MINUTES
of the
MEETING OF THE COMMISSIONERS
of the
BUFFALO RAPIDS BOARD OF CONTROL
Terry, Montana
September 09, 2009
The Fifth Regular Meeting of the members of the Buffalo Rapids Project Board of Control, at Terry, Prairie County, Montana, was held on the Ninth day of September, 2009, at 7:00 p.m.
There were present and participating at the meeting:
Don Buxbaum
Jim Finneman
Ric Holden
Barry Rakes
James Whitmer
Also present and participating were, Pat Davis, Assistant Secretary, Tim Kortum, Tanner Schillinger, Deb Schwarz, Al Ekblad; organizer for the International Union of Operating Engineers Local 400, William L Lingerfelt; International Representative for the Western Region, Kay Braddock; Terry Tribune.
Vice 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, Vice President 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.
Ric Holden made a motion, seconded by Jim Finneman, to approve the minutes, with corrections, from the August 12, 2009 meeting. James Whitmer made a motion, seconded by Jim Finneman, to not approve the August 19, 2009 minutes for District I and DII until all Board members were present for corrections and or additions. Resolution 2009-06 for District I was approved on a motion made by James Whitmer, and seconded by Don Buxbaum. Resolution 2009-07 was approved on a motion made by Jim Finneman, and seconded by Barry Rakes.
FINANCIAL REPORT:
Pat Davis presented current budget figures which included payroll and expenditures for September. A list of invoices to be paid was submitted and forms for the Prairie County Treasurer to transfer funds to cover payroll and invoices were signed. S.T.I.P. investment transfers were also signed to invest the remaining monthly District I and District II cash balances.
Don Buxbaum made a motion, seconded by James Whitmer, to approve the Treasurer’s report and the transfer of $47,113.42 for District I. Jim Finneman made a motion, seconded by Barry Rakes, that the Treasurer’s report and the transfer of $32,799.17 for District II be approved. Motions carried.
Pat asked the Board of Commissioners for a decision concerning the payment of the premium for Associated Employers Insurance Benefit Group, the current health insurance carrier. The Board discussed the issue at length and on a motion from James Whitmer and seconded by Don Buxbaum it was
RESOLVED:
Buffalo Rapids will pay the entire premium for health insurance for every employee until December 31, 2010.
Pat relayed loan documents to the President of District I, Don Buxbaum, and Vice President of the Board, Barry Rakes, from Stockman Bank President, Ron Pisk. The loan documents were to extend the agreement for the District I Stockman Bank pipe loan that was acquired to purchase pipe for pipeline project at that time. The documents were signed by District I President; Don Buxbaum, and Board of Control Vice President; Barry Rakes.
Pat informed the Board of the financial situation of Buffalo Rapids at this time. The funds left in each District at the end of September are not substantial enough to carry the Project until the end of the year. She had informed the Board that the current year would be a hard one due to the raise in assessments not being effective for a year after being set the previous year. She discussed with the Board the amounts that are still owed by producers, and the potential income for the Project for the remainder of the year. She advised the members of the Board that if funds were not received from outstanding taxes due and invoices due to the Project, she expected that the Project would have to operate on reserved funds.
Mr. Ric Holden asked Dave Schwarz how he as manager of the Project he was going to deal with this shortfall. He replied that he expected funds coming in for a grant project in September, and the crew is working on the completion of some pipelines for some added income. Spending would still be kept to a bare minimum.
Mr. Ric Holden asked Pat Davis why she was reporting that the Project was running low on funds but the budget did not reflect that. She informed Mr. Holden that the budget report that she made available to all Board members is for the month previous, and the projected shortfall in available funds is current.
On a motion from Ric Holden and seconded by Jim Finneman the treasurer’s report was approved.
