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November 18, 2009 Meeting Minutes

MINUTES
of the
MEETING OF THE COMMISSIONERS
of the
BUFFALO RAPIDS DISTRICT I
Glendive, Montana
November 18, 2009

The Special Meeting of the members of the Buffalo Rapids Project District I, at Glendive, Dawson County, Montana, was held on the Eighteenth day of November, 2009, at 7:00 p.m.

There were present and participating at the meeting:

Don Buxbaum
Ray Roethle
James Whitmer
Ric Holden

Also present and participating were, Pat Davis, assistant secretary, members of the public, members of the local press, and area producers from Districts I.

President Don Buxbaum 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 Buxbaum announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business.

President Buxbuam stated to all present that the meeting was being held because District II had expressed at the last Board meeting that they are looking into splitting away from District I. Don explained that all District II has to do is give District I ninety days notice and it would be done. Don Buxbaum asked Mr. Barry Rakes, president of District II, who was present, if he would speak to all present about the proposed split. Barry Rakes explained that he had brought it up at the last meeting just to discuss the issue. He explained that the two Districts could do it amicably or not. He stated that there is a difference of opinion between the two districts, and District II wanted to know what District I thought about splitting. Mr. Don Buxbaum asked Mr. Barry Rakes if that is what his District would like to do. Mr. Rakes stated that he believed it is what District II would like to do.

Mr. Dick Crisafulli asked if they would split the equipment, have two different managers, or two different crews, and stated it would cost twice as much to run. Don Buxbaum explained that it would be separate ventures after the split; each District would be on their own. Don stated that they haven’t got into the specifics of the split. Kent Shepherd asked how the lines of the two Districts are. Larry Heimbuch explained how the Board of Control works with each Division, and how they are already separated with the Bureau of Reclamation.

Sandy Helmuth read from state statute that explained why the two districts were split originally. It stated in part that irrigation districts were joined, but split into divisions for the purposes of simplicity, efficiency, and the economy. He also read statute that addressed the splitting of two irrigation districts. It stated in part that any district that has entered into a written contract with the other district may withdraw such contract by submitting to the Board of Control in writing a ninety day notice of withdrawal. Ric Holden stated that the Stockman Bank loan acquired by District I was also required to be signed by District II. Mr. Barry Rakes stated that a resolution was signed by District II, but the note from the bank was only signed by District I.

Kent Shepherd asked what the reason was for wanting to split. Mr. Holden stated that District I did not have a reason to want to split, and it was something that District I didn’t want to do. Mr. Holden stated that apparently District II and their producers wanted to split, so the Board thought that they should get everyone together and let them know what the situation was. Mr. Holden asked Mr. Larry Hiembuch so speak on research he had done with the Bureau of Reclamation. Mr. Hiembuch stated that the power contracts are already split so each District pays for their own. He explained that if District II wants to split there is nothing that District I can do about it. Larry Heimbuch asked Mr. Rakes if it had to be brought to the land owner. Mr. Rakes stated that it would be brought to the land owners in District II. Mr. Hiembuch stated that District I has no control, District II gives District I ninety days notice and the Board of Control is dissolved.

Lynn Wittmayer stated that if the District I would try and get along with District II maybe they could pull it together. Mr. Heimbuch stated that it works both ways. Mr. Shepherd asked why the votes seem to be going down the District lines. Mr. Hiembuch explained how the Board is set up and what Division is currently holding the majority of the Board. Mr. Holden stated that the votes are usually split with a five to two vote in favor of the motion.

Sandy Helmuth stated that he is not in favor of the two Districts splitting. He does not believe that either District could stand financially on their own. He read from state statute that provided that the Board of Control could hire a manager for each District. Mr. Don Buxbaum expressed that if any producer had anything to say now would be the time. The question was asked if they had sought anyone to manage Buffalo Rapids yet. Don Buxbaum stated that they could not do that yet until the issue of the split was resolved first. It was stated that they need to get something done before irrigation season starts. Don explained that they realize that. Mr. Holden explained that there have been steps taken to find a new manager. He explained that a search committee has been appointed, they have already met with the manage consultants out of Billings, working on a contract, and reviewing the old contract that the have in place.

