July 12, 2017 District No. 2 Meeting Minutes

MINUTES Of the MEETING OF THE COMMISSIONERS Of the BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2 Terry, Montana July 12, 2017 The Third 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 July, 2017 at 7:00 p.m. There were present and participating at the meeting: Barry Rakes 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 June 14, 2017 Board Meeting were approved without corrections and, or additions, by Lance Kalfell seconded by Barry Rakes. All in Favor. Motion Carried FINANCIAL REPORT: Pat Davis presented current budget figures which included payroll and expenditures for July 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 $190,590.63, to cover payroll and invoices were signed. July 15th estimated payroll: $9,203.21; July estimated invoices $171,438.07; July 31st estimated payroll: $9,949.35. Investment transfer was also signed to invest the remaining monthly District No. 2 cash balances in the amount of $415,289.00 with Prairie County Pool. Warrant numbers from June 15, 2017 to July 13, 2017 range from 24025 to 24073, no voided warrants. Pat in addition made transfers from Equipment and Emergency Reserve to District 2 Cash O & M in the amount of $22,500.00 for the preventive electrical maintenance of the Fallon Pumping Plants. Pat presented the Buffalo Rapids Irrigation District No. 2 Board Members with the completed 2016 audit. She stated to all members present that there were no finding or comments on the 2016 audit. On a motion made by Lance Kalfell and seconded by Barry Rakes the treasurer’s report was approved. All in Favor. Motion Carried. MANAGER’S REPORT: Tim and Pat informed all Board members present that Watts Insurance has acquired a new insurance carrier for the District's equipment breakdown in addition to the current policy with Montana Association of Counties Insurance. The new policy has a ten-thousand dollar deductible with a $600.00 premium. On a motion from Scott Sackman and seconded by Barry Rakes the Board of Buffalo Rapids Irrigation District No. 2 authorized Tim Kortum and Barry Rakes to acquire funding through Stockman Bank of Montana, Terry Branch, and sign contracts for the acquisition for a line of credit not to exceed $65,000.00 for major purchases for the District. All in Favor. Motion Carried. On a motion from Lance Kalfell and seconded by Barry Rakes the Board of Buffalo Rapids Irrigation District No. 2 authorizes a loan for up to $65,000.00 (sixty-five thousand dollars) for the acquisition of a line of credit for major purchases for the District. All in Favor. Motion Carried. Mr. Tim Kortum reported to the Board things are running well on the ditch. All of the pumps and motors were currently running without problem. The Terry Division Ditch rider is going to be taking time off in the end of July and the duties will be picked up by the heavy equipment operator for the duration of his leave. Tim discussed with the District No. 2 Board that the new motor for the Fallon River Plant will be slightly different than the current ones installed. He stated that a few modifications will have to be made for the installation of the new motor in the future. Tim Kortum advised the members of the Board that Pat and himself had a phone conference with the Bureau of Reclamation concerning the water rights of the District. The members of the Bureau of Reclamation stated that they will get back to the District by the beginning of next week on how to proceed with the issues of the water rights. The members of the Board and Tim also discussed retaining a water rights attorney as soon as possible to help deal with the issues since they have been ongoing for such a long time without any reconciliation of the issues that need to be resolved. The meeting was adjourned on a motion by Lance Kalfell, seconded by Barry Rakes. All in Favor. Motion Carried. ATTESTED: ________________________________ ____________________________________ Tim Kortum, Secretary Barry Rakes, President