MANAGER’S REPORT:
Dave Schwarz informed the Board of pipeline projects that they are in the works for this fall. Mr. Jeff Morrison has been subcontracted to put in pipeline lateral 3.2 in Shirley, then his crew will move on to Lateral 2.2 and 2.9 in District I. Mr. Morrison will be using Buffalo Rapids trencher for the larger pipe trenching and his own equipment for the rest of the project. Mr. Morrison is a well driller out of Gillette, Wyoming, but originally a local resident. He will be working with his own crew and equipment. He has agreed to put the pipeline in for the remaining amount left on the grant. The Buffalo Rapids crew will be working on the Martinson pipeline. The crew was ready to work on the pipelines earlier, but the producers wanted water and the crew was unable to do any work at that time. The crew will also be working on Lateral 34.5 in District I when time allows.
Dave reported that the Machine Shop has been gathering oil to use for the shop for the winter months. He also reported that the motors at Glendive 2 pumping plant will be gone through this winter. Those motors will be sent off to a machine shop in Billings, where they will be washed, insulated, put in new bearing, etc…. The estimated cost is about four to five thousand dollars apiece. Dave informed the Board that the pumps are rotated on a schedule to disperse costs. He told the Board that they should be prepared for a considerable cost to the Project in three to four years when the Glendive 1 motors need to be shipped off to be gone through. The cost for the Glendive 1 pumps will be considerably more due to their size. Dave also informed the member of the Board that there needs to be some more work done on Glendive 2 pumps wiring.
Dave informed the members of the Board that the crew was cleaning the cement mixer. They had currently taken out about a cubic yard of cement. The build-up of cement occurs when cement is mixed in colder weather. The crew is also working on the trenchers and getting them ready for this Fall. John Weaver has been working on cleaning up the spoil piles along the canal with the D6 Cat.
Dave spoke with the Board about the Fish Screening Project. He informed the Board that the Bureau of Reclamation has been holding up progress with the engineering portion of the project. He is also working on more funding for the project with the D.N.R.C. on the scope of work.
Dave passed to all present a paper explaining the issue of the 2004 black Ford pickup that was sold to him in 2007 by the Buffalo Rapids Project that was brought up at the August meeting. Dave wanted to clear up any questions concerning the issue. The paper read as follows: In 2004 Dave Schwarz was offered a position with Milk River Irrigation district with a salary of $66, 000.00. When the Buffalo Rapids Board of Control was told of the offer and that Schwarz intended on accepting the position, they met in private and made a counter offer. Since they did not have adequate fund to match or come close to this amount of money, they offered a combination of an increase in pay and the use of Buffalo Rapids vehicles for personal use. That offer was accepted by Schwarz and his contract was modified to reflect that agreement. In September of 2006 a 2004 Ford pickup was purchased from Montana State Surplus for the sum of $16,700. The pickup was used primarily for trips as Buffalo did not have any pickups for long trips. It made two trips to Denver (contactors for G2), hauling pump parts to Billings on several occasions, South Dakota to pick up a transformer for Fallon River, etc. A total of about 11,270 miles was put on it between the purchase date and the summer of 2007. In the Summer of 2007, in accordance with the agreement between Buffalo Rapids Board of Control and Dave Schwarz, the pickup was used to pull Deb Schwarz’s mobile kitchen to the Lapp wedding. Mr. Finneman and Mr. Leech complained about Schwarz using the BRP pickup for personal use. Some research showed that it was against state law to use any public equipment/vehicles for personal gain. This was brought to the attention of Ray Strasheim who was the Board of Control President at the time. Mr. Strasheim met with the Project attorney, Dale Hubber to address the situation. Mr. Hubber suggested that BRP sell the pickup to Schwarz in lieu of compensation for $1.00. At an ensuing Board meeting, the Board and Schwarz agreed to this arrangement and the Board of Control voted unanimously to remove the clause from Schwarz’s contract in regard to using BRP equipment /vehicles for personal use and sell the 2004 pickup to Schwarz for $1.00 in lieu of monetary compensation.
