Public Information
Fact Sheets and other Publications are available that provide information that is important for helping to protect our water resources. In order to view many of these publications you will need to have Adobe Acrobat Reader installed. Visit the Adobe website to download the latest version of Adobe Acrobat Reader.
Public Meetings
The VVWD Board of Directors meet the 1st and 3rd Tuesday of every month at 3:00 p.m. at the VVWD Office.
Board Meeting Minutes
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The January 4, 2005 VVWD Board Meeting Minutes are available for download.
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The January 18, 2005 VVWD Board Meeting Minutes are available for download.
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The February 15, 2005 VVWD Evaluations Board Meeting Minutes are available for download.
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The March 2, 2005 VVWD Special Board Meeting Minutes are available for download.
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The March 15, 2005 VVWD Board Meeting Minutes are available for download.
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The April 5, 2005 VVWD Board Meeting Minutes are available for download.
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The April 19, 2005 VVWD Board Meeting Minutes are available for download.
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The May 19, 2005 VVWD Board Meeting Minutes are available for download.
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The June 7, 2005 VVWD Board Meeting Minutes are available for download.
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The June 21, 2005 VVWD Board Meeting Minutes are available for download.
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The July 5, 2005 VVWD Board Meeting Minutes are available for download.
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The July 19, 2005 VVWD Board Meeting Minutes are available for download.
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The August 2, 2005 VVWD Board Meeting Minutes are available for download.
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The August 16, 2005 VVWD Board Meeting Minutes are available for download.
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The September 6, 2005 VVWD Annual Board Meeting Minutes are available for download.
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The October 4, 2005 VVWD Board Meeting Minutes are available for download.
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The October 18, 2005 VVWD Board Meeting Minutes are available for download.
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The November 15, 2005 VVWD Board Meeting Minutes are available for download.
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The December 6, 2005 VVWD Board Meeting Minutes are available for download.
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The January 3, 2006 VVWD Board Meeting Minutes are available for download.
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The February 7, 2006 VVWD Board Meeting Minutes are available for download.
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The February 21, 2006 VVWD Board Meeting Minutes are available for download.
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The March 7, 2006 VVWD Board Meeting Minutes are available for download.
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The March 21, 2006 VVWD Board Meeting Minutes are available for download.
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The April 4, 2006 VVWD Board Meeting Minutes are available for download.
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The May 2, 2006 VVWD Board Meeting Minutes are available for download.
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The May 18, 2006 VVWD Board Meeting Minutes are available for download.
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The June 6, 2006 VVWD Board Meeting Minutes are available for download.
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The June 20, 2006 VVWD Board Meeting Minutes are available for download.
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The July 18, 2006 VVWD Board Meeting Minutes are available for download.
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The August 15, 2006 VVWD Board Meeting Minutes are available for download.
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The September 5, 2006 VVWD Board Meeting Minutes are available for download.
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The September 19, 2006 VVWD Board Meeting Minutes are available for download.
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The October 3, 2006 VVWD Board Meeting Minutes are available for download.
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The November 7, 2006 VVWD Board Meeting Minutes are available for download.
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The December 5, 2006 VVWD Board Meeting Minutes are available for download.
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The December 19, 2006 VVWD Board Meeting Minutes are available for download.
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The January 2, 2007 VVWD Board Meeting Minutes are available for download.
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The January 16, 2007 VVWD Board Meeting Minutes are available for download.
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The February 6, 2007 VVWD Board Meeting Minutes are available for download.
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The March 6, 2007 VVWD Board Meeting Minutes are available for download.
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The April 3, 2007 VVWD Board Meeting Minutes are available for download.
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The April 17, 2007 VVWD Board Meeting Minutes are available for download.
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The May 1, 2007 VVWD Board Meeting Minutes are available for download.
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The May 17, 2007 VVWD Board Meeting Minutes are available for download.
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The June 5, 2007 VVWD Board Meeting Minutes are available for download.
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The June 19, 2007 VVWD Board Meeting Minutes are available for download.
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The July 17, 2007 VVWD Board Meeting Minutes are available for download.
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The August 8, 2007 VVWD Board Meeting Minutes are available for download.
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The September 4, 2007 VVWD Annual Board Meeting Minutes are available for download.
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The September 18, 2007 VVWD Board Meeting Minutes are available for download.
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The October 2, 2007 VVWD Board Meeting Minutes are available for download.
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The October 16, 2007 VVWD Board Meeting Minutes are available for download.
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The November 6, 2007 VVWD Board Meeting Minutes are available for download.
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The November 20, 2007 VVWD Board Meeting Minutes are available for download.
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The December 4, 2007 VVWD Board Meeting Minutes are available for download.
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The December 18, 2007 VVWD Board Meeting Minutes are available for download.
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The January 15, 2008 VVWD Board Meeting Minutes are available for download.
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The February 2, 2008 VVWD Board Meeting Minutes are available for download.
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The February 19, 2008 VVWD Board Meeting Minutes are available for download.
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The March 4, 2008 VVWD Board Meeting Minutes are available for download.
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The March 4, 2008 VVWD Work Session Board Meeting Minutes are available for download.
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The March 18, 2008 VVWD Board Meeting Minutes are available for download.
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The April 1, 2008 VVWD Board Meeting Minutes are available for download.
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The April 15, 2008 VVWD Board Meeting Minutes are available for download.
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The April 15, 2008 VVWD Budget Work Session Board Meeting Minutes are available for download.
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The May 6, 2008 VVWD Board Meeting Minutes are available for download.
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The May 15, 2008 VVWD Special Meeting Board Meeting Minutes are available for download.
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The June 3, 2008 VVWD Board Meeting Minutes are available for download.
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The June 17, 2008 VVWD Board Meeting Minutes are available for download.
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The July 1, 2008 VVWD Board Meeting Minutes are available for download.
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The July 21, 2008 VVWD Special Meeting Board Meeting Minutes are available for download.
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The August 5, 2008 VVWD Board Meeting Minutes are available for download.
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The September 2, 2008 VVWD Board Meeting Minutes are available for download.
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The October 7, 2008 VVWD Board Meeting Minutes are available for download.
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The October 21, 2008 VVWD Board Meeting Minutes are available for download.
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The November 4, 2008 VVWD Board Meeting Minutes are available for download.
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The November 18, 2008 VVWD Board Meeting Minutes are available for download.
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The December 2, 2008 VVWD Board Meeting Minutes are available for download.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - JANUARY 6, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on
January 6, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were
President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Council, Michael (Boomer) Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.- President John Paul called the meeting to order at 3:00 p.m.
- Cecil Leavitt offered a Prayer and Kenyon Leavitt led the pledge.
- Public Comment: Sandra Ramaker stated her concerns on a water repair on Green Park Drive on January 2, 2009 and safety violations she observed. Patrick Williams questioned the VVWD Operations Systems “Closed Bids” and when they would be opened. Mike stated that no bids have been accepted; only RFP’s to SH Architecture.
- Oath of Office to Re-Elected Board Member Ted Miller Notary, Mary Johnson, administered the Oath of Office to Ted as he had been re-elected to serve two more years on the Board of Directors for the Virgin Valley Water District.
- Elect Officers John Paul stated that he has been serving as the President and if the board so desired, he would be more than willing to continue in this position. John further stated that Cecil has been Secretary-Treasurer for years and asked if he would like to continue in this position and he stated that he would. Kenyon Leavitt was nominated as Vice-President last year and had no objections of continuing in this position.
Ted Miller made a motion to leave as status quo and to make no changes and keep the
officer’s of the VVWD the same with John Paul as President, Cecil Leavitt as Secretary-
Treasurer and Kenyon Leavitt as Vice-President. Bubba Smith seconded the motion. John
Paul asked if there were any other nominations, and seeing none, the motion was passed
unanimously. 5-0DISCUSSION:
Board Comments – Ted Miller questioned the District’s pressure system and if we had information on the system pressure when pipes have broken and if any pipe
replaced had failed again. Mike Winters stated that the District did have information
regarding the pressure and yes, pipe had failed again that had been replaced, but it
was still the same pipe back in 1999 and 2000.
President of Board Comments - NoneCONSENT AGENDA:
John Paul had a question on item #4 regarding the company’s paperwork on page 3 stating that the rate of inflation could be applied and if the amounts were included or the amount of this item would increase. Boomer answered stating that there should be no extra service charges and the amount stated should not go higher.Bubba Smith made a motion to approve the consent agenda as listed below. Kenyon
Leavitt seconded this motion and it was unanimously carried. 5-0- Discussion & Action - Approve Agenda
- Discussion & Action – Approve of Minutes from 12/2/08 Regular Board Meeting
- Discussion & Action – Approve Bills Paid - $3,405,327.41
- Discussion & Action – Approve Purchase Orders Over $2,500
- 1. Subsurface Technologies - $121,080.00 – Aqua Guard Treatment of VVWD Well Nos. 30, 31, 32 and 33
- 1. Subsurface Technologies - $121,080.00 – Aqua Guard Treatment of VVWD Well Nos. 30, 31, 32 and 33
- Discussion & Action – Approve “Will Serve” Letters - Ratify
- 1. Sunrise Meadows Subdivision Phase 2 – 28 EDU’s Contingent upon meeting the Criteria to Ordinance II
** End of Consent Agenda**
- 1. Sunrise Meadows Subdivision Phase 2 – 28 EDU’s Contingent upon meeting the Criteria to Ordinance II
- Discussion & Possible Action – Consideration to File Complaint for Judicial Proceedings for Interpleader and Declaratory Relief
George stated that he was contacted by Chris Blair, wherein he was requesting the Ordinance II fees returned on a project, Vista Rose Subdivision, now known as Santa Fe Springs Subdivision, since he is no longer the owner of the project. Chris Blair, and/or, Stone Creek Development and Bulloch Brothers Engineering had both paid the Ordinance II fees on the project before the Ordinance II fees were increased and there was an issue on ownership. George contacted Greg Bulloch with Bulloch Brothers in an effort to determine if they were agreeable to the District returning the fees to Stone Creek Development since Bulloch Brothers are the owners of the property in question and Greg stated that they were not agreeable to this since they were under the theory that the payment became part of the project deeded over in lieu of foreclosure. Since the parties cannot agree, this forces the Water District to file this action for interpleader wherein the Justice Court will decide which party is entitled to the excess payment.
Ted questioned the money that the District has spent and will spend on this.
Cecil Leavitt made a motion to authorize general counsel to file complaint for judicial proceedings for Interpleader and Declaratory Relief. Bubba Smith seconded this motion and it was carried by a vote of 4-1 with Ted Miller opposed.
- General Manager’s Report - Mike informed the board that he has been working with legal counsel regarding the polyethylene pipe failure. Concerning the crossing at the Bunkerville Bridge, Mike stated that Boomer would have more in his report, but that we were getting ready to hook into the 16” system and install the PRV vault. Mike further reported that he believes that two or three of the arsenic plants will be operational by the end of January and the others shortly thereafter. Mike further informed the board of upcoming agenda items that we would be working on.
- Hydrologist’s Report - Boomer stated that he has been working on the second installation of the pipe for the directional drilling at the Bunkerville Bridge and that it finally passed the pressure test on Sunday and that they were demobilizing now. The aqua guard treatment for the wells should be completed at the end of January as well as well #30 we are getting the finalization of the equipment to begin the installation of the new pumping equipment.
- Adjournment - President John Paul adjourned the meeting at 3:45 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - JANUARY 20, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on
January 20, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Council, Erik Beyer District Engineer, Michael (Boomer) Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.- President John Paul called the meeting to order at 3:03 p.m.
- Kenyon Leavitt offered a Prayer and Bubba Smith led the pledge.
- Public Comment – There was no public comment at this time.
DISCUSSION:
Board Comments – Ted Miller questioned the agenda and the number of items on
this agenda, yet there was only one meeting the last couple of months and couldn’t it
be spread out more evenly. President of Board Comments – John Paul seconded Mr. Miller’s sentiments.CONSENT AGENDA:
John Paul stated that if there were no objections that item #12 be moved up in the agenda to be heard after item #6 since the representatives were traveling from Las Vegas. Kenyon Leavitt made a motion to approve the consent agenda as listed below with item #12 on the agenda moved to be heard after item #6. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0- Discussion & Action - Approve Agenda – Move item #12 to be heard after item #6
- Discussion & Action – Approve Minutes from 1/6/09 Regular Board Meeting
- Discussion & Action – Approve Financial Statements for October and November 2008
- Discussion & Action – Approve Bills Paid - $234,533.25
- Discussion & Action – Cancel Meeting Scheduled for February 3, 2009 Due to NWRA Conference in Reno that the General Manager and Chief Hydrologist will be Attending
** End of Consent Agenda**
- Discussion & Possible Action – Presentation by Eric Roberts of SH Architecture and Consideration for Direction to Staff Regarding the CMAR for a New Administration and Operation Facility
John Paul stated that the agenda was written with “CMR” and it should have been “CMAR”, Construction Manager at Risk. Mike Winters stated that RFP’s were sent out as instructed by the Board and Erik Roberts was here with the findings. Erik stated that they received ten (10) qualified proposals by five different firms. The ranking was completed as per NRS Statutes and they are required to weight 30% to costs of the proposals. The cost proposals were opened and notarized on January 5, 2009 and then scored. A team of disinterested parties rank the designs separate from the costs. The scoring was based for the designs on team competition and a 5% preference for Nevada firms. It is Eric’s recommendation that the board interview the top two firms from each of the two divisions and continuation of this project.
Questions were asked by board members and answered by Eric. Cecil Leavitt disclosed that he had affiliations with Legacy Construction and was not sure if he should abstain, but he still had questions. George stated that since Cecil would gain no profit that he did not see why he could not still participate with the discussion. Kenyon stated that with the present economy he was not certain whether the District should build now or later, but could not see asking for $4 million more from customers. Mike explained that if the board recalled they voted to float a bond 9 months to one year ago and that the money is in the bank and the money could not be returned. Mike also stated that he had spoken with Marty Johnson with JNA Consulting and that the District bought bond insurance which is no longer available for bonds under 100,000,000 dollars. There was further discussion regarding the money and availability of its use. George Benesch stated that it may be in the best interest of the board to have Marty Johnson and bond council come to the next board meeting and explain the bond situation and how the District can use these funds.
There were further questions and comments regarding the proposals and process. Cecil also stated that the firms who submitted RFP’s had also put a lot of money into this process. Kenyon Leavitt made a motion to table this item until the February 17th meeting and to have Marty Johnson with JNA Consulting and bond council present with information regarding bonding money and to see what the District’s options are. Ted Miller seconded this motion.
The item was opened to the public for comment with Cresent Hardy stating that the board should be forward thinking and that people had spent a lot of money on this project and that the board should move forward and find out who won the RFP. Other comments were made with Duane Magoon calling for a point of order and clarification on Cecil stating that he was abstaining, but still commenting on the item. George stated that he was just disclosing his association with Legacy Construction and could still participate in the discussion. John Paul called for a vote and the motion was carried by a vote of 4-0 with Cecil Leavitt abstaining.
- (12) Discussion & Possible Action – Consideration to Enter into a Contract with Zee Designs for the Creation of the Virgin Valley Water District Website
Mike Winters began by stating that a contract had been received from Zee Designs and forwarded to George for review and approval. George stated that he had some concerns, but feels like we can work it out. George stated that he only had time to briefly look through the contract and recommended that the board table this item until the contract issues were resolved; or that the board could go forward subject to the contract concerns being resolved. Zee Marie representing Zee Designs commented that the site could be up and running within 30 days except for the customer site. Zee stated that she would like the board to move forward and work out any concerns with George before the contract was signed.
Ted Miller made a motion to table this item and bring back contract at the February 17th meeting. Bubba Smith seconded this motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Consideration to Change Ordinance II in Regards to the Amount to be Paid Per EDU. Mike Winters began by stating that in the past, Ordinance II fees were raised along with the fair market value for what water is selling for in the valley. With SNWA purchasing shares the fair market value would be $8,700 per EDU and/or acre-foot. The fees right now are $3,300 per EDU and this is not enough to purchase an acre foot of water.
There were questions from the board regarding the fair market value and if this would increase or if this was the highest it would go. There were comments from the public. George explained the criteria to Ordinance II and how it was established and how it has worked thus far. Kenyon Leavitt made a motion to increase the Ordinance II fees to $8,700 per EDU effective as of this date. Ted Miller seconded this motion and it was unanimously carried. 5-0
- Consideration to Adopt Resolution 2009-1 Amending the Criteria for Required Dedication of Water Rights Pursuant to Virgin Valley Water District Ordinance No. 2 Mike explained that this resolution would require an individual to turn water over to the District if they own water in lieu of payment. Cecil had questions regarding the shares in Bunkerville and Mesquite because he believed that Bunkerville shares could not be broke down and were only sold per whole share. Mesquite shares can only be split in half, but not fractured out more. There were several comments from the public and felt that they shouldn’t be punished for owning water. Mike stated that the idea was to keep water in the valley and that he was unaware that you couldn’t split irrigation shares.
George stated that he based the resolution on Fernley’s policies, but that the District’s Ordinance II criteria now actually does require the dedication of water or the equivalent paid in money. Bubba questioned why there had not been a workshop beforehand on this item. There was further public comment on the item. Comments were made that there is public water and private water and you would be punishing people who hold water shares. Bubba stated that companies, individuals, etc. can form LLC’s or put ownership in others’ names and who is to say who actually owns the water and must dedicate it in lieu of paying the equivalent. This item died for a lack of a motion.
- Discussion & Possible Action – Consideration to Adopt Resolution 2009-2 Addressing the Criteria for Leasing of Mesquite Irrigation Company and Bunkerville Irrigation Company Shares Held by the Virgin Valley Water District. Mike stated that he had attended Moapa Valley Water District’s Board Meeting and had included Moapa’s memorandum to the chairman from the general manager regarding their criteria for leasing irrigation water. Mike also stated that in February that he would be bringing in sealed bids for irrigation leases. Bubba stated that he sees a lot of similarities in this item and the last item. He asked where you draw the line on who you lease water to. As stated before, Bubba believes there is private water and public water and how can the District tell owners of private water what they have to do with their water and we should go by a case by case basis and entertain all requests to lease.
Kraig Hafen stated that he had been present at the board meeting on February 5, 2008 and that there was a motion to lease the District’s Bunkerville shares to Hafen Dairy and that he has heard nothing from the District regarding this motion. He also stated that other shares had been leased in Bunkerville. Duane Magoon stated that the District purchased four shares from Bunk Farms with a lease back option. Kraig wanted to know if he would be put ahead since he was first to request to lease water from the District and has never been contacted. Mike stated that the Bunkerville shares were exchanged with SNWA for four times the amount of water for pre-1929 water for post 1929 water. There was further public comment regarding pre-1929 water.
Theron Jensen called for a point of order stating that while this was interesting discussion, what did it have to do with the agenda item. After further discussion, John Paul called for a vote. The item died for a lack of a motion.
- Discussion & Possible Action – Consideration to Increase the Secondary Rates on the South Side of the River. Mike reported that the District currently collects $39,000 for the secondary system and is spending $37,000 per year for power, which does not leave much money for maintenance and upkeep. If the District increases the secondary system $3 this would give an extra $5,000 to $6,000 per year for maintenance and would also allow the District to qualify for an extra 1.3 million in funding through the State for arsenic treatment on the south side of the river. Cecil commented on his concerns with the habitat fee that the District must collect for the City of Mesquite, but had no problem paying the $3 increase for the secondary since he uses that water. There was further discussion from the public with questions being answered. Kenyon Leavitt made a motion to increase the secondary rates on the south side of the river $3 per month per customer who uses the secondary system. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Consideration of the Rejection of Change Order No. 1 Submitted by Longview Construction & Development and Assessment of Liquidated Damages in the Amount of $2,000 Per Day for Virgin Valley Water District Riverside Road Virgin River Crossing Contract No. 2008-01, PWP-CL2008-441. Michael Johnson had included a detailed memorandum stating in chronological order the events that occurred since the signing of the contract with Longview Construction for this project and verbally informed the board and public of these occurrences. He also included copies of the Notice to Proceed, Notice of Award, Longview’s change order, Southeast’s Directional Drilling letter to Longview Construction and invoices with change order amounts included. Completion of work associated with the contract was 75 calendar days from the Notice to Proceed or December 12, 2008. Boomer stated that at the preconstruction meeting the importance of completing on time was stressed to prevent conflict with the NDOT contract associated with replacing the bridge. Boomer has also included parts of the contract associated with the “Drilling System Equipment” and “Reports of Exploration and Tests” that all bidders received with the same contract documents.
Boomer further stated that the geotech investigation was provided as part of the project. The geotech investigation was conducted within the NDOT ROW varying between 150 to 200 feet in width. Gravels and cobbles were identified in the geotech boring logs provided as a reference to the VVWD contract documents. There is no verification that the “Geotech Report did not provide accurate info.” as stated on the change order requested by Longview Construction. There was sufficient time to properly submit a change order request instead of having the boring subcontractor request the change order when demobilizing equipment. The official completion date for VVWD project was January 6, 2009. With this completion date, 25 days of liquidated damages should be assessed against the contractor, with the total amount of liquidated damages totaling $50,000.00. Boomer’s recommendation to the board is to reject the Change Order request No. 1, submitted by Longview Construction & Development in the amount of $172,518.50 and assess liquidated damages in the amount of $50,000.
Kenyon asked if our delay caused any other delays and Boomer stated that we don’t know yet. If it comes down to Legacy Construction running over on their contract with NDOT, then yes, they of course would put the blame on the District because we ran over and the state liquidated damages are assessed at $7,000 per day.
Cecil Leavitt disclosed that he is employed as a private contractor with Legacy Construction on the bridge replacement project and that he would be abstaining from voting on this item. There was further discussion with the board regarding the liquidated damages and if we could hold money to see if we incurred any more costs or if they had to be collected. Boomer also stated that there could be additional delays besides the bridge replacement. The District is still working on a PRV and that there is not water running through the pipes yet. Dave Bundy, owner of Longview Construction stated that his subcontractor, Southeast Drilling received a soil report that did not show any substantial cobble, or any cobble at that depth, nor did it show any rock baskets. Southeast Drilling had an 80,000 lb. machine that’s been said that it was too small and he asked Boomer if he had specifications to prove that.
Boomer was quick to respond that this was not his, nor the District’s responsibility, but the contractor’s responsibility and that Longview did not submit calculations as terms of the contract. Dave further stated that they had to wait for another machine to be moved from another location and that they worked 24 hours a day and over the holidays. There was further discussion regarding the soils reports and the contract and how it was written. Bubba questioned if the board could have a closed door session with legal counsel for legality questions. George stated that it is usually agendized, but it did not have to be and that no action could be taken until the meeting was reopened.
John Paul called for a closed meeting with District counsel and asked the public to leave the conference room for a moment. Meeting reopened and John Paul asked for a motion. Bubba stated that he would like to see the liquidated damages set aside and applied if needed. Bubba Smith made a motion to reject the change order submitted by Longview and look at the assessment of liquidated damages at a later date. Bubba amended his motion to reject change order No. 1 submitted by Longview Construction & Development and that we do assess liquidated damages in the amount of $2,000 per day, but at the same time that we hold that money until a future time when we decide whether it is needed or if we can refund that money to Longview Construction if the District does not incur any more costs. Kenyon Leavitt seconded this motion and it passed by a vote of 4-0 with Cecil Leavitt abstaining.
- General Manager’s Report - Mike reported that we should be getting the grading permit for well #27 site. Plans had been submitted to the HOA for the site and had been approved for leveling to do repairs on our rigs. We should also be getting our grading permit for the Hardy Way Arsenic Site. Mike further stated that with the arsenic plants that we have ran into a little delay with the media, but it should be shipped this week. The people installing do not want to come out to install one and then come back out in another week to install another, so we will wait until we receive all the medias and then they will be installed in three to four weeks and then the plants should be on-line.
Mike stated that we are also working on the PRV at the bridge and that should be completed by the end of the month and he has also been working with Jori on the Vanguard issues.
- Hydrologist’s Report - Michael stated that obviously he has been working on the paperwork for item #11 and that we are getting ready to begin the CO2 injections. He further stated that he is finalizing the site on Riverside for the installation of the Ranney collector and working on implementing the VRHCRP
agreement.
- Engineer’s Report - Erik mentioned water conservation as a quarterly report, but with it being winter, there was not much irrigation going on. Erik stated that the Emergency Response Plan (ERP) and Vulnerability Assessment had been completed and copies of the ERP were handed out to all board members and that a couple of the Vulnerability Assessment’s had been given to Mike to keep in the safe. He explained that the Vulnerability Assessment was to be completed as if you were thinking like a terrorist and what we should be aware of and to keep the District safe.
- Public Comment - George stated that he had a discussion with the Chairman and President of the board and was asked how he should be addressed and other members of the board. George found in the Enabling Legislature that the Chairman is called the “Chairman of the Board” and “President of the District”;
and for members of the board there is no limitation and they can be called “member of the board”, “board of director” or anything else. Sandra Raymaker asked about her last comments in public comment at the last meeting regarding the safety issues and Mike responded that actions are being taken to correct any problems.
Sandra also questioned the board having an “Executive Session” and that it is improper and illegal according to the Open Meeting Laws. George stated that this was not an “Executive Session”, but it was an Attorney/Client consultation session which is allowed. Bob Draskovich commented regarding contracts and liquidated damages.
- Adjournment - President John Paul adjourned the meeting at 6:18 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - FEBRUARY 17, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on February 17, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt leaving early at 5:25 p.m., and Board Members Ted Miller leaving early at 4:15 p.m. and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Council, Erik Beyer District Engineer, Michael (Boomer) Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
- President John Paul called the meeting to order at 3:02 p.m.
- Cecil Leavitt offered a Prayer and Bubba Smith led the pledge.
- Public Comment – There was no public comment at this time.
DISCUSSION:
Board Comments – Ted stated that he would have to leave the meeting at 4:15.
President of Board Comments - NoneCONSENT AGENDA:
Kenyon Leavitt made a motion to approve the consent agenda as listed below. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0- Discussion & Action - Approve Agenda
- Discussion & Action – Approve Minutes from 01/20/09 Regular Board Meeting
- Discussion & Action – Approve Financial Statement for December 2008
- Discussion & Action – Approve Bills Paid - $1,932,095.94
** End of Consent Agenda**
- Discussion & Possible Action – Consideration to Authorize the General Manager to Sign a Contract Between the VVWD and Zee Designs for the Development of the District Website. This item was tabled from the last meeting until District Council and District IT, Tracy Lee, were able to look over and approve the contract. Mike also stated that there were three additional change orders included that were not in the RFP. Mike explained that these change orders could all be approved or certain ones, or none at all and we would budget for them in the next fiscal year. Mike stated that he would recommend that the board approve the contract along with the change orders. George stated that he had spoken with Tracy Lee and both were in agreement and recommended approval of the contract. The change orders total $10,782.50 for phases I, II and III. Questions were asked by the board regarding the change orders and Mike and Zee both stated that the website would be fully operational and secure without the change orders added at this time. Zee Marie of Zee Designs stated that the website will require attention and maintenance of the website, which Zee Designs would be handling.
Cecil Leavitt made a motion to approve and authorize the General Manager to sign a contract between the VVWD and Zee Designs for the development of the District website and approve all three change orders totaling $10,782.50. John Paul seconded this motion and it was carried by a vote of 4-1 with Bubba Smith opposed.
- Discussion & Possible Action – Consideration to Approve Opening New Bank Account(s) District’s CFO, John Gleave, was present to inform the board that it was our desire to move money from three accounts at the Local Government Investment Pool (LGIP) to the Bank of Nevada. John has been negotiating with Dan Wright, Senior Vice President over the Mesquite branch to pay an interest rate above the amount that we earn at the LGIP. The funds will be collateralized through the Bank’s and VVWD’s participation in the Nevada Pooled Collateral Program (“NPCP”), which is a program offered through the Office of the Treasurer with the State of Nevada. Through this program, the deposits of the VVWD held at the Bank will be monitored daily to ensure that sufficient and acceptable collateral is set aside by the Bank to collateralize the full amount on deposit. This program satisfies NRS statutes for collateralization of “public funds”. We would move the money from the LGIP regular account to our current money market account at Bank of Nevada and the 2008 Bond and the Ordinance II restricted accounts would be the new accounts opened.
Cecil Leavitt made a motion to approve the opening of two new accounts at the Bank of Nevada and moving monies from the District’s LGIP accounts. Bubba Smith seconded this motion and it was unanimously carried. 5-0
- Discussion – Presentation by JNA Consulting Regarding the 2008 Bond
Marty Johnson representing JNA Consulting was present to recap how the 2008 Bond works. He believes there have been some questions on how the bond came and went and what options the District may have concerning the spending of the bond money. In the past, the District did Revenue Bonds. The 2008 Bond is a General Obligation Revenue Supported Bond. As part of the process, the District had to go before the Debt Management Commission. We went to them proposing a 23.1 million dollar bond, which they approved. The only limitation there is, is that the amount could not increase and it had to be issued within three years. The bond ordinance was adopted with an interest rate of 4.9%. There was no list of projects to be completed within the bond documents. The District had a list of capital improvement projects that the 23.1 million would cover, but Marty stated that it is understood that circumstances and the economy can change. Marty further stated that if the District had no capital projects to construct with the remaining money after arsenic is completed, that the bond money could be used to pay off or down other higher interest rated bonds, but it most likely would not be dollar for dollar. Marty stated that the District would be hard pressed to receive another bond at this bonds interest rate and that we want to make sure that we maintain our AAA bond rating.
- Discussion & Possible Action – Consideration to Continue with the Construction Manager at Risk (CMAR) for a New Administration and Operations Facility. This item was tabled at the last board meeting because the board wanted the information provided by Marty Johnson in the previous item. Eric Roberts of SH Architecture and Mike both recommend that the District move forward and conduct interviews with the contractors who spent quite a bit of money on this project and look at the proposals submitted. John Paul questioned changing and only putting the Maintenance facility on the Bunkerville property and keep the Administration Building at this location and if this would be appropriate. Mike stated that he would like to keep the facilities together and the RFP was advertised for both facilities at one location.
Mike also mentioned that the enabling legislature states that the board decides on a place of business and the by-laws only state that it be in Mesquite; and that this could be changed easily by a resolution. Kenyon Leavitt still questioned whether we could pay for it. Cecil stated that contractors had spent a lot of money on the RFP and no one has even looked at the proposals and that there is no cost to just look at their proposals. John Paul opened the item for public comment. Quite a few persons had public comment and almost all were in favor at looking at the proposals. It was asked if the economy had changed that much since September when the District requested RFP’s for this project and why did we ask for the proposals if we had no plans on going forward with the project and that a lot of time had been spent on these proposals. Kenyon Leavitt made a motion to continue with the Construction Manager at Risk (CMAR) for a new administration and operations facility and review the proposals. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0 Board Member Ted Miller left at 4:17 p.m.
- Discussion & Possible Action – Consideration to Place Main Line PRV’s at the Fairways HOA. Mike stated that he has met with this HOA along with other HOA’s regarding the pressure on the north side of the freeway. Mike stated that we had placed a pressure recorder on a vacant home and found that the pressure is ranging around 125 psi and we did not see big fluctuations as they are reporting. Mike further reported that each home is required to place a PRV on the home, but believes the problem lies in the landscaping and suggests that each resident place another PRV on the landscaping at a cost under $100. If the District were to place a PRV on the main, and with the City requirement of a looped system, two PRV’s would be required; the price could be $30,000 to $40,000. This would also lead to setting precedence and other HOA’s would want this also and this would change the hydrology of the system. Mike further stated that PRV’s require annual maintenance and with the chemical make-up of the District’s water, homeowners need to realize that their PRV’s need maintained yearly and that they should either replace the entire valve or the guts of the valve each year. Mike recommended to the board that the District not place mainline PRV’s at Highland Fairways, but that each customer look into adding another PRV for the landscaping and maintain them yearly.
Jerry Hyland, President of Highland Fairways HOA, gave some background information and requested that the District pay for and fix their problem and not ask each resident to pay for. Mike Chandler with Bowen & Collins stated that Bowen & Collins contracted with the District and were in the process of updating the system model. Mr. Chandler stated that pressure zones are difficult, but that they are aware of this situation and they would recommend rectifying the situation system wide and not by single subdivisions. The system model could be completed within 90 days. Mr. Chandler further stated that by putting in a main line PRV(s) would cause a chain reaction throughout the rest of the system and problems further down the line. Bubba Smith made a motion to table item until Master Plan received and then put item back on the agenda. Cecil Leavitt seconded this motion and it was unanimously carried. 4-0
- Discussion & Possible Action – In Response to the Request by Kraig Hafen, Hafen Dairy to Lease Bunkerville Irrigation Company Irrigation shares from Virgin Valley Water District from the February 5, 2008 Board of Director’s Meeting. Boomer had provided the board with a memorandum of events that occurred since the board’s vote at the February 5, 2008 meeting. The District previously entered into an agreement in April of 2000 with SNWA regarding acquisition and use of Virgin River within the lower Virgin River Hydrographic Basin 222. The agreement allowed SNWA to purchase surface water rights from the Virgin River with a priority date of pre-1929. In exchange for SNWA acquisition of the water, VVWD received 50 percent joint ownership of the SNWA ground water applications in the basin and for every acre-foot of pre-1929 water right obtained by SNWA, VVWD received 1 acre foot of 1989 priority water held by SNWA. A new agreement between VVWD and SNWA dated March 18, 2008 provided for the removal of the previously cap of 5,000 acre feet; assigns title for 5,000 acre-feet seasonal diversion of 1989 priority water issued to SNWA to VVWD; SNWA assign the remaining portion of the undivided half interest in the 1989 ground water applications in the Virgin River basin to VVWD; and assigns the title to 1,200 acre-feet annually of surface water under Permit No. 54383 with a 1990 priority acquired by SNWA to VVWD. The District transferred the 89 shares of Bunkerville Irrigation Company shares held by VVWD to SNWA.
Upon execution of the agreement the total amount of surface water held by VVWD was 8,650 acrefeet. Additionally, VVWD acquires the senior ground water application in their entirety with a priority date of 1989. This equates to a potential estimated volume of 62,000 acre-feet. VVWD gave up approximately 890 acre-feet of Virgin River water to SNWA with a pre1929 priority date. After execution of the agreement between VVWD and SNWA, VVWD no longer held shares of Bunkerville Irrigation water to lease with Hafen Dairy, Inc. The District failed to notify Hafen Dairy personally about the agreement, but it had been posted on the agenda for the 3/18/08 board meeting.
The District currently has 2 Bunkerville Irrigation shares utilized for the secondary system in Bunkerville. Kraig stated that the agreement with SNWA was probably a good deal, but questioned how the District used the secondary system without any shares available after the 89 shares traded to SNWA, and now the District needs two shares for the secondary system. Boomer stated that two shares are technically not leased out and we need approximately 200 acre-feet for the secondary system and recommends not leasing the two shares at this time. Boomer answered other questions from the board. No action was taken on this item.
- Discussion & Possible Action – Consider Offer by Bunk Farm, LLC to Sell 8 Shares of Bunkerville Irrigation Company Irrigation Water at an Amount of $80,061.23 Per Share for a Total not to Exceed the Amount of $640,489.84 and Authorize the General Manager to Negotiate and Sign Agreement Between Bunk Farm, LLC and the Virgin Valley Water District. The board previously authorized the purchase of irrigation water shares in the cumulative amount of $5,000,000.00. Under this board action, VVWD expended a majority of available funds and purchased 4 shares of Bunk Farm, LLC shares with provisions to lease back to Bunk Farm, LLC for $300 per share for 5 years. Kraig Hafen stated that the board’s action was for the purchase of water and not to lease and thought that the District would no longer have long term leasing agreements anymore and that the lease agreement should have come before the board for approval.
Bubba questioned the lease of the four shares and the substantial difference in SNWA leasing amount compared to the District’s. Mike stated that the goal was not to recoup money, but the actual purchase of the water. John Paul stated that his primary purpose was to own the water and not a return of money on leasing. Cecil Leavitt left at 5:25 p.m.
