MINUTES
of the
MEETING OF THE COMMISSIONERS
of the
BUFFALO RAPIDS BOARD OF CONTROL
Terry, Montana
November 11, 2009
The Seventh Regular Meeting of the members of the Buffalo Rapids Project Board of Control, at Terry, Prairie County, Montana, was held on the Eleventh day of November, 2009, at 3:00 p.m.
There were present and participating at the meeting:
Don Buxbaum
Ray Roethle
Scott Sackman
Jim Finneman
Barry Rakes
James Whitmer
Ric Holden
Also present and participating were, Pat Davis, Assistant Secretary, Kay Braddock; Terry Tribune, Lynn Wittmayer, Mark Haas, Allen Gierke, Tanner Schillinger, Sam Kortum, Strad Benjamin, Sandy Helmuth, Larry Heimbuch.
President Ray Roethle 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 Roethle announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business.
Barry Rakes made a motion, seconded by Don Buxbaum, to approve the minutes, with corrections, from the October 14, 2009 meeting.
FINANCIAL REPORT:
Pat Davis presented current budget figures which included payroll and expenditures for November. 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.
James Whitmer made a motion, seconded by Don Buxbaum, to approve the Treasurer’s report and the transfer of $36,142.80 for District I. Scott Sackman made a motion, seconded by Barry Rakes, that the Treasurer’s report and the transfer of $19,932.20 for District II be approved. Motions carried.
Pat informed the Board that her computer hard drive had crashed earlier in the month. Darryl Pisk, Montana Softworks, had set up the books on another computer, but some information was not easily retrievable. The computer hard drive had to be sent to a company to be retrieved, and are still waiting on the results. Pat informed the Board that it would cost quite a bit of money to do this, the estimates range from seven hundred and fifty dollars to two thousand and nine hundred dollars. Mr. Holden asked Pat if there would be a problem with the overage being billed. Pat assured him that she had already ran hard copies of all water usage, so no information would be lost for the water ran and the overage incurred for the operating year of 2009.
Pat Davis presented to the Board a copy of the proposed amounts for Christmas Bonuses for the year 2009. Ric Holden asked for Mr. Larry Heimbuch to speak to the Board concerning the Christmas bonuses. Mr. Heimbuch stated that he was on the Board at the time Buffalo Rapids had instilled the bonuses. He stated that they had only started them because the Project was doing well at that time. Mr. Hiembuch also stated that the bonuses started approximately twenty five years ago. Mr. Whitmer spoke that they should probably have discussed this issue months earlier, not right before Christmas. Mr. Whitmer had concerns about what it would do to the employees and families Christmas if they do not give bonuses this year. He suggested that they pay the employees half of the proposed amount for the bonuses this year. Mr. Ric Holden stated that it would be much harder to hand those employees a pink slip instead. He also stated that the Board can’t spend next year’s money. Barry Rakes advised the Board to read the letter that was presented to them by the union. The letter stated that during the period while negotiating the first contract, Buffalo Rapids Board of Control is required to maintain all wages, benefits, and working conditions, including those established by past practice, as they are currently established. On a motion made by Barry Rakes, and seconded by Scott Sackman, it was moved that District II pay for District II’s half of the bonuses for the year. Two in favor, one against. Motion carried. Larry Heimbuch stated that he wasn’t sure that was legal for District II to make and pass a motion like that. Mr. Holden stated that District II can’t make a motion that supersedes the Board of Control. Mr. Rakes stated that the bonuses are split into District I and District II. Mr. Whitmer asked that employees present if a portion of the bonus was acceptable. Mr. Larry Heimbuch stated to the Board that the employees have it pretty good as Mr. Ric Holden showed at the annual meeting. Mr. Allen Gierke, Machine shop foreman, stated that after the annual meeting he didn’t feel like an asset to Buffalo Rapids but a liability. Don Buxbaum asked Pat Davis if they had the money to pay the bonuses for the year. Mrs. Davis explained to Mr. Buxbaum that she had given them the report on their finances and that would have to be a decision of the Board. After much discussion between the Board and the Buffalo Rapids employees, and public present, it was decided to distribute fifty percent of the proposed bonuses for each employee. On a motion made by James Whitmer and seconded by Barry Rakes, it was
RESOLVED: That fifty percent of the Christmas bonuses be distributed to each employee of the proposed amount.