Dave also passed around for all present a paper explaining a company called Bendable Concrete Premix Technologies, LLC (BCPT). He stated that there were some questions at previous Board meetings concerning this issue also so he would like to clear them up. The handout states as follows: Yes, Dave Schwarz is part owner of a concrete company with Victor Li, Gregor Fischer, Michael Lepech, Tim Schwarz, and Deb Schwarz. The company specializes in premixes for engineered cementitious composite (ECC) (Bendable Concrete). The mixes are engineered by the PhD engineers-Li (developer of ECC), Fischer, and Lepech. It is then mixed through Quickcrete Company locations around the United States or for small quantities, it is mixed in Terry. Prior to forming the company, Dave Schwarz visited with Dale Hubber, attorney for Buffalo Rapids Project (BRP) to ascertain if there was any conflict of interest or any other possible problems with such an undertaking. Mr. Hubber advised Schwarz that there was no problem as long as BCPT did not sell any premix to BRP. BCPT has provided BRP with free engineering services is regard to concrete repair to concrete repair on Project structures.
Don Buxbaum expressed his thanks to Dave for writing it down and discussing it with the Board.
Jim Finneman asked Dave about the forms that were made by Li, Lepech, and Fischer for Homeland Security at the Buffalo Rapids Project. Dave explained that Li, Lepech, and Fischer had been contracted to make forms for the department of Home Land Security, and they chose to build those forms at B.R. Buffalo Rapids has been reimbursed for all expenses incurred in building the forms, any employee wages, and use of the facilities. Dave explained to Jim and the Board that this issue was brought to the Board at an earlier meeting. Dave had asked the Board if they had any problem with it and they had not.
Barry Rakes stated to the Board that he had been hearing rumors about the area producers wanting the crew gone and Dave gone. He stated that he had went and talked to the majority of the producers in District II. He noted that the majority of the people that he talked to did not feel that way, and that they were in support of Buffalo Rapids and its’ crew, and would like to see Dave Schwarz stay as manager of the Project. Mr. Finneman stated that one area producer approached him and reminded him of his fiduciary responsibilities. He stated that he would like to see someone come in from Human Services as a mediator. He would like to see someone come in that is neutral and help get some of the issues ironed out. Barry Rakes commented that it seems to be a lot of rumors going up and down the ditch and old issues being circulated and possibly getting blown out of proportion. Barry also stated that as a Project they should be proud of the progress that Buffalo Rapids has made in the last fifteen years. Barry Rakes stated that as a Board they should be looking forward, not backwards to improve Buffalo Rapids Project, or they will end up tearing apart the organization if things continue as they have been. He commented that as a Project they have been operating on a shoestring budget for many years and it is now catching up with them. Don Buxbaum stated that they have been working with a budget that was in the negative and are now having to raise assessment a lot in one year when they should have been raised years before. Don also stated that the questions that he has for the Board are questions he receives from his producers. Now that he has the answers to some of those questions he can possibly stop some of the rumors.
The members discussed as a Board the possibility of contacting an arbitrator. Barry Rakes stated that if they don’t do something they could tear the Project apart. James Whitmer agreed that he was in favor of checking into an arbitrator to move forward in a positive frame. Barry Rakes said that he had been talking with other irrigation projects and found that biannual meeting were a big help in those districts. He stated that he had a change of heart and would like to have a District I and District II biannual or annual informational meeting. He believes that it may help to discontinue the rumors that go around about the Project. On a motion made by Jim Finneman, and seconded by James Whitmer, it was decided to look into acquiring an arbitrator or a human services representative for Buffalo Rapids Project. No vote was called for and motion died.
Jim Finneman asked how much it would possibly be for a different attorney for the Project and how much Dale Hubber, the current attorney, charged for the year. He stated that he felt they should look outside of Terry, and look into hiring another attorney for Buffalo Rapids Project. Dave Schwarz informed Mr. Finneman that it would cost considerably more for a different attorney, and he was not sure that Dale Hubber still wanted to work for the Project if the employees joined the Union. It was decided to table the issue for another meeting.
