VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
NOVEMBER 2, 2010

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on November 2, 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 Members Ted Miller and Mark McEwen. Also present were Ken Rock District General Manager and Mary Johnson taking minutes and other interested parties of agenda items.

President John Paul called the meeting to order at 5:04 p.m.
Karl Gustaveson offered a Prayer and Kenyon Leavitt led the pledge.
Public Comment – There was no public comment at this time.

Discussion: Board Comments – Kenyon Leavitt stated that coming home from work the other day he noticed work being done on the road going up to Well #29, which didn’t concern him, because it gets bladed on occasion. He noticed a day later that the road had been paved and he was also informed that the road to Well #32 had also been paved and he did not remember this coming back to the board for approval and wondered whether it had or not. Karl stated that he remembered some discussion on this and that it was part of the money still available through the ACOE, but was not positive that it had been voted on by the board. Ken then explained that there was over $300,000 of the ACOE grant money available for arsenic treatment and projects suggested were SCADA, system improvements and also the paving that could be executed quickly. Ken further stated that there were four different contractors and that the project had been broken up into pieces. Kenyon then stated that he did remember discussion regarding this, but that he felt that bids should come back to the board and that the board awards bids to the lowest responsible bidder. Mark and Karl agreed. There continued to be discussion regarding the bids and breaking it up; the opening of bids; the timeframe of this bid; the design of the roads; permits and jurisdictions in Lincoln and Clark Counties.

President of Board Comments – John Paul stated that he would be unable to attend the regularly scheduled meeting for November 16, 2010.

CONSENT AGENDA:

Karl Gustaveson stated that he would like item #5 pulled from the consent agenda and discussed independently.

Karl Gustaveson made a motion to approve the consent agenda as listed below with item #5 being pulled from the consent agenda and heard before item #6. Mark McEwen seconded this motion and it was unanimously carried. 5-0

1. Discussion & Action - Approve Agenda

2. Discussion & Action – Approve Minutes from 10/19/2010 Work Session

3. Discussion & Action – Approve Minutes from 10/19/10 Regular Meeting

4. Discussion & Action – Approve Bills Paid - $368,994.48

** End of Consent Agenda**

5. Discussion & Possible Action – Approve employees’ Thanksgiving gift certificates & Christmas bonuses as budgeted.

Karl stated that he was not advocating either way on this, but felt that it was appropriate since we have been discussing the District’s financing that it be discussed and wanted everyone’s opinion.

John Paul began by stating that he was supportive of this and that this was a good thing. Kenyon stated he agreed with John Paul and that the employees worked hard all year long with little manpower. Ted stated that he also agreed with Kenyon and John Paul. Karl stated that he also felt that it was a good thing, but one of his questions was that, at this point and time, we have had some financial difficulties and we have not had to have furloughs or cut employees and just wanted this item discussed. Mark asked if this was traditional and has talked to employees and is inclined to agree with Kenyon, John Paul and Ted.

Karl Gustaveson made a motion to approve employees’ Thanksgiving gift certificates of $40 at Smith’s & Christmas bonuses of $150 as budgeted. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0

6. Discussion & Possible Action – Consideration to Approve annual audit for Fiscal year Ending June 30, 2010 as presented by Hinton, Burdick, and tabled at October 5, 2010 meeting

Ken began by stating that the audit seems good and that the District received high grades for recommendations in 2009 that have been implemented and incorporated in 2010. Ken also mentioned that one of the findings is that the District does not have a fraud prevention program in place.

John Gleave stated that he was assured that a rep from Hinton, Burdick would be here tonight, but no one has showed up. John stated that the audit was basically the same from the first presentation, without the “draft” across the top and that he has added the MD&A (Management‘s Discussion and Analysis), which is about the first eight (8) pages and a required part of the governmental financial statements. This analysis includes information that is not part of the regular audit. John further stated that there were some minor changes in the CIP numbers and that the last two pages were removed because they were not supposed to be part of this audit. John also stated that the District does need to implement a fraud prevention program. Ken stated that this would not be that difficult and it basically means educating the entire staff and setting up a system of checks and balances; with a reporting system in place. Ken stated he didn’t feel qualified, nor had the time, and wanted to address this in his staffing discussion. John Gleave introduced David Waite and David stated that he has written a few and that a lot of it was just in discussion and training the board. Ken further explained details that a fraud policy would contain and how important it was to have staff involved from the bottom to the top.

Kenyon Leavitt made a motion to accept and approve the annual audit for fiscal year ending June 30, 2010 as presented. Ted Miller seconded this motion and it was unanimously carried. 5-0

7. Discussion & Possible Action – Consideration to appoint District Hydrologist Aaron Bunker, as “Alternate Member” to the Sewage and Wastewater Advisory Committee (SWAC)

This is just a formality since Michael Johnson is no longer with the organization; we need Aaron to take this position.

Mark McEwen made a motion to appoint District Hydrologist Aaron Bunker as “Alternate Member” to the Sewage and Wastewater Advisory Committee. Karl Gustaveson seconded this motion and it was unanimously carried. 5-0

8. Discussion – Review of tasks initiated since August 20, 2010

Ken had included a list of 12 projects that have been initiated since August 2010, specifying which items have been completed. Ken stated that #1 was incorrect in that he refers to the 2008 bond defeasement hearing on November 4 was cancelled, when in actuality, the hearing cancelled on November 4th was for recalling the 2001 Bond and that the defeasement of the 2008 bond had been accomplished. Ken stated that some of these projects and the backlog projects would require more staff time and more money in order to move it along.