Motion carried.
5 in favor 2 against
Pat Davis presented to the Board list of water overages incurred in 2009. On a motion made by Jim Finneman and seconded by Don Buxbaum it was
RESOLVED: That the Water Overages for the 2009 water season be billed in full, $9.60 per acre foot for District I, and $9.80 per acre foot for District II.
All in Favor
Motion carried.
Pat Davis also asked for the Board’s opinion on the Buffalo Rapid’s Christmas party. On a motion made by James Whitmer and seconded by Jim Finneman it was decided that there would not be a Christmas party sponsored by the Project this year.
On a motion from Ric Holden and seconded by Don Buxbaum the treasurer’s report was approved, with a segregation of the Anderson ZurMuehlem & Co. bill. All in Favor.
Questions were brought up as to whether District II can refuse to pay for the CPA audit done by Anderson ZurMuehlen & Co.. Barry Rakes stated that the majority of their District voted that they did not feel the need for the audit and were against having it done. Mr. Holden wanted it noted in the minutes that District II was refusing to pay for, and split a bill that was voted for by the Board of Control. Barry Rakes stated that he felt the CPA audit was brought in under false pretenses. Scott Sackman and Barry Rakes expressed that it was never brought to the Board that it would be a fraud detection audit also. They also expressed that they were satisfied with the audit that was already done earlier in the year. Mr. Rakes asked why the CPA audit cost $3,983.00 when Ric stated at that meeting it would only be $2,400.00. Mr. Holden stated that the bill was prorated, plus the cost of having it in writing. Mrs. Davis expressed that the contract that was dated the same day that Ric brought it to the Board, stated $3,000.00 not $2,400.00.
Mr. Ric Holden spoke to the members of the Board that they would have to take the CPA written report home and study it, then make decisions at the December meeting with changes in policy. The members of the Board agreed. Mr. Holden asked who was going to look into the legalities of District II not paying their portion of the Anderson ZurMuehlen & Co. bill. Mr. Mark Haas stated that they have an attorney on retainer and to use him. Ric Holden will contact Dale Hubber on the issue.
Mr. Ray Roethle stated that he is to form a subcommittee for union negotiating. Mr. Roethle appointed to the union negotiating committee, Mr. Barry Rakes, Mr. James Whitmer, Mr. Ric Holden, Mr. Doug Buxbaum, and possibly Mr. Rick Harding. Mr. Jim Finneman or Mr. Barry Rakes will ask Mr. Harding if he would like to participate in the subcommittee.
Mr. Ric Holden passed out to all present a profile of Mr. Steven Lehman for an attorney for labor law. Ric Holden stated that Mr. Lehman was recommended by Associated Employers. The services for Steven Lehman will be a retainer of $5,000.00 and $255.00 per hour. Mr. Holden stated that the retainer would have to be paid before the attorney would speak with them. Mr. Holden made a motion, seconded by Jim Finneman to hire Mr. Steven Lehman for purposed of labor issues. Barry Rakes stated that they do not have the money to hire a lawyer. He also stated that he felt they should first talk with the union before they hire an attorney. Mr. Holden stated that they can’t afford to have the attorney come to every meeting, but Buffalo Rapids does need to hire a labor attorney to deal with the union. Scott Sackman stated that they should not hire the attorney until he is needed. Ric expressed that they can’t go into a meeting unprepared. Don Buxbaum stated that he was not in favor of hiring an attorney right now. Mr. Sandy Helmuth stated that the Board needs to be careful not to make the wrong remark or the Board might be liable, or that member may be liable while they are speaking with the union. Mr. Holden stated that he felt that they need to hire Mr. Lehman right away. Barry stated again that he would like to see what the union has to say first. Mr. Holden expressed that in doing that it was a stall tactic, and they need to move things forward. Mr. Rakes expressed to Mr. Holden that he did not want District II to be drug into something that they did not agree with again. Mr. Rakes stated that he would call Mr. Ekblad or Mr. Lingerfelt of the union and speak with them and see if they could sit down with them and listen to what they had to say. Mr. Holden withdrew his earlier motion. Mr. Whitmer asked Mr. Rakes to express to the union that they were not ready to negotiate, but just listen to what they had to say.
