VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
FEBRUARY 21, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on February 21, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker and Board Members Kenyon Leavitt and Richard Bowler.  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 5:02 p.m.
• Kenyon Leavitt offered a Prayer
• Ted Miller led the pledge.
• Public Comment – Wade Paulson, General Manager Lincoln County Water District (LCWD), thanked Ken Rock for attending the LCWD Board Meeting and offering good comments and advice.
• Board Comments - None
• President of Board Comments - None

CONSENT AGENDA:

Rich Bowler made a motion to approve the agenda and consent agenda as listed below.  Ted Miller seconded this motion and it was unanimously carried.  5-0

1. For Possible Action - Approve Agenda

2. For Possible Action – Approve  Minutes from 2/7/12 Regular Board Meeting

3. For Possible Action – Approve Bills Paid since last public meeting- $88,734.74

** End of Consent Agenda**

4. For Discussion, Information & for Possible Action – Hear staff’s report on the failure of Well #32 and its substitution as a priority ahead of well #33.  Consideration to award contract and Notice to Proceed for the rehabilitation of Well #32 from bids to be received on February 21, 2012 to the lowest responsive and responsible bidder in the best interest of the Virgin Valley Water District

Ken included a memo and explained that the energy-saving above-ground electric start components from Well #30 were connected to Well #32 on February 13th.  The well started up and ran for about 20 minutes, using less power, before failing.  The electricians do not think it was the new components that caused the failure.  It appears to be an electric short down-hole, where this well has 2 submersible 500-HP motors.  Ken explained that Well #33 was to be rehabilitated first because of the noises it was making and Well #32 was its back-up; but with Well #32 failing and if Well #33 would fail there would be no back-up, making this an emergency because it would leave a portion of the community without water.

Because of the emergency, three bids were quickly sought and then received on this date and had been summarized by staff as shown on the attached bid break down sheet.  Boart Longyear had submitted the lowest bid, but did not provide all the information required and there were several specifics that had not been included that were necessary in order to evaluate the bid. Layne Christensen provided the next lowest bid and Zim Industries provided the highest bid.  Layne Christensen and Zim Industries’ bids were reasonably responsive to the request for bids and both provided sufficient information to evaluate the bids.  All bids came in with a “fixed bid amount”, a “variable bid amount” and a “total bid amount”.  Ken also stated that Layne Christensen would be using the well development method that VVWD staff prefers as was used at Well #31 and 33.  Bids were more than expected and the District will have to adjust the budget, but there is really no other reasonable choice based on the emergency circumstances.

Aaron explained why the bidders submitted a fixed and variable amount because of the unknowns and hopefully some parts, motor, pump, etc. may be reusable.  The motor and pump were estimated and that is where the variable costs come from.  The budget was discussed and Aaron further explained that without doing the CO2 injections the District would have $73,000 from the budget there and the $195,000 budgeted for pump and well maintenance without having to alter the budget.  Within the bid specs and because of the time sensitivity, contractor has 10 days to start the project and it should be completed no later than April 30th.

The Board further discussed when Well #32 was drilled and the sequence of events since that time.  Kenyon questioned the budget stating that $278,000 budgeted was still short of the bid amounts and asked where the extra money would come from.  Wes was not present at the meeting, but Ken informed the Board that any extra amount would have to come from the general fund and/or the District’s reserve funds.  The Board further questioned if Well #33 goes down after Well #32 is back on-line, would Well #32 supply enough water.  Aaron stated that would depend on what Well #32 would pump.  At 600gpm, Well #32 would sustain for winter, but would actually need 1000gpm to feel comfortable in the summer.  There was further discussion regarding trying to rehabilitate both wells at the same time or one right after the other.  The Board also discussed the bids and not being able to use Boart Longyear because they did not complete the bid paperwork correctly and possible litigation that could ensue if they were given the bid.
Bo stated that the Board may want to look at a couple motions and that the first motion may include wording that states this situation fits the criteria for an emergency; and then Bo read the definition for an emergency from NRS 338.

Rich Bowler made a motion that this does fit the criteria for an emergency under NRS 338 and that the District should move ahead accordingly.  Sandra Ramaker seconded this motion and it was unanimously carried.  5-0

Kenyon Leavitt made a motion to accept the bid from Layne Christensen for the fixed bid amount of $242,811.00, with a variable bid amount of an additional $285,283.00,for a total bid amount of $528,094.00 for the rehabilitation of Well #32 as an emergency item.  Sandra Ramaker seconded the motion and it was unanimously carried.  5-0

Kenyon Leavitt gave direction to staff to look at the rehabilitation of Well #33 now in contemplation of bringing the information back to the Board for review and possible action.

5. For Discussion & for Possible Action – Under the guidance of Accountant, Wes Smith, consideration to set March dates and times for two budget workshops for the Board and staff.

Wes Smith had contacted Board members to discuss possible dates and had included a memo stating that the first workshop would take most of the day and that the second workshop should only last a few hours.  Dates and times were discussed.

Sandra Ramaker made a motion to schedule the budget workshops for March 19th from 9:00 a.m. until three plus or no later than 5:00 p.m.; and March 30th starting at 10:00 a.m. until done.  Ted Miller seconded the motion and it was unanimously carried.  5-0

6. Hydrologist’s Report

Aaron had not included a written report, but informed the board that he had been working on Wells #32 and #33 and on the final draft of the HMMP.

7.  General Manager’s Report

Ken had included a written report with significant events since the last Board meeting.  Ken also stated that he has been busy working on the well issues and that he had submitted the basin study proposal to the BOR on February 9th.  Ken further stated that it could be weeks or months until the BOR got back to the District.  Ken has also been working on budget issues and informed the Board that Forsgren Associates, Inc. had turned in the final report of the Secondary Feasibility Study.
Aaron also mentioned that he had received the drawings from Bowen & Collins for the maintenance of Well #2.

8. Public Comment

There was no public comment at this time.

9. Adjournment

President Karl Gustaveson adjourned the meeting at 5:57 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: 2012-02-21 (.pdf 29.K)

VIRGIN VALLEY WATER DISTRICT SPECIAL BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
FEBRUARY 24, 2012

Minutes of a Special Board Meeting of the Virgin Valley Water District Board held on February 24, 2012, at the Virgin Valley Water District Office at 3:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker, and Board Member Rich Bowler.  Board Member Kenyon Leavitt participated by telephone until approximately 3:25 when he was called out on a fire run for work.  Also present were District General Manager, Ken Rock, District Legal Counsel Bo Bingham, Administrative Assistant Mary Johnson taking minutes and other interested parties of agenda items.   

• President Karl Gustaveson called the meeting to order at 3:01 p.m.
• Rich Bowler offered a Prayer
• Sandra Ramaker led the pledge.
• Public Comment – David Ballweg questioned what would be done with HOA’s that had experienced damage on their private streets.

AGENDA:

1. Discussion & Action - Approve Agenda

Rich Bowler made a motion to approve the agenda as posted.  Sandra Ramaker seconded this motion and it was unanimously carried.  5-0

• Board Comments - None
• President of Board Comments – None
• Public Comment – David Ballweg continued to question what was decided at the meeting between the HOA’s, Ken Rock and District counsel.  Mr. Ballweg stated that he was informed that the homeowners were not invited to this meeting by an HOA board member.  There was discussion as to this meeting with the HOAs, attendees, and being open to the public. 
Tiara Gehl from Colonial HOA stated that the meeting was opened to the homeowners, but that maybe a board member had misinterpreted something and misspoke if they told homeowners they were not allowed to attend.  Mr. Ballweg was questioning if any part of this settlement had been earmarked for repairs in the HOAs or if it was still going to be the responsibility of the HOAs to repair all the private roads within the HOAs.

Mr. Dick Wilson from Copper Bluff’s HOA stated that he had attended this meeting and it was open to the public.  Mr. Wilson further commented that he has been pleased with the quality of the repairs within this subdivision.

Larry Todd with Calais HOA stated that he was trying to gather information on whether to sign off on the settlement; and what would the implications be if the HOA does not sign off on the settlement.

Bo stated that Mr. Todd’s question was a very good one, but the Board is not able to deliberate on that particular issue at this time.  Bo further stated that there will probably be a meeting in the very near future to address these issues with the HOAs. Bo stated that there were two separate potential settlements or resolutions being discussed.  There is the potential settlement of the District’s lawsuit against Vanguard and its sister companies, in which the District is the only plaintiff and which the Board will formally consider today.  This case with the pipe company can be settled independently of whether the HOAs and the District proceed with a resolution of related issues.  The second potential resolution is one between the Water District and the HOAs.  The purpose of the meeting that took place recently involving the District and the HOAs was to see how the HOAs were generally handling the breaks, what the repairs were like and to provide the HOAs with information about the lawsuit. 

2. Discussion & Possible Action – Consideration of a proposed settlement agreement with VG Pipe, LLC, Viega, LLC and Viega NA, LLC to fully settle the litigation brought by the Water District against such parties in the case currently pending in the United States District Court, District of Nevada (Case No. 2:09-cv-0309 LRH-PAL).  The litigation is based on claims by the Water District that the defendant manufacturers’ pipes were defective.   The Board of Directors will discuss the proposed settlement and may choose to accept, modify, or reject the settlement terms and agreement.

Bo began by giving background information stating that a lawsuit was filed in 2009 for pipe failures that had occurred in Mesquite.  The pipe that allegedly failed was Bruiser Pipe manufactured by a company named Vanguard and litigation has been going on for three years.  A settlement agreement has been negotiated between the pipe manufacturer and counsel for the Water District.  The proposed settlement agreement has been included in the Board packets and on the District’s website in accordance with Nevada law.  Bo indicated that he would try to answer any questions.  Nevertheless, because of the legal sensitivity of this case, if the case is settled, the parties have discussed a formal “joint statement” relative to the lawsuit (Exhibit A of the proposed settlement agreement), which Bo proceeded to read:

“In 2009, the Virgin Valley Water District filed suit against Viega and other defendants to recover costs associated with repairs to underground water supply lines.  The District alleged that lines were breaking because of problems with the lines.  Viega denied that there were any defects in the pipe and claimed that there were other causes of the breaks.  The litigation between the parties proceeded for almost three years at significant cost to both parties.
With an upcoming trial date, rather than incurring substantial additional fees and costs associated with taking this case to trial and the uncertainties in outcome, the parties recently agreed to settle this matter.
Pursuant to the settlement, there is no admission of liability by either party.  The settlement is a compromise settlement.  Each party will bear its own attorney’s fees and costs.”

Rich asked for background information regarding the legal fees and legal representation.  Bo stated that the case was initially brought by a law firm out of Las Vegas and the District was paying this firm on an hourly basis.  Bingham & Snow was not representing the District at that time.  When Bingham & Snow was retained by the District, Bo felt that this was a good case for a contingency so that the District would not have to continue to pay out significant sums of money for the case.  He stated that the District had spent approximately $1,000,000 up to that point in litigation expenses.  The District then retained a very well-known law firm out of Southern California.  As part of the negotiation of the fee structure, it was agreed that the first million dollars of the settlement would go directly to the District with no contingency fee in order to reimburse the District for the litigation expenses that had already been incurred up to that point in the case.  After the first million went to the District, the money from the lawsuit would then be split with the attorneys on a standard contingency fee of about 33%.

Karl gave direction to staff to bring back at the next meeting or so, a determination of how the money will be spent if the case is settled.

Ted stated that Viega had initially stated that they wanted the District to guarantee that no further lawsuits would come against them and the District said “absolutely not,” and Ted asked if this was explained on page 5.  Bo stated that one of the things that the pipe company had initially sought, which the District was not willing to give on, was full indemnification of the pipe company by the District against any and all other future lawsuits.  This has been removed from the agreement.  Bo also wanted to point out that should the District approve the settlement and then resolve issues with the HOAs, it will resolve all issues with respect to those pipes that the District replaces.  However, none of the settlement money would be spent to repair any pipes located after the homeowner’s meter.  This settlement governs the pipes within the streets as long as they are in compliance with the District’s policies and procedures; but it does not include any funds to be spent on any homeowners’ pipe failures past the meter.

