VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
DECEMBER 7, 2010

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on December 7, 2010, at the Virgin Valley Water District Office at 5:00 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, but participated by telephone for the first few items. Also present were Ken Rock District 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 5:04 p.m.

Karl Gustaveson offered a Prayer and Mark McEwen led the pledge.

Public Comment – Robert Fuller, CFO of Wolfcreek Golf Club, and on behalf of the golf course community, wished to extend a thank you to Ken Rock for his leadership and helping to pull the joint meeting with the City of Mesquite and their efforts in looking for a water solution for the community. Rob further stated that he realized that it was not the District’s charter requirement to make sure that the golf courses have water, but he also sees that as an elected board, they should place the publicly owned water shares to the most beneficial use for the community.

Discussion: Board Comments - None
President of Board Comments – John Paul apologized for his phone not working well at the last meeting and it dying out.

CONSENT AGENDA:

John Paul stated that items #8, #9 and #10 should be reversed in order and that item #10 should even be pulled completely off the agenda. Bo stated that the board may consider pulling item #5B off the consent agenda also, since it is over $50,000.

Ted Miller made a motion to approve the consent agenda as listed below with items #8 and #9 reversed; item #10 pulled from the agenda completely; and item #5b pulled from the consent agenda. Mark McEwen seconded this motion and it was unanimously carried. 5-0

1. Discussion & Action - Approve Agenda – Items #8 & 9 reversed; item #10 removed from the agenda; and item #5b pulled off the consent agenda

2. Discussion & Action – Approve Minutes from 11/16/10 Regular Board Meeting

3. Discussion & Action – Approve Financial Statement for August 2010

4. Discussion & Action – Approve Bills Paid - $959,924.73

5. Discussion & Action – Approve Purchase Orders Over $2,500
a. USA Bluebook - $3,300.00 – Handrail for Shop

6. Discussion & Action – Approve moving the proposed workshop for review, revision and modifications to the District’s Operating Rules, Regulations & Rates and Administrative Policy, Rules & Procedures manual from January 18, 2011 at 3:00 p.m. to January 20, 2011 at 9:00 a.m. The workshop may require several hours. If so, lunch will be provided to Board members

7. Discussion & Action – Approve moving the proposed workshop on February 1, 2011 at 4:00 p.m. with Draper & Gleave, LLC to compile a list of accounting tasks desired by the District to January 18, 2011 at 4:00 p.m.

** End of Consent Agenda**

5. Discussion & Action – Approve Purchase Orders over $2,500
b. Subsurface Technologies - $50, 745.00 – Aqua Gard Treatment of wells #31 & 33

Bo stated that Aaron had done a great job putting together support material for this item and explaining why it was needed, but Bo has concerns regarding NRS 332.115, which amounts over $50,000 must go through a specific bidding process. Bo stated that there are exceptions to this; if it is a sole source item or a professional service, and Bo’s understanding is that this is a patented item and would only be available through a sole source and could also qualify as a professional service, so he felt that it does comply with NRS and feels the Board could pass this item. Aaron explained to the audience what the Aqua Gard Treatment was used for.

Mark McEwen made a motion to approve item #5b for Subsurface Technologies not to exceed $50,745.00 for Aqua Gard Treatment of wells #31 & 33. Ted Miller seconded the motion and it was carried unanimously. 5-0

9. Discussion & Possible Action – Consideration for approval for the General Manager to issue a request for proposals (RFP) for the development of a reconnaissance level study for long-term secondary water utilization in the Virgin Valley. The tentative proposals presentation date would be February 9, 2011

Ken began by stating that we have talked about this a few times since November and that this will not likely solve all the issues; or a resolution to the shorter term issues, but because of impact and costs, he feels that an outside observer may set us on the right path. Ken further stated that by going out for an RFP we would get the broadest set of opinions on what might be the most appropriate courses of action before we even award the work. There was discussion regarding costs, the scope of reconnaissance level study, stakeholders and funding.

Bo wanted to point out that this Board, from his understanding, has not really discussed who the stakeholders are in this matter. Bo noticed that there are some potential stakeholders listed in the memo to the Board from Ken, and wanted to state that the VVWD Board will certainly comply with NRS 100, including the authorized service area of the District, and Bo wanted it known that if the VVWD staff and Board begin to “formally” talk about stakeholders, that they comply with NRS 100 and do not overstep any bounds.

There was further discussion whether to establish a committee first or go out for an RFP first; who the stakeholders might be; the stakeholders’ commitment and costs to the project; and if the VVWD should take the lead.
Ken stated that one of the reasons he was pushing this was the City and the Fish & Wildlife (F&W) people are working with us on the Habitat Conservation and Preservation Plan for the river. As part of that, we will need to decide what it is we are going to be doing to preserve the river. There was further discussion regarding Ordinance IV money, BOR grant, timeframe, forming a committee and other funding possibilities.

Kenyon had to disconnect from the telephone at 5:40 p.m.

There continued to be a lengthy discussion regarding diversion points; conservation; the District’s investment of $13.4 million in surface water rights; the water just going down the river; ways to access and use the water; and the District’s current fee schedule and possible changes to these fees.