Mr. Barry Rakes, District II President, spoke with the Board about splitting the two Districts peacefully. He stated that each District would have to have their own manager, employees etc… Mr. Rakes stated that he had spoken with the Bureau of Reclamation on the subject. He stated to the Board that the Bureau of Reclamation stated to him that they have to give District I ninety days notice of the intent to split the Districts, or if both Districts agree it could be done sooner. Mr. Don Buxbaum stated that when he had worked for the Project he had noticed that things were not treated equally between the two Districts, and he felt that is why District I producers are upset. Sandy Helmuth asked if that would make union negotiations different. Barry Rakes stated that all employees are union regardless of splitting. Mr. Ray Roethle stated that all the pipelines would have to be completed before they could split the two Districts. Mr. Whitmer was concerned that they would loose focus on the problems at hand. Mr. Holden stated that there would have to be three things considered before it can be brought up: 1) the issue has to be easily understood 2) it needs to be wanted by the producers 3) it can’t cost a lot of money. Mr. Holden didn’t feel that the issue was easily understood, and he didn’t feel that the people want it. Scott Sackman and Barry Rakes stated that the majority of the producers in their Divisions want to split the two Districts. Mr. Holden felt that he did not see any reason that the Project can’t work as a whole. Jim Whitmer stated that he would like to have some more facts. Barry Rakes stated that he brought it up to discuss it and see what the rest of the Board thought. It was discussed among Board members whether they would need all employees if they split the two Districts, or contract out labor. Mr. Holden stated that it would have to go to a vote of the people before they could split. Mr. Barry Rakes stated that they would have to definitely do that at least in District II. Mr. Holden stated that it would have to come to a vote for District I also. Mr. Rakes responded that it would only have to be approved for one District or the other, it would not have to be agreed upon by both Districts. Mr. Rakes expressed that he had spoke at length with Dick Long, Bureau of Reclamation, about the splitting of the two Districts. He stated that it could be done mutually or not mutually with ninety days notice to the other District.
Mr. Don Buxbaum brought to the Board’s attention a fax that was received from Michael K. Blend Inc. concerning Rainbow Estates located in Glendive, MT. The fax requested the District I Board to grant cancellation of all delinquent taxes, penalties and interest owed to Buffalo Rapids for the Rainbow Estates lots. On a motion made by Don Buxbaum, and seconded by James Whitmer, it was
RESOLVED: To not grant cancellation of all delinquent taxes, penalties and interest owed to Buffalo Rapids for the Rainbow Estates lots.
Motion carried.
Dave Schwarz or Pat Davis will follow through with correspondence for the motion to Michael K. Blend, Inc.
Mr. Ray Roethle stated that he is to form a subcommittee as a search committee for a new manager. Mr. Roethle appointed to the search committee, Mr. Jim Finneman, Mr. Don Buxbaum, Mr. Scott Sackman, and Mr. Larry Heimbuch.
Mr. Ric Holden revisited the compensated absences worksheet that he had presented at the annual meeting. He stated that he would call Associated Employers to take a look at the worksheet to get a basis as to where they would start when they start negotiating with the union, and what state statute reads. Mr. Finneman asked the employees if they had a punch time clock in the shop. Strad Benjamin stated that they had always filled out their time sheet and had them approved with a signature.