Ted Miller made a motion to approve the proposed settlement agreement with VG Pipe, LLC, Viega, LLC and Viega NA, LLC to fully settle the litigation brought by the Water District against such parties in the case currently pending in the United States District Court, District of Nevada (Case No. 2:09-cv-0309 LHR-PAL).  Sandra Ramaker seconded the motion and it was unanimously carried.  4-0

3. Public Comment – There was no public comment at this time.

4. Adjournment

President Karl Gustaveson adjourned the meeting at 3:46 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.

• Special Board Meeting Minutes: 2012-02-24 (.pdf 30.K)

VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
MARCH 6, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on March 6, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker via telephone and Board Members Kenyon Leavitt and Richard Bowler.  Also present was District General Manager Ken Rock arriving at 5:08, 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.
• Kenyon Leavitt offered a Prayer
• Ted Miller led the pledge.
• Public Comment – David Ballweg requested to be recognized under item #6.
• Board Comments - None
• President of Board Comments - None

CONSENT AGENDA:

Rich Bowler made a motion to approve the agenda and consent agenda as listed below.  Kenyon Leavitt seconded this motion and it was unanimously carried.  5-0

1. For Possible Action - Approve Agenda

2. For Possible Action – Approve  Minutes from 2/21/24 Regular Board Meeting

3. For Possible Action – Approve Minutes from 2/24/12 Special Meeting

4. For Possible Action – Approve Bills Paid since last public meeting- $296,830.89

** End of Consent Agenda**

5. For Discussion & for Possible Action – The Board will review the past performance of Robcyn, LLC, a company that provides consulting services to the District related to the District’s interactions with state and federal agencies such as the BLM and consider the District’s continuing contractual engagement with Robcyn.

Mike Ford and Merv Boyd were present representing Robcyn, LLC.  Ken included a memorandum stating that Robcyn, LLC has proven most helpful to the District and that Ken has identified a few more issues involving federal lands and agencies that Robcyn are valuable partners for.  Ken informed the Board that the District has 2100afy of rights to Nickel Creek water, but no right-of-way (ROW) and that in the course of the District’s anticipated basin-wide integrated water resources plan, there may be cooperative agreements, work with federal agencies and other projects that Robcyn could also provide value for.

Kenyon Leavitt had requested that Robcyn return after six months for a review to see the progress being made and to warrant continued payment of the $5,000 monthly retainer. 

Mike Ford gave a quick overview of the services Robcyn has provided to the District from the beginning of the contract between the District and Robcyn, LLC.  Mike stated that Robcyn remains fully engaged with the District.  Robcyn provides monthly reports of their activities that they are engaged in, including working with staff, representation of the District with Federal agencies and coordination with other entities with similar issues in common.  Robcyn has worked with staff to coordinate records with the BLM.  Robcyn continues to provide direct and indirect help and assistance to the VVWD on all issues associated with the HCRP and HMMP; coordination with the BOR regarding the Basin Study Program application; assists the VVWD regarding development of an appropriate land records system process to track all current and future land use authorizations involving BLM; works with outside counsel regarding status of Well #30 litigation for reporting to the BLM; provide ongoing coordination with the SNWA relative to issues of mutual interest between VVWD and SNWA; maintain regular contact with federal agencies on behalf of the VVWD via attendance at meetings and teleconference in support of maintaining and advancing relationships; and to provide technical help and assistance on a wide range of other issues involving all federal, state, and local agencies, especially as they relate to public land and environmental matters.

Mike stated that after the VVWD had met with federal agencies regarding the HCRP and HMMP, that F&W representative Ted Cocke, has sat down with Robcyn and has taken an entirely different approach and look at these plans.  Robcyn has also met with Clark County and have stated that it is entirely unfair to subject Mesquite and VVWD to a fee that is twice to what the folks in Las Vegas are paying.  Mike further stated that they are looking to bifurcate between what Clark County does and what happens out in this area of Mesquite, Bunkerville and Overton. With having this area on a separate plan and only one fee, this area will not be paying twice what everyone else is paying.  There is also a possibility of a transfer of some funds to the Mesquite area.

Mike answered questions from the Board regarding the HMMP and HCRP plans.  David Ballweg questioned the separation of the plans.  Kenyon questioned the end of contract date and Mike stated that the VVWD is on a month to month retainer and whenever the Board felt that Robcyn services were no longer required, that is when the contract would end.  Rich questioned if piece work or a lower retainer was possible, and Mike informed the Board and public that that was not possible.  Mike stated that Robcyn is always on a retainer basis and they do not charge hourly or charge administrative charges (long distance, postage, etc.).  Mike also stated that $5,000 a month is the lowest retainer fee that Robcyn charges.

A very lengthy discussion ensued regarding Robcyn’s monthly reports; being included in the packets for public inspection; other consultants and their correspondence to the VVWD; and Bo explained the VVWD public records request and how to obtain public information.

Kenyon Leavitt made a motion to continue contract with Robcyn, LLC.  Rich Bowler seconded this motion and it was carried by a vote of 4-1 with Ted Miller opposed.

6. For Discussion & for Possible Action – Board member Ted Miller is the District’s representative on the City’s Economic Development Committee.  As it now appears, this committee will continue.  The Board may choose to nominate Mr. Miller to continue in this capacity or nominate an alternate representative.

Sandra began by stating that this item was discussed at the first meeting of the year when assignments are made and that Mr. Miller thought this committee was going to end; but as it turns out, this is a continuing committee and will report to the new Steering Committee.  Sandra further stated that there are several issues that come up at these meetings and there has been no reports given to the VVWD board of the committees’ activities or discussions.  Sandra’s thoughts are that she would like to see the general manager be the District’s representative on this committee.

Karl stated that he has received the same information and that this committee will continue, but not sure for how long.  Karl also stated that he spoke with Aaron Baker with the City of Mesquite and the City and he would also like to see a District staff member on this committee.

The Board questioned and discussed what other entities had staff representation and whether Ken actually had the time.

Ted stated that he has been on this committee since it started about ten years ago and the idea is to have different business people representing everyone as a group and it’s to promote outside business.  The committee does not make decisions for the City; the committee does not report back to the City; and the committee does not deal with fees.
Discussion continued regarding the committee application and organizations nominating their representation.

Ted further explained the purpose of the committee and if a new business wanted to come to Mesquite, they could attend these committee meetings and there would be a representative of every facet of every industry in Mesquite and this new business person could discuss his new business with everyone on the committee and decide whether he wanted to start his business in Mesquite.  Ted further stated that only one person has come before the Economic Committee in ten years.

David Ballweg stated that he has been appointed to the new Economic Steering Committee and has attended the Economic Development Committee and that these are two separate committees.  David further stated that there is a lot of changes happening within the City and how and where to take the City with economic development.  David stated that Ted has been a part of this committee from its inception and he feels that it would not be prudent to pull a 10 year member off with his experience.

There continued to be discussion regarding the two committees and hopeful changes.

Rich Bowler made a motion to appoint Ted Miller as the District’s representative on the City’s Economic Development Committee.  Kenyon Leavitt seconded the motion and it
was unanimously carried.  5-0

7. For Discussion & for Possible Action – If a Board member is requested to represent the District at the City’s Economic Development Committee, the Board will consider whether the standard VVWD meeting compensation will be paid to the District representative for participation in such committee meetings.

Kenyon questioned Ted if he wanted paid and Ted stated ‘no’.

Kenyon Leavitt made a motion to not pay Ted Miller for his attendance at the City’s Economic Development Committee meetings.  Rich Bowler seconded the motion.

Sandra commented that she thinks if a board member is asked to represent the VVWD at any function, that board member should be compensated, but then they should also come back and give a report on the function/meeting attended.

Bo was questioned if it was appropriate if a board member could volunteer to serve on a committee without compensation and Bo stated “absolutely”.

Karl called for a vote on the motion and it was unanimously carried.  5-0

8. For Discussion & for Possible Action – The Board may discuss and decide if it wishes to have a standing agenda item in its second meeting each month for a report by the District representative on the City’s Economic Development Committee meeting.

Ted stated that the meetings were held the first Wednesday of the month and if something pertinent was discussed, Ted could contact Mary and have her put it on the agenda for discussion.

Rich Bowler made a motion that Ted report to Mary if something needs to be put on the agenda, but otherwise it would not be a standing item on the agenda.  Kenyon Leavitt seconded the motion and it was unanimously carried.  5-0

9. For Discussion & for Possible Action – Consideration to appoint a staff member or board member as proxy to vote on behalf of District’s interest at upcoming irrigation companies’ annual meetings.

Rich stated that he would be attending both these meetings and would volunteer, but he would be representing other interests.

Kenyon Leavitt made a motion to appoint Ken Rock as proxy to vote on behalf of District’s interests at upcoming irrigation companies’ annual meetings.  Ted Miller seconded the motion and it was unanimously carried.  5-0

10. For Discussion – Wes Smith, VVWD Accountant, will present information regarding budget adjustments that may be necessary to accommodate the repairs at Well #32 and Well #33.

Wes had included a budget analysis memo with a breakdown of total anticipated costs of the rehab of Wells #32 and #33, budget line items with anticipated extra funds available this fiscal year, and the budget shortfall if both wells were rehabbed this fiscal year.  Wes also explained budget augmentation and that the funds to cover would come out of the District’s cash reserves.

Ken stated that the District’s intention is to go out to bid for Well #33 and see what the price will come in at May 1st or July 1st.

Aaron reported on the progress of the rehabilitation of Well #32 stating that the Layne Christensen crew pulled the pump assembly last Friday.  Aaron further explained the submersible pump and that the electric cable going down the shaft should be enclosed in an outer sheath, but that there is no sheath below water level and you can smell a burn smell.  Aaron further stated that there are two tandem 500 HP motors and that the first motor is bad and the second motor seems to still be good.  The motors have been sent to the manufacturer for rehabilitation and/or a trade-in value.  We will not know what size motor will be useable until after the well has been rehabbed and test pumped.

There was further discussion regarding a standing motor in lieu of a submersible motor; the time frame of when Well #32 will be completed; the time to go out for bids for the rehabilitation of Well #33; the budget and augmenting; and the timeframe to issue the notice to proceed for the rehab of Well #33.

There was direction to staff to go forward for bids to rehab Well #33.

11. For Presentation, Discussion & for Possible Action – In response to the Board’s request, Ken Rock will present a draft service lateral replacement plan.  The Board may discuss and then reject, modify or accept the plan and recommendations.

Ken began by stating that the District believes that there are approximately 3600 Vanguard/Viega laterals in our distribution system and that there has been approximately 600 patches, which could have included 2, 3, or 4 services accessible in one hole.  This leads us to believe that there are not as many laterals to replace as originally thought.

Ken explained how he planned on making the most of the settlement dollars by replacing any remaining Vanguard pipe within our distribution system where it has proven unreliable.  Ken’s project commitment suggests that the District may use this settlement to make a promise to the community that the District will replace all of the remaining Vanguard HDPE piping where it has been shown to be a problem in our system, as economically and quickly as practical.  Ken further stated that it will not be possible to simultaneously replace all of the remaining problem laterals, but
that the District can sequence this work to optimize periodic road restoration plans in the HOAs while getting the project done affordably.
 
Ken believes that a project manager to rate, organize and schedule this progression will be required.  Ken’s current idea is that the HOAs and their
management firms could be engaged with our future project manager to help determine the values to assign to the factors mentioned so that they have significant control over the outcome and an understanding of how the work will proceed.  Ken outlined a proposed projected schedule beginning immediately and hopefully completed by 2014.

A lengthy discussion continued regarding a project manager/staff engineer, temporary laborers, timeframe, public vs. private, the Vanguard piping that has shown no problem within HOAs and continuing this conversation at the budget workshop scheduled for later this month.