Kent Shepherd asked why they would want to hire an attorney to deal with the union when there are only about a dozen employees, and a Board. He asked the question why they weren’t meeting together and with the employees and trying to reach a conclusion before it ever goes to the lawyer. He stated that when it goes to the lawyer level, it creates mistrust with the employees and many other problems. He stated that where he works it has only come down to getting a lawyer only once that he could remember, and that was dealing with lots of employees and lots of differing opinions. He expressed that when it hits the level of having a lawyer present it creates problems that reach far into the future. Don Buxbaum stated that since the employees entered the union, the Board can’t even talk to them. Mr. Shepherd stated that the employees would have a union representative present to talk for them with the Board. Mr. James Whitmer stated that the attorney would not be there to negotiate the contract, but to help them. Mr. Shepherd stated that use common sense, they don’t need an attorney that would cost them lots of money. Larry Hiembuch stated that they need a lawyer to help them because the Board needs help with the labor laws. Mr. Hiembuch stated that the union has lawyers on their side. Mr. Shepherd expressed that the union does not want to spend their money either on attorneys unless they have to. James Whitmer expressed that the union is much better versed than the Board is. Mr. Shepherd stated that they should have an attorney view the contract after it is done, and if they get an attorney right away it could make the employees want to fight. Mr. Whitmer stated that the Board has agreed to sit down with the union without a lawyer to listen to what they suggest.

Randy Hanson stated that the splitting is probably not the best thing for the two districts. He stated that there is a lot of animosity over people being employed in Terry, and going to Glendive. He expressed that they should have some employees in Glendive, and some in Terry and make the service better. He stated that the Board should set down and try to reach some middle ground before they split up.

Victor Deines stated that the real issues are the water delivery systems are not being maintained. He stated that they are not getting maintenance done and water delivered on time. He stated that there are a lot of times he can’t even get the water that he is allotted.

Brian Wittmayer expressed that he agreed with what Mr. Kent Shepherd said. He does believe that it is going to cost Buffalo Rapids more money to split. He felt that sitting down with the employees would be very beneficial. He expressed that he felt that one of the main reasons that District II wants to split off is to help salvage the relationship with the employees. He suggested sitting down with the employees and trying and building some bridges.

Richard Reynolds stated that he did not want the two districts split because it would be too costly to both districts, and would create more animosity than they already have. He expressed that since he lives on sand creek he sees a lot of water spilling and being wasted. He stated that there are probably a lot of things that need to be corrected, but if they stay together, over the course of time they can be.

Randy Hansen expressed that the service in Glendive is not what it should be. The water is not turned on in time, and that is part of the management problem in Terry. He expressed that the guys in Terry wouldn’t wait until the first of June for water.

Joe Sharbono stated that District II needs to decide what they want to do, then the issues need to be addressed about the details of the split. Mr. Victor Deines stated that in the last two or three years the only employees he has ever seen are two ditch riders, and neither of the two new ones had any experience on water. He expressed that he has not seen excavator operators, manager, or supervisor. He stated that he has quit calling in because then they just get mad. He felt that they could train employees, all the ditch riders now do is read meter, and the producer runs the lateral on their own.

Mr. Barry Rakes spoke that at the last Board meeting he brought up the splitting of the districts and that they could do it friendly and faster than in three months. He expressed that the division in the Board is a sad thing. District II has a whole different view as to where they want to go, and a lot of different issues that they want to work on. Mr. Larry Haas stated that District I does not want to pay for it. He wanted to know why District I is in debt and District II is not. Mr. Rakes responded that it is because they haven’t raised rates. Mr. Larry Heimbuch stated that it is not true that District I has not raised rates. Sandy Helmuth stated that they should put all pipelines aside. Larry Heimbuch explained what had happened on the Board when he had served, and the addition of the acreage with the reclassification. Mr. Barry Rakes stated that when he was appointed to the Board no one wanted to serve on the Board. He had done some research and tried to explain why District I was in debt and why District II was also running low on operating revenue. Kent Shepherd explained that he felt that some of the people within the Project think that getting grant money is automatic since Dave Schwarz gets so many grants. He explained that people who write grants get paid very well for writing those grants and it is not easy to get the grant money.