Mr. Ric Holden brought to the Board a revised resolution to deal with delinquent taxes and overage in case of land sale, or a prerequisite to water delivery. The revised resolution read in part that the Board hereby requires that all current and delinquent taxes and assessment and other financial obligations owing to the District, including overage must be paid as a prerequisite to water service. Mr. Whitmer expressed that he felt that the new revised resolution still did not protect Buffalo Rapids in case of overage incurred on a piece of land that sold to a different owner. On a motion made by Ric Holden and seconded by James Whitmer it was
RESOLVED: Section 87-7-1902 (4) of the Montana Code Annotated provides that the Board of commissioners of an irrigation district may require the prompt payment of all current and delinquent taxes and assessments and other financial obligations owing the district as a prerequisite to water service. The Board hereby requires that all current and delinquent taxes and assessments and other financial obligations owing to the district, including water overage, must be paid as a prerequisite to water service.
This policy is adopted and shall be entered upon the records of the Board. This policy shall be printed in a convenient form for distribution in the district.
All in Favor
Motion carried.
The secretary will mail a copy of finalized resolution to all local title companies in the area.
Mr. Srad Benjamin made a statement to the Board with issues concerning the annual meeting. Mr. Benjamin stated that he took offense to Ric Holden’s presentation on the employees of Buffalo Rapids at the annual meeting. He stated that Mr. Holden’s presentation included in the wages of the employees certain benefits, such as workman’s comp and social security that the employer is required to pay by law. Mr. Benjamin also stated that he had contacted the Department of Revenue, and the figures that he was given for average annual income were not the same as Mr. Holden presented. He stated that he was very disappointed with what was presented concerning the wages of the employees. He also stated that Mr. Holden stated that the employees threatened to strike before. He informed Mr. Holden and the Board that he had never said anything about a strike and had not heard any other employee say anything about a strike. Srad stated that Mr. Schwarz had contacted the Board about possibilities of what could happen. He stated to Mr. Holden that he did not appreciate having words put in his mouth. Strad spoke that he did not consider himself a liability to Buffalo Rapids, and thought that the employees as a whole are an asset. He expressed that things are to the point that he does no know what to do. Mr. Whitmer expressed that he appreciated his candor. Mr. Benjamin stated that if he does not stand up and say something when he doesn’t agree, it is paramount to saying that it is correct and he agrees. Strad Benjamin stated that they are dealing with people and they don’t appreciate what was presented. Mr. Barry Rakes stated that he had no idea that anything was going to be presented at the annual meeting like that, and had no knowledge of it. Barry stated that he was very upset about what was presented at that meeting, he did not think it was right, and wanted it to be noted. Lynn Wittmayer had the same feeling as Barry Rakes, and did not feel it was right to put everyone’s wages out there and handed out at the meeting. She stated that a lot of the employees they have are specialized, and their wages should not be average, but more that average. Sandy Helmuth asked if the wages and benefits included the use of heavy equipment. Strad informed Mr. Helmuth that the employees have to pay for the rental of the heavy equipment they do not get to use it for free. Mr. Benjamin stated that as a member of the Board it is their responsibility to stand up and say something if they don’t agree, because if they don’t it is saying that they do. Strad Benjamin thanked the Board for their time. Mr. Ric Holden stated that he did call an analyst to get the average annual income, and there were several different categories that had to be considered when looking into that subject. He stated that concerning the worksheet he felt that the farmers needed to know the bottom line. Mrs. Kay Braddock asked Mr. Holden if it was a little tacky to have the names included with the salaries. Mr. Holden responded no not at all, it is public information. Mark Haas asked if Buffalo Rapids is audited once a year and yearly. Many members of the Board said yes they are. Mr. Haas asked why a special auditor was brought in from Bozeman. Mr. Helmuth suggested that they use the state auditors. Mr. Rakes stated that they just had an audit done and there were no findings. Mr. Rakes also stated that it was probably a slap in the face for Mrs. Pat Davis to have a second auditor come in. Mr. Rakes spoke that the second auditor was quoted as being $2,400.00 and ended up being almost $4,000.00, and how does District II protect itself when it is being out voted every time.
Next regular scheduled meeting will be held on December 10, 2009 at 3:00pm.
