MINUTES
of the
MEETING OF THE COMMISSIONERS
of the
BUFFALO RAPIDS BOARD OF CONTROL
Terry, Montana
March 10, 2010
The Eleventh Regular Meeting of the members of the Buffalo Rapids Project Board of Control, at Terry, Prairie County, Montana, was held on the Tenth day of March, 2010, at 3:00 p.m.
There were present and participating at the meeting:
Ray Roethle
Scott Sackman
Lance Kalfell
Barry Rakes
James Whitmer
Ric Holden
Also present and participating were Pat Davis; Assistant Secretary, Dale Hellman; Hellman Insurance, Dale Hubber; Attorney, Bryan Robson, Larry Hass, Don Rau, Larry Heimbuch, Bill Lingerfelt; Union Representative and Kay Braddock; Terry Tribune.
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.
Ric Holden made a motion, seconded by Lance Kalfell, to approve the minutes, from the February 10, 2010 meeting BOC. Ric Holden made a motion, seconded by James Whitmer to approve the minutes from the January 28, 2010 meeting BOC.
All in Favor
Motion Carried
Ray Roethle made a motion to approve the minutes (with corrections) from the February 18, 2010 District I meeting, seconded by James Whitmer.
All in favor
Motion Carried
FINANCIAL REPORT:
Pat Davis presented current budget figures which included payroll and expenditures for March. 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. Expenditures were approved for District I. James Whitmer motioned, seconded by Ray Roethle. All in Favor. Expenditures were approved for District II. Barry Rakes motioned, seconded by Lance Kalfell. All in Favor. Ric Holden made a motion, seconded by James Whitmer to approve the Treasurer’s report.
Larry Heimbuch presented to the Board two handouts regarding the machine shop.
The first handout was a list of inventory from the machine shop and the building value. District I .585 x $132748.00=$77,657.58
District II .415 x $132748.00=$55090.42
Total $132,748.00
Dale Hubber will draw up paperwork for transfer of property.
James Whitmer made a motion for District I to offer their share of the machine shop to District II for the amount of $77,657.58, seconded by Ray Roethle.
All in Favor
Motion Carried
BE IT RESOLVED,
To allow District I to offer their share of the machine shop to District II for the amount of $77,657.58.
Lance Kalfell made a motion to purchase the machine shop for the amount of $77,657.58, seconded by Scott Sackman.
All in Favor
Motion Carried
BE IT RESOLVED,
To purchase from District I the machine shop for the amount of $77,657.58.
Don Buxbaum made a motion to appoint Larry Heimbuch to negotiate the split of the machine shop, seconded by Ray Roethle.
All in Favor
Motion Carried
BE IT RESOLVED,
To appoint Larry Heimbuch to negotiate with District II for splitting of the machine shop.
Lance Kalfell made a motion to appoint Rick Harding to negotiate the split of the machine shop, seconded by Scott Sackman.
All in Favor
Motion Carried
BE IT RESOLVED,
To appoint Rick Harding to negotiate with District I for splitting of the machine shop.
Larry Heimbuch presented to the Board a handout for the machinery split for District I and District II.
Dale Hubber will be drawing up a contract.
Lance Kalfell made a motion to accept the machinery split as drawn up on the list, seconded by Scott Sackman.
District II machinery:
JD 490 Excavator
Cat D 7 & Dozer
Towner Sloper
JD 510 Backhoe
78 White Semi Truck
90 Chevy Dump Truck (red)
Ferree Trailer
Kichner Ditcher Narrow Nose (bought by District II)
Barber Greene Trencher (bought by District II)
Semi flatbed Trailer
Hyster Forklift
All in Favor
Motion Carried
BE IT RESOLVED,
To accept machinery list split proposal.
Don Buxbaum made a motion to accept machinery split proposal, seconded by Ray Roethle.
District I machinery:
D6 Cat & Dozer
JD 690 Excavator
JD 120 Excavator
P & H Mobile Crane
Barber Greene Trencher (bought by District I)
772 JD Grader
Hyster Forklift
Volvo Tractor
Seim flatbed Trailer hd
79 Chevy C70 Bruin Dump Truck
Kichner Ditchner wide nose (bought by District I)
Allis Chambers Forklift
All in Favor
Motion Carried
BE IT RESOLVED,
To accept machinery list split proposal.
*The items that are listed on the machinery list will be disbursed after the split of District I and District II.
Dale Hellman presented to the Board paperwork for insurance coverage and extensively explained coverage. Dale explained to the Board how the current policy was renewed for the year.
Dale explained the package policy with MACO.
Will issue one policy insuring District I and District II.
Will issue two separate policies with State Fund, effective 7/1/2010 renewal.