Mr. Jerry Buxbaum stated that he felt the two districts should split. He felt that with Barry’s attitude, the employees hate their guts, and why would they want employees driving thirty miles to go to work in Glendive. Lynn Wittmayer stated that the pumps are located in Fallon, and who are they going to get to run them pumps that know what they are doing. Mr. Jerry Buxbaum stated that he could learn how to start the pumps pretty fast. Jerry stated that there are a lot of questions that can’t be answered. He felt that the manager should have cut back on expenses or wages or something else to make it work. He stated to Mr. Barry Rakes that District II has no problems because they have all the equipment down there working. He stated that they had a little bit of work done in Glendive and the rest is so bad that they can’t get water. Mr. Jerry Buxbaum addressed Strad Benjamin, machine shop technician, what he does. Mr. Benjamin stated that he worked on the pumps. Jerry Buxbaum questioned Mr. Strad Benjamin as to why the pumps weren’t in last year. Mr. Benjamin explained that they can only be in so many places at one time and they have more than just the pumps at Glendive two. Mr. Rakes stated that this is exactly why they want to split away. He stated that it is starting to pit neighbor against neighbor. If they split away they can do what they want in their district. He expressed that this is causing hate within the district than is going to last for years. He stated to all present that in two years down the road District II will have control of the Board and do they want to be in that situation. He stated that if they split the two districts they can have their own machinery and do what they want, and they won’t be intertwined.

Ms. Amy Deines asked if they could go through past audits to look for answers. Mr. Brian Morast asked if there was any way they could come together so they didn’t have to split. Mr. Rakes expressed that they should come to Board meeting some times or come in and listen to tapes and see how contentious they really are. He also stated that he did not know if it could be fixed. Mr. Don Walker asked how they were ever going to be able to hire a manager with so much animosity between both districts. Sandy Helmuth stated that they should hire two managers. It was questioned how they could afford to do that.

Rod Asche asked about the canal lining grant and if they planned on still lining the canal by his place. Mr. Holden stated that they do not know anything about the canal lining grant and don’t know how the money was appropriated. Mr. Jim Trangmoe stated that all the discussions about the grants are either in the minutes or on the tapes.

Mr. Rakes stated that there was a pretty good consensus of the producers in District II that want to split. Mr. Don Buxbaum stated that his producers are frustrated because District I does not get the same treatment as District II. Mr. Buxbaum expressed that when he had worked for Buffalo Rapids he found out that District I was not treated the same.

Mr. Kyle Martinson asked if they were so short handed that they can’t get pipelining done or maintenance done. Don Buxbaum stated that Buffalo Rapids is there to deliver water not be a contractor. Earl Corneliusen questioned whether they could subcontract the work out. Sandy Helmuth stated that Buffalo Rapids is not set up to or supposed to do EQIP. Mr. Brian Morast stated that Buffalo Rapids should still want control of those pipelines and how they are put in.

James Whitmer expressed that he doesn’t know what to tell his producers that are frustrated with the maintenance because they are busy doing pipelines. Lynn Wittmayer expressed that the Board should be working with those employees, to make things better, so those employees that are working on those pipelines can get them done. Bear Whitmer expressed that he had served on the Board for one year and had never had an experience like it in his life. He stated that the manager had never followed the Board’s direction. He felt the current Board should be commended for the job they have done.

Mr. Don Buxbaum stated that the Board needed help not criticism. Mr. Brian Wittmayer volunteered to help with a plan of work. Don stated that they would take any help they could get and thanked Mr. Wittmayer. It was asked how long it took for the water to get from the pumps to Glendive. Don stated that it took five days, but he knew for a fact he could get the water down in two days. It was stated that the farmers need to verbalize in writing the problems that they would like to be addressed.

Joe Sharbono asked what the differences are in priorities between the districts. James Whitmer stated that one example is the fact that they have employees who are using vehicles who go between work and their place of residence. He had asked the question whether these people need to be logging that as a benefit for tax purposes. Mr. Whitmer stated that he was told it had been going on for thirty years. He expressed that in his opinion a Board member should have the right to ask a question like that and be taken seriously. He felt that is one example of a difference in priority. Mr. Barry Rakes expressed that those employees are usually on call. Mr. Whitmer stated that it was very frustrating to deal with things like that and have no answers. Mr. Whitmer also expressed that that instance exists in more than one scenario than that. Sandy Helmuth read state statute that explained the liabilities held to each Board member.

Next regular scheduled meeting will be held on December 09, 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 District I adjourned.

ATTESTED:

________________________________ ____________________________________
Pat Davis, Assistant Secretary Don Buxbaum, President

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