Central Montana Resource Conservation & Development
Board of Directors Meeting
Wed., April 21, 2010, 10 a.m.
SMDC Conference Room, Lewistown

Attendance: Ken Ronish, Ralph Corbett, Carol Ann Schaeffer, Skip and Diane Ahlgren, Dick Ellestad, Larry Lekse, Gary Thomas, Edgar Lewis, Doug Hitch, Bill Thomas, Richard Moe, Monty Sealey, coordinator; and Carrie Mantooth, assistant coordinator. Guests, Kathie Southworth, Wells Fargo Home Mortgage and Doreen Heintz, Lewistown News-Argus.

Welcome and Introductions: Chairman Edgar Lewis welcomed everyone to the meeting and introductions were made.

Approval of Minutes: The Feb. 17, 2010, minutes were approved as presented following a motion by Gary Thomas, seconded by Ken Minnie.

Treasurer’s Report & Current Bills: Treasurer Diane Ahlgren reported a balance of $13,260.41 in checking; $1,305.57 in savings, and CDs at $16,005.48 and $33,894.71. The CDs will mature in Aug. 29. Ken Ronish made a motion, seconded by Larry Lekse and unanimously approved to accept the treasurer’s report.

Bills presented included: Beehive Insurance, $890, for directors and officers liability insurance; Western RC&D Association dues for $250; two invoices from Loren Randall, CPA, including, $2,950 for the audit dated June 30, 2009, and for $500, for preparing a tax return and filing an extension for 2008; Taxes ‘N Things, $20, for quarterly withholdings; SMDC for Carrie’s time and expenses, postage, phone and rent for two months, $4,529.01; to Monty Sealey for reimbursement of $52.99 for what he personally paid online to the Montana Secretary of State for the annual report ($15) and to Melissa Data Corporation for the addresses database information used for the Musselshell Growth Policy surveys ($37.99). Ken R. made a motion, seconded by Dick and unanimously approved to pay the bills as presented.
Monty said the DNRC grant funds that help fund Carrie’s position have ran out so the rest of the fiscal year will be paid by NRCS grant funds to Central Montana RC&D.

Announcements: Monty presented the following:
- The state assistant state conservationist with NRCS wants all Montana RC&Ds to return a “rapid assessment” by May 28, then they will conduct a review at Monty’s office to look at dollars leveraged, funding, etc.
- A book on water rights sales and transfers written by Montana authors. Monty is going to suggest that Central Montana Regional Water Authority purchase the book.
- Montana RC&D Association will hold its next teleconference April 22.
- SAFE Act: Carrie said the latest word on SAFE Act’s effect on homebuyer counselors is that they will not fall under the act if they aren’t doing any lending (and this RC&D is not).
- The 2010 Montana Housing Partnership Conference is June 15-17 in Helena. NeighborWorks Montana also won the Top Producer 2010 national award and recognized its partners like Central Montana RC&D for its contributions.
- Montana Non-Profit Association will have a free webinar April 22 on “Demystifying Directors and Officers Insurance.”
- Provider Pals is an educational program that began in Libby that is now a national program with a mission of educating youth in the city about producers providing the raw materials for the products on store shelves. It’s been a very successful program.

Homebuyer of the Year Award: Central Montana RC&D presented a “Homebuyer Presenter of the Year” award to Kathie Southworth of Wells Fargo Home Mortgage for her outstanding efforts and faithful service over the last eight years. Carrie said Kathie is very knowledgeable and an excellent presenter. She also generously buys pizza for each class! Kathie told the board that she believes the homebuyer education class is valuable in arming potential homeowners with the information they need to know if buying a home is the best decision for them.

Audit-Financial Statements: Monty said no unusual exceptions were found. Ken made a motion to accept the audit, seconded by Gary and unanimously approved. Monty distributed the 2008 and 2009 tax returns and the 2008 extension for Central Montana RC&D and offered to make a copy for anyone who wanted one. He noted that non-profit corporations must present the tax returns to its board of directors with a quorum present (there was a quorum). Each board member initialed the returns.

Contract Agreement #IDG-10-0145: Monty presented a contract agreement from DNRC with Central Montana RC&D for a grant submitted on behalf of the Musselshell Watershed Coalition. The award for $18,000 is for planning for the GIS database of water infrastructure along the Musselshell River. This project was already adopted and is related to the area resource plan project. Monty said rather than hiring staff to maintain the database, they will solicit proposals to do this online and it will be accessible to the region and managed by the watershed group.  Discussion followed on how once the database is set up, other organizations will be able to use it and “layer” information beyond just the irrigation infrastructure.

Project status reports:
- Musselshell Valley Community Foundation: RC&D helped the foundation with a $15,000 request to the Montana Community Foundation’s Leadership Grant Program. They were awarded $5,000 and invited to apply again. These funds will be used for shared staffing for the foundation and the area chambers of commerce.

- Musselshell Watershed Coalition: The next step with their GIS project is a DNRC Renewable Resources Grant Loan application, which Monty will help write. The request will be for $100,000 for the GIS system, collection of data and three additional measuring devices on the river. The coalition is partnering with the Musselshell Drainage Resource Planning Group and others, which will help the region have “one voice” and cohesion when they testify to the Legislature on legislation that affects natural resources. Bill Milton of Roundup is also working with the conservation district on this project.

- Mosby-Musselshell Off-Stream Storage Facility: Diane said their engineer will submit a DNRC RRLG and they will ask Monty to look it over. They don’t have the water right yet, but hope to have it by the end of July and will ask DNRC to make that amendment to the grant if they are successful. The DNRC request is for some feasibility, a geo-technical survey, environmental, flow analysis, etc. There hasn’t been another off-stream storage project proposed for 30 years so other conservation districts are very interested in seeing this project succeed and set precedent.

- Homebuyer Education: Carrie said nearly 15 people attended the April class the previous week and part of that is likely the mad rush to get in on the federal income tax credit for up to $8,000 for first-time homebuyers. She’s been asking for a $20 registration fee that’s refundable, but asked the board’s input on charging a $20 fee per household to help cover expenses for the materials. She noted that they were one of the few, if not the only, class in the state not charging a fee. The Council agreed it was a good idea.

- Central Montana Regional Water Authority (CMRWA): Monty said the project finally has the attention of Montana’s Congressional delegation – during a time when the federal government doesn’t have money for appropriations. Great West Engineering is getting through the Bureau of Reclamation Rural Water Supply Act Rules. The Bureau wrote a letter saying that CMRWA is going through the correct procedures, and that letter will be provided to Congress. CMRWA officials had a teleconference with Sen. Tester’s staff and Monty said they were very receptive. They are trying to move forward with a production well west of Garneill at a cost of $1.2 million. The feasibility work is nearing completion and the plan is to go for authorization in the fall of 2011. To date, CMRWA has spent a little more than $1 million, but they have another $298,000 from the DNRC appropriation and a $300,000 DNRC grant that will be used for match on the production well.

- ATechBuilders Ready to Move Homes: Company president Rick Downs sent a letter out to shareholders asking them to vote on asset liquidation, or the alternative of letting the bank repossess. If they voted yes, they were also told to be prepared to immediately give 15% of what they originally invested. The Council agreed that RC&D would not put any more money into ATechBuilders. The company was two days away from having its power shut off at the Malta facility and owe about $80,000 (not including what they owe to stockholders). Monty said at a board meeting last week, several board members wrote checks with the agreement that they will recover those funds as assets are sold. Assets include $100,000+ in building materials, equipment, a show home at Malta, and one incomplete home. They are working with a group in Glendive that may finance an operation there to build scaled-back temporary homes that would be marketed for oil-field workers. The land that ATechBuilders acquired in Roundup will be released by the bank for sale to a buyer from Alaska with a closing date of May 7.

- Growth Policy: A grant from the Montana Coal Board will help fund the Musselshell Growth Policy, which was already approved as an RC&D project. A county-wide 8-page survey was mailed a few weeks ago and 500 have already been returned. Monty hired a temporary worker to do the compilation, using a database in Excel and software that can be queried. A contractor will be hired to write the policy.

New Project Requests:
- DNRC RRGL: Monty asked for a signature for the DNRC RRGL request for the GIS system. Skip noted that having this database would be a great thing and that the various groups along the Musselshell River working together would be an asset.

Other Business:
- Policies: Monty distributed drafts of a Conflict of Interest Policy, Document Retention and Destruction Policy and Whistleblower Policy and asked the board to look them over and be prepared to act on them at the next meeting.

