GARRISON DIVERSION CONSERVANCY DISTRICT BOARD OF …considered at the Executive Committee in June with a recommendation to the full board in July. Board Policy Review - - Chairman

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GARRISON DIVERSION CONSERVANCY DISTRICT

BOARD OF DIRECTORS

Garrison Diversion Conservancy District Carrington, North Dakota

April 5 & 6, 2018

A meeting of the Board of Directors of the Garrison Diversion Conservancy District was held at Garrison Diversion headquarters in Carrington, North Dakota, on April 5 and 6. The meeting was called to order by Chairman Royse at 1:30 p.m. on April 5. DIRECTORS PRESENT Ken Royse, Chairman Alan Walter, Vice Chairman Ken Vein, Second Vice Chairman (April 6 only) Director Dave Anderson Director Jay Anderson Director Rick Anderson Director Greg Bischoff Director Nikki Boote (April 5 only) Director Jeff Breker Director Richard Cayko Director Mark Cook Director Roger Fenstad (by conference phone) Director Norman Haak Director Cliff Hanretty Director David Johnson Director Geneva Kaiser Director Bruce Klein Director Kelly Klosterman Director Ward Koeser Director Bill Krivarchka Director Brandon Krueger Director Steve Metzger Director Nancy Marquart Director Bill Ongstad Director Jim Pellman Director John Peyerl Director Kenny Rogers Director Mike Tweed Secretary Duane DeKrey

DIRECTORS ABSENT None

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18-69 OTHERS Staff members of the Garrison Diversion Conservancy District were present along with others. The registration sheet is attached to these minutes as Annex I. The meeting was recorded to assist with compilation of the minutes. ANNOUNCEMENTS AND INTRODUCTIONS Chairman Royse called on guests in the audience to introduce themselves and identify whom they represent. READING OF THE MINUTES Motion by Director Krivarchka to dispense with a reading of the January 12, 2018, board minutes and approve them as distributed. Second by Director Koeser. Upon voice vote, motion carried. RESOLUTION OF CONDOLENCE Chairman Royse presented and read a resolution of condolence for George Sinner, former governor of North Dakota, who passed away on March 9. The resolution is attached to these minutes as Annex II. Motion by Director Klosterman to approve the resolution of condolence for George Sinner. Second by Director Metzger. Upon voice vote, motion carried. OFFICER AND COMMITTEE REPORTS Chairman - - Chairman Royse summarized the topics covered at the March 8, 2018, Executive Committee meeting. He also provided a report on the P3 Summit he attended this week in San Diego, focusing on delivery styles for construction projects. P3 refers to public, private partnership. Audit Confirmation Letter Cindy Hewitt, Accounting Specialist, Garrison Diversion, referred to the audit confirmation letter. This explains EideBailly’s responsibilities in regard to the audit and is provided for the board’s information. The auditors were in the office March 20-22 to conduct the audit on Garrison Diversion’s 2017 financial statements. Financial Statements Ms. Hewitt referred to and reviewed the Garrison Diversion financial statements for the period of January 1, 2018, through February 28, 2018. Copies of the financial statements are attached to these minutes as Annex III. Revenues through February 28 are broken out as follows: General Fund $2,288,806; Operations and Maintenance $815,584; MR&I $588,854; Red River Valley Water Supply Project $1,213,038 and Irrigation Fund $92,797.

18-70 Expenditures were: General Fund $365,820; Operations and Maintenance $740,151; MR&I $588,852; Red River Valley Water Supply Project $878,948 and Irrigation $5,586.

Income through February 28 is $4,972,640 with expenditures of $2,579,357. Garrison Diversion reserve accounts total $6,110,249. Deposits in Bremer Bank are $5,922,106, Bank of North Dakota is $10,427,413 and Farm Credit Services $1,000. Motion by Director Ongstad to accept the financial statements for the period of January 1, 2018, through February 28, 2018. Second by Director Cayko. Upon roll call vote, the following directors voted aye: Upon roll call vote, the following directors voted aye: D. Anderson, J. Anderson, R. Anderson, Bischoff, Boote, Breker, Cayko, Cook, Fenstad, Haak, Hanretty, Johnson, Kaiser, Klein, Klosterman, Koeser, Krivarchka, Krueger, Marquart, Metzger, Ongstad, Pellman, Peyerl, Rogers, Royse, Tweed and Walter. Those voting nay: none. Absent and not voting: Vein. Motion carried. 2017 Final Budget Revisions Ms. Hewitt referred to and reviewed the 2017 Final Budget Revisions, a copy which is attached to these minutes as Annex IV. Motion by Director Tweed to approve the final 2017 budget revisions as follows:

Income: General Fund Total $4,337,535 O&M Total $8,030,571 MR&I Total $6,674,777 RRVWSP Total $8,125,379 Irrigation Total $ 776,427

Expenses:

General Fund Directors Expense Directors Per Diem, increase of $5,005 Directors Exp, decrease of $1,391 Employee Expense Employee Salaries, decrease of $3,614

Benefits Retirement, increase of $3,538 Hospital & Life Insurance, decrease of $3,538

Administration Miscellaneous, increase of $1,474 Data Processing, decrease of $1,474

Public Education NWRA Presidency – Dave Koland, increase of $70 Conferences/Sponsorships, decrease of $70

Professional Services Odney, increase of $2,856

18-71 Black & Veatch, decrease of $5,382 Will & Carlson, increase of $2,526 Maintenance & Repair Equipment Maintenance, increase of $2,561 Land & Bldg Maintenance, decrease of $2,561 Irrigation Fund McClusky Canal Irrigation Operations, decrease of $169,876 Debt Payments Principal, increase of $110,900 Interest, increase of $58,976 GDU O&M Fund Supplies, decrease of $11,482 Equipment Purchases, decrease of $14,508 Small Equipment Purchases, increase of $14,508 Equipment Maintenance, increase of $11,205 Miscellaneous, increase of $277 MR&I Fund Indirect Cost, increase of $23,615 Salaries & Benefits, increase of $91,318 State Administration, decrease of $114,933 RRVWSP Fund Salaries & Benefits, increase of $143,376 Financing/Legal/Admin, decrease of $163,771 Indirect Costs, increase of $20,395

Second by Director Breker. Upon roll call vote, the following directors voted aye: D. Anderson, J. Anderson, R. Anderson, Bischoff, Boote, Breker, Cayko, Cook, Fenstad, Haak, Hanretty, Johnson, Kaiser, Klein, Klosterman, Koeser, Krivarchka, Krueger, Marquart, Metzger, Ongstad, Pellman, Peyerl, Rogers, Royse, Tweed and Walter. Those voting nay: none. Absent and not voting: Vein. Motion carried. Budget Timeline - - Ms. Hewitt referred to the Budget Timeline used for budget preparation. This is provided for the board’s reference. 2019 Preliminary Budget Ms. Hewitt referred to Version 1 of Garrison Diversion’s 2019 Preliminary Budget, stating that this is provided for the board’s information. The total anticipated revenue for 2019 is $47,425,700 with total expenses of $46,490,235. It will be thoroughly reviewed and considered at the Executive Committee in June with a recommendation to the full board in July. Board Policy Review - - Chairman Royse reported that the officers, Secretary DeKrey and Merri Mooridian met recently to review chapters one and two of the Garrison Diversion board policies. Revisions are currently being made to those chapters. Another meeting will be planned with the officers to review chapter three.