Bo asked to make a quick clarification stating that the HOAs and the other subdivisions, on their final maps, have done a dedication of the water lines including the laterals located under the streets.  Those water lines become part of the Water District’s system; however, one of the issues that was going to be litigated in the case with Vanguard, if it had made it to trial, was whether or not the District truly had responsibility for those lines simply because they had been dedicated for public utility purposes.  This has been what counsel and staff has been indicating to the HOAs and the subdivisions and Bo wanted to make sure that this came across clearly.  Bo also stated that he agreed with Ken and the intention is to move forward with the HOAs and to continue to work with them and come up with a reasonable resolution.

The item died for a lack of a motion.

12. Hydrologist’s Report

Aaron had included a written report informing the Board that he completed the Draft Annual Activity Plan for the HMMP with assistance from the hydrologic workgroup. 

The tank cleanings and repairs have been completed on the District’s Flat Top Mesa and Airport tanks.  The Flat Top Mesa tank was in great condition overall, with only a few locations within the interior that showed degradation, and the leak was repaired.  The Airport tank was in overall good condition, with far more areas within the interior that showed degradation.  Sand blasting and recoating the interior may have to be looked at in the future for the Airport tank.

Aaron also stated that he had participated in a webinar with the EPA regarding the annual Consumer Confidence Reports (CCR).  Some issues discussed were improving clarity and understanding of the CCR; the possibility of using standard reporting units for each constituent reported; and alternative ways to distribute the annual report, digitally or hard copies, or a combination of the two.

Aaron will leave right after this meeting to attend the Nevada Water Resource Association’s annual conference in Las Vegas.

13.  General Manager’s Report

Ken had included a written report with significant events since his last report.  Ken informed the board that he would be bringing revisions to the Bunkerville secondary system regulations and Backflow Prevention Policy after meeting with staff and receiving their recommendations.

There was a meeting with Zee Designs and staff regarding changes to the website.  Ken also mentioned that a new projector and screen would be installed in the Boardroom in time for the budget workshop meeting to be held on March 19th.  Ken further stated that he has been working with Kevin and Steve on the District’s bid forms so that they would be clearer for the contractors.

14. Public Comment

David Ballweg commented on releasing the information from Robcyn, LLC and not being aware of the direction they were going in regards to the VRHCRP.

Bo commented stating that there was no formal direction from the Water District to Mike Ford to pursue this direction.  It is the District’s understanding that Mike Ford understood this from the meeting that we had where the plan was discussed.  Bo further stated that the plan will absolutely come back before the Board for approval.

Barb Ellestad also commented on the change of direction with the VRHCRP and that she has invested a lot of time and effort in her stories on this issue and that District staff has not given anything to the public on what has happened in these meetings.

15. Adjournment

President Karl Gustaveson adjourned the meeting at 7:25 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: 2012-03-06 (.pdf 43.K)

VIRGIN VALLEY WATER DISTRICT BUDGET WORK SESSION
VIRGIN VALLEY WATER DISTRICT OFFICE
MARCH 19, 2012

Minutes of a Budget Work Session of the Virgin Valley Water District Board held on March 19, 2012, at the Virgin Valley Water District Office at 9:00 a.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary Treasurer Sandra Ramaker, and Board Member Kenyon Leavitt.  Board Member Rich Bowler was not present.  Also present were District General Manager, Ken Rock, District Accountant Wes Smith, District Hydrologist Aaron Bunker, Administrative Assistant Mary Johnson taking minutes, staff Steve Tietjen, Rob Faught and Pete Peterson and other interested parties of agenda items.   

• President Karl Gustaveson called the meeting to order at 9:08 a.m.
• Kenyon Leavitt offered a Prayer
• Sandra Ramaker led the pledge.
• Public Comment – There was no public comment at this time.
• Board Comments - None
• President of Board Comments – None

1. Discussion & Possible Action – Consideration of issues and information related to the District’s proposed budget for its next fiscal year ending June 30, 2013.  Issues to be considered may include, but are not limited to, projects anticipated to be undertaken, continued or completed during the District’s next fiscal year; anticipated revenue required for the District’s next fiscal year, and the sources for such revenue; and the anticipated costs and expenses of the District during its next fiscal year.

Ken began by reviewing his new memo that he distributed entitled “Budget Work Session Preliminaries II”.  Ken explained some projects in general and some changes that the District has experienced after the major revenue, debt and budget adjustments of 2010 and 2011 including lawsuits settled; defeasement of the 2008 Bond; and the capital improvement projects that were axed.  Ken’s memo went into further detail on items that may be included in this budget and explained his thoughts on maintenance and upgrades, a basin study, purchasing land, a Geographic Information System (GIS), Bunkerville secondary system overhaul, deconstruction of Well #30 and reconstruction of Well #1.  Ken further stated that these items mentioned were not currently in the proposed budget, but that he thought discussion of prioritizing and discussion of these issues would be prudent; and if the board so desired, some of these items may be injected into this current budget.

A discussion ensued regarding the above mentioned items and Kenyon questioned the money in the District’s reserves and what was required to be set aside for bonding requirements.  Kenyon further stated that the District may have $6 million in reserves, but whatever amount is required for bond requirements, must not be presented as an amount that the District may use for capital improvements, etc.  Wes was directed to contact Marty Johnson with JNA Consulting Group, LLC to determine the amount the District must keep in reserves for bond requirements.

Karl questioned the GIS program and asked if Bowen & Collins was not hired to do the District’s Master Plan and should have quite a bit of information required.  Karl also mentioned that SNWA has stated that they would be able to assist the District.  Ken stated that he had
spoken with Mike Chandler with Bowen & Collins and they would be willing to start a GIS program for the District and train staff to maintain the program.

After beginning to review, only changes being made to the budget as presented are mentioned in the minutes.

A discussion ensued on the Vanguard pipe settlement and the repairs of laterals.

Under ‘Salaries’ two part time employees at $15/hr. for no more than 1000 hours each was kept in the budget, but the Project Manager/GIS (PM/GIS) hire for $45,000 was removed.  Per Wes, a total of $78,000, including benefits and taxes will be removed from the budget by removing the Project Manager/GIS person.

Repairs & Maintenance was discussed while the supervisors were present and ‘6120-00 – Well Maintenance’ was increased $120,000 for the rehabilitation of Well #2 and $100,000 for miscellaneous well maintenance for a total of $342,000 in this category.

‘Telemetry 6200-00’ was increased $600 for radio license renewal.

‘Reservoir Maintenance 6350-00’ was increased $2,400 for power charges.

‘Transmission Structures 1520-00’ was increased $175,000 to add the Bunkerville transmission line from Riverside Road to Well #2.

‘Telemetry 1530-00’ was discussed and the budgeted amount of $16,800 will be transferred to ‘Telemetry 6200-00’ in its entirety since this amount is for maintenance and not actually ‘Capital Outlay’.

A break was taken at 11:38 and the meeting resumed at 12:07.

Under ‘PERS 5522-00’ with the removal of the PM/GIS employee $10,688 will be deducted leaving a total of $229,988.

‘Office & Administration’ was discussed with only a change occurring with vendor Zee Designs being lower and account 5245-00 being added for ‘Conservation’.

‘Contracted Services’ was discussed at length; particularly ‘Engineering 5320-00’ and the Basin Study and its anticipated participants.  It was decided to flag this account and wait until the next budget meeting after the District has heard from the Bureau of Reclamation (BOR).

While discussing ‘Other Professional Services 5340-00’, it was determined that the Board would require more information from the USGS, BOR and the Furman Group before the next budget meeting to determine what would be budgeted in this account.

‘5523-00 FICA Employers share’ would decrease due to not hiring a PM/GIS employee.

Wes explained that ‘Depreciation Expense 5235-00’ is based on capital improvements and would change as the budget changed.

Under “Capital Outlay” ‘Land 1500-00’ it was discussed that this should be increased by $350,000 for the land next door to the District facilities, but it was decided that this account would be unchanged until after Wes checked with Marty Johnson and what the bond requirements were.

$5,000 was removed from ‘1505-00 Building and Improvements’.

The Operating and Non-Operating Revenues were discussed.  Wes then stated with the adjustments made during this meeting that he was showing $486,000 more in expenses than revenue, but this did not include money from the Vanguard settlement that might be contributed to cover operating expenses; in particular, the replacement of Vanguard laterals.

2. Public Comment – There was no public comment at this time.

3. Adjournment

President Karl Gustaveson adjourned the meeting at 2:38 p.m.
 

NOTE): The minutes of this meeting have been recorded and will remain on file in the District office for a five-year period for public examination.

• Board Meeting Minutes: 2012-03-19 (.pdf 25.K)

VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
MARCH 20, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on March 20, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker and Board Members Kenyon Leavitt and Richard Bowler.  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.
• Kenyon Leavitt offered a Prayer
• Ted Miller led the pledge.
• Public Comment – There was no public comment at this time.
• Board Comments – Ted Miller stated he had a question for the General Manager regarding Robcyn’s statement at the last meeting and if Ken was aware of the 180º turnaround concerning the Endangered Species Act.  Ken answered that things have not really changed for the District in the Virgin River Habitat Conservation and Recovery Program (VRHCRP) and the District will still pay $166 per equivalent residential unit (ERU).  Ken further stated that he believes Mike Ford was speaking about a consolidation of fees for the City for the Clark County Multi-Species Conservation Program (CCMSCP) and the VRHCRP and that there is some talk with the City people and others involved of consolidating those; but that has no bearing on the District because the District does not pay into the CCMSCP.
Rich Bowler apologized for not being able to attend the budget workshop due to weather conditions.  Rich also stated that after the board meeting where Robcyn spoke, and the Board extended their contract, he spoke with Ken about Robcyn’s role in procuring easements/ROWs within the District’s system.  Rich then stated that Ken had forwarded an email to Robcyn and cc’d Rich requesting that they begin to procure these ROWs.  Rich wanted the rate payers to be aware that they were moving forward and this was one of the reasons he voted to extend Robcyn’s contract.
• President of Board Comments - None

CONSENT AGENDA:

Ted Miller made a motion to approve the agenda and consent agenda as listed below.  Kenyon Leavitt seconded this motion and it was unanimously carried.  5-0

1. For Possible Action - Approve Agenda

2. For Possible Action – Approve  Minutes from 3/6/12 Regular Board Meeting

3. For Possible Action – Approve Financial Statement for January 2012

4. For Possible Action – Approve Bills Paid since last public meeting- $95,995.07

** End of Consent Agenda**

5. For Discussion & for Possible Action – Consideration to approve the District’s purchase of one share in the Mesquite Irrigation Company (MIC) for $22,000, or some other price that might be negotiated and approved at the meeting. – Requested by Craig Cowart

Ken stated that Mr. Cowart had contacted him via email with an amount to sell his share to the District and Ken informed him that he did not believe the board would consider it unless it was at or below the 2005-2007 prices.  Ken further stated that the board could approve the purchase and set a market value or decide not to buy any water.  If the Board would decide to purchase, they would be setting precedence and the monies to purchase would have to come from the District’s reserve.  Ken indicated he has spoken with Wes about reserves that should be held by the District to cover potential losses from not having Ordinance II connection fees.  They have talked about a preliminary number of $4 million for such reserves.  Ken went on to talk about the current amount of cash held by the District.
Wes commented that it would take six to eight years to receive a return of principal if the District were to purchase a share at $22,000 and lease the share at the current rates.

Sandra commented that she felt a decision had been made back in January, but it’s always open for discussion.  Sandra further stated that after the budget meeting yesterday, she doesn’t think, at this point, that the District is in any position to consider an offer at this time.

Rich agreed with Sandra regarding purchasing this share and that there are too many unknowns at this time.  Rich further stated that he would like to ask the applicant to come back at a later date once the budget has been established.  Rich also asked if the District even needed the water.

Ken stated that with the current build out of Mesquite and Bunkerville, the District would have to use all the water that the District has rights to now and 2000 or so acre-feet from Nickel Creek and may or may not have to start using river water for drinking.

There was further discussion between the board regarding the fair market value and what private investors were willing to pay for a share; the use of funds received from the recent settlement of a lawsuit; the fact that the District has not been receiving Ordinance II fees and having to pay the 2006 Bond from the General Fund and/or Reserve Fund beginning this year; and not wanting to raise rates.