Dale presented a handout for certificate of insurance from MACO/JPIA. In this handout it states that Buffalo Rapids Irrigation District is an eligible insured of the Association of Counties Joint Powers Insurance Authority Pool (MACo/JPIA) and as such is provided with the following insurance coverage:
General Liability Insurance
Auto Liability insurance
Crime/Bond coverage
Property Insurance
Weedspraying Liability
Excess Liability Insurance
Boiler & Machinery
These coverage’s are provided for the period 7/1/09-7/1/10. Dale explained Workman’s Comp policy, this policy is based on payroll and District I & District II. At this time it is not known how many employees will be with each District. Dale stated that Blanket Bonds are a financial guarantee. Dale stated that Commissioners Bond covers individuals except the member at large. Dale explained Notary Bonds and the fees and suggested keeping the service.
Ric Holden brought to the Board the report regarding for District I loan. Ric stated that Don Buxbaum and himself met with Ron Pisk from Stockman Bank. He stated that the bank would rather do is to loan money on the completion of lateral 2.9 and lateral 34.5. The bank would rather loan money on a particular project rather than management and operations. Ric stated that he presented to Ron the Mike Carlson report. Ric stated that the bank would offer an operating loan for $50,000 or $75,000 per six months and pay off the operating loan in July and the set up another operating loan and pay off in six months. Ric stated that he contacted the Bureau, DNRC and NRCS and did not find any loan programs. Ric stated that the bank will not have a loan (unsecured) for more than five years on a lateral project. Ric stated that Ron Pisk would present the loan request to the loan committee, which is to take the money that is requested and add the current operating loan and restructure the loan (combining current and new) and the interest rate would be 4.6% or less and the payments would come in semi or annually coming from the courthouse and going into the bank directly. Don Buxbaum stated that Ron Pisk needed to have a clarification of what exactly District I would need to borrow.
Larry Heimbuch stated that as of now the temporary bookkeeper is working with Pat and stated that she is driving the Buffalo car and is working for free. Ric Holden will be contacting Dale Hellman about the liability for other drivers that are not on the policy.
COMMITTEE REPORTS:
Union Negotiation Subcommittee:
James Whitmer reported that they met with the employees and the Union to draft the Memorandum of Understanding. James presented to the Board a copy of the MOU. In the Memorandum of Understanding it states that the two Districts are in the process of splitting as of now all current conditions and past practices of employment will remain unchanged until each District and the Unionhas negotiated a Collective bargaining Agreement that will cover each District independently. In the event that the split does not take place all conditions will apply between the International Operating Engineers local 400 and buffalo Rapids Board of Control. Lance Kallfel motioned for the Board of Control to accept the proposed memorandum of Understanding, seconded by Scott Sackman.
All in Favor
Motion carried
BE IT RESOLVED,
To accept the proposed Memorandum of Understanding between Buffalo Rapids Board Of Control and the Union.
Don Buxbaum representing District I motioned to accept the proposed memorandum of Understanding, seconded by James Whitmer.
All in Favor
Motion Carried
BE IT RESOLVED,
To accept the proposed Memorandum of Understanding between Buffalo Rapids District I and the Union.
Lance Kalfell representing District II motioned to accept the proposed memorandum of Understanding, seconded by Barry Rakes.
All in Favor
Motion Carried
BE IT RESOLVED,
To accept the proposed Memorandum of Understanding between Buffalo Rapids District II and the Union.
The Board discussed the names for the Districts. For District I Ray Roethle motioned to have the name as Buffalo Rapids Irrigation District No. 1, seconded by Don Buxbaum.
All in Favor
Motion Carried
BE IT RESOLVED,
To accept the name Buffalo Rapids Irrigation District No. 1 effective April 16, 2010.
For District II Scott Sackman motioned to have the name as Buffalo Rapids Irrigation District No. 2, seconded by Lance Kalfell.
BE IT RESOLVED,
To accept the name Buffalo Rapids Irrigation District No. 2 effective April 16, 2010.
NEW BUSINESS:
Ric Holden presented to the Board a EQIP salary history (2000-2009). Larry Heimbuch questioned whether the labor and wages were allocated correctly through management. Pat Davis explained how EQIP salary was paid. Ric Holden stated that District I has paid more in salaries than District II. The Board discussed whether the miles of pipe put in each District does truly reflect the salary allocated.
Ric Holden and Larry Heimbuch presented to the board a handout for Revenue from 1999 through 2009 for machine shop, equipment rental and outside work. The Board discussed in depth the discrepancies with the split of income for those particular revenues.
Ric Holden discussed with the Board regarding Comp time liability. Ric stated that he felt that District I should not be liable for 58.5% of the liabilities when they did not receive all the Revenues. The members felt that it is going to be a difficult time for each District.
