VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
APRIL 19, 2011

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on April 19, 2011, at the Virgin Valley Water District Office at 5:00 p.m. Attending were President Karl Gustaveson and Board Members Ted Miller and Sandra Ramaker. Vice-President Mark McEwen, Secretary-Treasurer Kenyon Leavitt and District General Manager Ken Rock were not present. Also present were 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 5:00 p.m.

Karl Gustaveson offered a Prayer and Ted Miller led the pledge.

Public Comment – Travis Anderson representing Bulloch Brothers Engineering stated that he was present for item #4 on the agenda to answer any questions the Board may have regarding this item.

Discussion: Board Comments - None
President of Board Comments – Karl announced that the General Manager, Ken Rock, has some serious back issues and will be having surgery. Karl further stated that Ken would possibly be out of the office four to five weeks and that the Board would seek out an Interim General Manager until Ken was able to return to work.

CONSENT AGENDA:

Sandra Ramaker made a motion to approve the consent agenda as listed below. Ted Miller seconded this motion and it was unanimously carried. 3-0

1. Discussion & Action - Approve Agenda

2. Discussion & Action – Approve Minutes from 4/5/11 Regular Board Meeting

3. Discussion & Action – Approve Bills Paid - $179,624.15

** End of Consent Agenda**

4. Discussion & Action – Consideration to accept proposal from Bulloch Brothers Engineering for engineering services, including, but not limited to, preparation and provision of contract documents and specifications for bidding purposes, related to pressure relief valve assemblies, 24” inline valve and flush line outlet system, such work not to exceed $2,500

Travis Anderson with Bulloch Brothers Engineering (BBE) stated that BBE has been working on improvement plans to put pressure relief valve systems at Town Wash and Abbott Wash and to relieve the high pressure spikes if we get some; also, there is the 24” inline valve on Mesquite Heights Road; and also for the outlet system at the arsenic plant site in Lincoln County. Travis further stated that the improvement plans were 95% complete, lacking one signature from the City of Mesquite and then the next step would be to bid these services out. Travis also stated that the proposal entails the construction documents, bidding services that BBE would provide, and a more detailed construction estimate. The first estimate was $180,000 to $200,000, and now with having more of what the scope is, they can verify this estimate. They would also provide documentation to obtain a Clark County Labor Commission Number. Also, the proposal provided would include providing seven (7) copies of the improvement plans with the specifications, services from BBE to aid in the evaluation of the bids, opening of the bids and any other services that BBE would normally provide under this bidding scope.

Karl explained to the public other valves that have failed and why these services were critical to the District before any future breaks occurred. Karl also asked Aaron to explain where the funds would come from within the budget to fund this project. Aaron stated that he and Wes Smith had looked over this and Karl introduced Wes as the District’s new Accountant for the District.

Wes stated that the District was 79 to 80% into the budget year and the expenses for repairs and maintenance was at 48%. Wes further stated that we are well under budget and the prices fall well within the scope.

Ted asked if this would take care of all the valves in concern and if Bo had approved the contract. Travis answered that with the other pressure reducing valves being installed and with this project, the District should be okay except for unforeseen items. Bo was informed that we have used this contract in the past and with it only being $2,500 he was comfortable with it.

Sandra Ramaker made a motion to accept the contract from Bulloch Brothers Engineering for engineering services, including, but not limited to, preparation and provision of contract documents and specifications for bidding purposes, related to pressure relief valve assemblies, 24” inline valve and flush line outlet system, not to exceed $2,500. Ted Miller seconded this motion and it was unanimously approved. 3-0

5. Discussion & Action – Consideration to establish conditions and parameters for metered service of river water from the Mesquite Irrigation Company canal, in addition to the meter charges and water rates previously adopted and approved by Virgin Valley Water District for such service

Aaron informed the Board that the Board had previously approved the 9 items listed as the parameters for leasing river water and since that time, Ken has had conversations that led him to want to add a few more items to these parameters. The new items consist of if someone is currently under a lease contract with the VVWD they may have a pro-rated lease ‘refunded’ by users who switch to meters based on the number of days left on their lease. The value of the remaining lease may be applicable to the Rate Lock Fee, if desired. The second item reads that the Rate Lock fee scale will be reduced by 15% during each calendar year, with the first reduction being in calendar year 2012 and ending in 2020.

Aaron also informed the Board that he and Supervisor, Rob Faught, had inspected the meters currently at Wolf Creek Golf Course and the Oasis Golf Club and stated that these meters were in acceptable condition for use as is. Karl stated that Aaron had attended the Mesquite Irrigation Company meeting and that he had conversations with shareholders who stated some concerns. They would like the District to meet with the Board of the irrigation company to assess when the actual usage will occur on the irrigation ditch to make sure the irrigation ditch has the ability to handle it.

Aaron read aloud #10 & #11 of the parameters. District legal counsel stated that he would like the word ‘refund’ changed to ‘credit’ in #10. Bo further stated that he felt it would be appropriate to have this policy formalized in complete terms and brought back before the Board for final approval.

Ted stated he would not vote for this for the same reason as before, in that he doesn’t believe we should have locked in a rate for that long of term.

