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

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on December 20, 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 and Secretary-Treasurer Kenyon Leavitt were 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
• Ted Miller led the pledge.
• Public Comment – Delmar Latham questioned if each item would be opened for public comment or should he comment now.  He was informed that public comments would be accepted during each item.
• Board Comments - None
• President of Board Comments – Karl commented that he was glad to get away and that he just got back from Maine seeing his grandkids and had a great time.

CONSENT AGENDA:

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

1. For Possible Action - Approve Agenda

2. For Possible Action – Approve  Minutes from 12/6/11 Regular Board Meeting

3. For Possible Action – Approve Bills Paid since last public meeting- $150,406.76

** End of Consent Agenda**

4. For Presentation & Discussion – Forsgren Associates, Inc. will present the concept of an Integrated Water Resource Management Plan for Basin 222

Ken began by introducing and thanking Forsgren for their initiative for the water resource plan for the basin.  Ryan Wheeler began by stating that he agreed with Karl in stating that this may be the most single important thing for the VVWD and other entities within the entire basin.  Ryan also stated that hopefully we can erase the state lines and look out for the best interests of the water resources within the basin.  Ryan stated that the reason that they were here today was because they had recommended a basin study in their Secondary Feasibility Study and explained some of the steps that the District would need to take to accomplish this; including time frame and potential costs.  Ryan introduced his colleagues Rick Noll and Clarence Kemp along with their qualifications and expertise that they would share.

Ryan, through a power point presentation, explained what a water resource plan was and reviewed where the District was today.  The District has had a couple initial studies conducted; initiated contact with stakeholders within the basin; and have begun pursuing funding opportunities.  Ryan reviewed maps and the area of Basin 222; who the senior water right holders were; and what would be the next steps.

Rick Noll stated that the District should organize next.  The District has more or less already adopted the role of the project sponsor.  The District would then need to select a program manager, and then develop and implement the program.  Rick explained how the program would work through funding cycles.  Rick reviewed a list of stakeholders and what their roles may entail.  Rick also explained that he was involved with another Integrated Water Resource Management Plan (IWRMP) in Idaho and how that proceeded.

Clarence Kemp spoke of his similar experiences with a program of this nature in Wyoming.  Clarence proceeded to explain the competing interests; the technical aspects of the project; and the legal issues of such a project.

There was discussion regarding a program manager with Forsgren expressing their desire to fill that position.

5. For Discussion & for Possible Action – Consideration to direct the General Manager to continue shaping a coalition to address the water resources in Basin 222, including the pursuit of grant opportunities and securing a consulting team.

Ken stated that he recommends that the District begin getting a coalition together and that he has had eleven entities thus far show interest in this project.  Ken further stated that he had heard from Bureau of Reclamation (BOR), Amy Porter, who stated that she really liked the District’s letter of interest and seems to think that the District has a good shot for this funding.  The proposals must be submitted by February 10th.  Ken thought that the best chance at winning this grant and empowering each member and state as being part of this entire process was to meet in January to cement our support and work towards affirming the project goals along with a few other key issues; one being retaining a consultant.  Ken stated that he would ask the Board for approval to get a coalition together and pursue the grant.

Ted Miller made a motion to direct the General Manager to continue shaping a coalition to address the water resources in Basin 222, including the pursuit of grant opportunities and securing a consulting team. 

Sandra questioned if a consulting team was required at this time.  Ken answered that the District would shoulder the burden to get the proposal in to the BOR at this time.

Sandra Ramaker seconded the motion and it was unanimously carried.  3-0

6. For Discussion & for Possible Action – Consideration to revise the District policy to save audio recordings of public meetings and have them available for ready access for a period of five (5) years and then to archive them for permanent preservation.

Ken stated that the District’s past experience with legal matters has shown that it would have been nice to have recordings of Board meetings older than a year for controversial issues and legal implications that the District has been facing.  The District currently abides by NRS and the Open Meeting Law by retaining audio recordings for one year; but with saving the audio recordings to a cd and through the software that is used, the District is able to store the recordings without using so much space.  Ken further stated that the policy’s intention is to retain these recordings as long as is practical, which should serve virtually all purposes they may be called upon for.

