VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
SEPTEMBER 20, 2011

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on September 20, 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 Eric Wilbanks, 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.
• Mark McEwen offered a Prayer
• Sandra Ramaker led the pledge.
• Public Comment – There was no public comment at this time.
• Board Comments – Ted commented that the profit/loss statement looked the best it has looked in a long while and that the District was running in the black.
• President of Board Comments - None

CONSENT AGENDA:

Wade Poulsen questioned if the workshop scheduled for the 29th would be opened to the public and was informed that it was.

Sandra Ramaker made a motion to approve items 1-7 on the consent agenda and the regular agenda with reversing items 9 and 10 as listed below.  Kenyon Leavitt seconded this motion and it was unanimously carried.  5-0

1. For Possible Action - Approve Agenda  - Items 9 and 10 reversed

2. For Possible Action – Approve  Minutes from 9/6/11 Regular Board Meeting

3. For Possible Action – Approve Minutes from 9/13/11 Work Session

4. For Possible Action – Approve Financial Statement for July 2011

5. For Possible Action – Approve Bills Paid since last public meeting- $466,666.26

6. For Possible Action – Approve Workshop scheduled for September 29, 2011 at 9:00 a.m. with Bowen, Collins & Associates (BCA) regarding Basin 222 Study

7. For Possible Action – Approve Workshop scheduled for November 3, 2011 at 9:00 a.m. with Forsgren Associates, Inc. regarding Secondary Feasibility Study

** End of Consent Agenda**

8. For Discussion & for Possible Action – Discussion of the Virgin River Habitat Conservation & Recovery Program (VRHCRP) and the District’s role and financial participation.  Consideration of the discussions concerning the VRHCRP as presented in the September 13, 2011 workshop.  Possible action may include adoption of Ordinance 4.  Possible action may also include determining the amount of the fee to be imposed by the District through Ordinance 4 and other conditions in order to address the District’s financial participation in the VRHCRP.

Ken began by stating that Eric had modified the draft Ordinance IV and that there were two different versions.  Ken stated that it seems to be the opinion of Fish & Wildlife and Karl Gustaveson that Ordinance IV fees should be collected at the time service is to be provided and paid when the connection or meter fee is paid.  The other version states that the Ordinance IV fee should be paid at the time when Ordinance II fees are paid before the maps are signed off on.

Eric Wilbanks stated that in the District’s Rules & Regulations, Section IV-7 states that Ordinance IV fees should be paid at the same time as Ordinance II fees.  If the Board desires to have Ordinance IV fees paid at the time of connection, Eric recommends that the District’s Rules & Regulations, Section IV-7 be changed also so that all Rules & Regulations and Ordinances are consistent.  It was discussed that the City pays when the land is taken down and that the current draft of the VRHCRP plan states that the District’s fee will be paid at the time of connection, so requiring that Ordinance IV fees be paid at the time of connection would be consistent with the current VRHCRP plan.

Karl stated that the fees the District will collect are very competitive, within $150 of what other entities in Nevada are collecting.

Eric further stated that if the Board elects to have Ordinance IV fees paid at the time connection fees are paid, he would recommend that the Board table this item so that Section IV-7 of the Rules & Regulations may be changed and that there is no conflict with other policies.

Ted Miller commented that he would not support this because the District does not have enough water and feels that the District is adding on a tax and that makes it difficult for developers.

Eric explained that the District has filed for an incidental take permit associated with the Endangered Species Act in order to utilize the water that is allocated to the District; and as a requirement under the Endangered Species Act when we apply for that type of permit, we are required to provide a habitat conservation plan.  The habitat conservation plan we are working towards is the VRHCRP.  In order for the District to receive the incidental take permit, the District must comply with the habitat conservation plan requirement.

Ken stated that if the Board chooses to return with changes, he also suggested that they may want to review item 5 in Ordinance IV and have it state that the District will not use money from its general fund to pay for the VRHCRP.  Eric and Board discussed this and stated that verbiage preventing use of the District’s general fund for payment of the VRHCRP was to be included in the VRHCRP plan; along with verbiage that the District may increase the Ordinance IV fee pursuant to increase in the cost of living.  Karl stated that he would like to see this verbiage also within Ordinance IV.

There continued to be discussion regarding the VRHCRP fund and the District’s ability to receive payment in return for services rendered.  Eric stated that there will probably be an interlocal agreement drawn up between the City and the VVWD regarding services that VVWD may provide to assist the City in satisfying its monitoring obligations under the VRHCRP.
Ken stated that with the relationship gained with the VRHCRP members, Aaron and he had a conversation with a few of the Executive Committee members and agreed to have a workshop.  The workshop will hopefully find an economical and viable solution for an application for grant funding to rebuild the Bunkerville Irrigation Company (BIC) diversion to the benefit of the agency, BIC, SNWA and the City of Mesquite, as well as all the BIC shareholders.

