Thursday, March 9, 2017

February 13, 2017 District No. 2 Annual Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana FEBRUARY 13, 2017 The Annual Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the thirteenth day of February, 2017 at 3:30 p.m. There were present and participating at the meeting: Barry Rakes Lance Kalfell Scott Sackman Also present and participating were: Tim Kortum, Secretary, Pat Davis, Treasurer, Producers of Buffalo Rapids Irrigation District No. 2. President Barry Rakes called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member. Thereupon, President Barry Rakes announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business. FINANCIAL REPORT: Pat Davis presented to all present the 2017 proposed budget for District No. 2 and cash account balances. She briefly went over the 2017 budget and explained selected line items within the budget. She informed all producers what the balance of all accounts was as of December 31, 2016, and explained how those accounts received money. MANAGER’S REPORT: Mr. Tim Kortum thanked everyone for coming to the meeting. Tim Kortum spoke to all present the issues concerning the District. He had a list of all future projects that was available for all producers to review. Tim explained that the projects listed for each Division are what he would like to see done in the future to better serve the District as a whole. He also explained that they had an application for a grant in review for the Shirley Main Canal Lining and were waiting to hear if it is to be funded. Mr. Kortum also explained that they had acquired a loan for the implementation of a Variable Frequency Drive (VFD) at the Fallon Relift pumping plant that will be installed before the upcoming irrigation season. The addition of the VFD should help the District in power usage and maintenance of the pumps and motors at both the Fallon River and Fallon Relift pumping plants. Tim asked all producers present of their opinion in concern of acquiring another low interest loan to complete the Shirley Main Canal Lining Project if the grant submitted was not funded. Tim explained to all present the updates done to the pumping plants throughout the year. He also stated that they had a representative from the Bureau of Reclamation come out to the District and measure water flow and the loss of water, or seepage, of water in some problem areas in the Terry and Shirley Division. Tim stated that they have made extensive progress throughout the last year to ensure water delivery as soon as possible during the upcoming water seasons. The meeting was adjourned on a motion by Scott Sackman, seconded by Lance Kalfell. All in Favor. Motion Carried ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President

February 13, 2017 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana February 13, 2017 The Tenth Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the thirteenth day of February, 2017 at 1:30 p.m. There were present and participating at the meeting: Barry Rakes Scott Sackman Lance Kalfell Also present and participating were: Tim Kortum, Manager, and Pat Davis, Treasurer, and Mr. Travis Choate of BB & H Ranch, Bruce Lantis, Ditch rider. President Barry Rakes called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member. Thereupon, President Barry Rakes announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business. The Minutes and Resolutions from the January 12 and 23, 2017 Board Meetings were approved without corrections and, or additions, by Scott Sackman seconded by Lance Kalfell. All in Favor. Motion Carried Mr. Travis Choate of B B & H Ranch was present to discuss the overage he had incurred during the 2016 irrigation season. Mr. Choate discussed with the Board the amount of water he used during the season and a few discrepancies he believed occurred. Mr. Bruce Lantis, the ditch rider for the Shirley Division where Mr. Choate's ranch is located, was also present to discuss the issue with the Board and Mr. Choate. Mr. Lantis explained to everyone present how he measures the turn outs and what his ditch duties include to have accurate records for each point of delivery. Mr. Lantis also discussed the key importance of communication between him and the landowner for accurate recorded times of water delivery. The Board all agreed that the overage invoiced to Mr. Choate of B B & H Ranch stands as billed, minus any finance charges incurred due to a good faith attempt to discuss the issues with the District. FINANCIAL REPORT: Pat Davis presented current budget figures which included payroll and expenditures for February to all Board members for their review. A list of invoices to be paid was submitted and forms for the Prairie County Treasurer to transfer funds in the amount of $32,502.58, to cover payroll and invoices were signed. February 15th estimated payroll: $9,940.78; February estimated invoices $14,112.02; February 28th estimated payroll: $8,449.78. The Board also signed a transfer for $56,725.00 from System Rehab reserve account to reflect the estimated 2016 net income. In addition the Board also signed a transfer for $23,241.42 from Equipment and Emergency reserve account to reflect an amount of $2.00 per assessed acre for the 2017 operating year assessment for the 2017 budget. Investment transfer was also signed to invest the remaining monthly District No. 2 cash balances in the amount of $470,059.00 with Prairie County Pool. Warrant numbers from January 13, 2017 to February 14, 2017 range from 23802 to 23843. On a motion made by Lance Kalfell and seconded by Scott Sackman the treasurer’s report was approved. All in Favor. Motion Carried. Pat informed the members of the Board that she had been notified of a 4% increase in premium for the health insurance by the current carrier. MANAGER’S REPORT: Mr. Kortum reported to the Board that he had spoken to Mr. Gundlach of K & S Electric, and the VFD for the Fallon Relift pumping plant has been ordered and that they will start on the installation as soon at weather permits. Tim relayed to the members of the Board that Mr. Clarke Cameron had come into the office and informed him that he will be installing a pivot on his land in the Shirley Division. There should not be a problem with the project in moving forward with the irrigatable acres that are currently being assessed. Tim stated that it should help alleviate some issues with the availability of water for everyone on that pipeline. Tim informed the District No. 2 Board the pumps are all ready to go back in as soon as the ice is out of the river. He also stated that all the machines have been serviced and or repaired and are ready for operation. The meeting was adjourned on a motion by Scott Sackman, seconded by Lance Kalfell. All in Favor. Motion Carried. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President