Ken stated that he had spoken with Mike Chandler of Bowen & Collins and asked him for the final Master Plan.  Ken said that maybe the District should wait until after they receive the Master Plan, the budget is completed, and the new fiscal year begins before it consider purchasing any more river water or determining an acceptable price for such water.

Karl directed staff to contact Mr. Cowart and inform him that at this time the District was not in the position to purchase, but that he may bring back his offer after the beginning of the new fiscal year.

The item died for a lack of a motion.

6. For Discussion & for Possible Action – Consideration to approve the hiring of a Project Manager/GIS Professional.  Budget work is largely contingent on anticipated project load and staffing.  Consideration of these factors has led us to propose hiring a Project Manager/GIS Professional for the next fiscal year.  The proposed budget and plans for several years to come are based on hiring this person.

Karl stated that this item was taken out of the budget at yesterday’s meeting.

The item died for a lack of a motion.

7. For Discussion & for Possible Action – Consideration of procedures for new and existing board members to observe and learn more about the operations of the District and the scope of a board member’s involvement and interactions with staff in such process.  The board may consider and determine the level of approved individual board member interactions, which could include; observation, questions, or discussion.

Rich stated that he had asked for this to be put on the agenda.  Rich further stated that he has had the opportunity to meet with Aaron and Wes in the office and would also like to speak to supervisors in the field; mostly regarding Vanguard pipe and get background information on their capabilities and what they’ve done.  Rich didn’t want to speak to employees and have it get back to Ken that he was speaking with them without Ken’s knowledge and he would be giving no direction or advice.

Ken stated that he had contacted Bo and Bo stated he thought it was okay to bring before the Board for discussion and the Board member should not be giving direction or advice to staff.  There was further discussion with comments that it should not take up too much of the employees’ time and that the employees should not feel uncomfortable.  Comments were made that it is very effective to have the supervisors present for the budget work sessions and receiving their input.  Ken suggested that Board members could go up to Well #32 and observe and receive a better understanding of what is happening.

The item died for a lack of a motion.

8. Hydrologist’s Report

Aaron had included a written report and also stated that he would make the time to take Board members to Well #32 site if they so desired.  Aaron further stated that Layne-Christensen is in the process of putting the test pump down Well #32 and they may start step-testing Thursday and the well will run for 12 hours straight.  After test pumping and we know how many gallons the well will pump, we will order a pump.  It could take 9-12 weeks to receive the pump.  Aaron stated he was going to order the pump for Well #33 now so there will not be that long a wait if the pump isn’t just on the shelf.

Eric Wilbanks questioned Aaron if his prior approval from the Board to rehabilitate Well #33 included the pump, which Aaron stated it did.  Eric also commented that it was necessary to consider Open Meeting Law issues if the Board members were going to visit Well #32 and suggested that a quorum of the Board should probably not visit the well together.

9.  General Manager’s Report

Ken had included a written report and further stated that he has spent time on budget preparations; ongoing efforts with the Vanguard pipe replacements with Steve Tietjen and Kevin Amen; and setting up a meeting with the HOAs, which is scheduled for Wednesday, March 28th at the Eureka.

Ken further reported on lateral replacement and repair issues, including asphalt patching.

Ken spoke with Link Browder of the Furman Group and Link is planning to come in and speak with the Board at one of the meetings in April.

Ken also mentioned that Mike Chandler would be here on Friday to talk about Well #2 reconstruction plans and finishing up the Master Plan.

10. Public Comment

David Ballweg commented on the VRHCRP and his surprise at Mike Ford’s presentation to the VVWD Board.

11. Adjournment

President Karl Gustaveson adjourned the meeting at 5:53 p.m.
 

NOTE): The minutes of this meeting have been recorded and will remain on file in the District office for a five-year period for public examination.

• Board Meeting Minutes: 2012-03-20 (.pdf 43.K)

VIRGIN VALLEY WATER DISTRICT BUDGET WORK SESSION
VIRGIN VALLEY WATER DISTRICT OFFICE
MARCH 30, 2012

Minutes of a Budget Work Session of the Virgin Valley Water District Board held on March 30, 2012, at the Virgin Valley Water District Office at 10:00 a.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary Treasurer Sandra Ramaker, and Board Members Kenyon Leavitt and Rich Bowler.  Also present were District General Manager, Ken Rock, District Accountant Wes Smith, District Hydrologist Aaron Bunker, Administrative Assistant Mary Johnson taking minutes and other interested parties of agenda items.   

• President Karl Gustaveson called the meeting to order at 10:02 a.m.
• Rich Bowler offered a Prayer
• Kenyon Leavitt led the pledge.
• Public Comment – There was no public comment at this time.
• Board Comments - None
• President of Board Comments – None

1. Discussion & Possible Action – Consideration of issues and information related to the District’s proposed budget for its next fiscal year ending June 30, 2013.  Issues to be considered may include, but are not limited to, projects anticipated to be undertaken, continued or completed during the District’s next fiscal year; anticipated revenue required for the District’s next fiscal year, and the sources for such revenue; and the anticipated costs and expenses of the District during its next fiscal year.

Wes began and stated that he would like to first respond to Board member’s requests from the last budget workshop.  Wes stated that he had contacted Mr. Marty Johnson with JNA Consulting regarding the District’s bond reserves.  Wes reported that within the bond requirements for the 2003, 2004 and 2006 Bonds, the District is required to hold 1.4 million dollars in reserves for the payment of these bonds if the District should default on these bonds’ payments.  Wes showed where this amount was listed on the balance sheet provided under “Restricted Bond Reserve – Investments” with a total of $1,440,123.55.  Wes continued to review the balance sheet and the funds listed and how these funds can be used.  Wes also informed the Board that he had spoken with an individual associated with the SB198 Grant and was informed that the District could use the available funds in Bank of Nevada ‘Bunkerville Projects,’ totaling $387,936.75 for the rehabilitation of Well #2.

Wes briefly covered lien processing and stated that the District currently charges $65 to process a lien when in all actuality; the costs to the District are currently $95.  Wes stated that this should be addressed and put on another agenda for discussion and action.

Ken mentioned that an article in the Desert Valley Times had him misquoted and stated they would correct article to read $59,000/AF and not $59,000,000/AF.  Ken also stated that the parts have been ordered for 250 service laterals to be replaced.  Ken also informed the Board that he and Bo had met with HOAs and that they wanted assured that money would be set aside to be used to fix the Vanguard pipe within the system.  A rough estimate of $260,000 to replace Vanguard pipe has been budgeted for next fiscal year; and West has set up a system to track costs for the Vanguard pipe replacement including materials and labor.

Ken stated that he had met with the USGS yesterday and that they have some money to spend and thought that VVWD looks attractive.  Ken thought that $100,000 would be a good number to work with for a basin study.  Ken also stated that the USGS would meet with him on April 13th to discuss this further.

A lengthy discussion ensued regarding water rights, basin studies and over allocating the basin.  It was decided to hold off budgeting $100,000 for a basin study until after Ken had met with the USGS.
Wes requested to review the individual accounts with questions or changes.  Account 5320-00 Engineering was budgeted at $60,000 and has been reduced to $40,000.

Account 6375-00 Line Maintenance has gone from being budgeted at $200,000 to $100,000 for a total line item of $280,000.  Item #2 within 6375-00 “Repairs to Asphalt & Concrete shall be changed to “Large Line Break Repairs”.

Wes reviewed the Budget Summary stating with the changes made above, the District is showing a net cash (decrease) of ($374,630) from ($494,630); and that this amount does not include $260,000 for Vanguard pipe replacement that has been budgeted for the next fiscal year leaving the District ($114,630) in the hole.  Wes further explained that with contingencies built within the budget totaling $210,000, the District would only show a negative amount of about $100,000.

There was further discussion regarding rehabbing Well #2 and using the funds in the Bank of Nevada account marked for “Bunkerville Projects”.
It was also discussed that a cash flow summary page should be added so that the public knows the District is not actually in the red, and has over $6,000,000 of reserves in the General Fund.

2. Public Comment – There was no public comment at this time.

3. Adjournment

President Karl Gustaveson adjourned the meeting at 11:56 a.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.

• Budget Work Session Meeting Minutes: 2012-03-30 (.pdf 38.K)

VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
APRIL 3, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on April 3, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker and Board Members Kenyon Leavitt and Richard Bowler.  Also present were 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.    District General Manager Ken Rock was not present.

• President Karl Gustaveson called the meeting to order at 5:01 p.m.
• Kenyon Leavitt offered a Prayer
• Rich Bowler led the pledge.
• Public Comment – David Ballweg commented on the painting of the freeway tank and suggested leasing out each side for extra income for the District
• Board Comments – Sandra thanked Aaron for taking her and Rich to Well #32 and treatment plant.
Rich also thanked Aaron and stated that he learned quite a bit.  Rich also stated that he would hate to see the District’s Freeway Tank commercialized.
• President of Board Comments – Karl also thanked Aaron for taking him to visit Well #32 and Treatment Plant.

CONSENT AGENDA:

Sandra requested that item 5A be removed from the consent agenda and heard separately.

Ted Miller made a motion to approve the agenda and consent agenda, items 1 through 4 as listed below and to pull item 5A from the consent agenda for review.  Rich Bowler seconded this motion and it was unanimously carried.  5-0

1. For Possible Action - Approve Agenda – Item 5A pulled from consent agenda

2. For Possible Action – Approve  Minutes from 3-19-12 Budget Work Session Meeting

3. For Possible Action – Approve Minutes from 3-20-12 Regular Board Meeting

4. For Possible Action – Approve Bills Paid since last public meeting- $339,926.90

** End of Consent Agenda**

5. For Possible Action – Approve Purchase Orders Over $2,500
a. Iceberg - $3,200.00 – Ratify Purchase of 30# Ice Machine

Steve Tietjen, District Construction & Maintenance Supervisor, explained that the old ice machine that is 7 to 8 years old and mainly used for transporting water samples is inoperable.  Steve further stated that to repair the old ice machine would have only cost $400 less than purchasing a new one.

Rich asked for clarification in that anything over $2,500 not budgeted for must come before the Board for approval; and anything under $25,000 budgeted for does not require coming before the Board for approval.  Rich was informed by Bo that this was correct.  Sandra also questioned why the Board had not heard anything before this meeting and Steve explained that the ice machine just quit.

Rich Bowler made a motion to approve the purchase of the ice machine in the amount of $3,200 from Iceberg.  Kenyon Leavitt seconded the motion and it was unanimously carried.  5-0

6. For Discussion & Ratification – Staff went out for bids for the District’s standing asphalt patching contract.  The lowest responsive bid was from Mesquite General Contracting for $7.35/square foot.  We have awarded the contract and work has begun on the significant backlog of patches needed in Mesquite.

Kenyon commented that he didn’t have any problem with the bid process and Mesquite General Contracting getting the bid, but why has the contract already been signed before this was brought to the Board.  Kenyon further stated that all contracts must be Board approved before the general manager signs and stated that Ken needs to make sure this is done.  Steve Tietjen commented that Legacy Construction had been doing the patches for the District and then filed bankruptcy around November.  The District is doing the same thing as before with patching, but that this time a contract was signed.

Rich questioned Bo if he had reviewed the contract, and Bo stated that he had not.  Bo stated that he and Ken had emails and conversation regarding NRS 338, but agrees with the Board in that all contracts should come before the Board before approved and signed.  Rich also stated that he felt it should be policy that Bo reviews all contracts before going out to bid, even if a standard contract, because every contract is different.  There was further discussion and review of the contract; the bid request; and the amount not to exceed $100,000.

Bo explained NRS 338 and the process the District follows.  Bo also stated that the Board should ratify the contract and include verbiage that if contract is close to exceeding $100,000 it should come back before the board for reconsideration.

Karl gave direction to Bo to speak with Ken regarding the policies and procedures for bids and contracts.

Rich Bowler made a motion to ratify this contract with Mesquite General Contracting for asphalt patching for $7.35/square foot with the addition of Bo having an addendum made up that will limit the amount of the contract to under $100,000 and having that signed by the contractor.  Kenyon Leavitt seconded this motion and it was carried by a vote of 4-1 with Ted Miller opposed.