Karl opened the item for public comment. Rob Fuller with Wolf Creek Golf Course commented on the time frame and wanted to be able to use the ditch by metering by June 1st.

Sandra Ramaker made a motion to include numbers ‘10’ and ‘11’ to the parameters for river water service agreements for existing MIC water users with their own canal withdrawal and pumping systems; change the word ‘refund’ to ‘credit’; and to bring back as a formalized document at the next meeting for final approval. Karl Gustaveson seconded the motion and it passed by a vote of 2 to 1 with Ted Miller opposed.

6. Discussion – Consideration for optimizing the south side potable water system for reliability and economy – Report from the Hydrologist and General Manager on recent and more extensive general system optimization plans including a further assessment of well #30

Aaron began by stating that when well #31 failed on 1/11/11 we had no back-up to provide water, but with staff’s quick thinking a solution was provided and worked until well #31 was back on-line. The fix was sufficient for winter months, but the District would be about 1,000/gpm short in the summer months. Aaron provided a memorandum with a rehabilitation evaluation of well #30 with a separate chart of estimated costs for three different scenarios to rehabilitate well #30, along with recommendations. Aaron and Ken’s recommendation is not to rehabilitate well #30, but to look at other options to provide the water required for the summer months at lower costs.

 7. Discussion & Presentation – Presentation from the General Manager and Forsgren Associates on possible additional collaborative values for secondary water reservoirs, integrated with, Virgin Valley development planning considerations for water and electricity

Ryan Wheeler and Rudd Conover were here to present their report on the secondary water system. Rudd began by stating that the District’s General Manager was quite a visionary. Rudd stated that they wanted to talk about the elements of this study that dovetail it into going after a specific grant application. Rudd continued speaking of Ken’s vision and that it may seem far reaching, but he was thinking into the future about the District’s resource of water and its many uses and possibilities.

Ryan Wheeler stated that he would give an overview of the Secondary Water System Feasibility Study; the current and future hydro-turbine generation; and funding opportunities. Ryan reviewed what has been accomplished thus far with an overview of the study and proposed reservoir locations. Ryan then reviewed existing and future hydro-generation opportunities.

Rudd reviewed funding opportunities with a current opportunity from Bureau of Reclamation (BOR) for a WaterSMART grant: System Optimization Review Grants for FY 2011. Rudd further explained how this grant could be obtained; what opportunities could come from this grant; and that the District would have to request assistance from other local participants. Rudd stated that they talked about looking for additional money until they found out about this BOR grant that has some interesting strings attached. He further stated that they have expended approximately $10,000 of the $30,000 approved for their study. The BOR grant will not reimburse for any monies spent prior to receiving the grant. Rudd stated that there needed to be some discussion and we needed to stop the current contract with Forsgren and look at the potential of getting this grant that would allow them to multiply the money within this grant to take it to a different level of study. Forsgren’s scope of work for the secondary feasibility study does not meet the criteria for the WaterSMART grant and the application is due to the BOR by April 27, 2011. Rudd further stated that we should stop the contract with Forsgren as it is right now, and they will apply for the grant at no cost to the District in the hope of obtaining additional money to move forward. If the District does not qualify for the grant, Forsgren will pick up where they stopped and spend the remaining $20,000 under the current contract as stated.

There continued to be discussion regarding what the grant would provide, timetable to file and costs. Rudd concluded stating that we needed to look at renewable energy and that the District had the ability to determine their destiny, and until it is evaluated, we don’t know what that potential is.

Karl opened the item to the public with comments from Morris Workman, Wes Smith, Pam Adams with BOR, Rob Fuller and Mayor Holecheck.

Direction was given to post an agenda for a special meeting on Monday, April 25th at 5:00 p.m. to cancel the current contract with Forsgren and proceed with the BOR grant application and to approve an interim general manager in Ken’s absence.

8. Discussion & Action – Consideration to set a date and time for budget workshop meetings(s)

There was discussion on what would be the best date and time for everyone. Karl stated that he felt the public meetings should be held later in the day so that more public could be present.

Sandra Ramaker made a motion to have a budget workshop on Thursday, May 5, 2011 beginning at 9:00 a.m. Ted Miller seconded this motion and it was passed by a vote of 2 to 1 with Karl Gustaveson opposed.

9. Hydrologist’s Report

Aaron had included a written report with his significant events since the last meeting. He also stated that he attended the Virgin River Water Shed meeting last Wednesday and Thursday and that it was very informative.
Karl also stated that he attended Wednesday’s session and really enjoyed it.

10. General Manager’s Report

Ken had not included a report due to being off on medical leave.

11. Public Comment

Mayor Holecheck stated that she had promised Ken that she would come and give a short report and update on the flood situation. The Mayor stated that she and Tim Hacker had attended a very successful meeting with the ACOE; representatives in Washington, our congressional delegation flew in and other City staff members. Under the Flood Control Act of 1948, Section 205, there may be funding opportunities for a 65/35 with the Federal Government picking up the 65% if under six million dollars and the Flood Control would pick up the 35%; leaving the citizens of Mesquite not having to pay for any of it.

12. Adjournment

President Karl Gustaveson adjourned the meeting at 6:42 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: 2011-04-19 (.pdf 30.K)