Flathead Irrigation District Meeting, February 11, 2018
Lake County Community Development Center, Ronan
407 Main Street SW., Ronan. 1:00 PM
Attending Commissioners: Paul Guenzler, David Lake, Dave Vincent, Bruce White, and Janette Rosman.
Pledge of Allegiance.
Recording: FID Janette, Christopher Chavasse for David Passieri
Treasurer Report:
BUDGET; Janette reported she did not receive 2018 budget from Whaley Accounting until late Saturday afternoon. In reviewing it there were some errors and at this meeting we are unable vote on end of year Transition budget. Dick passed out a summary to help us understand the budget and in March the corrections will be made and there will be a vote to close out 2018 budget. The first three months of Fiscal Year, November 18th thru January 19 was presented for commissioner’s review.
January Minutes:: Motion was made by Dave Vincent, Second by David Lake to approve January Minutes. Passed unanimously.
Warrants: Flathead warrants totaled $4,287.89. Admin. 12/31/18 was $654,226.54. O&M there was a typing error on Table 2 Warrant list and should be $2,086,123.58. David Lake made motion to accept the warrants, Dave Vincent second, passed unanimously.
Review of O&M Budget third and final announcement: Janette said we had discussion with Jennifer (Janette said Karen Cote & it’s Jennifer Cote), that FID had to make notice of O&M Budget for three months. Valley Journal had a posting in the legal section and Public notice was made at the courthouse and Jennifer Cote said we can do all of the above, make the O&M payment and then vote on the budget. Janette also made note that we are always two months behind when Whaley Accounting gives us O&M figures. BIA payment on 12/31/2018 had not been taken out yet. David Lake made the motion that we approve the 2018/19 O&M Budget, Second by Janette Rosman, Passed unanimously.
Jennifer Cote Contract for FID 2017/18 Audit: Contract is for FID 2017/18 Audit at $9,000.00. FJBC and Flathead both had to do yearly audits because assessments are over $750,000.00. 2015/16 Audits have been completed. Janette made a motion that we go ahead and approve Jennifer Cote contract for $9,000.00 to complete FID 2017/18 audits required by the State of Montana. Bruce White Second. In the discussion David Lake asked if there was a budget for 2017/18 audit and it was not in the budget. Motion failed. Bruce Abstained.
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Third Reading of Bylaw Changes:: Article VI. Officers, Section 7, Secretary #2. The Board may outsource bookkeeping and financial responsibilities. Article VII. Section 5, Agendas. Agenda shall be emailed to Commissioners. Section 6. There will be no Proxy Voting. Article IX. Section 2. Hand signed and Signature Form filed with county treasurer, Rubber Stamps are not allowed. Article X., Books and Records. . Article XII., District Seal. Article XIII. Amendment to Bylaws. Article XIV. Joint Operations. Refer to State Code. David Lake made a motion to approve and accept the third reading of the presented bylaw changes, Second by Dave Vincent. Passed. Bruce White abstained.
First reading of Article XI., change Fiscal year from November 1 thru October 31st.
FlatheadIrrigationDistrict.org is up and running.
CME working group discussion: David Lake stated we have sat down with CSKT and have had amiable meetings, they are willing to work with us, we’re putting out ideas, brainstorming, and we’re going off the old CME document, its available and out there for everyone to read. Paul stated the thought is to see all three districts being a part of the process. Remainder of discussion can be heard on line.
Cassie Dellwo report:
1. Transferring of the District building in St. Ignatius and checking account both presently in FJBC name. Cassie has stated since the Court ruled the FJBC was never a legal joint operation the Joint Board has no authority to sign off on distribution documents. She thinks it is necessary that the FID petition the Court to re-open Mission Valley Irrigators United, Inc., et.al. Vs. FJBC solely for the purpose of distributing the assets held in the name of the Joint board. It would be in the best interest of the Flathead, Mission and Jocko districts to file a joint petition stipulating to the division of the assets based upon their respective interests according to the percentages on acreage. Jocko 6.9%, Mission 13.2%, Flathead 79.9%. David Lake made motion to move ahead with what Cassie suggested to petitioning the court for the purpose of distributing the assets held in the name of the Joint Board according to District percentages regarding the District building and checking account. Bruce White second. Passed.
2. Collection of funds from Mission and Jocko Districts. Pertains to warrants paid directly out of the FID Account that Jocko and Mission never participated in payments. Discovered in FJBC and FID audits done by Jennifer Cote. Cassie suggested we write a letter to Mission and Jocko and ask them to participate in the payment. She thought the easiest way to get money would be for Mission and Jocko to participate in the turning over of the remaining funds in FJBC Account to FID. There was a miss quote of the total amount paid out at February meeting, some confusion as there was $30,000 that was never confirmed and $71,357.00 paid out to Rocky Mountain Law firm and Arcadia in 2016 that was confirmed. The only amount we can ask Mission and Jocko if they would
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contribute to the charges would be the confirmed ones. At February meeting the figure quoted was $30,000 and that was an error. Total amount paid out of FID funds in 2015/16 was over $100,000.00 and only $71,357.00 confirmed. There was discussion about Mission and Jocko turning over FJBC checking account balance to FID. Estimated balance is less than $13,000.00. Cassie recommended we make the request, send a letter of discovery and offer them a settlement. We take a reduction of payment and waive the amount if we can have the balance in FJBC account. This discussion was all done with the thought the confirmed amount was $30.000.00.
3. Camas Petition. Cassie has been communicating with Camas Attorney and has reviewed the petition.to create a Camas Irrigation District in Sanders County, Montana. Petition has met the appropriate number of landowners in the area to sign the petition. There is however no showing that all tax lien holders on the land has also consented to the petition in accordance to Montana Code. Ann. 87-5-101. In order for a new irrigation district, Camas must also obtain a written report or opinion from the Department of Natural Resources and on the engineering features involved and possibilities of water supplies. In order to obtain this report, the petitioners are required to file a copy of the petition with the department at the same time it is filed with the court. She has asked the counsel for Camas to provide evidence that Camas has consent from the lien holders and a written report as required by Montana law. Once those are provided to FID and as long as Camas can show that there will be no detriment to the Flathead Irrigation District by the creation of their own district, she thinks a stipulation or consent is a viable option. She has also requested that Camas provide the following to FID in order to consider a stipulation: 1. Timing, when does the district start; 2019 season v. 2020? 2. Allocation of costs; 3. Allocation of assets; and 4. Allocation of land (which irrigators are a part of the Camas District). Once we have their first proposal, we can review and determine if a counter offer should be made or if the proposal should be accepted on its face. Dave Vincent made a motion that the Flathead Irrigation District will not oppose the separation of the Camas District providing Camas and FID can reach an agreement to all the terms stated and have judicial approval. Second by Bruce White, passed unanimously.
CITT and Water Resources meeting: David Lake reported that it is good that the irrigators have a voice at both organizations.
Internal Control training by Jennifer Cote, Feb. 12. District office.10-12PM.
Letter from FBI, nothing new, still working on case.
Public Notice: Ted Heine said Bruce Hendrickson still has our files. Need to get them back to District office. Janette suggested Mission and Jocko need to be a part of that.
Dave Vincent made a motion to adjourn, Bruce White second, passed unanimously.
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