7. For Discussion & for Possible Action – Consideration to award a contract of slightly less than $10,000 to the lowest bidder, Valley Underground, for work in connecting two service laterals to the District’s main water line.  Construction of the Bunkerville multi-use path will conflict with a long 4” water line that parallels Riverside Road and services only two customers.  Staff recommends that the board approve Valley Underground’s bid to connect these two service laterals directly to the 10” water main and the District’s abandonment of the old 4” line.

Steve Tietjen explained where and why this connection is being done.  There was discussion of a matter of conflict of interest with Rich since his dad owns this property, but it was determined that there was no conflict of interest and Rich could vote on this matter. 

There was further discussion in the reasoning behind why Ken wanted $10,000 approved for this project when low bid came in at $9,870.00.  Bo commented that there is a reference within the contract on the first page; paragraph 4 that is not sufficiently clear as to what work has to be done and who is responsible for what (4. DELIVERABLES – See the construction drawings……). Bo stated that when he looks at a contract he tries to figure out if  a reasonable person can sit down and know exactly what is included and what work needs to be done.  Bo understands that Kevin Amen, District Lead Inspector, has a copy of the construction drawings that would hopefully detail exactly what this contractor is doing for $9,870, but it is not here and clear as part of this contract.

Kenyon Leavitt made a motion to award the contract to Valley Underground for $9,870 and with that, Bo reviews the contract to make sure it is how the District wants it before it is signed by the general manager and the contractor.  Sandra Ramaker seconded the motion and it was unanimously carried.  5-0

8. For Discussion & for Possible Action – Consideration of a request by the attorney for Robert Coache to approve the District’s release of a Lis Pendens that was recorded by the District against the house/real property currently titled in the name of Kovadchy, LLC (a company owned and/or managed by Coache) so that the property may be sold to a third party, Michael Patterson.  The real property is located at 3836 Canary Cedar St., North Las Vegas, Nevada (APN:  139-10-115-029).  The District recorded its Lis Pendens against this property in connection with the pending litigation in Clark County District Court, Virgin Valley Water District v. Johnson, et. al, Case no. A-11-636082.  It is proposed that all of the proceeds from the sale of this property (other than closing costs, escrow fees, and real estate commissions) be held in escrow until the conclusion of the litigation or until further Order of the Court.  The proposed purchase price for the real property is $163,000 and a current appraisal indicates a value of $157,000.

Bo introduced the item and explained, without discussion in open meeting, that the District had been contacted by Robert Coache’s attorney because they are asking that the District release Lis Pendens that was recorded against a property that was purchased with money that was paid out of that 2008 transaction involving John Lonetti, SNWA and the VVWD.  Bingham & Snow on behalf of the District recorded a Lis Pendens against various properties, including properties for one reason or another, Metro had not sought to seize as an asset.  Because the District recorded the Lis Pendens they are not able to sell the property until that Lis Pendens is removed.  A Lis Pendens is a document that states that there is ongoing litigation in regards to that property and no one want to touch the property; and a title company will not issue title insurance for that property.  Bo explained that it is not uncommon and that his firm has been involved with several cases where they have either properties or funds or other assets that are the subject of ongoing litigation and that the parties agree to hold the asset(s) in escrow.  Bo explained why real property is held in escrow; who maintains property; who pays the property taxes; who pays utilities and/or HOA expenses; and other things associated with that property.  No one knows who is going to get the property and people are reluctant to put money into the property if they don’t know if they are going to get it.  If the District should decide to release the Lis Pendens and allow the property to be sold; the property is sold at fair market value, and they have complied with this.  The appraisal value of the property in question is $157,000 and the purchase price is $163,000.  Another concern Bo mentioned was ‘who is the buyer’.  They want to make sure it is an “arms-length transaction” and to make sure that there is nothing improper going on; so they request a copy of the purchase contract.  Bo stated that they have received this and nothing seems to be improper.  Finally, Bo stated that if the sale is approved, all of the money from the sale goes into an escrow account which cannot be touched by any party until a court has determined who’s entitled to that property and at that time makes an award.  Bo explained the advantage of releasing the Lis Pendens and the possible down side, with the real estate market and the property being sold now and what if the market comes back in a year or two.

There was further discussion regarding the net proceeds, the property’s upkeep and property taxes, proposed settlement statement, and an Arms-Length Addendum.

Rich Bowler made a motion to approve the removal of the Lis Pendens on this property and that the Board direct Bo to put the safeguards he has indicated are needed in place and allow this property to be sold and the money put into an escrow account to be decided by the court on how it is distributed.  Kenyon Leavitt seconded this motion and it was unanimously carried.  5-0

9. Hydrologist’s Report

Aaron had included a written report.  Aaron also informed the Board that the step-test/pump testing is completed at Well #32.  During the step-test they stepped it from 500 to 750gpm up to 1,000gpm, but during the process at 1,000gpm, the drawdown continued to go down and it would not sustain anything above that.  It was decided to do the constant pump test the following day for 12 hours at 900gpm.  After 7 hours of testing the decline did not level off where they felt comfortable that it was going to sustain 900gpm for an extended period.  It was decided for the last five hours to step it down to 700gmp and continue and it flattened out.  The well will be able to pump 700gpm and sustain for long periods.  It will be able to pump more for a short period of time. The motor size should be around 250 to 300hp depending on the efficiency.  The prior motor was a tandem 500hp.  The power bill will be much less.  Aaron stated that it was not as high as hoped, but it will be efficient at 700gpm.

Aaron also reported that he had requested quotes from four different contractors for Well #33 pump assembly and received two quotes back.  The lowest came from the Weber Group who did the work at Well #31 for $35,461.25.  The other quote was from Layne-Christensen at $41,055.47.  Aaron stated that this was the exact same pump that was in Well #33 prior and the District purchased that pump in 2004 for $39,000.  When the District knows the time when Well #32 pump and motor will be delivered, Aaron will then send out the bid requests for Well #33.

10.  General Manager’s Report

Ken had included a written report of significant events since his last report including meetings he has attended and telephone conversations he has had with certain individuals.

11. Public Comment

David Ballweg commented on the meeting held March 28th with the HOA’s that he was unable to attend, and wondered if the District was only going to replace the damaged pipe or if the District would repair the roads from damage David is claiming happened because of the Vanguard pipe failures.  Bo stated that he hasn’t heard of this specific situation, but he has heard from the Property Management Companies and they have questioned the integrity of roads.  Bo further stated that people have asked the question, but nobody has ever brought up a specific location.

12. Adjournment

President Karl Gustaveson adjourned the meeting at 6:14 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: 2012-04-03 (.pdf 35.K)

VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
APRIL 17, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on April 17, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker and Board Members Kenyon Leavitt and Richard Bowler.  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 5:02 p.m.
• Kenyon Leavitt offered a Prayer
• Sandra Ramaker led the pledge.
• Public Comment – Joan Day of Overton, NV commented and wished to offer a hearty endorsement for a mural on the District’s water tank.  She offered pictures of other places where murals have helped bring tourism to their areas.

David Ballweg read an editorial reply that was in the Review Journal this week written by Mike Ford of Robcyn, LLC, concerning the Cliven Bundy ranch issue.  Mr. Ballweg stated that he believed this would be a conflict of interest since Mr. Ford represents the District in developing the Virgin River Habitat Conservation & Recovery Program (VRHCRP); and with the editor’s note stating that Mr. Ford was the Nevada and Southwest Director of the Conservation Fund.

• Board Comments - None
• President of Board Comments - None


CONSENT AGENDA:

Rich Bowler made a motion to approve the agenda and consent agenda as listed below.  Sandra Ramaker seconded this motion and it was unanimously carried.  5-0

1. For Possible Action - Approve Agenda

2. For Possible Action – Approve  Minutes from 3/30/12 Budget Work Session Meeting

3. For Possible Action – Approve Minutes from 4/3/12 Regular Board Meeting

4. For Possible Action – Approve Financial Statement for February 2012

5. For Possible Action – Approve Bills Paid since last public meeting- $48,047.24

** End of Consent Agenda**

6. For Discussion & for Possible Action – Link Browder from the Furman Group, VVWD’s Federal lobbyist, will be here to meet the board.  He will present a summary of past services and discuss potential future services.  The board may choose to adjust terminate, augment or continue as is the VVWD contract with the Furman Group.

Link Browder representing the Furman Group, the District’s Federal lobbyist, was present.  Link stated that the Furman Group appreciates the confidence that the District has shown in their firm; and that it has been a pleasure working with the District.  Link reviewed the past achievements that the Furman Group has had over the past 16 years representing the VVWD.  The Furman Group has helped the District obtain over 27 million dollars in federal funds for various projects.  $5,000,000 towards the water treatment expansion back in the mid 90’s; $18,000,000 for the arsenic treatment plants through the Army Corp of Engineers (ACOE) and Environmental Protection Agency (EPA); $4,000,000 for the Halfway Wash project; and that their firm was successful last year getting the District re-authorized in Section 595, the Rural Nevada Program.

Link further stated that looking forward, the Furman Group fully understands the current economic situation and that the District will probably not be going out to build any large infrastructure projects in the near future; but stated that there were some other issues.  Link stated that the Gold Butte issue has really gained some momentum back in Washington, DC.  Link thought that the District would see a designation of some type in the near future, within the next couple years.  There have been many different proposals and ideas and what it should look like.  Link stated that he hasn’t seen anything concrete recently, but if you looked at what was presented by Shelley Berkley back in 2007/2008 there is language in that that could threaten the District’s ability to develop new water supply in the Virgin Mountains, including Nickel Creek.

Link also mentioned that the Board may also want to consider is the USGS basin study to determine the amount of water the District has in Basin 222.  Link stated that he felt it was critical to have congressional delegation behind the District.  Link proposed that if the District does decide to go down this road to treat this as an appropriations request as the District has had in the past.  The District should have delegation go back to Washington and meet with congress to generate letters of support and have them to weigh in on the District’s behalf.  Link stated that this would be very effective and help in that regard.

Link stated that the third item the District should consider is that they should be aware that congress is working under an ear marked moratorium.  Congress has been unable to help with funding as they have in the past.  Link stated that he sees the tide shifting on this and sees a resolution on this issue.

A discussion ensued regarding the current contract and budgeting.  Link stated that the Furman Group would not propose any increase of $72,000 per year, plus monthly direct expenses.  Ken stated that the $72,000 that the District pays the Furman Group is 1% of the District’s budget and stated the District should weight what we are going to get for this and maybe we should make the contract performance based. 

Nickel Creek was discussed and how the Furman Group would offer a more broad protection of the District’s water rights along with Robcyn’s assistance in obtaining the Right-of- Ways (ROW) through the Bureau of Land Management (BLM).  Link again mentioned Shelley Berkley’s proposal and stated that the National Conservation Area (NCA) goes all the way down almost to the river and the District currently has wells within the proposed NCA and will probably have more wells going through there in the future.  The Furman Group would make sure that those rights and the District’s ability to access these wells is protected.

Aaron questioned Link if he was aware of any other federal mandates or water regulations that may be changing in the future requiring treatment.  Link stated that there were many proposals that could be an issue, but didn’t feel that there was anything critical for the District right now.
Gold Butte was discussed regarding the time line; what the Furman Group can do for the District; and if there is any money out there.  Link stated that the Furman Group would absolutely have a seat at the table and would be looking out for the best interests of the District.  Link further stated that he couldn’t guarantee anything right now, but that this firm works well with delegation and Senators Heller and Reid.

The board discussed the USGS and a basin study and any funding available for this study.  Link stated that there is money available through the USGS at the discretion of the interior.  Federal money spent is not earmarked, congressional money is earmarked.  Funds available through the Department of the Interior would be a 50/50 cost share.  There was further discussion regarding the basin study through the USGS.

There was further discussion regarding the economy; what the Furman Group has done recently; what would they be able to assist with in the future; BLM; Gold Butte; Robcyn; Furman Group; current contract; and budget.  Ken mentioned that maybe the Furman Group could provide quarterly reports along with their invoices for payment as Robcyn, LLC provides to the District.