- USDA Civil Rights Statement: Monty also asked the board to act on putting the Civil Rights Statement on all correspondence, as is required. Ken R. made a motion, seconded by Gary and unanimously approved to add the statement.

Next Meeting & Adjournment: With no other business, the meeting was adjourned. The next meeting will be held Wed., June 16 at 10 a.m.

Minutes prepared and respectfully submitted by
Carrie Mantooth, Central Montana RC&D Assistant Coordinator

Central Montana Resource Conservation & Development
Board of Directors Meeting
Wed., February 17, 2010, 10 a.m.
SMDC Conference Room, Lewistown

In Attendance: Larry Lekse, Richard Moe, Dick Ellestad, Skip Ahlgren, Diane Ahlgren, Ralph Corbett, Bill Thomas, Cody McDonald, Ken Ronish, Central Montana RC&D Coordinator Monty Sealey and assistant coordinator Carrie Mantooth. SMDC Executive Director Kathie Bailey joined the group later in the meeting.

Welcome & Introductions: In absence of Chairman Edgar Lewis and because Vice Chairman Dick Ellestad arrived late, Secretary/Treasurer Diane Ahlgren opened the meeting. Everyone introduced themselves and new board member Bill Thomas was welcomed.

Approval of Minutes: The minutes of the Dec. 16, 2009 meeting were approved as presented.

Treasurer’s Report & Current Bills: Bills were presented for payment including Westwind Design for $415 for web services, for Richard and Alicia Moe for lodging and mileage to the Western RC&D Association meeting in Missoula, and from SMDC for $4,673.08 for two months of Carrie’s time, expenses and conference room rent. Ken Ronish made a motion to pay the bills, seconded by Cody McDonald and unanimously approved. Diane reported that with the bills just presented for payment, the checking balance is -$3,331.24. The savings balance is $11,288.48, not including interest since the last meeting. The CDs will mature Feb. 28 and the balances are $16,005.48 and $33,894.71. Monty said he will also have a $10,000 grant from NRCS that he hasn’t billed yet, but this will be the last time those funds are received. Monty requested that the board approved up to $1,000 for a new laser printer for Carrie’s office. Carrie said the printer she is using is on its last legs and was purchased by SMDC about four years ago. RC&D has purchased printer cartridges a few times, but most of the supplies are being purchased by SMDC.  The purchase can be made from homebuyer education funds. Larry Lekse made a motion to approve the purchase, seconded by Ken and unanimously approved.

A request was made later in the meeting for a $5,000 commitment to help the Musselshell Drainage Planning Group purchase software and equipment to match a DNRC grant. (See description and motion under Musselshell Watershed Coalition.)

Monty said he also has a $7,000 check for deposit from DNRC for reimbursements. Ken made a motion, seconded by Larry and unanimously approved to accept the treasurer’s report and to transfer $10,000 from savings to checking to cover the above bills and purchases.

Announcements: Monty presented the following:

- Email from the Montanans for Responsible Energy Development with a list of articles about energy news, including global warming, etc.
- Information on the tour of green housing projects in Missoula arranged during the Western RC&D Association meeting in Missoula.
- Newsletter from the Forest Products Laboratory with an article on carbon markets, anticipation of Cap and Trade, etc. Monty noted that according to a Billings Gazette article the Montana Graingrowers favor Cap and Trade.  Discussion followed that because there is money to be made, groups are positioning themselves in favor of it. National Carbon Offset Coalition, associated with RC&D, was set up 10 years ago in anticipation of this market.
- Monty said that Edgar Lewis called him after the last meeting and he met with Quad Five representatives. Quad Five is struggling with licensing following an inspection last summer when they were told they need to provide shelter for their rangeland sheep. The next inspection was set for the end of December, but Monty hasn’t heard how that went. The state veterinarian and others have said that not providing shelters for range animals isn’t an issue and Monty said he offered for RC&D to provide letters of support. The next step may be going to Montana’s Congressional delegation.

Audit: The audit is in progress and should be finalized within a month.  So far the finding is the same as usual – that there is not enough separation of duties, but Monty said since the organization is so small, there isn’t a way to avoid that. Monty asked if the board wants auditor Loren Randall, CPA, to do an exit interview with the officers. Ken noted that since Loren also does Head Start and SMDC’s audits the cost could be split three ways if the board feels they need to meet with him. No motion was made to bring Loren in.

Western RC&D Association Conference Report: Richard said he and his wife, Alicia, enjoyed the conference, especially keynote speaker Bruce Vincent, with Provider Pals. His organization promotes the natural resources message that they are not fighting people, but rather ignorance. They present information to schools, universities, etc. Dick suggested RC&D help arrange his speaking to groups in our area, including the Winter Fair. The Moe’s talked about marketing for small manufacturers (they are partners with Cream of the West). Monty said the conference theme was “Creating Tomorrow’s Food and Energy,” and was attended from RC&Ds from 11 states.

RC&D Funding: RC&D has been zeroed out of the President’s Budget again. Monty has written “talking points” about RC&Ds for the Montana RC&D Association for Montana’s congressional staffers. RC&D has been on the chopping block many times, but there is concern that this recommendation was made by NRCS’s former state director, Dave White, who is now the National NRCS director. The entire RC&D budget is $57 million, which isn’t much money for the entire country, but it was noted that because each RC&D looks so different and is such a broad mission, it can be hard for congressmen to understand what RC&D’s function is. Monty is one of only a couple of coordinators in the nation whose position is not federal - his position is funded by DNRC. DNRC’s budget is also being cut, but Monty said that it looks like funding is safe for at least the biennium.

Project Status Reports
- Musselshell Drainage Resource Planning Group: Richard and Larry updated the group on this multi-county effort to put together a natural resource plan that will give local governments a voice in federal planning activities. Central Montana RC&D pledged $5,000 to the effort last year and are providing staff time. The group currently consists of Petroleum, Musselshell, Golden Valley, Wheatland and Meagher Counties and Garfield will be invited. Commonalities in existing plans will be compiled for a regional plan.

- Lower Musselshell Off-stream Storage Facility: Diane said the water rights application has been submitted to DNRC and they have 180 days to review and will be contacted with time for rebuttal if there’s any problem with the application. They will submit another Renewable Resources grant to DNRC. Monty said the group was told that they needed to have the water right before submitting a DNRC Reclamation and Development grant, but that isn’t accurate. They will be more competitive if they have the water right, but just having the water right application submitted will help. Diane asked for RC&D assistance in writing the R&D grant, which has a May deadline.

- RTM Homes: Monty reported that ATechBuilders has renegotiated a deal with the bank, and have the Malta facility listed with a Havre Realtor. They need to finish two houses and are currently working with a group from Glendive on a deal that would keep them going. However, they may or may not be able to continue operations.

- Homebuyer Training Program: Carrie reported continued good attendance at the monthly homebuyer education classes and said there are some changes that may affect counselors. The discussion will be continued under new project requests.

- Regional Water: Central Montana Regional Water Authority (CMRWA) met in Harlowton last week and staffers from Baucus and Tester’s offices were in attendance, as well as the director and staff from the Bureau of Reclamation office in Billings. Work continues on the feasibility and Phase II, Part 2 is complete, looking at storage, pumping and controls. With the anticipated production well field at Garneill, projected project costs were reduced significantly. When the group first formed, the project costs were estimated to be $37 million. Engineers then projected the costs to be $107 million when looking at the Utica site, but that projected cost is now $87 million, which is a relatively small regional water project. Reclamation hasn’t released its final rules yet, but the Billings office is working with Great West Engineering based on the draft rules so CMRWA’s report will be ready to go. There are six regional projects applying, but Reclamation staff felt this project is in good position for funding as it’s so far along in the process. The group will need to comply with National Environmental Policy Act (NEPA) regulations, prepare a water conservation plan and financial feasibility piece, then will be ready to go to Congress. Monty thought they could ask for authorization in spring 2011 and for an appropriation by fall 2011. The group will be conducting a series of public meetings in the communities along the route in the next few months.

New Project Requests:
- Musselshell Valley Community Foundation:  The foundation is applying for a leadership grant from Montana Community Foundation that would provide funding for shared staff for area non-profits and have asked RC&D for assistance with the grant.