Dave informed the Board that the employees of Buffalo Rapids Project had a meeting with President, Ray Roethle to discuss issues that concerned them. Dave reported that the meeting did not go very well, and may have possibly made things worse. Barry Rakes stated that the employees are scared for their job. Issues were brought up about the employees insurance, use of equipment, and use of facilities. Barry stated that the employees looked into how much protection that they had as employees and found out that they did not have much protection at all. Dave stated that the only protection they have at this time is his contract, and the fact that he has sole authority over the employees.
James Whitmer stated to the Board in his Division he had more concerns on pipelines and financial issues of Buffalo Rapids. He believes that more public meetings are crucial to keep his producers informed.
Barry Rakes stated that one of the issues they need to address at the informational meeting is the matter of water getting turned on earlier. He asked Dave to explain why they cannot pump out the siphons. Dave explained that through the freeze thaw cycles it deteriorates the cement if the water is pumped out of the siphons. Barry Rakes stated that he had talked with Tim Kortum and talked with him about what it would take to get the water on earlier. Tim informed Barry that they would need a bigger crew, more burning rigs, and producers to remove their property away from the ditch. Barry brought up the subject of the producers possibly burning their own ditch. James Whitmer stated that this was an issue they could discuss at the public meeting.
Barry Rakes stated to the members of the Board that he felt Dave Schwarz was too valuable to the Project to lose. He stated that since Dave has been with Buffalo Rapids Project he has put in approximately seven million dollars worth of pipe. Mr. Ric Holden stated that as a manager Dave could not even answer question from the Board, as in the case of the August 19 meeting. Dave replied that he felt that he was attacked at the August 19 board meeting and that the comment was out of line. Ric Holden commented to the Board that he felt that Dave was in error by not giving Ron Pisk, of Stockman Bank, the corrected budget from the June meeting. Dave replied that he had talked with Mr. Pisk and that he stated the revisions to the budget. Dave informed Mr. Holden that he felt that District I still did not have a positive balanced budget because they had included Machine Shop income and overage income against recommendations.
Dave informed the members of the Board that Kelly Hubbert, ditchrider for District I, Division II, has resigned as of September 30, 2009. Dave read Mr. Hubberts’ resignation to the Board.
Ric Holden stated that a T.V. reporter out of Glendive told him that Dave was present at a meeting in South Dakota for a Missouri River Recovery Implementation Committee (M.R.R.I.C.). He asked Dave Schwarz who authorized that trip and who paid for the expenses. Dave informed Mr. Holden that all of his expenses were paid for by a D.N.R.C. grant and that the Board was aware of Dave’s participation in the M.R.R.I.C. committee from the very beginning.
Agenda item #C from Mr. Ric Holden: Set date for annual meeting. On a motion made by James Whitmer and seconded by Jim Finneman it was decided to hold a joint District I and District II annual meeting on November 03, 2009 at 1:00 pm at a to be determined meeting place. Pat Davis will look into what is available for that date. All in favor. The Board discussed with Dave Schwarz what format of the meeting would work best. The Board also discussed with the manager what issues they would like covered at the joint meeting in November.
Agenda item #D from Mr. Ric Holden: Set date for employee meeting with the Board. Union representative, Al Ekblad, informed the Board that the employees of Buffalo Rapids Project filed on September 03, 2009 with the Department of Labor for unit clarification. The majority of the employees have asked for representation from the Union. Mr. Ekblad informed the Board that any meeting held with the employees and the Board will be with Union representation for the employees of Buffalo Rapids Project. Mr. Holden withdrew his agenda item at that time.
Agenda item #E from Ray Roethle-tabled until next meeting.
Next meeting will be held on October 14, 2009.
There being no further business to be considered, and no objection, the said meeting of the Commissioners of the Buffalo Rapids Project Board of Control adjourned.
