IVGID Meeting Highlights

March 20, 2021

3/10/2021 IVGID Board Meeting Highlights

Public Hearing – Union Contract
The Board Of Trustees unanimously approved the Memorandum of Understanding between the Incline Village General Improvement District and the Operating Engineers Local Union No. 3, Public Works Operations & Maintenance & Skilled Trades beginning July 1, 2020 through June 30, 2023.

GM Report

  • The General Manager introduced Brad Underwood, the newly hired Director of Public Works.
  • Ordinance 7 Committee Update – GM Winquest is planning two community forums (most likely Zoom) and a survey of property owners and residents.
  • In response to a question from Trustee Schmitz, District Counsel responded that he is preparing a written opinion on possible tax implications of certain employee recreation privileges, including gold and silver cards. Silver Cards are awarded to employees with 10 of service (or equivalent for season managers) providing the use of all District facilities at a rate of 50% of the Resident rate.  Gold Cards are awarded to employees with 20 years of service (or equivalent for seasonal managers) and provide a lifetime benefit of use of District recreational facilities for free.
Staff Report
Director of Finance Mr. Navazio provided the list of Management Responses and implementation plans stemming from the findings by Moss Adams, LLC regarding the District’s contract administration.  The report and findings may be accessed here. Mr. Navazio presented a brief update of Management Response activities. Trustee Schmitz inquired about the actions being taken related to the Moss Adams report citing the District isn’t adhering to Best Practices for public bidding of professional services contracts. Mr. Navazio suggested Board policies need to be developed, but that NRS is the District’s current guideline. Trustee Schmitz suggested that a budget/plan be in place for staff training in contract and project management. GM Winquest indicated a new position is planned for contract management.

General Business Items

The Board unanimously approved a design services contract for the Mountain Golf cart path replacement with Lumos and Associates in the amount of $75,100 and up to $10,000 to cover permitting fees.The Board unanimously approved Diamond Peak Ski Resort’s 2021-2022 Picture Pass Holder daily ticket and Picture Pass Holder/Non Picture Pass Holder season pass rates. There are no increases to resident rates.

After much discussion, the Board requested staff work with the golf community to formulate recommendations and options for the golf play pass rate structure for the Championship and Mountain Golf Courses. Trustee Schmitz suggested incorporating ways to increase revenues/decrease costs, consider the recommendation from the Global Golf study, and possibly open up more prime tee times for non-residents, who pay higher rates. While all acknowledged current resident rates do not cover operating costs, some trustees felt increases in play pass rates needed to be more gradual.

The Board unanimously approved the reallocation of $12,000 from unallocated Golf capital improvement funds to augment the driving range net replacement project and awarded the construction contract for the driving range nets in the amount of $96,000 (and up $3,000 for change orders) with Judge Netting, Inc.

The Board authorized up to $50,000 of funds from the Fiscal Year 2020/2021 General Fund budget and authorized the District General Manager to execute one or more professional services contract(s) to review/revise selected District policies, including, but not limited to capitalization and fund balance policies. The Board approved in a 4-1 vote, with Trustee Wong opposing.With the installation of the new water reservoir exterior ladders, the interior of the tanks were damaged.  Therefore, the Board unanimously awarded a construction contract for $18,750 (plus a 10% contingency) with Marine Taxonomic Services, Ltd. for interior reservoir coating repairs.  In addition, the Board approved an additional $8900 for the installation of safety mesh on the reservoir ladders.

The Board unanimously augmented the budget by $4,883 to a total of $61,883 for the replacement of the 2004 GMC Flatbed Truck so as to reflect the actual cost of the replacement vehicle.

The Board approved a payment in the amount of $20,485.96 to Erickson, Thorpe & Swainston, Ltd. bringing legal billing related to Case No. CV18-01564 Mark E. Smith v. IVGID current.  The vote was 4-1, with Trustee Schmitz opposing.

The next Board of Trustees meeting is a budget workshop scheduled for March 24th at 3:30 pm.

3/11/2021 IVGID Audit Committee Meeting Highlights

Whistleblower Procedure
Trustee Schmitz explained how the revisions contained in the Whistleblower document were comprised of researched best practices with the exception of anonymous complaints being sent to both the Audit Committee Chair and the General Manager. Legal Counsel had suggested the GM be included on incoming concerns. The Committee discussed and recommended this be modified to route anonymous complaints exclusively to the Audit Committee Chair for his/her determination of action to be taken. Other revisions were discussed.  The suggestions will be incorporated and brought back before the Committee at their next meeting.

Staff update on Internal Controls

Director of Finance Paul Navazio presented a compilation of existing documents.  He stated many were old and out of date. Committee members emphasized a need for enforcement, not just documented policies/procedures. Committee members also expressed support for hiring an outside consultant as a way to expedite the updating process and agreed with staff that a framework of internal controls would need adapting to IVGID’s unique needs. Management is intending to bring a proposed scope of work for discussion at the next Audit Committee Meeting.

Staff update on Chart of Accounts
Director of Finance Paul Navazio presented existing structure and discussed the needed changes to improve financial reporting. He also described opportunities afforded by future implementation of the Tyler software system.

The Committee is planning to address problems encountered with prior years’ audits, items for correction, audit deliverables, the timeline for this year’s audit, and Policy 15.1.0.  A more detailed project plan will be developed in cooperation with the new external auditor.

Dillon’s Rule

  • There was considerable discussion and concern regarding Legal Counsel’s opinion on Dillon’s Rule as it relates to certain employee benefits and allowable reimbursable expenses. The Committee voted to request the Board of Trustees engage legal counsel – possibly other than current District Legal Counsel – to develop Policies.
  • As it relates to Dillon’s Rule, the Committee discussed concerns relating to leasing property to non-profit tenants at below market rates.  The concern stems from the absence of specific references to donations in NRS Chapter 318, which defines the authority granted to General Improvement Districts.
    • Legal Counsel defended the District’s ability to set even non-cost recovery rates for nonprofits. Several Audit Committee members challenged the logic of the legal opinion.
    • The Committee voted 4-0 (Aaron abstaining) to recommend the Board of Trustees set rates for non-profits to cover full operating expenses and that long term lease rates for non-profits be set at fair market value less 10%.
  • The Committee also discussed Community Programming as it relates to Dillon’s Rule. Trustee Schmitz referred to the suggestion made at the budget workshop whereby anything provided to the general public, such as parks and community programs, be moved from the Community Services Fund to the General Fund.  This would therefore have costs covered through taxes instead of the Recreation Fee. GM Winquest indicated that may not happen. Mr. Dobler asked to bring the matter back on a future agenda.
The next meeting of the Audit Committee is scheduled on April 28th at 4PM.

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