This sale request and lease back is for a five-year period. Bubba questioned the amount of sale and such a low lease back. Kenyon Leavitt questioned Duane Magoon if they would be willing to lease on a year to year basis and Duane stated he was agreeable to this. Kenyon Leavitt made a motion directing the General Manager and staff to negotiate an agreement with Bunk Farm, LLC to purchase 8 shares of Bunkerville Irrigation Company irrigation water at an amount of $80,061.23 per share not to exceed $640,489.84 with a lease back option of $300 per share on a year to year basis with Bunk Farm, LLC given the first right of refusal. Bubba Smith seconded this motion and it was unanimously carried. 3-0.
- Discussion & Possible Action – Consideration of Leasing Shares Held by Virgin Valley Water District and Authorize the General Manager to Establish Criteria for Leasing, Negotiate and Sign Agreement Between the Virgin Valley Water District and Accepted Lessor. Mike stated that the board decided last year that they would advertise to lease available shares of irrigation water that the District owns. There are 64 shares of Mesquite Irrigation water available at this time and there will be 188 Mesquite shares available in August of this year. Boomer had provided a summary of surface water rights held by VVWD in the lower Virgin River basin and an abstract of irrigation rights for the lower Virgin River basin provided by Nevada Division of Water Resources. Items to be considered is the amount of Mesquite Irrigation Company shares to be leased are: length of lease; minimum lease price per share; termination of leases by VVWD; restriction on where lease may be utilized; how to advertise; and establishment of opening date for Request for Offers. After discussion, it was decided to lease the 64 shares now. Leases would be on a year to year basis with a minimum bid of $300 per share. The water will be required to be metered. Boomer also stated he wanted termination clause in the agreement.
- General Manager’s Report - Mike informed the board that his and Boomer’s evaluation would be put on the next agenda. We also need to schedule a date for budget meeting and it was decided that April 7th at 1:00 would be the budget workshop meeting before the regular meeting. Mike further stated that the vault on the south side of the river was completed. There were also year-end reports regarding production and costs included in the board packets with the District producing 6,771.45 acre-feet of water in 2008.
- Hydrologist’s Report - Michael informed the board that he had attended the quarterly meeting of the Virgin River Conservation Partnership last week. There will be a meeting April 2nd and the 3rd in the St. George area with pertinent information between users of the upper and lower Virgin River basins being given. Additionally at that meeting the Bureau of Reclamation will be present and they have set aside $5 million for Basin Water Resource Study with a 50-50 matching. Boomer stated that we would have to partner with SNWA and Washington County and was working on the Notice of Intent for this.
- Engineer’s Report - Erik reported that he really had nothing to report with only a few set of plans having needed to be redlined and he was caught up on District business.
- Public Comment - Duane Magoon questioned where the water irrigating the Lonetti property was coming from. Boomer explained that there is currently 1200 acre-feet at Riverside that has not been certificated, but the application is being processed. SNWA has filed a Report of Conveyance as part of the terms and conditions of the 89 shares given to SNWA from VVWD. All of this has not come before the State Engineer as of yet so until we actually receive the Report of Conveyance and are the certificated owners of the water, the place of use is specifically Meadowland Farms and we cannot move it from that place of use.
- Adjournment - President John Paul adjourned the meeting at 5:59 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - MARCH 3, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on
March 3, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Council, Erik Beyer District Engineer, Michael (Boomer) Johnson Chief Hydrologist, John Gleave District CFO and Mary Johnson taking minutes and other interested parties of agenda items.- President John Paul called the meeting to order at 3:00 p.m.
- Cecil Leavitt offered a Prayer and Kenyon Leavitt led the pledge.
- Public Comment – Mayor Holecheck read a statement regarding the District’s increase in Ordinance II fees and the impact that this could cause for the growth of Mesquite and requested that the Board revisit this item and look at lowering this fee. Quincy Edwards, Ken Philips, George Rapson, Kelby Hughes and Chuck Bentley all offered similar comments to the mayor regarding the Ordinance II fees.
DISCUSSION:
Board Comments – Ted Miller commented that he agreed with everyone regarding
their comments on Ordinance II fees and that the fee was outrageous and that the board should cancel that fund. Bubba Smith stated he had a couple comments and cautioned board members of agreeing and/or disagreeing with public comment. He also would like to direct staff to put that agenda item (Ordinance II Fees) back on for the board’s reconsideration of the action that was done and to get more input from developers and contractors on the impact of the increase of Ordinance II fees at the next regularly scheduled meeting. Secondly, Bubba read a written statement to the public stating he had filed a complaint with the Attorney General’s (AG) office on February 25, 2009. First Bubba wanted it known that the written statement he was reading was of his own opinions and not representation of the VVWD or VVWD Board of Directors. The complaint covers two basic categories. First, he has reason to believe that contracts and agreements have been signed without board approval and without proper procedure according to the By-Laws of the District. Second, he also believes these contracts executed without board approval also violated Open Meeting Law because they were not placed on the agenda for approval, no discussion or action was taken, nor was there a chance for public comment on the item. President of Board Comments - NoneCONSENT AGENDA:
Kenyon Leavitt made a motion to approve the consent agenda as listed below. Cecil
Leavitt seconded this motion and it was unanimously carried. 5-0- Discussion & Action - Approve Agenda
- Discussion & Action – Approve of Minutes from 02/17/09 Regular Board Meeting
- Discussion & Action – Approve Bills Paid - $935,223.11
- Discussion & Action – Approve Purchase Orders Over $2,500
- a. Xtreme Technologies - $3,332.99 – 2 Printers
** End of Consent Agenda**
- a. Xtreme Technologies - $3,332.99 – 2 Printers
- Discussion & Possible Action – Consideration to Approve Engagement Letter from Hinton, Burdick to Perform Annual Audit for Fiscal year Ending June 30, 2009 Hinton, Burdick submitted an engagement letter to perform the District’s annual audit for fiscal year ending June 30, 2009 with the pricing the same as last year’s audit; $14,600 for the annual audit and $3,750 for single audit. Mark Tichnor representing Hinton, Burdick was present to answer any questions. Cecil Leavitt made a motion to approve the engagement letter from Hinton, Burdick to perform the District’s annual audit for fiscal year ending June 30, 2009 for an amount not to exceed $14,500 for the annual audit and $3,750 for the single audit. Bubba Smith seconded this motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Consideration to Authorize Staff to go out for Bids for Well #27 Access Road & Site Preparation. Mike stated that in order for the District to obtain an easement to this parcel from Mr. Lee that preparation was needed because the dirt is too high. Plans were drawn up for what we need which is a 100’ radius with an access road and a small retaining wall. Plans have been approved by the Mesquite Vistas HOA. The District will paint the building and have the landscaping done in house. Cecil questioned whether there was a legal hold on the property and if the District was able to go out to bid with Longview having filed a court action suit against MMC, Inc. George Benesch stated that there was no injunction on this property but on the Hardy Way Arsenic Site.
Cecil Leavitt made a motion to authorize staff to go out for bids for Well #27 access road and site preparation. Ted Miller seconded this motion. John Paul opened the item for public comment and Dave Bundy with Longview Construction who had just walked in asked whether this property had anything to do with his lawsuit and he was informed that his lawsuit only put an injunction on the Hardy Way Arsenic Site not this property in question. Bob Shively representing the Mesquite Vistas HOA questioned the time frame of the project. John Paul called for a vote and the motion was unanimously carried. 5-0
- Discussion & Possible Action – Consideration to Approve Advertisement of Irrigation Water Shares and to Set Time for Said Auction. Mike had submitted a draft advertisement that we would put in the paper on the 64 shares the District has available to lease. Kenyon stated that he thought we should scratch the 5% increase from the previous bid and let the market decide where to go. After discussion, the date was changed from March 24th to March 31st for the auction and payment due by April 1st. Cecil stated that the last line should read “highest” bidder(s) in lieu of “next successful” bidder(s). Kenyon questioned how the auction would work with no one ever being involved in something like this.
Kraig Hafen asked to have the advertisement read aloud and Mike did so. Cecil requested that “Pacific Standard Time” be changed to “Pacific Daylight Savings Time.” Bubba asked for clarification of the number of shares to lease and what about other parameters: 180 days notice for severability, 1st right of refusal, keeping the shares in the valley, no profit and not being able to sublease. Bubba stated that he didn’t know if we were ready to advertise and that the VVWD should come up with our own long term solution and not keep trying to keep up with SNWA. Bubba has a problem with leasing to the highest bidder and not for the best use. Boomer suggested that we could go out for lease for 3 blocks of 10 shares; blocks of 5 and then single shares. It was questioned about the point of diversion and Boomer stated that they are all out of the Mesquite Ditch and in other leases from the District there is a stipulation that the lessee is responsible to file with the State Engineer for place of use.
Bob Coache, Deputy State Engineer, explained that he has been involved in a couple auctions and what they’ve done is start at the minimum bid and work their way up until there is a bid amount to be taken (i.e. $400) and they state that they want so many shares and then you begin again until all the shares are gone. Mr. Coache further stated that if you use the water from the ditches in Mesquite that you would be okay, but if you were to take the water from elsewhere and not the ditches, you could apply for a temporary change application and you could get that done in about two weeks. You would have to file under Mesquite Irrigation.
George stated that the board should set the parameters and maybe table the item until the board set a policy. The board is having a special meeting on March 11, 2009 at 2:00 and the board could set the parameters and revise the advertisement for bid. Kenyon Leavitt made a motion to table this item until the March 11, 2009 Special Meeting at 4:00 p.m. for setting the parameters and approving the advertisement for auction. Ted Miller seconded this motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Consideration to Authorize Staff to Sign a New Purchase Agreement with Bunk Farm, LLC for 8 shares of Bunkerville Irrigation Water Mike reported that staff had done exactly as the board had instructed and the lease terms were changed to a one year lease with Bunk Farm, LLC being given first right of refusal. With the change of terms to a one-year lease in lieu of 5 years, the purchase price was higher totaling $638,089.84.
Bubba Smith stated he would abstain and recuse himself from this item because he feels that this item has not met the requirements of Open Meeting Law and is in violation of the Open Meeting Law. Bubba further stated that this item says nothing regarding a “lease back” to Bunk Farm, LLC. and while it is the opinion of staff and legal council that this is not a lease, but a purchase agreement, he must take opposition to this view because the agreement clearly states that a condition of this sale is that buyer will lease back to seller the irrigation shares. He believes that the public by reading the agenda item would not be aware of the contents of the agreement. John Paul recused Bubba and Bubba left the conference room. Ted Miller stated that since the District was purchasing water shares at SNWA prices of $80,000 plus, and then leasing them back at only $300 per share that we should hear from the citizens.
John Paul opened item for public comment. Duane Magoon with Bunk Farm, LLC stated that he needs to sell the water and wanted to keep it in the valley and would be using the water on his farm and did not intend for anything to be underhanded or under the table, but that contingent to the sale we could lease it back. Trent Graves on behalf of Rick Anderson with Bunk Farm, LLC came to the District to sell the shares contingent upon leasing back the shares and nothing was being done underhanded as portrayed in the newspapers.
Kenyon Leavitt made a motion to authorize staff to sign a new purchase agreement with Bunk Farm, LLC for 8 shares of Bunkerville Irrigation Water for a purchase price of $638,089.84. Cecil Leavitt seconded this motion and it was passed by a vote of 3 to 1 with Ted Miller opposed and Bubba Smith being recused.
- Discussion & Possible Action – Consideration to Approve a Cost of Living Allowance (COLA) for VVWD Employees effective July 1, 2009. Mike stated that this is brought before the board at this time every year along with the evaluations for the next budget session. The consumer price index was included for the board’s consideration with a COL increase of 3.5% for year ending 2008. Mary explained that the employees’ retirement, PERS (Public Employees’ Retirement System) would increase from 20.5% per paycheck to 21.5% per paycheck and the company is required to pay .5% and the employees must cover the other .5%. Any COLA given to the employees would be reduced by .5% to cover their portion on the PERS increase and if no COLA given, the employees’ hourly wage would be reduced by .5%.
Cecil Leavitt made a motion to give no COLA to the employees at this time. Bubba questioned the motion and if the VVWD would cover the .5% so the employees would not lose money on their hourly wage. The motion died for a lack of a second.
Kenyon Leavitt made a motion to approve a cost of living allowance (COLA) of .5% to all employees effective July 1, 2009. Bubba Smith seconded this motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Performance Evaluation of Michael Johnson, Chief Hydrologist, Including, but not Limited to, Renewal of Employment Agreement, Salary Increase, Termination, Suspension, Demotion, Reduction in Pay, Reprimand, Promotion, Endorsement, Engagement, Retention, or ‘No Action’. Cecil asked as a point of question stating that Mr. Johnson and Mr. Winters are not under employment agreements but working under the Administrative Policies and Procedures Manual and feels that items 10 and 11 should be stricken from the agenda and so moved. Bubba Smith seconded the motion. John Paul asked for a legal opinion if we could do both items at once or do them separately. George stated that it would be better to do them separately since they were two
separate items on the agenda.
Cecil Leavitt amended his motion to remove item #10 from the agenda and brought back at the next regular meeting with the correct verbiage on the agenda. Bubba Smith seconded this motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Performance Evaluation of Michael Winters, General Manager, Including, but not Limited to, Renewal of Employment Agreement, Salary Increase, Termination, Suspension, Demotion, Reduction in Pay, Reprimand, Promotion, Endorsement, Engagement, Retention, or ‘No Action’. Cecil Leavitt made a motion to remove item #11 from the agenda and brought back at the next regular scheduled meeting with the correct verbiage on the agenda. Kenyon Leavitt seconded the motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Consideration to Issue a RFQ for VVWD Administration Operations Legal Council – Requested by John Paul. John had included in his e-mail to Mike requesting that this item be put on the agenda stating that “qualifications is to be a licensed attorney in good standing with the State of Nevada. Familiarity with State of Nevada Open Meeting Laws and the VVWD enabling legislation of the Nevada Revised Statute, Chapter 100.” John also had passed out a memo and read aloud “This item is to offer a restructuring of the VVWD. It is designed to see if there is sufficient support amongst other VVWD members to restructure the process of the VVWD; pertaining to presentation of Agenda Items, and to receive legal opinions and advise, on whether or not compliance to all Nevada State Rules and Regulations is met.”
Kenyon questioned items 12 and 13 and didn’t see how they jived with John’s statement. Kenyon thinks that John is saying we want to get new legal counsel, but John Paul stated that he was asking for restructuring of the VVWD and it would be for only qualified people and it would be a separation from our current legal counsel and water laws. This attorney would be to oversee the District on day to day operations and that agenda items are all in compliance with Nevada rules and regulations. Mike stated that if agenda items are not correct that would not be George’s fault but his and we can send agendas to George for approval or to John, if that would correct the problem. Kenyon stated that the District couldn’t afford to give employees a COLA, but then you want to hire a new attorney, which hasn’t been budgeted for and that we should have George approve agendas, etc because that is what we pay him for. Cecil commented that if you had 10 attorneys, you could have 10 different opinions and if we are meeting the laws of the state and feels that we are on solid ground and now is not the time to change.
Bubba commented that he understood that this would be restructuring and we would change the amount we currently pay our legal counsel. Bubba stated
that he personally felt the District was way past the need for restructuring and feels that the District cannot get an unbiased opinion from George and thinks this is a good idea and feels that it is urgent that we act now. Ted Miller commented that he felt it was prudent business practices and agrees that we need a change, but that we should look at during the budget process and that this was the wrong time to address it. Bubba Smith made a motion to issue a RFQ for VVWD Administration Operations Legal Council. Ted Miller seconded the motion and the motion passed by a vote of 3 to 2 with Kenyon Leavitt and Cecil Leavitt opposed.
- Discussion & Possible Action – Consideration to issue a RFP for VVWD Administration Operations Legal Council – Requested by John Paul. John Paul stated that this item also pertained to the same back-up material stated in item #12 and that “duties will be to attend the VVWD board meeting and provide legal opinions and advice on compliance with Nevada Open Meeting Laws, the VVWD enabling legislation of the Nevada Revised Statue, Chapter 100. An all other documents which govern the conducting of business regarding issues brought before the VVWD Board.” Bubba asked for verification that the RFQ was a request for qualifications and the RFP was a request for proposals and pricing. Bubba Smith made a motion to issue a RFP for VVWD Administration Operations Legal Council. Ted Miller seconded the motion. Cecil questioned this item and how vague it seems and Bubba recused himself from item #8, but was willing to make motions on these items that Cecil feels is vague on the agenda. John Paul called for vote and the motion passed by a vote of 3 to 2 with Kenyon Leavitt and Cecil Leavitt opposed.
- General Manager’s Report - Mike had not included a written report. Mike reported that one of our employees, Bryan Plum, was called up to active duty and was shipped to Iraq and while there was involved in a bombing accident and the last we heard he was in the hospital and hopefully would be coming home the end of March. Mike further stated that we had begun working on the budget and that a Notice was published in the Desert Valley Times regarding arsenic violation because the plants were not up and running by January 1, 2009. We should be up and running by May. Don Paff commented that he thought the District should also publish a notice of progress and not just the violation notifications. Ted asked about the 1.3 million dollar grant and Mike informed the board that the grant had been signed and the money was there for the District.
- Hydrologist’s Report - Michael had not included a written report. Boomer stated that he has been working on the EIS report for the Mesquite Airport regarding the NEPA documents and the hydrological impact an airport would have on the system and that these forms were necessary for the City to purchase the property. Boomer also went to the Lincoln County Water District (LCWD) meeting 2/25/09 and one of the items was servicing water to the Toquop Township. They are still working with the VVWD and deciding how best to service water to that area. We should have future discussions between the VVWD and LCWD regarding these issues. Boomer further stated that he was trying to receive the GID for the area, or an audit for expenses spent to the Tule Desert. Boomer also stated that on the 26th of February he issued a letter to Longview Construction rejecting their invoice until the As-Builts and submittals were recorded and filed with the State as required. Also, Boomer informed the board that the District received an official notice of mediation from Southeast Drilling and these documents were forwarded to George, but our contract was with Longview not with Southeast Drilling. Boomer further stated that he has been working with the Salinity Coalition and they are working on removing the salt, the total dissolved solids (TDS), and improving and lowering the TDS in the Virgin River through the Bureau of Reclamation.
- Engineer’s Report - Erik had not included a written report. He stated that his two major functions were checking the development plans as they come in and making sure they are in compliance with the District’s Specs. Erik also works closely with Kevin Amen, District Inspector, regarding materials and methods and that they are in compliance.
- Public Comment
- Adjournment - President John Paul adjourned the meeting at 5:18 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT SPECIAL BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - MARCH 11, 2009Minutes of a Special Board Meeting of the Virgin Valley Water District Board held on March 11, 2009, at the Virgin Valley Water District Office at 2:00 p.m. Attending were President John Paul, and Board Members Ted Miller and Robert “Bubba” Smith. Vice-President Kenyon Leavitt arrived at 3:35 p.m. Secretary-Treasurer Cecil Leavitt was not present. Also present were Michael Winters General Manager, Michael “Boomer” Johnson District Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
- President John Paul called the meeting to order at 3:02 p.m.
- Bubba Smith offered a prayer and Ted Miller led the pledge.
AGENDA:- Discussion & Action - Approve Agenda:
Bubba Smith made a motion to approve the agenda as posted. Ted Miller seconded the motion and it was unanimously carried. 3-0
- Discussion & Possible Action – Approve Minutes from March 3, 2009 Regular Meeting:
Ted Miller made a motion to approve the minutes as written. Bubba Smith seconded the motion and it was unanimously carried. 3-0
- Discussion – No Action – Presentation by Westland Construction, Desert Mesa Construction and Legacy Construction Regarding the Proposals for the CMAR of a New Administration & Operations Facility:
Eric Roberts with SH Architecture introduced Stan Houghton with Westland Construction and turned the presentation over to him. Stan Houghton began with introductions and background information. Stan stated that they had an office in St. George and their corporate office was in Orem, Utah and that they were licensed in several states. Stan informed the board of their bonding capacity; that they carry full general liability insurance and workers comp; that they pride themselves on their good working relationships with their subcontractors; that they have a lot of repeat business; and that they offer a “no mark-up” change order policy. Stan further stated that they have been involved with quite a few “design/build” projects and mentioned projects they have completed. Stan also mentioned that with the economy and pricing, this would be a good time to build. Bubba questioned if they had a pre-qualification for subcontractors and Stan explained how the process worked. Ron Larsen with MESA Consulting Group out of St. George, Utah included background information of their company and working relationship with Westland Construction. Bill McMurrin also with MESA Consulting Group went over the three different sites included within their proposals. Bill explained that they had designed one building according to the specifications from SH Architecture with different variations. He showed the floor plan of the building and the outside look of the building. Todd Houghton with Westland Construction went into more detail and information on each site. Todd stated that the Bunkerville site would require a lot of excavation. Todd stated that Proposal B was the District’s current site and they had proposed two different scenarios. First option is tearing down this building and purchasing the property next to us; and the second option was remodeling this building and scaling down on a new building, but also still purchasing the property next to us. Option one is the only option they included a monetary amount. Todd’s third proposal was a new building in the Mesquite Commerce and Tech Center having the most surface area, approximately 7.5 acres. Todd stated that all options included the cost of the land and that they were comfortable with the costs submitted and that they felt the Bunkerville site was the best economically.
Brad Harold with Desert Mesa Construction was the next presentation. Brad stated that they only had one proposal for an already constructed steel structure building located at 175 Willis Carrier Canyon. Brad informed the board that they were prepared to work terms for the property in that the District could put 1.5 to 1.6 million down and pay off the remainder in 13 months. Brad gave a description of the property and building stating that this did exceed the space in the specifications being a 40,000 square foot building and that he felt the District could be operational with this site within 4 to 6 months. Brad answered questions from the board regarding terms and scaling down the square footage. Eric had questions regarding the interior finishing and the price quoted and Brad stated that he quoted middle grade everything. Eric also questioned change orders, working with the board, and the building meeting 15% energy efficiency, which Brad answered.
Cresent Hardy with Legacy Construction began the last presentation with introductions of his team present today and why the board should choose Legacy Construction for this project. Cresent gave background information of his company stating that they were local and 99% of his employees were also local residents; that they were familiar with the City, County and State processes; they had flexible sites; and that now was a good time with the lowest pricing he’s seen in years and that this would be a stimulus to the community and his reasons why to do it now. Dean Kilmer would be the project manager for Legacy Construction and informed the board of his background information. Dean further stated that he felt that the prices quoted could even go down further. Travis Anderson with Bulloch Brothers Engineering (BBE) stated the strengths of BBE and reasons why the board should go with their plan submitted. Kim Campbell with Campbell & Associates Architects gave a little bit of information about his firm and office buildings they have been involved in. Kim went into the building details, scheduling and building process and references. Eric Roberts asked questions of the interior finishing and scheduling. The private site selected was located on John Deere Drive with approximately 7 acres of land, but that they could choose another site if the board so desired.
- Discussion & Possible Action – Consideration to Establish the Parameters to lease Irrigation Shares Held by the Virgin Valley Water District:
Mike had proposed a lottery type auction in his memorandum to the board in that the board would set a price that they wanted to lease the water shares for and everyone who wanted to lease shares would register with the office prior to the auction date and then their names would be put into a “hat” and names would be drawn. Whomever’s name was drawn would state how many shares they wanted to lease and if there were shares left, names would continue to be drawn until all shares were leased. Kenyon stated that he liked Bob Coache’s idea from the last meeting in that they would be auctioned to the highest bidder and that bidder would state how many shares they wanted to lease and if all shares were not leased you would start over at the beginning bid of $300 and then the next shares would go to the highest bidder. There was discussion as to how Moapa Valley Water District leases their shares. John Paul opened the item to the public. Robert Bunker stated that he would like to see the terms of the lease, and it was stated that this is what this item was to accomplish by setting the parameters. Robert Bunker asked about sub-leasing. It was discussed and that if shares were to be sub-leased, that they would have to come back to the board for written approval. The point of diversion was discussed and Boomer explained that as Bob Coache had stated, the lessee could obtain a one year temporary permit. Anything longer than one year would have to have a permanent permit and this was a long process. Bubba stated that if there were sub-leasing, that it could not be “for profit”. John Paul questioned if sub-leased if water had to be metered and Boomer stated that this would not be the District’s responsibility. The cost to file a change of point of diversion costs $100 and that $2 an acre-foot goes to the Division of Water Resources and the lessee should be responsible for these charges. A temporary change has to be filed by Mesquite Irrigation Company since they are the owner of record, but the District can file as an “agent”. Boomer further stated that one share equals watering one acre parcel and the policing of the ditches is done by the ditch master of the irrigation companies. Bubba questioned a severability clause and first right of refusal. This was discussed and determined that with only one year leasing that they felt there wouldn’t be a problem. It was discussed and stated that the auction would start at $300 per share; sub-leasing would be allowed only with written permission from the board and could not be for profit; the water would not leave the valley; and that there would not be any first right of refusal. Kenyon Leavitt suggested that the board look at the parameters yearly in the motion. Boomer questioned the time frame of when the District acquires more water and bringing to the board to lease and whether we should try to line the leases up all together. Kenyon suggested that we could have 30 days or when the paperwork has been completed after the sale and the District receives the certificate.
Bubba Smith made a motion to approve parameters to lease irrigation shares as follows: The District would allow sub-leasing only after it comes back to the board for approval and it could not be for profit; leases would be for a one-year period; and the water could not leave the Virgin Valley.
Kenyon questioned reviewing the parameters yearly.
Bubba Smith amended his motion to include reviewing the parameters yearly beginning in March 2010. Kenyon Leavitt seconded the motion and the motion passed unanimously. 4-0
- Discussion & Possible Action – Consideration to Establish a Method in Which the District will Lease Irrigation Shares and Create and Approve an Advertisement to Set the Time, Place and Criteria to Lease Said Shares Held by the Virgin Valley Water District:
The advertisement that had been included in the last meeting was again in the packets with the changes made at the last meeting. The parameters set forth in the previous item should also be included in the advertisement. It was questioned who would run the auction and suggested that the chairman of the board do so. Kenyon Leavitt made a motion to use the outline in the packet and add all the parameters for notice of auction. Bubba Smith seconded the motion. Morris Workman questioned the advertisement and where the water has been going since being purchased and he was given a copy of the advertisement and told that the water has just been going down the Virgin River. John Paul called for a vote. The motion passed unanimously. 4-0
- Public Comment:
Morris Workman questioned if the grand jury investigation was still going on since a Metro officer was present and was informed by the board that they had no idea and that he should ask the officer.
- Adjournment:
President John Paul adjourned the meeting at 5:10 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - MARCH 17, 2009
Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on
March 17, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were
President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Council, Michael “Boomer” Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
- President John Paul called the meeting to order at 3:01 p.m.
- Bubba Smith offered a Prayer and Kenyon Leavitt led the pledge.
- Public Comment – There was no public comment at this time.
Discussion: Board Comments – Ted Miller questioned the GM when the last rate increase took effect and when he thought we would have another increase; which Mike stated that our last increase took effect in February of this year and that we would look at it in another year or so and see if we needed to increase because of arsenic.President of Board Comments - None
CONSENT AGENDA:
John Paul questioned payments to Jimmie Hughes and where we made our Lonetti payment and he was informed that was through the 2006 Bond. Kenyon questioned the Hazmat Fees for each arsenic site.
Cecil Leavitt made a motion to approve the consent agenda as listed below. Kenyon
Leavitt seconded this motion and it was unanimously carried. 5-0- Discussion & Action - Approve Agenda
- Discussion & Action – Approve Financial Statement for January 2009
- Discussion & Action – Approve Bills Paid - $830,358.47
- Discussion & Action – Approve Purchase Orders Over $2,500
a. State Fire Marshall - $13,900.00 – Hazmat Permitting Storage Fees
** End of Consent Agenda**
- Discussion & Possible Action – Consideration to Repeal and/or Make Adjustments to What the District will Assess as Ordinance II Fees for New Construction
John Paul began by disclosing that he has a family trust that he is the surviving
beneficiary and that this trust has positions in Pulte. Mike Winters stated that it was up to the board to decide if they wanted to continue to purchase water. Mike informed the board again that when Dixie Leavitt sold water shares to SNWA for $3,300 per acre-foot that the District increased their Ordinance II fees from $912 to $3,300 or the fair market value and that did not stop growth. Mike further stated that many developers pre-paid Ordinance II fees for $912 an acre-foot before the increase took effect and that these prepaid fees have not been constructed as of yet. Mike further explained that the Ordinance II account was a restricted account and could not be used for operation and maintenance, salaries or capital improvement projects, etc. It is to be used to purchase water and we must also pay the 2006 Bond and Jimmie Hughes monthly and must meet this obligation.
Cecil commented that the Ordinance II fee was charged in lieu of the developer bringing water. If the developers don’t want to pay the fee then bring the water and they will be paying that much to obtain the water. The District cannot buy water any cheaper than that price and knows that this is a large amount of money, but growth should pay for itself.
Mike stated that when the District first put Ordinance II together, we were requiring that the developer bring the water, but the people who held the shares felt that we were forcing them to sell and then the board at that time decided they could bring money in lieu of water. Mike further informed the board that the City of Mesquite has adopted the UPC and if a home meets a
certain fixture count, that home must upgrade to a 1” meter in lieu of a ¾” meter making them go from 1 EDU to 2 EDU’s.
George stated that when the money came in that there was no groundwater to purchase and the surface water was sold in shares and not by EDU’s and it was unfair for someone building one home to purchase an entire share to dedicate 1 EDU to the District for Ordinance II. George further advised the board to look at Ordinance II because this was a major policy and if they amended anything this would affect Ordinance II.
Bubba agreed with George and stated that the District needed to review Ordinance II and that the board would probably need a couple months to decide on what they wanted to do. Bubba also questioned the EDU and what actual amount of water is being used; ground water vs. surface water; the deal with SNWA; and that we don’t blend or can we afford to use surface for culinary and that we don’t want to get to the point where we price developers out of business.
John Paul stated that if they did take the Ordinance II fee back to the $3,300 that he wasn’t sure that they would want to leave it at that amount and when we review Ordinance II that this may change again. John further questioned if we could look at one (1) EDU for a residence even if they meet a certain fixture count and need to move up to a 1”, but keep it only at one EDU. Mike stated that the State Engineer requires one-acre foot of water per residential
home.
Mike further stated that the groundwater permits are decided by the State Engineer and the USGS and they will decide whether the District will be given more water permitted in the basin. Mike stated that growth will depend on the City and the County and we also need to look at our neighbors to the north for the Lincoln County Land Act and that we are in the water business and need water for future growth. John Paul questioned the cost to treat the surface water. Kenyon stated that we purchased groundwater from Lonetti for $15,000 an a/f and we are purchasing and charging $8,700 a/f so the developers are getting a deal. Kenyon further stated that growth pays for itself and how can they ask us to reduce our fee when that is what we are buying it for. Cecil commented that growth should pay for itself and if the developer can bring in water cheaper, then they should bring the water. Ted Miller stated that the country was in a severe economic downturn and hard to pay these fees and feels that we should roll back the fee before it was increased to $8,700. Bubba had questions regarding the USGS and the State Engineer and Boomer explained the process and how it works to prove that there is more water
available than permitted.
John Paul opened the item to the public. Morris Workman questioned the applications for groundwater and EDU’s. Robert Bunker stated that if people are forced to sell their water and the District will not purchase at the current market value, the water will leave the valley and people will sell elsewhere to get the most money. Quincy Edwards questioned if a feasibility study had been done. Cecil stated that we should work with other entities and doesn’t want
growth to stop, but growth needs to pay for itself and we should have a workshop. Bubba questioned that since this was an Ordinance and if we changed something wouldn’t this need to come back to the board? George stated that the way the agenda was structured that the board could repeal or amend the amount charged, but that will have real inconsistencies within the
actual Ordinance since you are not charging the fair market value and that the ordinance would need to come back before the board for amendment.
Bubba Smith made a motion to set the price for Ordinance II fees at $3,300 and then any other recommendations that staff may have. Ted Miller seconded this motion. Bubba stated that we would need to revisit this and just when it was convenient, but with no date certain. John Paul questioned motion and asked if this meant from this date forward. Bubba Smith amended his motion to include the price of $3,300 was to be charged from this date forward. Ted Miller seconded this motion and it was passed by a vote of 3-2 with Cecil Leavitt and Kenyon Leavitt opposed.
- Discussion & Possible Action – Consideration to Select a Contractor and Site to Construct a New Administration and Operations Facility
Mike began by stating that the board had heard presentations from three contractors at the March 11, 2009 special meeting and since that meeting, with the new stimulus package, that the District will receive close to another $4 million for arsenic from the ACOE. The District also received an additional 1.3 million from the State. With these additional grants Mike feels that we have the money in the bond and can afford to construct the facility and that this is the time to do it.
John Paul stated that we could apply the extra bond money to the 2006 Bond and Mike cautioned that if we do use bond money to pay debt and then try to build later, the interest rate would not be as cheap as it is now. Ted feels that we can use the bond money to reduce debt and the financial statement doesn’t justify it. John Paul thinks that we should move the maintenance and equipment to the Bunkerville site. John opened to the public and there was no comment at this time. John further questioned if there were any limits or time frame when we could bring this back. Kenyon stated that he understands that we need more space, but finds it hard to bite off four to five million when we can pay bond off. Bubba stated that this was a tough decision and it was tempting to construct now with the prices so low, but feels that it is not prudent to do so now. Barry Zeller questioned the timing and the economy from when the board started this process and that the contractors spent a lot of money and time on the project and questioned why the board sent them down this road and it was unfair. Dean Kilmer thought the board was going to choose a contractor and Brad Harold had questions regarding the grant money. Morris Workman asked if the money was in the bank and if so wouldn’t you just be paying debt with debt and you would still have to make payments on the bond whether you built a building or not. Larry Swenson wanted to point out to the board that they could build a building and pay off debt since the building
costs were under half of what the District bonded for.
The item died for a lack of a motion.
- Discussion & Possible Action – Consideration to Appoint the Board Chairman or a Designated Person to Vote Mesquite and Bunkerville Irrigation Shares at Their Annual Meetings
John Paul stated that he had no objection to attending and being the designated person to vote the District’s irrigation shares at the annual meetings.
Bubba Smith made a motion to appoint the Board Chairman, John Paul, to vote the District’s Mesquite and Bunkerville Irrigation Shares at their annual meetings. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Performance Evaluation of Michael Johnson, Chief Hydrologist, Including, but not Limited to, Salary Increase, Termination, Suspension, Demotion, Reduction in Pay, Reprimand, Promotion, Endorsement, Engagement, Retention, or ‘No Action’
Boomer stated that as far as activities this year that the District had acquired more water this year than in any other and that there have been no major issues. Ted questioned the expense in January 2008 for $210,000 in hydrology. It was explained that we received $210,000 from SNWA for money spent on Half-Way Wash, but that we did not budge the expense side of that even though it was reimbursed from SNWA. Ted further stated that he felt they should receive only what the employees were given. Kenyon Leavitt asked about the Ranney collector, where we were at and what the next year’s prognosis looked like with hydrology. Boomer stated that the project was still
called “Half-Way Wash” even though it was at “Riverside” now and this would happen this fall and he is working with the Bureau of Reclamation for grant money. Boomer further stated that the HMMP should be completed and approved within the next couple months and that we will drill well
#34, but with growth at a standstill we won’t have to equip the well right away. Boomer also stated that he was working on a recharge program and finalizing the groundwater module.