- Musselshell Watershed Coalition: The Musselshell Watershed Coalition is looking at a GIS system that would inventory irrigation structures in the Musselshell Watershed. Monty attended a meeting last week, along with Skip and Diane Ahlgren, and then spoke to the Musselshell Drainage group about partnering. The system would allow users to compile data for the counties and watershed area and RC&D has offered to host the system. The total project would cost about $50,000 and have a annual fee for maintenance and registration of about $3,000. Compiling all the information would take about three years and need to be maintained, but would be of great value for these groups and RC&D. Monty asked for $5,000 from RC&D to assist the project (in addition to the $5,000 committed for the natural resource planning efforts).
Richard made a motion, seconded by Diane and unanimously approved to:
- Assist with the leadership grant for the Musselshell Valley Community Foundation;
- Partner with Musselshell Watershed Coalition and the Musselshell Drainage Resource Planning Group on this GIS project and approval to help the Lower Musselshell Off-stream Storage group with its DNRC grants;
- Commit $5,000 for the GIS project.

Other Projects:
- SAFE Act: SMDC’s Kathie Bailey joined the meeting. Carrie explained that because of the passage of the SAFE Act, she may need to have mortgage broker certification to even do homebuyer education classes with a lender present. The act has caused a shake-up in the state among groups doing education and offering first-time homebuyer cash assistance. HRDC has decided not to continue with the HOME grant for closing cost and down payment assistance because of the new regulations. HRDC had contacted SMDC about picking up those services and Kathie and Carrie presented to the board a proposal that RC&D would pick up Carrie’s certification and SMDC would certify a staff member, probably bookkeeper Diane Pennell. The City of Lewistown has in the neighborhood of $70,000 in funds that SMDC could use to conduct home assistance activities. The certification consists of about 20 hours of online training and a test at a cost of $1,000. Larry made a motion, seconded by Cody and unanimously approved to pay for Carrie’s certification and time.

Adjournment: The next meeting will be April 21. With no other business the meeting was adjourned.

Minutes prepared and respectfully submitted by:
Carrie Mantooth, Central Montana RC&D Assistant Coordinator

Central Montana Resource Conservation & Development
Board of Directors Meeting
Wednesday, December 16, 2009, 10 a.m.
SMDC Conference Room, Lewistown

In Attendance: Edgar Lewis, Doug Hitch, Richard Moe, Dick Ellestad, Diane Ahlgren, Carol Ann Schaeffer, Cody McDonald, Ken Ronish, Ralph Corbett, Gary Thomas, Monty Sealey, Central Montana RC&D Coordinator and Carrie Mantooth, Assistant Coordinator.

Call to Order: Chairman Edgar Lewis called the meeting to order and welcomed everyone to the meeting.
Approval of Minutes: The minutes of the Aug. 19, 2009, meeting were mailed to board members prior to the meeting and approved unanimously following a motion by Ken Ronish, seconded by Cody McDonald. (The October meeting was cancelled.)

Treasurer’s Report: Diane reported a checking balance of $13,143.64, including a deposit being made today; and a savings balance as of Aug. 1 of $11,288.48. At the August meeting, the board voted to renew the CDs for six months. One CD has a balance of $33,640.77. Interest earned last year was $1,075.75. The second CD has a balance of $15,885.57 and earned $507.95 in interest last year. Both CDs will mature Feb. 28, 2010 and are earning 1.5 percent interest. Ken R. made a motion, second by Gary Thomas and unanimously approved to accept the treasurer’s report.

Current bills were submitted including invoices for four months from SMDC for Carrie’s time and expenses and rent for $10,053.73 (reimbursed by DNRC), subscription to Chronicle of Philanthropy for $49.97 and National RC&D Association of RC&D Councils for $450 for 2010 dues. Gary made a motion, seconded by Ken R. and unanimously approved to pay the bills.

Announcements: Monty distributed:
• Literature on ground water published by Montana DEQ, and noted that there will be a great deal of legislation at the next session dealing with groundwater. There has been no distinction between shallow water and deep groundwater in Montana, but out of state it’s being talked about.
• Map of snow survey sites in Montana predicting run-off;
• Guide to stream permitting from Montana DNRC;
• Announcement on water rights meetings Feb. 9 in Billings, March 9 in Bozeman and TBA in Missoula sponsored by Montana Watercourse and Montana DNRC. Monty said RC&D could send interested board members. He said there is an effort this year to drop the threshold on well depth permitting.
• Montana Petroleum Association information on resource taxes and what they contribute to the state’s budget.
• Montana Association of Conservation Districts (MACD) will meet in Lewistown in January;
• A brochure with a summary of what’s in the new Farm Bill;
• Montana DEQ is asking the public is asked to comment on air pollution by May 15, 2010 as they will submit an Ambient Air Monitoring Network Assessment Plan to EPA by July 1, 2010.
• The Energy and Telecommunications Committee is revising the state’s energy policy, SB 290, and looking for comment.
• Announcement of the State Winter Grazing Seminar, set for Jan. 13-14 in Havre.
• EPA rule changes are coming according to a Dec. 4, 2009 article in the Prairie Star, primarily regarding spraying pesticide near water.
• The Western RC&D Association will meet Jan. 31-Feb. 3 in Missoula. The Western makes up 10 western states. Central Montana RC&D will send board members who would like to go. The “farm to table” movement will be featured and Richard said it is gaining attention. In the 1950s, Montana used to produce 60 percent of the food we consumed, and now it’s only about 10 percent. Energy will also be a featured topic, including wind energy at the local level, integrated systems and energy policies. Richard and Alicia Moe (who will be on a panel) will be attending and Monty said the Council can offset their expenses.

State Association: The Montana RC&D Association has been having a monthly conference call and will be meeting once or twice per year. Monty encouraged board involvement.
Audit: The audit is in full swing.

Project Status Reports:
• Central Montana Regional Water Authority: Dale Longfellow resigned as chairman, and Joel Marking was appointed interim chairman. Monty said they are still negotiating with landowners for production well sites and that’s going well. They are also moving forward with the studies required to go to Congress for authorization. The Bureau of Reclamation has had reps at the last two meetings and they think they will have the Rural Water Supply Act of 2006 rules completed this week. Once the appraisal report is approved, CMRWA will be eligible to apply for assistance to drill the next well. Great West Engineering is on Phase II of the feasibility, and a revised pipeline route has reduced the project costs by $20 million; putting the total project costs in the $80-85 million range.

• ATech Builders: The business is struggling to survive. They may have an offer to buy the Malta production facility and if that happens, they may move to Roundup.

• Musselshell Watershed Resource Plan: Richard said they have not met, but are planning to meet early in the new year. Central Montana RC&D will continue to help them move forward with this five-county plan.
• Lower Musselshell off-stream storage: Diane said they are still moving forward, but since they’ve changed their focus regarding sites, it’s slowed them down. The watershed coordinator Cal Frank is nearly done with the water rights application to DNRC. Monty will be working closely with the group.

• Heritage Center Study: Carrie has been in contact with Alan Evans and is contacting the university system and the Buffalo Bill Historical Center in Cody, Wyo., to gauge interest in the project. There has not been any response so far.

• Harlowton Headgate: Monty said there is no progress on this project, but he said this will be a spring project. He has been in contact with the NRCS Engineering Department and the Harlowton City Council. The council has no funds for match for grant funding.

• Signal Peak Energy Coal Development: The mine is testing its new longwall miner underground and plan to be in full operation with it by the first of the year. Monty will try to arrange a tour this spring. Most of the coal is shipped by rail to Boich Energy power plants and for test burns. This coal is cleaner, with less emissions that the mid-west coal. Monty said that in effect, this project becomes a conservation issue because of the reduction of emissions by about 10 percent – a fact he promoted at the Montana Association of Conservation Districts meeting. The group also discussed the Otter Creek Coal Tracts and the Montana Land Board’s upcoming decision about leasing the tracts on State Lands that are interspersed with Great Northern Properties.

• Biomass feasibility: Monty said that since this project was adopted some major changes have taken place including Stone Container shutting down, and the pulp market with it. He was also approached by a former legislator about including in a feasibility supplementing with waste coal. He will continue to work on this. Edgar said he saw an article about proposed wind projects in Judith Basin and Wheatland.  Cody said they are still waiting on a power line and can’t move forward until that is resolved. Richard said TransCanada is the best hope. Transmission continues to be the largest hurdle. Richard noted that if the line goes through, compensation to counties through taxes would be a huge deal.

