MINUTES
Of the
MEETING OF THE COMMISSIONERS
Of the
BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2
Terry, Montana
March 8, 2023
The Eleventh Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the Eighth day of March, 2023 at 1:30 p.m.
There were present and participating at the meeting:
Barry Rakes
Lance Kalfell
Jackson Dion
Also present and participating were: Tim Kortum, Secretary, and Jessica Schott, 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 and Resolution from the February 15, 2023, Board Meeting were approved without corrections and, or additions, on a motion made by Jackson Dion seconded by Lance Kalfell. All in Favor. Motion Carried.
The Minutes from the February 15, 2023 Annual Producer Meeting were approved without corrections and, or additions, on a motion made by Jackson Dion and seconded by Lance Kalfell. All in Favor. Motion Carried
FINANCIAL REPORT:
Jessica Schott presented current budget figures which included payroll and expenditures through March 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 $94,014.24, to cover payroll and invoices were signed. March 15th estimated payroll: $16,351.94, March invoices $60,129.37, March 31st estimated payroll: $17,532.93. Investment transfer was signed to invest the remaining monthly District No. 2 cash balances in the amount of $484,788.73 with the Prairie County Pool. Warrant numbers from February 15, 2023, to March 9, 2022 range from 27488-27553.
The treasurer's report was approved on a motion by Lance Kalfell, seconded by Jackson Dion. All in Favor. Motion Carried.
Jessica Schott informed the members of the Buffalo Rapids Irrigation District No. 2 Board that a preliminary contract/permit was received from Jones Lang LaSalle (JLL) on behalf of BNSF Railway for the bore beneath the railroad tracks needed during the Phase II planned construction. The contract/license fee has been set at $5,315 for a period of 25 years, rather than an annual charge previously charged for the other three railroad crossing easements currently held by the District. JLL/BNSF are also requiring a separate policy for Railroad Protective Liability insurance be obtained by the District, to insure the railroad while Buffalo Rapids Irrigation District No. 2 employees and contractors are working within the railroad right-of-way. BNSF is offering to provide the District with this policy for an additional cost of $1,266. Ms. Schott explained that she had reached out to Watt’s Insurance regarding the Railroad Protective Liability policy to see if their office could provide this coverage at a lower rate than BNSF has offered. After some discussion, it was concluded by the Buffalo Rapids Irrigation District No. 2 board to approve the license fee of $5,315, and additional fee of $1,266 be paid to BNSF for the Railroad Protective Liability policy, unless Watts Insurance can provide it for a lower cost.
MANAGER’S REPORT:
Tim Kortum informed the members of the Board that the aluminum materials ordered for the doglegs on Phase I of the Lateral 1.6 project have been received. Currently, Josh and Rob are building the doglegs and Strad is assisting with the machining. Next, the doglegs will be moved to the paint shop for coating and the District employees will start working on the flow tubes. Mr. Kortum stated that 6 new meters will need to be purchased for installation when the Phase I length of pipeline is complete.
Mr. Kortum also reported that Gene Davis is working on repairs to the District’s Barber-Greene trencher, to be used on the Lateral 1.6 project. Tim Kortum additionally stated that RDO would be sending a technician to adjust the pressure on the District’s John Deere excavator, in order for the hydraulic hammer to operate more efficiently.
Jessica Schott presented quotes for
a new Worker’s Compensation Insurance policy, provided by Victory Insurance
Company in Miles City. The quotes
provided by Victory Insurance included the same coverage limits and
endorsements currently provided by the District’s policy with Montana State
Fund, and was quoted at $7,884 for the 2023-2024 policy period, which was
$1,505 less than the 2022-2023 Montana State Fund policy. Due to higher coverage limits being required
by JLL/BNSF Railway contract referenced earlier in the meeting, Ms. Schott
stated she also received a quote for higher coverage limits of $500,000 for all
Employers Liability coverages; Bodily Injury By Accident (Each Accident),
Bodily Injury By Disease (Policy Limit), and Bodily Injury By Disease (Each
Employee). The quote for higher coverage
limits from Victory Insurance Company was only $66 higher than their initial
quote at $7,950 for the 2023-2024 policy period, still $1,439 less than the
2022-2023 Montana State Fund policy with lower coverage limits. After much discussion and on a motion made by
Jackson Dion, and seconded by Lance Kalfell, it was RESOLVED,
To terminate Buffalo Rapids Irrigation District No. 2’s Worker’s Compensation policy with Montana State Fund, and accept the quote from Victory Insurance Company for a Worker’s Compensation policy with $500,000 coverage limits, effective the current policy’s expiration date of 04/15/2023. All in Favor. Motion Carried.
There was some further discussion regarding the upcoming termination of insurance coverage for Irrigation Districts by MACo Insurance Company on June 30, 2023. It was decided that in addition to asking multiple companies and agencies to quote the insurance package, Buffalo Rapids Irrigation District No. 2 would send a letter to Montana legislators and representatives to inquire about creating a new insurance pool for irrigation districts and/or special government districts.
The meeting was adjourned on a motion by Lance Kalfell, seconded by Jackson Dion. All in Favor. Motion Carried.
ATTESTED:
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