August 12, 2016 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana August 12, 2016 The Fourth Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the twelfth day of August, 2016 at 7:00 p.m. There were present and participating at the meeting: Barry Rakes Scott Sackman Lance Kalfell Also present and participating were: Tim Kortum, Manager, and Pat Davis, Treasurer. President Barry Rakes called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member. Thereupon, President Barry Rakes announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business. The Minutes from the July 13, 2016 Board Meetings were approved without corrections and, or additions, by Scott Sackman seconded by Lance Kalfell. All in Favor. Motion Carried FINANCIAL REPORT: Pat Davis presented current budget figures which included payroll and expenditures for August to all Board members for their review. A list of invoices to be paid was submitted and forms for the Prairie County Treasurer to transfer funds in the amount of $47,659.44, to cover payroll and invoices were signed. August 15th estimated payroll: $10,425.20; August estimated invoices $28,038.96; August 31st estimated payroll: $9,195.28. Transfers were also signed in the amount of $2,517.54 for Mangen's Electric Inc., and $6,702.00 for purchase and installation of a shop door, paid out of System Rehab Reserve account. Investment transfer was also signed to invest the remaining monthly District No. 2 cash balances in the amount of $321,445.00 with Prairie County Pool. Warrant numbers from July 13, 2016 to August 12, 2016 range from 23526 to 23569. On a motion made by Scott Sackman and seconded by Lance Kalfell the treasurer’s report was approved. All in Favor. Motion Carried. Pat spoke with the Board about the need to draw from the reserve accounts to finish out the rest of the year in the upcoming months. The Board agreed to transfer funds from System Rehab Reserve account for the work done by K & S Electric for electrical work on the District motors. MANAGER’S REPORT: Tim reported to the Board that they had met with the water rights attorney Mr. Gary Ryder. Mr. Ryder stated that any addition of acres would legally be a Board decision as long as the acres in question were within the boundaries of the District. He also stated that any lands that lay outside of the District's boundaries would require a contract for water use. He agreed to write a contract for Buffalo Rapids Irrigation District No. 2 to address a small amount of acreage that is assessed just outside the boundaries of the District. It did not feel it was fiscally feasible to alter the boundaries of the District to accommodate the small amount of acreage in question. The Operating year for 2017 assessments was reviewed again by the members of the Buffalo Rapids Irrigation District No. 2 Board. The members of the Board discussed at length the budgets for the current year and the upcoming year along with the projected shortfalls of the District that could incur for the next operating season. Funds will be expended from the Reserve accounts and will need to be replenished over the next several years. The members of the Board talked of improvements that needed to be done over the past year and in the near future to maintain a smooth operating system for District No. 2. The commissioners of Buffalo Rapids Irrigation District No. 2 decided that the amounts assessed per acre needed to be increased. The amount per acre will be changed to $48.00 per acre. O&M=$41.00 EQUIP RESERVE=$4.00 SYSTEM REHAB=$3.00 TOTAL=$48.00 Scott Sackman made a motion to accept the 2017 operating year assessments, seconded by Lance Kalfell. All in Favor Motion Carried BE IT RESOLVED, To have an increase to $48.00 per acre for the Operating year 2017 assessments for Buffalo Rapids Irrigation District No. 2. The 2017 water overage was discussed; it was decided the rate would increase for the overage fee to $16.40 per acre foot. Lance Kalfell made a motioned to accept the 2017 water overage fee, seconded by Scott Sackman. All in Favor Motion Carried BE IT RESOLVED, To have an increase to $16.40 per acre foot for the Operating year 2017 water overage for Buffalo Rapids Irrigation District No. 2. Mr. Kim Keltner met with the Board earlier in the year to discuss adding acres above the ditch so he could install two pivots on his land. Tim Kortum informed the Board that he had contacted the Bureau of Reclamation and spoke with the water rights attorney (Gary Ryder) about the issue. It was determined that if the District wanted to add acres to the District it would be a decision that the Board of Buffalo Rapids Irrigation District No. 2 would make internally. The requirements from the Bureau of Reclamation is that the land added has to fall within the boundaries of the District. The members of the Board discussed at length the stipulations that they would need to set to move forward with the addition of acres to the District. Mr. Keltner will also be required to by the original U.S. Construction costs that was assessed to all irritable lands over a sixty-year period for the amount of one dollar per acre per year. It was agreed that since Mr. Keltner's land had a history of receiving water within the life span of the District that they would add the proposed 90.8 acres to the assessment list of landowners for delivery of water for the 2017 operating year. On a motion made by Lance Kalfell and seconded by Scott Sackman is was RESOLVED, To add 90.8 acres to Parcel RE20201, located in Prairie County, owned by Mr. James Kim Keltner, to Buffalo Rapids Irrigation District No. 2 Assessments. All in favor. Motion carried. Tim Kortum will contact Mr. Keltner and inform him of the decision since he was not present at the regular scheduled meeting. If no response is received by Mr. Keltner by August 19, 2016 with a decision to not proceed with the addiction of acres to the parcel of land for irrigation, the changes will be submitted to the Department of Revenue to be included on the 2016-2017 assessments for the upcoming irrigation season. Tim reported that all the pumps are running good so far this season. The crew in addition to riding ditch have been working on broken meters, cleaning the shops, repairing pipelines when needed, and spraying for weeds when time allows. The channel leading to the Terry Pumping Plant was excavated again to ensure sufficient flow to the pumps. Pat Davis is continuing to work on the permitting required to construct a coffer dam to repair the Fallon River Plant trash racks. Tim has also been in contact with many different entities to purchase a new pump for the Fallon River Pumping Plant. Lance Kalfell informed the Board that Mr. Brian Certain contacted him concerning the drain of the District's that is located near his property which has flooding issues. He stated to Lance that he would like it cleaned out to help alleviate the flooding and seepage problem onto his land. Tim stated that he will talk with operator Bill Tusler about the issue and try to remedy the issue. The meeting was adjourned on a motion by Scott Sackman, seconded by Lance Kalfell. All in Favor. Motion Carried. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President