VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
JUNE 21, 2011

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on June 21, 2011, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Secretary-Treasurer Kenyon Leavitt, and Board Members Ted Miller and Sandra Ramaker.  Vice-President Mark McEwen was not present.  Also present were District General Manager Ken Rock, District Legal Counsel Bo Bingham, District Hydrologist Aaron Bunker, District Accountant Wesley Smith, 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 Sandra Ramaker led the pledge.

Public Comment – Mr. Kent Harper, the new editor and general manager of the Mesquite Local News introduced himself.  Mr. Link Browder with the Furman Group also introduced himself.

Discussion: Board Comments – Ted commented that the financial statement included in the packets was the best he has seen since he has been on the Board.
  President of Board Comments - None

CONSENT AGENDA:

Kenyon Leavitt made a motion to approve the consent agenda as listed below.  Ted Miller seconded this motion and it was unanimously carried.  4-0

1. Discussion & Action - Approve Agenda

2. Discussion & Action – Approve Minutes from 6/7/11 Regular Board Meeting

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

4. Discussion & Action – Approve Bills Paid - $137,026.63

** End of Consent Agenda**

5. Discussion & Possible Action – Evaluation and design report presented by Bowen, Collins & Associates, Inc. (BCA) on the options and costs regarding reconfiguration of the Bunkerville culinary water system.  Possible action may include, but is not limited to, approving an alternative as presented and direction to Bowen, Collins & Associates, Inc. for engineering design services associated with this project under the General Services Contract between BCA and VVWD.

Mike Chandler with BCA stated that he was approached by Ken Rock and asked to look at the possibility of reconfiguring the current Bunkerville culinary system for potential cost savings, as well to address a couple issues with the current figuration and the way things are laid out.  Mike went into explanation of how the current system is set up and the system deficiencies; which include the operational inefficiencies, the Bunkerville tank easement and Well #2 transmission pipelines.

Mike then went into the replacement alternatives and the costs associated with each alternative suggestion. Mike explained that they had come up with three alternatives with the first alternative being to maintain the existing system.  Mike had also included five tables with costs associated for different scenarios within each alternative.  Mike also stated that there were two items that he felt were common for all the alternatives; one being that the pipeline should be replaced from the well out to Riverside; the second being that the well (#2) was equipped in 1991 and it is anticipated that it will require replacement in the next five to ten years.  Mike informed the Board that the costs for both the replacement of the transmission pipeline and the replacement of the well pump have been included in all three alternatives.  Mike then proceeded to review each of the alternatives and the costs associated with each for a 20-year life cycle. 

Ted questioned the cost of abandoning the Bunkerville tank because he did not see this price and Ken stated that this would be relatively inexpensive.  Karl stated that during budget work session the District had only budgeted pipe at $40/ft. compared to BCA budgeting $80/ft., but that these prices are still not set and can change daily.  Mike further explained how BCA came up with their costs and estimates.  Kenyon stated that after reviewing and seeing the costs and the District not budgeting enough, he feels that the District should replace the transmission line first.  Mike Chandler stated that the cheapest cost to the District would be to replace the booster up front for approximately $25,000 and the pipeline replacement estimates are $192,000.

There was further discussion regarding budgeted amounts; saving money by costs associated with the arsenic treatment plants; possibly building the booster in-house; what should the District do; and challenges facing the District.

Ken stated that he was in favor of evaluating Kenyon’s path for replacing the pipeline and booster and requesting BCA to design and to bid each project out separately.  There was further discussion regarding designing timeframe.  Mike Chandler stated that he could do a task order under the general services agreement with costs, work description and bring back for approval at the next meeting.

Kenyon Leavitt made a motion to have BCA continue with the design process on the Bunkerville project and to come back at the next board meeting with a task order and to have BCA work towards the second meeting in August to come back with a design and engineer’s estimate for the District.  Ted Miller seconded this motion and it was unanimously carried.  4-0

6.  Discussion & Possible Action – Consideration to approve opening a new account at Bank of Nevada for 2011 Bond payments

Wes Smith explained that most of our bonds were with Wells Fargo and that the District makes monthly payments for the semi-annual and annual payments to the bondholders, but the 2011 Bond is a General Obligation Bond and the District will not be making monthly payments to Wells Fargo.  The District will still need to set aside the money that will pay these semi-annual and annual payments to the bondholders.  This would be an interest bearing account at Bank of Nevada and the District will transfer monthly payments from checking to this account to meet the District’s obligations.