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:
________________________________ ____________________________________
Pat Davis, Assistant Secretary Ray Roethle, President
of the
MEETING OF THE COMMISSIONERS
of the
BUFFALO RAPIDS BOARD OF CONTROL
Terry, Montana
November 11, 2009
The Seventh Regular Meeting of the members of the Buffalo Rapids Project Board of Control, at Terry, Prairie County, Montana, was held on the Eleventh day of November, 2009, at 3:00 p.m.
There were present and participating at the meeting:
Don Buxbaum
Ray Roethle
Scott Sackman
Jim Finneman
Barry Rakes
James Whitmer
Ric Holden
Also present and participating were, Pat Davis, Assistant Secretary, Kay Braddock; Terry Tribune, Lynn Wittmayer, Mark Haas, Allen Gierke, Tanner Schillinger, Sam Kortum, Strad Benjamin, Sandy Helmuth, Larry Heimbuch.
President Ray Roethle 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 Roethle announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business.
Barry Rakes made a motion, seconded by Don Buxbaum, to approve the minutes, with corrections, from the October 14, 2009 meeting.
FINANCIAL REPORT:
Pat Davis presented current budget figures which included payroll and expenditures for November. 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.
James Whitmer made a motion, seconded by Don Buxbaum, to approve the Treasurer’s report and the transfer of $36,142.80 for District I. Scott Sackman made a motion, seconded by Barry Rakes, that the Treasurer’s report and the transfer of $19,932.20 for District II be approved. Motions carried.
Pat informed the Board that her computer hard drive had crashed earlier in the month. Darryl Pisk, Montana Softworks, had set up the books on another computer, but some information was not easily retrievable. The computer hard drive had to be sent to a company to be retrieved, and are still waiting on the results. Pat informed the Board that it would cost quite a bit of money to do this, the estimates range from seven hundred and fifty dollars to two thousand and nine hundred dollars. Mr. Holden asked Pat if there would be a problem with the overage being billed. Pat assured him that she had already ran hard copies of all water usage, so no information would be lost for the water ran and the overage incurred for the operating year of 2009.
Pat Davis presented to the Board a copy of the proposed amounts for Christmas Bonuses for the year 2009. Ric Holden asked for Mr. Larry Heimbuch to speak to the Board concerning the Christmas bonuses. Mr. Heimbuch stated that he was on the Board at the time Buffalo Rapids had instilled the bonuses. He stated that they had only started them because the Project was doing well at that time. Mr. Hiembuch also stated that the bonuses started approximately twenty five years ago. Mr. Whitmer spoke that they should probably have discussed this issue months earlier, not right before Christmas. Mr. Whitmer had concerns about what it would do to the employees and families Christmas if they do not give bonuses this year. He suggested that they pay the employees half of the proposed amount for the bonuses this year. Mr. Ric Holden stated that it would be much harder to hand those employees a pink slip instead. He also stated that the Board can’t spend next year’s money. Barry Rakes advised the Board to read the letter that was presented to them by the union. The letter stated that during the period while negotiating the first contract, Buffalo Rapids Board of Control is required to maintain all wages, benefits, and working conditions, including those established by past practice, as they are currently established. On a motion made by Barry Rakes, and seconded by Scott Sackman, it was moved that District II pay for District II’s half of the bonuses for the year. Two in favor, one against. Motion carried. Larry Heimbuch stated that he wasn’t sure that was legal for District II to make and pass a motion like that. Mr. Holden stated that District II can’t make a motion that supersedes the Board of Control. Mr. Rakes stated that the bonuses are split into District I and District II. Mr. Whitmer asked that employees present if a portion of the bonus was acceptable. Mr. Larry Heimbuch stated to the Board that the employees have it pretty good as Mr. Ric Holden showed at the annual meeting. Mr. Allen Gierke, Machine shop foreman, stated that after the annual meeting he didn’t feel like an asset to Buffalo Rapids but a liability. Don Buxbaum asked Pat Davis if they had the money to pay the bonuses for the year. Mrs. Davis explained to Mr. Buxbaum that she had given them the report on their finances and that would have to be a decision of the Board. After much discussion between the Board and the Buffalo Rapids employees, and public present, it was decided to distribute fifty percent of the proposed bonuses for each employee. On a motion made by James Whitmer and seconded by Barry Rakes, it was
RESOLVED: That fifty percent of the Christmas bonuses be distributed to each employee of the proposed amount.