Kenyon Leavitt made a motion to retain Michael Johnson for another year with a .5%increase. Ted Miller seconded this motion and it was unanimously carried. 5-0
- Discussion & Possible Action – Performance Evaluation of Michael Winters, General Manager, Including, but not Limited to, Salary Increase, Termination, Suspension, Demotion, Reduction in Pay, Reprimand, Promotion, Endorsement, Engagement, Retention, or ‘No Action’
Mike stated that he felt that he and staff had done a good job this past year. He mentioned the purchase of the water, arsenic and having less than 1.5% in change orders on this project, and the millions of dollars he brought in from grants for arsenic. Mike further stated that there were other projects on the horizon that would keep rates the same if not lower them and that he could do a better job, but feels he has come a long way since his last evaluation and that he enjoys working for the District and would like to continue doing so.
Ted questioned the budget and why the repairs and maintenance expenses were so high. Mike explained that line breaks cannot be budgeted for and if a line breaks you have to repair. Ted stated that overall expenses were up 2% and felt that was pretty good. Another red flag was our “other income” and Ted stated to keep a sharp eye on it. Mike stated that we were looking at
expenses and that we were not boring under the freeway because of the economy.
John Paul stated that Mike needed to apply more diligently to work in office and administration, but had no problem with his job regarding water delivery. John thought Mike needed to work on his management skills in policy and procedures.
Cecil commented that this evaluation was for Mike’s performance in the last year and that he has been impressed with the way things have been handled. He knows that there has been some questions regarding some water purchases, but felt that Mike did exactly what he was instructed to
do. Cecil further stated that his allegiance to Mike is because he feels that he does a good job and would recommend that he be retained.
Kenyon Leavitt stated that it was important to show that the District is doing more for less especially with manpower and that all of us have room for improvement. He also said that Mike’s job was difficult with five board members and all wanting different things.
Boomer commented that Mike was a pivotal player in teamwork from what he has seen from 1992 to today.
Kenyon Leavitt made a motion to retain Michael Winters for an additional year and to give him a .5% increase. Ted Miller seconded the motion and it passed by a vote of 4 to 1 with Bubba Smith opposed.
- General Manager’s Report
Mike had not included a written report. Mike informed the board that four out of the five arsenic treatment facilities have a start-up date of April 6, 2009. Mike further stated that he had received an e-mail from Jori and complaints have been served on Vanguard Pipe. Ted asked about revisiting this issue because he had heard that it was a no win situation and didn’t think the District
should be spending money on this. Mike stated that he would have Jori come up to talk to the board. Mike also stated that we are getting ready for budget session.
- Hydrologist’s Report
Michael had not included a written report. He informed the board that the Aqua Guard CO2 injection occurred last week without complications. Boomer stated that in upcoming events, Lincoln County representatives would be present April 2, 2009 in Mesquite regarding servicing the Lincoln County Land Act. On April 3, 2009 there is an Upper Basin/Lower Basin meeting in St. George and Boomer will be speaking giving water quality presentation for the Virgin River Nevada perspective as well as an upcoming AWWA presentation on well #30.
- Engineer’s Report
Erik had not included a written report nor was he present.
- Public Comment
Tim Hacker, City Manager, stated that he was gratified to hear Boomer speak about the Mitigation Plan and that he is looking forward to those documents coming back for finalization. Sandra Raymaker stated that she was a little disappointed in some of the action she saw today with the board and the items regarding choosing a contractor and rolling back the Ordinance II fees when every member of the board unanimously voted to increase the fees to what the District was paying for water shares. Bob Draskovich stated that he was sorry he was late for the meeting, but feels that developers should bring the water to the District in order to build.
- Adjournment
President John Paul adjourned the meeting at 5:30 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - APRIL 7, 2009
Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on
April 7, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Member Robert “Bubba” Smith. Board Member Ted Miller was not present. Also present were Michael Winters General Manager, George Benesch District Council, Erik Beyer District Engineer and Mary Johnson taking minutes and other interested parties of agenda items.
- President John Paul called the meeting to order at 3:00 p.m.
- Bubba Smith offered a Prayer and Kenyon Leavitt led the pledge.
- Public Comment – There was no public comment at this time.
- Discussion: Board Comments - None
- President of Board Comments - None
CONSENT AGENDA:
John Paul stated that District Council had suggested that item “9” be heard before item “8”. Bubba Smith made a motion to approve the consent agenda as listed below with the change to the agenda of hearing item 9 before item 8. Cecil Leavitt seconded this motion and it was unanimously carried. 4-0
- Discussion & Action - Approve Agenda – Item 9 to be heard before item 8
- Discussion & Action – Approve Minutes from 3/11/09 Special Board Meeting
- Discussion & Action – Approve Minutes from 3/17/09 Regular Board Meeting
- Discussion & Action – Approve Bills Paid - $1,339,335.79
- Discussion & Action – Approve Purchase Orders Over $2,500
- Nickerson Company, Inc. - $19,959.00 – Aurora 411 – 6x8x20 Split Ease Pump 250 HP Motor and Coupler for Well #33
- Wonderware West - $12,658.00 – Upgrade SCADA System
- Lincoln County - $30,981.80 – Out of County Transfer fees for Permit
Numbers 67729 & 67730
** End of Consent Agenda**
- Discussion & Possible Action – Consideration to Waive all VVWD Fees for Mesquite Veterans Center – Requested by the Vietnam Veterans of America, Mesquite Chapter 993, Dale Hoyt
Mike stated that Mr. Hoyt’s letter was based on the Ordinance II fees set at $8,700 per EDU and that has since been changed back to $3,300 per EDU so the actual cost would be $5,770 for a ¾” meter hook-up in lieu of the stated amount of $11,400. John Paul stated that the Mesquite Vets Center is worthy to support and would be built by donations and grants. Bubba stated that the City has provided the land for this project with motivation to create a place so they wouldn’t have to travel. Kenyon asked who would be next and was not certain if we want to set precedence of waiving fees regardless that it is a good cause. Also, someone has to pick up that $5,770 and that would be the rate payers and the District has not budgeted for this. Bubba further stated that the City had set up some parameters for the Vets to meet and that they were not just getting everything for free, but he did not bring those parameters with him and was not sure what all they were. Cecil thought at one time he had spoken with Dale Hoyt and they have donations coming in and partial commitments for the construction of the building and monthly bills. George stated that Kenyon had a valid point and maybe not act on this item today but bring back to the board for a policy for waiving fees. Kenyon stated that policy has always been “no waiving of fees” and questioned whether we could defer costs by the Vets making payments in lieu of payment all at once.
Dale Hoyt arrived at 3:15 and stated that the Vets wanted to open a Veteran’s Center that would be located off Hafen Lane, and that there is no other Vets service organization within 100 miles of Mesquite with the closest being in Las Vegas. Dale further stated that the money for the facility would be coming from grants and loans like the VA and USDA and that the hook-up fees were extra and that they cannot afford and it could mean that these fees may eliminate getting a Vet’s Center. Dale also mentioned that they are involving other organizations as the VFW and the American Legion and all their efforts are strictly on a volunteer basis. Mike asked who would own the building and was informed that the Vet’s would. Kenyon informed Mr. Hoyt of his previous concerns and his hesitancy of waiving all fees, but that costs could possibly be
deferred and paid over time. Mr. Hoyt stated that this organization was a 501C3. George Benesch called for a point of order stating that the agenda states waiving “all fees”. John Paul questioned if this could be put on another agenda with different options.
Cecil Leavitt made a motion to table this item until the next regular scheduled
meeting and that we place on that agenda item the parameters of contribution expressed to establish our policy; also then to declare whether this is an acceptable policy that this will fit within the parameters that we establish and then vote on it at that time.
There was further discussion on the wording of the agenda item to make sure it was broad enough to include different parameters. John Paul stopped the discussion stating that there was a motion on the table with no second.
Kenyon Leavitt seconded this motion.
George asked by point of discussion if the board wanted to include in the motion parameters and alternatives because there might be alternatives outside the parameters if we limit waiving these kind of fees. George further stated that an alternative may include splitting the difference of these fees.
Cecil Leavitt amended his motion to include alternatives outside the parameters.
Kenyon Leavitt seconded the amendment. John Paul called for a vote on the motion and amended motion and they were unanimously carried. 4-0
- Discussion & Possible Action – Consideration to Award Contract and Notice to Proceed for Well #27 Access Road and Site Preparation to the Lowest Responsible Bidder in the Best Interest of the Virgin Valley Water District
Mike stated that bids were opened on March 30th with Longview Construction coming in with the low bid of $50,213.20. Mike further stated that this project will allow equipment on the property in case we needed to work on the well. Bubba questioned this company and history of the low bid and then coming in with change orders. Mike stated that this contractor was used on the
Directional Drilling at the Bunkerville Bridge and they did come in with a large change order, but that the engineers have reviewed these bids and Longview submitted all the correct paperwork with their bid and if there were a change order it would have to come before the board. John Paul stated that he was quite gun shy of this company but was inclined to give them a second chance or last chance. Kenyon stated that he was pretty much of the same opinion but willing to give another chance, but if they come in with another change order he would not vote to approve Longview for another project.
Cecil Leavitt made a motion to award contract and Notice to Proceed for Well #27 Access Road and Site Preparation to Longview Construction in the amount not to exceed $50,213.20. Bubba Smith seconded this motion and it was unanimously carried. 4-0
- Discussion & Possible Action – Consideration to Authorize Staff to Prepare Specifications and Bid Documents for the Drilling and Development of VVWD Well No. 34
Boomer is not present due to speaking at the AWWA Conference in San Jose. Mike stated that well 34 would be used in case something happened to well #33 that pumps 2,200 gpm. We’re hoping that we would have no problems, but just in case. Boomer had included memos for this item and item 8 stating that the water right permit has been obtained from the Nevada Division of Water Resources and that the right-of-way grant for the well site has been obtained from the BLM Ely Field Office. Boomer further stated in his memos that well #34 will be located on a 4-acre site, approximately 0.95 miles north of the existing VVWD Well No. 32 site in Lincoln County. The well will provide additional back up for filling the 6 million gallon storage tanks needed to support the distribution system for peak summer demand. There will be a mandatory pre-bid conducted so that all contractors are aware of existing conditions prior to the bid opening. The contractor must be a licensed Nevada contractor capable of completing a minimum of 51% of the required work to be
awarded the drilling contract. Upon opening of the contract, the recommendation to award the contract will be brought back to the VVWD Board for execution of the contract documents.
Kenyon Leavitt made a motion to authorize staff to prepare specifications and bid documents for the drilling and development of VVWD Well No. 34. Bubba Smith seconded this motion and it was unanimously carried. 4-0
- Discussion & Possible Action – Consideration to Authorize Staff to Obtain Bids for Site Preparation Associated with the Drilling and Development of VVWD Well No. 34
Mike informed the board, along with the memo Boomer had attached, that we will need to be able to get to the site and that there is only a 4-wheeler trail right now.
Bubba Smith made a motion to authorize staff to obtain bids for site preparation associated with the drilling and development of VVWD Well No. 34. Kenyon Leavitt seconded this motion and it was unanimously carried. 4-0
- General Manager’s Report
Mike had not included a written report. Mike informed the board that the arsenic plants were nearing completion and that site #28 should be on-line April 23rd with site #29 a couple days later and that by the end of April, all four arsenic treatment plants should be running. Mike also stated that we were planning an “open house” and dedication when the plants start up. Mike further informed the board that he had received a telephone call this morning from
Clark County Health and they informed him that someone is dying of arsenic poisoning in Mesquite. The Clark County Health Department will be speaking with this customer. George mentioned that we have had conversations with EPA regarding our violation of arsenic and being fined, but we are ahead of schedule for this to happen.
- Hydrologist’s Report
Michael had not included a written report nor was he present due to speaking at the AWWA Conference in San Jose on developing wells.
- Engineer’s Report
Erik had not included a written report. He informed the board that he was impressed with Kevin Amen, District Inspector, and that Kevin was very conscientious out in the field. Erik also mentioned conservation since it was that time again and that he had reviewed the District’s first three months of water usage and that we are still down in the low acre-foot per unit; using only half of that. Erik further stated that the State keeps a close watch of water conservation.
- Public Comment
There was no public comment at this time.
- Adjournment
President John Paul adjourned the meeting at 3:59 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT
BOARD OF DIRECTORS
BUDGET WORK SESSION
VIRGIN VALLEY WATER DISTRICT OFFICE - APRIL 7, 2009Minutes of a Budget Work Session of the Virgin Valley Water District Board held on April 7, 2009, at the Virgin Valley Water District Office at 1:00 p.m. Attending were President John Paul, Secretary-Treasurer Cecil Leavitt, Vice-President Kenyon Leavitt and Board Member Robert “Bubba” Smith. Board Member Ted Miller was not present. Also present were Michael Winters General Manager, George Benesch District Council, John Gleave District CFO and Mary Johnson taking minutes.
President John Paul called the meeting to order at 1:00 p.m.
Mike Winters stated that in the past we have gone through the budget item by item. If this is how the board wanted to proceed we could do this or if the board had certain questions that these could be answered as asked. Mike began by reviewing the budget summary.
John Paul asked quite a few questions on certain items contained within the budget and was given satisfactory answers.
Mike stated that he had included money for a new building since several of the contractors had contacted him with their concerns that no action was taken on this item when it was on the agenda and would like the board to vote that no action or building would occur or to pick a contractor and have the board work with them in maybe getting a smaller building at a lower price. It was decided that this would be put back on a future agenda for discussion and action.
Kenyon questioned that no new employee was budgeted for and with arsenic coming on that we may decide that we will require more help. It was decided to add an additional full-time employee to the budget and also one more part-time employee to the budget.
Mary mentioned that the board had requested, at a meeting in November, that the VVWD budget for sponsorships or contributions to the community. It was discussed how the City handles this and it was decided to add $5,000 to the budget for this matter. The District will let the public know that it has this amount of money to contribute and persons and/or organizations can send application to the District for their desire to obtain funds and the Board will decide where they would like the money budgeted to go.
John Gleave went over revenues projected and his thoughts on the budget.
President John Paul closed the meeting at 2:08 p.m.
The April 7, 2009 VVWD Budget Work Session Board Meeting Minutes are available for download.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - APRIL 21, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on
April 21, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Counsel, Michael (Boomer) Johnson Chief Hydrologist, John Gleave District CFO and Mary Johnson taking minutes and other interested parties of agenda items.President John Paul called the meeting to order at 3:01 p.m.
Cecil Leavitt offered a Prayer and Kenyon Leavitt led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments – Bubba mentioned the meeting held with a couple of the District’s Board Members and staff with Lincoln County Representatives and wondered if there was going to be any report given on that meeting. Mike Winters stated that as part of his report he was going to update the board.
President of Board Comments – John Paul stated that he would like to apologize for missing the April 20th meeting of the Mesquite Irrigation Company at 2:00 and thanked Boomer for attending.
CONSENT AGENDA:
Bubba Smith made a motion to approve the consent agenda as listed below. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
1. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve of Minutes from 04/7/08 Budget Work Session &
Regular Board Meeting3. Discussion & Action – Approve Bills Paid - $690,579.37
** End of Consent Agenda**
4. Discussion & Possible Action – Consideration to Waive Any or All Fees and/or Defer
Payment of Any Said Fees Over a Period of Time for Mesquite Veterans Center –
Requested by the Vietnam Veterans of America, Mesquite Chapter 993, Dale HoytJohn Paul stated that before we got started on this item that he had sort of constructed this item, but it was not how he thought it was going to appear. He had forwarded his recommendation as a direction to be listed on the agenda and his first item was to establish a policy regarding waiving fees and the second item was the request of the Veterans of America Mesquite Chapter 993 and that he was disappointed that we were not here to establish a policy and would like to know why it was put on the agenda this way. Mike Winters stated that he had reviewed what the chairman had submitted and that it didn’t make sense to him. Mike further stated that the policy of the District is that we do not waive fees; the Vets are asking for fees to be waived and not asking for a charitable donation so this is why it was constructed as it was. Mike then stated that the policy for contributions will be at our first meeting in May, but to waive fees must be done on a case by case basis and he will have information to set policy on this at this next meeting. John Paul then questioned why the District’s current policy was not included in the back-up where we do not waive fees and feels that this is not ready to be considered today without setting a policy first.
Kenyon Leavitt questioned the chairman as to why we need a policy waiving fees if we are in the business of selling of water. Bubba then questioned that if the District already has a policy in place and that we do not waive fees, where was this policy? Bubba further stated that if the Board would ever consider waiving fees that there needs to be criteria that the board would base hearing each case on. Kenyon stated that paying over a period of time is not waiving the fees, but giving them more time to pay the fees. Cecil asked the board to look at the minutes that were approved and read the motion and the amended motion and that the item was not presented on the agenda as stated in his motion to have parameters of contribution expressed to establish policy. Cecil further stated that item #4 on the agenda should be as it was presented at our last meeting with a policy needing to be established and the item for the Vets would be an entirely different item.
Cecil Leavitt made a motion to table this item until we have the parameters set and have the policy there that we can establish if there is going to be a change on the policy, what it is and what the parameters would be and then move forward and the number one item after that would be the Veteran’s request.
Bubba stated that he agreed with Board member Cecil Leavitt’s comments and that we do need to move forward and hopefully that this is still broad enough that we discuss parameters, making changes we want to make; whatever staff provides us, it doesn’t have to be set in stone so don’t be afraid of providing whatever you have but make the agenda item broad enough that we can discuss and maybe set different parameters, etc and need to establish a policy.
With that Bubba Smith seconded this motion and it was unanimously carried. 5-0
After motion passed Mike Winters asked for clarification and asked chairman, John Paul if he was going to write the parameters and submit them to Mary and John Paul concurred that he would be happy to do so. Also, a member of the Veteran’s group brought forward some materials for Mr. Paul who will be writing the parameters that regard ordinances that do waive fees to non-profit organizations under similar situations.
5. Discussion & Possible Action – Consideration to Select a Contractor to Negotiate the Construction of a New Administration and Maintenance Facility to be Constructed in Either Mesquite and/or Bunkerville
Mike Winters stated that after the last time this item had been heard, Mike heard from the contractors wanting to know if there was a “yes” or “no” and want to know one way or the other if the board was going to build. John Paul read the agenda item aloud. Mike further stated that when we first began this project that we were looking to build out for the next 25 years and maybe we should just build out for the next 10 years and not make the building so large.
Kenyon commented that he had found out some information that he did not know before about taking the bond money and paying it off or down. He has learned that there is not much savings in that and we would still have to pay the interest on the bonds whether we pay off today or twenty years from now. John Gleave explained how the process would work if you tried to pay down the bond and that you could not prepay. John Paul stated that he thought we should bring the bond representatives back and wondered if it would change our rating. Bubba asked about the SRF Loan, which is the 2003 Bond for $4 million. George asked the chairman to bring the discussion back within the agenda item. Bubba stated that we did not go forward with this item the last time because of the economic downturn and that we need to be able to discuss financing etc. for this project. Ted stated that before we could do anything that we needed to finish up with arsenic. Cecil Leavitt stated that the agenda item is to consider the selection of a contractor and not to build a building right now. Mike Winters questioned agenda items and whether they are too broad or not broad enough. Kenyon stated that he was sick of this item coming back and back. George stated that the way the agenda item reads the board can either select a contractor or kill it. Kenyon stated that he had a problem just killing the item because we have already incurred the debt with the 2008 bond and we have to pay it back so we need to determine whether we are going to get something out of the money or just pay it back.
John Paul opened the item for public comment and Larry Swensen stated that the board should pick a contractor according to the agenda item and that you could discuss at a later date the site and building and how you want it.
Kenyon Leavitt questioned what staff’s recommendation is for a contractor and Mike stated he has not recommended a contractor and will not, because it would be perceived as preferential treatment.
Item “5” died for a lack of a motion.
Kenyon stated that somehow the board needed to decide on what we are going to do, but we need to be able to discuss all options, not just the building, but with the bond money and what other options we have with the money. Bubba further stated that this item needs to have public input and discussed further with all available options and suggested that a workshop forum be held with representatives from the bond, our CFO/financial advisers where we can analyze our income to debt ratio; how can we eliminate debt, etc. and directed staff to have a workshop where we can all discuss different items and parameters.
6. Discussion & Possible Action – Consideration to Issue Request for Proposal for Professional Services by the Virgin Valley Water District to Develop an Artificial Recharge Feasibility Study to Utilize Virgin River Surface Water
Boomer informed the board that the District had previously entered into an agreement with SNWA regarding acquisition and use of Virgin River water within the lower Virgin River Hydrographic Basin 222. This agreement allowed SNWA to purchase Virgin River water rights from Bunkerville and Mesquite Irrigation Companies with a priority date of pre-1929. In exchange, the VVWD received 5,000 acre feet of 1989 priority permitted surface water issued to SNWA in 1994. This surface water is seasonal from October 1 through May 30 of each year and is currently unused. One option available to the VVWD is to evaluate the potential of artificial recharge into the groundwater aquifer and store the unused permitted water underground to minimize evaporative loss. The recharged water can then be recovered at a later date. Artificial recharge programs of this type have been conducted in the southwestern United States since the 1960’ and many issues associated with the artificial recharge need to be evaluated to determine the feasibility of the potential project. The District budgeted $50,000 under the current budget ending 6/30/09 for professional services with the USGS. This RFP is to develop an artificial recharge feasibility study for banking surface water associated with the Virgin River for future use for review by the Board of Directors. Upon review of the RFP and selection of the firm for conducting the feasibility study the approval of the agreement will be brought back to the Board of Directors for approval.
Kenyon Leavitt stated that this might be one of the areas that we may want to use our bond money on. Bubba questioned if $50,000 was enough to get the study completed and Boomer stated that this would just initiate the project and there would be more phases to this project and that it could be years before completed. Bubba questioned if this would be part of the District’s Master Plan and Mike Chandler with Bowen & Collins stated that they were about ready to report on the plan and this would work in conjunction with the District’s Master Plan. Kenyon asked and was informed that we did budget another $50,000 for fiscal year ending 6/30/10.
Kenyon Leavitt made a motion to issue a Request for Proposal for professional services by the Virgin Valley Water District to Develop an Artificial Recharge Feasibility Study to utilize Virgin River surface water. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0
7. Discussion & Possible Action – Consideration to Authorize the General Manager to Execute the Amendment to the Purchase Agreement for 5 Acres of Land Adjacent to the Virgin River on Clark County Assessor Parcel 034-00-001-013 Owned by Virgin River 140, LLC for Installation of a Ranney Collector Well
Boomer informed the Board that on May 15, 2008 the VVWD Board of Directors approved the purchase of 5 acres of land adjacent to the Virgin River downstream of the Riverside Bridge owned by the Virgin River 140, LLC in the amount not to exceed $236,000. The purchase agreement effective date was 8/1/08 and was fully executed on 8/4/08. The District opened an the plate map as part of the parceling process associated with Clark County. Initially the purchase of the property was anticipated to close within 90 days of execution, but because of the approval process and the addition of a drainage study as required of the parceling process, the closing deadline was not obtained. Under the amendment, the closing date is extended to May 15, 2009 and in the event that the closing date is not met, an extension to September 30, 2009 is included as a provision in the amendment. The original purchase price of $236,000 remains unchanged under the terms of the amendment to the purchase agreement.
Kenyon Leavitt made a motion authorizing the General Manager to execute the amendment to the purchase agreement for 5 acres of land adjacent to the Virgin River on Clark County Assessor Parcel 034-00-001-013 owned by Virgin River 140, LLC for installation of a Ranney Collector Well. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0
8. General Manager’s Report
Mike had not included a written report. Mike informed the board that he, Boomer, Ted Miller and John Paul had met with representatives of the Lincoln County Water District (LCWD) to discuss generalities of servicing the Lincoln County Land Act (LCLA) and that the LCWD General Manager, Wade Poulsen was present. Mike further stated that this would be put on the agenda for the first meeting in May to discuss if the VVWD would be interested in helping the LCLA, the years you would be willing to assist; and if you’d want to include wastewater. The LCWD sent out an RFP for a private developer to service culinary water and the wastewater. The LCWD would like the VVWD to come to their 7/15 meeting and discuss if and how they would like to assist the LCLA. It was questioned why the District would want to get involved with wastewater when we do not currently handle this and the City does. City Manager Tim Hacker spoke stating that since he has been with the City for the past 3 years they have met with Lincoln County quite often with the occurrence of meetings having slowed due to the failing economy; but that they have had discussions regarding sewer and emergency services, etc. Tim further stated that the City is being cautious as they proceed and they will not do anything at the expense of the Mesquite taxpayers. Wade Poulsen stated that he was the newly appointed General Manager of the LCWD having served as a Lincoln County Commissioner for four years prior to becoming the GM. Wade stated that the LCWD has no money or growth to get the LCLA up and running. They have no water rates nor do they have any customers. They do have some groundwater and are trying to develop that. There are three other water companies in Lincoln County (Alamo, Panaca and Pioche), but none part of the LCWD. Wade explained what they were trying to do to decide on what direction they need to go. Mike Winters stated that he would like to have a workshop with Lincoln County at 2:00 before the next regularly scheduled meeting.
Mike continued stating that the work on the arsenic treatment plants was coming along and that four of the plants would be completed by May and that the Hardy Way site was going very well and that there has been less than 1.5% in change orders. Mike Chandler stated that well #28 site was running and removing arsenic. It would run for seven days-24 hours per day and that after the seven day test VVWD would take over. They are planning on starting Well #29 site on Thursday and Well #31 and #32 sites would start next week.
9. Hydrologist’s Report
Michael had not included a written report. He informed the board that he attended a conference in Santa Clara and gave a presentation on well #30. He also stated that he has been working on the contract specs for well #34 and the RFP on today’s agenda. Boomer further stated that there was an issue with well #31 in that the upper bearing is going out and that we will pull the motor one night and have repaired and back in service a day later.
10. Engineer’s Report Erik had not included a written report nor was he present.
11. Public Comment
There was no public comment at this time.
12. Adjournment
President John Paul adjourned the meeting at 4:53 p.m.
The April 21, 2009 VVWD Board Meeting Minutes are available for download.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - MAY 5, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on May 5, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Counsel, Erik Beyer District Engineer, Michael “Boomer” Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:10 p.m.
Bubba Smith offered a Prayer and Cecil Leavitt led the pledge.
Public Comment – Sandra Raymaker commented on the workshop to be held and the minutes stating it would be for a “new” operations facility.Discussion: Board Comments – Bubba commented that he had read an article in the Review Journal regarding SNWA contemplating raising their rates because of less housing and thought it was a good article, but he forgot to bring copies for the other board members. Bubba further stated that Kenyon Leavitt had made a comment in an earlier meeting regarding the District’s lease agreement with Legacy Construction leasing 188 irrigation shares and that agreement coming up August 1, 2009 and that we should communicate with them sooner than later.
Ted Miller commented on the District’s income and wondered about having a workshop after this fiscal year end to see if we need to do something else because of the economy and Bubba stated that we should have quarterly updates.
President of Board Comments - None
CONSENT AGENDA:
John Paul wanted to pull the minutes, item 2, and also items 5 and 6 to handle separately.
Bubba Smith made a motion to approve the consent agenda as listed below with items 2, 5 and 6 being pulled and handled separately. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
1. Discussion & Action - Approve Agenda
3. Discussion & Action – Approve Financial Statement for February 2009
4. Discussion & Action – Approve Bills Paid - $1,275,628.92
** End of Consent Agenda**
2. Discussion & Action – Approve Minutes from 4/21/09 Regular Meeting
John Paul requested that the last line in the second paragraph on page 2 where it states “Mike apologized to the Board and the Vets, but thought that John Paul was going to send parameters for a policy, but nothing was ever received,” be stricken or corrected since he didn’t think Mike said that or meant it that way. Mike commented that he did make that statement. John said that if the sentence was not corrected or removed, he wanted a notation that he disagrees with the sentence. George asked for a point of clarification in that it must either be corrected or removed so the minutes could be completed properly.
John Paul made a motion that the last sentence of paragraph 2 on page 2 of the minutes of the 4/21/09 meeting be stricken. Bubba Smith seconded this motion and it was unanimously carried. 5-0
John Paul stated that there were other corrections to the minutes, but after reviewing, he stated that they were questions that could be answered when the items were brought up and he requested a motion to approve the minutes.
Kenyon Leavitt made a motion to approve the minutes from 4/21/09 Regular Meeting as amended. Bubba Smith seconded this motion and it was unanimously carried. 5-0
5. Discussion & Action – Approve Purchase Orders Over $2,500
a. Cordova Construction - $4,433.00 – Ratify Construction of VVWD Well No. 30 Cement Pad
John Paul began by stating that this item had a cover letter and this would become significant later and that he assumed that the General Manager’s request was to accept Cordova as the winning bid. Mike Winters explained that he had Aaron go out for three (3) bids per NRS as the amount would be under $10,000 and at least two bids are required. He further stated that the cement must be in place and capable of holding 300,000 lbs.
Bubba Smith made a motion to approve purchase order to Cordova Construction for the construction of VVWD Well No. 30 cement pad for $4,433.00. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
6. Discussion & Action – Approve Changing Regularly Scheduled Board Meeting on May 19th to May 21st Held in Conjunction with Public Budget Hearing Scheduled per NRS
John Paul stated that he noticed there was no back-up material for this item and after this was confirmed he stated he had no further questions on this item.
Bubba Smith made a motion to approve changing the regularly scheduled board meeting on May 19th to May 21st, 2009 to be held in conjunction with the Public Budget Hearing scheduled per NRS. Ted Miller seconded this motion and it was unanimously carried. 5-0
7. Discussion & Possible Action – Consideration to Establish or Amend Existing Policy
Regarding the Waiving of All or Any Part of Fees. Consideration of Parameters or Other Requirements Needed in Order to Grant Such Relief and Whether or Not to Allow Any Payments Over a Longer Period of TimeJohn Paul commented that there was no cover page on item 7. It was explained that there was a memo from Mike to the Board stating “Fee Policy”, but the memo did not have the item number included. Mike stated in his memo that there was actually no written policy stating that the District did not waive fees, but inserted a paragraph from the District’s enabling legislation that states the District sells and distributes water “without preference”. Mike stated that he believes previous boards’ have just followed this statement in that waiving fees could show preferential treatment. John Paul had included a few instances where other organizations had implemented a way to waive and and/or all fees. John Paul further stated that he felt that the District should look at hardship or that they are performing a community service. Bubba read the minutes from the last meeting where he stated that it would be nice to have something from staff to work from or some type of suggestions and felt that staff should have their recommendations. After being asked, Mike stated that the board is set up to set policy and he will follow their directions. Mike stated that there is no written policy and he will do whatever the board wants to do. Bubba stated that the time element was good. Bubba further stated that the public should be able to appeal to the board and we should set parameters to what the public would need to meet before they could appeal to the board. Cecil commented that since he has been on the board that they have not waived fees and that was the policy and suggested that items 7, 8 and 9 should be together.
John Paul suggested for some parameters that the organization requesting a waiver of fees should be a recognized non-profit organization with the State and a bonafide contributor to the community.
Ted Miller questioned if this was just not a one-time deal and how this could affect the policy. George stated that the policy could state that we would address these issues on a case by case basis. Bubba stated that he felt we needed parameters so we wouldn’t have to open up to everyone and that the City has guidelines and parameters that help them make decisions so you are not showing preferential treatment.
Kenyon Leavitt made a motion that we make a policy for the Virgin Valley Water District that we look at on a case by case basis for waiving fees or extending fees over a period of time for organizations that meet non-profit organization status, that do a service to the community and is recognized as a non-profit organization by the State of Nevada. Cecil Leavitt seconded this motion.
George questioned if the motion was intended to include waiving any and/or all fees.
Kenyon Leavitt amended his motion to include any and/or all fees. Cecil seconded the
amendment and it was unanimously carried. 5-0
8. Discussion & Possible Action – Consideration to Waive Any or All VVWD Fees and/or Defer Payment of Fees Over a Period of Time for Mesquite Veterans Center – Requested by the Vietnam Veterans of America, Mesquite Chapter 993, Dale HoytBubba stated that in our last meeting the General Manager had his recommendation and that was not included in this packet. Mike stated that his recommendation if the Board were to waive any fees would be to waive the Ordinance II fee totaling $3,300 and the transfer fee of $100 for a total of $3,400 being waived and that the veterans would pay the impact fee of $2,120 and the connection fee of $250. Kenyon mentioned paying the fees over a period of 10 years with no interest. Mike mentioned that the City of Mesquite requires that the impact fees be paid before they will issue a building permit, but Mike stated he would write a letter to the City with an explanation so this could be an exception. It was discussed a term for payment and the veteran’s thought they could handle 24 months.
Ted Miller made a motion to waive the Ordinance II fee and the transfer fee totaling $3,400 and that we would take the balance of $2,370 over a 24 month payout. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0
9. Discussion & Possible Action – Consideration to Develop and/or Adopt a Policy for the Donation of VVWD Funds as Budgeted Each Fiscal Year
Mike stated that in our budget workshop the board set aside $5,000 for contributions for the next fiscal year. Mike had included policies from OPD, MVWD and the City of Mesquite. Mike felt that the City’s policy was very in depth and that we did not need to go to that extreme. The Overton Power District budgets $2,500 each year with 5 scholarships going to students in Moapa and 5 scholarships going to students in Mesquite. The Moapa Valley Water District budgets $1,000 each year with person(s)/organizations coming to the board on a case by case basis and if approved, receiving $100. The SNWA leaves most of the decision to the General Manager if anything is to be given to anyone or organization. Mike had recommended that since the District had budgeted $5,000 for this next fiscal year that $1,000 go to each school (VVHS, Hughes Middle School, VVES and Bowler Elementary) with the District’s direction on where the money should go. The remaining $1,000 would be for individuals who would come before the board on a case by case basis with the board deciding how much to donate.
Bubba stated that he felt that it was a good idea dividing the money between different departments and not just giving the schools a $1,000 check to do with as they want.
Bubba made a motion to establish a policy and that from our 2009-2010 budgeted amount of $5,000 that we give $1,000 to each of the schools and $1,000 in the general budget for the VVWD board to dictate as to which club or organization will receive donations and amount to be donated. Bubba further stated that he would be willing to take the responsibility of taking this information to the schools and getting some of those back. Bubba further stated that even though we have had our budget workshop and set aside $5,000, he felt that with board recommendation, he would bring the organization lists back from the schools and the board would be able to select how that money is to be earmarked for. Included in this motion is that every year at our first budget meeting, the board will adjust the amount that we will contribute to organizations. Kenyon Leavitt seconded this motion.
Cecil questioned that with $1,000 going to each school that there was no money going
towards scholarships; and it was determined that the board could decide to use the $1,000 in the general budget for this purpose if they so desired.John Paul called for a vote and the motion passed unanimously. 5-0
10. General Manager’s Report
Bubba excused himself at 4:13 having to attend the City Budget meetings.
Mike had not included a written report. Mike stated that he would like to set up a work session on June 2, 2009 at 2:00 regarding an operations facility for the District and if the board would want an action item on that agenda or at the following meeting. Kenyon stated that he would like a week or so in between. Mike further stated that two of the arsenic plants had run their 7 day period and the arsenic level was down to .6. Four of the plants must be on-li9ine by May 31st and the last plant by June 30th. Mike mentioned that Boomer and he would be in Washington DC for their annual trip next week. Mike also mentioned that he was waiting to hear from ACOE and hopefully they will have amended the grant and the District could receive 6.8 million more dollars. Well No. 31 has been repaired and is back up and running. Mike also stated that he has been working on legal issues regarding the polyethylene pipe failure.
11. Hydrologist’s Report
Michael had not included a written report. He informed the board and handed out the ruling that came out the 29th of April regarding Tule Desert and receiving an extra 396 acre feet per year in that basin from the State Engineer. In the ruling there is a map from the current EIS to run a pipeline from the Clovers and Eagle Valley to the LCLA that was reviewed. It was also decided to discuss the Legacy Lease Agreement at the first meeting in June. Boomer also stated that the ad for RFP’s was out and we would be accepting proposals until the 19th of this month for storage.
12. Engineer’s Report
Erik had not included a written report nor did he have anything extra to report at this time.
13. Public Comment
Sandra Raymaker commented that she was very pleased with the board establishing the policies.