Next regular scheduled meeting will be held on April14, 2010.
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
March 10, 2010
The Eleventh Regular Meeting of the members of the Buffalo Rapids Project Board of Control, at Terry, Prairie County, Montana, was held on the Tenth day of March, 2010, at 3:00 p.m.
There were present and participating at the meeting:
Ray Roethle
Scott Sackman
Lance Kalfell
Barry Rakes
James Whitmer
Ric Holden
Also present and participating were Pat Davis; Assistant Secretary, Dale Hellman; Hellman Insurance, Dale Hubber; Attorney, Bryan Robson, Larry Hass, Don Rau, Larry Heimbuch, Bill Lingerfelt; Union Representative and Kay Braddock; Terry Tribune.
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.
Ric Holden made a motion, seconded by Lance Kalfell, to approve the minutes, from the February 10, 2010 meeting BOC. Ric Holden made a motion, seconded by James Whitmer to approve the minutes from the January 28, 2010 meeting BOC.
All in Favor
Motion Carried
Ray Roethle made a motion to approve the minutes (with corrections) from the February 18, 2010 District I meeting, seconded by James Whitmer.
All in favor
Motion Carried
FINANCIAL REPORT:
Pat Davis presented current budget figures which included payroll and expenditures for March. 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. Expenditures were approved for District I. James Whitmer motioned, seconded by Ray Roethle. All in Favor. Expenditures were approved for District II. Barry Rakes motioned, seconded by Lance Kalfell. All in Favor. Ric Holden made a motion, seconded by James Whitmer to approve the Treasurer’s report.
Larry Heimbuch presented to the Board two handouts regarding the machine shop.
The first handout was a list of inventory from the machine shop and the building value. District I .585 x $132748.00=$77,657.58
District II .415 x $132748.00=$55090.42
Total $132,748.00
Dale Hubber will draw up paperwork for transfer of property.
James Whitmer made a motion for District I to offer their share of the machine shop to District II for the amount of $77,657.58, seconded by Ray Roethle.
All in Favor
Motion Carried
BE IT RESOLVED,
To allow District I to offer their share of the machine shop to District II for the amount of $77,657.58.
Lance Kalfell made a motion to purchase the machine shop for the amount of $77,657.58, seconded by Scott Sackman.
All in Favor
Motion Carried
BE IT RESOLVED,
To purchase from District I the machine shop for the amount of $77,657.58.
Don Buxbaum made a motion to appoint Larry Heimbuch to negotiate the split of the machine shop, seconded by Ray Roethle.
All in Favor
Motion Carried
BE IT RESOLVED,
To appoint Larry Heimbuch to negotiate with District II for splitting of the machine shop.
Lance Kalfell made a motion to appoint Rick Harding to negotiate the split of the machine shop, seconded by Scott Sackman.
All in Favor
Motion Carried
BE IT RESOLVED,
To appoint Rick Harding to negotiate with District I for splitting of the machine shop.
Larry Heimbuch presented to the Board a handout for the machinery split for District I and District II.
Dale Hubber will be drawing up a contract.
Lance Kalfell made a motion to accept the machinery split as drawn up on the list, seconded by Scott Sackman.
District II machinery:
JD 490 Excavator
Cat D 7 & Dozer
Towner Sloper
JD 510 Backhoe
78 White Semi Truck
90 Chevy Dump Truck (red)
Ferree Trailer
Kichner Ditcher Narrow Nose (bought by District II)
Barber Greene Trencher (bought by District II)
Semi flatbed Trailer
Hyster Forklift
All in Favor
Motion Carried
BE IT RESOLVED,
To accept machinery list split proposal.
Don Buxbaum made a motion to accept machinery split proposal, seconded by Ray Roethle.
District I machinery:
D6 Cat & Dozer
JD 690 Excavator
JD 120 Excavator
P & H Mobile Crane
Barber Greene Trencher (bought by District I)
772 JD Grader
Hyster Forklift
Volvo Tractor
Seim flatbed Trailer hd
79 Chevy C70 Bruin Dump Truck
Kichner Ditchner wide nose (bought by District I)
Allis Chambers Forklift
All in Favor
Motion Carried
BE IT RESOLVED,
To accept machinery list split proposal.
*The items that are listed on the machinery list will be disbursed after the split of District I and District II.
Dale Hellman presented to the Board paperwork for insurance coverage and extensively explained coverage. Dale explained to the Board how the current policy was renewed for the year.
Dale explained the package policy with MACO.
Will issue one policy insuring District I and District II.
Will issue two separate policies with State Fund, effective 7/1/2010 renewal.
