VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
MARCH 15, 2011

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on March 15, 2011, at the Virgin Valley Water District Office at 5:00 p.m. Attending were President Karl Gustaveson, Vice-President Mark McEwen, Secretary-Treasurer Kenyon Leavitt, and Board Members Ted Miller and Sandra Ramaker. Also present were District General Manager Ken Rock, District Legal Counsel Bo Bingham, District Hydrologist Aaron Bunker, District Administrative Assistant Mary Johnson taking minutes and other interested parties of agenda items.

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

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

Bo stated that he had a comment on the minutes to be approved in item #15. It now reads that the Board can deliberate and make a decision, and Bo stated that it should read that “the Board can deliberate towards a decision”, but any action must be done in an open meeting.

CONSENT AGENDA:

Mark McEwen asked that item #1 be removed from the consent agenda.

Kenyon Leavitt made a motion to approve the consent agenda as listed below with removing item #1 and heard as the first item after the consent agenda and to amend the minutes as requested by our attorney. Mark McEwen seconded this motion and it was unanimously carried. 5-0

2. Discussion & Action – Approve Minutes from 3/1/11 Regular Board Meeting

3. Discussion & Action – Approve Financial Statement for January 2011

4. Discussion & Action – Approve Bills Paid - $134,376.77

** End of Consent Agenda**

1. Discussion & Action - Approve Agenda

Mark requested that this item be pulled from the agenda to remove items #6 and #7 from the agenda because he feels there is not enough information to make decisions on the items and to hear these items at the next regular board meeting. Mark further stated that both items suggest that money will be spent, but they do not state if these were budgeted items or if not, where in the budget we would get the money for these items and how it will affect the budget before the Board can make an educated decision.

Kenyon commented that he has said in the past and still feels that he wants to see where items fall in the budget and how it affects the budget prior to the meeting.
Ken commented on item #6 stating that it was critical services. We are having trouble with telemetry and the controls for the arsenic treatment plants and Dr. Najm has already proven his capability on it. Ken also stated on the Bunkerville tank option (item #7) that the largest part would wait until the next fiscal year. Ken further stated that the sooner we make this happen, the sooner we will be saving money.

Mark McEwen made a motion to remove items #6 & #7 from the agenda and put on the agenda for our next meeting. Kenyon Leavitt seconded the motion. The motion failed with a vote of 2-3 with Karl Gustaveson, Sandra Ramaker and Ted Miller opposed.

5. Discussion & Possible Action – Approval of an ordinance of the Virgin Valley Water District providing for the issuance of its registered, negotiable, General Obligation (Limited Tax) Water Refunding Bonds Series 2011; and other related matters.

Marty Johnson with JNA Consulting was present to explain and answer any questions regarding this ordinance. Marty informed the board that the District would save over $143,000 over the life of the bond. Marty also stated that unfortunately the rating agencies had lowered the District’s rating from Aa3 to an A1. Marty stated this was still a good rating, but not as good as where we were; and that we are not alone in that other agencies’ ratings also went down with the current economy. We are not extending the term of the bond, but only changing the interest rate, going from 4.7% to 3.4%. Marty further stated that with issuing a new bond we had the option of changing how this worked and we would now have a paying agent in lieu of a trustee and would save the District approximately $1,300 a year in trustee fees to Wells Fargo.

Ken offered his commendations to Marty, Kendra and John Gleave for their assistance in this process.

Kenyon Leavitt made a motion to approve an ordinance of the Virgin Valley Water District providing for the issuance of its registered, negotiable, General Obligation (Limited Tax) Water Refunding Bonds Series 2011. Sandra Ramaker seconded the motion and it was unanimously carried. 5-0

6. Discussion & Possible Action – Consideration to approve on-call technical support services contract for the groundwater treatment plants with Issam Najm, Ph.D., P.E. of Water Quality & Treatment Solutions, Inc. not to exceed $10,000.

Pete had included a memo explaining why he was requesting these services. Ken further commented that this was a great deal and really economical and that costs could be much greater if the District needed to correct a problem than having Dr. Najm as a consultant. Ken also stated that the plants were designed and constructed to specs and it is not unusual to have change orders come up.

Aaron Bunker commented that one aspect that Pete is looking at specifically is the dosing at the treatment plants and that Issam’s expertise is in this.

Kenyon commented once again that if something is coming before the Board for approval and money is involved, he wants to see where the money is coming from the budget, how much we’ve spent thus far, how it will affect the remaining budget and that we have the money to pay without having to use the District’s ‘rainy day’ funds.

Mark reviewed the statement of income and wanted to make sure that we did not cut ourselves short and to be budget conscious.

Sandra Ramaker made a motion to approve on-call technical support services contract for the groundwater treatment plants with Issam Najm Ph.D., P.E. of Water Quality & Treatment Solutions, Inc. not to exceed $10,000. Ted Miller seconded the motion.

Kenyon questioned the motion and asked if legal should not look at contract before signing and Mark questioned if there was a time-frame on the contract.