The Board further discussed where these recordings would be stored. 

Bo stated that NRS requires audio recordings to be made available for one year, but that the District could most certainly adopt a policy to save the recordings longer.  Bo also that he would like the policy to state that the District will do everything it can to keep records for as long as possible, and he would also like to have something in there that in the event something is recorded over is lost, Bo doesn’t want the District in incur some liability under this policy simply because the District has a policy that raises our obligations much higher.

Sandra Ramaker made a motion to retain all audio recordings of the District’s public meetings for a period of five (5) years and have them available for ready access and then to archive them for permanent preservation; and also add to the policy that the District would not incur liability if something gets lost, simply because we have a policy, but liability would only be if the District doesn’t keep the recording for the minimal statutory period of one year. Ted Miller seconded this motion and it was unanimously carried.  3-0

7. For Discussion & for Possible Action – Review, possibly change, and consideration to approve the message from the General Manager for the VVWD web site.

Ken stated he had brought this to the Board previously and maybe somewhat premature, but after discussions tonight regarding the basin study and forming a coalition, he felt that it was the right time to bring this forth again and have it on the website as a priority to the District.

The Board discussed Ken’s message and all felt that the public would not understand it as written and that it was too technical for the general public.  The Board suggested informing the public of what has been accomplished, what is in the near future, the conservation garden and better ways to save water in more general terms may be more suitable for the GM message.

There was further discussion and suggestions as to what the GM message should include and how often the message should be updated.

Ken stated that he would take all that was suggested to heart and reword his message and give indication of the direction the District is going and generalize it more.

8. For Discussion & for Possible Action – Consideration to approve the District’s revised policy for utility easements per the language submitted by the District’s legal counsel, Bingham & Snow, LLP.

At the December 6th Board meeting the Board agreed to closer define the distribution system responsibility of the District.  The Board asked counsel to submit language for inclusion in the District’s Design Standards and Specifications, Section III, Paragraph I.  Bo had included revised wording in the packet, which Ken had made some adjustments and distributed his version for approval that Bo has also approved.

Ted Miller made a motion to approve the District’s revised policy for utility easement per the language submitted by the District’s legal counsel, Bingham & Snow, LLP.  Sandra Ramaker seconded the motion and it was unanimously carried.  3-0

9. For Discussion & for Possible Action – Consideration of the District providing services to repair privately owned water lines at the request of residents for additional charges.  When customers’ meters are not in the utility easements next to our mains, water resources are lost and unbilled when there are leaks in un-metered lines between the District’s owned distribution system and customers’ meters.  Consideration of the District setting up a billable service for the repair or service of those lines.  Staff requests that the Board authorize staff to look into this option, with potential services and billing rates.

Ken initially thought that this may be possible, but after the agenda and packets had been distributed, Ken met with staff and after further discussion Ken does not think that the District should move forward with this service for liability and insurance reasons.  Ken further stated that the District has always worked with the local plumbers and if they required a part, the District will loan them the part and then the plumber can restock any parts used.  Ken stated that the District would continue with this practice.

There was further discussion regarding competition and legal implications.  Bo also stated that he did not think the District should put themselves in this type of situation and according to the District’s enabling legislature the only possible way the District could provide this service is if there is an emergency to save water and the District can just shut the water off.

The item died for a lack of a motion.

10. For Discussion & for Possible Action – Consideration to direct staff to develop a Request for Proposals (RFP) for potential solar or other alternative cost-saving, green energy options for the District and possibly other partners to consider.

Ken had included a written memo stating that he has been talking with solar power companies who have different ideas on how to bring clean power to our valley while saving on our energy bills.  Ken’s memo suggests that staff carefully craft a Request for Proposals (RFQ), potentially with the City, casinos, or other stakeholders to weigh possible benefits and opportunities.

