurs. The board discussed how to plan for the water and facilities necessary to support that growth during the high use months.

Related Assessments and Conclusions

Discussion was had about the flow volumes and the total dissolved solids in the lower Virgin River. Ken showed that when the river flow (cfs) goes up in the winter and comes down in the summer; and that the highest points in cfs are where the tds drops down. So when the really big storms come you get a drop in the tds level (except in the middle where we can assume that they sampled right before the storm). Ken went on to say that, what is very significant is that in the last four years there was never a drop in the tds levels below 2 thousand. Our winter flows were never high enough to dilute and drop the tds levels even close to a thousand, which is the upper limit for tds for potable water. So the idea of use of river water for potable water without reverse osmosis is not realistic. Looking at well 9 which is high in sulfate, tds, arsenic, and high in turbidity (reuse has a lower level in turbidity level than well 9) and could not be blended down. So even as bad as the water is out of 9, it is still cleaner than the river water. So my opinion is now that to pull water out of the river and add back to the lower aquifer would degrade the water and is not a good idea. More discussion was had about use of dams, treatment and other options to treat river water, what other municipalities do to utilize water sources. The board decided that it was not feasible at this time.

The board and Ken had discussion as to the surface water rights about the springs, creeks and rivers that have been certificated in the area, there locations, depth of drilling and the possibility of accessing them and reservoirs necessary to utilize them. Ken said that instead of looking at these as options at this time we focus on the existing 10,600 rights we have now. Karl asked if these springs and creeks have been purchased or what do they mean to us. Aaron said that all of the certificates are in the Virgin Valley Water District. Ken said that what these may mean to us is that we look at exchanging these for lower bajada rights. Kenyon said he would not be open to giving any rights away, only trade if it makes sense to the District. The board members agree that trading for lower down rights would be fine. Ken wanted to point out a few reality assessments, that basin 222 sustain yield may limit development if not planned for. Lincoln County, Arizona and SNWA may tie water resources in Basin 222 and limit growth if not negotiated for mutual benefit. We want to make sure we keep water in this basin by trading or negotiating whatever is necessary. Another point is that non potable must be reliable and affordable in order to maintain the area’s quality of life.

Conclusions, Supporting Data, and Decisions

Ken said he has put together 9 points and that he would like to get the direction of the board of each of these.

• The Muddy Creek Formation or other non-Virgin River- influenced ground water are the best quality potable water sources, requiring the least expensive treatment

The horizontal collection well is not immediately needed, and may never be. Cancel that project.

We have enough ground water, the arsenic plants are in place, and this would be better than attempting the horizontal collection wells. Ken said he was sure the direction of the board was to bag the horizontal collections wells project, but would like to try to get the grant money to go toward another project if possible. Kenyon said that we started the horizontal collection wells when SNWA did and we should have bagged it at the same time they did. Ken said we are pretty much into buying the 5 acres of property, but that we can use it to trade with others. Kenyon said that maybe we could do the same as the City and trade with the City or Las Vegas/SNWA for mitigation area.

The cost for a large reservoir above Arizona in Lincoln County, and the distance from the District’s service area, make such a project appear impractical.

Ken is proposing that we let go of those water application. There was discussion about the cost of building a reservoir and piping and at this time does not seem practical. Kenyon asked if we own those rights. Ken said it is only in application. Kenyon said if we owned the rights then it would be prime swapping for clean water. More discussion was made about possibility of trading, or putting into the river and then pulling it back out downstream. Discussion was made as to the possibility that Arizona may be open to trade if they get something back in return. Ken asked if it was okay to let go of the application. Kenyon said he does not think we should build the reservoir, however would like to keep the application in place in case we need it to negotiate with at a later point.

• There is likely enough accessible groundwater for the build-out of the Virgin Valley
Drilling high on the bajada below the Virgin Mountain or accessing springs in those mountains, is not necessary, may not be productive, would be expensive and has unnecessary environmental consequences. Abandon those efforts in this BLM land of Critical Environmental Concern.

Ken suggested that we trade those rights or abandon the efforts due to cost.