14. Adjournment
President John Paul adjourned the meeting at 4:31 p.m.
The May 5, 2009 VVWD Board Meeting Minutes are available for download.
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.
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VIRGIN VALLEY WATER DISTRICT
BOARD OF DIRECTORS - WORK SESSION
VIRGIN VALLEY WATER DISTRICT OFFICE -MAY 5, 2009Minutes of a Work Session of the Virgin Valley Water District Board held on May 5, 2009, at the Virgin Valley Water District Office at 2:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Counsel, Michael “Boomer” Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
Discussion (No Action) – Alternatives in Servicing Water and/or Wastewater to the Lincoln County Land Act
John Paul opened the meeting at 2:00 p.m. John Paul began by stating that there was some correspondence within the packets. The first is a letter from Wade Poulsen requesting a “Service Plan” with certain items to be addressed and the other correspondence was a letter received from the Mayor of Mesquite and Mike’s response to the Mayor’s letter. John Paul commented on the Mayor’s letter and Mike’s response and invited the other board member’s to comment on the Mayor’s letter. Ted Miller stated that he believed Mike did a good job in his response to the Mayor’s letter.
Mike Winters stated that the purpose of this meeting is because Lincoln County Water District (LCWD) had requested RFP’s in providing utility service to the Toquop development and is asking the District if they would want to submit a proposal on what they would be willing to provide or if the District has no desire to enter into an agreement, that they would appreciate a letter stating that fact. Mike stated that the District would not sacrifice our water to service the Lincoln County Land Act (LCLA) and that LCWD must supply water to the LCLA. It would be a gallon for gallon exchange. LCWD would be able to impose taxes, fees, etc and could charge what they wanted per EDU and impact. Mike further stated that the LCLA customers would have to pay the same monthly price for water that the VVWD customers pay and that separate books would be kept keeping the difference between the VVWD and the LCWD. The LCWD does have water in Basin 221 and are looking at other areas as the Clovers, etc. Mike further commented that their request was also for wastewater and that he was not the greatest fan of wastewater, but if the board so desired, we would do what the board felt we should. Mike also stated that the District could also look at storage fees and transmission fees, but that these would be minimal.
Cecil Leavitt commented that Wade Poulsen, LCWD General Manager was present and that we should hear from him. Wade stated that they were looking for the best plan to service that area. The Toquop area or LCLA is 13,300 acres of land that was acquired from the Federal Government and the power plant is not included in the LCLA. Wade further explained how the LCWD was formed. The options to service the area as they see is the VVWD, a private operator or to create a GID. LCWD is looking at what the VVWD Board is willing to do, their stipulations and the extent of their willingness to go forward.
Mike questioned the time frame that LCWD would be able to get water out of the
Clovers and it was stated that it would be 7 to 10 years, if not even longer. There was further discussion regarding the developers and where they stand and if they would be willing to turn over the water rights to the VVWD to service the LCLA. George Benesch brought up the fact of terminating the agreement and that once you are servicing customers, you cannot just shut them off. There were further questions regarding infrastructure; Vidler Water Company and their role with the LCWD; arsenic, if their water has arsenic, if it would be treated before the VVWD received this water and some political aspects of this development.President John Paul adjourned the meeting at 3:09 p.m.
The May 5, 2009 VVWD Special Board Meeting Minutes are available for download.
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.
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VIRGIN VALLEY WATER DISTRICT SPECIAL BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - MAY 21, 2009Minutes of a Special Board Meeting of the Virgin Valley Water District Board held on
May 21, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith, arriving at 3:06 p.m. Vice-President Kenyon Leavitt was not present. Also present were Michael Winters General Manager, Michael (Boomer) Johnson Chief Hydrologist and Shannon Hardy taking minutes and other interested parties of agenda items.President John Paul called the meeting to order at 3:00 p.m.
Cecil Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments – None
President of Board Comments - NoneCONSENT AGENDA:
Cecil Leavitt made a motion to approve the consent agenda as listed below. Ted Miller seconded this motion and it was unanimously carried. 3-0
1. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Minutes from 5/5/09 Workshop
3. Discussion & Action – Approve of Minutes from 05/5/09 Regular Board Meeting
4. Discussion & Action – Approve Financial Statement for March 2009
5. Discussion & Action – Approve Bills Paid – 247,940.85
6. Discussion & Action – Approve Purchase Orders Over $2,500
A. Construction Group International - $10,924.00 – Move Generator from Well
#30 to Well #31B. Dell Computers - $7,869.53 - Server
** End of Consent Agenda**
7. Discussion & Possible Action – Public Hearing on Tentative Budget and Approval of
Final Budget for Fiscal year Ending June 30, 2010Mike began by stating that changes were made to the budget as requested by the Board in the work session held on April 7, 2009. John Gleave has made those changes and prepared the final budget as presented. Mike stated that given the economic conditions, we will have to watch budget. Ted Miller questioned why $250,000.00 was budgeted for the calendar year for legal services. Mike explained that a large amount of the legal budget was for litigations costs concerning Vanguard Pipe. Ted Miller questioned if enough money had been included in the budget for the Arsenic Treatment. Mike explained that repairs, maintenance and chemicals are all separate in the budget. Mike also stated that the first year is covered under the warranty by the Contractor.
Cecil Leavitt made a motion to approve the final budget for fiscal year ending June 30, 2010. Ted Miller seconded this motion and it was unanimously carried. 4-0
8. Discussion & Possible Action – Consideration to Extend Agreement for Technical Support and Service with Xtreme Technologies for an Additional Two (2) Year Term as Allowed Per Agreement John Paul questioned the increase in cost in the contract from $16,260.00 to $17,000.00. Tracy Lee explained that there have been increases in the cost of his insurance and telecommunications. He estimated an additional increase for the second year of the contract of approximately 3 to 4%.
Cecil Leavitt made a motion to extend the agreement for technical support and service with Xtreme Technologies for an additional two year term as allowed per agreement. Bubba Smith seconded this motion and it was unanimously carried. 4-0
9. General Manager’s Report
Mike stated that Bowen and Collins asked if they could delay the water resource report presentation until the second Board meeting in June. Mike stated that he saw no problem with them delaying the meeting so that they can make any corrections and have the best presentation possible. There was some discussion regarding Lincoln County Water District appealing the State Engineer’s ruling on Tule Desert. George Benesch and Michael Johnson will draft a letter requesting our involvement with any meeting on the Tule Desert. Mike Winters stated that 4 of the 5 Arsenic Treatments plants are in operation. Bowen and Collins along with the contractor are making the final adjustments and the plants should be in full operation within 2 to 3 weeks. Mike Chandler of Bowen and Collins stated that September 30, 2009 is the completion date set for the Hardy Way Arsenic plant.
10. Hydrologist’s Report
Michael had not included a written report. He handed out a memo to the Board containing a quote from Technical Service Company for the purchase of a sand separator for Well 30. The cost is $6,652.00. This will go before the Board on the June 2, 2009 meeting. He has received RFP’s for review and will decided upon at the June 2, 2009 Board meeting.
11. Public Comment
There was no public comment at this time.
12. Adjournment
President John Paul adjourned the meeting at 3:50 p.m.
The May 21, 2009 VVWD Speial Board Meeting Minutes are available for download.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - JUNE 2, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on June 2, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith arriving at 3:10 p.m. Also present were Michael Winters General Manager, George Benesch District Counsel, Erik Beyer District Engineer, Michael (Boomer) Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Cecil Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments - None
President of Board Comments – John Paul stated that the State Legislation Session
was over and he was anxious to see what accomplishments will improve our community by their session. Also, he mentioned that the general manager had distributed a notice regarding the discoloration of the water and that it had been tested and everything seemed to be in order.CONSENT AGENDA:
Kenyon Leavitt made a motion to approve the consent agenda as listed below. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0
1. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve of Minutes from 5/21/09 Special Board Meeting
3. Discussion & Action – Approve Purchase Orders Over $2,500
a. Technical Services Company – Ratify $6,475.00 – Sand Separator for VVWD
Well No. 30** End of Consent Agenda**
4. Discussion & Possible Action – Consideration to Select RBF Consulting for Professional Services Agreement for the Aquifer Feasibility Study and Authorize the General Manager to Execute Agreement with RBF
Boomer reported that five (5) firms had submitted proposals. Two of the firms were from out of state and three were within the immediate area. RBF is located in Las Vegas and Southern California. Bowen & Collins are out of Salt Lake City, UT with an office in St. George, UT and Stanley Consultants were based in Las Vegas. All firms met the requirements. Boomer stated that RBF would be the best suited for our recharge application. The rating table was included looking at where we should conduct recharging and costs associated with these tests and that RBF may find that outside funding is available. Ted questioned if we have had any other business dealings with RBF and Boomer stated that the VVWD has not, but that he has while he was working with the LVVWD. John Paul questioned how extensive the feasibility study would be and if they would be looking at above ground storage and Boomer stated that they would and went into further explanation of a current project that RBF is involved in California and that this would be part of the feasibility study. John Paul wanted to add direction to the General Manager that when the decision is made and the General Manager concludes the consulting agreement that we for sure want to look at the possibilities of surface storage. Boomer stated that this could be a task item in the agreement. John Paul further stated that the City of Mesquite may be able to provide some options and feels that whoever conducts the feasibility study should be directed to contact the City Manager and see if there is any possible way to work with them in a collaborate effort to see if they can offer anything to our feasibility study. Kenyon Leavitt questioned the time frame and Boomer stated that it would probably take up to six (6) months before the feasibility study report would be completed. Cecil Leavitt had some questions regarding the rating form that Boomer answered.
Kenyon Leavitt made a motion directing the General Manager to enter into and execute an agreement with RBF Consulting to provide professional services for the Aquifer Feasibility Study and with the recommendation that the City of Mesquite be included and the City Manager be contacted to see if there is any possible way to work with them in a collaborate effort to see if they can offer anything to this feasibility study. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0
5. Discussion & Possible Action – Review Options of Utilization of 188 Mesquite Irrigation Shares Available August 1, 2009
Mike Winters stated that the District’s lease agreement with Legacy Construction expires August 1, 2009. Mike stated that he has spoken with Cresent Hardy of Legacy Construction and that he has stated that he would need 30 to 40 shares to water the Falcon Ridge Golf Course. Mike further stated that he has had some preliminary discussions with SNWA and that they would be willing to lease all or part of these shares at $300 per acre-foot. Mike also said that in his opinion, the more irrigation water used by the golf courses, construction and recreation, etc. is less demand on the culinary system. John Paul questioned the term of the lease with SNWA and Mike stated they were looking at two years lease with options after that. John Paul stated that it looked like we would have a back-up offer with SNWA if we could not lease out the shares as they become available. Bubba stated that he thought the parameters had already been set for leasing water from the District and these parameters were discussed. Mike explained that he had initiated talks with SNWA as a way to bring in revenues. Mike further stated that if the board so desired to go ahead with the auction and that we would bring back for auction at the last meeting of July or at the end of July. Kenyon Leavitt stated that he felt that we should go out to auction and if any shares were not leased that then we could contact SNWA. Cresent Hardy of Legacy Construction stated that he felt the Board should look at water shares and in his opinion, use locally; but if looking for money, then contact SNWA or we should be looking at reservoirs. John Paul opened the item for public comment and Kraig Hafen and Quincy Edwards offered their comments.
Bubba Smith made a motion to follow the parameters already set for leasing irrigation shares and direct the General Manager to set a date for auction for the 188 shares. Ted Miller seconded this motion and it was unanimously carried. 5-0
6. Discussion & Possible Action – Consideration to Review the Duties, Expectations and Responsibilities of the District’s Legal Counsel and What, if any, Action Should be Taken
Mike stated that he had put this on the agenda with John Paul reluctantly agreeing to go this way in lieu of having the RFP’s and RFQ’s for Administrative Legal Counsel on this agenda. Mike explained that George Benesch has been an excellent attorney for the District for many years and that George was involved in the writing of Chapter 100 and creating the District. Mike further stated that no one has come forward with what changes that they have wanted and believes the board should outline what changes they would like to see and then see if George would want to make these changes. John Paul stated his reasons for his reluctance to have this put on the agenda because at the meeting on March 3, 2009 by a 3-2 vote the board voted to accept RFP’s and RFQ’s for Administrative Legal Counsel. John further stated that he does not find George’s services unacceptable, but he was one of the votes because he didn’t think that the job performance was not at the best, but that there was no jobs outlined. John further stated that the District received nine (9) offers for the RFQ and RFP and at the next meeting it would be put on the agenda for a new attorney to share some responsibility and we would need scope of work outlined. Cecil asked what was on the 3/3/09 agenda and John read the items and then read the item on this agenda and asked what those agenda items on 3/3 had to do with George Benesch and John Paul stated that it didn’t have anything to do with George. Bubba talked about the meeting in March and he wanted to move forward with the RFQ’s and RFP’s and then it would be easier to decide what legal counsel duties would be. Bubba further stated that George was not an employee and we should not be doing a performance review and that we should just move forward. Mike noted that he did do as the board asked regarding the RFP’s and RFQ’s for legal counsel. George Benesch thanked the board for their consideration. Kenyon Leavitt stated that the board needs to realize that we purvey water and to do this as cheaply as possible and that we need an attorney that will be able to take care of our water because that is the board’s responsibility. Ted Miller stated that he felt we should move forward and that we would need George Benesch for water issues, but maybe not for other issues.
The item died for a lack of a motion.
7. General Manager’s Report
Mike had not included a written report. Mike informed the board that the Zee Designs still needed the board’s pictures and bio’s and would also like a message from the president. Mike further stated that we would begin to run credit cards next week and by the end of June, the website should be up and running. Mike also stated that there was something that was going to be very monumental; Lincoln County and Vidler Water Company have appealed the State Engineer’s decision regarding basin 221. George has filed a Notice of Intent to Participate and he further stated that George and Boomer would be very involved with this appeal. Mike also mentioned that we had received a telephone call from a customer and that they had green water and it appears that we had a filter break through. Water samples were taken immediately to Las Vegas to make sure the water was okay for consumption. The iron content was a little high, but there is no MCL for iron. The reservoirs were drained and flushed and it was found that there had been some malfunction with the turbidimeters and they were repaired.
Mike Chandler was present and reported on the arsenic plants stating that site #31 has been operational with a 3 to 4 ppb of arsenic. Site #32 would be operating tomorrow (6/3/09) and Site #28 was operable, but the painters have been in there for the past week. The Hardy Way Site is progressing quickly and they plan to have an Open House for the public in the near future.
8. Hydrologist’s Report
Michael had not included a written report. He informed the board that he been reviewing the RFP’s for the Aquifer Feasibility Study. He further stated that they were working on getting equipment into the valley for well #30 and work should begin next Monday. Boomer further stated that we had received a pump and had replaced it in well #31 and it was doing well. On June 23, 2009 we will be meeting with the mediator regarding the change order from Longview Construction and their sub-contractor. Boomer then went into more detail of Lincoln County Water District and Vidler Water Company’s appeal.
9. Engineer’s Report
Erik had not included a written report and stated with the slowed down economy that he really had nothing to report. Erik stated that he continues to review development plans as they come in.
10. Public CommentThere was no public comment at this time.
11. Adjournment
President John Paul adjourned the meeting at 4:28 p.m.
The June 2, 2009 VVWD Board Meeting Minutes are available for download.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - JUNE 16, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on
June 16, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, George Benesch District Counsel, Michael “Boomer” Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.President John Paul called the meeting to order at 3:00 p.m.
Kenyon Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – George Benesch stated that he had left with each board member a copy of the confidential mediation brief that he prepared for a mediation to be held next Tuesday regarding the Longview River Boring contract. Also, George stated there was another document, considered public information, dated June 11, 2009 that is a letter to Trent Reber of Underground Solutions and they are seeking $188,846.55 more and want this included in the mediation so the mediation has been continued and George will need to revise the brief to include this document.
Discussion:
Board Comments - None
President of Board Comments - NoneCONSENT AGENDA:
John Paul stated that he had a question on item #2 of the consent agenda that was not extensive, but asked that it be pulled for discussion.
Kenyon Leavitt made a motion to approve the consent agenda as listed below pulling item #2 off the consent agenda to be discussed separately. Bubba Smith seconded this motion.
Cecil Leavitt stated that the board could discuss items without an extensive hearing and didn’t think that the item required being pulled. George Benesch stated that not knowing how extensive the discussion could be and with a motion and a second already on the floor he advised to continue with the item being pulled from the consent agenda. John Paul called for a vote and it was
unanimously carried. 5-01. Discussion & Action - Approve Agenda
3. Discussion & Action – Approve Financial Statement for April 2009
4. Discussion & Action – Approve Bills Paid - $1,168,335.88
5. Discussion & Action – Approve Purchase Orders Over $2,500
a. Pete Shields Stucco - $3,200.00 – Stucco Pump House and Wall @ Well #27
b. Iron County Pipe - $5,892.80 – Steel Pipe for Aqua Guard Injection @ Well #30
** End of Consent Agenda**
2. Discussion & Action – Approve Minutes from 6/2/09 Regular Board Meeting
John Paul questioned page #3 and the motion of item “5 and what happens to the parameters that were set; are they recorded somewhere, etc.? Mike Winters stated that the parameters would be in the public notice. Mary stated that the parameters and policies set would be added to the District’s Rules & Regulations when updated.
Bubba Smith made a motion to approve the minutes from 6/2/09 Regular Meeting. Ted Miller seconded this motion and it was unanimously carried.
6. Discussion & Possible Action – Water Resource Plan Presented by Bowen, Collins &
AssociatesJoel Andrus representing Bowen, Collins & Associates distributed draft copies of the “Water System Master Plan Update” dated June 2009. Joel reviewed the update with the board consisting of Population Projections; District Water Demand; Existing System Overview; Distribution System Evaluation; and Recommended Improvements. Joel stated that in his opinion the District’s system was overall excellent. The pressure zones within the system were discussed more extensively and Joel went over where corrections should be made. Joel answered questions from the board. Mike Winters stated that it would probably cost $50,000 for each PRV required to correct the high pressures and that we could use the 2008 bond money to pay for this capital improvement.
7. Discussion & Possible Action – Consideration to Authorize the General Manager to Amend the Original Agreement with Bowen, Collins & Associates to Include an Additional $122,500 Change Order
Mike Winters stated that the amendment was included within the board packets and was self explanatory. Ken Squires representing Bowen, Collins & Associates stated that the change order was due to the arsenic site for well #27 was moved to Hardy Way. The original contract was based on 19 months and expired in mid April and their work will go well into July going 3½ months longer than originally planned. Ken explained how they billed. Ted questioned whether the Army Corp of Engineers (ACOE) would need to approve and Mike Winters stated that they did not need to approve.
Cecil Leavitt made a motion to authorize the General Manager to amend the original agreement with Bowen, Collins & Associates to include an additional $122,500 change order. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
8. Discussion & Possible Action – Consideration to Authorize Professional Services with Bulloch Brothers Engineering for Work Associated with Site Preparation for the Drilling and Development of VVWD Well No. 34
Boomer reported that prior to obtaining bids for site preparation, topography of the ingress route and the well pad must be determined. He further stated that the District has a permit through the State Engineer and a BLM Right-of-Way for the well site.
Bubba Smith made a motion to authorize professional services with Bulloch Brothers Engineering for work associated with site preparation for the drilling and development of VVWD Well No. 34. Kenyon Leavitt seconded this motion. Cecil Leavitt stated that motion should be amended to include an amount not to exceed. Bubba Smith amended his motion to include that the amount of this professional service agreement is not to exceed $12,000. Kenyon Leavitt seconded the amendment and the motion and amended motion was unanimously carried. 5-0
9. Discussion & Possible Action – Consideration to Select One or More Firms to Interview with the VVWD Board of Directors from the Letters and Resumes Received Regarding RFQ 2009-01 and RFP 2009-02 for Administrative Legal Counsel
John Paul began by stating that in his last e-mail to the General Manager directing him to place this item on the agenda, his intent was to consider this selection process and not have to go to a second round and have all done at this one meeting. Mike stated that he thought the intent was to look through the resumes and then the board would decide on a few firms to interview since no one representing any of the firms were present and that you would want a face to face before making any decision. John Paul stated that he didn’t seem to think that was the case and his intent was to choose a firm at this meeting. Mike stated that he wouldn’t think the board would want to hire a firm without interviewing first. Cecil Leavitt stated that he had read through the resumes submitted and he was not impressed. Cecil further stated that he felt the board should choose 3 to 5 of the group and interview them personally before making any decision. John Paul stated that he did not agree with that statement as it pertains to the qualifications and the resumes submitted, and that he was quite impressed with the resumes. Ted Miller stated that most of the board members would like to see a local attorney familiar with the City.
Ted Miller made a motion to engage Bingham & Snow as the District’s Administrative Legal Counsel. John Paul seconded the motion.
Kenyon Leavitt stated that we had professional services here today giving a presentation and didn’t think the board should just go off a resume. Kenyon further stated that other board members may know Bo Bingham, but that he didn’t know him from “Adam” and he would like to see him in front of them before hiring him for the District’s administrative legal counsel. John Paul stated that after looking at the paperwork submitted by Bingham & Snow that he was highly impressed with
this firm because they had addressed each point that was listed in the Request for Proposal. Kenyon asked if we weren’t going to do a background check or anything and only go with what they responded to in a letter 100% without knowing anything about them; only that they have an office in Mesquite? Ted Miller stated that three of the board members know Bo Bingham and have done business with him in the past and know who he is and know what his reputation is. George instructed the board to stay within the parameters of the agenda item. Mike Winters stated that he agreed with Kenyon and felt that the prudent way to handle this was to conduct interviews for professional services as done with other professionals. John Paul questioned Ted if he would like to change or modify his motion after these comments.Ted Miller amended his motion to invite Bingham & Snow in at the next meeting for an interview with the board. John Paul seconded the motion. Mike Winters questioned the time for the interview and stated that at the next meeting Jori Spangler would be here at 2:00 regarding the polyethylene pipe failure. It was determined that the interview should be conducted at the public meeting at 3:00. John Paul called for a vote since a motion and a second were on the floor and the motion was unanimously carried. 5-0
10. General Manager’s Report Mike had not included a written report. Mike stated that the correspondence he had set in front of the board from a legal firm representing Vidler Water Company was requesting information, records, etc. in regards to the ruling from the State Engineer in the Tule Dessert and matters related to that. Mike further stated that he didn’t know if it would be required to be put on an agenda and voted upon, but we have been asked by Lincoln County to possibly enter into an Interlocal agreement to service the Lincoln County Land Act (LCLA). Mike recommended that we send a letter to Lincoln County stating that until these matters have been resolved between Lincoln County, Vidler Water and the State Engineer that we postpone any negotiations until that time. The board directed Mike to have that letter drafted without coming back before the board as an agenda item.
Mike further informed the board that Jori Spangler would be here at 2:00 for an attorney/client closed meeting before the next board meeting July 7th.
Mike also stated that the arsenic plants were going well and that we were taking samples weekly and the plants were producing water with 2ppb arsenic. Mike Chandler further commented that the arsenic plants were complex and they were trying to get the plants to run automatically. Mike Winters further stated that the computers were down and that Tracy Lee had ordered the necessary supplies to get them back up.
11. Hydrologist’s Report
Michael had not included a written report. He informed the board that the pump was in route for well #30 and that it would take a week for installation of the pump. Boomer further stated that he has been working on well #34.
12. Public Comment
Morris Workman questioned what George Benesch’s role would be with the District since they were interviewing another law firm. John Paul stated that it was premature to speculate what that could be at this time. Morris continued to question the board and George stated that this item was for public comment only and not for discussion.
13. Adjournment
President John Paul adjourned the meeting at 4:28 p.m.
The June 16, 2009 VVWD Board Meeting Minutes are available for download.
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: 2009-06-16 (.pdf 21K)
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - JULY 7, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on July 7, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Vice-President Kenyon Leavitt was not present, but was called and put on speaker phone from item No. 7. Also present were Michael Winters General Manager, George Benesch District Counsel, Michael “Boomer” Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Cecil Leavitt offered a Prayer and Bubba Smith led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments - None
President of Board Comments – John Paul commented on the correspondence included within the packets from Barney McKenna & Olmstead, Attorneys at Law regarding the Administrative Legal Counsel position.
CONSENT AGENDA:John Paul requested that item #2 be removed for further discussion. John further commented on item #4 and read the memo included with this item.
Bubba Smith made a motion to approve the agenda as presented and the consent agenda items #1, #3 and #4 with item #2 being removed for further discussion. Ted Miller seconded this motion.Cecil Leavitt questioned item #7 stating that this item was placed on the agenda by Kenyon Leavitt and he is unable to be present and would like the item removed and placed on the next agenda two weeks from today. Cecil Leavitt moved to amend the motion to remove the item and placed on the agenda two weeks from today. The motion died for a lack of a second.
John Paul called for a vote on the motion and the second on the floor and it was passed by a vote of 3 to 1 with Cecil Leavitt opposed.
1. Discussion & Action - Approve Agenda
3. Discussion & Action – Approve Bills Paid - $1,279,004.02
4. Discussion & Action – Approve Purchase Order Over $2,500
A. CDW Government, Inc. - $4,474.45 – Computer Rack with Accessories
** End of Consent Agenda**
2. Discussion & Action – Approve Minutes from 6/16/09 Regular Meeting
John Paul referred to page 3 of the minutes, 5th paragraph down which is under item #9 and the third sentence from the end that reads “John Paul stated that he did not agree with that statement and that he was quite impressed with the resumes.” John asked that this be corrected not to read that way because it was not exactly what he said. John Paul stated that what he said was not that he didn’t agree with that statement because it could be misread and misunderstood and would like it to read that, “John Paul stated that he did not agree with that statement as it pertains to the qualifications and the resumes submitted, I was impressed with the resumes”; and would like to note this change. John Paul further stated that on the last paragraph of page 3 in the middle of it “John Paul stated that after looking at the paperwork submitted by Bingham & Snow that he was highly impressed with this firm.” John stated that this was not quite exactly what he said. What he did say was that he was impressed with the firm because they had addressed each point that was listed in the Request for Proposal and would like the record to read that way.
John then moved to page four and the fourth and fifth paragraphs down under the General Manager’s Report and questioned whether Mike had forwarded this letter in question and then he asked about Mike Chandler’s comments and asked where the arsenic plants were. John further questioned the Hydrologist’s Report and the pump for well #30. It was stated that these questions could be answered under the General Manager’s and Hydrologist’s Reports later on the agenda.John Paul made a motion to correct the minutes on page 3 under item #9 and the third sentence from the end in the 5th paragraph to read “John Paul stated that he did not agree with that statement as it pertains to the qualifications and the resumes submitted, and that he was impressed by the resumes,” and that the last paragraph on page 3, third sentence should read that “John Paul stated that after looking at that the paperwork submitted by Bingham & Snow that he was impressed with the firm because they had addressed each point that was listed in the Request for Proposal”. Bubba Smith seconded this motion and it was unanimously carried. 4-0
5. Discussion - Presentation by Randy Robison Updating the Board on the 2009 Legislative Session
Randy Robison, District Government Affairs Liaison, gave a brief overview of items of interest. The budget and taxes issues overshadowed every other issue. Randy stated that there was not a great deal of water issues proposed. The substance of AB416 requires a basin inventory before basin transfers. AB480 increased fees to help offset State Engineer Costs. SB66 dealt with the Virgin and Muddy River. Randy further commented on other smaller issues.
Mike Winters commented on the stimulus money of $19 million that would be used for arsenic treatment for other entities.
Minutes of a Regular Board Meeting
July 7, 2009
Page 36. Discussion & Possible Action – Consideration to Approve Donations to Julia Woods and/or Mesquite Cancer Help Society
Mike stated that the board had budgeted $5,000 this fiscal year with $4,000 earmarked to be split evenly at $1,000 for each school within the District leaving an extra $1,000 for the board to use at their discretion. Julia Woods was present and stated that she would be in the 6th grade at Hughes Middle School on the cheer squad and had presented a letter in the packets requesting a donation stating that cheer would probably cost about $450 per cheerleader. The board discussed the $1,000 for each school. Bubba questioned the District’s Donation Policy and Mary read off the policy the board had previously approved. If was further discussed whether to donate money from the extra $1,000 to Julia or whether to designate an amount certain to the cheer squad from the $1,000 to the school.
Cecil Leavitt made a motion to approve $450 to Hughes Middle School Cheer Squad from the $1,000 already designated to that school. Ted Miller seconded this motion.
Bubba questioned how many cheerleaders there were and was informed that there are to be 20 cheerleaders. There was further discussion. John Paul called for a vote and it was unanimously carried. 4-0
The second part of this item was heard for the Mesquite Cancer Society and there were no representatives present.
Cecil Leavitt made a motion to table this portion of the item until a representative for the Mesquite Cancer Society was present at the next board meeting. Bubba Smith seconded the motion and it was unanimously carried. 4-0
7. Discussion & Possible Action – Interview with Attorney, Bo Bingham and/or Representative(s) of Bingham & Snow and Consideration to Retain Firm for Professional Services for Administrative Legal Counsel for the VVWD
Mike Winters telephoned Board Member Kenyon Leavitt and had him on speaker phone. John Paul commented that he thought this item should be heard by all board members and now it would be. John Paul further stated that he felt the VVWD should have more than one firm to choose from.
John Paul moved to expand and modify this item to include attorney Nancy Harkess along with attorneys Bingham & Snow and to be placed on the next regularly scheduled meeting agenda of the VVWD Board which would be July 21st.
Bubba had a question stating that Bingham & Snow were present today to be interviewed, and were we going to speak to them today and then add some more presentations next week? John Paul stated that that was not part of his motion as it stood now. Ted stated that he didn’t understand John’s motion and Bubba asked again if we were not going to interview Bingham & Snow today. John Paul stated that it was not a recognized motion until there was a second. Cecil Leavitt stated that he would second it, but that he felt that there needed to be more than one more firm to be interviewed. Ted Miller called for a point of order stating that the agenda item was pretty plain. John Paul stated that he had made a motion and was waiting for a second on it.
Kenyon Leavitt seconded the motion on the fact that he would like to be present so that he could see them.
Ted Miller again called for a point of order. John Paul asked George Benesch for his direction on the agenda item. George stated that the board was limited to the agenda item to interview Bo Bingham. Mike Winters stated that his belief from the beginning was that none of the attorneys who submitted a resume had met the RFP or RFQ and that there has not been a RFP or RFQ established. John Paul questioned Mike as to why there had not been an RFP or RFQ established. Ted Miller again called for a point of order and asked what the agenda item was and John Paul proceeded to read item #7 on the agenda aloud again. Bubba stated that when it was brought up earlier in the meeting to approve the agenda, item #7 was not tabled then, the agenda item is pretty clear and he feels that we should go ahead with the interview today and if we want to hear other presentations at the next meeting that would be okay.
John Paul stated that he was sorry to disappoint Kenyon, but that he was going to withdraw his motion.
Bo Bingham and Eric Wilbanks were present representing Bingham & Snow. The RFP and RFQ were further discussed, how they received them, what was stated on them and if they were given a scope of duties and what would the attorneys be doing.
Ted Miller stated that the District occasionally required legal advice on water matters, but required an attorney for administrative legal actions. Ted further stated that they have experience with Open Meeting Law and other administrative legal actions and have worked with other entities in this capacity and that this would work for the District and that if they required assistance on legal water matters he would hope that they would contact George, but that they would handle the day in and day out legal matters.
Jeff McKenna with Barney McKenna & Olmstead was present and stated that he saw the ad in the Nevada Lawyer and contacted the VVWD, but he received no additional information and would like the opportunity to also work with the District. Mayor Susan Holecheck commented that she felt that the District would be well served from either of the firms present today, but felt that the board should verify with their current attorney if it is appropriate and/or legal for a board member to participate with only certain agenda items. George Benesch again directed the board back to the agenda item.
Bubba questioned Bo Bingham and Eric Wilbanks if they had looked at the performance of the Water Board in the past year, and how their services would help the VVWD Board’s performance and better organize meetings, contracts, and some of the other performances that they have to do. Bo answered that he has attended a few meetings and has read the newspaper articles.
Bo informed the board regarding Mayor Holecheck’s question of the appropriateness or legality of a board member participating telephonically, that there was nothing specifically in NRS Section 241 regarding this issue, nor did he think there would there be any case law on this issue; but as a matter of practice, you would always want to have a full board present. Bo further stated that he felt that they could offer significant assistance on general laws, contracts, litigation, Open Meeting Law and agenda items. Bo conceded that they were not water law experts and would go outside for water laws. Bubba further asked if they would be able to assist with better background information for agenda items and Bo stated that they could assist staff to do this, but their role would be legal. Bubba stated that he understood that they would be on a retainer and not an employee and would bill hourly. Bubba further asked about the District belonging to the Pool Pact and if they would use that resource. Bo stated that he understood they would bill on an hourly rate and if they were getting a fair amount of work, their rate could be discounted. Bo further stated that he was aware of Pool Pact and that he has stated previously to other clients that if they are paying insurance premiums and the Pool Pact can assist that you should definitely take advantage of that.
John Paul questioned if they had an understanding from the RFP that they would attend board meetings and be available to give counsel and advice? Bo stated that “yes” he understood that board meetings were the first and third Tuesday of every month at 3:00 and if the board wanted them here, they would be here. John further asked about the agenda and the agenda items being clear and complete according to the Open Meeting Law (OML) and also the background material for agenda items and if they would be able to assist in putting this together; what it should consist of and being able to train some of the staff so that they could accumulate that as they go and to be mindful of it and to keep the records in place that would allow the board to have backup material available? Bo answered that absolutely they would be able to assist in this matter.
Cecil Leavitt questioned the need for Bingham & Snow if the Pool Pact was available, and Bo answered that would be up to the board, but they were willing to assist in any way they could. Cecil questioned Bo if they had an employee whose father sits on our Board and Bo answered that Marcus Smith would be an intern for a few weeks this year and had worked as an intern last year for them, but saw no conflict of interest. Cecil further asked if they represented other people or entities in the Virgin Valley concerning water issues that would cause conflict or opposition to the VVWD. Bo answered that they had represented people/companies in the Valley that do own water rights, but that the rules of professional responsibility pertaining to attorneys is very clear and if we have a conflict of interest they [attorneys] cannot represent a party against another; and attorneys and their firm take this very seriously. Bo further stated that they have declined representation on a number of matters that he would have liked to be involved in but they just couldn’t do it. They have to maintain the ethical rules. Primarily, if you have inside information on one transaction, you cannot use that information on another transaction.
Bubba asked about “Robert’s Rules” and his frustration on serving on the board with the lack of structure and asked if Bo had any feelings about parliamentary procedure and Robert’s Rules and how we could adopt and incorporate those procedures. Bo stated that these rules exist and that they are tried and true and felt that it would be in the board’s best interest to apply them.
Ted inquired about the other municipalities that Bingham & Snow have or currently represent. Bo mentioned several entities that they represent and that they are licensed in Utah, Arizona and Nevada.
Bo concluded that he was happy to answer any questions that the board had and welcomed the opportunity to assist the VVWD and hopefully work together. He further stated that they would be able to help on issues that have come up before the board, especially those that were mentioned today; but at the end of the day, it was up to the board to decide what would be best for the District and hopefully they could help.
Bubba questioned about hearing from other firms. Kenyon commented that he felt that the board’s responsibility was to interview more than one firm. Mike Winters asked about current cases that the District was involved in and stated that his assumption was that George would continue to handle these matters. Ted stated that we wanted to retain these attorneys for our legal matters and if they couldn’t handle those case(s), that they would look to another attorney to assist and hopefully they would look to George Benesch to handle these water issues. Mike asked if we would still be retaining George for water rights and other water issues. John Paul commented that he expected we would. Kenyon commented that we had an attorney now for water issues and the reason for the new attorney was for administrative issues.
Bubba disclosed that he had a son in law school who would intern for Bingham & Snow for five weeks and his son is aware that he would not be able to participate or be involved with any issues for the Water District because of his position on the board, which he serves on at the pleasure of the mayor. John Paul questioned Bubba if he had any indebtedness to Bingham & Snow and Bubba stated that he did not.