ATTESTED:
________________________________ ____________________________________
Dave Schwarz, Secretary Ray Roethle, President
of the
MEETING OF THE COMMISSIONERS
of the
BUFFALO RAPIDS BOARD OF CONTROL
Terry, Montana
September 09, 2009
The Fifth Regular Meeting of the members of the Buffalo Rapids Project Board of Control, at Terry, Prairie County, Montana, was held on the Ninth day of September, 2009, at 7:00 p.m.
There were present and participating at the meeting:
Don Buxbaum
Jim Finneman
Ric Holden
Barry Rakes
James Whitmer
Also present and participating were, Pat Davis, Assistant Secretary, Tim Kortum, Tanner Schillinger, Deb Schwarz, Al Ekblad; organizer for the International Union of Operating Engineers Local 400, William L Lingerfelt; International Representative for the Western Region, Kay Braddock; Terry Tribune.
Vice 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, Vice President 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.
Ric Holden made a motion, seconded by Jim Finneman, to approve the minutes, with corrections, from the August 12, 2009 meeting. James Whitmer made a motion, seconded by Jim Finneman, to not approve the August 19, 2009 minutes for District I and DII until all Board members were present for corrections and or additions. Resolution 2009-06 for District I was approved on a motion made by James Whitmer, and seconded by Don Buxbaum. Resolution 2009-07 was approved on a motion made by Jim Finneman, and seconded by Barry Rakes.
FINANCIAL REPORT:
Pat Davis presented current budget figures which included payroll and expenditures for September. A list of invoices to be paid was submitted and forms for the Prairie County Treasurer to transfer funds to cover payroll and invoices were signed. S.T.I.P. investment transfers were also signed to invest the remaining monthly District I and District II cash balances.
Don Buxbaum made a motion, seconded by James Whitmer, to approve the Treasurer’s report and the transfer of $47,113.42 for District I. Jim Finneman made a motion, seconded by Barry Rakes, that the Treasurer’s report and the transfer of $32,799.17 for District II be approved. Motions carried.
Pat asked the Board of Commissioners for a decision concerning the payment of the premium for Associated Employers Insurance Benefit Group, the current health insurance carrier. The Board discussed the issue at length and on a motion from James Whitmer and seconded by Don Buxbaum it was
RESOLVED:
Buffalo Rapids will pay the entire premium for health insurance for every employee until December 31, 2010.
Pat relayed loan documents to the President of District I, Don Buxbaum, and Vice President of the Board, Barry Rakes, from Stockman Bank President, Ron Pisk. The loan documents were to extend the agreement for the District I Stockman Bank pipe loan that was acquired to purchase pipe for pipeline project at that time. The documents were signed by District I President; Don Buxbaum, and Board of Control Vice President; Barry Rakes.
Pat informed the Board of the financial situation of Buffalo Rapids at this time. The funds left in each District at the end of September are not substantial enough to carry the Project until the end of the year. She had informed the Board that the current year would be a hard one due to the raise in assessments not being effective for a year after being set the previous year. She discussed with the Board the amounts that are still owed by producers, and the potential income for the Project for the remainder of the year. She advised the members of the Board that if funds were not received from outstanding taxes due and invoices due to the Project, she expected that the Project would have to operate on reserved funds.
Mr. Ric Holden asked Dave Schwarz how he as manager of the Project he was going to deal with this shortfall. He replied that he expected funds coming in for a grant project in September, and the crew is working on the completion of some pipelines for some added income. Spending would still be kept to a bare minimum.
Mr. Ric Holden asked Pat Davis why she was reporting that the Project was running low on funds but the budget did not reflect that. She informed Mr. Holden that the budget report that she made available to all Board members is for the month previous, and the projected shortfall in available funds is current.
On a motion from Ric Holden and seconded by Jim Finneman the treasurer’s report was approved.