18-72 It was the consensus of the committee to continue with the review of all chapters of the board policies with the officers. Once a full review has taken place and all revisions are made, the revisions will be presented to the full board for approval. Vice Chairman - - Vice Chairman Walter, who chairs the Contract Review Committee, said that the committee last met on January 19. Legal counsel is researching and preparing additional information that was requested by the committee regarding liability issues. Once that information is compiled, the committee will meet to discuss the results. The committee should then be able to present its findings to the board, and the contract review process should be complete. Vice Chairman Walter also reported on the Family Farm Alliance’s annual meeting he recently attended in Reno. Trip Reports - - Directors D. Anderson, Haak and Tweed reported on the Family Farm Alliance’s annual meeting they attended in February and the key issues they took away from the meeting. Public Relations Committee - - Director Marquart, Chairperson, Public Relations Committee, provided a summary from this morning’s committee meeting. At that time, the committee reviewed various Garrison Diversion communication activities and projects. Red River Valley Committee - - Director J. Anderson, who chairs the Red River Valley Committee reported on activities and meetings taking place in regard to the Red River Valley Water Supply Project (RRVWSP). MCCLUSKY CANAL UPDATE O&M Update Kip Kovar, District Engineer, gave an update on operation and maintenance (O&M) related issues, including a report on recent summer hires and other job openings. Pre-Slide Repair Construction Agreement Mr. Kovar said the Pre-Slide Repair Construction Agreement, which allows for the purchase of equipment and negotiations with landowners has been extended until September 30, 2018. Five-Year Slide Repair Agreement Mr. Kovar stated that the Five-Year Slide Repair Agreement was submitted to the Bureau of Reclamation (Reclamation) last year. They approved task one in the work plan and approximately $7 million of the $15 million budget. The other items have not yet been approved. This allows for the O&M crews to start moving dirt, but does not approve work on surface water drainage. Current Five-Year O&M Agreement Mr. Kovar reported that the current Five-Year O&M Agreement expired December 31, 2017. It has also been extended until September; however, no funding was added at that time.

18-73 This means that Garrison Diversion will need to transfer General Fund dollars into the O&M Fund to pay for expenses. Draft Five-Year O&M Agreement Mr. Kovar commented that the Draft Five-Year O&M Agreement has been submitted, and it is going through Reclamation’s review process.

Irrigation Update Irrigation Summary Mr. Kovar referred to and reviewed the table listing irrigation projects located along the McClusky Canal as well as the amount of acres irrigated and producer names for each project. There are currently a total of 7,241 irrigated acres. Another 4,500 acres are being irrigated at the Oakes Test Area (OTA). Resolution Creating Fund for Irrigation Improvement District No. 2018-1 Mr. Kovar reminded the board of the action taken at the January board meeting creating improvement districts for MM42L and MM42R and approving the engineer reports. This is required in order for irrigators to use special assessment authority. The Executive Committee then approved the order for each project, as well as the application for Clean Water Act funding and ratified the assessment lists. They also approved awarding the construction and power contracts for MM42L. Mr. Kovar said today the board is being asked to approve creating a fund for Irrigation Improvement District No. 2018-1 (MM42L) and authorize issuance of an improvement bond. Work is being done with the Public Finance Agency and the State Department of Health on these two issues in order to access the State Revolving Loan Fund for irrigation projects. Interest on these funds is one and a half percent plus 0.5 percent for administration for a term of up to 30 years. Garrison Diversion has been approved for $5 million in funding for irrigation projects. The amount approved for this particular project is $900,000. Motion by Director Hanretty to approve the resolution creating a fund for Irrigation Improvement District No. 2018-1 (MM42L) and authorize issuance of an improvement bond. Second by Director Klosterman. Upon roll call vote, the following directors voted aye: D. Anderson, J. Anderson, R. Anderson, Bischoff, Boote, Breker, Cayko, Cook, Fenstad, Haak, Hanretty, Johnson, Kaiser, Klein, Klosterman, Koeser, Krivarchka, Krueger, Marquart, Metzger, Ongstad, Pellman, Peyerl, Rogers, Royse, Tweed and Walter. Those voting nay: none. Absent and not voting: Vein. Motion carried. A copy of the resolution is attached to these minutes as Annex V. BUREAU OF RECLAMATION REPORT Arden Freitag, Area Manager, Bureau of Reclamation, provided highlights from Reclamation’s quarterly written report, a copy which is attached to these minutes as Annex VI.

18-74 Budget - - Mr. Freitag reported that the 2018 Reclamation-wide MR&I budget was increased to $163 million and $66.5 million was added for 2017 Reclamation-wide. This needs to be allocated among the authorized projects. Congress is allowing 45 days to report back on the allocation. He anticipates this will happen sometime in May.

Mr. Freitag added, prior to getting any additional money, there is $9.6 million in the budget for FY2018 for Garrison Diversion Unit (GDU) rural water projects. The amount allocated for the GDU in FY2019 is $4.98 million. NAWS - - Manitoba and Missouri appealed the NAWS lawsuit, and Manitoba has proposed a settlement agreement. Reclamation was not in agreement with this and has proposed entering into a Memorandum of Understanding to establish an adaptive management plan. Mr. Freitag added that work is proceeding on the Biota Water Treatment Plant design. Central North Dakota EA - - Reclamation submitted a revised draft Environmental Assessment (EA) on Central North Dakota for review to Garrison Diversion on March 20, with comments due back to Reclamation by March 30. Comments are being incorporated, and a revised draft will be released for a second public comment period in the next couple of weeks. Cooperative Agreements - - Mr. Freitag provided Reclamation’s status update on the cooperative agreements between Reclamation and Garrison Diversion. Mr. Freitag informed the board that a trip is being planned for the regional grants officer to tour the GDU facilities in June to get a better understanding of the project. A tour is also being planned for the new regional director, Mike Black, for the end of June. Snake Creek Embankment - - Mr. Freitag commented on the Corps of Engineers proposal to impose operating level restrictions at Lake Audubon to alleviate concerns with seepage, stating that Reclamation has been visiting with the Corps of Engineers regarding potential studies to repair the embankment and eliminate the restrictions. The Corps was receptive to that, and they have a couple of different proposals they are floating to their management staff preceding the studies. It looks like their EA on the operating restrictions and the water control plan update will come up for public comment in the next month or two with a public meeting to follow. The Corps also indicated that they would like to have a meeting with the agencies, including Garrison Diversion, prior to that to discuss the studies. MR&I PROGRAM Construction Report - - Secretary DeKrey referred to the MR&I construction report dated March 31, 2018. MR&I expenditures in 2018 total $813,123. A copy of the report is attached to these minutes as Annex VII. Secretary DeKrey reported that a letter was received from the City of Carrington, stating they were not going to proceed with the city’s water tower so that will free up $1.9 million that was allocated to Carrington. He has visited with the State Water Commission, Reclamation and the ND Rural Water Systems Association, and it was agreed to hold these funds in reserve until needed.