Other Requests:
• Geyser Meat packing Project: Monty had a request to meet with a man looking at a meat packing facility in Geyser. He wasn’t looking for funding, just help in doing due diligence. Monty said a big issue beyond the permitting, water rights issues, disposal, etc., would be getting labor to come into the area permanently. Monty asked that the Council adopt this as a project. Gary made a motion to adopt this project, seconded by Ken R. and unanimously approved by the board. Ken R. suggested that SMDC be contacted about worker training funds.

Other Business:
• Quad Five: Edgar told the board that Quad Five, located in Golden Valley County, is having problems with the Department of Ag’s requirement that lab animals kept for research be handled in a humane manner has substituted that to “no discomfort,” and threatened to shut them down because they say the sheep, cattle and horses must always have shelter and shade. They’ve extended the deadline twice and if they don’t provide this shelter, they could be shut down. They’ve started construction of a huge shelter, but one of their marketing advantages has been how healthy these animals are that are kept on the range. Montana’s congressional delegation has been contacted and Rep. Rehberg has responded, but can’t do much for them. They are hopeful that Sen. Baucus will help change legislation and Jim Peterson is helping. Quad Five employs 13 people.

• Buffalo in Montana: Diane said she met a man at MACD that is working with FWP to find a spot in Montana for wild, huntable buffalo herds – 75-100 to start. The obvious problems to ranchers are the disease, fences, etc.

• Bill Thomas Interested in Serving:  Cody said Bill Thomas is interested in being on RC&D board and will be serving on the SMDC Board of Directors for Judith Basin County. Monty said any jurisdiction in Judith Basin County can appoint him. Cody will contact him and ask that the Town of Hobson appoint him.
Adjournment and Next meeting: The next meeting will be Feb. 17 at 10 a.m. in the SMDC Conference Room in Lewistown. With no other business the meeting was adjourned.

Minutes prepared and respectfully submitted by:
Carrie Mantooth, Central Montana RC&D Assistant Coordinator

Central Montana Resources Conservation & Development
 Board of Directors Meeting
Wednesday, August 19, 2009, 10 a.m.
SMDC Conference Room, Lewistown

In Attendance: Edgar Lewis, Chairman; Dick Ellestad, Vice Chairman; Larry Lekse, Gary Thomas, Ken Minnie, Ken Ronish, Richard Moe, Harry Peck, Douglas Hitch, Cody McDonald, Carol Ann Schaeffer, Ralph Corbett; Monty Sealey, Central Montana RC&D Coordinator; Carrie Mantooth, Central Montana RC&D Assistant Coordinator; and David Murray, Lewistown News-Argus.

Call to Order: Chairman Edgar Lewis called the meeting to order and welcomed everyone to the meeting.

Approval of June 17, 2009 minutes: The minutes of the June 17, 2009 meeting were mailed to board members prior to the meeting and approved unanimously following a motion by Ken Ronish, seconded by Dick Ellestad.

Treasurer’s Report: Treasurer Diane Ahlgren was unable to attend the meeting, but sent her report that the two CDs with will mature Aug. 29. One has a balance of $36,640.77 and the other $15,885.57. Rolling them over for a year will earn 1.77 percent interest; and 1.51 percent for six months. The checking balance is $6,471.41. Monty said a check and deposit had been since then, so he has checking balance of $8,280.74. Savings account balance is $11,288.48. Ken M. made a motion seconded and Ken R. and unanimously approved to roll over the CDs another six months.

Bills were presented for payment including $130.34 to Kristen Mantooth, $45 to Taxes and Things, $250 to Northwest Regional Area RC&D for Central Montana RC&D’s share of a booth at the National RC&D Conference in Albuquerque, $130 to Westwind Web Solutions for domain name renewal and web work; and $4,810.23 to SMDC for reimbursement for Carrie’s time and expenses (reimbursed by DNRC) and other expenses. Monty noted that the contract from DNRC for Carrie is $17,000 per year and the funds were expended in May, but can be picked up out of the RC&D account. The remaining balance following payment of these bills is $2,915.17. Carol made a motion, seconded by Larry and unanimously approved to pay the bills.

Gary made a motion, seconded by Larry and unanimously approved to accept the treasurer’s report.

Audit Engagement letter: Ken M. made a motion, seconded by Ken R. and unanimously approved to sign the audit engagement letter for Loren Randall.

Announcements:
- Small Wood Newsletter is available online at www.smallwoodnews.com and by list serve. It includes information on wood biomass and forestry issues, etc. Discussion continued about previous local efforts for using woody biomass for cogeneration and maybe revisiting the issue as there seems to be much more interest in seeing this happen now.
- Missouri River Ecosystem Restoration Plan: The Corp of Engineers and U.S. FWS are working on this plan to be completed by 2016, but comments are due by Dec. 1, 2009. The group discussed the need for organizations like RC&D to respond and how the Musselshell Watershed Resource Plan is important for just this sort of issue as it gives local governments a voice and seat at the table in developing these federal plans.
- Equipment Photo: Monty showed the board a picture he took of a shovel off a coal excavator drag line that was being transported through Roundup. The shovel weighs 130,000 lbs., is 19-feet wide and 17-feet tall!
- Beehive Insurance Coverage options: A letter from Beehive (the board’s errors and omissions insurance carrier) outlining other insurance options.
- Senate Bill 290: This will be important to watch this bill as the Energy and Telecommunications Interim Committee will revise the current state energy policy.
- Renewable Energy Systems for Building Professionals conference will be in Helena Sept. 17.
- Montana Water Law Conference is Sept. 30 in Helena.
- Governor’s Range Tour will be Sept. 17-18 in Harlowton.
- Montana Rural Water Systems magazine was passed around. Central Montana Regional Water Authority is a member.
- Members’ Choice for Non-Profits gives office supplies, etc. to organizations. Membership is $59. This could be something for youth organizations and other non-profits to look into.
- Northern Plains Initiative Conference is in Billings Oct. 8-9.
- National Association of Conservation Districts had a good article on establishing and maintaining relationships with lawmakers.
- Rural Community Assistance Partnership has a newsletter, “Rural Matters,” that deals entirely with regional water projects.

Project Status:
 Central Montana Regional Water Authority: CMRWA is negotiating with two landowners to reach agreements on production well sites. Monty said this is going well. Discussion continued about how having a water right for a production well will restrict the use of that water – for example, if it’s a municipal water right, the water couldn’t be used for agricultural uses like irrigation or commercial livestock. CMRWA continues to wait for the Bureau of Reclamation Rural Water Supply Act of 2006 rules to be completed. They were to be finished in February or March of this year, and the delay has put CMRWA behind schedule. CMRWA was hoping to request authorization this fall, but will have to wait another year in order to get their appraisal approved by Reclamation (it was submitted nearly two years ago), and finish the feasibility.
 Heritage Center Study: Carrie and Kristen met with Alan Evans in July about Alan’s plans for the Roundup Heritage Museum and Western History College on his property south of Roundup. Alan is nearly finished with a book about the history of the area. RC&D will help with a planning grant request for feasibility for both the museum and college and contact the university system to gauge interest in a Western History College in Roundup.
 ATechBuilder: Monty visited with its president Rick Downs earlier this week and they have sold another house. The company is struggling. They’ve listed their Malta facility and Roundup property for sale. They’ve delivered four houses, have another almost finished and a spec house closed in. Discussion continued about the lack of housing in Roundup and a request to the Roundup City Council about financing Special Improvement Districts.
 Musselshell Watershed Resource Plan: Kristen and Carrie met with Golden Valley and Wheatland Commissioners in July to gather information. Richard said their committee will meet again sometime in September. Monty was contacted by Wally Congdon who has been very involved in resource planning. Wally wrote an outline for steps in developing the plan and suggested the five-county group hire a graduate student for the work. Discussion continued about the intent of a plan, which is to give county government a voice in federal and state planning efforts. Central Montana RC&D committed $5,000 for this effort and may commit more funds if needed, as the board agreed it is important that local areas have legal standing.
 Signal Peak Energy coal mine: Larry said the mine fired up the new wash plant last week and are fine-tuning it now, and it will handle 5,000 tons of coal per hour. The new railroad spur dedication is Sept. 2. Work is continuing in preparation for the longwall miner, which is 1,500-feet wide. The mine has reached 200 employees. In addition, Carpenter Creek Mining is proposing a mine at Melstone and may supply coal to Signal Peak Energy or for a gasification plant. Discussion continued about how quickly Signal Peak has accomplished its goals and construction techniques of the railroad.
 Harlowton Headgate Project: Monty said he is still getting mixed signals about this project and where the two headgates in need of repair are located. He will continue to seek answers and work on the project.
 Lower Musselshell Off-Stream Storage Project: Diane had sent a report that they’ve hired an engineer to look at their new site, a few miles away from the original site. The engineers (WWE Engineering of Helena) dug a few preliminary holes with a backhoe for soil sampling and a letter of intent was sent to the landowner. Monty said they were turned down on a planning grant request to DNRC, so their problem is lack of funding. He will attend their September meeting and help with a request to DNRC.

