Tuesday’s meeting for the Virgin Valley Water District was relatively short in comparison to recent meetings.
After hearing a report from Sandra Ramaker, Marty Johnson, a bond consultant with J & A Consulting, presented a new alternative in refinancing the 2008 Water Refunding Bond that the District has been working on. The new alternative that has been chosen by Chief Financial Officer Wes Elliott is to go through the State of Nevada’s Revolving Fund which would lower the interest rate and double the amount of savings initially anticipated of $750,000.
“We won’t have final numbers until Friday, but based on where we are right now, we will save just a little over $1.4 million overall,” said Johnson. He continued by saying that in closing around May 28 with the final details, the refinancing will be about $102,000 per year until it is paid off in full in 2033. The board approved the move unanimously. “Thank you for your hard work, we appreciate it and like saving money and get some of that bond reduction fee back to the people a lot faster,” said President Nephi Julien.
Other approved items on the agenda included the purchasing of a backup pump replacement for Well 31 from Weber Water Resources for no more than $26,850. Well 31 is the highest-use well and had recently been replaced, using the backup that the district had in stock. “This is about the same as previously purchased for this item,” said Hydrologist Aaron Bunker.
In the matter of settling a final payment of the interest accrued from John Lonetti and the delay of his initial agreement, the board opted to send one board member and District Manager Kevin Brown to talk with Lonetti to see why there has been no response from a letter sent to him on April 14, 2015 regarding the outstanding interest of $88,802.52, which was the bare minimum allowed by Nevada Law.
One item on the agenda, an award for the repairs to the 2015 Mesa Boulevard Waterline Replacement Project, was tabled by the board due to staff requests for more time to talk to the bidders. The low bidder was Trade West who determined they could complete the work according to specifications for only $298,343.69. The next closest bid was placed by Long View Construction & Development for $413,183.22, leaving a considerable gap in between. Manager Brown said that he needed more time to gather information and bring it back to the board at the next general meeting on June 2, 2015.