18-75 GENERAL MANAGER’S REPORT Secretary DeKrey reported on the Red River Basin Commission’s annual meeting that he attended in January. Office Space Secretary DeKrey said at the direction of the officers and chairman of the Red River Valley Committee, he has been in contact with the president of the CrossRoads Golf Course regarding the possibility of renting the former Farm Credit Services building. Once funding and construction picks up on the RRVWSP, additional office space will be needed. He has made an offer on a rental price of $2,800 per month for one year, which the golf club counter offered in the amount of $3,250 per month. Garrison Diversion would also like an option to renew the lease or purchase the building when the lease expires. He asked the board for their approval to continue negotiations and execute a rental agreement. Motion by Director Fenstad authorizing the general manager to negotiate and enter into a rental agreement with CrossRoads Golf Course for the Farm Credit Service building. Second by Director Tweed. Upon roll call vote, the following directors voted aye: D. Anderson, J. Anderson, R. Anderson, Bischoff, Boote, Breker, Cayko, Cook, Fenstad, Haak, Hanretty, Johnson, Kaiser, Klein, Klosterman, Koeser, Krivarchka, Krueger, Marquart, Metzger, Ongstad, Pellman, Peyerl, Rogers, Royse, Tweed and Walter. Those voting nay: none. Absent and not voting: Vein. Motion carried. ND Insurance Reserve Secretary DeKrey stated that he will be attending the annual meeting of the North Dakota Insurance Reserve Fund (NDIRF) on May 17. The purpose of the meeting is to elect representatives of the cities, counties and others categories to the board and discuss other business. Garrison Diversion is entitled to vote. Motion by Director Cayko authorizing Duane DeKrey to vote on behalf of Garrison Diversion during the North Dakota Insurance Reserve Fund’s annual meeting/election. Second by Director Walter. Upon roll call vote, the following directors voted aye: D. Anderson, J. Anderson, R. Anderson, Bischoff, Boote, Breker, Cayko, Cook, Fenstad, Haak, Hanretty, Johnson, Kaiser, Klein, Klosterman, Koeser, Krivarchka, Krueger, Marquart, Metzger, Ongstad, Pellman, Peyerl, Rogers, Royse, Tweed and Walter. Those voting nay: none. Absent and not voting: Vein. Motion carried. OTA Title Transfer Consulting Agreement Secretary DeKrey stated that Garrison Diversion has entered into a consulting contract with Tom Knutson, Water Management Solutions, a copy which is attached to these minutes as Annex VIII. Mr. Knutson will assist with title transfer of the Oakes Test Area (OTA) from Reclamation to the Dickey-Sargent Irrigation District (DSID). He added that he, Merri Mooridian and Kip Kovar will meet with Mr. Knutson to discuss how to proceed next week while in Washington, DC, for the NWRA conference. The board recessed at 4 p.m. and reconvened on April 6 at 8:30 a.m.

18-76 GDU LITIGATION HISTORY Tami Norgard, Vogel Law Firm, provided a broad outline on the history of the Garrison Diversion Project regarding NEPA and how the courts have been involved in the Project over the years. It is important, as the RRVWSP is being planned without a federal nexus, to have an understanding of the Project’s legal history. RED RIVER VALLEY WATER SUPPLY PROJECT Central North Dakota EA - - Mr. Kovar commented on the Central North Dakota EA, stating that Garrison Diversion has reviewed the draft EA and submitted comments to Reclamation. He expects there will be a request to extend the comment period from either Canada or Missouri. Presentation on Preliminary Design Report - - Mr. Kovar provided a PowerPoint presentation on the RRVWSP Preliminary Design Report (PDR), which summarizes the preliminary design activities and decisions for the RRVWSP by expanding upon the Conceptual Design Report (CDR) that was completed in January. Paul Boersma, Black & Veatch, commented that this board was previously presented with a Conceptual Engineering Report, which provided context for the PDR. The PDR was presented to the LAWA TAC for comments, which have been addressed and incorporated into the report. The PDR will be finalized in the next few weeks. Individual portions of the PDR will now be moved to a more high level of detail for design. Mr. Boersma said preliminary design is really the culmination of the last two and a half years of work and sets, in a fair amount of specificity, the scope and the cost of the project. Upper Sheyenne River Analysis - - Mr. Kovar gave an update on the Upper Sheyenne River Analysis, reminding the board that the state engineer had requested the feasibility, including the costs, be evaluated for an alternative discharge location about 190 river miles farther north and west of Lake Ashtabula. As a result of the analysis, a draft technical memorandum has been prepared. The next step is to meet with the City of Devils Lake to review the memo. Work Plan Update - - Mr. Kovar referred to the RRVWSP Work Plan Update dated February 26 and reviewed the approved task orders. A copy of the update is attached to these minutes as Annex IX. Task Orders Missouri River Intake Mr. Kovar presented and reviewed the Missouri River Intake Preliminary Design Task Order. This task order is for preliminary design of the Missouri River Intake (MRI) and Missouri River Intake Pumping Station (MRIPS) portion of the RRVWSP. It also includes the final design of the pumping station wet well and access road. The intake and pumping station will be located approximately six miles southeast of Washburn on the eastern bank of the Missouri River. The cost of the task order is $1,985,000.