Dale presented a handout for certificate of insurance from MACO/JPIA. In this handout it states that Buffalo Rapids Irrigation District is an eligible insured of the Association of Counties Joint Powers Insurance Authority Pool (MACo/JPIA) and as such is provided with the following insurance coverage:
General Liability Insurance
Auto Liability insurance
Crime/Bond coverage
Property Insurance
Weedspraying Liability
Excess Liability Insurance
Boiler & Machinery
These coverage’s are provided for the period 7/1/09-7/1/10. Dale explained Workman’s Comp policy, this policy is based on payroll and District I & District II. At this time it is not known how many employees will be with each District. Dale stated that Blanket Bonds are a financial guarantee. Dale stated that Commissioners Bond covers individuals except the member at large. Dale explained Notary Bonds and the fees and suggested keeping the service.
Ric Holden brought to the Board the report regarding for District I loan. Ric stated that Don Buxbaum and himself met with Ron Pisk from Stockman Bank. He stated that the bank would rather do is to loan money on the completion of lateral 2.9 and lateral 34.5. The bank would rather loan money on a particular project rather than management and operations. Ric stated that he presented to Ron the Mike Carlson report. Ric stated that the bank would offer an operating loan for $50,000 or $75,000 per six months and pay off the operating loan in July and the set up another operating loan and pay off in six months. Ric stated that he contacted the Bureau, DNRC and NRCS and did not find any loan programs. Ric stated that the bank will not have a loan (unsecured) for more than five years on a lateral project. Ric stated that Ron Pisk would present the loan request to the loan committee, which is to take the money that is requested and add the current operating loan and restructure the loan (combining current and new) and the interest rate would be 4.6% or less and the payments would come in semi or annually coming from the courthouse and going into the bank directly. Don Buxbaum stated that Ron Pisk needed to have a clarification of what exactly District I would need to borrow.
Larry Heimbuch stated that as of now the temporary bookkeeper is working with Pat and stated that she is driving the Buffalo car and is working for free. Ric Holden will be contacting Dale Hellman about the liability for other drivers that are not on the policy.
COMMITTEE REPORTS:
Union Negotiation Subcommittee:
James Whitmer reported that they met with the employees and the Union to draft the Memorandum of Understanding. James presented to the Board a copy of the MOU. In the Memorandum of Understanding it states that the two Districts are in the process of splitting as of now all current conditions and past practices of employment will remain unchanged until each District and the Unionhas negotiated a Collective bargaining Agreement that will cover each District independently. In the event that the split does not take place all conditions will apply between the International Operating Engineers local 400 and buffalo Rapids Board of Control. Lance Kallfel motioned for the Board of Control to accept the proposed memorandum of Understanding, seconded by Scott Sackman.
All in Favor
Motion carried
BE IT RESOLVED,
To accept the proposed Memorandum of Understanding between Buffalo Rapids Board Of Control and the Union.
Don Buxbaum representing District I motioned to accept the proposed memorandum of Understanding, seconded by James Whitmer.
All in Favor
Motion Carried
BE IT RESOLVED,
To accept the proposed Memorandum of Understanding between Buffalo Rapids District I and the Union.
Lance Kalfell representing District II motioned to accept the proposed memorandum of Understanding, seconded by Barry Rakes.
All in Favor
Motion Carried
BE IT RESOLVED,
To accept the proposed Memorandum of Understanding between Buffalo Rapids District II and the Union.
The Board discussed the names for the Districts. For District I Ray Roethle motioned to have the name as Buffalo Rapids Irrigation District No. 1, seconded by Don Buxbaum.
All in Favor
Motion Carried
BE IT RESOLVED,
To accept the name Buffalo Rapids Irrigation District No. 1 effective April 16, 2010.
For District II Scott Sackman motioned to have the name as Buffalo Rapids Irrigation District No. 2, seconded by Lance Kalfell.
BE IT RESOLVED,
To accept the name Buffalo Rapids Irrigation District No. 2 effective April 16, 2010.
NEW BUSINESS:
Ric Holden presented to the Board a EQIP salary history (2000-2009). Larry Heimbuch questioned whether the labor and wages were allocated correctly through management. Pat Davis explained how EQIP salary was paid. Ric Holden stated that District I has paid more in salaries than District II. The Board discussed whether the miles of pipe put in each District does truly reflect the salary allocated.
Ric Holden and Larry Heimbuch presented to the board a handout for Revenue from 1999 through 2009 for machine shop, equipment rental and outside work. The Board discussed in depth the discrepancies with the split of income for those particular revenues.
Ric Holden discussed with the Board regarding Comp time liability. Ric stated that he felt that District I should not be liable for 58.5% of the liabilities when they did not receive all the Revenues. The members felt that it is going to be a difficult time for each District.
Next regular scheduled meeting will be held on April14, 2010.
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
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