9. Discussion – Review of potential Bureau of Reclamation (BOR) grant assisted projects

Ken had included a list of possible projects and would like the Board’s input on prioritizing these projects. Ken further stated that he and Aaron had spent some time on the phone with Pam Adams of BOR and that she was glad to see some substitute projects for the one the District axed. Ken informed the board that projects under $100,000 could possibly be fully funded; larger projects, she would require congressional support and it could take years. Ken stated that this list has merit, but not as pressing as backlog list. Karl questioned the process and Aaron explained. The board discussed the list further and the merits of different projects.

 

10. Discussion – Review of current project backlog list

Ken had also included a large list of possible backlog projects in response to Mark and Karl’s request and this item would lead into #11. Ken stated that you could classify the list in two different ways, either by a lot of staff time; or by taking a lot of money. Ken further stated that with a lot of these projects, he does not have the expertise in-house to accomplish.

11. Discussion & Possible Action – Review and consideration to approve staffing organizational adjustments

Ken began by stating that the current conditions show that the positives are we have good fiscal stability; we have no questionable projects under way; we’ve stopped the hemorrhaging and healing is taking place; and there are many optimizing cost saving projects identified. The bad news is the same thing in that there are many optimizing cost saving projects identified. Ken further stated that he looked at how we could most economically do that; some would be cost neutral due to previous staffing costs, but others would require hiring additional staff members. Ken wanted to look at the five different levels: 1) Accounting, 2) Conservation Specialist, 3) Maintenance System Manager/GIS Specialist, 4) Water rights increased focus, for hydrologist (Aaron Bunker), and 5) second hydrologist/scientist/engineer to shepherd projects.

1. Accounting: Ken suggested a few accounting alternatives and options. Ken stated that John Gleave and David Waite have suggested a workshop to determine what the board wants in the District’s accounting process and they would be willing to assist in defining a scope of services and a proposal for their additional services; or setting up an RFP for recruiting other accounting services. There was further discussion on different options and how it could be accomplished. The board asked John Gleave and David Waite about their background, education and experience. Karl suggested having a work session with John Gleave and David Waite after the first of the new year.

2. Conservation Specialist or Water Use Optimizer Specialist: Ken began by stating that Ted had asked Ken’s wife Voni, who is a Water Conservation Specialist to conduct a water audit for Vistas HOA and she went out with the landscaping crew and basically found that there were some good parts of the water being used, a lot of bad, some ugly and a lot just really sad with a lot of improvement to be had. Ken stated that Voni was willing to do a tour with reps from the Board and City and discuss what a conservation program could bring to Mesquite. There was further discussion regarding grants, mandatory conservation, education and working with the City of Mesquite. Kenyon Leavitt stated that the board previously approved for Pete and conservation training; needing to keep costs down; and that we have to sell water to make money and pay our bills. Kenyon also mentioned that when we talk about water users in the District, he only hears about what the City of Mesquite wants and that Bunkerville is also part of District and should also be included when speaking of the District and included in invitations to meetings, etc.

3. Maintenance system manager/GIS specialist. Ken stated that we currently did not have a maintenance management system, preventive maintenance program and we do not have a good system to track everything in the ground. Ken feels if we combined these programs that we could eventually come up with a maintenance management program and save the District money. Ken thought that it would take a full-time person for a couple years. Ken stated that it was not urgent, but that he has seen the consequences of not doing this and waiting until the system is old.

Ted had to leave at 6:45 p.m.

4. Water rights increased focus for hydrologist. 5. Second hydrologist/scientist/engineer to shepherd projects. Ken stated that with one hydrologist now, he would like to change the focus and track and optimize the District’s water rights. Ken further stated that with the backlog list, we would not be able to handle with current staff and as he has thought about this, he believes an engineer may be more appropriate than another hydrologist who could act as a project manager, manage the consultants, and manages the in-house small projects. Ken has prepared a reorganization of the hydrologist department and supplied three job descriptions for a hydrologist supervisor, hydrologist I and II. He would like Aaron to be re-classified; along with the salary at that classification. The board reviewed the job descriptions and Aaron answered questions regarding his education. Kenyon stated that he had no problem changing Aaron’s job description and moving his pay to fit accordingly, but he did have a problem with hiring more people right now. There was further discussion regarding no CIP’s for 5 years, budget, financing and reexamining the projects and what we can do with the staff we have right now and hold off on the others.

The item was opened to the public and Joe Macias stated that if the District hired new employees, the 36% rate increase could be seen as fluff for new hires instead of its real need.

Kenyon Leavitt made a motion to have a workshop to brainstorm on our accounting needs for a date and time certain to be determined by the general manager at a future date in the new year; and also to change our hydrologists classifications as presented by the general manager and that we move Aaron Bunker to the base pay for a Hydrologist I. Karl Gustaveson seconded the motion.

Ken stated that the District’s current job descriptions go from III to I, when most organizations go from I to III and he would like to reorganize this without changing pay scales.

Kenyon Leavitt added to his motion that the General Manager change the job descriptions and bring back to the board for approval.

Ken then stated, after looking at the job descriptions, that Aaron should be classified as a Hydrologist II and not I.

Kenyon Leavitt amended his motion to state that Aaron Bunker be moved to the base pay for a Hydrologist II with an effective date of November 8, 2010 for his increase to take effect. Mark McEwen seconded the motion and the amend motion and all were carried unanimously. 4-0

12. General Manager’s Report

Ken had included a written report with significant events since the last report. He also informed the Board that we had received the “draft” water rate study and this would be put on an agenda at a later date for Board approval. Ken also informed the Board that John Gleave would be submitting a report at the next board meeting with the pros and cons for proposals for potentially changing the District’s audit firm. Ken also reminded the Board of the meeting scheduled for November 10, 2010 with the City of Mesquite, Bunkerville and golf course representatives.

13. Public Comment

There was no public comment at this time.

14. Adjournment

President John Paul adjourned the meeting at 7:20 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: 2010-11-02 (.pdf 32.K)