18-77 Motion by Director Fenstad to approve the Intake Preliminary Design Task Order in the amount of $1,985,000. Second by Director Bischoff. Upon roll call vote, the following directors voted aye: D. Anderson, J. Anderson, R. Anderson, Bischoff, Breker, Cayko, Cook, Fenstad, Haak, Hanretty, Johnson, Kaiser, Klein, Klosterman, Koeser, Krivarchka, Krueger, Marquart, Metzger, Ongstad, Pellman, Peyerl, Rogers, Royse, Tweed, Vein and Walter. Those voting nay: none. Absent and not voting: Boote. Motion carried. Unmanned Aircraft Services Mr. Kovar also presented the Unmanned Aircraft Services Task Order. The objective of this task order is to provide supportive visuals through oblique view videos that can be reviewed by multiple parties in order to gain a better understanding of areas and corridors. Specifically, the videos will provide a great perspective of trees, highline poles, steep topographic relief, farmsteads, and crossing of wetlands, rivers, railroads, and roads. This will prove valuable when doing detailed design work. The oblique view videos will be incorporated into a GIS interface allowing project team members to view the videos while simultaneously being able to view the spatial location of the video on top of design layers in the GIS. The cost of the task order is $71,343. Motion by Director Metzger to approve the Unmanned Aircraft Services Task Order in the amount of $71,343. Second by Director Cayko. Upon roll call vote, the following directors voted aye: D. Anderson, J. Anderson, R. Anderson, Bischoff, Breker, Cayko, Cook, Fenstad, Haak, Hanretty, Johnson, Kaiser, Klein, Klosterman, Koeser, Krivarchka, Krueger, Marquart, Metzger, Ongstad, Pellman, Peyerl, Rogers, Royse, Tweed, Vein and Walter. Those voting nay: none. Absent and not voting: Boote. Motion carried. User Commitment Round 2 Merri Mooridian, Administrative Officer, Garrison Diversion, presented the task order for round two of the user commitment meetings, stating that a new round of meetings is required for each of the current 35 participants to provide them updated information, which is the precursor to the participants signing a Participation Agreement and Water Use Contract. This task order provides funding for support at those meetings. Meetings are expected to begin this summer and end in the fall. This task order also includes overall project management and development of a status list showing the progress with each user and any issues associated with that user. The overall objective is to keep the project on schedule and on budget given the scope and timeline of the assignment. The anticipated cost of this task order is $400,000. Motion by Director Koeser to approve the Stakeholder Re-Engagement Task Order in the amount of $400,000. Second by Director J. Anderson. Upon roll call vote, the following directors voted aye: D. Anderson, J. Anderson, R. Anderson, Bischoff, Breker, Cayko, Cook, Fenstad, Haak, Hanretty, Johnson, Kaiser, Klein, Klosterman, Koeser, Krivarchka, Krueger, Marquart, Metzger, Ongstad, Pellman, Peyerl, Rogers, Royse, Tweed, Vein and Walter. Those voting nay: none. Absent and not voting: Boote. Motion carried.

18-78 Planning Level Budget - - Ms. Mooridian referred to and reviewed the Planning Level Budget dated March 28. Of the $43.7 million estimated total program budget, $5.3 million has been expended on Conceptual Design, $9.5 million on Preliminary Design and $1.4 million on Final Design, Easement and Administration for total expenditures of $16.2 million. The smaller table at the bottom of the page shows a breakdown of the state appropriation and LAWA cost share by biennium. A copy of the budget is attached to these minutes as Annex X. Proposed Lake Audubon Water Control Plan Governor’s Letter Secretary DeKrey provided an update on the Corps of Engineers Proposed Lake Audubon Water Control Plan and referred to Governor Burgum’s letter to Reclamation and the Corps of Engineers requesting a three-way partnership between the State, the Corps of Engineers and the Bureau of Reclamation in an attempt to solve the embankment issue. A copy of the letter is attached to these minutes as Annex XI. Secretary DeKrey stated that Reclamation has acknowledged its receipt of the letter, but there has not been a reply from the Corps of Engineers to date. Garrison Diversion and Reclamation will continue to work on this issue. Lake Agassiz Water Authority Report Second Vice Chairman Vein, who serves as vice chair on the LAWA board, gave a summary of activities and meetings concerning LAWA and the RRVWSP. STATE WATER COMMISSION REPORT Garland Erbele, State Engineer and Secretary, State Water Commission, provided an update on State Water Commission projects and activities, including State Water Commission revenue and funding, Life Cycle Cost Analysis for Water Supply Systems, Water Development Plan, Livestock Water Supply Assistance Program, the Drought Monitor Index, Devils Lake and anticipated spring runoff. FUTURE MEETINGS Chairman Royse reviewed the list of upcoming meetings with the board. OTHER BUSINESS There being no further business to come before the board, the meeting adjourned at 12:05 p.m. (SEAL) Ken Royse, Chairman Duane DeKrey, Secretary

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Annex I 18-79

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Annex I 18-80

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Annex II 18-81

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GDU Municipal, Red River

General Operations & Rural, and Valley Water Irrigation

Fund Maintenance Industrial Supply Fund Total

Fund Fund Project

Beginning Bank Balance January 1, 2018 5,972,176 178,329 3,885 974,079 138,999 7,925,319

REVENUES:

Net Change in Assets 174,526 1,973 (150,060) 26,439

MR&I Indirect 28,684 28,684

O&M Indirect 240,803 240,803

Irrigation Admin - -

RRV Salaries Reimb 48,967 48,967

Lease Income - -

Revenue from Sale of GFAG - -

Miscellaneous Income - -

Interest Income 7,142 42 2 13 63 7,262

Tax Levy 1,704,154 1,704,154

State Aid Distribution 57,145 57,145

Contract Revenue 27,385 763,817 588,852 1,213,025 242,794 2,835,873

Irrigation Fund Bond/Loan Proceeds -

O&M Project Income 50 50

O&M Non-project Revenue 49,702 49,702

Total Revenues 2,288,806 815,584 588,854 1,213,038 92,797 4,999,079

EXPENDITURES:

Directors Expense 21,270 21,270

Employee Expenses 212,750 212,750

Administrative Expenses 22,953 22,953

Public Education 34,527 34,527

Professional Services 36,641 36,641

Irrigation Development 1,616 1,616

GDCD Recreation Grant Program 26,898 26,898

DWRA Recreation Program 1,052 1,052

Irrigation Districts Expenses - -

Irrigation Fund - 5,586 5,586

Maintenance & Repairs 8,113 8,113

Capital Purchases - - -

Operations and Maintenance Fund 740,151 740,151

MR&I State Administration 44,093 44,093

MR&I Project Expenditures 544,759 544,759

RRVWSP Fund 878,948 878,948

Total Expenditures 365,820 740,151 588,852 878,948 5,586 2,579,357

TRANSFERS IN/OUT - - - -

REVENUES OVER EXPENDITURES* 1,922,986 75,433 2 334,090 87,211 2,419,722

Ending Bank Balance February 28, 2018 7,895,162 253,762 3,887 1,308,169 226,210 10,345,041