Delmar Latham, General Manager of Overton Power District (OPD), wanted to clarify various roles of different entities.  OPD is very similar to the VVWD in regards to their enabling legislatures and how they operate.  By statute to bring in a solar resource or green resource to OPD service territory would have to be done through OPD.  In order for an RFP to go out to request service, the proprietor would have to enter into an agreement with OPD; and then OPD would have to enter into an agreement with VVWD (in this case) for the off-take of that resource.  Delmar stated that it needed to be a cooperative effort in that RFP process.  Delmar further stated that there are some impediments to doing this immediately since OPD have purchased resource for the loads within their service territory through 2017.  So to replace or to bring any new resource in the next six year period would displace existing purchases and those are Takes or pay agreements that OPD has.  The earliest that OPD could bring in an alternative resource would be January 1, 2018. Delmar also stated that they have been in discussions with developing pump storage and some other options that would be “new load” and new load would be looked at differently than existing loads.  Existing loads can be looked at in the same manner, but that would also have to be looked at to meet the 2018 deadline for contract changes.  Delmar explained what OPD’s obligations were to green energy, Nevada Power and why we are where we are because we our both not for profit organizations.  Green energy is in the 9.5 to 10 cent range and OPD’s purchased power is currently at 6.5 cents.  Delmar also stated that he believes solar has a future, but it will need to be proven first that it is a cheaper source of power.

Karl questioned Delmar if the District could generate its own power and use that within the system.  Delmar explained that individuals could put solar panels on for their own use, but you could not bring an outside resource in.  Delmar further explained net-metering per their residential policy.

Ken stated that he has received several calls from Nano Solar and BLT and thought that if the District could save money, the RFP process, as long as it coordinates with OPD, could be put together.  Ken also stated that solar power does not use any water compared to other generated power.

There continued to be further discussion with the Board suggesting that the VVWD be receptive and open minded, but that VVWD was not ready to take the lead in this.

The item died for a lack of a motion.

11. For Discussion & for Possible Action – Consideration to approve Resolution 2011-01 to form as proposed for board approval consistent with their purchasing limit policy approved for the General Manager on December 6, 2011.  This resolution would supersede Resolution 2002-1 for the same matter.

This resolution was approved at the last meeting, but was on the agenda to be approved to form.  Ken stated that the first sentence in #2 was the same as #4.  Ken suggested striking the first sentence of #2.

Sandra Ramaker made a motion to approve Resolution 2011-01 to form as proposed with the amendment of striking the first sentence in #2.  Ted Miller seconded the motion and it was unanimously carried.  3-0

12. Hydrologist’s Report

Aaron had included a written report and also reported that he had attended a hydrologic workshop last week that is part of the HMMP.  Aaron is trying to put together a first year annual plan to gather information on what data is available for Basin 222.

Aaron also stated that he is looking into Well #33 since it is making noise indicating other issues may arise and how to remedy the situation.  Well #32 is running and Aaron stated that he is looking to make it more efficient and that items will be moved from Well #30 to Well #32.

Aaron further stated that he has completed the 2011 water quality sampling and that the information would be in the Consumer Confidence Report due by July 1st.

13.  General Manager’s Report

Ken had included a written report and also informed the Board that he currently had a proposal on his desk to move electrical components from Well #30 to Well #32.  Research from staff indicates that the District will get higher efficiency from the existing pump and when we get a new pump in we will also be able to use without the efficiency drops.

Ken also informed the Board that he had received good news from Robcyn in that the District’s settlement agreement for trespass for Well #30 site is a non-issue now.  Bo commented that everything has been settled except for the tower.

14. Public Comment

Mike Chandler with Bowen & Collins complimented District staff on their efforts towards a coalition and obtaining the grant.  Mike noted that he believes the Board should consider allowing the General Manager to take a more pragmatic approach with Beaver Dam Water Company (BDWC) and allowing them a voice in the coalition since there has been an antagonistic relationship between the BDWC and the VVWD.  Mike also commented on solar power and that St. George has one of the largest municipal solar fields in the western US.  Utah actually created enabling legislation that allowed the city to make a large solar field and allow people to purchase a solar panel and receive the tax credit on their home.  The panel itself is actually attached to the title of the home.  Mike again offered to take staff and Board members on a tour of the facility.
Sandra thanked Ken, staff, Bo and other Board members for their help, a good year, and wished everyone Happy Holidays.

15. Adjournment

President Karl Gustaveson adjourned the meeting at 7:20 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: 2011-12-20 (.pdf 40.K)