Motion carried.
5 in favor 2 against
Pat Davis presented to the Board list of water overages incurred in 2009. On a motion made by Jim Finneman and seconded by Don Buxbaum it was
RESOLVED: That the Water Overages for the 2009 water season be billed in full, $9.60 per acre foot for District I, and $9.80 per acre foot for District II.
All in Favor
Motion carried.
Pat Davis also asked for the Board’s opinion on the Buffalo Rapid’s Christmas party. On a motion made by James Whitmer and seconded by Jim Finneman it was decided that there would not be a Christmas party sponsored by the Project this year.
On a motion from Ric Holden and seconded by Don Buxbaum the treasurer’s report was approved, with a segregation of the Anderson ZurMuehlem & Co. bill. All in Favor.
Questions were brought up as to whether District II can refuse to pay for the CPA audit done by Anderson ZurMuehlen & Co.. Barry Rakes stated that the majority of their District voted that they did not feel the need for the audit and were against having it done. Mr. Holden wanted it noted in the minutes that District II was refusing to pay for, and split a bill that was voted for by the Board of Control. Barry Rakes stated that he felt the CPA audit was brought in under false pretenses. Scott Sackman and Barry Rakes expressed that it was never brought to the Board that it would be a fraud detection audit also. They also expressed that they were satisfied with the audit that was already done earlier in the year. Mr. Rakes asked why the CPA audit cost $3,983.00 when Ric stated at that meeting it would only be $2,400.00. Mr. Holden stated that the bill was prorated, plus the cost of having it in writing. Mrs. Davis expressed that the contract that was dated the same day that Ric brought it to the Board, stated $3,000.00 not $2,400.00.
Mr. Ric Holden spoke to the members of the Board that they would have to take the CPA written report home and study it, then make decisions at the December meeting with changes in policy. The members of the Board agreed. Mr. Holden asked who was going to look into the legalities of District II not paying their portion of the Anderson ZurMuehlen & Co. bill. Mr. Mark Haas stated that they have an attorney on retainer and to use him. Ric Holden will contact Dale Hubber on the issue.
Mr. Ray Roethle stated that he is to form a subcommittee for union negotiating. Mr. Roethle appointed to the union negotiating committee, Mr. Barry Rakes, Mr. James Whitmer, Mr. Ric Holden, Mr. Doug Buxbaum, and possibly Mr. Rick Harding. Mr. Jim Finneman or Mr. Barry Rakes will ask Mr. Harding if he would like to participate in the subcommittee.
Mr. Ric Holden passed out to all present a profile of Mr. Steven Lehman for an attorney for labor law. Ric Holden stated that Mr. Lehman was recommended by Associated Employers. The services for Steven Lehman will be a retainer of $5,000.00 and $255.00 per hour. Mr. Holden stated that the retainer would have to be paid before the attorney would speak with them. Mr. Holden made a motion, seconded by Jim Finneman to hire Mr. Steven Lehman for purposed of labor issues. Barry Rakes stated that they do not have the money to hire a lawyer. He also stated that he felt they should first talk with the union before they hire an attorney. Mr. Holden stated that they can’t afford to have the attorney come to every meeting, but Buffalo Rapids does need to hire a labor attorney to deal with the union. Scott Sackman stated that they should not hire the attorney until he is needed. Ric expressed that they can’t go into a meeting unprepared. Don Buxbaum stated that he was not in favor of hiring an attorney right now. Mr. Sandy Helmuth stated that the Board needs to be careful not to make the wrong remark or the Board might be liable, or that member may be liable while they are speaking with the union. Mr. Holden stated that he felt that they need to hire Mr. Lehman right away. Barry stated again that he would like to see what the union has to say first. Mr. Holden expressed that in doing that it was a stall tactic, and they need to move things forward. Mr. Rakes expressed to Mr. Holden that he did not want District II to be drug into something that they did not agree with again. Mr. Rakes stated that he would call Mr. Ekblad or Mr. Lingerfelt of the union and speak with them and see if they could sit down with them and listen to what they had to say. Mr. Holden withdrew his earlier motion. Mr. Whitmer asked Mr. Rakes to express to the union that they were not ready to negotiate, but just listen to what they had to say.