Wednesday, February 15, 2017

January 23, 2017 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana January 23, 2017 The Special Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the twenty-third day of January, 2017 at 1:30 p.m. There were present and participating at the meeting: Barry Rakes Scott Sackman Lance Kalfell Also present and participating were: Tim Kortum, Manager, and Pat Davis, Treasurer. President Barry Rakes called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member. Thereupon, President Barry Rakes announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business. Pat and Tim presented to the Board the 2017 Proposed Budget. The members of the Board discussed the budget and looked at all line items on the proposed budget and discussed the upcoming year at length. After much discussion among all members present it was decided, for 2017 budget purposes, to transfer funds in the amount of $2.00 per acre for a total of $23,241.42, from Equipment and Emergency Reserve into the District 2 O & M fund account. On a motion made by Lance Kalfell and seconded by Scott Sackman it was RESOLVED, To transfer $23,241.42 ($2.00 per assessed acre) from Equipment and Emergency reserve account to District 2 O & M Account for the 2017 budget. All in favor. Motion carried. On a motion made by Lance Kalfell and seconded by Scott Sackman it was RESOLVED, To transfer $56,725.00 from System Rehab reserve account to District 2 O & M account to reflect the estimated 2016 net income. All in favor. Motion carried. With the Board's changes to the 2017 budget, it was approved by the Buffalo Rapids Irrigation District No. 2 Board of Commissioner. On a motion made by Lance Kalfell and seconded by Scott Sackman it was RESOLVED, That the 2017 Budget be approved. All in Favor. Motion carried. The meeting was adjourned on a motion by Scott Sackman, seconded by Lance Kalfell. All in Favor. Motion Carried. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President