The item was opened to the public with Mr. David Ballweg stating that he was against any new fees.

Kenyon Leavitt made a motion to table this item until the next board meeting, October 4, 2011, so that Ordinance IV could be revised to require that fees will be collected at the time of connection consistent with the VRHCRP plan.  Sandra Ramaker seconded this motion and it was passed by a vote of 3-2 with Ted Miller and Mark McEwen opposed.

Direction was given to legal counsel to also have an item on the next agenda to amend the District’s Rules & Regulations section IV-7 to coincide with the verbiage of Ordinance IV for possible action.

10. For Discussion & for Possible Action – Review, possibly change, and approve the message from the General Manager

Ken stated that his intention was to revise the general manager message on the District’s website to something more contemporary and upbeat to help the people understand what the District is doing.  Ken thought that he may be setting precedents and before he put this on the website, he wanted the Board to be aware of it and have their approval.  Ken began reading his memorandum to the Board explaining his reasoning behind changing the message.

The Board discussed the amount of water in the basin and, when and if, this amount could ever be fully determined.  Ken stated that the two things that have changed the most in the past year is questioning any data from the previous Chief Hydrologist regarding the amount of water in the basin; and the possibility of the annexation of the Lincoln County Land Act (LCLA) and needing more water to service this area.

Discussion ensued regarding costs, state lines, working together with other entities sharing the basin, and if it is actually feasible.  Kenyon asked if Ken’s statements were not the goal to begin with and stated that he was concerned that the District might be obligating itself to do things once it was put in writing on the website.  The Board continued to discuss the sharing of the aquifer and continuing or beginning dialogue with other entities and looking at the future.  Ken stated that maybe the Board should wait before approving this being put on the District’s website until after the workshop with BCA regarding Basin 222 and hearing their findings, options and possible direction.

Mark McEwen commented that he was reading the message from a rate payer’s point of view and the words mean that the District will be spending a lot of money.  Karl stated that we needed to be careful because the message sounds like we are out of water, which is not necessarily true.  Ken thought that he could come back after the workshops and decide then if the message should be amended.

The item died for a lack of a motion.

9. For Discussion & for Possible Action – Consideration to appoint a representative to the Mesquite Economic Development Commission.  Candidates may include the current representative, Board Member Ted Miller; a different board member; or a staff member.

Ted has been on this committee for five years between representing the District and the Chamber of Commerce.  Karl stated that the economic board has had a lot more interest recently than in the past in terms of more involvement with the community, moving things forward and trying to bring in services to provide jobs, etc.  Ted questioned why this item was on the agenda at this time when the Board had appointed him to this committee and thought it would be changed in January when officers were elected.  Sandra stated that she had requested that this be put on the agenda because she was unaware of who represented the District.  Sandra further stated that after attending a few of these meetings; with everything going on in the community; and some of the dialogue that could be brought in with representation; she would like to see the General Manager representing the VVWD in that position. 

Kenyon questioned what the Economic Development Commission did and Ted explained that they meet once a month and that they have a representative from each utility, the banking industry, etc.  Ted also stated that when someone new comes to town they can attend these meetings and receive information from the business representatives and make decisions whether to come or build in Mesquite.
The item being opened to the public, David Ballweg stated that his perception is that the committee is only there to listen when they need voices on the committee.

Karl stated that he felt the District’s representative should have the most knowledge and know about water and feels the general manager should also be the District’s representative.  Karl further stated that the Board has never received any reports or feedback from Ted.  Ken stated that if he was assigned this responsibility he would represent the District and try to be responsive to the needs of the community.  Ken further stated that economic development when coupled with life quality improvements is desirable.

There continued to be discussion about details and information regarding the committee, including the voluntariness of participation on the committee; the requirements of the person who represents the District on the committee; the advisory nature of the committee; the lack of policy making authority by the committee; and the fact that copies of applications for the committee are included in the board packets.  Karl asked Ted to keep the Board informed of information from the meetings.

The item died for a lack of a motion.

10. Hydrologist’s Report

Aaron had included a written report and also stated that most of his time has been reviewing the VRHCRP documents and the HMMP documents and Cooperative Agreement document between the City of Mesquite and District.  Aaron also mentioned that he has been working on water rights and a change application for Riverside.  Aaron will accompany LCWD and Vidler tomorrow with their monitoring program in the Tule Desert.

11.  General Manager’s Report

Ken had included a written report.  Ken also expressed his appreciation to the Board and the difficult issues they have had to deal with.  Ken also stated that the auditors were here last week and would present their audit findings at the first meeting in October.

12. Public Comment

There was no public comment at this time.

13. Adjournment

President Karl Gustaveson adjourned the meeting at 6:31 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: 2011-09-20 (.pdf 34.K)