Mr. Barry Rakes, District II President, spoke with the Board about splitting the two Districts peacefully. He stated that each District would have to have their own manager, employees etc… Mr. Rakes stated that he had spoken with the Bureau of Reclamation on the subject. He stated to the Board that the Bureau of Reclamation stated to him that they have to give District I ninety days notice of the intent to split the Districts, or if both Districts agree it could be done sooner. Mr. Don Buxbaum stated that when he had worked for the Project he had noticed that things were not treated equally between the two Districts, and he felt that is why District I producers are upset. Sandy Helmuth asked if that would make union negotiations different. Barry Rakes stated that all employees are union regardless of splitting. Mr. Ray Roethle stated that all the pipelines would have to be completed before they could split the two Districts. Mr. Whitmer was concerned that they would loose focus on the problems at hand. Mr. Holden stated that there would have to be three things considered before it can be brought up: 1) the issue has to be easily understood 2) it needs to be wanted by the producers 3) it can’t cost a lot of money. Mr. Holden didn’t feel that the issue was easily understood, and he didn’t feel that the people want it. Scott Sackman and Barry Rakes stated that the majority of the producers in their Divisions want to split the two Districts. Mr. Holden felt that he did not see any reason that the Project can’t work as a whole. Jim Whitmer stated that he would like to have some more facts. Barry Rakes stated that he brought it up to discuss it and see what the rest of the Board thought. It was discussed among Board members whether they would need all employees if they split the two Districts, or contract out labor. Mr. Holden stated that it would have to go to a vote of the people before they could split. Mr. Barry Rakes stated that they would have to definitely do that at least in District II. Mr. Holden stated that it would have to come to a vote for District I also. Mr. Rakes responded that it would only have to be approved for one District or the other, it would not have to be agreed upon by both Districts. Mr. Rakes expressed that he had spoke at length with Dick Long, Bureau of Reclamation, about the splitting of the two Districts. He stated that it could be done mutually or not mutually with ninety days notice to the other District.
Mr. Don Buxbaum brought to the Board’s attention a fax that was received from Michael K. Blend Inc. concerning Rainbow Estates located in Glendive, MT. The fax requested the District I Board to grant cancellation of all delinquent taxes, penalties and interest owed to Buffalo Rapids for the Rainbow Estates lots. On a motion made by Don Buxbaum, and seconded by James Whitmer, it was
RESOLVED: To not grant cancellation of all delinquent taxes, penalties and interest owed to Buffalo Rapids for the Rainbow Estates lots.
Motion carried.
Dave Schwarz or Pat Davis will follow through with correspondence for the motion to Michael K. Blend, Inc.
Mr. Ray Roethle stated that he is to form a subcommittee as a search committee for a new manager. Mr. Roethle appointed to the search committee, Mr. Jim Finneman, Mr. Don Buxbaum, Mr. Scott Sackman, and Mr. Larry Heimbuch.
Mr. Ric Holden revisited the compensated absences worksheet that he had presented at the annual meeting. He stated that he would call Associated Employers to take a look at the worksheet to get a basis as to where they would start when they start negotiating with the union, and what state statute reads. Mr. Finneman asked the employees if they had a punch time clock in the shop. Strad Benjamin stated that they had always filled out their time sheet and had them approved with a signature.