Current well capacities, treatment capacities, and groundwater rights are adequate for current and some future growth. Optimize those systems.

Ken said we appear to have adequate system for our use.

Focus future drilling for wells on the known productive area lower on the bajada, south of the river, between wells 31 and 29. Seek accessibility from the BLM for wells, pipes, and reservoirs in that area

Board would like to see the easement stay, so to make sure that what we remove does not affect the easement.

Muddy Creek-influenced shallow groundwater is of good quality and valuable for at least the Arizona Residents in Basin 222. It may also prove valuable for servicing other Basin 222 residents, so the District should be open to service agreements, water rights, or water purchase arrangements from this area.

Discussion was made to look at the possibility of expanding the boundary of the district to all of Basin 222, but not necessary owning or servicing everything in Basin 222. That the district could possibly be able to assist others the area by contracting our services to them from sampling to repairs, to capital project. Board discussed that it would take a legislative action and we would need to have our consultant get started on it. Ken explained that this would allow us, if it made sense to the district, to provide water to others, as long as it did not burden our current client base. He went on to say just because we would be in the service area does not mean we would have to service it, just that we are accessible and could if needed.

• The claims for groundwater in this area are greatly inflated and competitive rather than cooperative.

Ken said that the points below are directions he is hoping establish to move forward.

Consider an honest conversation with the State Water Engineer to evaluate what is reasonable and to cancel unproductive and irrational application claims. In exchange, affirm the permits for adequate groundwater for full basin build-out.
After board discussion, no recommendations were made at this time.

The applications for groundwater rights between Basins 221 and 222 with Vidler/Lincoln County Water are virtually pointless. Meet with Lincoln County Water and offer to end aggressive competition that consumes resources by agreeing to separate the basins as service areas.

After board discussion, no recommendations were made at this time.

Seek to make the entire Basin 222 a VVWD service area, allowing but not mandating service. The existing rural systems likely represent more liability than assets and so are not in general worth acquiring, but VVWD could provide valuable contract-type services for these systems on an as-requested basis if they are in our service area.

Board had discussion about looking at what is the service area; is the service area described by boundary or is it whatever is within the legal limits of the City of Mesquite. Discussion was made to talk with the City and work hand in hand with them and their area of service. Also to look at the time table necessary to adjust the service area.

• Uses of recycled and non-potable water should be optimized to best ensure that there will be adequate groundwater for potable uses, at the least cost for development and treatment.
Future developments should include provisions for a Secondary water system for high-volume flows of recycled and river water for large landscapes such as recreation areas and golf courses.

Unless there are special water quality requirements, a single secondary system of combined recycled and river water would likely be much cheaper than two separate systems. That principle should guide future water system plans and designs.

Existing recycled and river water pump and pipe systems might be combined for optimal economy and non-duplication of resources. That would require a cooperative effort of the golf courses, City of Mesquite, and the VVWD.

Ken stated that in order to make sure that we have plenty of potable water we have to optimize the use of non-potable water. He said we need to plan ahead and put in one system that can achieve this instead of having numerous systems for this. The one system could be river water and recycled water being diverted up to a reservoir that services non-potable uses. It was also discussed that this blending would allow the tds levels to be reduced to allow for water that does not hurt the golf courses. Building a secondary system will take a load off the potable system and will reduce in cost in the pumping and treatment of the potable. Ken said that we would have to work with City and golf courses and or a developer to achieve this. Ken said that he believes that all of the secondary system could be achieved with impact fees and it would not impact the current rate payers. Karl said that the City of Mesquite is looking at artificial grass for all recreation facilities as to not impact the potable water in Mesquite. Discussion was made that the land value of property around a large reservoir may be worth a developer donating property for a reservoir and may be a direction that may needs to be
investigated.

Ken gave a synopsis of what direction he received from the board from the work session.

John Paul requested that we end the work session and continue at a later date. Board decided to reconvene the remainder of this work session on October 19th at 3:00 pm prior to the regular scheduled board meeting.

3. Adjournment

President John Paul adjourned the meeting at 8:40 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.

•  Work Session Minutes: 2010-09-29 (.pdf 42.K)