MANAGER’S REPORT:
Dave Schwarz informed the Board of pipeline projects that they are in the works for this fall. Mr. Jeff Morrison has been subcontracted to put in pipeline lateral 3.2 in Shirley, then his crew will move on to Lateral 2.2 and 2.9 in District I. Mr. Morrison will be using Buffalo Rapids trencher for the larger pipe trenching and his own equipment for the rest of the project. Mr. Morrison is a well driller out of Gillette, Wyoming, but originally a local resident. He will be working with his own crew and equipment. He has agreed to put the pipeline in for the remaining amount left on the grant. The Buffalo Rapids crew will be working on the Martinson pipeline. The crew was ready to work on the pipelines earlier, but the producers wanted water and the crew was unable to do any work at that time. The crew will also be working on Lateral 34.5 in District I when time allows.
Dave reported that the Machine Shop has been gathering oil to use for the shop for the winter months. He also reported that the motors at Glendive 2 pumping plant will be gone through this winter. Those motors will be sent off to a machine shop in Billings, where they will be washed, insulated, put in new bearing, etc…. The estimated cost is about four to five thousand dollars apiece. Dave informed the Board that the pumps are rotated on a schedule to disperse costs. He told the Board that they should be prepared for a considerable cost to the Project in three to four years when the Glendive 1 motors need to be shipped off to be gone through. The cost for the Glendive 1 pumps will be considerably more due to their size. Dave also informed the member of the Board that there needs to be some more work done on Glendive 2 pumps wiring.
Dave informed the members of the Board that the crew was cleaning the cement mixer. They had currently taken out about a cubic yard of cement. The build-up of cement occurs when cement is mixed in colder weather. The crew is also working on the trenchers and getting them ready for this Fall. John Weaver has been working on cleaning up the spoil piles along the canal with the D6 Cat.
Dave spoke with the Board about the Fish Screening Project. He informed the Board that the Bureau of Reclamation has been holding up progress with the engineering portion of the project. He is also working on more funding for the project with the D.N.R.C. on the scope of work.
Dave passed to all present a paper explaining the issue of the 2004 black Ford pickup that was sold to him in 2007 by the Buffalo Rapids Project that was brought up at the August meeting. Dave wanted to clear up any questions concerning the issue. The paper read as follows: In 2004 Dave Schwarz was offered a position with Milk River Irrigation district with a salary of $66, 000.00. When the Buffalo Rapids Board of Control was told of the offer and that Schwarz intended on accepting the position, they met in private and made a counter offer. Since they did not have adequate fund to match or come close to this amount of money, they offered a combination of an increase in pay and the use of Buffalo Rapids vehicles for personal use. That offer was accepted by Schwarz and his contract was modified to reflect that agreement. In September of 2006 a 2004 Ford pickup was purchased from Montana State Surplus for the sum of $16,700. The pickup was used primarily for trips as Buffalo did not have any pickups for long trips. It made two trips to Denver (contactors for G2), hauling pump parts to Billings on several occasions, South Dakota to pick up a transformer for Fallon River, etc. A total of about 11,270 miles was put on it between the purchase date and the summer of 2007. In the Summer of 2007, in accordance with the agreement between Buffalo Rapids Board of Control and Dave Schwarz, the pickup was used to pull Deb Schwarz’s mobile kitchen to the Lapp wedding. Mr. Finneman and Mr. Leech complained about Schwarz using the BRP pickup for personal use. Some research showed that it was against state law to use any public equipment/vehicles for personal gain. This was brought to the attention of Ray Strasheim who was the Board of Control President at the time. Mr. Strasheim met with the Project attorney, Dale Hubber to address the situation. Mr. Hubber suggested that BRP sell the pickup to Schwarz in lieu of compensation for $1.00. At an ensuing Board meeting, the Board and Schwarz agreed to this arrangement and the Board of Control voted unanimously to remove the clause from Schwarz’s contract in regard to using BRP equipment /vehicles for personal use and sell the 2004 pickup to Schwarz for $1.00 in lieu of monetary compensation.