Mr. Ric Holden brought to the Board a revised resolution to deal with delinquent taxes and overage in case of land sale, or a prerequisite to water delivery. The revised resolution read in part that the Board hereby requires that all current and delinquent taxes and assessment and other financial obligations owing to the District, including overage must be paid as a prerequisite to water service. Mr. Whitmer expressed that he felt that the new revised resolution still did not protect Buffalo Rapids in case of overage incurred on a piece of land that sold to a different owner. On a motion made by Ric Holden and seconded by James Whitmer it was
RESOLVED: Section 87-7-1902 (4) of the Montana Code Annotated provides that the Board of commissioners of an irrigation district may require the prompt payment of all current and delinquent taxes and assessments and other financial obligations owing the district as a prerequisite to water service. The Board hereby requires that all current and delinquent taxes and assessments and other financial obligations owing to the district, including water overage, must be paid as a prerequisite to water service.
This policy is adopted and shall be entered upon the records of the Board. This policy shall be printed in a convenient form for distribution in the district.
All in Favor
Motion carried.
The secretary will mail a copy of finalized resolution to all local title companies in the area.
Mr. Srad Benjamin made a statement to the Board with issues concerning the annual meeting. Mr. Benjamin stated that he took offense to Ric Holden’s presentation on the employees of Buffalo Rapids at the annual meeting. He stated that Mr. Holden’s presentation included in the wages of the employees certain benefits, such as workman’s comp and social security that the employer is required to pay by law. Mr. Benjamin also stated that he had contacted the Department of Revenue, and the figures that he was given for average annual income were not the same as Mr. Holden presented. He stated that he was very disappointed with what was presented concerning the wages of the employees. He also stated that Mr. Holden stated that the employees threatened to strike before. He informed Mr. Holden and the Board that he had never said anything about a strike and had not heard any other employee say anything about a strike. Srad stated that Mr. Schwarz had contacted the Board about possibilities of what could happen. He stated to Mr. Holden that he did not appreciate having words put in his mouth. Strad spoke that he did not consider himself a liability to Buffalo Rapids, and thought that the employees as a whole are an asset. He expressed that things are to the point that he does no know what to do. Mr. Whitmer expressed that he appreciated his candor. Mr. Benjamin stated that if he does not stand up and say something when he doesn’t agree, it is paramount to saying that it is correct and he agrees. Strad Benjamin stated that they are dealing with people and they don’t appreciate what was presented. Mr. Barry Rakes stated that he had no idea that anything was going to be presented at the annual meeting like that, and had no knowledge of it. Barry stated that he was very upset about what was presented at that meeting, he did not think it was right, and wanted it to be noted. Lynn Wittmayer had the same feeling as Barry Rakes, and did not feel it was right to put everyone’s wages out there and handed out at the meeting. She stated that a lot of the employees they have are specialized, and their wages should not be average, but more that average. Sandy Helmuth asked if the wages and benefits included the use of heavy equipment. Strad informed Mr. Helmuth that the employees have to pay for the rental of the heavy equipment they do not get to use it for free. Mr. Benjamin stated that as a member of the Board it is their responsibility to stand up and say something if they don’t agree, because if they don’t it is saying that they do. Strad Benjamin thanked the Board for their time. Mr. Ric Holden stated that he did call an analyst to get the average annual income, and there were several different categories that had to be considered when looking into that subject. He stated that concerning the worksheet he felt that the farmers needed to know the bottom line. Mrs. Kay Braddock asked Mr. Holden if it was a little tacky to have the names included with the salaries. Mr. Holden responded no not at all, it is public information. Mark Haas asked if Buffalo Rapids is audited once a year and yearly. Many members of the Board said yes they are. Mr. Haas asked why a special auditor was brought in from Bozeman. Mr. Helmuth suggested that they use the state auditors. Mr. Rakes stated that they just had an audit done and there were no findings. Mr. Rakes also stated that it was probably a slap in the face for Mrs. Pat Davis to have a second auditor come in. Mr. Rakes spoke that the second auditor was quoted as being $2,400.00 and ended up being almost $4,000.00, and how does District II protect itself when it is being out voted every time.
Next regular scheduled meeting will be held on December 10, 2009 at 3:00pm.
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:
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Pat Davis, Assistant Secretary Ray Roethle, President
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