At the June 18 meeting, Virgin Valley Water District chief financial officer Wes Smith presented a proposed budget transfer within the final budget for fiscal year 2019 that ends June 30. “After reviewing the projected year end expenditures for FY2019, it appears that we will again be within budget on a total basis. However, Legal and Litigation Expense is expected to finish the year with total expenditures around $360,000, which exceeds the approved budget of $120,000 by around $240,000.
“This budget overrun is due to the lawsuit brought against the District by Paradise Canyon, LLC (Wolf Creek Golf Course),” Smith stated in his report to the board of directors.
Smith’s proposal to transfer $250,000 in unused FY2019 funds from administrative, maintenance and salary categories to balance the litigation budget was accepted by the board in a 5-0 vote. This allowed closing a balanced FY2019 budget through processes outlined in Nevada statutes, which require announcement and board approval of any funds transfer in public meeting.
Nephi Julien, board chairman, concluded the vote by commenting that it is ratepayer dollars that pay the cost of the suit brought against the district by Wolf Creek golf course.
The only other actionable item on the June 18 agenda was approval of an annual asphalt patch contract for FY2020, starting July 1. VVWD manager Kevin Brown presented the results of the bid process that hires a company to do street repairs caused by failed lateral line damage. Of two bid finalists, J&J Enterprises submitted the lower bid, which was unanimously accepted by the board 5-0. The bid of $7.30 per square foot for single patch and $11 per square foot for double patch is an increase in cost from the previous year. Brown estimates that the total cost of street repairs in the fiscal year will be roughly $90,000, noting the newly purchased vacuum truck helps reduce the size of repair area and patches.
Reporting on the status of district water resources, hydrologist Aaron Bunker announced that six of the district’s nine wells, 1A, 2, 27A, 29, 32, and 33, are producing water at this time. Well 1A was brought online this past month after the Nevada Bureau of Safe Drinking Water approved well samples. The well produces 1,000 gallons per minute.
Bunker commented on the ongoing chemical washing at well 31 where the district’s contractor is working to reduce an overage of iron mineral in the water. That work will continue into July. Well 31 is the top producing well in the district and has been offline for rehabilitation for several months. He additionally stated that rehab on well 28 is in process, awaiting arrival of its submersible motor replacement, which is due in 5 to 7 weeks.
Other system repairs and expansion, as outlined by Bunker and Brown, include planning and movement of utility lines for siting of well 26A, planning for drilling of replacement well 9A, planning and siting of a pressure zone booster near Mesquite Heights and pending purchase of a site for the northwest water tank. The district has completed easements for well 34 water and power lines in Lincoln County, and expects to let bids for well 34 drilling and pipeline in July.
Expanding population in the district requires continued and methodical expansion of VVWD water sources and delivery system. Questioned by the board concerning the ideal ratio of extra system capacity over actual use, Brown commented that generally 20 percent extra capacity is ideal, and the district is working toward that goal.
In his financial report to the board, Smith noted that VVWD has been featured in the Economics Company newsletter as a “model” district using its Waterworth planning software to project system expenses and revenues over coming decades. VVWD aims to meet its obligation to deliver water to its users through long-range planning. Waterworth software is used by VVWD to match costs and revenues, with current projections forecast through 2040.