Other Project Requests: None were made, but Doug Hitch asked about the grant searching program that RC&D and SMDC purchased last year. Both organizations will help with searches and can be contacted for more information.

Other Business:
- Healthcare Reform: The board discussed President Obama’s health care reform and how it has the potential to financially ruin rural hospitals by decreasing Medicare and Medicaid reimbursements. Discussion continued about the need for healthcare facilities in these areas and the importance of going on record in opposition to any health care reform that would cut reimbursements to these struggling facilities. In addition, hosptials are one of the largest employers in these rural towns so loss of thm would be a huge blow to the economy. The group felt that the ramifications to rural areas aren’t even being considered in the debate. The board asked for a letter or email template and will circulate it to individuals and organizations that would be affected. Central Montana RC&D Board Chairman Edgar Lewis will work with staff on a newspaper column. Faxes and emails to Congressional staffers in Montana and Washington, D.C. are the most effective. Gary made a motion to go on record in opposition to any Healthcare Reform Legislation that would be detrimental to rural hospitals, seconded by Ken R. and unanimously approved.
- Woody Biomass Energy: Monty showed the group a “Woody Biomass Guide and Tool Kit” on CD published by National Association of Conservation Districts. Those interested in obtaining copies can contact him. More discussion followed on the potential of woody biomass for co-generation projects, including as a stabilizer for the wind energy farm in Wheatland County. Using construction waste, woodwaste from fuel mitigation projects, etc. were options discussed. Monty will check into what a feasibility study would cost and sources of funding.

Next Meeting: With no other business, the meeting was adjourned. The next meeting will be Wed., Oct. 21 at 10 a.m. in the SMDC Conference Room, Lewistown.

Minutes prepared and respectfully submitted by:
Carrie Mantooth, Central Montana RC&D Assistant Coordinator

Central Montana Resources Conservation & Development
 Board of Directors Meeting
Wednesday, June 17, 2009, 10 a.m.
SMDC Conference Room, Lewistown

In Attendance: Edgar Lewis, Chairman; Dick Ellestad, Vice Chairman; Larry Lekse, Gary Thomas, Ken Minnie, Ken Ronish, Doug Hitch, Carol Ann Schaeffer, Ralph Corbett; Monty Sealey, Central Montana RC&D Coordinator; and Carrie Mantooth, Central Montana RC&D Assistant Coordinator; David Murray, Lewistown News-Argus.

Call to Order: Chairman Edgar Lewis called the meeting to order and welcomed everyone to the meeting. David Murray of the Lewistown News-Argus was introduced to the group and noted that reporter Jim Dullenty has retired.

Approval of April 15, 2009 minutes: The minutes of the April 15, 2009 meeting were mailed to board members prior to the meeting and approved unanimously following a motion by Ken Ronish, seconded by Dick Ellestad.

Treasurer’s Report: Treasurer Diane Ahlgren was unable to attend the meeting, but sent a report of a checking balance of $4,263.90. Savings and CD balances are unchanged from the April 15 report except for a very small interest earned. Savings, $11,272.44; CDs, $32,565.07 and $15,377.62.

Monty said checks written include $332.93 to new part-time Central Montana RC&D help in Roundup; $5,288.90 to SMDC for several months for assistant coordinator Carrie Mantooth’s time, expenses and benefits and rent to SMDC. Several deposits have also been made, so Monty said the checking balance is $10,649.03. Ken M. made a motion to accept the treasurer’s report, seconded by Ken R. and unanimously approved.

Bills paid since the last meeting include: SMDC, $4,458.41; CCCS for six months of homebuyer education classes, $900; National Association of RC&D Councils, $450 for dues; Diane Ahlgren, travel claim of $70.70; Beehive Insurance, $890 for insurance. Dick made a motion to approve these bills, seconded by Gary and unanimously approved.

Monty reminded the group that he has been without an office assistant for three years, which was discussed at the last meeting. He has since hired Kristen Mantooth to work two days each week. This is an internship for Kristen, who is a communications major at MSU-Billings. She will work on a variety of projects, including the Musselshell Drainage Resource Plan (discussed later in the meeting). Her wages are reimbursed fully through a grant to RC&D from NRCS.

New bills presented for payment include: Lewistown News-Argus for homebuyer education ad, $77.50; National Association of Conservation Districts annual dues, $300; Montana State Fund, $405.23 and $393.07; SMDC, reimbursement for Carrie’s wages and benefits for June, and office rent for conference room, $2,039.05; and Loren Randall, CPA, $450 for 2008 tax return and $2,850 for audit. Ken R. made a motion to pay these bills, seconded by Ken M. and unanimously approved.

Event and Grant Announcements:
- New RC&D Directory: Monty distributed a new directory that includes contact information for RC&Ds across the country.
- Clean Water Act Center information: The deadline for comment closed June 10, but Monty showed the group the Clean Water Act Center information on the Montana Department of Environmental Quality website at: http://cwaic.mt.gov/ The site deals with how rivers and streams are classified and Monty noted that 80 percent of Montana waters are required to have a usage plan.
- Fuel Value Calculator: Forest Service has a fuel value calculator that compares the cost per btu of different fuels. Monty had a sample he distributed.

2008 Audit: Monty presented copies of the audit to the group and said Loren Randall, CPA, is available to do an exit interview if the group desires. Monty said two issues were written up including controlled efficiency of management and employees, noting deficiencies in internal controls, and using cash basis accounting rather than accrual. Monty explained on the first topic that those controls are in place as the board’s treasurer Diane Ahlgren gets the bank statements directly, and two signatures are required and Monty can’t sign checks. He said it would be simple to go to accrual basis, as Loren recommended. The board felt that as there were so significant finding, there was no need to have Loren do an exit interview. Ken R. made a motion to approve the audit, seconded by Gary and unanimously approved.

Montana Coal Board Funding Report: Monty reported that overall the Coal Board funding for Signal Peak Energy coal mine-related impacts went well. All requests made by Musselshell County for short-term staffing, Fattig Creek Road improvements, ambulance, equipment and a planning grant for Musselshell water system were approved; as well as requests from Roundup School for a capital improvements plan update and purchase/renovation of property. However, Roundup’s request for housing infrastructure and stormwater main trunkline were both denied.

Monty explained that the Legislature doubled funding for the Coal Board from the coal severance tax. Monty took vacation time and paid for his own expenses to make trips to Helena to testify in favor of the increase, as he was told he could not do so on behalf of Central Montana RC&D. Larry thanked Monty and others for those efforts in getting that passed. It was noted there is no representation from Musselshell County on the board anymore.

Discussion continued at length by Monty and Gary about the board’s decision to reject the City of Roundup’s housing infrastructure and stormwater main requests. Both felt that someone had contacted someone on the Coal Board prior to the meeting to oppose the housing request. Monty explained that his father used to own the lots that Roundup wants to develop, but his family has no ties to these lots and there would be no financial gain from this development. No one from the Coal Board contacted Monty (who prepared the application for the City of Roundup) to express their concerns about the project which he said is standard practice, so Monty had no advance notice before appearing before the board. He felt that they linked the housing and stormwater project, while they were totally separate requests.

Project Status Reports:
- Regional Water Project: There was a meeting last week in Roundup and Monty reported that the Central Montana Regional Water Authority board has a dilemma about how to proceed. They have been told by Montana’s Congressional delegation and staffers that they need to get authorized, then ask for a federal appropriation. Part of that checklist for authorization is going through the Bureau of Reclamation, but the group has been waiting for the rules to be finalized on the Rural Water Supply Act of 2006. Regional water projects have been told that the Bureau won’t support their requests if they don’t go through its process. Monty said that both Senators Baucus and Tester have said they won’t support projects that aren’t authorized. However, Dry Red Water (a new project in the Circle/Jordan area using water from Ft. Peck) are not going through the Bureau of Reclamation and are asking for authorization right now. St. Mary’s and another project on a reservation are also moving forward, even though their projects started long after CMRWA. Discussion continued on the mixed signals coming from Congressional staff. CMRWA members decided to contact Montana’s Congressional delegation and request specific direction as to how to proceed.