Dave also passed around for all present a paper explaining a company called Bendable Concrete Premix Technologies, LLC (BCPT). He stated that there were some questions at previous Board meetings concerning this issue also so he would like to clear them up. The handout states as follows: Yes, Dave Schwarz is part owner of a concrete company with Victor Li, Gregor Fischer, Michael Lepech, Tim Schwarz, and Deb Schwarz. The company specializes in premixes for engineered cementitious composite (ECC) (Bendable Concrete). The mixes are engineered by the PhD engineers-Li (developer of ECC), Fischer, and Lepech. It is then mixed through Quickcrete Company locations around the United States or for small quantities, it is mixed in Terry. Prior to forming the company, Dave Schwarz visited with Dale Hubber, attorney for Buffalo Rapids Project (BRP) to ascertain if there was any conflict of interest or any other possible problems with such an undertaking. Mr. Hubber advised Schwarz that there was no problem as long as BCPT did not sell any premix to BRP. BCPT has provided BRP with free engineering services is regard to concrete repair to concrete repair on Project structures.
Don Buxbaum expressed his thanks to Dave for writing it down and discussing it with the Board.
Jim Finneman asked Dave about the forms that were made by Li, Lepech, and Fischer for Homeland Security at the Buffalo Rapids Project. Dave explained that Li, Lepech, and Fischer had been contracted to make forms for the department of Home Land Security, and they chose to build those forms at B.R. Buffalo Rapids has been reimbursed for all expenses incurred in building the forms, any employee wages, and use of the facilities. Dave explained to Jim and the Board that this issue was brought to the Board at an earlier meeting. Dave had asked the Board if they had any problem with it and they had not.
Barry Rakes stated to the Board that he had been hearing rumors about the area producers wanting the crew gone and Dave gone. He stated that he had went and talked to the majority of the producers in District II. He noted that the majority of the people that he talked to did not feel that way, and that they were in support of Buffalo Rapids and its’ crew, and would like to see Dave Schwarz stay as manager of the Project. Mr. Finneman stated that one area producer approached him and reminded him of his fiduciary responsibilities. He stated that he would like to see someone come in from Human Services as a mediator. He would like to see someone come in that is neutral and help get some of the issues ironed out. Barry Rakes commented that it seems to be a lot of rumors going up and down the ditch and old issues being circulated and possibly getting blown out of proportion. Barry also stated that as a Project they should be proud of the progress that Buffalo Rapids has made in the last fifteen years. Barry Rakes stated that as a Board they should be looking forward, not backwards to improve Buffalo Rapids Project, or they will end up tearing apart the organization if things continue as they have been. He commented that as a Project they have been operating on a shoestring budget for many years and it is now catching up with them. Don Buxbaum stated that they have been working with a budget that was in the negative and are now having to raise assessment a lot in one year when they should have been raised years before. Don also stated that the questions that he has for the Board are questions he receives from his producers. Now that he has the answers to some of those questions he can possibly stop some of the rumors.
The members discussed as a Board the possibility of contacting an arbitrator. Barry Rakes stated that if they don’t do something they could tear the Project apart. James Whitmer agreed that he was in favor of checking into an arbitrator to move forward in a positive frame. Barry Rakes said that he had been talking with other irrigation projects and found that biannual meeting were a big help in those districts. He stated that he had a change of heart and would like to have a District I and District II biannual or annual informational meeting. He believes that it may help to discontinue the rumors that go around about the Project. On a motion made by Jim Finneman, and seconded by James Whitmer, it was decided to look into acquiring an arbitrator or a human services representative for Buffalo Rapids Project. No vote was called for and motion died.
Jim Finneman asked how much it would possibly be for a different attorney for the Project and how much Dale Hubber, the current attorney, charged for the year. He stated that he felt they should look outside of Terry, and look into hiring another attorney for Buffalo Rapids Project. Dave Schwarz informed Mr. Finneman that it would cost considerably more for a different attorney, and he was not sure that Dale Hubber still wanted to work for the Project if the employees joined the Union. It was decided to table the issue for another meeting.