January 12, 2017 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana January 12, 2017 The Ninth Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the twelfth day of January, 2017 at 1:30 p.m. There were present and participating at the meeting: Scott Sackman Lance Kalfell Also present and participating were: Tim Kortum, Manager, and Pat Davis, Treasurer. Vice President Scott Sackman called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member. Thereupon, Vice President Scott Sackman announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business. The Minutes from the December 14, 2016 Board Meetings were approved without corrections and, or additions, by Lance Kalfell seconded by Scott Sackman. All in Favor. Motion Carried FINANCIAL REPORT: Pat Davis presented current budget figures which included payroll and expenditures for January to all Board members for their review. A list of invoices to be paid was submitted and forms for the Prairie County Treasurer to transfer funds in the amount of $33,772.83, to cover payroll and invoices were signed. January 15th estimated payroll: $9,195.28; January estimated invoices $13,891.27; January 31st estimated payroll: $10,686.28. Investment transfer was also signed to invest the remaining monthly District No. 2 cash balances in the amount of $468,824.00 with Prairie County Pool. Warrant numbers from December 16, 2016 to January 12, 2017 range from 23772 to 23802. On a motion made by Lance Kalfell and seconded by Scott Sackman the treasurer’s report was approved. All in Favor. Motion Carried. Pat informed the members of the Board of the estimated annual carry over for the 2016 operating year. She also reported that she had completed and distributed all w-2's to employees and completed all required reporting for the 2016 year that is required at the time. She spoke with the members of the Board about the upcoming annual meeting. Everyone present agreed that the February meeting and the Annual meeting will be held on February 13, 2016 at 1:30 and 3:00. Pat will mail out notice to all producers in early February. Pat and Tim presented to the Board the 2017 Proposed Budget. The members of the Board discussed the budget at length and decided to table the completion of the budget until another meeting. Pat and Tim will continue to work on the proposal and report back to the Board. Petition for Nomination was given to Mr. Lance Kalfell who is up for nomination in the Shirley Division. MANAGER’S REPORT: Mr. Kortum relayed to all members present that he has moved forward with the acquisition of a loan for the quote received from K & S Electric do some needed work, and a variable frequency drive to be installed, at the Fallon Relift Pumping Plant before the next water season. He again stated the benefits of the VFD which in addition would also include a bearing temperature reading that could help with determining the need for maintenance. The Board agreed to move forward and sign all documents for both of K & S Electric's proposals for the Fallon Relift Pumping Plant. On a motion from Lance Kalfell and seconded by Scott Sackman the Board of Buffalo Rapids Irrigation District No. 2 authorized Tim Kortum and Barry Rakes to acquire funding through Stockman Bank of Montana, Terry Branch, and sign contracts for the acquisition of a variable frequency drive (VFD) for the Fallon Relift Pumping Plant. All in Favor. Motion Carried. On a motion from Lance Kalfell and seconded by Scott Sackman the Board of Buffalo Rapids Irrigation District No. 2 authorizes a loan for up to $82,000.00 (eighty-two thousand dollars) for the purchase of a VFD to be installed by K & S Electric at the Fallon Relift Pumping Plant. All in Favor. Motion Carried. Tim also informed the District No. 2 Board they had started some removal of sheet rock in the basement of the office building. Mr. Kortum also stated that a new garage door has been purchased for the south side of the machine shop building. The crew of District No. 2 has been trying to take as much time off as possible over the holiday season. The meeting was adjourned on a motion by Lance Kalfell, seconded by Scott Sackman. All in Favor. Motion Carried. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President