Kenyon Leavitt made a motion to continue the District’s contract with the Furman Group through November with the understanding that the District want ROW issue for Nickel Creek number one on the radar along with concerns of Gold Butte NCA issues and that quarterly reports be provided along with the quarterly invoices.  Sandra Ramaker seconded this motion and it was carried by a vote of 4-1 with Ted Miller opposed.

7. For Discussion & for Possible Action – Consideration to approve the low bid of $5,750.00 from CH Spencer & Company for a new 10-inch impeller and necessary rebuild gaskets for Well #29 booster pump.

Ken stated that the District sent out the request for bids to several companies and received two back.  Ken explained that the well pressurizes the treatment plant and the District cannot pump enough out of the treatment plant as the well can push into it.  If the District upgrades the booster to the reservoir, we would get an extra 300gpm at a very low cost.  It will make it easier to run the treatment plant and the well.
 
Aaron stated that Well #29 produced more before the Decker Tank was put and it was never upgraded to compensate for the additional head.  The treatment plant was based on a lower production and if this was retrofitted with a booster it would accommodate pumping against that additional head.  Aaron further stated that this treatment plant has about 90 lbs. of head that it is working against it compared to other treatment plants with only 20 to 50 lbs. of head working against it. 

Kenyon Leavitt made a motion to approve the low bid of $5,750.00 from CH Spencer & Company for a new 10-inch impeller and necessary rebuild gaskets for Well #29 booster pump.  Rich Bowler seconded the motion and it was unanimously carried.  5-0

8. For Discussion & for Possible Action – Consideration to proceed with obtaining a bid to paint the VVWD’s water tank located near the I-15 freeway in the next fiscal year and consideration to allow a third party to develop the paint design or graphics for the tank with all or a portion of the project being paid for by such party.

Karl asked that Joan Day distribute the pictures she had mentioned in public comment for the board member’s review.  Rich Bowler questioned if the City of Mesquite or someone else was interested because he doesn’t believe that the District’s role is to promote tourism.  Rich was also concerned about the man hours spent on this project, liability, losing control and that he would not like to see this going out to a private company. 

Ken had brought this idea to the City and they were interested, but could not fund the project; nor did the City have the staff to proceed to solicit someone else to sponsor a mural or some other design to paint on the tank.

Ted stated that the District should do their job and paint the tanks and if someone else would want to come forth and put a decal or paint a mural on the tank; the board could entertain that at that time.  Kenyon stated that he agreed with Ted and Rich’s statements and that too many man hours spent on something that is not the District’s responsibility.  Sandra stated that she also felt that it is important that the District move forward with the bids for painting the tank and if someone wants else wants to bring something back to the board at a later time or when the painting is done, the board could entertain; but it definitely needs to be out there and voiced that the District is not doing any type of advertising, that this is something that would enhance Mesquite.  There was further discussion with Karl volunteering to solicit the art community for ideas.

Kenyon Leavitt made a motion to go ahead with obtaining bids to paint the tank for the District and whatever else is needed; but not to solicit bids for a mural or other designs.  Ted Miller seconded this motion and it was carried by a vote of 3-2 with Karl Gustaveson and Sandra Ramaker opposed.

9. Hydrologist’s Report

Aaron had included a written report and gave the board an update on Wells #32 & 33.  Aaron stated that he and Ken had a conference call with Layne-Christensen regarding Well #32 and received a quote for a 350HP motor, a 9 stage pump with a very efficient curve that looks very promising, and a stainless steel sheath for the electric cables for $164,730.00 with a delivery date of approximately 4 weeks.  Aaron also reported that the pump for Well #33 was in process, but he has not heard from the Weber Group yet if it is still 12-14 weeks out, or if it may not take that long.
 
Aaron met with Wolf Creek Golf Course and Mesquite Irrigation Company (MIC) representatives regarding a change application for the irrigation water.  The MIC share meeting was held yesterday, 4/16/12, and the shareholders present voted to have the change application reviewed by an outside engineering firm and then bring their findings back to the MIC shareholders to vote on.

Aaron showed mapping of the Gold Butte area showing where the District’s springs are located that the District has rights to, the ACEC area, and stated that this mapping needs updated.

10.  General Manager’s Report

Ken had included a written report and also informed the Board that he, Bo and Steve Tietjen met with the HOA’s at the Eureka.  Ken met with Dan Bright of the USGS on March 29th in Henderson and set up a meeting to occur this Friday, April 20th.  On April 3-5th, Ken attended the AWWA CA/NV convention and distributed information that he felt would be useful to the board members that he obtained from his 16 different venues attended.

Ken also reported that he had a phone interview with a Bureau of Reclamation (BOR) representative regarding the District’s basin study proposal.  Ken also reported that he and Aaron met with John Willis from the City regarding the VRHCRP to discuss anticipated revenues for the next 30 years.  Ken and Aaron met with Mike Chandler of Bowen & Collins regarding the freeway tank painting and will collect samples of the paint to determine if the tank currently has a lead base paint.  The State Engineer has made it possible for Ken to meet with David Ziegler, Nevada legislator of the Public Lands Commission, and Ken will give a presentation on May 4th.  Steven Horsford, candidate for US Congress, currently a State Senator, will be at the District offices tomorrow to talk about the District’s issues.

Bo read a statement stating that the funds from the settlement of the Vanguard case have arrived in the District’s account in the amount of 2.787 million dollars.

Ken also apologized to the board regarding issues on the last board agenda where contracts were signed before going before the board for approval.

11. Public Comment

David Ballweg commented on the meeting Ken had with John Willis regarding the VRHCRP, the growth projections and whether they had projected the monies collected at the time Ordinance II fees were paid or at the time of connection.  Bo stated that no money has been paid into the plan and there is no document in place that states when Ordinance IV fees will be collected yet.

Wade Paulson, Lincoln County Water District GM, wanted to make the Board aware that there has been traction in Washington, DC over the past two to three years to amend and change the Clean Water Act of the United States regarding the definition of “navigable waters” and that they may want to put that on the Furman Group’s list of items to watch for the District.

12. Adjournment

President Karl Gustaveson adjourned the meeting at 6:41 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: 2012-04-17(.pdf 37.K)

VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
MAY 1, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on May 1, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker and Board Members Kenyon Leavitt and Richard Bowler.  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 5:02 p.m.
• Rich Bowler offered a Prayer
• Kenyon Leavitt led the pledge.
• Public Comment – Mike Young of Sunset Greens commented on a story he read regarding the District’s water rights issues and suggested that the Board apply to the State Engineer to find a determination of fraud.  Mr. Young further stated that the Department of Water Resources has a fiduciary duty to protect the water rights for the people.
• Board Comments – Rich stated that he appreciated Mr. Young’s remarks and that the District is taking action in this matter and also remarked that the State Engineer would be present at the District’s next meeting scheduled for May 17th.

Rich also commented on the painting of the water tank issue, stating that he has been castigated for not working with the City.  Rich wanted it made clear that no one has approached the District about painting the tank.

• President of Board Comments – Karl also stated that he appreciated Mr. Young’s comments and that this is a complex issue and the District Board is doing everything it can to bring about a positive resolution.

CONSENT AGENDA:

Kenyon stated that the minutes from April 17th in the public comment section should be corrected to read “Cliven” Bundy in lieu of “Clyde” Bundy.

Rich Bowler made a motion to approve the agenda and consent agenda as listed below with the aforementioned correction to the minutes.  Kenyon Leavitt seconded this motion and it was unanimously carried.  5-0

1. For Possible Action - Approve Agenda

2. For Possible Action – Approve  Minutes from 4-17-12 Regular Board Meeting – Correction under public comment to read “Cliven” Bundy in lieu of “Clyde” Bundy.

3. For Possible Action – Approve Financial Statement for March 2012

4. For Possible Action – Approve Bills Paid since last public meeting- $148,776.34

5. For Possible Action – Approve changing regularly scheduled Board Meeting on May 15th to May 17th in order to be held in conjunction with Public Budget Hearing Scheduled per NRS 354.596

** End of Consent Agenda**

6. For Discussion & for Possible Action – Consideration to approve certain changes to the VVWD Cross Connection and Backflow Policy as suggested by VVWD staff and the general manager.

Ken stated that there were some minor changes to be made.  The first change is to acknowledge that the ABPA (American Backflow Prevention Association) as being equivalent to those of the AWWA (American Water Works Association) in regards to training, testing and certification programs.  “ABPA” has been added to the policy where appropriate.  Ken further stated that the second change is to provide a mechanism for the District to address backflow preventers that owners are not effectively certifying or repairing.  The District has staff that is capable of checking and repairing any backflow prevention devices, but does not wish to enter into this business because of other duties, and it could take business away from local plumbers.  Ken also stated that the District is not always able to turn off the water for non-compliance because of dedicated fire flow.  The District will continue to send out notices, but if owner does not check it and get it certified, the District will do it for you, but it will cost.  If the device is in need of repairs, the District will hire a plumber to fix and charge the owner, plus administrative costs over that.  All costs will be added to the monthly bill.  This way it will be an incentive for owners to get it done.

Rich questioned if the District could have an interlocal agreement or have the police issue citations for not being up to code.

Eric Wilbanks thought that there may be some possibilities of doing something like that.  Eric further stated that other smaller municipalities they represent in Utah have ordinances that make it unlawful if not in compliance and it is classified as a misdemeanor crime.

Ken stated that if they do not pay then the District can issue a mechanics lien on the property.  There was discussion regarding the backflow fee schedule and compliance.  Eric questioned if the Nevada Administrative Code (NAC 445A) was checked for changes and compliance and Ken informed him that he had not, but it would probably be prudent to do so.  There was further discussion regarding whether to table the item or just give direction to staff.

Sandra Ramaker made a motion to give direction to Ken Rock and District staff to look at the Cross Connection and Backflow Policy and to make sure it is compliance with NAC 445A and bring back in June for Board approval.  Ted Miller seconded this motion and it was unanimously carried.  5-0

7. For Discussion & for Possible Action – Consideration to approve certain changes to Ordinance 3 as suggest by VVWD staff and the general manager.

Ken stated that one change to be made is to establish fees where none exist for Locked Meter and Reconnection.  Some customers have been requesting to have their secondary water service disconnected at the start of winter and reconnected in the spring to save the $15.88 monthly service charge.  The monthly locked meter fee proposed is $5.44, same as culinary water customers, and a $25 reconnection fee if a water supply is shut off for less than 30 consecutive days.

Rich Bowler made a motion to amend Ordinance 3 to add for a locked meter fee of $5.44 per month and a reconnection fee of $25 if turned off and on within thirty (30) days effective July 1, 2012 and a notice of this adopted change be published.  Kenyon Leavitt seconded the motion and it was unanimously carried.  5-0

8. For Discussion & for Possible Action – Consideration to approve the lien service charge from $65 to $100 to reflect actual administrative costs.

Ken stated that during the budget process, this item was discussed and direction was given to bring it back to the board for approval.

Rich Bowler made a motion to raise the lien service charges to $100 effective July 1, 2012.  Sandra Ramaker seconded this motion and it was unanimously carried.  5-0

9. For Presentation & Discussion – Report from the District Accountant on recent re-investments of some reserve funds.

Wes distributed a copy of his speaking notes and stated that Ken had requested that he give an update on the investments that were moved from BNY Mellon to Wells Fargo.  Wes stated that the District had one-million dollars mature in April that was purchased in June of 2009 at a rate of 2%.  The current yield for a 3 year instrument in a US Treasury or Agency instrument is currently about ½ of 1%.  The District reinvested this $1,000,000 with various maturity dates to fill in gaps in the District’s current maturity schedule with CD’s purchased through Wells Fargo Institutional Securities (WFIS) and will yield from 1.1% to 1.85%, based on the maturity date.  The interest generated by this $1,000,000 will be $13,750 annually.  By moving from BNY Mellon to WFIS will result in $5,750 more interest income each year on just this $1,000,000 portion of the District’s investment.