Dave informed the Board that the employees of Buffalo Rapids Project had a meeting with President, Ray Roethle to discuss issues that concerned them. Dave reported that the meeting did not go very well, and may have possibly made things worse. Barry Rakes stated that the employees are scared for their job. Issues were brought up about the employees insurance, use of equipment, and use of facilities. Barry stated that the employees looked into how much protection that they had as employees and found out that they did not have much protection at all. Dave stated that the only protection they have at this time is his contract, and the fact that he has sole authority over the employees.
James Whitmer stated to the Board in his Division he had more concerns on pipelines and financial issues of Buffalo Rapids. He believes that more public meetings are crucial to keep his producers informed.
Barry Rakes stated that one of the issues they need to address at the informational meeting is the matter of water getting turned on earlier. He asked Dave to explain why they cannot pump out the siphons. Dave explained that through the freeze thaw cycles it deteriorates the cement if the water is pumped out of the siphons. Barry Rakes stated that he had talked with Tim Kortum and talked with him about what it would take to get the water on earlier. Tim informed Barry that they would need a bigger crew, more burning rigs, and producers to remove their property away from the ditch. Barry brought up the subject of the producers possibly burning their own ditch. James Whitmer stated that this was an issue they could discuss at the public meeting.
Barry Rakes stated to the members of the Board that he felt Dave Schwarz was too valuable to the Project to lose. He stated that since Dave has been with Buffalo Rapids Project he has put in approximately seven million dollars worth of pipe. Mr. Ric Holden stated that as a manager Dave could not even answer question from the Board, as in the case of the August 19 meeting. Dave replied that he felt that he was attacked at the August 19 board meeting and that the comment was out of line. Ric Holden commented to the Board that he felt that Dave was in error by not giving Ron Pisk, of Stockman Bank, the corrected budget from the June meeting. Dave replied that he had talked with Mr. Pisk and that he stated the revisions to the budget. Dave informed Mr. Holden that he felt that District I still did not have a positive balanced budget because they had included Machine Shop income and overage income against recommendations.
Dave informed the members of the Board that Kelly Hubbert, ditchrider for District I, Division II, has resigned as of September 30, 2009. Dave read Mr. Hubberts’ resignation to the Board.
Ric Holden stated that a T.V. reporter out of Glendive told him that Dave was present at a meeting in South Dakota for a Missouri River Recovery Implementation Committee (M.R.R.I.C.). He asked Dave Schwarz who authorized that trip and who paid for the expenses. Dave informed Mr. Holden that all of his expenses were paid for by a D.N.R.C. grant and that the Board was aware of Dave’s participation in the M.R.R.I.C. committee from the very beginning.
Agenda item #C from Mr. Ric Holden: Set date for annual meeting. On a motion made by James Whitmer and seconded by Jim Finneman it was decided to hold a joint District I and District II annual meeting on November 03, 2009 at 1:00 pm at a to be determined meeting place. Pat Davis will look into what is available for that date. All in favor. The Board discussed with Dave Schwarz what format of the meeting would work best. The Board also discussed with the manager what issues they would like covered at the joint meeting in November.
Agenda item #D from Mr. Ric Holden: Set date for employee meeting with the Board. Union representative, Al Ekblad, informed the Board that the employees of Buffalo Rapids Project filed on September 03, 2009 with the Department of Labor for unit clarification. The majority of the employees have asked for representation from the Union. Mr. Ekblad informed the Board that any meeting held with the employees and the Board will be with Union representation for the employees of Buffalo Rapids Project. Mr. Holden withdrew his agenda item at that time.
Agenda item #E from Ray Roethle-tabled until next meeting.
Next meeting will be held on October 14, 2009.
There being no further business to be considered, and no objection, the said meeting of the Commissioners of the Buffalo Rapids Project Board of Control adjourned.
ATTESTED:
________________________________ ____________________________________
Dave Schwarz, Secretary Ray Roethle, President
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