VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
DECEMBER 21, 2010

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on December 21, 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 5:00 p.m.

Mark McEwen offered a Prayer and Kenyon Leavitt led the pledge.

Public Comment – Mayor Holecheck thanked John Paul for his service on the Board and felt encouraged with the District’s new GM and working together with the City in the future.

Randy Tickner commented regarding the Oasis water sales to the VVWD and stated that they felt it was important to keep the shares in the Virgin Valley and not farm it out to different entities and that is why they sold the shares to the VVWD and implored the Board to keep the water in the Virgin Valley. Randy also stated that the Board should consider longer term leases for water shares as they become available.

Tim Colbert representing Pulte Homes asked to read a statement on behalf of Pulte Homes and Conestoga Golf Course regarding the District’s available 87 MIC shares and stated that they were not interested in leasing these shares under the current terms. Mr. Colbert further stated that they would be willing to lease these shares from the District if a long term lease was available and that they approved of the comments made by other golf course representatives.

Bob Shively commented on the VVWD’s process of decision making and feels further education is required.

Discussion: Board Comments – Ted Miller stated that this was John Paul’s last meeting and handed John a card and check and offered sincere appreciation for John’s service on the VVWD Board of Directors on behalf of all the Board Members and staff.

President of Board Comments – John Paul issued a “thank you” to the Board, staff and citizens and feels that the District is heading in the right direction. John further stated that he knows that there will be tough decisions to make in the future and he has the highest confidence in the District’s Board and its new member going forward with their decisions.

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 12/7/10 Regular Board Meeting

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

4. Discussion & Action – Approve Bills Paid - $182,323.70

5. Discussion & Action – Approve to Write Off Delinquent Accounts - Account 6130.4 in the amount of $34.21

** End of Consent Agenda**

6. Discussion – Presentation to VVWD Board by Canyon Creek Development on their latest developments toward groundwater production from the Mormon Wells, Arizona area – Requested by Canyon Creek Development

Gary Williams, Operating Manager of Canyon Creek Resources, LLC presented a power point presentation regarding water issues as they see them; their objectives and how to meet these objectives; the regional needs; a bio of Canyon Creek Resources, LLC; water resources; pictures of the area; proposed regional solution; benefits to region; a five step action plan; answers to why would the ADWR grant an export permit; and what they are asking of the VVWD and other entities as partners in this joint venture.

Mr. Williams asked for questions and comments. Wade Poulsen, General Manager of LCWD, commented that Mr. Williams had stated that VVWD would be servicing Lincoln County and Wade stated that Lincoln County was in the LCWD service area and would like to be included in any discussions regarding this presentation and servicing Lincoln County.

7. Discussion & Possible Action – Consideration to amend and/or modify District’s parameters established for leasing of irrigation water shares owned by the District

Ken began by reviewing the current parameters and thought the Board may want to entertain longer lease periods and Ken’s opinion is that this would be safe to do for a while since there are no definite plans for a secondary system. There continued to be discussion regarding the current parameters and what changes may be appropriate.
Karl commented that he felt that after the last meeting there was a misunderstanding regarding his and Mark’s comments of the “water going down the river” and explained the comments and how the water is going down the river without the District receiving any lease income from irrigation shares owned by the District.

Ted commented that golf courses need long term leasing because of financing.

There was further discussion regarding irrigation shares owned by the District and not being able to utilize 60% of these shares; short-term and long-term possibilities for these shares; the study to be completed and possibility of tying up the shares; and other options for the irrigation shares owned by the District.

The item was opened up to the public.

Carl Alfano commented that he felt golf courses were important to the community and thought it was very important that the golf courses be able to lease irrigation shares for a longer period than one year.

Bubba Smith commented that the water should stay in the valley and apologized for his actions as a board member at that time when the parameters were set and tying up the current members and their inability to lease the District’s shares for a longer period of time for one year. Bubba further stated that there was time and the Board should decide who the most beneficiary users are.

Tim Colbert wanted to make one point of clarification regarding it having been alluded to in some of these meetings from individuals outside of Pulte Homes in forums such as this that Conestoga Golf Course has a short-term water issue and nothing could be further from the truth. Mr. Colbert further stated that Conestoga has both short-term and long-term water plans for the Conestoga and is in no way shutting down the plan on being a long part of a beautiful community and that Pulte Homes will speak on behalf of Pulte Homes and Conestoga Golf Course.

Randy Tickner commented that he felt the District could lease shares longer than one year.

Tim Hacker, City Manager, commented on the City’s distribution system for re-use water; the economical problems and possibilities; and future possibilities.
Kenyon thought that maybe the City could lease water from the VVWD and run it through their system and further discussion ensued regarding this and secondary water storage.

Ryan Wheeler with Forsgren Engineering commented that this was a puzzle and that his engineering firm would love to work on and mentioned some different options that may be possible.

Mark McEwen commented that the parameters needed changing, but questioned how soon.

Ken stated that nothing would happen within five years so we could extend our leasing to 3-5 years; he also suggested pricing options and this was further discussed.

Mark McEwen made a motion that we do modify the parameters but to table this item until the first meeting in March, which would be March 1, 2011. Karl Gustaveson seconded this motion and it was unanimously carried. 5-0

8. Discussion & Possible Action – Consideration to allow for the one-time lease of 87 shares of MIC water that is currently surplus to local or outside bidders

Karl Gustaveson made a motion to table this item to March 1, 2011 in combination with item #7. Kenyon Leavitt seconded this motion and it was unanimously carried.

9. Discussion & Possible Action – Consideration to request for proposals to create a Geographic Information System (GIS) data base for the District’s below-ground resources. No costs other than administrative would be incurred without Board review and approval

Ken stated that he had attached a memorandum explaining why this idea has merit. Ken’s memo explained that the District’s assets are recorded on scattered paper maps and the collective memories of employees; the District is at risk of losing our institutional knowledge when senior members retire; and the District also lacks a preventive maintenance program.

Kenyon Leavitt stated that he agreed with the need, but questions the costs, especially since it is not in the budget. Kenyon feels that this item should be put on as a budgeted item and look at all costs that would be associated. He understands the importance, but feels that we should be careful on spending more money at this time.
Ken stated that it would not cost the District anything to request proposals. Kenyon explained about the District going out for proposals for a new building and the “heat” they received from the firms who submitted proposals, whose costs to them were considerable, and then the Board decided not to move forward with a new building. Kenyon further stated that it is hard to justify this expense when it is not budgeted for, and we just had a 36% rate increase.

Mark stated that Ken has many new and good ideas, but with our situation, we cannot afford and also feels that this should come up with the budget process.

The Board asked Ryan Wheeler with Forsgren if he would be willing to put together a proposal without any commitment to continue with the project. Ryan stated that the District would surely receive proposals if requested, but he agreed with Kenyon’s remarks and the Board should budget the item first.

Sandra Ramaker commented that a maintenance program is a necessity and without this plan, it is costing the District money.

Kenyon Leavitt directed staff to incorporate the GIS program in the budget process.

10. General Manager’s Report

Ken had included a written report with significant events since his last report. Ken further mentioned that collaborative work and information seems to be aligned so that we can put together a program that simultaneously improves Virgin River habitat for endangered species while providing for better and more reliable access to river water for our constituents. The City, Fish & Game, ACOE and BOR will be working with us to refine these ideas.
Ken also informed the Board that we had submitted our final request for reimbursement from the ACOE and should receive the rest of the available grant money.

11. Public Comment

There was no public comment at this time.

12. Adjournment

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: 2010-12-21 (.pdf 27.K)