*Depreciation not reflected


COMBINED STATEMENT OF REVENUES AND EXPENDITURES

JANUARY 1, 2018-FEBRUARY 28, 2018

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Annex III 18-82


INCOME BUDGET ANALYSIS STATEMENT

JANUARY 1-FEBRUARY 28, 2018

GENERAL, O&M, Budget Income Percent Balance

MR&I, RRVWSP, and 01-01-18 Received of of

IRRIGATION to to Amount Budget

FUNDS 12-31-18 02-28-18 Budgeted 12-31-18

MR&I Indirect $131,000 $28,684 21.9% 102,316

O&M Indirect 530,000 240,803 45.4% 289,197

Irrigation Admin 500 - 0.0% 500

RRV Salaries Reimb 250,000 48,967 201,033

Lease Income 2,000 - 0.0% 2,000

Miscellaneous Income 500 - 0.0% 500

Interest Income (all funds) 10,000 7,262 72.6% 2,738

Tax Levy 2,978,709 1,704,154 57.2% 1,274,555

State Aid Distribution 220,000 57,145 26.0% 162,855

General Fund Contract Revenue 5,000 27,385 547.7% (22,385)

MR&I Contract Revenue 6,241,305 588,852 9.4% 5,652,453

O&M Contract Revenue 3,951,117 763,817 19.3% 3,187,300

O&M Project Income 5,000 50 1.0% 4,950

O&M Non-project Revenue 500,000 49,702 9.9% 450,298

RRVWSP Contract Revenue 10,602,202 1,213,025 11.4% 9,389,177

Irrigation Fund Revenue 1,150,000 242,794 21.1% 907,206

Revenue from Sale of GFAG - - 0.0% -

TOTAL $26,577,333 $4,972,640 18.7% $21,604,693

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Annex III 18-83


EXPENSE BUDGET ANALYSIS STATEMENT

JANUARY 1-FEBRUARY 28, 2018

GENERAL, O&M, Budget Expenditures Budget Expen- Percent Balance

MR&I, RRVWSP and 01-01-17 Chargeable 01-01-18 ditures of of

IRRIGATION to to 2017 to to Amount Budget

FUNDS 12-31-17 Budget 12-31-18 02-28-18 Budgeted 12-31-18

Directors Expenses 223,614 223,614 225,000 21,270 9.5% $203,730

Employee Expenses 1,336,093 798,379 1,428,685 212,750 14.9% 1,215,935

Administrative Expenses 223,000 156,093 235,000 22,953 9.8% 212,047

Operations & Maintenance Fund 8,361,117 8,012,454 4,456,117 740,151 16.6% 3,715,966

Red River Valley Supply Project 11,020,000 8,178,775 10,602,202 878,948 8.3% 9,723,254

MR&I Fund 7,220,000 6,674,750 6,241,305 588,852 9.4% 5,652,453

Public Education 101,000 94,638 96,000 34,527 36.0% 61,473

Professional Services 679,000 484,333 687,000 36,641 5.3% 650,359

Maintenance & Repairs 68,000 47,559 71,000 8,113 11.4% 62,887

Irrigation Districts Expense 24,900 - 24,900 - 0.0% 24,900

Irrigation Fund 1,150,000 889,199 1,150,000 5,586 0.5% 1,144,414

Irrigation Development 464,875 348,568 464,875 1,616 0.3% 463,259

Capital Purchases 85,000 28,590 88,000 - - 88,000

GDCD Recreation Grant Program 350,000 331,837 375,000 26,898 7.2% 348,102

DWRA Recreation Program 10,000 3,546 10,000 1,052 10.5% 8,948

TOTALS $31,316,599 $26,272,335 $26,155,084 $2,579,357 9.9% $23,575,727

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Annex III 18-84


RESERVES STATEMENT

February 28, 2018

OPERATING RESERVE $3,569,550.92

Operating Reserve authorized to be established in the amount of $300,000.00

per resolution of the Board dated January 15, 1970. Limit changed to $330,000

by Board action on January 6, 1995. Reserve cap removed by Board action

July 2, 1997.

O&M EMERGENCY RESERVE 822,817.55

O&M Emergency Reserve to be established in the amount of $500,000.00 by

Article 13 (a) of the Master Contract and by action taken by the Board dated

January 16, 1970. Limit changed to $1,500,000.00 July 1980. Reserve capped at

$822,817.55 by Board action July 2, 1997.

DEFICIENCY RESERVE 802,287.54

Deficiency Reserve to be established in the amount of $750,000.00 by Article

13 (b) of the Master Contract. Limit changed to $1,500,000.00 July 1980. Reserve

capped at $802,287.54 by Board action July 2, 1997.

PROJECT DEVELOPMENT RESERVE 915,592.98

Project Development Reserve to be established in the amount of $750,000.00

by resolution of the Board dated July 17, 1969. Limit changed to $1,000,000.00

July 1982. Reserve capped at $915,592.98 by Board action July 2, 1997.

------------------------

TOTAL GARRISON DIVERSION CONSERVANCY DISTRICT RESERVES $6,110,248.99

=============

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Annex III 18-85

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FUNDS HELD IN BANK OF NORTH DAKOTA ACCOUNTS

AS OF FEBRUARY 28, 2018

---------------- ------------------------------------------------------------------------------------------------- ----------------------------

Interest Maturity

FUND Account Name/Reserve Rate Date Cash Balance

---------------- ------------------------------------------------------------------------------------------------- ----------------------------

General Checking Account 0.050% $700,754.41

General Money Market Deposit Account 0.050% 7,194,407.69

General Recreation Matching, Oper. Res. 0.100% 423,767.61

General Recreation Reserve, Oper. Res 0.100% 1,569,152.36

General Accrued Leave Res., Oper. Res. 0.100% 116,130.95

General Operating Reserve 0.250% 11-14-18 47,000.00

General Deficiency Reserve 0.250% 05-22-18 124,146.00

General Project Development 0.250% 05-22-18 252,054.00

TOTAL $10,427,413.02


FARM CREDIT SERVICES OF NORTH DAKOTA STOCK

AS OF FEBRUARY 28, 2018

---------------- ------------------------------------------------------------------------------------------------- ----------------------------

Account Name/Reserve Principal Maturity

FUND Account Purpose Balance Date Cash Balance

---------------- ------------------------------------------------------------------------------------------------- ----------------------------

General Operating Reserve 125,000.00$ 05-01-2025 1,000.00$

for Irrigation

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Annex III 18-86

BREMER BANK, N.A.