Tuesday, January 17, 2017

December 14, 2016 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana December 14, 2016 The Eighth Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the fourteenth day of December, 2016 at 1:30 p.m. There were present and participating at the meeting: Barry Rakes Scott Sackman Lance Kalfell Also present and participating were: Tim Kortum, Manager, and Pat Davis, Treasurer. President Barry Rakes called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member. Thereupon, President Barry Rakes announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business. The Minutes & Resolutions from the October 12, and November 14, 2016 Board Meetings were approved without corrections and, or additions, by Lance Kalfell seconded by Scott Sackman. All in Favor. Motion Carried FINANCIAL REPORT: Pat Davis presented current budget figures which included payroll and expenditures for December to all Board members for their review. A list of invoices to be paid was submitted and forms for the Prairie County Treasurer to transfer funds in the amount of $64,568.22, to cover payroll and invoices were signed. December 15th estimated payroll: $22,724.35; December estimated invoices $31,903.09; December 31st estimated payroll: $9,940.78. Transfers were also signed in the amount of $6,075.91 and $1,280.00 for 2016 employee compensation time payout and Montana Softworks invoice for database update, paid out of System Rehab Reserve account. Investment transfer was also signed to invest the remaining monthly District No. 2 cash balances in the amount of $386,419.00 with Prairie County Pool. Warrant numbers from November 16, 2016 to December 15, 2016 range from 23719 to 23772. On a motion made by Lance Kalfell and seconded by Scott Sackman the treasurer’s report was approved. All in Favor. Motion Carried. Pat informed the members of the Board that she had received notice on the ranking of the Shirley Main Canal Lining Grant. The grant is ranked 26th with 24 grants being funded at this time for the 2017 Legislature. The funding limit for the DNRC Renewable Resources Grant Program may be adjusted during the Legislative session and depends on the final budget figures. The District will be notified in early January of 2017 of the times and dates of the hearing relevant to our grant application. MANAGER’S REPORT: Tim Kortum reported to the Board that they have dry docked the Terry Pumping Plant and have rebuilt the #2 trash rack. All the pumps sent in for repairs have been completed and invoices have been received. The crew is busy cleaning the shops and getting ready to install the new lathe that was purchased. Most of the crew will be taking time off starting December 21, 2016 and coming back to work on January 03, 2017. Mr. Kortum relayed to all members present that he received a quote from K & S Electric do some needed work, and a variable frequency drive to be installed, at the Fallon Relift Pumping Plant before the next water season. Tim asked the Board if he could move forward with the implementation of a Variable Frequency Drive (VFD) for the Fallon Relift Pumping Plant along with the needed electrical maintenance. He felt that the benefits in water and electrical saving more than warranted the purchase and installation. The Board agreed that Tim could move forward with the project. The Board discussed at length, and also agreed that they would look into financing for the Fallon Relift VFD Project. Tim also informed the District No. 2 Board that it is time that some maintenance is done on the office building. Mr. Kortum also stated that a new garage door is needed on the south side of the machine shop building. The Board agreed that the needed material and maintenance is needed and that Tim should move forward with all projects. The meeting was adjourned on a motion by Scott Sackman, seconded by Lance Kalfell. All in Favor. Motion Carried. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President