There was further discussion regarding other options for investment or paying off other debt with Wes stating that the District is limited by NRS where the District can put their funds.

Sandra questioned Wes on reducing credit card clearing fees and comparing these with other agencies and Wes stated that he had checked into it.  Wes further stated that he did find another company that was cheaper, but in order to work for the District, significant programming costs upfront would be required to facilitate that change.  Wes stated that he called our current vendor and stated that he had found a company with lower rates and the current company gave the District a reduction in their rate, which would have been the savings with the other company.

10. For Discussion & for Possible Action – The General Manager has tendered an offer with a letter of intent for the property adjacent to the north of the District at 468 Riverside Road.  This letter of intent allows for 60 days to perform a due diligence search on the property.  Any purchase agreement is contingent upon Board approval.

Ken distributed a Google map of the property in question and stated that he has signed a letter of intent, but that the sellers have not yet signed.  Ken further stated that the District does not really know what the property value will be in the future.  Rich had suggested to Ken that the District get three qualified commercial property appraisers and negotiate with them and have one do the appraisal.  Per NRS, the District must have an appraisal and cannot pay more than the appraised amount.

There was further discussion on timeframe, uses for the property, and what action was required.  Wes stated that he needed to know if this amount for the property should be included in next year’s budget.

Rich Bowler made a motion directing the General Manager to proceed with the purchase of the property at 468 Riverside Road with obtaining and interviewing three commercial appraisers and to determine which is the most competent and cost effective and proceed with due diligence to that point.  Sandra Ramaker seconded the motion and it was unanimously carried.  5-0

11. For Discussion & for Possible Action – Consideration to begin recruiting to acquire one or two laborers to assist in the replacement of unreliable Vanguard laterals.  It is recommended that $5,000 be transferred from the Vanguard settlement fund to the VVWD General Fund in this fiscal year for this purpose.

Ken began by stating that staff had replaced 59 laterals in April, but with summer vacations, etc. beginning, he felt that we should hire sooner than waiting until the new budget begins.  Ken also stated that the agenda item states that $5,000 be transferred from the Vanguard fund to the District’s general fund; but this does not need to be done because the field supervisors have already been giving information to the accountant and monthly transfers will be made according to labor costs, equipment purchases and contractual pavement costs.
There was further discussion regarding the advertisement to be published, hiring one versus two at the same time, and that the position is only temporary and no future position will be available.

Kenyon Leavitt made a motion to have the General Manager post for recruitment in the paper for up to two (2) temporary employees.  Rich Bowler seconded this motion and it was unanimously carried.  5-0

12. Hydrologist’s Report

Aaron had not included a written report due to being out in the field.  Aaron stated he and Cameron Klug had used the Rzr, which worked very well, and visited the three rain gage sites.  Virgin River Peak reported 10” of rain, Square Top reported 6.7” of rain and Jack’s Pass reported 7.0” of rain.
Aaron also gave an update on Wells 32 & 33 stating that the lead time on the pump, motor and electric cable is expected by May 15th.  Aaron contacted the Weber Group and they, in turn, contacted Gould’s to see if the lead time for the pump and motor for Well #33 had shortened, but it is still 14 weeks out.  This will require that the repairs to Well #33 be budgeted in the next fiscal year.

Aaron stated that he had spoken with Mike Chandler of Bowen & Collins, along with the field supervisors and Ken, regarding the Master Plan and distribution system.  It was mentioned that the pump and motor at Well 26 was smaller than originally outfitted and after the District retrofits this well with a new pump and motor at the correct size, this well would produce an additional 400 gpm.

Aaron also reviewed the three pressure zones that Wells 32 & 33 supply and the ability to meet peak demand. 

Aaron also stated that he had brought water samples back from Nickel Creek, Mica Notch, Dud Springs and Seep Springs.

13.  General Manager’s Report

Ken had included a written report and also informed the Board that the two laterals to be replaced in Bunkerville have been completed.  Ken also mentioned commendations to Wes and staff with the tracking of the lateral replacements that is going very well.

Ken also mentioned that he had purchased the new furniture/tables for the boardroom that can be rearranged, and also a new refrigerator.
Ken further stated that he has been working with Bob Bunker and others on the Bunkerville Diversion and figuring ways to obtain grant funding and make this project happen.

14. Public Comment

There was no public comment at this time.

15. Adjournment

President Karl Gustaveson adjourned the meeting at 6:18 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: 2012-05-01 (.pdf 36.K)

VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
JANUARY 17, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on January 17, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker and Board Member Kenyon Leavitt.  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 5:01 p.m.
• Kenyon Leavitt offered a Prayer
• Ted Miller led the pledge.
• Public Comment – Ken stated that someone wanted to comment on item #7 but they were not present at this time.  There was no public comment at this time.
• Oath of Office to appointed Board member Richard Bowler from the Bunkerville Town Board – Karl stated that the Clark County Commissioners were still meeting and had not reached this item on their agenda; and the Board is waiting for a final approval from the Commissioners before Richard can be sworn in as a director.
• Board Comments - None
• President of Board Comments - None

CONSENT AGENDA:

Ken commented that if we received information from the Clark County Commissioner’s meeting that Richard Bowler had been approved as the Bunkerville Town Board appointee; we could stop the meeting at that point and have him sworn in enabling him to act on agenda items that have not been heard.

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

1. For Possible Action - Approve Agenda

2. For Possible Action – Approve  Minutes from 1/3/12 Regular Board Meeting

3. For Possible Action – Approve Financial Statement for November 2011

4. For Possible Action – Approve Bills Paid since last public meeting- $79,416.83

** End of Consent Agenda**

At this time, Ann Miranda, Executive Director of the Chamber of Commerce, gave public comment in regards to item #7; the painting of the Freeway Tank.  Ms. Miranda stated that with the electric signage pending with the City Council, that the painting of the Freeway Tank with the City logo made good sense and further stated that on behalf of the Chamber of Commerce, they would support these efforts.

5. For Discussion & for Possible Action – Consideration to approve the District’s purchase of 1 or up to 3¼ shares in the Mesquite Irrigation Company (MIC) for $70,000 per share, or some other price that might be negotiated and approved at the meeting.  Requested by Kenneth R. Cowart

Mr. Cowart had provided a letter with his request to sell one and possibly up to 3¼ MIC shares for $70,000 per share, but also stated that he was willing to negotiate a price with terms and conditions equitable to both parties.

Ken provided an informational memo and stated that there were a lot of unknowns at this time in regards to river water.  River water is purchased through Ordinance II funds and with the growth trend at a standstill, these funds will be depleted within a year with this fund making the payments towards the 2006 Bond.  There was discussion regarding the need for more secondary water; the fair market value of an irrigation share; Ordinance II funds; District’s budget; and the leasing amount the District currently receives per share versus the purchase price of a share.

Sandra Ramaker made a motion to this seller and others that the District cannot afford to purchase irrigation water shares at this time.  Ted Miller seconded this motion and it was unanimously carried. 4-0

6. For Discussion & for Possible Action – Consideration to approve staff’s proposed action to request bids to pull the pump and rehabilitate the District’s Well #33.  Bids will come back to the Board for final approval.

Aaron Bunker reiterated that the District’s Well #33 has been making noises and unwanted vibrations and that staff is afraid that in the summer during peak demand, this well will fail.  This well has pumped over 5 billion gallons of water and Aaron further stated this is similar to what the District had done to Well #31 last year during February when that well failed.  Well #31 pumped over 6 billion gallons of water and the District had it pulled, rehabilitated and a new pump was installed for just over $61,000. 

Aaron also stated that the original budgeted plans were to rehabilitate Well #32, but this well cannot pump enough water for peak demand.  Staff is thinking that the District should rehabilitate Well #33 this year and budget for Well #32 the next budget year.

Kenyon questioned the budget figures and the costs for rehabilitating both wells to save on mobilization costs and that the District could save money.  Aaron stated that this could be looked at, but one of the wells would have to be running for water supply.  There continued to be a discussion on the possible benefits of maintenance of both wells in this fiscal year and the budgeted amounts.

Kenyon Leavitt made a motion directing staff to request bids to pull the pump and rehabilitate the District’s Well #33 with the option of also rehabilitating Well #32 at the same time if within budgeted amounts.  Ted Miller seconded the motion and it was unanimously carried.  4-0

Bo informed the Board and public that he had a message from a Victoria who is an assistant for the Northeast part of Clark County and she had indicated that having Richard Bowler approved as the Bunkerville Town Board’s appointment to the VVWD Board was a “done deal” and that this was going to be approved at the Commissioner’s meeting today.  Apparently when this item came up in the meeting it was so quickly passed over, it was unclear whether they said approved, deferred or something else; but it’s thought that possibly this was such a routine item that it may have been moved up to the consent agenda and just done and approved without discussion.  Bo further stated that the District’s enabling legislature requires that the appointment be approved.  It seems that it may have occurred, but there is not 100% confirmation of that.

The Board discussed this matter with Karl stating that the swearing in did not have to occur in a public meeting and that as soon as Richard’s appointment to the Board has been confirmed, Richard can be sworn in and able to act as a VVWD Board official.

7. For Discussion & for Possible Action – The District’s one-million gallon “Freeway Tank” is in need of external attractive logo in exchange for maintaining the exterior coating in good condition.

Karl stated that he thought the Board should give direction to staff to contact or maybe have reporters inform the public that the “Freeway Tank” could be used for signage and that he doubts if the City has any money to put towards this.  Kenyon stated that the District needed to be careful of who would be allowed to advertise on the tank and not be discriminating against others and the first amendment.  Bo stated that he had contacted the City Attorney and a variance would be required and the City Council would have to approve.  Bo further stated that he did not see this as a revenue source, but something to benefit the community and doesn’t believe the same legal implications would apply in this case regarding the first amendment.

Ken had included information from years passed and requests to have logos, signs, etc. painted on the District’s tanks.  He also stated that the Vista Del Monte subdivision has their logo on the “Airport Tank” located within that subdivision.  There was further discussion regarding the District painting the tank and then the City adding their logo; possible legal implications; HOA’s; whom to approach; and the first amendment.

Kenyon Leavitt directed staff to communicate with the City and see if they were interested.

8. For Board Information & Discussion – A report by District staff on the tank cleaning and repair work for the District’s “Flat Top Mesa Tank” and the “Airport Tank.”

Ken stated that he was informed that there is a seeping leak at the Flat Top Mesa Tank and it hasn’t gone away.  This tank and the Airport Tank are due for cleaning and it was budgeted for, but Ken thought it would be nice to let the Board know what was being done.  Aaron went out for bids and received three.  The lowest bid was from MM Potable Services for $5,750 to clean both tanks and a quoted price of $359 per hour for the repair process.  The second lowest bid was from LDC Corp. at $5,985 for cleaning and $375/hr. for repairs.  The third bid was way off at $19,106.  There was discussion regarding the three firms and if the District had done business with any of the firms previously, where they were coming from, references, insurances and contract wording.  Bo stated that he recommended that the contract include wording that the amount could not exceed a certain amount of hours for repairs without prior approval from the Board.

9. Hydrologist’s Report

Aaron had included a written report and also stated that the two previous items have already been discussed.  Aaron further stated that February 17th was the deadline to put the draft and budget in for the HMMP.

10.  General Manager’s Report

Ken had included a written report and stated that it was short with him having taken vacation and the holidays.  Ken further stated that most of his energy has been working towards the public meeting scheduled for January 24th on the basin coalition and that this meeting would be posted.  Ken further stated that he and Aaron will be attending a meeting with the Bureau of Reclamation (BOR) on Friday regarding the SMART Grant and that they would meet with reps from the Washington County, Utah Water Conservation District on Thursday regarding the basin and coalition.  Ken also received a telephone call from a lawyer in Reno who put together a similar basin agreement in 1992 that he is going to share with Ken and that he would also be at the January 24th meeting.  Ken stated that he and Ryan Wheeler with Forsgren would present the concept of an Integrated Water Resource Basin Plan at the next City Council meeting so the City will understand the importance of this coalition and get their buy-in on it.  Ken also included an e-mail from Barry Stubbs stating that Aaron Bunker and John Willis deserved “atta boys” for their efforts and cooperation on the HMMP work group meetings and data gathering towards updating the Plan.