GARRISON DIVERSIONDEPOSIT AND PLEDGING RECAP

2/28/2017

Account Type Balance Int Rate Deposit Insurance / Pledging Status

Collateral Value /

Pledge Amount

Repurchase Agreement

Sweep Account

xxxxx51 Execusweep - M R & I Working Fund Collateralized with repurchase agreement collateral at 110% of balance

Time and Savings Deposits Subject to limit of $250,000 FDIC Insurance

Interest Bearing Checking (NOW) Accounts FHLB Letter of Credit and Security Pledges collateralizing the excess @ 110%

xxxxx34 Irrigation Fund 226,209.56 0.01%

xxxxx97 Dev Const & Mgmt Rec Facility 76,294.62 0.01%

xxxx41 Flexcomp Program 5,563.39 0.01%

xxxxx52 Red River Valley Water Supply 1,308,169.35 0.01%

xxxxxx62 M R & I Working Fund 3,886.84 0.01%

xxxx61 Operations & Maintenance Fund 253,762.14 0.21%

xxxx95 Operations/Maintenance Flexcomp 2,285.39 0.01%

xxxxxx63 Irrigation - Debt Service Reserve Fund 142,794.94 0.27%

xxxxxx71 Op & Maintenance Reserve Fund 118,644.68 0.27%

Total Interest Bearing Checking Balance $2,137,610.91

Savings Accounts

xxxxx41 Money Mkt Inv - O & M Accr Leave Rsv 145,175.97 0.07%

xxxxxxx79 GF Interest Acct 62,321.46 0.03%

Total Savings Balance 207,497.43

Certificates of Deposit

xxx591-1 Certificate of Deposit 210,000.00


xxxxxxxx933-1 Certificate of Deposit 313,538.98 renumbered account - formerly xxx107



xxxxxx106-1 Certificate of Deposit 106,317.55

xxxxxx097-1 Certificate of Deposit 228,141.54






Total CD Balance 3,576,998.07

Total Time & Savings Deposit Account Balance $5,922,106.41

Pledging Adequacy Calculation

Total Demand Deposits $0.00

Less: FDIC Insurance Coverage 250,000.00

Demand Deposit Balance to Secure $0.00

x 110% 1.10

A Pledging Required on Demand Deposits $0.00

Total Time & Savings Deposit Account Balance $5,922,106.41

Less: FDIC Insurance Coverage 250,000.00

Time & Savings Deposit Balance to Secure $5,672,106.41

x 110% 1.10

B Pledging Required on Time & Savings Deposits $6,239,317.05

A+B=C Total Pledging Required on all Deposits $6,239,317.05

Market Value - Total Securities Pledged $0.00 $0.00

FHLB Letter of Credit $7,375,000.00 $7,375,000.00

D Total Collateral Pledged $7,375,000.00 $7,375,000.00

D-C Pledging Excess $1,135,682.95

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Annex III 18-87

Estimated Taxes Current Tax Deliquent Int. & Penalty

to be Collected Collections Tax Collections Collections State Aid Dist.

County 2017 Levy Year to Date Year to Date Year to Date Year to Date

Barnes $78,022.69 $37,087.48 $229.12 $25.15 $1,122.73

Benson 31,260.22 15,741.60 174.73 22.68 813.61

Bottineau 58,476.40 32,596.10 544.30 76.10 0.00

Burleigh 476,855.96 310,060.77 1,342.37 0.00 12,784.79

Cass 763,994.37 399,382.06 1,771.83 170.11 12,096.34

Dickey 38,841.32 19,619.38 184.45 24.33 884.77

Eddy 13,337.99 7,214.28 23.82 2.70 487.12

Foster 24,685.10 12,696.59 55.75 5.44 1,093.30

Grand Forks 286,282.71 142,133.02 894.17 107.56 2,607.06

Griggs 19,900.13 10,263.09 64.40 7.36 484.23

LaMoure 40,110.58 21,278.97 243.53 30.55 876.15

McHenry 41,058.63 16,938.02 203.45 21.41 434.34

McKenzie 198,830.97 40,636.88 465.86 50.98 6,478.54

McLean 75,164.83 41,130.46 312.04 33.98 1,753.34

Nelson 25,066.17 11,786.90 91.19 10.53 1,189.37

Pierce 31,001.34 14,677.26 246.22 31.80 659.62

Ramsey 53,816.16 28,520.58 299.12 33.89 1,208.43

Ransom 34,848.77 15,884.46 90.50 12.67 0.00

Renville 24,647.00 13,325.79 100.58 11.08 598.54

Richland 86,553.56 44,603.66 240.46 1,343.24 0.00

Sargeant 34,347.66 17,028.17 138.19 11.98 606.97

Sheridan 13,587.15 8,233.93 106.91 10.40 851.62

Steele 28,657.00 14,599.97 187.83 15.97 421.93

Stutsman 107,909.49 59,999.77 321.47 35.49 1,815.09

Traill 50,282.78 31,051.98 212.23 21.18 798.00

Ward 349,649.56 173,471.40 3,219.20 359.68 4,504.77

Wells 39,222.66 19,256.10 106.61 11.79 736.37

Williams 380,335.13 128,299.48 2,277.30 0.00 1,838.37

Totals 3,406,746.33 1,687,518.15 14,147.63 2,488.05 57,145.40


Tax Collections Statement

For the Two Months Ending 2/28/2018

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Annex III 18-88

Expenditures

Budget Chargeable Budget 2018 Balance of Percentage

1/1/17 to 2017 1/1/18 Actual Budget of Budget

to 12/31/17 Budget to 12/31/18 as of 02/28/18 as of 02/28/18 Spent

GENERAL FUND

Directors Expense

Directors Per Diem $100,005 $100,005 $100,000 $8,762 $91,238 8.8%

Directors Expense $123,609 $123,609 $125,000 $12,508 $112,492 10.0%

Total Directors Expense $223,614 $223,614 $225,000 $21,270 $203,730 9.5%

Employee ExpenseEmployee Salaries $813,386 $371,028 $875,000 $132,202 $742,798 15.1%General Manager Exp $40,000 $16,322 $40,000 $6,421 $33,579 16.1%Travel $65,000 $29,872 $73,000 $5,377 $67,623 7.4%