Ted stated that he would abstain from this item since he does business with this bank.

Sandra Ramaker made a motion approving the opening of a new account at Bank of Nevada for the 2011 Bond payments.  Kenyon Leavitt seconded this motion and it was unanimously carried by a vote of 3-0 with Ted Miller abstaining.

7. Discussion – Update on conservation efforts – William Peterson

Pete had included a memo to the Board that Ken proceeded to read for the record and the public and added his comments and explanation.
After item opened to the public, Wade Poulsen with LCWD suggested that the District contact Bruno Bowls who works with SNWA and lives in Ely.  Wade stated that Mr. Bowls has stated on several occasions that if someone wanted to use him as a resource for conservation that he was very willing to be of assistance.  Mr. Bowls has actually written his own training program for conservation education for young children.

Sandra stated that she thought it was great what Mr. Peterson was doing, but was also concerned and hoped that before an advisory committee was formed that it would come back before the Board for approval, and Ken agreed to do so.

8. Presentation for Discussion & Possible Action – A presentation by the General Manager.  The Board may approve of continuing investigations into support for integrating the proposed secondary water system into an affordable and sustainable renewable energy plan for the community.

Ken distributed colored copies of the power point presentation entitled “New Ideas for the Secondary Water System”.  Ken began with the current conditions locally, State, Nationally and worldwide to ponder and some quotes.  Ken explained his idea of expanding the secondary water system and including hydroelectric generators to make power from all water descending from higher reservoirs; using solar power to pump water and power the community during daylight; and using hydroelectric power to power the community at night.  This process would repeat every day and night.  Ken proceeded to inform the Board how and whom he has presented this concept to and reasons why he believes this will work.  Ken then explained the engineering refinement and validation for his idea.

Ken introduced Link Browder with the Furman Group who explained opportunities for funding, which the District is authorized to receive.  Link stated that some grants could offer up to a 75% cost share with the District and other stakeholders having to pay the remaining 25% of the costs, which must be in place before grant is approved.  Link thought that if the City of Mesquite and the District worked together that it would be easier to pass through delegation.

Ken then reviewed the bottom line assessment of his idea; the contributors; how the project would receive a return on its investment; the timing; and the recent VVWD accomplishments.
Ken opened it up for questions and comments with a lengthy discussion continuing on topics such as evaporation, data, costs, sites, timing, money, stakeholders and funding process.

Link stated that the secondary system project would be a good candidate for federal funding even without renewable energy being involved.
There continued to be discussion regarding the District and not being able to be the front runner on this project and that the secondary system should be the District’s first priority.

Direction from the Board to Ken was to do what he can do without neglecting his other duties and running the District’s day to day operations, and that he could begin speaking with stakeholders. 

9. Hydrologist’s Report

Aaron had included a written report, and he also included the final irrigation lease agreement and application.  Aaron stated that Wolf Creek Golf Course signed the lease agreement yesterday and Conestoga Golf Course is expected to sign a lease agreement tomorrow.

Aaron also had included the Consumer Confidence Report that he had prepared and would be distributed to all District customers later this week.  Aaron also stated that there were no violations with either water quality or monitoring for this report.

Aaron had also been supplied with a composite pipe sample that may take the place of polyethylene pipe and showed this pipe to the Board.
Aaron also stated that staff was monitoring well #33 closely because it is making a different pitch, but that there has been no decline in production, which is a good thing.

10.  General Manager’s Report

Ken had not included a written report since he has been disabled for the past week or more and is hoping that things get back to normal.

11. Public Comment

There was no public comment at this time.

12. Adjournment

President Karl Gustaveson adjourned the meeting at 7:19 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: 2011-06-21 (.pdf 27.K)