11. Public Comment

There was no public comment at this time.

12. Adjournment

President Karl Gustaveson adjourned the meeting at 6:00 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: 2012-01-17 (.pdf 32.K)

VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
FEBRUARY 7, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on February 7, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were President Karl Gustaveson, Vice-President Ted Miller, Secretary-Treasurer Sandra Ramaker and Board Member Rich Bowler.  Board Member Kenyon Leavitt was not present.  Also present were District General Manager Ken Rock, District Legal Counsel Bo Bingham for a short while, 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 5:02 p.m.
• Rich Bowler offered a Prayer
• Sandra Ramaker led the pledge.
• Public Comment – There was no public comment at this time.
• Board Comments – Ted Miller stated that he would like to make a public comment regarding the Lonetti water that the District purchased through the 2006 Bond and has since lost.  Ted further stated that present management does not feel comfortable with going to the State water authority and trying to get them to change their policy and get that water reverted back to the District; so he would suggest that the District pass an ordinance or something and give the rate payers back the money from that bond.
Rich stated that he would like to thank the Bunkerville Town Board (BTB) for the opportunity to serve on the VVWD Board; and the BTB also requested that Rich convey their feelings of gratitude to Mark McEwen for his service on the VVWD Board.
• President of Board Comments - None

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 carried by a vote of 3-0 with Rich Bowler abstaining since he was not at the last meeting.

1. For Possible Action - Approve Agenda

2. For Possible Action – Approve  Minutes from 1/17/12 Regular Board Meeting

3. For Possible Action – Approve Financial Statement for December 2011

4. For Possible Action – Approve Bills Paid since last public meeting- $274,654.05

** End of Consent Agenda**

5. For Discussion & for Possible Action – Consideration to approve Engagement Letter from Wisan, Smith, Racker & Prescott, LLP to perform annual audit for Fiscal Year Ending June 30, 2012

Wes Smith had included a memorandum along with the engagement letter recommending that this firm do the District’s audit for fiscal year ending June 30, 2012.

Rich Bowler made a motion to approve Engagement Letter from Wisan, Smith, Racker & Prescott, LLP to perform annual audit for the District for Fiscal Year Ending June 30, 2012.  Ted Miller seconded this motion and it was unanimously carried.  4-0

6. For Discussion & for Possible Action – Consideration to approve a Cost of Living Allowance (COLA) for Virgin Valley Water district employees effective July 1, 2012.

Ken included a memo informing the Board that all VVWD employees have been frozen since 7-1-08, when they received a COLA of 3% in response to the 2007 Consumer Price Index (CPI) increase of 3.2%.  Employees who were not topped out were able to move up in steps if warranted.  According to the US Bureau of Labor Statistics the CPI has climbed 7.0% cumulative since that time.  Ken also stated that the Board has done a good job with the help of consultants and financial staff of balancing projected income and expenses and the District is looking good this year; and the preliminary work for the next fiscal year looks favorable with not many capital improvement projects besides the basin study and small projects. 

Ken recommends a 3 to 4% COLA increase in salaries (not benefits).  With a 3% increase, this would represent a total additional cost of about $31,000 for FY 2012-2013 with a total budget impact of about 0.4%.

There was further discussion and questions answered from the Board and public with the Board members stating that they were in favor of a COLA increase.

Sandra Ramaker made a motion to approve a 3% COLA in salaries straight across the board for all employees beginning July 1, 2012.  Ted Miller seconded the motion and it was unanimously carried.  4-0

7. For Discussion & for Possible Action – Performance evaluation of Kenneth Rock, General Manager.  Possible action may include, but is not limited to, termination, suspension, demotion, reduction in pay, reprimand, promotion, endorsement, engagement, retention, salary increase, or ‘no action’.  (The Board of Directors may consider character, alleged misconduct, professional competence, physical or mental health pursuant to NRS 241.031.)

Each Board member had an evaluation form within their packet to fill out for Ken’s evaluation.  Karl stated that because Ken is the general manager, he had the option of having legal counsel present, but Ken has waived that right.  Rich began by stating that since this was his first meeting, he would not be filling out an evaluation form for Ken.

Ted began by stating that Ken does a good job, keeps the Board informed, and keeps the community up to date.  Ted further stated that Ken’s fiscal management, personal and professional attributes, and management skills and abilities were very good.  Ted added a comment that Ken’s and the Board’s responsibilities should be to the rate payers and not to other governmental agencies.

Sandra commented that Ken keeps the Board up to date with many issues and that he is respectful of the Board’s ideas and concerns.  For fiscal management, Sandra stated that the year isn’t done yet, but that everything looks good.  Ken is always the professional under personal and professional attributes and for community and public relations; Ken works well with office staff to respond to citizen requests and does well with questions from citizens that attend board workshops and meetings.  Sandra also stated under management skills and abilities that Ken is a visionary and works hard at bringing ideas to the Board and staff.  For effective leadership of staff, Sandra commented that Ken has only had to hire the accountant, but did well and that Ken has a competent staff and works well with them.  In general Sandra wrote that Ken is a real asset to the Water District; he works hard and is very focused; he is aware of the needs to keep the District solvent; Ken works well with other entities; Ken is very open and easy to talk with; and she hopes that Ken will continue to stay with the District.

Karl stated that Ken’s relationship with the Board was excellent, but he had one area that may need improvement regarding “facilitates the decision-making process for the Board” in that sometimes more information should be included in the packets so that the Board is better informed. Karl further stated that Ken’s fiscal management is great and that one of Ken’s real strengths is “community and public relations”.  This was something where the VVWD needed improvement and the number of functions that Ken has attended to educate the community is very much appreciated.  Karl continued stating that Ken’s skills and abilities are excellent.  Karl stated that Ken is a very forward thinking person, but sometimes the Board and staff have found that he is working on too many things at once; and that Ken should focus more on the issues and prioritize them in order of most importance.

Sandra Ramaker made a motion to continue to keep Ken Rock as general manager, to file his evaluations and hope that he continues working with the District as he’s done thus far. Ted Miller seconded this motion and it was carried by a vote of 3-0 with Rich Bowler abstaining.

8. Hydrologist’s Report

Aaron had included a written report.  Aaron also informed the Board that at the last Board meeting he was directed to combine the rehab of wells #33 and #32.  Since that time, Aaron has had more time to look at well #32 and received more information on this well and found out that the column lengths in well #32 are 40 feet and there are fewer contractors or well drillers that can actually pull that out and if we lump both wells together; there would be a lot fewer bidders capable of rehabbing both wells.  Aaron also stated that developing and rehabbing are two very distinct jobs, even though they are similar in many ways.  Some companies are more developing or rehab, but not necessarily both.  Aaron’s recommendation is to maintain the maintenance of each well separate in the bidding process.  Aaron further stated that getting well #33 back on-line is more of a rush with summer just around the corner.

Karl stated that the Board had approved the rehab of both wells #32 & #33, so the Board should take staff’s advice. 

Ted questioned Aaron on the golf courses and Aaron stated that he has been working with Pulte Homes and Wolf Creek Golf Course to assess the possible filing of a change application with the Nevada Division of Water Resources for Mesquite Irrigation Company shares that they lease from the District.

9.  General Manager’s Report

Ken had included a written report with significant events since his last report.  Ken further stated that he and Aaron have traveled to Boulder City a couple more times and met with the BOR and will be getting the proposal out tomorrow.  Ken also stated that he had recruited Forsgren Associates, Inc. for production of the report for graphics and GIS capability.  After speaking with BOR they have decided not to make this report a public document until after the BOR has reviewed and issued their findings.  Ken also stated that existing studies will also count as payment for in-kind services.

10. Public Comment

There was no public comment at this time.

11. Adjournment

President Karl Gustaveson adjourned the meeting at 5:48 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: 2012-02-07 (.pdf 31.K)

VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
JANUARY 3, 2012

Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on January 3, 2012, at the Virgin Valley Water District Office at 5:00 p.m.  Attending were Board Members Karl Gustaveson, Ted Miller and Sandra Ramaker.  Board Member Kenyon Leavitt was not present.  Also present were District General Manager Ken Rock, District Legal Counsel Bo Bingham, District Hydrologist Aaron Bunker and District Administrative Assistant Mary Johnson taking minutes and other interested parties of agenda items.   

• Karl Gustaveson called the meeting to order at 5:05 p.m.

• Karl Gustaveson offered a Prayer

• Sandra Ramaker led the pledge.

• Public Comment – There was no public comment at this time.

• Oath of Office to appointed Board members Karl Gustaveson from the City of Mesquite and Richard Bowler from the Bunkerville Town Board.
Richard Bowler’s appointment from the Bunkerville Town Board was not approved by the Clark County Commissioners as required as of this date.  The Clark County Commissioners plan to approve Mr. Bowler’s appointment at their next meeting scheduled for January 17, 2012.  The VVWD will then post Mr. Bowler’s Oath of Office for their next scheduled meeting on January 17, 2012 at 5:00 p.m.

• Oath of Office was administered to Karl Gustaveson appointed by the City of Mesquite to the VVWD Board by Notary, Mary Johnson.

• Nomination and Election of Officers

Sandra Ramaker nominated Karl Gustaveson to continue as President of the Board.  Ted Miller seconded this nomination.

Ted Miller nominated Sandra Ramaker for Secretary/Treasurer.  Karl Gustaveson seconded this nomination.

Sandra Ramaker nominated Ted Miller for Vice-President.  Karl Gustaveson seconded this nomination.

Karl called for the vote and all nominations were approved unanimously.  3-0

• Board Comments - None

• President of Board Comments – Karl stated that he had spoken with Mark McEwen and had a great discussion with him regarding his ability to handle issues and thanked him for his service on the VVWD Board.  Karl also suggested that other Board members may want to convey their appreciation to Mark for his service on the Board also.

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 12/20/11 Regular Board Meeting

3. For Possible Action – Approve Bills Paid since last public meeting- $271,955.12

** End of Consent Agenda**

4. For Discussion & for Possible Action – Nomination of representative from VVWD to the City of Mesquite Economic Development Committee

Sandra stated that she would like to remove this item because the City is working on a new economic committee and there are no meetings scheduled at this time.  Ted commented that he has not had notice of any meetings, but did receive a new application for the new committee and thought that this item should be tabled.

Ted Miller made a motion to table this item and to bring back at a later date after the City has decided to renew the economic committee.  Sandra Ramaker seconded this motion and it was unanimously carried.  3-0

5. Hydrologist’s Report

Aaron had not included a written report.  Aaron informed the board that he has basically been working on the same criteria as of the last meeting; wells #32 and #33 and the HMMP.  There will also be an Executive Committee meeting this Thursday regarding the VRHCRP.  Aaron further stated that he would have more information to bring to the Board at the next meeting.

6.  General Manager’s Report

Ken had included a written report with significant events since the last meeting.  Ken further stated that the biggest thing that has been happening has been work on the first basin coalition meeting scheduled for January 24th.  Ken has asked the Bureau of Reclamation (BOR) and all three States’ Department of Water Resources to give presentations because their opinions seem to be consistent that this is a great idea.  Ken would like to hear that from all their offices and have it on record so that it’s clear that the regulatory agencies agree that we need to have a cohesive plan for this basin for the water resources and what that total amount is and how to distribute it fairly.  Ken stated that he believes that all permittees would not agree that a change is in order, but that in order to proceed affectively for managing the water resources in this basin, going further with the District’s secondary study, determining how much water we have or how to distribute it, until we really know those answers.

Karl questioned if this would be a public meeting and Ken stated that he had been reading the Nevada Open Meeting Law and has asked Bo for a legal opinion whether this organization will be required to have public meetings and post an agenda for the meeting.

7. Public Comment

There was no public comment at this time.

8. Adjournment

President Karl Gustaveson adjourned the meeting at 5:23 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: 2012-01-03 (.pdf 25.K)