June 11, 2025 District No. 2 Board Meeting Minutes

 MINUTES

Of the

MEETING OF THE COMMISSIONERS

Of the

BUFFALO RAPIDS IRRIGATION DISTRICT NO. 2

Terry, Montana

June 11, 2025

 

The Second Regular Meeting of the members of the Buffalo Rapids Irrigation District No. 2 at Terry, Prairie County, Montana, was held on the Eleventh day of June, 2025 at 1:30 p.m.

            There were present and participating at the meeting:

Barry Rakes

Jackson Dion

Lance Kalfell 

Also present and participating were: Tim Kortum, Secretary, and Jessica Schott, Treasurer.

            President Barry Rakes called the meeting to order at 1:22 p.m., 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 May 14, 2025, Regular Board Meeting were approved without corrections and, or additions, on a motion made by Lance Kalfell and seconded by Jackson Dion at 1:23 p.m.  All in Favor.  Motion Carried.

            FINANCIAL REPORT:

Jessica Schott presented current budget figures which included payroll and expenditures through June to all Board members for their review.  A list of invoices, including the estimated renewal premium of $51,591.00 for the 2025-2026 Property/Liability/Auto Insurance Package through Marsh & McLennan Agency, to be paid was submitted and a form for the Prairie County Treasurer to transfer funds in the amount of $106,999.91, to cover payroll and invoices were signed. June 15^th estimated payroll: $14,309.19, June invoices: $77,114.48, and June 30^th estimated payroll: $15,576.24.  This transfer authorization was approved on a motion made by Jackson Dion, seconded by Lance Kalfell at 1:33 p.m.  All in Favor.  Motion Carried.

Ms. Schott then presented the investment statement, which was signed to invest the remaining monthly District No. 2 cash balances in the amount of $754,647.36 with the Prairie County Investment Pool.  Warrant numbers from May 16, 2025 to June 12, 2025 range from 28981-29037.

            Jessica Schott explained to the Buffalo Rapids Irrigation District No. 2 Board that due to inflation and increased consumer costs, the property valuations on the 2025-2026 Grundy/Philadelphia insurance policy had increased by nearly $500,000, as well as the company imposing a slight rate increase, resulting in the $4,599 increase in premium from the 2024-2025 policy period.  She also reported that an invoice had not yet been generated due to the agent’s request for underwriting credits to be applied.  The total estimated premium is within the District’s approved budget of $55,000, but could be finalized at a lower premium rate if credits were successfully obtained and applied, but the invoice will be due within 10 days of binding coverage on June 30, 2025.

            Ms. Schott also reported to all present that the employer contribution rate to the Public Employees Retirement System would remain at 9.07% for the July 1, 2025 to June 30, 2026 period, but that the Montana Unemployment Insurance tax rate would be increasing by 0.10%.

The treasurer's report was approved at 1:35 p.m. on a motion made by Jackson Dion, seconded by Lance Kalfell.  All in Favor.  Motion Carried.

            MANAGER’S REPORT:

            At 1:36 p.m., Tim Kortum reported District updates to the Buffalo Rapids Irrigation District No. 2 Board, stating that the culvert on Maybon Road was in the process of being replaced in collaboration with the Prairie County Road Department, and that a Mid-Rivers fiberoptic line had been hit during the excavation of the failed culvert.  He explained that Mid-Rivers is taking responsibility for the issue due to neglecting to locate all lines and discovering that some of their fiberoptic lines had been mapped incorrectly, including the one that had been hit.  Mid-Rivers has requested to be on-site when the next culvert was being replaced to ensure that all lines had been located properly and avoid a future incident.

            Mr. Kortum then informed all present that Gene Davis was still working on the planned upgrades to the new Loadking Lowboy trailer and would be finished soon.

Mr. Kortum then reported that the Fallon River pump’s shafts and lube tubes were back from Nebraska, and that the shafts had been brought back to Buffalo Rapids from Agri Industries so Strad could perform the necessary threading, and Agri Industries would continue to thread and finish the lube tubes and work on the spiders.  Mr. Kortum explained that the District employees were still a couple of weeks from being able to put the pump back in, but that they and Agri Industries machinists were doing all they could to complete the repairs.

Tim Kortum then reported to all present that TAB Electronics had been back on-site at the Fallon Relift to re-set and re-wire the 777 Motor Saver and Shut-Off switch that were still having some issues, and believed the problem had finally been resolved.

            Additionally, Mr. Kortum reported that an operator at McAulay’s had requested to take some water, and that he and Josh had identified a washed out portion of the lateral that had occurred over the period of lack of use.  Bill Tusler is scheduled to take the excavator out to the Shirley division to make the necessary ditch repairs tomorrow, June 12^th. 

            Mr. Kortum then led a discussion with the Buffalo Rapids Irrigation District No. 2 Board regarding the probable upcoming retirement of Bruce Lantis, and imminent need for an additional reliable full-time employee.  The possibility of looking into employing a non-citizen worker through the H-2A program was discussed, and it was agreed to pursue investigation into all employer requirements and verification of the District’s eligibility to participate.

            Lastly, Mr. Kortum reported that Performance Engineering was finalizing project plans for the Shirley Canal Lining project, including obtaining material options and bids from suppliers, and that a project schedule would be finalized upon the District’s receipt of this documentation.

The meeting was adjourned at 2:09 p.m. on a motion made by Jackson Dion, seconded by Lance Kalfell.  All in Favor.  Motion Carried.

            ATTESTED:

________________________________                    ____________________________________

Tim Kortum, Secretary                                               Barry Rakes, President