Ted Miller made a motion to approve that the General Manager issue a RFP for the development of a reconnaissance level study for long-term secondary water utilization in the Virgin Valley. Mark McEwen seconded this motion and it was unanimously carried. 4-0

8. Discussion & Possible Action – Consideration to commit $30,000 to the sole financing of the initial reconnaissance level study for long-term secondary water utilization in the Virgin Valley, or propose a cost-sharing method

Mark stated that we needed to do something because the water was just running downstream now.

Mark McEwen made a motion to commit $30,000 to the sole financing of the initial reconnaissance level study for long-term secondary water utilization in the Virgin Valley.

Karl stated he would like added to the motion that we would seek possible funding and/or assistance if we moved ahead with any further development.

Mark McEwen withdrew the first motion and made another motion that the VVWD commit to some amount, not to exceed $30,000, to the sole financing of the initial reconnaissance level study for long-term secondary water utilization in the Virgin Valley and that, additionally, if any future funds need to be spent, that we seek a sharing of those funds; either through grant money or through the money that any major stakeholder can contribute to that. Karl Gustaveson seconded this motion and it was unanimously carried. 4-0

11. Discussion & Possible Action – Consideration to lift on a case-by-case basis, with Board approval, the VVWD prohibition for the lease of surface water shares for water used outside the Virgin Valley

Ken began by stating that there was a memo attached with this item and that the District again went out for auction this morning of 87 Mesquite shares and 35 Bunkerville shares. The 35 Bunkerville shares were leased again for another year for $300 per share, but the Mesquite shares again, went un-leased. Ken further stated that we were still holding 87 Mesquite shares that were just going down the river, but that we may be able to lease this water to SNWA, but Ken has not had dialogue with SNWA to confirm or deny this.

Item opened to public with Rob Fuller stating that the golf courses would like to lease the District’s water, but leasing only on a year to year basis is hard to conform to. Robert “Bubba” Smith commented that the Conestoga Golf Course’s lease would expire shortly and that they were looking for 130-140 irrigation shares and 87 shares would not satisfy their requirements. Bubba further stated that there are needs for the irrigation water out there and he feels that the State Engineer meant for this water to service the Virgin Valley and he feels that the board should find out what the best use of the irrigation water is for the Virgin Valley and not lease to SNWA.
Ken stated he would like to see the District getting something for the water in lieu of letting it just go down the river and that the Board has the option of leasing for a longer period than one year.

Bo stated that if the Board were going to consider lifting that prohibition, according to Chapter 100 of NRS, the Board is required to make a specific finding that there is a surplus of water and Bo stated this must be mentioned in the motion.

Karl Gustaveson made a motion to table this item until the next meeting, December 21, 2010. Mark McEwen seconded this motion and it was unanimously carried. 4-0

12. Discussion & Possible Action – Approval of a Resolution of Intent for refinancing the 2001 VVWD General Obligation (limited tax) Water Refunding Bonds (additionally secured by pledged revenues) in the maximum principal amount of $4,100,000

Ken stated that Marty Johnson with JNA Consulting was unable to be present, but felt that with the materials he and Kendra put together, that the Board would be able to act on this.

Karl Gustaveson made a motion to approve 2010-05 Resolution of Intent for refinancing the 2001 VVWD General Obligation (limited tax) Water Refunding Bonds (additionally secured by pledged revenues) in the maximum principal amount of $4,100,000. Ted Miller seconded this motion and it was unanimously carried. 4-0

13. General Manager’s Report

Ken had included a written report in the Boards’ packets. Ken further stated that it has been an interesting period and that he has been working with the City planners and F&W and that a considerable amount of time has been spent on the secondary water resource use. Ken further stated that we had found examples of corrosion to copper piping in our system and had an example available for the Board’s examination. Ken also reported that we had run well #32 for the month of October to get a feel for what it would produce and costs associated. The well produced 900 gpm, but cost $32,465 in power charges, while well #33 only cost $10,300 to run for the month of November. Ken feels that the District would save money by moving ahead in getting bids/proposals to proving out the well and equipping it with the proper size motor and pump.

14. Hydrologist’s Report

Aaron had included a proposed task list as of December, 2010 in the Boards’ packets. Karl questioned if insurance would help cover the transducer that was stolen at the shallow monitoring well at Riverside. Aaron stated that he had drafted this list at the request of Ken and reviewed the list with the Board by project, why, how, benefits, time frame and approximate costs.

15. Public Comment

Sandra Ramaker suggested that the Board consider longer leases than one year.
Bob Shively also commented that it was pleasure sitting through this meeting and that the District seems to be making great strides towards positive things.

Wade Poulsen stated that in the VVWD last meeting it had been suggested that LCWD have a presentation for the VVWD in servicing the Lincoln County Land Act and he had taken this suggestion to his board, but that they would rather wait until after the New Year when they would have two new board members put on the LCWD Board. Wade’s Board would also like to see some informal meetings and discussion between the general managers.

16. Adjournment

President John Paul adjourned the meeting at 6:58 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: 2010-12-07 (.pdf 31.K)