Ted Miller made a motion to retain Bingham & Snow for professional services for Administrative Legal Counsel for the VVWD. Bubba Smith seconded the motion.Cecil Leavitt questioned if a majority of the vote was no if this would exclude Bingham & Snow from being the legal counsel. George stated that you could structure the motion any way you wanted and if you wanted to interview another firm he would hope that Bingham & Snow would not be precluded from consideration.
John Paul called for a vote and the motion passed by a vote of 3 to 2 with Cecil Leavitt and Kenyon Leavitt opposed.
Mike asked if we should set up a time with Bingham & Snow to negotiate a price and was directed to do so.8. General Manager’s Report
Mike had not included a written report. Mike informed the board that the District had received a certificate of completion for the arsenic site at well #28. Mike Chandler reported that site #28 was about 75% automated with sites #32 and #31 about 50% automated. Mr. Chandler further stated that after this week, sites 28 and 31 would be fully automated with site #32 coming in fully automated within two weeks. Mike Winters further informed the board that a Colonel with the ACOE would be here for a site visit on July 15th. Mike also informed the board that he had applied for another grant from the ACOE and the VVWD will be receiving an additional 4.8 or 4.9 million dollars. John Paul President of the Water District immediately congratulated Mike Winters, General Manager, for securing that money for that grant. Mike stated that the last payday had approximately 70 hours of overtime (OT) between two people and that was cut down to 15 hours between 3 persons, but now we had OT due to leaks again. Mike stated that he had sent out a request for bids to other contractors for their price per linear foot for labor to assist in fixing leaks if we would need it. Mike further stated that he has been working with Bowen & Collins on PRV sites for the north side of the freeway to cut the pressures in some areas. Mike stated that George Benesch had drafted a letter to Lincoln County and forwarded the letter the day after our last meeting stating that the District would not be submitting a proposal to service the Lincoln County Land Act in July because of the change of circumstances.
9. Hydrologist’s Report
Michael had not included a written report. He informed the board that well #30 had been turned on and was pumping water for the first time in several years. Boomer had called the board members for approval to rent a larger crane because of the weight so the pump would not be dropped and he will have the invoice ratified at the next meeting. Boomer further stated that the pump being set at 2,200 feet was the deepest setting on the planet and it worked. Boomer will also have a meeting with RBF Consulting next week regarding aquifer storage.
10. Public Comment
Sandra Raymaker commented that she was surprised how ill prepared the Board is and the fighting amongst themselves and mentioned that AWWA could be a good source of assistance to the District.
11. Adjournment
President John Paul adjourned the meeting at 5:21 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - JULY 21, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on July 21, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, Bo Bingham & Eric Wilbanks District Administrative Counsel, Michael “Boomer” Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Kenyon Leavitt offered a Prayer and Cecil Leavitt led the pledge.
Public Comment – Don Paff of Bunkerville read a statement regarding his opinion of the hiring of the District’s Administrative CounselDiscussion: Board Comments - None
President of Board Comments - None
CONSENT AGENDA:Cecil questioned item #4B and if this item should be removed from the consent agenda and heard along with item “10” since it depended upon item “10” being approved if this purchase order was necessary. Cecil also requested that items #5 and #6 both be moved on the agenda to after the Hydrologist’s Report.
John Paul questioned item #2 of the minutes on page 6 in the last paragraph running into page 7 that he wanted the minutes to include that after Mike Winters informed the board that he applied for another grant with the ACOE and VVWD will be receiving an additional 4.8 or 4.9 million dollars that John Paul, president of the Water District immediately congratulated Mike Winters, General Manager, on securing that money for that grant.
Bubba Smith made a motion to approve the consent agenda with items 1 and 3 as written; approve item #2 with corrections as John Paul requested; item 4B removed from the consent agenda and heard with item #10; approve item 4A as written; and items 5 and 6 being moved on the agenda to after item #12. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-01. Discussion & Action - Approve Agenda – Item 4B to be heard with item #10 and items #5 and #6 to be discussed after item #12.
2. Discussion & Action – Approve Minutes from 7/7/08 Regular Board Meeting – correction to page 7 to include after Mike’s comments about receiving an additional 4.8 or 4.9 million dollars from the ACOE. “John Paul, President of the Water District immediately congratulated Mike Winters, General Manager, on securing that money for that grant.”
3. Discussion & Action – Approve Bills Paid - $326,675.24
4. Discussion & Action – Approve Purchase Orders Over $2,500
a. Ruesch Machine – Ratify $11,500 – Crane Rental for Well #30
** End of Consent Agenda**
7. Discussion & Possible Action – Consideration to Approve a Donation to the Mesquite Cancer HELP Society
Yoli Bell representing the Mesquite Cancer HELP Society handed out the organization’s Mission Statement and another form stating what their goals are and what they provide. The original letter requested $2,250 for their 5th annual “In the Pink Fundraiser for Cancer” to be held on October 24, 2009, but Yoli stated that they would be willing to accept any amount that the District would be willing to donate.
Cecil Leavitt made a motion to approve a donation of $500 to the Mesquite Cancer HELP Society. Bubba Smith seconded this motion and it was unanimously carried. 5-0
8. Discussion & Possible Action – Consideration to Purchase Five (5) Shares of Bunkerville Irrigation Water With a Lease Back Option – Requested by Bob Draskovich
Bob Draskovich requested that the District purchase five of his Bunkerville Irrigation Shares for $80,056.23 per share or $400,281.15 for all five shares and to lease them back from the District for $300 per share for a five-year period. Bob stated that he would like the shares to stay in the valley, but if the District opted not to purchase these shares, he would be selling them to SNWA. There was discussion regarding the amount of money in the Ordinance II accounts for purchasing water shares and monthly payments that need to be paid from these accounts. Kenyon Leavitt commented that since the board had opted to set the Ordinance II fees back to $3,300 per ¾” meter (this equals out to $33,000 per Bunkerville Share) and that this just didn’t pencil out to purchase Bunkerville Shares for $80,000 plus. Kenyon further stated that growth needs to pay for growth and if the District wants to purchase water at the higher cost, then they need to increase the amount they charge for Ordinance II fees.
Mike Winters commented on the amount of money in the Ordinance II accounts and that these Ordinance II accounts are specifically for purchasing water shares. Mike further stated that the District had the possibility to sell or lease their shares to the SNWA.
Bubba stated that the item on the agenda today was not Ordinance II fees, but to purchase irrigation water. Bubba asked if it was worth banking water purchased at over $80,000 and that it would take over 166 years to recoup the money spent on purchasing the shares if only leased for $300 per share. Bubba questioned the need to purchase water and what was going to happen down the road. Also, Bubba questioned leasing the water for five years when he thought we didn’t want to tie them down for that long a period and that the District was only leasing for one year.
Ted Miller thanked Bob Draskovich for coming to the District first to sell his shares, but that he felt the District just couldn’t afford to purchase the shares at this time.
Bob stated that he would be willing to lease the shares on a year to year basis.The item died for a lack of a motion.
9. Discussion & Possible Action – Consideration to Approve Professional Service Agreement with Southwest Geology, Inc. for Geologic Support to the District Not to Exceed an Amount of $15,000
Boomer informed the board that this was a budgeted item and that geologic support is anticipated for water resource investigations to meet the increased service area demands associated with growth in the basin. Boomer further stated that Southwest Geology has prepared hydro geologic reports for the VVWD and has appeared as an expert witness in the Tule Desert Hearing and hydro geologic data review presented by Lincoln County Water District and Vidler Water as part of the VVWD protest associated with Tule Desert. Boomer stated that Gary Dixon along with Terry Katzer had identified the site for well #34.
Cecil Leavitt made a motion to approve the professional service agreement with Southwest Geology, Inc. for geologic support to the District in an amount not to exceed $15,000. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
10. Discussion & Possible Action – Consideration of Amendment to Professional Service Agreement with Layne-Christensen for Pumping Equipment for VVWD Well No. 30
Boomer informed the board that the District had previously executed a professional service agreement with Layne-Christensen for engineering and fabrication of the line shaft turbine bowl assembly and installation of the pumping equipment in VVWD Well 30. In his memo to the board he included a time table of events that have occurred with VVWD Well 30 concluding that the well had to be shut down due to an electrical overload and that the pumping equipment must now come out. Boomer further stated that we don’t know what issues we are dealing with until the pump is pulled. Boomer believes that this is still a viable option since it is one of our best wells and is a back-up to well #31. Cecil asked questions regarding “Exhibit A” and the assumptions numbered one through seven. John Paul questioned Boomer that in the past he has stated that this is the deepest pumping well for water and hoped that this was not a factor in the District moving forward with this and Boomer stated that it did not but that he believed this was the best scenario to get the longevity out of the pumping equipment. Kenyon Leavitt asked what if you looked at the pump and then decide it is not worth it; but Boomer stated that he was not looking at that scenario. Mike Winters stated that he submitted a claim to Diane Padilla with the Pool Pact, but was not sure if anything would be covered.
Bo Bingham wanted the minutes to reflect, and the board to be aware, that under NRS 332 if you are going to spend more than $50,000 in any given year that you are subject to the competitive bid process. Bo stated that after speaking with Mike that this could be a potential emergency exception, but he felt that there were a couple other exceptions that fit more squarely with this situation. It is Bo’s understanding that part of the work will be engineering and potentially you are under the professional services exception; but most importantly under NRS 332.115 if you are going to repair or provide maintenance, especially if this is from one specific source, you can be outside of the competitive bid process. Bo stated that if the board was inclined to make a decision today to approve this, we want to make sure that the minutes reflect that this was considered and that was the reason the competitive bid process wasn’t implemented in this situation.
Cecil Leavitt made a motion amending the professional service agreement with Layne-Christensen for pumping equipment for VVWD Well No. 30 in an amount not to exceed $180,000. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
4. Discussion & Action – Approve Purchase Orders Over $2,500
b. Ruesch Machine - $20,000 – Pull & Re-Install VVWD Well #30 Line ShaftBubba Smith made a motion to approve purchase order 9100 to Ruesch Machine not to exceed $20,000 to pull and re-install VVWD Well #30 line shaft. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
11. General Manager’s ReportMike had not included a written report. Mike informed the board that he had received letters from SNWA last week indicating that they were still willing to buy or lease the District’s irrigation shares. There is no time limit and it is on a first come, first serve basis. Mike stated that if the board desired, he could put this on a future agenda for action. Mike stated that the District owns 12 Bunkerville shares and 188 Mesquite shares. Ted asked about the Bunkerville shares and if we were short shares for the secondary system. Boomer proceeded to explain that the District previously had 89 Bunkerville shares and the process of swapping them out and the other water rights applications transferred to the District from SNWA.
With no objection, John Paul asked for public comment and Quincy Edwards with Pulte Homes and Kraig Hafen had questions answered.
Mike continued to inform the board that Bowen & Collins would be at the next board meeting regarding PRV’s on the north side of the freeway. Mike stated that he had forwarded e-mails to all board members regarding purchasing a new truck and receiving no responses asked if the board desired to have this put on the next agenda for approval or if they would like to direct him to do so and they stated that he was directed to go ahead and purchase the vehicle from Mesquite Ford. Mike further stated that he was in Las Vegas last Friday for a deposition. Mike also informed the board that the Colonel from the ACOE was very pleased with what he saw and was anxious for the District to come up with other projects that the ACOE would be able to participate with. John Paul questioned the arsenic plants and their progress and Mike explained that they were more manual right now than automated.
12. Hydrologist’s Report
Michael had not included a written report. He informed the board that the pump from well #30 would be taken out of the ground and sent to California next week. Boomer also stated that he has been meeting with RBF Consulting regarding water rights and expectations with aquifer storage and will bring back information to the board.
5. Discussion – Discussion of Nevada Open Meeting Law and Its Application to the Virgin Valley Water District
Bo Bingham and Eric Wilbanks, District Administrative Legal Counsel, were present to discuss this and the next items. They provided each board member and staff with the current edition of the Nevada Open Meeting Law. Bo further stated that if the board had any specific questions or directions that they wanted Bingham & Snow to take to let them know. Eric also had prepared a proposal for compliance with Nevada Open Meeting Law and conduct of meetings. They proposed that for the time being that they prepare the agendas for the District’s meetings and Eric explained the procedures suggested so that the agendas were completed and ready for posting by the designated date and time. Eric also stated that the District should consider adopting rules to govern the conduct of its meetings and that they would review other procedures concerning complying with the Open Meeting Law.
6. Discussion – Discussion of Nevada Public Agency Insurance Pool (Pool Pact) Including Coverage and Resources Available to the Virgin Valley Water District
Bo began by stating that this was a minor issue and Dennis Cournoyer was also present to answer any questions the board may have. The general liability policy includes vehicles, flood insurance, worker’s comp and also includes director’s and officers’ liability and is renewed every July. The Pool Pact also assists with Human Resource issues and Risk Management. Bubba questioned how premiums were based and Dennis explained the process of rating individual entities and that the Pool Pact includes 136 different entities. Dennis’s records also showed that the District has not filed a worker’s comp claim since 1998
13. Public Comment
Sandra Raymaker of Mesquite made comments regarding the District’s website and water conservation.
14. Adjournment
President John Paul adjourned the meeting at 4:35 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE - AUGUST 4, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on August 4, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, Eric Wilbanks District Administrative Legal Counsel and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Kenyon Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments – Ted Miller read a note from Jackie Miller and Michelle Santos with Coldwell Banker Road Runner Real Estate thanking staff with their help regarding foreclosures.
President of Board Comments – John Paul stated that there had been a request for some sort of light board arrangement so he could tell when a board member wanted to speak. With no objection he wanted this put on a future agenda as an item. John further stated that he wanted to establish a more thorough clarification of understanding for the parameters or the criteria for leasing water in the future. John stated that it was his understanding that it was the intention of the VVVWD to provide water to people who have a genuine need locally within the District boundaries and also to clarify what the use is for; it is not the intent of the board to have a less expensive water cost for people who want to use it for substitution water and feels that this should also be on a future agenda to formulate some criteria. Mike questioned whether John wanted this as an agenda item or a workshop where there would be discussion between the board and public. It was decided that a workshop would be a great idea.
CONSENT AGENDA:Mike Winters requested that Item “5A” be pulled from the consent agenda and discussed separately.
Cecil Leavitt made a motion to approve the consent agenda, items 1-4 as listed below and item 5A being pulled and heard as the first item after the consent agenda. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-01. Discussion & Action - Approve Agenda – Item 5A pulled from consent agenda
2. Discussion & Action – Approve Minutes from 07/21/09 Regular Board Meeting
3. Discussion & Action – Approve Bills Paid - $1,477,895.93
4. Discussion & Action – Approve Purchase Orders Over $2,500
a. Mountainland Supply - $3,725.00 – PRV Cover on Pioneer & Falcon Ridge Pkwy
b. Dell Computers - $17,250.00 plus S&H – Server & 2 Work Stations** End of Consent Agenda**
5. Discussion & Action – Approve “Will Serve” Letters
a. Solstice Motorcoach Resort & Country Club Phase I – 50 EDU’sMike Winters stated that he had been approached by Mike Kennedy regarding the Ordinance II fees and the payment of these fees. Mike explained the District’s policy in that in order for Mike to sign off on the maps, all the Ordinance II fees must be paid before he will sign. Any change to that policy would require board action. Mike stated that George Rapson was here to approach the board and to discuss what they would like to do regarding the payment of Ordinance II fees. George Rapson representing Solstice Mesquite stated that they were making progress on the project due to the City helping with financing. The Ordinance II fees are $165,750.00 and they are not asking for an abatement or reduction of any sort, but are asking for help in paying this fee over six months; $50,000 up front and slightly less than $20,000 monthly until paid in full. This would help them through the critical phase of construction. John Paul asked if we were to comply with this request would they have any objection to giving dated checks so they could be deposited monthly and George stated that he didn’t know at this time if that would be possible. George stated that it would probably be two to three months after opening before the Ordinance II fees would be paid in their entirety. Kenyon Leavitt questioned Mike and asked what would happen if we got the down payment and one monthly payment, but then received no other payments? What would our recourse be since the meter would already be installed? Mike then stated that the agenda item is to approve this project for 50 EDU’s and does not believe that you can change the policy during this agenda item. Mike further stated that they needed the maps signed now so they could proceed right away. Bubba stated that it seems like the project will be complete before all payments are made. Mike explained the “will serve” process. Cecil stated that he felt as far as the Open Meeting Law (OML) is concerned and how the item on the agenda is listed, any deviation from the agenda item is a violation of the OML and they (Solstice) need to request an item be put on the agenda for deviation of a current policy. John Paul asked legal counsel for an opinion. Eric stated that the agenda item was to approve a “will serve” for this project and to do this the board must stay within the current policies and procedures of the District and if you are going to deviate from the standard policies and procedures to make concessions for Solstice outside of the standard policies and procedures then the board does not have authority to do that at this time. There was further discussion regarding variance of District policies and procedures.
Cecil Leavitt made a motion to approve a “will serve” letter to Solstice Motorcoach Resort & Country Club Phase I for 50 EDU’s contingent upon meeting the Criteria to Ordinance II. Bubba Smith seconded this motion and it was unanimously carried. 5-0
6. Discussion – Presentation by Mesquite Veterans Chapter 993 to VVWD Board
Dale Hoyt representing the Mesquite Veterans Chapter 993 stated that on behalf of this chapter and other local veterans groups that they would like to present to the VVWD Board with a certificate of appreciation for working with them in the waiving of some fees and allowing them to make payments over time for other fees. Dale presented a certificate to the board and all board members stated their appreciation for the certificate.
7. Discussion & Possible Action – Consider a Donation to the League of Women Voters of Mesquite for their Voter Services and Education Programs
Rosemary Gary representing the League of Women Voters stated that their request was for $500 to continue publishing the complimentary fliers on the candidates prior to the General Election. Bubba stated appreciation for all these groups and recognizes what they are trying to do. The District has $500 remaining for donations in this fiscal year.
Kenyon Leavitt made a motion to donate $500 to the League of Women Voters of Mesquite for their voter services and education programs. Ted Miller seconded this motion and it was unanimously carried. 5-0
8. Discussion & Possible Action – Consideration of Proposed Agreement Between VVWD and Bowen & Collins for the Design of Four (4) PRV Stations and Potential Authorization for the General Manager to Execute the Proposed Agreement with Bowen & Collins
Mike Winters stated that per the presentation given by Bowen & Collins for the District’s Water Resource Plan, they talked about four or five PRV stations on the north side of the freeway. The agreement attached authorizes Bowen & Collins three tasks: 1-Design, prepare plans, specifications and bidding documents for the project; 2-Bidding, Assist the District in obtaining and evaluating bids and in awarding a contract to construct the project; and 3-Construction, provide construction engineering services during the construction of the project. Construction surveying and materials testing would not be included. Mike further stated that he has received telephone calls from customers with their urging the board to approve PRV’s in their areas. Eric stated that they had reviewed the agreement and that it was pretty standard. Mike Chandler with Bowen & Collins was present and stated that he would be happy to entertain any questions the board may have. Bubba asked about timing. Mike Chandler stated that designing would require 2 to 4 weeks and bidding would probably be a week after that. Mike Chandler thought that construction could begin sometime after Labor Day. It was asked if this would satisfy the problem within Highland Fairways, who were on the agenda previously requesting assistance with the high pressure problems they were receiving. Mike Chandler stated that these PRV’s should take care of the entire north side of the freeway with the only remaining high pressure located around the Mesquite Commerce and Tech Center area; and with growth, this would alleviate most of those pressure problems.
Kenyon Leavitt made a motion to approve the proposed agreement between VVWD and Bowen & Collins for the design of four (4) PRV stations not to exceed $14,578.00 and authorize the General Manager to execute the agreement with Bowen & Collins. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0
9. General Manager’s ReportMike first wanted to go over the hydrologist report since Boomer was not present and updated the board that the pump at well #30 had been pulled and was in Fontana, CA being torn apart and inspected by Boomer and a representative from our insurance company. They found the problem to be a thrust bearing in the bottom of the bowls. The tapered bearing was off 1/1000 of an inch which caused undo wear and pressure and caused the bearing to fail. They are redesigning that with a different type bearing and will have modifications to the bowls. There will be less wear and tear on the pump itself. Mike was not sure of the date when it would be back into the ground. John Paul questioned if there would be a warranty and Mike stated he did not know that yet. Mike also reported that Boomer and Aaron were at the Virgin River Habitat meeting and stated that we were very close to getting that signed.
Mike also had included some information for the board from Bulloch Brothers Engineering regarding stabilization of the road leading to well #32 and the tanks. The road is 10 years old or so with some type II gravel, but sand continues working its way through. The arsenic project is about complete and we will still have large tanker trucks traveling this road and rutting it out. Travis Anderson with Bulloch Brothers Engineering was present and explained to the board the two options of stabilizing the road that they had provided. Travis stated that he thought it would be wise to do a test section before a full decision was made. Mike stated that he would get with Travis and see if they could try out the soil stabilizer on an “S” curve and that maybe the company would be willing to participate in order to possibly obtain our business.
Mike finished by stating that the District auctioned 188 irrigation shares and River View LLC would be leasing the shares for one year.
10. Hydrologist’s Report
Michael had not included a written report and was not present.
11. Public Comment
Rosemary Gary thanked the board for their contribution and Sandra Raymaker commented on the new website.
12. Adjournment
President John Paul adjourned the meeting at 3:55 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
AUGUST 18, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on August 18, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith arriving at 3:14 p.m. Also present were Michael “Boomer” Johnson, Eric Wilbanks and Bo Bingham District Administrative Legal Counsel, John Gleave District CFO and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:01 p.m.
Kenyon Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments - None
President of Board Comments – John wanted to offer his sincere heartfelt concern with Mr. Winters because his father had passed away over the weekend and that was the reason he was not present today. John Paul also stated that he would like to welcome one of our attorneys, George Benesch, to the meeting.
CONSENT AGENDA:John Paul stated that he had a brief comment on item #4 and asked about “utilities” as coded to 6110 and he was informed that this was the monthly electricity charge for wells only. Ted Miller asked that item #3 be pulled and that he had some questions for John Gleave since he was present.
Kenyon Leavitt made a motion to approve the consent agenda as listed below with item #3 being pulled and heard before item #5 under the regular agenda. Cecil Leavitt seconded this motion and it was unanimously carried. 4-01. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Minutes from 8/4/09 Regular Board Meeting
4. Discussion & Action – Approve Bills Paid - $193,495.35
** End of Consent Agenda**
3. Discussion & Action – Approve Financial Statement for May 2009
Ted thought that we should note and wanted to know if John Gleave could furnish financial statements monthly since we have some critical issues and if John could show comparisons to the prior year. Ted further stated that our cash flows are down considerably and that our credit card clearing had over doubled. Ted further stated that all spending should be cut back as much as we can and that we should be aware and that this was going to be a lean year. John Gleave concurred that this was going to be an interesting and difficult year.
Ted Miller made a motion to approve the financial statement for May 2009. Kenyon Leavitt seconded this motion and it was carried unanimously. 4-0
5. Discussion & Possible Action – Consideration to Approve Professional Service Agreement with TerraSpectra Geomatics for Geographic Information Services in the Amount Not to Exceed $25,000
Michael Johnson began by stating that we have been utilizing TerraSpectra professional services since 2000 for various projects. Their services have been used to evaluate geospatial distribution of the water resources within the Lower Virgin River Basin. Numerous digital databases have been developed for the District to assist in making effective decisions regarding development of the water resource and address potential impact that increased development may have on the existing and future projects. The District budgeted $25,000 for the fiscal year 2009/2010 for GIS development, but this does not mean that we will automatically spend that amount. It is billed per project and not an open purchase order. Eric Wilbanks stated that they had found a few typos and suggested to the board that they approve subject to review and corrections.
Kenyon Leavitt made a motion to approve the professional service agreement with TerraSpectra Geomatics for geographic information services in the amount not to exceed $25,000 subject to review and corrections from legal counsel. Cecil Leavitt seconded this motion and it was passed by a vote of 4 to 1 with Ted Miller opposed.
6. Discussion – Presentation by Templar Energy on a Bio Fuels Energy Project in the Lower Virgin River Basin
Boomer introduced the item stating that Templar Energy had approached the District on a potential bio-fuels project. Historically Boomer and Mike have had some interaction with Gary Williams on some water resources, specifically in the Beaver Dam Wash area. This project could potentially bring business into the Valley and this is just the first step in this process. Gary Williams CEO of Chemtec Energy thanked the board for giving him the opportunity to discuss potential business here in the Virgin Valley, Arizona Strip and specifically the Mesquite area. This region is one of three regions that Chemtec Energy is considering for the algae field business. Gary introduced himself, Milton Page, President of Chemtec Energy and David Bennett, liaison. Gary reviewed the Chemtec Energy profile, their products and services and their customer list. Gary stated that there is a problem in the declining crude oil reserves and that vision and solution to the problem could be in algae oil production. Algae is the most productive plant for oil content, a renewable source and grows on non-traditional farm land. Gary gave his reasons why the Arizona Strip and Clark County, Nevada would make a good location for operations. Gary went over operational requirements and described algae farm operations. Dave Bennett, liaison for Chemtec, stated that he had met Gary last year and answered a lot of his questions regarding the area and he has researched the product and feels that this is a real commodity and worth looking into. Gary stated that presentation was to educate and inform the board and public and that they were not asking for anything at this time. Gary answered numerous questions from the board and public.
7. Discussion & Possible Action – Consideration of Revisions and Amendments to Sections IV and VI of the Virgin Valley Water District’s Operating Rules, Regulations & Rates to Amend and/or Revise Ordinance 2 and Ordinance 2 Fees. Potential Action Includes, but is not Limited to, Clarification of Existing Ordinance 2 Policies and Criteria, Revision or Changes to Ordinance 2 Policies and Criteria, Adjustment of Ordinance 2 Fees and Revision or Changes to Security Requirements for Payment of Ordinance 2 Fees
Eric Wilbanks stated that at the very least it would make sense for an amendment to bring everything together. Ordinance 2 was amended at one point and it is a little difficult to read the original Ordinance 2 and the amendment together. There has been previous discussions regarding Ordinance 2 and some board members have even gone as far and stated that there should be a complete overhaul of Ordinance 2. Bubba questioned if the attorneys had any suggestions for change. Eric stated that the portion of the ordinance that states “payment in lieu of” is pretty clear. In the original Ordinance 2 language you can make payment in lieu of dedicating the water to the District by entering into an agreement with the District where the developer or whoever is responsible for payment of Ordinance 2 Fees can enter into an agreement where they provide security that is acceptable to the board. This could be a performance bond or deed of trust. Eric further stated that he feels that it would be better to create a document that clearly states that this is the arrangement. There was discussion on the name of the new document. John Gleave questioned the section of “payment in lieu of dedication” and that the section states payment made at the fair market value and the District is currently not doing this. Cecil explained how the fair market value is established. Boomer stated that the fair market value has always been what the board authorized the District to purchase water for. Boomer informed the board that groundwater was only 7% of the water in the basin and the remainder of water in the basin was surface water. Boomer further explained the permitting process. Kraig Hafen commented that the board should continue to buy Virgin River water and should charge what they are purchasing the water for. Quincy Edwards, developer of Pulte Homes, stated that residents are not using surface water in their homes and doesn’t feel that they should have to pay that much for Ordinance 2 fees. Cecil stated that they could bring the water then. Kenyon Leavitt stated that the last ground water purchased from John Lonetti was purchased for $15,000 an acre-foot and the board could establish this as the fair market value, which is much higher than the current fair market value of surface water at $8,700 per acre-foot. He further stated that we always have the asset. There continued to be a very lengthy discussion regarding Ordinance 2; the rechargeable water in the basin and the permitted water rights the District holds; agreements made with SNWA; establishing a fair market; the responsibility of the District to the public; growth paying for growth; aquifer storage; the amount the District leases water for, etc. Boomer stated that staff needs direction in order to proceed. Between the general manager, chief hydrologist and legal counsel, they can redraft and bring back at a later date without what the actual cost is and get a resolution to combine and simplify. It may take a couple drafts before finalized. Eric Wilbanks stated that the current ordinance does allow for the board to accept security for the payment of Ordinance 2 Fees so we do not need to make any changes to allow for that. The board would just need to agree upon what is allowable security for that. John Paul stated that staff had their direction for this item and closed item 7.
8. Discussion & Possible Action – Consideration of Payment Arrangements and Alternatives for Payment of Ordinance 2 Fees by Barcelona Partner’s, LLC and the Security to be Provided to the Virgin Valley Water District for Payment of Such Ordinance 2 Fees by Barcelona Partner’s, LLC
George Rapson, representing Barcelona Partner’s, LLC had submitted a letter requesting the District to grant a variance in the payment schedule of the Ordinance 2 Fees. Ordinance 2 Fees total $165,750.00. They are asking that the maps be signed by the District upon receipt of an initial down payment of $50,000 and allowing construction to begin at that time. Monthly payments would begin 30 days after the down payment for six consecutive months at $19,291.67. Eric Wilbanks stated that he has had conversation with Mike Kennedy regarding what type of security they could offer the District in regards to payment of the Ordinance 2 fees. Eric mentioned a performance bond, but was informed that with the current economy, it was difficult to get bonds approved. They are willing to sign an agreement whereas the District would shut off their water if no payments received and they could put the District on the Deed of Trust, but the District would be in the third position. The bank is in the first position and the City of Mesquite is in the second position. John Paul inquired about having them submit predated checks to the District, if this was a non-recourse agreement and if Eric had verified that they have legal counsel. Erik stated that he had not verified if they had legal counsel, he had been speaking with George Rapson and Mike Kennedy directly; Eric’s understanding is that this would be a non recourse agreement and he had not spoken to them regarding pre-dated checks. Cecil Leavitt stated that he had a problem with loaning $115,750 interest free for six months. George Rapson stated that it was a fair request to include interest. George Rapson stated that his request is to have water on with approximately 80% of the Ordinance 2 fees paid and that they would pay all the impact and connection fees before water was turned on. Kenyon stated he still had concerns regarding security and being the 3rd party on the deed of trust. Bubba stated that he was also not comfortable with being the 3rd party on the deed of trust and are we really secure with that and we also need to be aware of the precedence we would be setting. John Paul asked counsel about Barcelona Partner’s, LLC and if they would claim bankruptcy or about a default scenario. Bo Bingham stated that this could be drafted into the contract and say that this is not going to be something that would be deemed a covenant or a promise running with the land. This would be separate from the land itself and keep it entirely separate. Bo further stated that there were different things the board could do. Bo informed the board that they could put into the contract that if they default on any one of the payments, that the District would not continue to finance and that the fee would have to be paid in its entirety at that point before water would be available. The ordinance currently reads that the general manager has discretion to determine what is considered to be appropriate security and this might be better if the board has that authority. Kenyon stated that he liked the idea that if they were late on any payment, that the water would not be turned on until the Ordinance 2 fees were paid in full.
Kenyon Leavitt made a motion to approve a payment arrangement with Barcelona Partner’s, LLC for Ordinance 2 Fees with a $50,000 down payment due by August 31, 2009 with monthly payments of $19,291, plus a 10% APR due thirty (30) days after the down payment for six consecutive months and as long as these monthly payments are made on time, the District will turn the water on when they have reached 80% or when ready for service; if a payment is missed, payment in full will be required before the water will be turned on; the District would go on their deed of trust for the land as #3; this would be a non recourse agreement and subject to approval between both parties after District counsel drafts the agreement. Cecil Leavitt seconded the motion and it was unanimously carried. 5-0
9. General Manager’s ReportMike had not included a written report and was not present. The monthly arsenic treatment plant report was included within the packets and Boomer stated that the Hardy Way Site plant was coming along and that it was planned to have water running through the filters in within two weeks. The SNWA is entering into a big agreement with the state of Utah on Thursday on Snake Valley and our presence has been requested in support of the pipeline. Boomer feels that we should be supportive of the pipeline because it would be less stress on the District regarding water resources down the line and we have cooperatively worked with SNWA since 1994.
10. Hydrologist’s Report
Michael had not included a written report. He informed the board that there was a Virgin River Habitat Conservation (VRHC) joint basin field trip scheduled for October 4th and 5th in Mesquite. There is a meeting tomorrow in Las Vegas structuring the field trip that Boomer will attend and he will also be attending the SWAC meeting tomorrow. Boomer further stated that while on vacation in California the bowl assembly for well #30 was disassembled. It was decided to modify that bowl assembly. An insurance company rep was present at the facility and they are looking at our costs of pulling and reinstalling. Installation should be in two weeks. Boomer further stated that the District is conducting arsenic sampling weekly and all samples are coming back under 10 ppb.
11. Public Comment
There was no public comment at this time.
12. Adjournment
President John Paul adjourned the meeting at 6:16 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
SEPTEMBER 15, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on September 15, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Member Ted Miller. Board Member Robert “Bubba” Smith was not present. Also present were Michael Winters General Manager, Eric Wilbanks District Administrative Legal Counsel, John Gleave District CFO and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Cecil Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments - None
President of Board Comments - None
CONSENT AGENDA:Ted Miller questioned the invoice from George Benesch and why we were still receiving invoices. Mike Winters explained that George was still working with Boomer handling water rights issues, the Longview litigation and the Vanguard Pipe litigation. Ted stated that he thought we would only use Mr. Benesch if Bingham & Snow authorized. Cecil commented that the Administrative Attorneys, Bingham & Snow, have stated that their expertise is not in water rights or matters dealing with the BLM. John Paul stated that Bingham & Snow were designated as the District’s General Counsel, but that we have not removed Mr. Benesch’s duties as pertaining to the items mentioned by Mr. Cecil Leavitt. John Paul asked Ted if he would like to direct staff to make an item for the next regularly scheduled board meeting for discussion and decision. Ted stated that he would like to do that and he would forward something to Mary to put on the agenda.
Kenyon Leavitt made a motion to approve the consent agenda as listed below. Cecil Leavitt seconded this motion and it was unanimously carried. 4-01. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Minutes from 08/18/09 Regular Board Meeting
3. Discussion & Action – Approve Bills Paid - $1,611,351.28
** End of Consent Agenda**
4. Discussion & Possible Action – Consideration of the Potential Purchase of the Building Presently Owned by Bulloch Brothers Engineering in the Red Cliffs Commercial Center Located at 750 W. Pioneer Blvd., Mesquite, Nevada and Issues Related to Such Potential Purchase, Including, But Not Limited to, the Purchase Price for Such Building; Modifications to Such Building and the Costs of Such Modifications; Use of Such Building and the Virgin Valley Water District’s Existing Facilities and the Potential Purchase of Bulloch Brothers Engineering’s Existing Furnishings in the Building
A letter from Gregory Bulloch, President of Bulloch Brothers Engineering (BBE), was received inquiring if the District would be interested in purchasing their building located at 750 W. Pioneer Boulevard within the Red Cliffs Commercial Center. Mike informed the board that he had been approached by Bulloch Brothers a couple months ago and he spoke with John Paul and Cecil Leavitt and was instructed to obtain an appraisal for the property in question. Mr. Rick Smith performed an appraisal for the District in which the building appraised for 1.7 million dollars. BBE also had an appraisal on the building performed in February of 2008 and were proposing to sell their building to the District for $2,394,000 for 12,000 square feet, and if sold furnished, they would request an additional $200,000. There are currently two tenants within the building paying a combined lease amount of approximately $2,500 per month. Mike Winters again stated that the District’s current building is too small and in need of expansion. John Gleave, District CFO, informed the board that funds have been borrowed and the District is able to spend this money on designated capital improvements. Mike also stated that he had met with Chuck Bentley with Pride Construction regarding modifications to the building to satisfy the District’s needs and these changes could be made for $100,000 or less.