Sandra Ramaker amended her motion to include that costs for this come from professional services and lasts until June 30, 2011 and to re-evaluate this item at the budget session and have legal review contract before signing. Ted Miller seconded the amended motion and it passed unanimously. 5-0

7. Discussion & Possible Action – Consideration to approve construction of a dedicated pump station at Well #2 and a new discharge pipeline to eliminate the existing pipeline, booster pump station and old concrete reservoir in Bunkerville at an estimated cost of $90,000

Ken had met with staff and they had suggested possibly eliminating that reservoir and pump station. Ken had worked up the cost/value estimates on the white board comparing buying the land and power charges against a new system and reviewed these numbers with the Board. Staff has stated that it is not a good system for the potable system and it is not big enough or high enough in elevation for a secondary system. Ken had distributed an assessment of the land value showing that this property appraised at $83,000. Ken stated that we could design and build a new system for less than the cost of the land and one year of energy costs.

Kenyon questioned the engineering costs and Ken stated that we re-did the pump station for the secondary system in Bunkerville without engineering, but you could probably add on 20% of the cost for a small project like this. Kenyon stated that his personal opinion is that any kind of project like this we need to have a professional tell us what needs to be put in and that we have approval from all entities like the county and state for right-of-ways, etc.

Ken stated that he would have Bowen, Collins and Associates look at and give estimate for design and put in next years’ budget.

Mark also requested that Ken appear before the Bunkerville Town Board and inform them of what the District will be doing in Bunkerville.

Mark McEwen made a motion to an engineering study by Bowen, Collins & Associates for a future pump station at Well #2 and a new pipeline. Kenyon Levitt seconded this motion and it was unanimously carried. 5-0

8. Discussion & Possible Action – Consideration to withdraw offer for purchase or establish a new purchase offer for property at 33 E. Riverside Road based on the appraised value of the property and the District’s value of that property.

Bo began by stating that the agenda item was a bit misleading in that there was actually no offer to withdraw. At the last board meeting, the Board had made an offer and it was rejected and a counter offer was presented, but there was no offer to withdraw.

Kenyon stated that with the action of the last item, we would not be purchasing the land.

Ken stated that we may want to talk to Joe Bowler and ask for consideration for a couple years until District property can be abandoned and/or moved.
Mark stated that he would like to see the engineering study before any decisions made.

Joe Bowler representing Coal Creek Company stated that his understanding is the District will not be using anything on the property and everything will be removed.
Ken stated that the pumps and motors could easily be removed, but that the concrete reservoir would be much more difficult and is suggesting that the reservoir would make a great foundation for a future home.

Mr. Bowler stated that the tank was right in the middle of the property, circular and detrimental to splitting into four lots and would most likely like it removed.

9. Discussion & Possible Action – Consideration of matters relating to the City of Mesquite’s annexation of properties in Lincoln County and sources of water for those properties. Consideration of Board ratification of the General Manager’s February 15, 2011 statement to the Board regarding the District’s water service area and assistance related to legislative amendments.

Karl explained that this was put back on the agenda for clarification in that the Board failed to make a motion whether they supported the statement or not.

Mark stated that he had met with legal counsel and went over the statement and thinks that we should substitute the following motion:

Mark McEwen made a motion that the Board give instruction to the General Manager to monitor all action; legislative, in the courts, or otherwise concerning the proposed annexation. Mark further moved that we reiterate that the District will not serve any property that is not located in our authorized service area unless or until these issues have been resolved by the legislature, the courts, or otherwise. Ted Miller seconded the motion.

Karl stated that legal counsel has suggested that this may be confusing and that the Board may want to have some discussion. Karl further stated that it was proposed last week that the general managers, legal counsel and a couple board members from the LCWD and the VVWD meet.

Wade Poulsen, LCWD General Manager, reiterated these remarks stating that they would like to form a working group and work on an Interlocal agreement.

The President called for a vote and the motion passed unanimously. 5-0

Bo commented that Ken as the general manager has been contacted from time to time from the City, developers and various individuals wanting the District’s point of view and one of his primary concerns is that water pumped from Basin 221 may affect Basin 222.

10. General Manager’s Report

Ken handed out a written report that he didn’t have time to put into packets. He informed the Board that we had received a thank you note from the Mesquite Vets. Ken also stated that after speaking with Aaron regarding well #30, some information has come to light that may allow for the rehab of #30 at a much lower cost than drilling a new well. There was further discussion and questions regarding a warranty and possible solutions and that this should be looked into further.

Ken also stated that the Bureau of Reclamation (BOR) has contacted the District regarding assistance with CIP projects for the District, but the deadline to submit an application is Friday, March 18th and without an emergency meeting, the Board could not give Board action. Bo looked up the Open Meeting Laws for calling an emergency meeting and this does not seem to fall within those parameters. Ken further stated that he would rather wait on the secondary feasibility study and that he is not comfortable with investing or pushing this through at this time.

Sandra asked about the accounting position and Ken stated that he needed to develop an evaluation system and get down to a short list for interviews. Ken also mentioned that David Waite had offered to help with developing some accounting questions for Ken to use in the interviews.

11. Public Comment

There was no public comment at this time.

12. Adjournment

President Karl Gustaveson adjourned the meeting at 6:37 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: 2011-03-15 (.pdf 32.K)