Friday, December 16, 2016

November 14, 2016 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana November 14, 2016 The Seventh Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the fourteenth day of November, 2016 at 7:00 p.m. There were present and participating at the meeting: Barry Rakes Scott Sackman Lance Kalfell Also present and participating were: Tim Kortum, Manager, and Pat Davis, Treasurer. President Barry Rakes called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member. Thereupon, President Barry Rakes announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business. The Minutes & Resolutions from the September 12, and October 24, 2016 Board Meetings were approved without corrections and, or additions, by Scott Sackman seconded by Lance Kalfell. All in Favor. Motion Carried FINANCIAL REPORT: Pat Davis presented current budget figures which included payroll and expenditures for November to all Board members for their review. A list of invoices to be paid was submitted and forms for the Prairie County Treasurer to transfer funds in the amount of $36,820.92, to cover payroll and invoices were signed. November 15th estimated payroll: $10,586.68; November estimated invoices $16,293.46; November 30th estimated payroll: $9,940.78. Investment transfer was also signed to invest the remaining monthly District No. 2 cash balances in the amount of $273,620.00 with Prairie County Pool. Warrant numbers from September 13, 2016 to November 15, 2016 range from 23614 to 23719. On a motion made by Lance Kalfell and seconded by Scott Sackman the treasurer’s report was approved. All in Favor. Motion Carried. The Board discussed the proposed Managers contract for Mr. Timothy Kortum. The contract has no changes made except dates updated to current years terms. The Board agreed to accept the proposed Managers contract for a one year term for Mr. Timothy Kortum with a net salary of $1,500.00 (ONE THOUSAND FIVE HUNDRED DOLLARS) payable twice per month. On a motion made by Scott Sackman and seconded by Lance Kalfell is was RESOLVED, To accept the proposed Manager’s contract, for a one year term, for Mr. Timothy Kortum. All in Favor. Motion Carried. Pat presented to the Board a worksheet for year-end bonuses for the employees. All members present agreed that the bonus amount looked accurate and should be distributed to the employees on the December 15th payroll. Pat also asked the Board if they would like to have a Christmas party with the employees. It was determined that Tim Kortum will ask the employees if they would like to have an appreciation party after the holiday season. On a motion made by Lance Kalfell and seconded by Scott Sackman the treasurer’s report was approved. All in Favor. Motion Carried. MANAGER’S REPORT: Tim Kortum reported to the Board that they have pulled, for routine maintenance, three pumps this year. One in Shirley, one in Terry, and one in Fallon River. The Terry and Fallon River pumps are already done and ready to go back in. Tim stated that there will be no motors sent in for maintenance due to the need of sending so many in last year. They will however change the oil in the remaining motors in preparation for the next water season. Tim stated that they have been cleaning canals in the Fallon and Shirley Divisions. They will start in Terry this week. Bentonite was placed in a sluff area of canal in the Shirley Division. They crew will also clean out and work on repairing the trash rack at the Terry Pumping Plant while they are in that Division. The river levels are too high at this time to dry dock the Fallon River Pumping Plant to perform repairs on the trash racks at this time. Mr. Kortum relayed to all members present that he would like to have K & S Electric do some work at the Fallon Relift Pumping Plant before the next water season. Tim has also been looking into the purchase of a couple of lathes for the District so they can perform a larger amount of the maintenance work on the pumps themselves. He informed them that he had found one in Wyoming that he will most likely purchase. Tim Kortum informed the Board that he was contacted by the Department of Environmental Quality (DEQ) concerning a phone call made by the McAullay Ranch. The DEQ was concerned that District had drained a wetland without the proper permits to do so. Tim explained to them that it was a Buffalo Rapids Irrigation District No. 2 drain, and that they were only performing maintenance on the drain and did not need a permit to do so. Tim has been looking into pricing for a liner to place in the canal in the Shirley Division where seepage is an issue. Mr. Lance Kalfell installed a small quantity of canal liner in the canal that lies adjacent to his home. The seepage of the canal in that area is causing problems with water in the basement of his home. He supplied the liner, and Buffalo Rapids Irrigation District No. 2 supplied the labor and equipment. The Board agreed that a project like this should be treated the same as all other projects for a producer that helps the District. The producer will supply the materials and the District will help with labor and equipment if possible. Tim has been looking into pricing for a liner to place in problem areas of the canal in the Shirley Division where seepage is an issue also. The meeting was adjourned on a motion by Scott Sackman, seconded by Lance Kalfell. All in Favor. Motion Carried. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President

October 12, 2016 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana October 12, 2016 The Sixth Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was to be held on the twelfth day of October, 2016 at 7:00 p.m. There were present and participating at the meeting: Barry Rakes Also present and participating were: Tim Kortum, Secretary; Pat Davis, Treasurer. President Barry Rakes could not call the meeting to order. Thereupon, President Barry Rakes announced that legal notice had been given and a quorum was not present so that the meeting could not be held. FINANCIAL REPORT: Pat Davis presented current budget figures which included payroll and expenditures for October. A list of invoices to be paid was submitted to the President and the Secretary of the Board, and forms for the Prairie County Treasurer to transfer funds in the amount of $38,225.82, to cover payroll and invoices were signed. October 15th estimated payroll: $11,778.88; October estimated invoices: $15,860.26; October 31st estimated payroll: $10,586.68. Transfers were also signed in the amount of $17,048.69 for additional part time labor from January through September of 2016, and $4,706.00 for Montana Softworks Data Base Updates; paid out of System Rehab Reserve account. Transfers were also signed in the amount of $5,200.00 for the purchase of a Pickup VIN 1gtec14x47z148748, paid out of Equipment & Emergency Reserve Account. Investment transfer was also signed to invest the remaining monthly District No. 2 cash balances in the amount of $268,042.00 with Prairie County Pool. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President