Ted Miller stated that the District currently has a debt of 43 million and the interest on this debt was $327,000 last month. Ted further stated that the bond payments were to be paid by growth and impact fees collected within the last four months would not pay the interest for one month; sales income is down; ¼ cent sales tax is down; and the District had a net profit last year of a negative $809.000 for the past 10 months. Ted also stated that there were over 1,500 finished lots within Mesquite that impact fees had been paid for and that Pulte had that many lots or more and it would be several years before we would be seeing any monies coming in. Ted thought that we should take these funds from the 2008 bond and reduce the District’s debt and that the District would most likely have to have a rate increase in the near future.
John Paul stated that he felt that there should be a full board before any decision was made on a matter of this importance and recommended tabling this item.
Kenyon Leavitt wanted to clarify something Ted had said and stated that even if the District reduced their debt with the $13 million by paying down bonds, we would still have to pay interest on the bonds. John Gleave stated that the District was paying 4.7% interest on the 2008 bond and you could not pay off bond directly, you would have to put it to some other type of investment, and it would earn 1 or 2%. It would be a loss of some type. You would reduce your debt service, but you would still have to pay the 4.7% interest. Mike Winters further commented that a new law has been passed and you cannot buy bond insurance for projects under $100 million and you would lose your AAA rating. Cecil questioned John Gleave regarding the District’s debt, fixed assets, percentage of increases on the rate payers and financially you have to look at more than just the liability, but you also have an asset. Mike Winters stated that the board needed to make a decision and that he has not heard anything from Bubba and didn’t know his feelings, but thought that the board should go ahead and vote and John Paul stated that he would be willing to go ahead and vote on this item today if that is what the other board members would like. Kenyon further stated that he had the same concerns as before about building or buying a building and that it is the timing and he feels that the bond money should be used for other capital improvement projects as the recharge system and drilling wells.
John Paul opened the item to the public. Ron Larsen with Mesa Construction wanted to hear from Eric Roberts with SH Architecture and also stated that the cost of construction has dropped 30 to 40 % and they, as others, spent money to meet specific criteria to meet the needs of the VVWD and this was not comparing apples to apples and they should have a chance to rebid. There was further discussion and comments heard from the public, Eric Roberts, Mike Winters and board members.Kenyon Leavitt made a motion not to pursue the purchase of the building presently owned by Bulloch Brothers Engineering. Ted Miller seconded this motion and it was carried by a vote of 3 to 1 with Cecil Leavitt opposed. 3-1
5. Discussion & Possible Action – Consideration of the Construction of a New Building to Serve as the Virgin Valley Water District’s Administration and Construction Offices and Related Issues, Including, But Not Limited to, the Design of Such Building; the Location of Such Building; the Possible Acquisition of Land for Such Building; the Construction of Such Building on Land Presently Held by the Virgin Valley Water District in Bunkerville, Nevada; the Potential Sale of the Building Presently Occupied by the Virgin Valley Water District; and Solicitation and Review of Bids for the Construction of Such a Building
Kenyon Leavitt stated that once again we have kicked this dog over and over again and with his last motion, this just carries on and it is just not the time to build a building. Cecil Leavitt stated that if we voted no for spending 2.5 million on a building then we certainly would not want to spend up to 4 million or more on building a building.
Cecil Leavitt made a motion not to do anything with this item at this time and that we put the building to bed, period. Ted Miller seconded this motion.
John Paul opened the item to public comment. Larry Swensen with Westland Construction stated that you could re-bid the project and that you could build what you wanted for half the amount. Other comments were made regarding the Bunkerville site and that now was not the time for government to sit on money because it would bring jobs.John Paul called for a vote on the motion and it was carried unanimously. 4-0
6. General Manager’s Report
Mike had not included a written report. Mike stated that the last arsenic plant was just about complete and was scheduled to start up next week and that the water coming from the plants was well below the .10 ppb. Mike further stated that Boomer was up at well #30 and that was why he was not present and hopefully they would be starting well #30 by the end of the week. Mike also informed the board that he would not be present for the first meeting in October. Mike explained the correspondence regarding Southern Nevada Health District and if a sample came back bad and that additional testing would be required going back to the source, which of course would be more expensive.
7. Hydrologist’s Report
Michael had not included a written report nor was he present.
8. Public Comment
Joe Bowler asked if the board was not buying any water since they did not purchase Bob Draskovich’s water shares and was informed that the board does not have a policy not to buy and that they would consider buying on an individual basis. Kraig Hafen commented on the irrigation water and Mike Chandler stated that they were preparing to put the Hardy Way Arsenic Site on line and offered a field trip to the board members of the arsenic plants.
9. Adjournment
President John Paul adjourned the meeting at 4:23 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
OCTOBER 6, 2009Minutes of the Annual Board Meeting of the Virgin Valley Water District Board held on October 6, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Secretary-Treasurer Cecil Leavitt and Board Member Ted Miller. Vice-President Kenyon Leavitt, Board Member Robert “Bubba” Smith and Michael Winters General Manager were not present. Also present were Michael “Boomer” Johnson Chief Hydrologist, Bo Bingham and Eric Wilbanks District Administrative Counsel, John Gleave District CFO and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Cecil Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments - None
President of Board Comments – None
CONSENT AGENDA:Ted Miller requested that item #3 be pulled from the consent agenda and discussed prior to item #7.
Ted Miller made a motion to approve the consent agenda as listed below with item #3 being pulled and discussed prior to item #7. Cecil Leavitt seconded this motion and it was unanimously carried. 3-0
1. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve of Minutes from 09/15/09 Regular Board Meeting
4. Discussion & Action – Approve Bills Paid - $1,859,601.19
5. Discussion & Action – Approve to Write Off Delinquent Accounts - Account 2716.1 in the amount of $14.83
6. Discussion & Action – Approve Purchase Orders Over $2,500
a. Pride Construction - $36,120.00 – Site Prep & Maintenance of Access Road for Well No. 34
b. Legacy Construction - $35,850.00 – Fence at Hardy Site
c. Sundance Helicopters – Estimate $4,500 – Site Visits** End of Consent Agenda**
3. Discussion & Action – Approve Financial Statements for July and August 2009
Ted Miller was questioning if the board should not have a meeting held to discuss having some cuts made to bring the District back in line. John Gleave commented that cutting costs is always a good thing and that we are currently looking at a water rate structure. Morris Peacock with Hinton, Burdick commented that he had noted that the gross revenues were down and that most of the arsenic was funded by grants, but the operation and maintenance of the arsenic plants would have to be looked at and Morris felt that the District should be looking at a 5 year plan.
Ted Miller made a motion to approve the financial statements for July and August 2009. Cecil Leavitt seconded the motion and it was carried unanimously. 3-0
7. Discussion & Possible Action – Presentation of Annual Audit for Fiscal Year Ending June 30, 2009 by Hinton, Burdick
Morris Peacock representing Hinton, Burdick was present to review the audit with staff and board members and began by highlighting a few things. Morris started by reviewing the balance sheet and noted the arsenic construction in progress, water shares and investments and the money spent on these items. Looking at the Statement of Revenues, the water use fees are down and the District would require a lot more in reserves to take care of critical situations that can occur within the Water District. Morris further stated that this was the first time that the District has shown a net operational loss, but that most of that is due to depreciation. Depreciation is a non cash item and a lot of the infrastructure constructed was funded by non-operational revenues. Morris further explained his comments. Morris went over their findings and recommendations noting only one that he felt should be acted upon as soon as possible and that would be a Fraud Risk Management Program. The audit found nothing wrong, but the District should have a policy in place. At this point, John Paul made a recommendation that Boomer relate to Mr. Winters that the District should formally develop and adopt a “Fraud Risk Management Program.” Morris further stated that the segregation of duties with the same person signing checks and reconciling the bank statements was being handled to their satisfaction with someone else opening and reviewing the bank statements before they are reconciled and that John Gleave also reviews the bank reconciliations and signs off on them. Also, the District has direct deposit available for their employees’ payroll checks and the direct deposit reports should be reviewed by someone else other than the person who writes out the checks. The board and Morris were informed that a process of having the General Manager review and sign off on the payroll direct deposits had already been put in place since the audit occurred.
Cecil Leavitt made a motion to accept the audit as presented by Hinton, Burdick for fiscal year ending June 30, 2009 and included an accommodation to Hinton, Burdick for a job well done. Ted Miller seconded this motion and it was unanimously carried. 3-0
John Paul asked Cecil if he was requesting that a written accommodation be completed and Cecil stated that it wouldn’t hurt. John Paul directed Boomer to have Mr. Winters write an accommodation to Hinton, Burdick.
8. Discussion & Possible Action – Consideration of Removal or Forgiveness of Late Fees on Accounts Paid by Jensen Property Management – Requested by Fran Reese
The District received a letter from Fran Reese with Jensen Property Management stating that they had forwarded checks paying most of their commercial accounts early due to the holiday (Labor Day) and then they received late notices. The check did not reach the District, nor was it returned to Jensen Property Management so the checks must be somewhere between the post office and the District office. Due to the lost checks, Ms. Reese was formally requesting the District to issue credits on these accounts with the late fees. Ms. Reese was not present at the meeting. There was some discussion as to the District not returning late fees and why this was brought to the board and it was stated that the customer could always ask.
Cecil Leavitt made a motion to table this item for one month to see if the checks appeared and then decide whether to agree with it or not. Ted Miller seconded this motion and it was unanimously carried. 3-0
9. Discussion & Possible Action – Consideration to Approve Contact Lease Agreement with Reliance Connects for Placement of Antenna on the 2 Million Gallon Storage Tank Located in the Vista Del Monte Subdivision – Requested by Reliance Connects
Boomer stated that the contract document had been reviewed and revised by legal counsel, but that he had been handed an additional piece of information from City Manager Tim Hacker stating that Reliance Connects is required to obtain a “conditional use permit” from the City. Boomer stated that this should be one of the conditions of approving the agreement. Bo Bingham, District Counsel, stated that the board could approve subject to Reliance Connects obtaining a conditional use permit from the City.
Ted Miller made a motion to approve the contact lease agreement with Reliance Connects for placement of an antenna on the 2 million gallon storage tank located in the Vista Del Monte Subdivision contingent upon legal counsel’s approval and recommendations. Cecil Leavitt seconded this motion and it was unanimously carried. 3-0
10. Discussion & Possible Action – Consideration to Approve Settlement Agreement between VVWD and Longview Construction and Southeast Drilling, LLC and Underground Solutions, Inc.
Boomer stated that this was related to the directional drilling at the Bunkerville Bridge pursuant to the change order received and denied for payment by the VVWD Board. According to the agreement, the District would pay out to Longview Construction $7,000, Southeast Drilling,
$96,250 and Underground Solutions, $70,000. Boomer further stated that prior to the meeting Aaron Waite, Longview’s Legal Counsel, stated that they would not sign the settlement agreement and that they wanted $27,500 in lieu of the $7,000.Cecil Leavitt made a motion to not approve the settlement agreement between VVWD and Longview Construction and Southeast Directional Drilling, LLC and Underground Solutions, Inc. and not to sign the agreement. Ted Miller seconded this motion and it was unanimously carried. 3-0
11. Discussion & Possible Action – Consideration of Circumstances and Procedure for any Delegation of Matters by the District’s General Administrative Counsel to Outside Counsel
Bo Bingham stated that Ted Miller had requested that this item be put on the agenda. Ted stated that in light of the attorneys’ fees and trying to get a better handle on this, and just under good management policies, that we use a procedure where all our legal issues go to our present legal counseling (Bingham & Snow) for outside counseling and let them make the decisions as to who we need and for what purposes we need them.
Ted Miller’s motion was to use a procedure where all the District’s legal issues go to our present legal counseling (Bingham & Snow) for outside counseling and that Bingham & Snow would make the decisions as to when and whom the District required for other outside legal counseling. John Paul seconded this motion and it was carried by a vote of two to one with Cecil Leavitt opposed. 2-1
12. Hydrologist’s Report
Michael had not included a written report, but had included a “Mutual Aid Agreement” between numerous parties for the Nevada Water/Wastewater Agency Response Network (NVWARN). This would be a statewide agreement with numerous entities involved through AWWA. With this, the District could request assistance through this organization during emergency situations. Boomer further stated that there was a meeting tomorrow regarding this agreement and that there would be no costs to the District.
Boomer further informed the board that the District had not received its monthly payment from Barcelona Partners and that they were in default of the agreement with the District. John Paul stated that he imagined that this would be on the next board meeting to take some action if this was still the case. Bo Bingham stated that Michael was correct and that they are in default according to the agreement, the District would no longer finance their Ordinance II fees and further proposed that this be put on the agenda for any action at the next meeting.
Boomer and Mike had attended a meeting with the BLM regarding the tower at Well #30 site regarding a trespass order for Rebel Communication and that the BLM would remove the trespass order if VVWD had ownership of the tower. The District will use the tower for SCADA communications for arsenic facilities and mobile communications to our trucks. Our existing agreement with Rebel Communications would need amended.
Well #30 has been operation for last10 days and working very well. Next week there will be a meeting in Mesquite regarding the Virgin River Water Shed and there would be a meeting with
Bureau of Reclamation on Friday regarding the Half-Way Wash project and the Ranney Well.13. Public Comment
There was no public comment at this time.
14. Adjournment
President John Paul adjourned the meeting at 4:08 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
OCTOBER 20, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on October 20, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Member Ted Miller. Board Member Robert “Bubba” Smith was not present. Also present were Michael Winters General Manager, Michael “Boomer” Johnson District Chief Hydrologist, Eric Wilbanks District Administrative Legal Counsel, John Gleave District CFO and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Kenyon Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – Don Paff of Bunkerville addressed the Board Members in letter format regarding the hiring of Bingham & Snow as District Legal Counsel.Discussion: Board Comments - None
President of Board Comments - None
CONSENT AGENDA:Mike Winters wanted to clarify the minutes on item #10 in that legal counsel for Longview Construction interpreted the newspaper article as stating the District had agreed to the settlement agreement and Mike wanted to make it clear that the motion was not to approve the settlement agreement and that the settlement agreement would not be signed. Eric Wilbanks stated that in item #12, second paragraph, that he believed a board member had originally suggested that the matter of the Barcelona Motorcoach contract be placed on the next agenda and that Bo Bingham had reiterated that the issue could be placed on the next agenda. Eric Wilbanks indicated that he believed John Paul had originally stated that the Barcelona Motorcoach contract should be placed on the next agenda. Eric Wilbanks also indicated that he would like the minutes for item #12 to be corrected if his memory of the events was correct. [After re-listening to the minutes, President John Paul did state that “he imagined that this would be on the next board meeting to take some action if this was still the case”, and Bo Bingham did say ….. “what we would propose is that we would put this on the next agenda and the board can decide to take any action…..”]
Kenyon Leavitt made a motion to approve the consent agenda as listed below with the minutes of the October 6th meeting held off until we know for sure the clarification of item #12. Cecil Leavitt seconded this motion and it was unanimously carried. 4-01. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Minutes from 10/6/09 Regular Board Meeting-Held off until clarification of item #12 at the next meeting.
3. Discussion & Action – Approve Bills Paid - $177,752.39
4. Discussion & Action – Approve Purchase Orders Over $2,500
a. National Auto Tools - $2,900.00 – Maintenance Equipment to Mount & Balance Tires
b. Singer Valve - $16,302.40 – Pressure Reducing Valves for 2009 PRV Project** End of Consent Agenda**
5. Discussion & Possible Action – Consideration to Purchase Up to Eight (8) Bunkerville Irrigation Shares from Bunk Farms, LLC – Requested by Bunk Farms, LLC
Mike stated that the District received a request from Trent Graves and Duane Magoon, representing Bunk Farms, LLC to sell eight shares of Bunkerville Irrigation water at $80,056.23/share for a total of $640,449.84. Mike added that these shares were currently leased by SNWA as of 10/1/09 for a two year term and Bunk Farms, LLC had received a lease amount of $22,340.48 for the first year of the lease and that this amount could be deducted from the purchasing price for a total of $618,109.36. Preliminary talks with SNWA conclude that they would continue with the lease with the VVWD if these shares are purchased. Cecil explained that we should figure out an amount that Bunk Farms, LLC where they receive the first month lease amount since it was effective October 1st and it will be more toward the end of the month before the District would purchase and the District would only be entitled to 23 months of the lease. Mike asked if you could make a motion not to exceed the $640,000, plus change? Eric Wilbanks stated that we could purchase contingent upon appropriate adjustments. Ted questioned if SNWA was still leasing water and the length of time it would take the District to make their money back if they did lease to SNWA. The GM and other board members stated that we were purchasing an asset and that we could sell the water or we need the water for future needs and we were not trying to re-coup our money. Kenyon further stated that we did not purchase Bob Draskovich’s water because we did not have the funds in the ordinance II account, but if we can purchase water from the 2008 bond, we should purchase all the water we can. Ted stated that we could take the money from the 2008 bond and pay off, or down, debt. John Gleave stated that you can allocate or refund money to the bonds and he explained how it was more flexible than he first thought. Cecil then explained the District’s bond rating and how that could be damaged.
Kenyon Leavitt made a motion to purchase eight (8) shares at $80,056.23 per share from Bunk Farms, LLC and that the General Manager work out with them regarding the lease agreement with SNWA and also added on to that we continue on with the lease agreement with SNWA for the duration of the two years. Cecil Leavitt seconded this motion and it was carried by a vote of 3-1 with Ted Miller opposed. 3-1
6. Discussion & Possible Action – Consideration to Purchase Thirty-Five (35) Bunkerville Irrigation Shares from Cresent Hardy – Requested by Cresent Hardy
Mike stated that this was the same as the last item in regards to a lease with SNWA and the purchase price was $80,056.23/share or $2,801,968.05 and with the lease amount deducted in would only be 2.7 million total. Duane Magoon stated that he did not think that Cresent’s shares were leased by SNWA. There was further discussion regarding the price of water and how it has changed through the years. Duane Magoon spoke and stated that he had just spoken with Cresent Hardy on the telephone and he did not lease his shares to the SNWA.
Kenyon Leavitt made a motion to purchase thirty-five (35) Bunkerville Irrigation shares from Cresent Hardy for $80,056.23 per share. Cecil Leavitt seconded this motion and it was passed by a vote of 3 to 1 with Ted Miller opposed. 3-1
7. Discussion & Possible Action – Consideration of Handling of, and Operation Under, Ordinance II Agreement with Barcelona Motorcoach, LLC Following Breaches of Said Agreement by Barcelona Motorcoach, LLC
Eric Wilbanks stated that the back-up materials provided summarized the situation. Basically the payments that were to be made under the Ordinance II agreement thus far have been late and in addition, the Deed of Trust to be provided against the property and it was to be executed along with the initial agreement and recorded and that was not done until mid October, so there have been multiple breaches. Mr. Mike Kennedy stated that he did not receive the final draft of the agreement until after 5:00 p.m. on August 31, 2009. Mr. Kennedy stated that after he reviewed the agreement he sent a check without an executed agreement and his understanding was that there was no specific date as which the Deed of Trust was to be recorded and did not think that they were in breach of the contract. He further stated they were acting in good faith and would continue to do so and that he was giving his assurance that future payments would be received at the District on time. John Paul asked for counsel’s opinion. Eric Wilbanks wanted to clarify a couple issues raised by Mr. Kennedy that he was correct on the initial agreement and it was not finalized until approximately the 1st or 2nd of September. As far as the execution of the Deed of Trust, the agreement itself specified that the Deed of Trust was to be executed contemporaneously with the agreement, so there was a deadline set within the agreement. After Eric realized that this document had not been provided, he left a few voice messages with Mr. Kennedy checking up on the status and this was followed up by e-mail and we did finally get a copy of the Trust Deed. The one that has been recorded is not actually the one that Bingham & Snow office drafted and believes that the Trust Deed that Bingham & Snow drafted would be more preferable for the District and would provide more protection for the District and they would want to file this Trust Deed if the District wishes to continue with the contract. Mr. Kennedy commented that he has been in touch with the title company and they are awaiting the Trust Deed prepared by Bingham & Snow and when received they will replace it with the one that is filed now. There was further discussion as to when they required water and that both parties actually having been at fault for delays.
Cecil Leavitt made a motion that the Ordinance II Agreement with Barcelona Partners, LLC be reinstated as written with the two different violations taken into consideration and that the payment is due October 31, 2009 for October’s payment and if the payment is not received by 5:00 on the 31st of October; the violation then carries through with the terminology and the penalty for the agreement as it is written. Kenyon Leavitt seconded this motion and it was unanimously carried. 4-0
8. General Manager’s ReportMike had not included a written report. Mike informed the board that he would have an item on the next agenda for the board to consider regarding having moved the emergency generator from well #30 to well #31 and now it will not start due to rats having chewed through the wiring. Mike further stated that he has been given a quote of over $100,000 to repair the generator, but he would like them to come here and pick up the generator and have them check it out before any repairs are done and he is also looking at other alternatives.
Mike Chandler was present and updated the board on the arsenic plants stating that all five sites were operational; and that the seven day test at the Hardy Way Site has been completed.9. Hydrologist’s Report
Michael had not included a written report. He informed the board that he had attended the Virgin River Water Shed meeting and tour and that they had gone from Cedar Pockets to Halfway Wash where tilapia was found where we were planning on putting the Ranney Collector. Boomer further informed the board that he would have the aqua guard treatment on the next agenda for approval. Well #31 production has dropped off and he would like to pull and do pump maintenance before this well is needed for peak production. Well #30 has been running since September 29th. The Bureau of Reclamation is looking at amending the agreement at Halfway Wash.
10. Public Comment
There was no public comment at this time.
11. Adjournment
President John Paul adjourned the meeting at 4:20 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
NOVEMBER 3, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on November 3, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, Michael “Boomer” Johnson Chief Hydrologist, Eric Wilbanks District Administrative Legal Counsel and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:03 p.m.
Kenyon Leavitt offered a Prayer and Bubba Smith led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments – Ted Miller commented that last month the District was in the black and asked Boomer some questions regarding the annual aquifer recharge.
President of Board Comments - None
CONSENT AGENDA:Kenyon Leavitt stated that in the October 6th minutes, there needed to be a period in the first paragraph after Ted Miller’s name stating who was present and before “Vice President” and the members who were not present.
Kenyon Leavitt made a motion to approve the consent agenda as listed below with the correction to the 10-6-09 minutes as stated above. Cecil Leavitt seconded this motion and it was unanimously carried. 5-01. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Corrected Minutes from 10/6/09 Regular Board Meeting with correction to the first paragraph inserting a period after Ted Miller’s name and before “Vice President”
3. Discussion & Action – Approve Minutes from 10/20/09 Regular Board Meeting
4. Discussion & Action – Approve Financial Statement for September 2009
5. Discussion & Action – Approve Bills Paid - $852,548.44
6. Discussion & Action – Approve Purchase Orders Over $2,500
a. Subsurface Technologies - $125,945.00 – Aqua Gard for Wells 30, 31, 32 & 33
b. Ritchie Brothers – Not to Exceed $30,000 – Backhoe for Arsenic Plants
c. Construction Group International - $16,951.00 – Transfer Emergency Generator to Las Vegas and Cost Estimate to Repair7. Discussion & Action – Approve Employees’ Thanksgiving Gift Certificates & Christmas Bonuses
** End of Consent Agenda**
8. Discussion & Possible Action – Consideration to Sponsor Party 4 Life – Requested by Karey Belanger Party 4 Life
The Party 4 Life Charity requested a contribution to their event. Mike stated that the Board budgeted $5,000 for donations this fiscal year and that all funds budgeted have been depleted. Ted Miller suggested that the District forward a letter to the organization stating that all funds for this fiscal year have been used and that they could contact us after the District submits their budget for the next fiscal year.
The item died for a lack of a motion.
9. Discussion & Possible Action – Consideration of Reimbursement or Refund of Ordinance II Fees Received for Units of Calais Townhomes – Requested by Advanced Construction
Advanced Construction paid Ordinance II fees for 14 lots, to be serviced by ¾” meters and a 1” meter for landscaping for the Calais Townhomes. They then paid Ordinance II fees on two of the lots to upgrade to 1” meters, but then decided to only use ¾” meters on those lots. They were requesting the extra Ordinance II fees paid to upgrade to the 1” meters returned. District policy states that Ordinance II fees are non-refundable, but they would be able to use these fees paid for other lots or landscaping for either two (2) ¾” meters or one (1) 1” meter. Trent Graves representing Advanced Construction stated that he thought that they had double paid the Ordinance II fees, but Mary explained that they only paid for the upgrade to the 1” meters because a ¾” meter is considered one EDU (Estimated Daily Usage) and a 1” meter is considered as two EDU’s.
This item died for a lack of a motion.
10. Discussion & Possible Action – Consideration of Moving Meters Located on Certain Lots or Units in Calais Subdivision
Advanced Construction has paid the impact and connection fees for two lots within the Calais Subdivision and are currently paying a $4 a month for a locked meter. There are no homes constructed on these lots and no plans to have homes constructed on these lots in the near future. There request is to move the meters paid for on these two vacant lots to other lots within this subdivision that homes will soon be constructed upon. Within the District’s Rules and Regulations, Section VI, Subsection VI-2, the District policy states that the meters installed are owned by the District and that meters are non-transferable and remain with the property. Trent Graves representing Advanced Construction explained their situation and why they wanted to have the meters moved.
Kenyon questioned the policy for Ordinance II and the money was non-refundable, but the District would honor the money paid and move the Ordinance II fees to another lot and why wouldn’t the District do the same in this situation. Cecil read the policy from the Rules and Regulations. There was discussion regarding putting a lien on the property and an empty lot versus a lot with a constructed home and if changed, it would be done on a case by case basis. Eric Wilbanks stated that if the District would like to transfer the meters, an amendment to the Rules & Regulations should be done with specific parameters and criteria. Mike Winters questioned if the board were to approve their request, would we move meter first or amend the Rules & Regulations first? Eric stated that his preference would be to table this item and amend the Rules & Regulations first.Cecil Leavitt made a motion to table this item until the first meeting in December and directed the General Manager and legal counsel to amend Section VI of the District’s Rules & Regulations. Ted Miller seconded this motion and it was unanimously carried. 5-0
11. Discussion & Possible Action – Consideration of Removal or Forgiveness of Late Fees on Accounts Paid by Jensen Property Management – Requested by Fran Reese – Tabled from October 6, 2009 Meeting
Mike explained to the board why this type of complaint keeps coming before them in that customers often have complaints or concerns regarding their account and when they are not given the answer they want to hear from the billing department, they request to speak to him and when he does not give them the answer that they want to hear they then request to have the board hear their complaint. They are not satisfied with the answer of this is District’s policy. Cecil stated that he had this item tabled at the last meeting to see if the checks showed up, which they had not.
Cecil Leavitt made a motion to deny the request for removal or forgiveness of late fees on accounts paid by Jensen Property Management. Bubba Smith seconded this motion and it was unanimously carried. 5-0
12. Discussion & Possible Action – Consideration to Approve Memorandum of Agreement Between the Furman Group, Inc. and the VVWD
Bubba Smith commented that legal counsel suggested that we establish some parameters whether by hour, by job, etc, and he understands it is a professional service, but he is not sure how you would qualify the circumstances with the work that they do. John Paul asked if we should expand on #2 of the Memorandum of Agreement “Purpose” where only two projects are listed. Bubba stated that may be nice, but sometimes things just come up that they have to do and in the long run it may be more expensive if we were to pay them per project or hourly. Bubba further stated that he believed that the Furman Group’s services were invaluable and the District should not go away from their services. There were further comments on the grants that have been obtained because of the Furman Group’s services.
Cecil Leavitt made a motion to approve the Memorandum of Agreement between the Furman Group, Inc. and the Virgin Valley Water District as listed. Kenyon Leavitt seconded this motion and it was passed by a vote of 4 to 1 with Ted Miller opposed.
13. General Manager’s ReportMike had not included a written report. Mike informed the board that he has been in contact with the insurance company regarding the emergency generator. There will be a representative here on Thursday to look at the generator and take some pictures and then we will have it shipped to Las Vegas to see about repairs and it may be covered by insurance. Regarding arsenic, Mike stated that there has been a couple glitches with the automation on wells 26 and 27 and they were being addressed, but they were still operable by hand so if we need the water we can still turn that on.
14. Hydrologist’s Report
Michael had not included a written report. He informed the board that production was down on well #31 and this could be due to the bowl and if we pull it now we may not have to replace the bowl, but only repair it. Tomorrow morning there is a meeting with preliminary analysis on the aquifer recharge. When the report is completed it will come before the board. Boomer further stated that depositions begin tomorrow on the last Tule Desert ruling that came out and the appeal of that ruling by Vidler Water. Boomer and Mike will give their depositions on the 12th of this month. Boomer also stated that well #30 had been shut off and restarted with no complications.
15. Public Comment
There was no public comment at this time.
16. Adjournment
President John Paul adjourned the meeting at 3:56 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
NOVEMBER 17, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on November 17, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. President John Paul was not present. Also present were Michael Winters General Manager, Michael “Boomer” Johnson Chief Hydrologist, Eric Wilbanks District Administrative Legal Counsel and Mary Johnson taking minutes and other interested parties of agenda items.
Vice-President Kenyon Leavitt called the meeting to order at 3:02 p.m.
Bubba Smith offered a Prayer and Cecil Leavitt led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments – Kenyon stated that he would like to acknowledge Don Paff’s public comment, letter to the board and letter in the newspaper all addressed to the Virgin Valley Water District Board of Directors regarding legal counsel and would like to address Mr. Paff’s concerns and have this put on the next agenda.
President of Board Comments – Not present.
CONSENT AGENDA:
Bubba Smith made a motion to approve the consent agenda as listed below. Cecil Leavitt seconded this motion and it was unanimously carried. 4-01. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Minutes from 11/3/09 Regular Board Meeting
3. Discussion & Action – Approve Bills Paid - $361,822.84
** End of Consent Agenda**4. Discussion & Possible Action – Consideration to Approve Anderson Heritage Electric Inc.’s Proposal to Provide Modifications to the Electrical Equipment on Well #27, Including Relocation of Transformer
Mike informed the board that since the site improvements had been made to well site #27 it was now necessary to provide some modifications to the electrical equipment located outside the building. The work would include moving the transformer, switch gear and new service panel to allow trucks access to the site if work on the well was required.
There was a question from Morris Workman on the District’s procedure or parameters for going out to bid and this was answered by legal counsel, Eric Wilbanks. Eric explained that according to NRS you are not required to go out to bid unless the job estimate is over $25,000. Kraig Hafen, former VVWD board president commented that he thought when he was on the board that it was decided to bid out anything over $2,500. Mike stated that we do follow that procedure on most bid projects, but that Heritage Electric has been doing the electrical on the District’s wells for over ten years and they are certified to handle high voltage and already have all the electrical drawings.Ted Miller made a motion to approve Anderson Heritage Electric Inc.’s proposal to provide modifications to the electrical equipment on well #27, including relocation of the transformer not to exceed $24,077.00. Cecil Leavitt seconded this motion and it was unanimously carried. 4-0
5. Discussion & Possible Action – Consideration to Award Contract and Notice to Proceed for the 2009 PRV Project to the Lowest Responsible Bidder in the Best Interest of the Virgin Valley Water District
Mike explained that the engineers had identified several high pressure zones with the system model, along with complaints from customers, and hired Bowen & Collins to design the PRV stations. Mike further stated that the project went out to bid and the District had five (5) contractors who submitted bids and that Precision Pipeline, Inc. out of Cedar City was the low bidder with a bid of $193,588.50. Ted Miller commented that this was something that was very serious and needed to be done, but he questioned whether the board could award to the next lowest bidder, Trade West, since they were a local company and they were only over by $2,500. There was further discussion on the Nevada contractor’s preferential bidder status and whether this could be applied in this situation. It was discussed how contractors obtained the 5% NV preference. Eric informed the board on NRS 332 which is the Nevada Purchasing Statute. The board was informed that Joel Andrus with Bowen & Collins had looked up NRS regarding this subject and found that the bid must be over $250,000 and set out in the criteria of the bid packet; so for this reason, it was not put into the bid packet. There was further discussion regarding giving local contractors’ preference.
Cecil Leavitt made a motion to award contract and Notice to Proceed to Precision Pipeline, Inc. in the amount of $193,588.50 for the 2009 PRV Project. Bubba Smith seconded this motion and it was carried by a vote of 3-1 with Ted Miller opposed.
6. General Manager’s ReportMike had not included a written report. Mike stated that the correspondence in the board member’s packets was from a UNLV Environmental Studies Graduate Student who was requesting to add a link to our website for a survey he is conducting for his studies. Mike didn’t believe it required board approval, but that the correspondence was more for information. Mike also stated that he would check with Tracy Lee regarding security.
Mike stated that the District has yet another unfunded mandate to comply with, ‘Red Flag Rules’, which deals with identity theft. Mike further stated that there are lots of things the District will be required to do better. We will definitely have to redo the front office and extra space will be required for secure storage. Mike was asking the board if there was a certain direction that they would like him to proceed with looking at different ideas to meet this mandate. Bubba stated that board meetings could be held at other facilities. Ted questioned the time limit on the bond money. Kenyon stated that his personal opinion was that we do something not as permanent in lieu of spending hundreds of thousands of dollars. Mike stated that there are other meetings held daily at the District that would require a room.
Mike also informed the board that there has been some interest in leasing the Bunkerville water shares purchased from Cresent Hardy and it was the opinion of the board to auction these shares for lease.
Mike also stated that we have been working on the Rules & Regs and changes have been made and he wanted to know if the board would like to hold a workshop to review them or if we should just work with legal counsel and then bring back to the board for approval. The board stated that they would prefer Mike to work with legal counsel and then bring to board.
Mike further stated that we have been continuing to work on the Vanguard Pipe case and that he and Boomer had given depositions last week on the Vidler/Lincoln County water issue appeal. Mike finished by stating that we have the agreement to transfer and assignment of the lease of the 8 shares we purchased from Bunk Farms.7. Hydrologist’s Report
Ted questioned again why we were involved with Lincoln County and Boomer proceeded to explain the Tule Desert Ruling and why we protested and why we are involved.
Boomer stated that there was a meeting last week regarding the aquifer recharge program with the City of Mesquite and the local golf courses. This was the first preliminary look and the report has not been finalized yet. This was only the first of many meetings to come.
The AquaGard process will begin on November 30th for the District’s wells.
Boomer also stated that on December 2nd and 3rd there would be depositions taken regarding Tule Desert and George has asked that Boomer attend.8. Public Comment
Sandra Raymaker commented on the District’s expenses and low money flow and wanted to offer a couple suggestions.
9. Adjournment
Vice-President Kenyon Leavitt adjourned the meeting at 3:52 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
DECEMBER 1, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on December 1, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, Michael “Boomer” Johnson Chief Hydrologist, Eric Wilbanks and Bo Bingham District Administrative Legal Counsel and Mary Johnson taking minutes and other interested parties of agenda items.
John Paul called the meeting to order at 3:10 p.m.
CPresident ecil Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments - None
President of Board Comments – John commented that at the last meeting he had sent notice to everyone that he was out of town on a retreat, but that it was not relayed to the water board.
CONSENT AGENDA:Kenyon Leavitt made a motion to approve the consent agenda as listed below. Cecil Leavitt seconded this motion and it was unanimously carried. 5-0
1. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Minutes from 11/17/09 Regular Board Meeting
** End of Consent Agenda**3. Discussion & Possible Action – Consideration of Vidler Water Company, Inc.’s (“Vidler’) request for certain Virgin Valley Water District (the “District”) documents and records pursuant to the Nevada Public Records laws and of the ongoing Vidler litigation. Issues of discussion and possible action may include, but are not limited to, determining the location where the Virgin Valley Water District will maintain its records, the possible retrieval and return of certain District records and documents from Reno, the handling of the Vidler litigation and the associated records, the manner of review of the District’s documents and records and the disclosure of documents that are properly subject to Vidler Water Company, Inc.’s request
Bubba stated he had a question for legal counsel as they have given the board direction on this and asked if we should go the extra mile and search out other records for general use; not just Vidler records but all records concerning the VVWD. Bo answered stating that NRS 239 requires the District to maintain certain records and also provide those records upon a proper public records request. Vidler has made a request and legal counsel’s recommendation is that the records of the District be maintained in the District office.