CMRWA is negotiating with landowners in the Garneill area on drilling another well. The Utica well would still be part of the regional water system, but engineers believe the other site would be the best alternative for several production wells. Locating the well field there would cut the project costs down significantly. Monty said communities involved in the regional project are still on-board. CMRWA will also work with communities to get water distribution systems in place in order to be ready to hook-up to the regional system. (Hobson and Lavina don’t have water distribution systems.)

- Mosby Off-Stream Storage Project:  Diane Ahlgren reported through an email that the Mosby Musselshell Watershed Group is moving forward and received another Irrigation Development Grant from DNRC to do a feasibility on the Horse Creek site and have put out a Request for Proposal for an engineer to do that work.

- Signal Peak Energy-Coal Development: Larry said the rail spur had a train on it the other day and they’ll be ready to begin shipping coal in July. They quit trucking coal a few months ago and have been stockpiling it to ship by rail. Work continues on the preparation plant. Wastewater is recycled and reused. The railroad overpass over Highway 87 has 31-foot clearance and is a National Defense Corridor. The one at Broadview isn’t as high, so oversized loads detour through Roundup.

Musselshell County Commissioners are also negotiating road agreements with Carpenter Creek, LLC, which has plans for coal development on Carpenter Creek.

- ATechBuilders RTM Homes: Monty reported that ATechBuilders delivered a house to Roundup last week, they have three others finished and are working on another. Edgar asked if Ken R.’s position on the ATechBuilders Board of Directors had ever been filled and it has not. Monty said he’s gone to a few of their meetings, but he doesn’t have a vote so Central Montana RC&D no longer has representation on that board.

- Roundup Housing Project: Discussion continued regarding the Coal Board unanimous vote against funding both the Roundup housing and the storm water request. Monty said the Coal Board had previously granted funds for water and sewer infrastructure into the same area as the stormwater main trunkline. The housing project would have funded water/sewer, curb, gutter and storm water collection. Monty explained that as the lots sold, funds would be recovered and eventually would have been used to for low to moderate income housing in Roundup through a HOME grant request. He said the Coal Board members said that recovering those funds would create a revolving loan fund in effect, and those funds would be out of control of the State of Montana and the Coal Board, so it was a Constitutional issue. Monty reiterated that he had no advance notice about their concerns. Monty said the Coal Board Chairman (John Williams of Colstrip) said that private development is the preferred method for this type of project, as was done in Colstrip. Monty said he agrees that would be wonderful, but there is no developer to do this in Roundup and the town remains in desperate need of quality housing. Monty said there is still a stigma that exists because his father used to own the lots. However, all the lots in question belong to ATechBuilders and to an individual in Billings.

Discussion continued about the Coal Board’s practice of funding projects not related to coal impacts.

- Heritage Center Study: Carrie contacted Alan Evans and will meet with him next week about his idea for a Western Heritage Center on his ranch south of Roundup. He is finishing a book and believes Roundup would be a good spot for a heritage center/museum, as there was a wealth of significant events in western history that occurred in the region. Ken Minnie said he felt the idea is a good one.

- Musselshell Watershed Resource Plan: Richard had talked about this last year and the Central Montana RC&D Board committed up to $5,000 for a development of a regional plan outlining the counties’ position on natural resources. The intent is to establish a plan outlining the opinion, culture, attitudes, etc. on natural resources in the Musselshell Watershed. Monty and Kristen Mantooth met with Golden Valley and Wheatland County Commissioners Leslie Burroughs and Richard Moe recently and they want to proceed. Kristen developed an action plan that outlines steps to compile information, communication with county officials, engaging citizens through public meetings and press, and developing the plan. Larry said that federal and state law gives counties a right to participate, so this plan will give them a voice.

- Harlowton Head Gate Replacement: Two head gates owned by the City of Harlowton need replacing. They are located at the golf course and the football field and are for flood control. Monty said he is hearing two different messages from NRCS staff – one group says they need to be replaced and the other saying maybe they don’t need to be replaced. Estimated cost is $50,000. He and Carrie will continue to pursue getting an answer and potential funding sources.

2009-10 Plan of Work: The Plan of Work was mailed out prior to the meeting and the board went through each goal and objective. Dick expressed his concern that the federal government is trying to curtail all energy development in eastern Montana. Discussion under the energy development section also related to transmission of power out of the state. The board is concerned that by selling power to states like California, who are willing to pay higher power costs because of the extreme need, it will drive up prices for Montana consumers. Ken M. talked about the dire need for water and housing in Roundup – these are issues he hears repeatedly in his real estate business. Under the regional economy section, Ken R. was asked about the improvements on Highway 236 from Winifred to Big Sandy and he said that project is still moving forward and looks better all the time. The following addition was made to the draft:
- Under Goal VI, Objective 1, add action to: Assist emergency services organizations in seeking funding for upgrading equipment.
The Plan of Work was unanimously approved following a motion by Larry, seconded by Gary.

Other Business/Projects: None

Next Meeting Date & Adjournment: The next meeting will be Wed., Aug. 19 at 10 a.m. in the SMDC Conference Room, Lewistown. With no other business, the meeting was adjourned.

Minutes prepared and respectfully submitted by:
Carrie Mantooth, Central Montana RC&D Assistant Coordinator

Central Montana Resources Conservation & Development
 Board of Directors Meeting
Wednesday, April 15, 2009, 10 a.m.
SMDC Conference Room, Lewistown

In Attendance: Dick Ellestad, Vice Chairman; Diane Ahlgren, secretary/treasurer; Ken Minnie, Ken Ronish, Cody McDonald, Richard Moe; Monty Sealey, Central Montana RC&D Coordinator; and Carrie Mantooth, Central Montana RC&D Assistant Coordinator.

Call to Order: Vice Chairman Dick Ellestad called the meeting to order in the absence of Chairman Edgar Lewis. It was noted that the board was one member short of a quorum so no official action was taken.

Approval of February 18, 2009 minutes: The minutes of the Feb. 18, 2009 meeting were mailed to board members prior to the meeting and no corrections were noted.

Treasurer’s Report & Current Bills: Diane Ahlgren reported that as of Feb. 18 the checking account balance was $6,667.45; and the savings balance was $11,272.44 (not including the small amount of current interest.) The balances of the CDs are $32,565.07 and $15,377.62, both with a maturity date of Sept. 12, 2009.

Bills presented included a travel claim for $70.70 from Diane; National Association of RC&D Councils dues for 2009 for $450; Beehive Insurance errors and omissions coverage for $890; CCCS of Montana for $900 for six homebuyer education classes, January-June; and invoices from SMDC for March and April, $2,193.77 and $2,264.64, respectively (reimbursable from DNRC for Carrie’s RC&D time.) Monty said the Beehive Insurance includes $1 million in employee practices liability, as well as the directors and officers liability. The bills presented are to be paid now, but will be put on the agenda for the next meeting.

Monty said Central Montana RC&D receives a grant from NRCS each year to cover administrative expenses. He hasn’t had help for about three years, but said he needs to find a part-time person for clerical and computer work, and possibly some other duties if they are capable. He and Ken M. said the Roundup Chamber and community foundation are also talking about an employee for a job share position.

Announcements: Monty presented the following announcements;
- Business Professional of America (BPA) members from Lavina School are looking for work; including lawn and garden, cleaning, office, etc.
- National Association of RC&D Councils newsletter was distributed.
- The National RC&D conference June 15-17 in Albuquerque, N.M., and if a board member wants to go, Monty would go with them.
- Forest Service has a fuel value calculator that compares the cost per btu of different fuels. Monty had a sample and will try to get some more.
- Action Southwest of Saskatchewan is conducting a study impacting Montana Ports of Entry, public facilities and our communities. A similar effort, Impact of Increased Canadian Economic Development on Northern Montana Highways, is being undertaken in Montana by the Montana Department of Transportation. Monty explained they are working on getting more 24-hour border crossing for trades, which would positively impact the economy. More information is on the Canadian group’s website at www.actionsouthwest.com

New Policy Draft(s) Approval: Monty distributed drafts of three policies, but since there was no quorum, no action was taken. The policies include: Document Retention and Destruction; Conflict of Interest; and Whistleblower policies. The auditor said RC&D needs to have these in place and they will be on the agenda at the next meeting.