Bubba Smith made a motion to direct the District’s general counsel to make arrangements for the District’s previous general counsel, located in Reno, that we make a trip up there and bring any records that we think are pertinent to the Water District’s general business; that our public records be stored here in Mesquite; and that we make available anything that Vidler may not have and may need for their litigation and any other requests that you have as a counsel, any other directions you have given us.
Bo Bingham stated that the one comment he’d make or question on Bubba’s motion is that you mention in your motion that we would make arrangements for the retrieval of those records. Is the motion that we would then either arrange through a shipping company or direct some District staff to go up there and retrieve the records under our direction? Bubba stated that was why he made the motion the way he did. You make the arrangements to bring those here. Bubba further stated that he didn’t know if it was necessary for them to travel up there or if you just need to make the arrangements to get them here so that we can get them either scanned and/or returned and make duplicates of anything we think we don’t possibly have. We’ve been in business for several years so there would be a lot of documents that we already have here on-site. Bo stated, so then your motion would be then that we would be in charge of making those arrangements, how we would want to get them, whether it would be through a shipping company or otherwise? Bubba further stated that you should go that extra mile and provide anything that you think might be pertinent to them and make available to them public records. Bo’s second question was that the motion would include all of the District records that are located in Mr. Benesch’s office? Bubba stated that he thought this was what we would have to do just because of our responsibility per NRS to have those available here; it just doesn’t make sense to come back and say someone else has made a different request, let’s go see if we have those records. Mike asked if it would be proper in Bubba’s motion to request counsel maybe to draft some sort of a record request form that has to be filled out. Bubba stated that this was an excellent point and thought this was only fitting and he would, with permission of the board, that we also make that direction and direct counsel to draft a form for request of public records and a fee associated with that obviously. Ted Miller seconded this motion and it was carried by a vote of 4-1 with Cecil Leavitt opposed.
Mike asked if there was a time certain. John Paul commented ASAP. Bo stated that they would make arrangements immediately after this meeting to have these records transferred.
4. General Manager’s Report
Mike had not included a written report. Mike stated that it seems that we just had a meeting and he didn’t have much to add except that we are progressing with litigation regarding the Vanguard pipe and there would be another deposition on Thursday.
Ted Miller asked if we could direct our legal counsel to investigate this Vidler incident in Lincoln County. He questioned counsel if they were comfortable with what was going on up there and would they like some direction from the board to look into that a little farther? Bo stated that yes, it kind of goes back to agenda item “3” and the handling of the Vidler litigation is one of the considerations and possible action. Bo further stated that they have made effort to come up to speed on this, having discussions with Michael Johnson and Michael Winters and a detailed discussion with one of the opposing attorneys with Vidler trying to get direction that they are heading, and why, and a basis for what they’re doing; but to answer the question, absolutely, we would love to have a better understanding and I think we have expressed this to a couple of board members in the past. Ted questioned if we needed to agendaize that. Bo stated that we could certainly make that an item on the next agenda. Eric stated that the lawsuit was included as part of agenda item #3. Bo stated I don’t know if Ted’s asking us to put that on the next agenda, but as I mentioned previously it was included in item #3 and if you wanted to direct us to get involved in that we would be happy to do that. Ted stated alright, fine that will cover that and that he didn’t have any more. Bo stated when you say that will cover that, you haven’t made a motion to direct us to look at that issue. Bo stated that you could make a motion to do that, but frankly he wasn’t sure that that was completely or totally necessary, as general counsel we should have that right to obtain those records; that we have made effort to obtain those records relative to the Vidler litigation, but we haven’t received them all we’ve requested and thought that it would be wise to make a formal motion in fact if the board was so inclined to do so. Kenyon stated that he thought we were on the general manager’s report. John Paul stated that we were on item four and if we were going to revisit item three, asked if there were any questions for the general manager in his report. John Paul further stated that before we go to item five he would have to address the board on whether or not they want to reconsider revising the motion on item three. Bubba questioned proper procedure since we had already moved on and whether we could open item three back up. Cecil stated that he didn’t think we could officially do it. Bubba also thought that before they voted they should have had an amendment to the motion and to just put it on the next agenda.5. Hydrologist’s Report
Michael had not included a written report. He informed the board that we were currently doing the AquaGard treatment on well #30. The District is currently operating off of one well and all the reservoirs are full. Last week, RBF Consulting and Boomer drafted a WRDA (Water Resource Development Act) through a representative of Heller’s office for a request for Federal Funding up to 20-30 million dollars for the aquifer recharge project. We would have to complete our feasibility study first and there could be ACOE money also. Boomer also stated that he would be attending depositions beginning tomorrow in Carson City on the technical aspects of the latest Tule Desert Ruling.
6. Public Comment
Don Paff commented on item #3. Erin Russel Hayes a representative with Vidler submitted the letter dated June 8, 2009 regarding the record requests. Morris Workman questioned the Vidler litigation and which litigation this was about and how it affected VVWD. Bo stated that the litigation itself was of public record and that the board could confirm that there was ongoing litigation and that anybody would be free to access public records through the court system, but would caution the board not to discuss any specific aspects of the litigation in an open meeting. Bubba stated that since there was pending litigation he asked the board their feelings of having a closed session again before the next meeting and it was decided to meet one hour before the next regular meeting. Morris Workman asked again what exactly the lawsuit was about. Bo answered that the lawsuit was actually Vidler against the State Engineer and that the District is involved in the State litigation to protect our water.
7. Adjournment
President John Paul adjourned the meeting at 3:42 p.m.
Bo asked that the tape recorder be turned back on and stated that he wanted to be clear that the purpose of item three today was not to determine whether or not the District would comply with NRS 239. There is no formal action required by the board to say we will or will not comply with State law, so Mr. Paff’s comment, I didn’t hear a motion about whether or not we would disclose public records if they’re relevant; but he just wanted to make sure that the motion today was with respect to how the District would go about responding, but it has always been the District’s intention to properly respond.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
DECEMBER 15, 2009Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on December 15, 2009, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Kenyon Leavitt, Secretary-Treasurer Cecil Leavitt, and Board Members Ted Miller and Robert “Bubba” Smith. Also present were Michael Winters General Manager, Michael “Boomer” Johnson Chief Hydrologist, Bo Bingham and Eric Wilbanks District Legal Counsel and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Bubba Smith offered a Prayer and Kenyon Leavitt led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments – Cecil Leavitt mentioned that this was most likely Bubba’s last meeting and wanted to publicly thank him for his time and service as a board member of the VVWD. As policy in the past, the District has offered a token of their appreciation for departing board members and Cecil presented Bubba with his gift. Kenyon also offered his appreciation to Bubba for serving on the board.
President of Board Comments – John Paul also echoed the previous sentiments and stated that Bubba has done an admirable job.
CONSENT AGENDA:
Kenyon Leavitt made a motion to approve the consent agenda as listed below. Bubba Smith seconded this motion and it was unanimously carried. 5-01. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Minutes from 12/1/09 Regular Board Meeting
3. Discussion & Action – Approve Financial Statement for October 2009
4. Discussion & Action – Approve Bills Paid - $2,053,866.33
5. Discussion & Action – Approve Purchase Orders Over $2,500
a. Iceberg Air Conditioning & Heating - $2,900.00 – Air/Heat Unit at Well #30** End of Consent Agenda**
6. Discussion & Possible Action – Consideration to Approve Amendment to Contract with Bowen, Collins & Associates, Inc. to Finish Telemetry Work on the Arsenic Plants not to Exceed $30,844.00
Mike began by stating that he signed the final pay request for MMC, Inc. today and explained that November 24th was the official day of “end of completion” and the one year warranty began. However in the contract with MMC, their ISO was supposed to do certain things and it was not done so Marcus with Bowen & Collins, who is their telemetry person, has gotten the plants up and running and his charges were deducted from the MMC contract and this would be the last time this would come back before the board. Kenyon questioned what happened to the first person who should have completed the work. Mike Chandler representing Bowen & Collins explained that several of the items that they were contracted to do, specifically to install certain instrumentation and some wiring within the panels; they were taking a significant amount of additional time and Bowen & Collins were concerned that we were not going to meet some of our state mandated deadlines, so Bowen & Collins went ahead and programmed the instrumentation and got everything up and running with the knowledge that this was part of their scope of work. Mike Chandler further stated that in the interim, there were several other additional items that MMC did perform. MMC had submitted a change order for additional time needed because of the moving of site 27 and Bowen & Collins submitted a counter claim for the telemetry work and MMC was satisfied to walk away as is. Mike Chandler also stated that since they had to move site 27 they no longer had line of sight radio communications and now we needed to put a repeater at well #26. Mike Chandler also stated that they had included a buffer for Marcus to come down to help the operators without having to come back to the board for approval.Cecil Leavitt made a motion to approve amendment to contract with Bowen, Collins & Associates, Inc. to finish telemetry work on the arsenic plants not to exceed $30,844.00. Bubba Smith seconded this motion.
John Paul called for questions on the motion and Bo Bingham stated that typically you would want to obtain some type of written confirmation or written release from a party who could potentially file a legal claim so it is possible to add to the motion that we obtain some type of release from that party in the event that we are going to go this route and we would be clear legally. Mike Winters asked if we would do this through the general or the sub. Mike Chandler stated that the District only has a contract with the general contractor, MMC, Inc. and not the sub-contractor ISS. We have a signed change order with corporate between the parties. Mike Chandler further stated that as part of the final paperwork they have the general contractor fill out an affidavit of payment and certification of final completion which notifies any and all parties that may have a lien on the project stating that the project is about to be closed out and that there has been no claims. Bo stated that they would like to review that paperwork and proposed that this be added to the motion.
Kenyon Leavitt amended the motion to include that the District’s legal counsel review change order from MMC to Bowen & Collins prior to amendment of the contract. Bubba Smith seconded this motion and John Paul called for a vote.
Cecil Leavitt called for a point of order and stated that the board should vote on the amended motion and then the original motion. John Paul stated if there were no questions on the amended motion we would call for a vote.
The amended motion passed unanimously. 5-0John Paul then called for a vote on the original motion as amended.
The original motion as amended passed unanimously. 5-0
Mike Winters added that 75% would be paid by ACOE.
7. Discussion – Discuss Correspondence/Letter from Mr. Don Paff Directed to Certain Board Members Regarding the Retention of Bingham & Snow, LLP as Administrative Legal Counsel for the Virgin Valley Water District – Requested by Kenyon Leavitt
Kenyon began by stating that Don had addressed the Board in public comment with his concerns, with letters to the Board with no response and then he published the letter in the local papers with still no response from the VVWD board. Kenyon further stated that anyone within the water district area who may have a concern or complaint should be able to state that complaint and receive board comment on it and that’s the reason he had this put on the agenda. Kenyon also stated that in his personal opinion, that there is probably no one who lives within this District who knows more about water issues than Don Paff and that he takes what Don says very seriously and appreciates his comments and concerns with the Water District. Don stated that he had spent some time on considering all the material that he commented on and felt that there was confusion, errors and maybe illegal actions in obtaining the legal counsel. Don stated some of his concerns and what he was confused about and some of the errors he thought occurred during this process and one was that the contract between the District and Bingham & Snow was not signed by Bingham & Snow. Don stated that the whole thing he has observed during this time and tried to report, essentially comes down to is what you want for counsel now and in the future and that relationships between staff, board and counsel should be like it exists under the laws establishing the VVWD and the District’s present Rules and Regulations, one of which directs the General Manager to appoint general counsel. Don stated that his suggestion was to start over and decide what the needs of the District are and proceed by seeking people who have qualifications to support what your needs are and then proceed in a cooperative way with counsel, staff and board.
Kenyon commented that in the closed session with legal counsel that these issues were discussed that Don brought up as far as who reports to whom and how this goes on. We are using George Benesch; however we are having Bingham & Snow be the reporting agency as our legal counsel. Water issues will hopefully go through George Benesch and come to the board for action and Mike Winters, as general manager is the go between and his job is to issue “work orders” per say. Kenyon further stated that there was some confusion, but believes this is taken care of. Don stated that he thought the District needed to examine their relationship between counsel and the District and feel comfortable that the contract or agreement are valid and secure administratively and legally. He further stated that the board should review the formation laws and Rules and Regulations they have adopted because he believes that they are weak, if not faulty.
Ted Miller commented that serving on the board was a difficult job and asked if the board had to listen to everyone’s complaints. He stated that he had some rate payers with complaints and asked if we would have to put them on the agenda next month? Kenyon commented that everyone has the opportunity to complain and if they want on the agenda that they should have that opportunity or they can speak during public comment and that this is the job of a board member, no matter what board someone serves on; and if you do not like how the process works, that maybe you shouldn’t run for reelection. John Paul stated after further discussion that Ted could have the rate payers contact him and he would put them on the agenda if need be.
Mike Winters suggested that he pull the agreement with Bingham & Snow and sit down and talk to Bo about it and whatever is missing we’ll rectify that.
Bo commented that he appreciates any concerned citizen coming forward and voicing their concerns to the Board. With respect to some of the comments made, Bo stated that it is common for fee agreements not to be signed by the attorneys and the specific reason for this is that the contract specifically states that the board can terminate Bingham & Snow at any time for any reason. It is not a binding contract where you are employing them for a specific period of time. With respect to the process that the board went through, the enabling statutes were absolutely followed; and moreover, the by-laws were also followed and Bo read directly from the statute itself.
Cecil commented and took exception to what Bo said stating that the board did not follow procedures as set by the Administrative Policy and Procedures Manual in regards that the General Manager did not appoint anyone.
Bubba Smith stated that he disagreed with Cecil’s comments in that the board gives direction to the general manager to hire someone else and the board directs the general manager and that is their right as a board to seek additional and/or other services.
Kenyon stated that the Administrative Policy and Procedure Manual should be changed to state that. John Paul stated that Mr. Winters was responsible as an individual and that he would get together with general counsel and make sure that we have an agreement that’s binding and then also if we need to change the Administrative Policies and Procedures that it should be brought back to the board to do that.8. Discussion & Possible Action – Consideration of Request by Cheetah Wireless Technologies, Inc. to Mount Antennas on the Freeway Water Tower Reservoir
Mike Winters stated that he thought this item should be tabled because he had received some diagrams and has found more things that concern him. Mike also stated that he had contacted Eric Wilbanks and had not heard back from him or Cheetah’s. John Paul stated that we would table this item but he would open for public comment. Jeffrey Thau, representing Cheetah Wireless, stated he was present to answer any questions. Eric stated that he had received Mike’s comments, but hadn’t forwarded them and thought that this would be discussed today. Mike stated that the District had spent several thousand dollars on painting that tank and he didn’t want anything attached to the tank. It would have to be a free standing tower and Mike also stated that we did not have any structures up there. Any structures needed to house any transmitters or receivers, they would have to do something there and he wasn’t even sure if there was 110 power up there. Bubba asked if there would be any zoning requirements if they needed to build a structure and Mike stated that previous requests to build a tower have gone to the City and been rejected. Tim Hacker, City Manager, stated that if this request was like Reliance Connects on the Vista Del Monte tank there would be no need to come to the City. Mike stated that the Vista Del Monte tank had a lip for attachment and didn’t believe the Freeway tank had a lip for any attachments. Eric questioned Mike on the comparison to Reliance Connects request and Mike stated that Reliance Connects was a much smaller tower.
John Paul stated that without objection he would un-table this item and re-read item #8. Jeffrey Thau stated that there was no need for a structure for housing and that there was a panel on the south side of the tank that would be used and that there is 110 power. Jeffrey further stated that they were not looking to construct a free standing tower and that the tower would be held by clamps and there would be no welding. Jeffrey stated that this was for public safety and mentioned other cities where they had towers and that they would be willing to work with the VVWD for communications needs. Mike asked if the tower could be hooked to the telephone pole and Jeffrey stated that yes it could be. There was further discussion and John Paul suggested that Jeffrey and Mike get together and see if there was a possible solution.Kenyon Leavitt made a motion directing the general manager to work with Cheetah Wireless Technology and see what the feasibility is on putting it on the tower or on a pole, if it will clamp on to whatever Mike thinks is going to work there; and also have general counsel look at the contract and get it to where they like to see that and go from there and have the contract brought back to the board subject to City approval. Bubba Smith seconded this motion and it was unanimously carried. 5-0
9. Discussion & Possible Action – Consideration of the Handling of the Virgin Valley Water District’s (“VVWD”) Ongoing Disputes and Litigation with Vidler Water Company, Inc. (“Vidler”) and the Lincoln County Water District (“LCWD”) Regarding the Tule Desert Groundwater Basin, Including the VVWD’s Protests of Vidler and LCWD’s Applications to Appropriate Groundwater in the Tule Desert Groundwater Basin and the VVWD’s Intervention and Involvement in Pending State and Federal Actions of Vidler and LCWD. Potential Action May Include, but is not Limited to, Directives from the Board to the VVWD’s General Administrative Counsel Regarding Review and Assessment of the Pending State and Federal Actions and the VVWD’s General Administrative Counsel’s Participation in such State and Federal Actions.
Kenyon Leavitt stated that this item had been taken care of during the closed session and that there was no legal action required. John Paul opened the item to the public and there was none so he sought a motion.
This item died for a lack of a motion.
10. Discussion & Possible Action – Consideration of Request by Longview Construction & Development, Inc. (“Longview”) that the VVWD Release Certain Funds under the Virgin Valley Water District Riverside Road Virgin River Crossing, Contract No. 2008-01, PWP-CL-2008-44 for Directional Drilling at the Bunkerville Bridge – Requested by Longview Construction & Development, Inc.
Dave Bundy, President of Longview Construction and Aaron Waite, Longview Construction’s legal counsel, were present and Aaron Waite began by stating that the District had hired Longview Construction for the Directional Drilling project at the Bunkerville Bridge and commented on the minutes from January 20, 2009 and the motion that was made to withhold the $50,000. They were here to ask the board to release that money back to Longview Construction. Cecil Leavitt stated that he would recuse himself because he was working with Legacy Construction and would be abstaining from this item. Bo stated that he had reviewed the contract and the minutes that Mr. Waite referenced and his understanding of the minutes was that the board wanted to make sure that all issues related to this project were resolved relative to the liquidated damages as well as any other issues that may be unresolved. The contract also provides for certain other offsets, for claims or other unforeseen things that might take place on the project. Bo stated that the board would be justified in making sure that all claims and all issues are resolved before releasing any money whether it be under liquidated damages or offsets. Bubba stated that he had made the motion in question due to a change order that had been submitted that the board denied and it’s really the policy of the Water District, and the contract reads, that they are going to pay $2,000 per day for every day that they don’t meet their contract. With potential pending litigation and other items that may come up that we anticipated coming up because of this change order and because of the delays and then not fulfilling their responsibility for fulfilling the contract on time, we held that money and in his opinion we need to continue to hold that money until we are sure that we are not going to accrue any other costs on this project. Kenyon stated that his personal opinion is that the motion has already been made on January 20th and that we hold that money until that time that all these issues are taken care of and he doesn’t believe that is the case right now. Kenyon further stated that maybe Bo and Aaron could get together and hack something out and resolve those issues along with Dave and Mike and then maybe we could consider that. Aaron asked if there were any other issues besides the change orders from Southeast Drilling that they could anticipate causing any problems and John Paul stated they needed to satisfy legal counsel and to work with Bingham & Snow.
11. General Manager’s Report
Mike had not included a written report. Mike stated that there were a lot of things going on and unfortunately a lot of these issues are legal issues. There are some meetings coming up this week and hopefully they will be in our benefit. Mike also mentioned that we are aware of our “bottom line” that Ted has brought up several times and we are working to see if there are different places where we can cut back on and believes that within the next month or so he will come back to the board with some recommendations on different avenues that we could take to hopefully improve the Water District.
12. Hydrologist’s Report
Michael had not included a written report. He informed the board that the AquaGard had been completed and well #30 was restarted without a hitch. Boomer further stated that there was a deposition last week with the Deputy State Engineer regarding Tule Desert and that there were ongoing talks with the AG and Vidler. Boomer also stated that they were working on the final draft of the feasibility study for the recharge program and attempting to have that here at the first board meeting in January. Also, still working on well #34 and hopefully we can go out to bid in January. Mike Winters also mentioned that we were going to try and get into the airport tank this winter which we’ve never been into.
13. Public Comment
Kraig Hafen commented that the board members were doing a good job. Morris Workman asked Mike about the 35 Bunkerville shares auctioned. Mike stated that there were two bidders and Bunker Farms, Inc. will lease the shares at $300 for one year. Sandra Raymaker asked when the Rules and Regulations would be completed and Mike stated that they should come back to the board after the first of the year.
14. Adjournment
President John Paul adjourned the meeting at 4:30 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
JANUARY 19, 2010Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on January 19, 2010, at the Virgin Valley Water District Office at 3:00 p.m. Attending were Directors John Paul, Kenyon Leavitt, Ted Miller, Karl Gustaveson and Mark McEwen. Also present were Michael Winters General Manager, Bo Bingham District Administrative Legal Counsel, Michael Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
Director John Paul called the meeting to order at 3:00 p.m.
Kenyon Leavitt offered a Prayer and Mark McEwen led the pledge.John Paul stated that before we begin he had a couple of remarks. John stated that the election of officers was again upon the board and wanted to state his gratitude for the board electing him and his service as the board’s president for the past three years and was again prepared to continue as president if that was the board’s decision. Also, John stated that as president of VVWD that he wanted to take this opportunity to address the issue of criminal allegations being made against the District’s General Manager, Mike Winters, and former board member, Cecil Leavitt. John further stated that the board of directors is aware of the allegations being made and is taking all such allegations very seriously. However, it is important for us to keep in mind that these are only allegations at this point, and that Mr. Winters or Mr. Leavitt has not been charged with any crime. In the meantime, we understand that they have “lawyered up”, as they say. John further stated that we must continue on with the business of the Virgin Valley Water District to the best of our abilities and that we appreciate the public’s concern for these issues and want you to be aware that the District and the board will cooperate fully with the investigation of these matters.
Public Comment – There was no public comment at this time.
Discussion: Board Comments - None
President of Board Comments – None1. Election of Officers of the Virgin Valley Water District
Ted Miller nominated John Paul for president of the Board. Kenyon Leavitt seconded the nomination and the nomination for John Paul as president of the board passed unanimously. 5-0
Ted Miller nominated Kenyon Leavitt for Secretary-Treasurer and Kenyon accepted the nomination. Mark McEwen seconded the nomination and the nomination for Kenyon Leavitt as Secretary-Treasurer of the board passed unanimously. 5-0
Kenyon Leavitt nominated Karl Gustaveson for Vice-President of the board and Ted Miller seconded the nomination. Karl accepted the nomination and Karl Gustaveson was unanimously voted in as Vice-President of the board. 5-0CONSENT AGENDA:
Karl Gustaveson made a motion to approve the consent agenda in its entirety. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-01. Discussion & Action - Approve Agenda
2. Discussion & Action – Approve Minutes from 12/15/09 Regular Board Meeting
3. Discussion & Action – Approve Bills Paid - $1,312,924.10
4. Discussion & Action – Approve Financial Statement for November 2009
** End of Consent Agenda**
5. Discussion & Possible Action – Consideration to Approve Proposal from Construction Group International, LLC for the Cleaning and Repair of the Emergency Generator at Well 31 not to Exceed $29,637.00
Mike reminded the board that they had approved for this generator to be taken to Las Vegas for inspection and estimate to repair the generator after rodent damage. Construction Group International will put the generator together, perform the necessary repairs and return it and perform load test for their quote of $29,637. Mike informed the board that he had contacted the insurance company regarding a claim, but was informed that they did not cover “rodent” damage. Karl questioned the original estimate for the work and questioned whether the price was high based on the work that needed be done. Mike described the work to be done for the price and indicated that this work was still much lower than the price for a new generator.
Kenyon Leavitt made a motion to approve the proposal from Construction Group International, LLC for the cleaning and repair of the emergency generator at well 31 not to exceed $29,637.00. Ted Miller seconded this motion and it was unanimously carried. 5-0
6. Discussion & Possible Action – Consideration to Authorize the General Manager to Execute the Proposed Settlement Agreement with the United States Bureau of Land Management to Resolve all Trespass and Unauthorized Use Issues Associated with the Site of VVWD Well #30
Boomer stated that the agreement attached had been drafted by the BLM and he had also included as back-up, the trespass notices. Once the agreement has been executed and the District reimburses for BLM staff time in the amount of $24,318, BLM will process the amendment to N-65522 to enlarge the VVWD Well No. 30 site from 0.5 acres to accommodate the current fenced perimeter of the District’s facility.
Karl commented that we built tower without the approval from the BLM and that the area is under environmental control and that it is unfortunate that staff had not looked at issues like this and gone through the process like everyone is required. He further stated that now we have this $24,000 to pay that is rate payer money to be paid for not following rules and hopes that this does not ever happen again in the future.
Mike responded stating that the right-of-way (ROW) was granted prior to the ACEC and will admit to taking out more property because of vandalism. Mike said it was his mistake and he did not realize he needed to go to the BLM ten years ago. Mike said ROW grants the District a well and appurtenances and BLM has finally granted radio tower as an appurtenance. Karl said that BLM has granted it now but the conditions of it do not allow District’s original intent for the tower which was to put other people on it and run it. Karl said even before Gold Butte that area was designated as environmental area and it is spelled out very well in settlement agreement. Karl commented that we are not looking for excuses, but looking to make sure that these things do not happen again. Kenyon asked Mike that when we put the tower up, didn’t Rebel Communication pay for it. Kenyon commented that Rebel will be unable to lease out space on the tower and that is how it was to be paid for. Kenyon indicated that we need to get a release from Rebel so that they do not come back asking for more money for the tower. Mike stated that he did not know how things would be worked out with Rebel and that an agreement has been forwarded to Bo for review. Mike said that we are working on getting the site to private ownership and if it is converted to private ownership the District can do whatever it wants with it and can put others on the tower. Kenyon said his concern is that he does not want to have a problem with Rebel after we resolve this with the BLM. Kenyon stated that we need our legal counsel to get this and do whatever so this is straightened out. Bo stated that their recommendation is that we get a release from Rebel for all claims related to the tower prior to the execution of this agreement.Kenyon Leavitt made a motion to table this item until an agreement is worked out with Rebel Communications and brought back to the next board meeting scheduled for February 2, 2010. Karl Gustaveson seconded this motion and it was unanimously carried. 5-0
7. Discussion & Possible Action – Consideration to Enter Into Mutual Aid Agreement for Membership in Nevada Water/Wastewater Agency Response Network (NVWARN) and to Authorize the General Manager to Execute Such Agreement
Boomer had informed the board that this program was in response to Hurricane Katrina and that it is a utility helping utility approach to incident response and recovery and is the most effective and efficient way to help a utility bring its system back to normal operations within the shortest time frame possible in response to an emergency. A group of Nevada water and wastewater utilities, AWWA and with the support from the Nevada Division of Environmental Protection (NDEP) have joined together to create the NVWARN mutual assistance program and would supply immediate assistance for member utilities during an emergency. Participation in the NVWARN program is voluntary and no membership cost in incurred to participating agencies. The advantages to belong to NVWARN would be increased planning and coordination, enhanced access to specialized resources, expedited arrival of aid and reduced administrative conflict. A list of member agencies was included with the back-up material along with the by-laws and agreement that has been forwarded to legal for review. Bo stated that his understanding was that these entities have already entered into this agreement and while he is not entirely thrilled with the language of the document, he didn’t know what power the board would have to modify that, so we would just take it as it is or not participate.
Kenyon Leavitt made a motion to enter into Mutual Aid Agreement for membership in Nevada Water/Wastewater Agency Response Network (NVWARN) and to authorize the general manager to execute such agreement. Mark McEwen seconded this motion and it was unanimously carried. 5-0
8. Discussion & Possible Action – Consideration of Action by the Virgin Valley Water District related to recent Criminal Charges and Allegations Against the District’s General Manager, Mike Winters, and former Board Member, Cecil Leavitt, Items of Discussion and Possible Action May Include, but are not limited to, any Obligations of the District for Coverage or representation and the extent of the District’s Insurance Policies and Coverage including the Nevada Public Agency Insurance Pool
Bo Bingham began by stating that Dennis Cournoyer with Farmer’s Insurance and the District’s NPAIPP (Nevada Public Agency Insurance Pool Pact) representative to the District was present to answer any questions regarding the Pool Pact. Dennis stated that the Pool Pact was there to support the board and the employees of the Virgin Valley Water District in all situations and provide defense when it’s proper, by contract and they turn the claim in. Dennis stated that he and Bo had spoke after the release of the initial information and felt that it was prudent to get claims involved immediately so they had information up front going in before anything happened and that they were here to take care of business.
Karl Gustaveson moved to make a motion in regards to the insurance issue with Pool Pact, our regular insurance company, and given the fact that we are aware of the fact that both of the people involved in this issue have secured their own legal counsel that we allow them to go ahead and do that and they can fall back on the state insurance when and if they are found not responsible for the charge itself and they would be covered that way. Karl further moved that the District not pay any additional attorneys fees. Ted Miller seconded the motion.
John Paul asked if there were any questions to the motion and Kenyon Leavitt stated he had one clarification because he really didn’t understand it before and with insurance that “not if”, but “when” they find that all this is “bunk”, and they have incurred attorneys’ fees, am I understanding correctly that the insurance company will pay up to $50,000 on the claim? Bo answered that the insurance company would not supply any defense, however, the insurance policy will reimburse up to $50,000 if there is complete exoneration of all charges.John Paul called for a vote on the motion and the motion passed unanimously. 5-0
9. Discussion & Possible Action – Consideration of the Terms of a Settlement Proposal related to the present litigation involving Lincoln County Water District, Vidler Water Company, the Nevada State Engineer, and the Settlement Terms’ impact on the Virgin Valley Water District. Items of Discussion and Possible Action May Include, but are not limited to, Approval or Disapproval of the Settlement Terms and Direction to Legal Counsel associated thereto.
Karl Gustaveson made a motion that we decline to approve the settlement agreement as it’s written and not to give our general manager direction to agree to a settlement under these conditions.
Mike Winters stated that he had a question and stated that there is no agreement and what has been proposed by the State Engineer, is that, a proposal for Vidler to look at; there has been nothing settled here. John Paul questioned if it wasn’t also a proposal for the District to look at?
Boomer stated that previous to last week, Mike and he had attended a meeting at the State Engineer’s office and all the lawyers had dialogue on what it would take to settle the appeal of the last Tule Desert Ruling that came out and granted Vidler Water/Lincoln County Water District 396 acre-feet of water. Boomer stated that we did receive an initial draft that was a response from the State Engineer’s proposal.
Karl read from the item and stated that his motion was not to approve this particular type of a settlement. John Paul asked if there was direction to legal counsel. Karl said that the terms of the agreement are 180 degrees different than what we have been in this lawsuit for. Karl said we have spent a ton of money trying to protect the water and now we not only would not protect the water but will allow them to get two and a half times what we were fighting for and will give up all future rights so we will never be in that basin again. Karl went on to say we are not sure if that basin is interconnected to Basin 222. Karl said we have been fighting this battle on the premise that 221 supplies water to the same aquifer we are on and now there is a 180 degree change. Karl said we are not sure why there is a 180 degree change but that it seems to be a pretty bad deal for the people of this community to give up any future rights to 221. Karl questioned if reasons for 180 degree turn could be explained. Mike stated that had they been invited to the closed session and Bo interrupted stating that that type of discussion, and everything that has been discussed up to this point was fine for open meeting, but that specific answer should be discussed in a closed session because it was directly related to this litigation. Mike continued stating that the public needed to know that neither the General Manager nor the Chief Hydrologist was invited; we were specifically left out of a closed session discussion pertaining to this. Mike further stated that the public also needed to know that the District may not have a choice here. Mike said that the State Engineer has on his desk ready for signature a letter denying our applications in 221. Mike indicated that if State Engineer signs that letter then the District has no say at all even in this agreement. Karl said that they knew that and it is beside the point because it does not change the fact that we are not going to condone having water taken from us. Karl said if they want to take it from us we cannot stop them other than continuing a lawsuit. Mark McEwen said that Mike had stated that what we do here may not matter and read a provision of the agreement and said we have a choice. Mike responded by saying “not really.” Karl said then we will choose to deny. Mark said it is not acceptable and we will send that message very clearly. Carla Crandall interrupted with a question and John Paul stated that without objection he would open to the public. Carla questioned why neither the general manager nor the hydrologist was invited to the closed session. Mike stated that he was informed that there was a closed board meeting for board members only. Mike said decisions being made here was new to them too. Ray Thompson questioned the numbers and Ted stated that there was a total of 5,000 AF out of 221. Wade Paulson with LCWD commented on the numbers.
Boomer stated that neither he nor Mike had drafted this item to come before the board because it is still in negotiations. Karl reiterated language of agenda item. Mike and Boomer said they did not draft agenda item and would not have been brought to Board. Karl questioned if it would have been better to state that earlier rather than waiting until the middle of the meeting. Mike said he sent email to legal counsel today asking for items 8 and 9 to be taken off agenda. Bo disagreed with taking items off agenda and stated that there were probably nine attorneys heading down a path to approve this settlement and if this board is not on board with that, then this board needs to communicate that. Bo said if there are documents ready to be signed by State Engineer and the Board has not heard about it yet, then that is wrong.
Kraig Hafen questioned the sudden change in terms of the settlement. Kraig said he wants to know what changed because it seems something is going on. Kraig said we should have never been in lawsuit and said he wants to know if there is new information.
Mark said that Mr. Hafen assumed that Mike and/or Boomer were a party to this agreement and asked if it was true. Mike said he was and explained when he was informed of the potential denial of our applications by the State Engineer.
Kenyon Leavitt commented that the District cannot control what the State Engineer does, but with that statement, it doesn’t mean that we automatically just say okay.
Kenyon continued that is has been the board’s opinion that we don’t give up anything without a fight. The motion on the floor is that we are not in agreement with this settlement proposal and that’s all it is that we aren’t in agreement with this and that it is an appropriate motion. John Paul said that this was a disapproval and direction to our legal counsel to convey that disapproval to the parties interested. Ted said he saw an email that someone was already speaking for the board.Ted Miller seconded the motion and it was passed unanimously. 5-0
10. General Manager’s ReportMike had not included a written report. Mike informed the board that he had contacted ACOE last week and secured another 1.2 or one million plus, for the drilling of well #34.
11. Hydrologist’s Report
Michael had not included a written report. He informed the board that he has been working on a presentation for the Legislative of Public Lands per NRS from 2008 to present to be held 1/22/10.
12. Adjournment
President John Paul adjourned the meeting at 3:57 p.m.
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.
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VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
FEBRUARY 2, 2010Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on February 2, 2010, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Karl Gustaveson, Secretary-Treasurer Kenyon Leavitt, and Board Members Ted Miller and Mark McEwen. Also present were Michael Winters General Manager, Bo Bingham and Eric Wilbanks District General Counsel, Michael “Boomer” Johnson Chief Hydrologist and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Kenyon Leavitt offered a Prayer and Ted Miller led the pledge.
Public Comment – Don Paff offered comments on Cecil Leavitt’s service as a board member.Discussion: Board Comments - None
President of Board Comments – John Paul read a prepared statement that was added to the record as part of this meeting. John stated that the board was determined to be an “informed” board and procedures followed in the past were no longer to be followed. He continued to state that the board must set policy and that they were ready to lead. John gave examples of where the board was not properly informed and of the problems that have occurred because of the lack of communication and that the board “must direct” from this point forward.
CONSENT AGENDA:Karl Gustaveson stated that he wanted the minutes from the previous meeting held back and reviewed by counsel against the tape because of statements made by staff that were not in the minutes and have these minutes come back at the next meeting for approval. Karl further requested that item “6” be pulled and brought back at a later date.
John Paul would like item “4” moved down to be heard after item “9”.