Project Status:
- Homebuyer Education-Counseling: Carrie reported that a class held earlier in the week had six graduates, but the January and March classes were cancelled due to few registrations combined with poor weather. She felt the gloom and doom about the economy early in the year caused some potential homebuyers to just wait. However, a first-time homebuyer tax credit of $8,000 is spurring interest. Demand for one-on-one counseling has also slowed down. The real estate market in Lewistown slowed considerably since last summer. Carrie said a local appraiser also reported about a 2 percent decrease per month since last summer in home values.

- Lower Musselshell Off-Stream Storage: Diane said the Mosby Musselshell Watershed Group (MMWG) was being advised by an attorney to form as a for-profit organization, but that’s not the route they want to take. They want to become a legal entity, but not an irrigation district, and are looking at switching to an attorney that understands their vision. Monty said state DNRC staff can help them. He added that there is confusion about being a non-profit under IRS, but explained that an organization doesn’t have to be a 501(c)3 to be a non-profit. The group filed as an S-Corporation, but needs to refile as a not-for-profit organization. RC&D can sponsor them until they get their own status, which takes about six months. They didn’t get the DNRC Renewable Resources grant they applied for, but think they’ll receive a DNRC irrigation development planning grant. Some of the watershed groups in the area have been meeting informally. Diane said their watershed coordinator Cal Frank has attended and one of their goals is to get an overall picture of the larger watershed and on Total Maximum Daily Loads.

Ready-To-Move (RTM) Homes: Monty received notice that there will be an ATechBuilder Corporation board meeting in Billings next week, and they’ll find out if they’ll be able to borrow funds from a funder in Los Angeles that would finance the building of 20-30 homes. There will also be some discussion about an employee issue, but Monty wasn’t aware of any details. Monty said that this financing package is somewhat of a last effort for this project to succeed. Ken Minnie noted that these types of lenders can be somewhat predatory, and the recipient may be forced to give up control while the funder calls the shots. Monty is not a voting member of the ATechBuilder Corp. board and Central Montana RC&D has never replaced Ken Ronish’s position on that board. Monty said he met with the potential funders when they were in Billings. If ATech gets the funding, they plan to refund money to its investors. Discussion continued that there is a market for RTM homes, but the project has had a difficult time just getting into production.

Roundup Housing Project: Roundup officials and Central Montana RC&D are working on a plan to acquire land and develop lots to sell on the northeast corner of town. Monty explained that ATechBuilders acquired three blocks in exchange for stock with its company. ATech had planned to locate a production facility there. The Roundup School District owns another two blocks. Monty said ATech may be interested in selling two blocks. The City of Roundup is taking a request to the Montana Coal Board for infrastructure development, including water/sewer, streets, power, etc. Monty said the site would be ideal for RTM homes, but that may or may not happen. With the Signal Peak Energy coal mine activity and hiring of so many workers, the time is right to take this request to the Coal Board. Other grants for housing are geared for low and moderate income, but there is a need for housing is a higher income bracket. The mine is recruiting high wage earners and Roundup doesn’t have housing for them right now. The plan is to take the proceeds from the lot sales and reinvest into doing the next block, etc., and when completed, put the proceeds into a low to moderate housing project. A housing plan was completed a few years ago that supports the need. The Coal Board meets in June and if awarded these funds, the work could be completed this building season.

Signal Peak Energy Coal Mine: The mine is beginning to recruit experienced miners from other areas. Ken M. explained that job fairs were held early on in Roundup and the mine hired local workers first. This didn’t create a housing crunch then, but now that they are bringing workers in, unless Roundup has something to offer, those workers will live in Billings. Ken is a Realtor and he said he is currently working with four miners from out of state who would rather live in a small town, but they won’t come if there is nothing to offer them as far as housing. The mine now has 140 permanent workers and intends to hire about 60 more. They also have temporary construction people working on the rail spur project, which is due to be completed July 1. Wages for miners average about $18/hour starting wage, then boosted to about $23/hour, with some of the more skilled workers earning far more. Maple Energy of Peru had a delegation in Roundup recently and they stopped at the county commissioners office to discuss mining in the eastern edge of Musselshell County. Signal Peak Energy also plans to core drill two veins below the existing vein, so this mine will be around for a long time.

Regional Water Project: Monty continues to hear from people that Roundup would be a good place to live if it had decent housing and water – and Central Montana RC&D is addressing both issues. The Central Montana Regional Water Authority (CMRWA) is exploring well site alternatives at four sites and is negotiating with two landowners about drilling. They are still waiting for the finalized 2006 Rural Water Supply Act rules and have had its appraisal report in the Bureau of Reclamation office for a year and a half. The group will apply to Reclamation to continue the feasibility study, which is entering Phase II now. This is the process Reclamation requires for them to support a project for federal authorization, although not every project plays by these rules. Monty said CMRWA is still close to its original schedule and is included in the Montana DNRC Appropriation for the next bieunnium.

Harlowton Irrigation: Monty went to an Upper Musselshell Conservation District meeting and they said they’d sponsor a HB-223 grant application to fix the spillway gates in Harlowton. RC&D needs to gather more information about the problem first.

New Project Requests:
Anaerobic Digester Systems: A request has been received from Kadrmas, Lee and Jackson of Billings requesting that Central Montana RC&D sponsor two anaerobic digester system grant requests, including Duncan Ranch Colony and Surprise Creek Colony. The requests will be to USDA for feasibility studies costing $19,000 each. Richard said he struggles with the applicants, as they are corporate agriculture asking for help to do what they have the means to pay for themselves, and they don’t provide jobs for the community. Discussion continued that even though that is true, they came to us with a completed application asking only for a sponsorship that won’t involve staff time. Ag operations are facing more regulations to do something with waste and this project addresses that. Ken R. made a motion to approve RC&D sponsoring these applications and calling the rest of the regular board members for their vote. Cody seconded the motion. All members presented voted to approve this motion, and Richard voted in opposition. Monty will call the other members and bring the results to the next board meeting to approve the vote again.

Regional Heritage Center: Alan Evans of Roundup has requested Central Montana RC&D’s assistance with his idea to locate a frontier heritage center in Roundup. He is writing a book on the history of the area and how it fits into Montana history. His vision is for a world class museum coupled with a Western History College. Discussion continued about Carrie doing a search for funding of feasibilities for the project. As there was no quorum, the request will be put on the agenda for the next meeting.

Plan of Work: Monty distributed a draft plan of work, along with the 2007-2011 action plan. The current plan of work needs to be adopted by the board, so they were asked to read it carefully and bring suggestions back to the next board meeting. A goal related to tourism needs to be added. Monty reminded the group that the Council’s work priorities and projects need to be reflected in the current year’s plan. Discussion about it will be held at the June meeting. The five-year action plan is a broader approach that was included in the area plan. Carrie explained that every project is linked back to the action plan on the NRCS reporting system, POINTS.

Other: Dick asked about the nuclear power plant idea that Edgar had introduced several meetings ago. Monty said water availability is the big issue. Cody asked about how the Roundup School is handling the influx of population due to the mine. The high school and junior high haven’t seen a lot of new students, but the elementary is struggling with the impacts. They are up 35 students from three years ago and there are more special needs now, so the school is applying to the Coal Board for help. They are also considering a shortened week. Ken M. said there are more people coming in with younger children, so that increased school population will eventually reach the junior high and high school.

Next Meeting: The next meeting is set for Wed., June 17, 2009. The board would like to hold the meeting in Roundup and get a tour of Signal Peak Mine. Monty will check into it. With no other business, the meeting was adjourned.

Minutes prepared and respectfully submitted by
Carrie Mantooth, Central Montana RC&D Assistant Coordinator

Central Montana Resources Conservation & Development
Board of Directors Meeting
Wednesday, February 18, 2009, 10 a.m.
SMDC Conference Room, Lewistown

In Attendance: Edgar Lewis, chairman; Dick Ellestad, vice chairman; Diane Ahlgren, secretary/treasurer; Ken Ronish, Larry Lekse, Gary Thomas, Richard Moe, Ralph Peck, Ralph Corbett, Douglas Hitch; Monty Sealey, Central Montana RC&D coordinator; and Carrie Mantooth, Central Montana RC&D assistant coordinator; Kathie Bailey, Snowy Mountain Development Corporation Executive Director; and Jim Dullenty, Lewistown News-Argus.

Call to Order: Chairman Edgar Lewis called the meeting to order and welcomed everyone to the meeting.

Approval of Oct. 22, 2008 minutes: Ken Ronish made a motion to approve the October 22, 2008 minutes as mailed prior to the meeting, seconded by Dick Ellestad and unanimously approved.

Treasurer’s Report: Diane Ahlgren reported a checking balance of $15,960.46 and a savings balance of $3,272.44 as of Feb. 2, 2009. CD balances are $32,565.07 and $15,377.62. Both have a maturity date of Sept. 12, 2009 and an interest rate of 3.25 percent. Ken made a motion to transfer $8,000 from checking to savings, seconded by Larry and unanimously approved. Monty said Central Montana RC&D has received an annual contract award of $10,000 from NRCS which will be paid quarterly for administrative expenses. Bills were presented including $8,423.55 from SMDC for October-January expenses for Carrie’s time, benefit and expenses for RC&D work (to be fully reimbursed by DNRC) and for shared rent of the conference room for homebuyer classes; Ken Ronish’s travel claim to a Montana RC&D Association meeting in Billings in October for travel and one meal totaling $220.61; Ballyhoo Printing for printing and lamination for a CMRWA presentation; Judith Basin Press one-year subscription, $40; Consumer Credit Counseling Services for three homebuyer classes; Westwind Design for web hosting and domain registration; Western RC&D Association dues of $200; and to Monty Sealey for reimbursement for filing the annual report online, $15. Larry made a motion, seconded by Gary and unanimously approved to pay the bills. Ken made a motion, seconded by Richard and unanimously approved to accept the treasurer’s report.

Audit Documents: Before the final audit report will be given to Central Montana RC&D, the auditors must have a signed management report that gives an explanation for any changes. Monty will have Edgar sign it and return to Loren Randall, CPA, and then the audit will be finalized.

Announcements:
- Rural Water Supply System Conference is in Great Falls this week, Feb. 18-20. Central Montana Regional Water Authority will have representatives there and has display space with Great West Engineering.
- Montana Board of Research and Commercialization Workshop schedule was distributed.
- Notification of annual report for RC&D will be filled out by Monty online.
- Mary Heller has moved to Washington, D.C. Formerly of Winifred, Mary was a field rep for Rep. Denny Rehberg, but is now in the D.C. office.
- Oilseed and Biodiesel Production Workshop sponsor. Central Montana RC&D was one of the co-sponsors and Monty passed on a thank you.
- Planning for Infrastructure Improvements. Monty distributed a workshop schedule.
- Foundation Search Software: This new software purchased by SMDC and Central Montana RC&D is already paying for itself. Kathie said an SMDC contractor found several new private grant sources that we didn’t know existed. MSU Extension Agent for Musselshell/Golden Valley County John Pfister is using it to help Golden Valley find resources for a new fire hall. This services is available to communities in the six-county area and SMDC and RC&D can be contacted for more information.
- Central Montana RC&D and CMRWA newsletters: Monty thanked Carrie for the good job on the RC&D and CMRWA newsletters.

New Policy Drafts: Monty distributed boiler-plate drafts for policies required to be in place including those regarding conflict of interest, whistleblower and document retention and destruction.  Board members are asked to review the samples and bring comments back to the next meeting when a vote will be taken.

Annual Plan of Work Update: Monty distributed a draft annual plan of work and asked board members to review it prior to the next meeting when a vote will be taken. Edgar talked about the switch from the Highwood coal-fired plant to gas, and asked if RC&D could look into using coal to gas for production of nitrogen fertlizer, rather than natural gas.

Project Status Reports:
- Homebuyer/Counseling: Carrie said class size has varied, but last week there were seven graduates. Demand has increased for one-on-one counseling for things like setting up a budget, reading credit reports, etc.; and she is doing some foreclosure prevention counseling. Other agencies outside of Central Montana where demand is great have asked for help, but Carrie said there isn’t enough time to get into a lot of foreclosure work and feels it should be limited to our area. NeighborWorks Montana reimburses RC&D per class, per graduate and per counseling session, as well as for entries made into the NStep database.

- Regional Water: There was a CMRWA meeting in Roundup on Feb. 11 in which the third part of the phase 1 feasibility study was presented. This phase is looking at potential alternative well field sites and five sites were considered, including the Utica test well site. Great West Engineering sub-contracted with Mark Cunnane of Western Groundwater Services for this phase and he recommended the Ubet site. Two separate landowners own the potential well field site and negotiations have begun. CMRWA will apply for stimulus dollars for a full production well – cost would be $1.2 million, and a $300,000 DNRC Reclamation and Development grant already awarded would bring that cost down. Projects funded by the stimulus need to be “shovel ready” so if negotiations with landowners prove unfruitful, the group will move to the next preferred site. This doesn’t mean the Utica test well site won’t be used. CMRWA will have to prove that they are in the best possible site for drilling. The studies have been paid for by a DNRC appropriation and another request is before the Montana Legislature for $298,000 for the next biennium. Kathie said she met with the principals of Signal Peak Energy last week and they talked about the needs of their staff and employees and good water was a priority. She said she was certain they would provide support letters for this project. Hobson is in dire need of a new water supply, Monty said. They don’t have a water distribution system and the wells of three restaurants were contaminated with nitrates and in danger of being shut-down by DEQ. Hobson and Lavina are starting the planning process for a water distribution system and Harlowton is assessing their distribution.

- Signal Peak Energy: The stringers across Highway 87 for the railroad overpass will be done next week and traffic detoured on Old Divide Road. The rail spur should be complete by July 1. Discussion followed on the lag time for the proceeds tax on coal. There has been lots of activity in Roundup, but Pamida has put its plans to build in Roundup on hold. The mine has hired many locals, but the pool of workers there is about exhausted so they are recruiting in Colorado where a mine was shut down.

- RTM Homes: ATechBuilder has five homes built in Malta and is finishing the exteriors. They are looking to extend financing and add to their inventory and are working with an investment bank in California. Monty said the bank sent a letter of intent to loan up to $5 million to use to build housing stock (20-30 homes). The letter was accepted and sent back and they are now in the due diligence phase. If they proceed, ATechBuilder plans to begin production in Roundup. Discussion followed about Signal Peak Energy’s needs for housing for its employees and how this project would help fulfill the demand.

- Lower Musselshell Off-Stream Storage Project: Diane reported that the Mosby-Musselshell Watershed Group is now a corporation. They applied for a DNRC Renewable Resources grant, but weren’t recommended for funding. They can’t reapply for two years. Monty said Central Montana RC&D can help address the areas where they didn’t score well and expressed regret the grant was completed by the watershed coordinator right before the deadline, so RC&D didn’t get to review it before it was sent in.

New Project Requests:
- Harlowton Irrigation: A letter of violation was sent to the Town of Harlowton by NRCS. Monty said NRCS asked RC&D to help them address the problem and request a HB-223 grant with Montana Conservation Districts. Richard made a motion to adopt the project, seconded by Ken and unanimously approved.

- Roundup Housing Project: Central Montana RC&D Board of Directors has already authorized staff to apply to the Montana Coal Board for grants related to the Bull Mountain coal mine. Monty said in order to address the need for housing, the Town of Roundup is working on a project to acquire two blocks on the northeast of Roundup and develop infrastructure on them. Since this is a coal-impact issue, a request for $500,000 will be made to the Coal Board for help developing the infrastructure. Monty said this is also compatible with the Roundup Housing Plan. He said they could put in Ready-To-Move modular homes and stick-builts. Kathie suggested they also look at the Montana Board of Investments infrastructure loan program, which hinges on job creation. Local governments are the applicants. Gary made a motion, seconded by Ken and unanimously approved to adopt the Roundup Housing Project as a Central Montana RC&D project.

Other Business:
- National Carbon Offset Coalition (NCOC): Dick has served as a board member for eight years and said he would like to step down and have someone else represent RC&D. He reported that NCOC is doing very well and currently has about 1 million ton to sell to the Chicago Climate Exchange and is waiting for a good price and expect to sell for about $3/ton. NCOC has a seven-member board, meets in person once each year and does telephone conferences the rest of the time. Monty emphasized that it’s important to keep the seat on the board as RC&D will receive funding through this association.

- Legislation on Wilderness and Endangered Species Act: The new administration is pushing for more stringent rules regarding Wilderness and the Endangered Species Act that are threatening the livelihoods of producers, oil and gas exploration, etc. Board members expressed the need to keep abreast of the issues.

Next Meeting: The next meeting is set for Wed., April 15, 2009 at 10 a.m. in the SMDC Conference Room, Lewistown. With no other business the meeting was adjourned.

Minutes prepared and respectfully submitted by:
Carrie Mantooth, Central Montana RC&D Assistant Coordinator