Karl Gustaveson made a motion to approve the consent agenda as listed below with item “6” being removed and brought back at a later date or the next meeting for a date certain and have the minutes brought back after reviewed by legal counsel against the tapes and the full minutes reflected in the minutes and that agenda item “4” be heard after item “9”. Ted Miller seconded this motion and it was unanimously carried. 5-01. Discussion & Action - Approve Agenda – Item “6” removed. Item “4” to be heard after item “9”.
2. Discussion & Action – Approve Minutes from 01/19/10 Regular Board Meeting – Held back until reviewed by legal counsel against the tape and the full minutes reflected in the minutes.
3. Discussion & Action – Approve Bills Paid - $561,487.50
** End of Consent Agenda**
5. Discussion & Possible Action – Consideration to Approve Use of Proposed Public Records Request Form
Bo Bingham stated that per NRS the VVWD is considered a public entity and all information obtained and records kept are considered public information except those considered through litigation or privileged or confidential. Previously the District did not have a way for the public to come in and make that request with a specific form so counsel prepared this form for the board’s review so that those requests can be made and be tracked.
Kenyon Leavitt made a motion to approve the use of the proposed Public Records Request Form as posted. Karl Gustaveson seconded this motion and it was unanimously carried. 5-0
7. Discussion & Possible Action - Performance Evaluation of, Michael Winters, 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.)
Bo began by stating that it was his understanding that reviews in the past have taken place for Mike Winters, and Mike Johnson as well, and that they were formally operating under employment agreements until they were governed under the Administrative Policy and Procedures Manual that was adopted November 4, 2008. Bo further stated that the verbiage of the agenda item comes directly out of the Open Meeting Laws established by the Attorney General.
Karl Gustaveson started out stating that he had a number of concerns concerning Mike Winters. His concerns consisted of previous experiences and the processing plant to purify water that was originally to be built at the well #27 site on the 18th hole of the Oasis Golf Course. Karl stated that he sat on the Mesquite Vistas HOA Board and that Mike had not bothered to look at the CC&R’s and that there was a long period of time before he went before that HOA that governed the property in question. Karl stated that the association was willing to work with Mike, but there were issues with architectural issues and then digging started one weekend without the approval of the Mesquite Vistas HOA Board and the City of Mesquite without having a building permit. Karl stated that he has concerns with Mike’s “go ahead and fix it later attitude” and the costs to the ratepayers. Karl stated that he appreciated the fact of Mike’s many years of service to the District and that his attitude may have worked in the past, but that it doesn’t work now. Karl also mentioned his concerns with the well that was drilled without BLM approval and the arsenic plant that was built off Falcon Ridge Parkway on land that is currently owned by the City and previously owned by the BLM and the delays incurred because of problems with the proof of ownership of the property. Karl also stated his concerns on the communication tower that was built without BLM approval and fees associated that the District will now have to pay to BLM and possible repercussions with the agreement between the District and Rebel Communications.
Mark McEwen questioned the time frame on Karl’s concerns regarding the Mesquite Vistas property and the Falcon Ridge Plant.
Ted Miller stated that he would like to review Mike’s leadership with the District since he’s been here. Ted stated that Mike’s first “big (unintelligible), or whatever you want to call it”, was when he and his staff failed to get paperwork correctly done for applications to get water out of Tule Desert or Basin 221 and that the District has spent hundreds of thousands of dollars on this issue. Ted further stated that next, Mr. Winters went over to Arizona and says “well we’ll get some of your water” and reverses it. Ted further commented that his wife received a phone call and was informed that the only way you could get anything done over there was to use a company that Mike Winters approves of so he can get kick backs from them and then Mike was in Arizona telling them that we didn’t need their water. Ted continued, stating that Mike informed the board that the only place you could treat water for arsenic was at the wellhead referring to the property Karl talked about on the 18th hole of the Oasis Golf Course owned by Ted Lee and the problems that occurred at this property and then having the arsenic plant actually built on property on Hardy Way, that is in question itself. Ted further commented on the construction of a new building and after he thought that constructing a new building was dead, an item was on the next agenda and 16 contractors showed up that had answered a bid to construct a new building for the District. Ted then commented that he had spoke to Mike regarding the chief hydrologist receiving huge outside consultation fees while employed by the District and that maybe we should move him from a full-time employee to a 1099 employee because we could be held liable for him and be sued and Ted stated that Mike said not to worry because as a government entity we could not be sued for over $50,000 and our insurance will pay it. Ted made further statements regarding attorneys and Mike using George Benesch when Bingham & Snow were to be the District’s sole attorney; the costs of legal fees; Mike and his cronies reversing their stand on Basin 221; the debt of the District; a rate study being conducted; and finally stating that Mike Winters should be replaced.
Mark McEwen, after listening and taking notes, stated that he would like to comment and stated that he resents some of the statements made by the two other board members and that this evaluation should be based on job performance and not character. Mark repeated some of the statements made and stated that these were completely out of the realm of what we should be talking about and resents the fact that words like the ones he repeated were being used to discuss a man’s 16 year performance. Mark further stated that he wanted to make it perfectly clear that he is neither saying that Mike Winters should be here or not be here, but he is here to listen to the facts and the facts are what should be considered.
Kenyon Leavitt stated that he has sat on the board during all the situations that Ted and Karl talked about and that he doesn’t remember it the same way that they saw it. Kenyon further stated that Mike should have a chance to address those issues and that he knows that Mike hasn’t done everything correct, but has everyone else done everything correctly. Kenyon brought up the fact that Mike stated at the last meeting had secured an additional 1.2 million dollars from the ACOE for the drilling of well #34 and the money brought in for the construction of the arsenic treatment plants.
Karl again remarked on Mike and Boomer’s 180° change regarding Basin 221. Bo remarked that after the last meeting, and knowing the board’s concern, he contacted Mike Wolz, attorney for State Engineer, and was informed that no determination has been made, including Vidler litigation. Karl continued, commenting on e-mails he had in his possession regarding land purchased for the arsenic plant and water purchases. Karl further stated that he appreciates the comments about receiving the grants and that he has been attending meetings since last July and the boards’ frustration with agenda items and how the board works with staff. Karl further commented on facts that have been hidden; that the board should be beholden to the rate payers; that we can’t go on with bickering between communities; and that he can’t support Mike when he is not credible or honest.
Brett Whipple, attorney for Mike Winters, asked to address the board. Bo commented on NRS and why Mike had to be evaluated in an open meeting and that Mike had a right to an attorney present. Brett stated that he has had an opportunity to visit with Mike Winters and that Mike’s intent has always been to do the best for the board and citizens and that this was a difficult situation. Brett further stated that he wanted to be fair to the process and stated that a criminal investigation was mentioned and wanted it known that he had an opportunity to go to Mr. Scott Mitchell and inquired about the grand jury investigation and was told that was not true and that the information was before David Rogers and his team of attorneys and they would make a determination to file charges and that the grand jury has nothing to do with this. Mr. Whipple further stated that Mr. Winters has done everything he could for the betterment of the community; has brought in millions of dollars; and if you look at the evaluations over the last three years, that they are all positive reviews so why now is this an issue and not then.
Ted questioned Brett Whipple and who was paying him and he answered that Mr. Winters was. Ted stated doesn’t that say volumes that Mr. Winters has to hire an attorney to represent him to the board. Mark stated that he was looking for fairness and Ted warned Mark about where he was at there. Bo recommended that the board and the public wait to speak until the President, John Paul, recognizes you.
Mike Winters stated that he would like to address many of the accusations made tonight, but he would like an opportunity to prepare that information for the board. Mike further stated that Mr. Miller’s and Karl’s accusations are not correct and not as they portrayed, and he would like to prepare a statement for the board.
With no other remarks from the board, John Paul said he would send it to the board for a decision and Kenyon asked if John didn’t have something to say. John Paul proceeded saying this would go back three years and that time and time again he faced a problem of not believing what was being told to him. John recognized Mike’s 16 years longevity of service, but also recognized how it got started and grew. He mentioned that many times he has said that Mike Winters’ water delivery service has been acceptable and a very good job, however, the other aspects of a general manager’s duties was administrative ability and to handle things that didn’t exist 16 years ago and as the community grew and his occasions to learn to do things
administratively, Mike didn’t grow. John further mentioned instances of where he has wanted Mike to grow administratively and he hasn’t.
Mark McEwen asked Mr. Winters what the mitigating circumstances would be if the board voted to fire Mike and that he was not choosing to make any remarks on comments made and he doesn’t have anything to refute on the comments made.
Mike again stated that was why he wanted to be able to listen to the tape and pull records to answer the allegations. Mark then asked if Mike would answer his questions and continued to ask about the processing plant and the construction beginning before a permit had been issued and Mike stated that Longview Construction began digging without permission from him, Bowen & Collins or MMC. Mike further stated that the District had a lease agreement with Mr. Lee and that Mr. Chandler worked with the HOA. Mark asked about the plant off of Falcon Ridge Parkway and the remarks made about working with the City and Mike stated that he works well with all departments. Mark then asked about the communications tower and Mike answered that he had put a fence outside ROW because of security issues. Mark continued with questions regarding the water applications in Tule Desert and the expediency of giving George Benesch $16,000 to file applications and Mike explained.
There was further discussions’ regarding the applications, the communications tower, the arsenic plants and legal counsel.
John Paul opened the item to the public and Mike Chandler with Bowen & Collins commented and offered another perspective to Longview Construction’s breach of contract on the arsenic plant. Harold Surgeland questioned the original date of filing and Bo answered. John Paul then closed public comment.Ted Miller made a motion, in as much as the general manager is an “at will” employee of the board, that they replace Mike Winters as General Manager of the Virgin Valley Water District. Karl Gustaveson seconded this motion.
Kenyon questioned if the motion was to get rid of Mike completely from the Water District or as just the general manager and Ted responded that the motion was to replace Mike Winters as the general manager and the next general manager would determine if we should hire Mike in some capacity. With no other questions, John Paul called for a vote.
The motion passed by a vote of 3-2 with Kenyon Leavitt and Mark McEwen opposed.
Bo stated that before you move to the next item and based on the recent action of the board of terminating immediately, you may want to decide how this is going to be done. Bo stated that Nevada Law is pretty specific on what happens when terminating an employee and some of these issues should be addressed.
Ted Miller stated that in the interim, he thought there would be an employee within the staff that has the same class to operate the Water District as Mr. Winters and that we cannot allow Mr. Winters back in the building except other than the public area. Ted further stated that he didn’t know if the locks needed changed, but that the computers needed secured; that staff would escort Mr. Winters to have him remove his personal stuff.
There was further discussion regarding procedures on termination of an employee and how to move forward. Bo stated that the board needed to determine if Mike was terminated with cause or without cause as an “at will” employee stating that with cause, there would be no severance pay and without cause, he would receive three month’s severance pay.Mark McEwen made a motion to pay Mike Winters three month’s severance pay. Kenyon Leavitt seconded the motion.
Karl Gustaveson asked to expand the motion in that no documents would be taken out of the building, not returning to the building, turning in his vehicle.Mr. Brett Whipple commented that Mr. Winters had already turned his key to the truck over to an employee and that a representative of Mike’s would come in and retrieve his personal belongings.
Mark McEwen amended his motion, and wanted it very clear on the record, that Mr. Winters was let go as an “at will” employee and not from malfeasance; that his representative be let back into the building to retrieve his personal belongings; and that the issues of the vehicle have already been solved (the keys have already been turned over). Kenyon Leavitt seconded this motion.
Mark McEwen also stated that as part of his motion that Mr. Winters receive his severance pay within 24 hours and his representative would be able to retrieve his personal belongings. Kenyon Leavitt seconded the amendment to the amended motion. John Paul called for a vote and the amendment to the amended motion passed unanimously. 5-0
John Paul called for a vote on the original motion as amended and it was passed unanimously. 5-0.It was discussed and decided that two board members, along with legal counsel, would meet with the employees the next morning.
John Paul stated that before we went to item “8” that we would have a closed session meeting and everyone would have to leave the board room.
Bo went on to explain the difference in the types of employees’ Mike and Boomer were, and why Michael Johnson was able to have his evaluation in a closed session. Eric further explained that they could go into closed session, but that no formal action would be taken in the closed session.Ted Miller made a motion to close the meeting and go into closed session to evaluate Michael Johnson. Karl Gustaveson seconded the motion.
Eric stated that statutes were specific in going into closed session to meet Open Meeting Laws and that you must specify what statute you are using to go into closed session.
Ted Miller stated that per NRS 241.030, I move that the Board go into a closed session to consider the character, alleged misconduct, professional competence, physical or mental health of Michael Johnson. Karl Gustaveson seconded this motion and it was unanimously carried. 5-0
The board reconvened and John Paul restarted the regular scheduled meeting.
8. Discussion & Possible Action - Performance Evaluation of Michael Johnson, Chief Hydrologist. 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’. (Closed Session May be Held to Consider Character, Alleged Misconduct, Professional Competence, Physical or Mental Health Pursuant to NRS 241.030.)Ted Miller commented that as a public servant sometimes you have to make tough decisions and with the economic situations, we need to cut expenditures. Ted further stated that he did not feel that a full-time hydrologist was needed and thought the District should eliminate the position of the chief hydrologist and we could use Mr. Johnson on a retainer or consulting type situation.
Kenyon stated that he disagreed with Ted and that there were a ton of things in the works and if Boomer was gone, we would have wasted the money already spent. Kenyon further stated that if we needed to cut expenses we needed to look elsewhere and that we shouldn’t take another step back tonight.
Karl stated that he had mixed emotions about this and understands what both gentlemen have said and believes that Michael Johnson can be of real value, but there needs to be better communications. Karl further stated that he would not be opposed to a trial period and a review in six months.
John Paul questioned Boomer’s commitment to keeping the board informed ahead of time and keeping the communications open.
Mark McEwen echoed what Kenyon said and stated that after spending three hours with Mike and Boomer feels that the District needs Michael Johnson’s expertise and we could review in six months.
John Paul opened the item to the public. Bob Frisby asked for a clarification on Michael Johnson doing consulting work for him. Michael Johnson commented on the consultation work he did for the Beaver Dam Water Company. With no other public comment, John Paul turned the item over to the board.Kenyon Leavitt made a motion to retain Michael Johnson as Chief Hydrologist for another year since he is an “at will” employee and the board at anytime can call him back to the floor. Mark McEwen seconded this motion and it was passed by a vote of 4-1 with Ted Miller opposed.
9. Discussion & Action – Consideration of Any Continued Representation of Virgin Valley Water District by Attorney George Benesch as Legal Counsel
John Paul stated that he had some information and that there was a substitution of legal counsel sent down by George Benesch on the Vidler case and John had signed this.
Karl stated that it was probably appropriate to get those filings in and that the decision has already been made and wondered why this was on the agenda. Karl commented on his feelings and that the board should accept George’s notice.
Bo stated that the substitution sent was on a certain case and wanted to make sure that the board was not operating under the assumption that he (George) was stating that he never wanted to do anything ever again for the VVWD and that the board could use him, but that they should make their intentions clear.
Mark stated that saying we should seek other counsel is very open and understands that Bingham & Snow are the District’s General Counsel so he believes it would be up to Bingham & Snow whether they need to use George Benesch or not, or any other counsel.
Karl stated that he didn’t quite agree in that the District should not be limited to one law firm or attorney. Kenyon asked if the board was giving the authority to go out and hire another attorney to Bingham & Snow when he feels that the Board of Directors should make the decisions and that should be made clear. There was some further discussion regarding the re-filing of the applications.The item died for a lack of a motion.
4. Discussion – Power Point Presentation as Given by Michael Johnson to Public Lands Committee
Michael Johnson stated that with the late hour that maybe we should postpone the presentation until another meeting. John Paul stated that without objection we would postpone this item.
10. General Manager’s ReportMike had not included a written report.
11. Hydrologist’s Report
Michael had not included a written report. Boomer stated that there was ongoing work with the Virgin River area and that he would be meeting with DRI tomorrow. Boomer also mentioned that Steve Tietjen, Supervisor, requested that the meeting to be held with employees be moved to 9:00 a.m. from 6:30 a.m. Boomer further stated that he has been working on Half-Way Wash and the Ranney Collector Well and that he obtained 1.3 million dollars from the Bureau of Reclamation (BOR) for this project and that he was also trying to get well #34 drilled.
12. Public Comment
Sandra Raymaker brought forms for the board’s review. Robert Smith commented that it was unfair that the presentation was not given and that the applications were filed without board approval. Karl stated that it was appropriate to explain that emergency situations do come up and Boomer explained why the re-filing was done.
13. Adjournment
President John Paul adjourned the meeting at 7:00 p.m.
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. -
VIRGIN VALLEY WATER DISTRICT REGULAR BOARD MEETING
VIRGIN VALLEY WATER DISTRICT OFFICE
FEBRUARY 16, 2010Minutes of a Regular Board Meeting of the Virgin Valley Water District Board held on February 16, 2010, at the Virgin Valley Water District Office at 3:00 p.m. Attending were President John Paul, Vice-President Karl Gustaveson, Secretary-Treasurer Kenyon Leavitt, and Board Members Ted Miller and Mark McEwen. Also present were Michael “Boomer” Johnson Chief Hydrologist, Bo Bingham District Legal Counsel and Mary Johnson taking minutes and other interested parties of agenda items.
President John Paul called the meeting to order at 3:00 p.m.
Kenyon Leavitt offered a Prayer and Karl Gustaveson led the pledge.
Public Comment – There was no public comment at this time.Discussion: Board Comments - None
President of Board Comments - None
CONSENT AGENDA:Ted Miller requested that item #6 be pulled from the consent agenda for discussion.
Karl Gustaveson made a motion to approve the consent agenda items 1 through 5 removing item #6 from the consent agenda and making it the first item on the regular agenda. Mark McEwen seconded this motion and it was unanimously carried. 5-01. Discussion & Action - Approve Agenda – Item #6 pulled and heard as the first item after the consent agenda
2. Discussion & Action – Approve Minutes from 1/19/10 Regular Meeting Tabled from 2/2/10 Meeting
3. Discussion & Action – Approve Minutes from 2/2/10 Regular Meeting
4. Discussion & Action – Approve Minutes from 2/2/10 Closed Session Meeting
5. Discussion & Action – Approve Financial Statement for December 2009
** End of Consent Agenda**
6. Discussion & Action – Approve Bills Paid
Ted Miller made a motion that any invoices from George Benesch come before the board before we pay them.
Kenyon Leavitt stated that I think they do now and that is what this approve bills is for. Ted asked how the last one was paid and Kenyon stated that somebody made a motion to approve the bills to be paid and it was seconded and voted upon and it was paid. There was further discussion on the process of approving the bills to be paid or pulling the item from the consent agenda if there are any questions. Karl stated that he understood Mr. Miller’s concerns and questioned if it would be possible for the board members to receive copies of that bill prior to the actual voting in the next meeting, directing question to Mary. Mary stated that she could scan bill and e-mail to board members. Karl further stated that he didn’t think that we wanted to be thirty days behind on any of our bills. Kenyon stated that no work outside of the District is to be done without somebody’s approval, be it the general manager or the board. There was further discussion on how the bill process works and that any board member does have the right to challenge any bill.
The motion died for a lack of a second.
Kenyon Leavitt made a motion to approve the bills paid as submitted on the consent agenda in the amount of $201,793.45. Karl Gustaveson seconded this motion and it was passed 4-1 with Ted Miller opposed.7. Discussion & Possible Action – Consideration to Approve a Cost of Living Allowance (COLA) for Virgin Valley Water District Employees Effective July 1, 2010 – Tabled from 2/2/10 Meeting
Karl stated that the board had received direction from staff and provided the board with copies from the Bureau of Labor Statistics stating the actual increase in inflation costs. This shows that it was actually a minus (-0.4) and a cost of living would actually be based on this number. Karl suggested that since there is no inflation, that a COLA would not be applicable and something we would not want to consider doing at this time.
Kenyon Leavitt made a motion to not give a cost of living or COLA at this time. Karl Gustaveson seconded this motion and it was unanimously carried. 5-0
8. Discussion & Possible Action – Consideration to Approve Interlocal Contract Between State of Nevada Employees’ Deferred Compensation Committee and Virgin Valley Water District
Karl stated that he understood that this was just a continuation of our current program and Ted stated that legal counsel had reviewed and agreed.
Karl Gustaveson made a motion to approve the Nevada Public Employees’ Deferred Compensation’s extension of the program through 2012 with the VVWD. Ted Miller seconded this motion and it was unanimously carried. 5-0
9. Discussion & Possible Action – Consideration of Lease of Real Property for Telecommunication Tower Executed by the Virgin Valley Water District and Rebel Communications, LLC and Alternatives to Continued Operation Under Such Lease Due to Trespass and Unauthorized Use Issues Associated with the Site of Virgin Valley Water District Well #30. Consideration and possible action to determine other options for radio communications.
Karl stated that this item had been brought up at one of our last meetings and we must deal with the BLM Trespass Notice. There have been up to six extensions and we have been given a final extension and definitely a decision needs to be made on the direction we need to go on regarding the tower. The approval of the tower was voted on by this board with the assumed knowledge that there would be no costs to the VVWD and that revenues would come in by other people using the tower; and not only would it be paid for, but it would also be a profit center at the rate of 50% of whatever the revenues were at the time. Karl further stated that obviously this was not going to happen and that the tower must be removed or the tower must be put in VVWD’s name. No equipment is installed on the tower. Rebel Communications has been given an extension until March 5, 2010 and Karl’s suggestion was, at this point and time, that we consider letting Rebel take their tower or another option, which we may not be able to do on this agenda, but funding was not voted on and funding is not available in this budget to pay for this.
Bo Bingham stated that their understanding was the same, as of today, and that March 5th was a drop dead deadline to have the tower removed or transfer ownership or otherwise resolving the issue. Bo also acknowledged that Cody Whipple was here representing Rebel and he should have an opportunity to address and provide information, but before we get there, Bo wanted to answer Ted’s question. Bo stated that there are new developments as of today. Eric Wilbanks has been in touch with Beth Ransel of the BLM multiple times over the last several weeks, if not months, and at all times the indication was that this March 5th deadline was the deadline and the terms of her previous letter were controlling. She indicated today that this was not necessarily the case. She indicated today that the agreement will not be modified. Bo stated that on a legal stand point, they would feel more comfortable if the agreement were modified to take out some of the language prohibiting sub-leasing, prohibiting language that could somehow be construed that we could be in violation of the current permit under the current ROW; however she did indicate that if a letter was sent confirming the conversation that Eric had with her today, that it looks like there could be some additional options. Bo stated in his personal opinion that Boomer had raised some issues before the board regarding the need that perhaps this tower provides line of sight and other things we can get into, but Bo suggests that this might be addressed and discussed whether or not this is accurate. Does the tower provide some kind of additional benefit to the District that we don’t currently have or currently use or obtain in some other location? Bo continued and stated that it appears that we do have a little bit of room to possibly work something out with Rebel according with what Beth Ransel is indicating on behalf of the BLM. If the board is interested in doing something out along those lines there are issues along those lines. This is a very, very significant issue before the board right now. Bo stated he would like to see a lot of deliberation from the board on this; he’d like to see Boomer provide any information; he’d like to see Cody provide information, and if others have information regarding this issue they should provide it because he thinks we should act very carefully here. Potentially it could be a benefit to the District; on the other hand, if it’s not done correct he fears that litigation could ensue and in addition, we could run afoul of BLM requirements so we need to tread very carefully as the board considers this issue.
Ted questioned where we stand on the BLM trespass issue and John Paul stated that this was the next item, but Ted asked isn’t that going to have bearing on what we do here. Bo stated that yes, and as it stands right now, Beth Ransel of the BLM has unequivocally indicated that we can keep things as they are, meaning leaving ownership of the tower in the name of Rebel and beyond that March 5th deadline and still be okay. This is why Bo would like to draft a letter confirming the telephone conversation held today with Beth Ransel and in that letter stating that she agrees that we are going to proceed as we are right now. Bo further stated that before we get to that issue, the board needs to make a determination whether or not we want the tower; whether the tower will be beneficial to the District; does it make sense; what are the terms under which how things are going to be worked out with Rebel relative to paying for the tower; are additional revenues going to be generated; how are those going to be divided; can the District get into this area legally accepting revenues and entering into some type of agreement; along with a whole lot of other issues; and make sure we are fully informed.
Karl questioned how much more time we had. Bo stated that if the board was interested in pursuing this we could sign the settlement agreement now; attach a letter with it confirming the conversation; the ownership of the tower will not be changed; it will stay in the name of Rebel unless somehow the District wanted to purchase the tower. Karl questioned the ownership staying in Rebel’s name and Bo stated that he had a letter from Beth Ransel stating that the ownership of the tower has to change, but the settlement agreement does not expressly state that. The settlement agreement specifically states that we cannot sub-lease the tower. Bo further stated that he did not feel comfortable entering into a situation where we could be subject to either violating the ROW or something along those lines. It was discussed whether this could be tabled and moved to a different date so the board would be fully informed.
Ted questioned Boomer of the need for the tower in that location and Boomer stated that as of today, no, but down the line, yes, and that the District’s need is growth dependent and Boomer mentioned different projects coming down the line and that the tower is within the line of sight of all facilities of the District now and in the future.
Cody Whipple of Rebel Communications stated that a lot of communication systems are tone remote, meaning that you use antennas over land mobile radio systems to communicate, but as things progress, you have this digital age and that everything would come into a switch right here in the office which makes its way all through desktops in the office, but most importantly with that location, and that was a big benefit to the Water District, is that it would be a single point of radio and it has the ability to hit all the locations; it could bring all that broad band back into one location without having to use multiple towers around the area.
John Paul questioned the generating and splitting of revenues. Cody stated that he had sat down with Bob and Beth at the field office and they are very receptive to the idea of why this site is important, not only to the Water District, but also to the State of Nevada, Las Vegas Metro Police, Clark County and Lincoln County Sheriff’s Department. There are a lot of co-users out there interested in this site and that’s when they brought up that there is an RMP (Resource Management Plan) in process that if it’s passed will allow site type ROWs. Cody further stated that as in 2007,
he is here for the District’s benefit as well as his benefit. Cody further stated that he had the idea of creating one site that all the public safety users could join in and have a magnificent coverage area and all coverage areas are equal and in this aspect, the BLM is very understanding. Cody feels that the settlement agreement is where we need to start and get rid of the trespasses then he could come back in here again and Boomer could start looking for a grant or some type of way we could work together.
There was discussion of why this was even an issue when it didn’t need to be if things were done correctly in the past.
Bo made a statement that he was absolutely shocked today when the response came back that the position of the BLM had changed. One legal concern of the various legal concerns here has been somewhat alleviated now; we’re not in a position to give final legal direction at all because additional information needs to be obtained, but at least from this point, we have some time and perhaps since we are up against a deadline we need to have a workshop or something to make a determination if the information Boomer was given relative to site lines and all, that how viable that is.
There was discussion regarding statements made; timeframe in which things should happen; the telephone conversation with Beth Ransel on this date; the towers benefits, need and use in the future; the RMP in process; cost of tower, paying for tower and it not budgeted for.
Karl stated that this hinges on the BLM and changes take time, especially with the BLM and agreed with the need, but wondered if it couldn’t be done another way. Boomer stated that the BLM does update the RMP and is in that process.
Cody commented that with the settlement that we cannot go and lease that tower and that no work has been done to the tower since the cease and desist letter in the very beginning, but it doesn’t take away someone else requesting to use the site.
John Paul mentioned the signed agreement between the VVWD and Rebel Communications and was inclined to believe that Cody was not willing to re-negotiate the terms of this agreement between now and then and Cody stated that was well put. Cody stated that the agreement must be revised from the stand point that we would need to get in a work group session and revise, but we have to get rid of the trespasses first.
There was discussion regarding the ROW, sending the letter, paying the fine, ownership of the tower; Bo’s concerns and not comfortable with the agreement the District entered into with Rebel specifying for payments to begin in April of this year and believes that this should be resolved now and we need to figure out some of these issues now. Cody stated that he would share all his information, but with deadline, etc. he would agree to a workshop.
Another legal issue Bo anticipates is what happens when the BLM, even though they are telling us everything looks good, what happens if ultimately the BLM changes and we are stuck with a second agreement with Rebel and the BLM says no. From a legal prospective Bo recommended that we not get into that situation, but shift the burden to the other party.
There was further discussion regarding the letter to be sent to the BLM, other alternatives if an agreement couldn’t be worked out with Rebel and items within the agreement with Rebel. There was further discussion of times, dates, workshop or closed session, getting a letter response out immediately to the BLM, etc.
Kenyon Leavitt made a motion to table this item and that we set up a special work meeting to discuss this item February 22, 2010 at 5:00 p.m. Ted Miller seconded this motion and it was unanimously carried. 5-010. Discussion & Possible Action – Consideration to Approve Execution of the Proposed Settlement Agreement with the United States Bureau of Land Management to Resolve all Trespass and Unauthorized Use Issues Associated with the Site of Virgin Valley Water District Well #30
Kenyon stated that we’ve pretty well discussed this and that the only change is we would be sending out that letter along with the check. It was determined that the letter would be getting a better understanding from the BLM and where we are at, but as far as the execution of the settlement agreement we should wait until the next meeting and after approved, a check would be issued.
Cody stated that he would like to see the settlement agreement dealt with sooner than later along with his concerns. There was further discussion on the BLM accepting the letter and the settlement agreement. Bo stated that he felt we could accomplish both things by continuing to work with the BLM as quickly as possible getting additional clarification. Bingham & Snow will be sending a letter to the BLM regardless tomorrow confirming the conversation with Beth Ransel, but for legal reasons, Bo is not comfortable with just signing the settlement agreement right now. There was some discussion on the time frame and Kenyon questioned if this could not be taken care of at the meeting scheduled for the 22nd.Kenyon Leavitt made a motion to table this item until February 22, 2010 at the special meeting and add this as an action item. Ted Miller seconded the motion and it was unanimously carried. 5-0
Boomer disclosed that he would not be able to attend the regularly scheduled meeting on March 2nd due to NWRA activities.
11. Discussion & Possible Action – Consideration of Appointment of Interim General Manager to Serve until General Manager Position is Filled. Possible Action May Include, but is not Limitited to, Appointment of Interim General Manager and Granting the Appointed General Manager with Authority to Temporarily Manage the Day-to-Day Operations of the Virgin Valley Water District
Kenyon stated that we were a bus with no driver and we needed someone to run the day to day operations and that we needed someone aware of what is going on and after looking at the possibilities of who could take care of that. His recommendation would be to appoint Boomer as the interim general manager as he is aware of the day to day operations and the issues at hand.
Karl stated that he has also had the opportunity to look at, and Boomer has made it pretty clear that this is something that he would prefer not to do. In fact he asked not to have that position.Boomer stated that be believed at the last meeting, knowing that we were going to be advertising for a general manager, that he would not be applying for that permanent position, but he also agreed that he would do anything necessary for the District. Boomer further stated with his hydrological background that he would not want the general manager position, but he would assist in bridging the gap until a permanent general manager was hired.
Karl mentioned that we have an individual, William “Pete” Peterson, with a D-4 (Distribution-Grade 4) with 30+ years experience along with a T-2 (Treatment-Grade 2) and working on a T-3, hoping to take that up to a T-4 on a temporary permit. Karl further stated that he has had an opportunity to talk with Pete and he, like Boomer, doesn’t want anything permanent, but is willing to assist in the interim.
There was some discussion following proper procedures, pulling Pete into the front office and someone else taking his position, duties and allowances for a pay increase. There was discussion on an amount of an interim increase in wages.Karl Gustaveson made a motion to appoint William Peterson as the interim general manger until the general manager position is filled with a 10% salary increase and to go back to his existing position and salary after a general manager is hired. Kenyon Leavitt seconded this motion and it was unanimously carried. 5-0
12. Discussion & Possible Action – Consideration of Preparation and Publication of Notice of Job Opening / Job Description for General Manager Position. Possible Action May Include Approval of Notice of Job Opening / Job Description, Instructions to Publish and Post Notice of Job Opening and Selection of Publications and Periodicals Within Which to Publish Notice of Job Opening
Karl asked Bo to bring them up to speed. Bo presented a draft for the board to consider and stated that this was a work in progress and revisions could be made today and ultimately the board would approve what language to use and we could get this published. Bo gave some background where this draft came from and discussions they have had. Bowen & Collins provided assistance in drafting the job description, free of charge and they have also been involved in hiring processes and interviewing processes. Other assistance was obtained from the City of Mesquite,
Ted Miller and the District’s Administrative Assistant. There was further discussion on places to advertise and the costs associated; and with the length of the job description we may need two versions, one for newspapers and one for websites. There was discussion on forming a committee with no more than two board members and possibly Pete and possibly others to review the resumes as they come in and other different options to streamline the process. The board then discussed a salary range for the position for a great length of time.Kenyon Leavitt made a motion to take the job summary and handout received from legal counsel with a salary range of $71,000 - $95,000 and to post in the websites listed, the local papers and all the regional papers and on the AWWA website, in the Review Journal, Salt Lake Tribune, Deseret News, Arizona Republic, NWRA. All those listed here is where we should post it. Mark McEwen seconded the motion.
Bo questioned if the Board was going to continue deliberating on this or does this also include an approval of the job description as written; do you want to give an abbreviated version of the job description for the newspapers; do you want to set a budget amount on what you want to spend; do you want to set a time of how long you are going to publish for? There was further discussion on the length of time to publish for and the costs associated. Tim Hacker suggested that you hit Sunday in the newspapers and that newspapers were more of a formality because you will probably get most of your job seekers with the on-line publications and cautioned about too many newspaper prints because of costs.
Kenyon modified/amended his motion to limit postings to the Review Journal, Salt Lake Tribune and the Arizona Republic and websites as posted; on a Sunday for the newspapers and 21 days on the websites.
There was further discussion on length of publication and closing dates and then Tim Hacker mentioned that the trend is now that you state “First closing of the position is a such and such date but the position will remain open until filled”.
Kenyon Leavitt stated that he was scrapping both motions and starting over.
Kenyon Leavitt made a motion to accept the job description as presented and post in the Review Journal, Salt Lake Tribune and the Arizona Republic for one weekend within time frame of now until March 12th and that we post in websites as listed and the District’s website; and that the wage range be from $71,000 - $95,000; and to state that the first closing date is March 12, 2010 with the verbiage that the position will remain open until filled.Bo questioned if you wanted an abbreviated job description for the newspapers?
Kenyon stated that yes we wanted an abbreviated job description for the newspapers and to direct them to our website. Karl Gustaveson seconded the motion.Mike Chandler asked if relocation would be required. There was discussion on this matter and then John Paul called for a vote.
The motion passed with a vote of 4-1 with Ted Miller opposed.
13. Hydrologist’s Report and Power Point Presentation as Given by Michael Johnson to Public Lands
Boomer informed the board that his lap top booted up earlier, but it won’t boot up now so he went through the presentation with the information included in the packet. Boomer reviewed the size of the Virgin River Basin; the VVWD municipal system; the VVWD arsenic treatment plants; the District’s ground water resources; the District’s surface water resources; the District’s population and use; conservation; and the growth and challenges.
After his presentation, he informed the board that the City of Fallon would be having a mandatory pre-bid meeting here on March 18th for their project of retrieving the tank they purchased from the District and its erection. Boomer also informed the board that he had filed an extension of time for one of our permitted water rights last week and has made some corrections/modifications to four of the applications that we re-filed in Basin 222 and that he was meeting with Fish & Wildlife on Friday. He also stated that after having legal counsel review Ordinance IV, it would be coming back before the board and that the cost of an EDU has gone from $550 to $275.
14. Public Comment
Morris Workman asked if the District was involved or have used pipe that is in the lawsuit filed by the State of Nevada against J.M. Manufacturing. Boomer explained that this was a classic Whistleblower lawsuit and that chances are that we do have that type of pipe in the ground.
15. Adjournment
President John Paul adjourned the meeting at 5:50 p.m.
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.
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