Admn Officer - Merri Mooridian $20,000 $18,180 $25,000 $2,266 $22,734 9.1%

Dist. Engr - Kip Kovar $12,000 $3,740 $12,000 $1,383 $10,617 11.5%

Engineer - Ryan Anderson $10,000 $2,613 $10,000 $10,000 0.0%

Dir. Comm. - Kim Cook $8,000 $2,060 $8,000 $1,238 $6,762 15.5%

Emp Exp Other $15,000 $3,279 $18,000 $490 $17,510 2.7%

Professional Development $17,000 $9,456 $22,000 $0 $22,000 0.0%

Employee Training $15,000 $9,456 $20,000 $0 $20,000 0.0%

Wellness Program $2,000 $0 $2,000 $0 $2,000 0.0%

Benefits $400,707 $371,701 $418,686 $68,750 $349,936 16.4%

GDCD FICA $70,380 $67,453 $74,588 $11,330 $63,258 15.2%

Retirement $111,183 $111,183 $114,775 $18,463 $96,312 16.1%

Hospital & Life Insurance $164,212 $151,758 $178,704 $27,304 $151,400 15.3%

Unemployment Comp $4,162 $1,874 $4,896 $0 $4,896 0.0%

Work Force Safety $7,000 $1,161 $7,000 $0 $7,000 0.0%

Dental / Vision Ins. $20,160 $14,892 $20,160 $2,324 $17,836 11.5%

Long-term Disability Ins $5,610 $5,562 $6,563 $939 $5,624 14.3%

Vacation/Sick Leave Liability $18,000 $17,818 $12,000 $8,390 $3,610 69.9%

Total Employee Expense $1,336,093 $798,379 $1,428,686 $212,750 $1,215,936 14.9%

Administration

Postage $7,000 $3,798 $13,000 $0 $13,000 0.0%

Communications $25,000 $19,375 $26,000 $3,866 $22,134 14.9%

Utilities $40,000 $29,052 $40,000 $5,924 $34,076 14.8%

Meetings & Events $8,000 $5,048 $9,000 $721 $8,279 8.0%

Miscellaneous $8,474 $8,474 $5,000 $157 $4,843 3.1%

Subscriptions/Publications $5,000 $4,695 $7,000 $1,734 $5,266 24.8%

Data Processing $23,526 $16,818 $25,000 $3,853 $21,147 15.4%

Employee Recruiting $5,000 $1,359 $5,000 $100 $4,900 2.0%

Supplies $35,000 $16,339 $35,000 $2,264 $32,736 6.5%

Small Office Equipment $15,000 $5,467 $17,000 $190 $16,810 1.1%

Dues $13,000 $10,680 $14,000 $4,019 $9,981 28.7%

Insurance $10,000 $8,138 $11,000 $125 $10,875 1.1%

Annual Independent Audit $28,000 $26,850 $28,000 $0 $28,000 0.0%

Total Administration $223,000 $156,093 $235,000 $22,953 $212,047 9.8%

Public Education

GDCD Tours $10,000 $9,038 $5,000 $5,000 0.0%

Other Tours $0 $0 $5,000 $5,000 0.0%

ND Water Users Ass'n Dues $20,000 $20,000 $20,000 $20,000 $0 100.0%

ND Water Coalition Dues $14,000 $14,000 $14,000 $14,000 $0 100.0%

ND Water Magazine $18,000 $18,000 $18,000 $18,000 0.0%

Missouri River Joint Board/MRRIC $15,000 $14,091 $15,000 $15,000 0.0%

NWRA Presidency--Dave Koland $6,070 $6,070 $0 $0 0.0%

Conference Booth Fees, Sponsorships $9,930 $6,354 $10,000 $547 $9,453 5.5%

Miscellaneous $8,000 $7,085 $9,000 -$20 $9,020 -0.2%

Total Public Education $101,000 $94,638 $96,000 $34,527 $61,473 36.0%



January 1-February 28, 2018

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Annex III 18-89

Expenditures







Professional Services

Communications $126,856 $126,856 $150,000 $4,816 $145,184 3.2%

Engineering $144,618 $70,269 $150,000 $472 $149,528 0.3%

Web Hosting $4,000 $823 $4,000 $341 $3,659 8.5%RRVWSP Development $226,000 $148,696 $183,000 $19,152 $163,848 10.5%

Technical Support for LAWA $15,000 $0 $15,000 $15,000 0.0%Engineering $140,000 $109,884 $50,000 $17,514 $32,486 35.0%

Legal $50,000 $31,876 $50,000 $1,544 $48,456 3.1%

Financial $12,000 $0 $12,000 $12,000 0.0%

Consultants $0 $0 $50,000 $50,000 0.0%

Meeting, Misc. Exp $9,000 $6,936 $6,000 $94 $5,906 1.6%

Prof Services Other $0 $0 $25,000 $25,000 0.0%

Legal Services $177,526 $137,689 $175,000 $11,860 $163,140 6.8%

Total Professional Services $679,000 $484,333 $687,000 $36,641 $650,359 5.3%

Irrigation Development

ND Irrigation Association $50,000 $50,000 $50,000 $50,000 0.0%

NDSU Oakes Irrigation Site $267,875 $267,875 $267,875 $267,875 0.0%

Robert Titus Lease $17,000 $15,347 $17,000 $17,000 0.0%

Irrigation Development $130,000 $15,346 $130,000 $1,616 $128,384 1.2%

Total Irrigation Development $464,875 $348,568 $464,875 $1,616 $463,259 0.3%

Recreation

GDCD Recreation Grant Program $350,000 $331,837 $375,000 $26,898 $348,102 7.2%

DWRA Recreation Program $10,000 $3,546 $10,000 $1,052 $8,948 10.5%

Total Recreation $360,000 $335,383 $385,000 $357,050 7.3%

$27,950

Irrigation Districts Expense

Irrigation Districts $4,900 $0 $4,900 $0 $4,900 0.0%

Oakes Title Transfer $20,000 $0 $20,000 $20,000 0.0%

Technical Support $15,000 $0 $15,000 $0 $15,000 0.0%

Legal $5,000 $0 $5,000 $0 $5,000 0.0%

Total Irrigation Districts Expense $24,900 $0 $24,900 $0 $24,900 0.0%

Maintenance & Repair

Equipment Maintenance $22,561 $22,561 $20,000 $4,600 $15,400 23.0%

Small Yard Equipment Purchases $4,000 $0 $4,000 $0 $4,000 0.0%

Land & Bldg Maintenance $24,439 $10,495 $30,000 $2,105 $27,895 7.0%

Auto Expense $17,000 $14,503 $17,000 $1,408 $15,592 8.3%

Total Maintenance & Repair $68,000 $47,559 $71,000 $8,113 $62,887 11.4%

Capital Purchases

Office Equip & Furniture $20,000 $0 $20,000 $0 $20,000 0.0%

Yard Equipment $20,000 $7,150 $20,000 $0 $20,000 0.0%

Vehicle $30,000 $21,440 $33,000 $0 $33,000 0.0%

Land and Buildings $15,000 $0 $15,000 $0 $15,000 0.0%

Total Capital Purchases $85,000 $28,590 $88,000 $0 $88,000 0.0%

Total General Fund $3,565,482 $2,517,157 $3,705,461 $365,820 $3,339,641 9.9%

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Annex III 18-90

Expenditures







IRRIGATION FUNDMcClusky Canal Irrigation:

Construction $500,000 $463,860 $500,000 $4,978 $495,022 1.0%

Operations $480,124 $255,463 $650,000 $608 $649,392 0.1%

Debt Payments $169,876 $169,876 $0 $0 $0 0.0%

Principal $110,900 $110,900 $0 $0 $0 0.0%

Interest $58,976 $58,976 $0 $0 $0 0.0%

Total Irrigation Fund $1,150,000 $889,199 $1,150,000 $5,586 $1,144,414 1.1%

GDU O & M

Salaries and Benefits $2,025,283 $1,857,261 $2,190,283 $379,392 $1,810,891 17.3%

Salaries $1,350,145 $1,303,052 $1,498,145 $271,948 $1,226,197 18.2%

Benefits $675,138 $554,209 $692,138 $107,444 $584,694 15.5%

Travel $25,461 $22,052 $37,461 $568 $36,893 1.5%

Training $6,800 $5,724 $6,500 $0 $6,500 0.0%

Utilities $100,820 $92,635 $80,820 $13,332 $67,488 16.5%

Contractual Services $225,000 $212,651 $51,000 $11,072 $39,928 21.7%

Supplies $341,531 $331,433 $401,013 $60,118 $340,895 15.0%

Equipment Purchases $4,409,532 $4,399,878 $396,040 $40,788 $355,252 10.3%

Small Equipment Purchases $14,508 $14,508 $0 $0 $0 0.0%

Equipment Rental $10,000 $4,618 $14,000 $0 $14,000 0.0%

Equipment Maintenance $160,730 $160,730 $141,525 $22,428 $119,097 15.8%

Safety $46,024 $42,041 $43,824 $5,137 $38,687 11.7%

Miscellaneous $12,836 $12,836 $9,059 $38 $9,021 0.4%

Materials $307,592 $227,529 $409,592 $20,080 $389,512 4.9%

O&M Overhead Expense $675,000 $628,558 $675,000 $187,198 $487,802 27.7%

Total GDU O & M $8,361,117 $8,012,454 $4,456,117 $740,151 $3,715,966 16.6%

MR&I Fund

Indirect Costs $23,615 $23,615 $0 $0 0.0%

Salaries & Benefits $91,318 $91,318 $0 $0 0.0%

State Administration $105,067 $70,027 $241,305 $44,093 $197,212 18.3%

MR&I Project Expenditures $7,000,000 $6,489,790 $6,000,000 $544,759 $5,455,241 9.1%

Total MR&I Fund $7,220,000 $6,674,750 $6,241,305 $588,852 $5,652,453 9.4%

RRV Water Supply Project

Right of Way $0 $0 $2,100,000 $0 $2,100,000 0.0%

Design $10,400,000 $7,589,524 $5,102,202 $797,362 $4,304,840 15.6%

Salaries & Benefits $143,376 $143,376 $0 $0 $0 0.0%

Indirect Costs $456,229 $425,480 $0 $0 $0 0.0%

Financing/Legal/Administration $20,395 $20,395 $900,000 $81,586 $818,414 9.1%

Construction $0 $0 $2,500,000 $0 $2,500,000 0.0%

Total RRVWSP $11,020,000 $8,178,775 $10,602,202 $878,948 $7,223,254 8.3%

TOTAL ALL FUNDS $31,316,599 $26,272,335 $26,155,085 $2,579,357 $21,075,728 9.9%

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Annex III 18-91


GDCD RECREATION GRANT PROGRAM

OUTSTANDING PROJECTS

JULY 1, 1990, to FEBRUARY 28, 2018

GRANT OUTSTANDING PROJECTS EXPENDITURES EXPENDITURES ADJUSTMENTS BALANCE

APPROVAL PROJECTS APPROVED 1990 to 1-1-18 to REMAINING

COUNTY PROJECT DATE 2018 12-31-17 02-28-18 12/31/2017

Barnes Hi-Line Prairie Gardens &I Orchard Phase II 05-05-17 $ 6,457.00 5,722.87 734.13$

Benson City of Maddock 10-07-16 $ 50,000.00 50,000.00$

Bottineau Fairground Horse Arena 10-07-16 $ 31,350.00 28,746.94 2,603.06$

Burleigh General Sibley Interpretive Trail 04-29-16 $ 24,668.00 24,668.00$

Cass Reile's Acres Park Development 10-07-16 $ 55,000.00 31,343.29 23,656.71$

Cass RRV Fair Campground Phase 2 04-29-16 $ 21,831.00 21,442.39$ 388.61$ 0.00$

Cass RRV Fair Campground Phase 3 05-05-17 $ 15,686.00 15,686.00$ -$

Eddy Campbell Memorial Park Playground Equip 04-23-15 12,500.00$ 9,333.75$ 3,166.25$

Foster CrossRoads Shelter/Restroom 04-23-15 3,675.00$ 3,675.00$

Grand Forks Altru Wellness Village Playground 05-05-17 $ 8,750.00 5,604.53$ 3,145.47$

Grand Forks Ryan Lake Playground 05-05-17 $ 5,175.00 3,106.39$ 2,068.61$

Grand Forks Grand Forks Skat Park-Phase 1 10-05-17 $ 31,232.00 31,232.00$

Griggs ADA Restroom/Concession Stand 10-07-16 $ 6,125.00 3,977.60$ 2,147.40$

Griggs Binford Rodeo Ground Bleachers 10-07-16 $ 27,500.00 14,133.15$ 13,366.85$

McHenry Buffalo Lodge Shelters 05-05-17 $ 2,500.00 2,500.00$

McKenzie McKenzie County Veteran's Park 10-05-17 $ 50,000.00 50,000.00$

McLean Brekken-Holmes Campground Improv. 04-23-15 7,500.00$ 7,500.00$

McLean Garrison City Park Restrooms 05-05-17 10,000.00$ 10,000.00$

Nelson McVille Park Frisbee Golf Course 05-05-17 1,500.00$ 1,500.00$

Nelson North Park Bathroom 10-07-16 4,000.00$ 4,000.00$

Nelson Tolna Bay Boat Ramp/Fish Cleaning Stn 04-23-15 6,646.00$ 6,646.00$

Ramsey East Ditch Rec Site Playground Equipment 04-29-16 9,974.00$ 9,974.00$

Ramsey Lakewood Beach Improvement 10-05-17 4,860.00$ 4,860.00$

Ransom Dead Colt Creek Hook-ups 05-05-17 6,996.00$ 6,996.00$

Renville Glenburn Park Playground Equipment 04-23-15 3,528.00$ 3,494.25$ 33.75$

Renville Mohall Fairgrounds Playground Equipment 04-23-15 10,000.00$ 10,000.00$

Renville Mohall Gun Club Traphouses 09-30-14 15,750.00$ 14,626.93$ 1,123.07$ (0.00)$

Renville Mouse River Planters 10-05-17 250.00$ 250.00$

Richland Kidder Recreation Area Tent Campground 10-07-16 3,000.00$ 3,000.00$

Richland Wyndmere Rock Garden Park Equipment 04-23-15 17,554.00$ 11,660.26$ 5,893.74$

Sargent Silver Lake Park Picnic Shelter 10-08-15 1,583.00$ 1,583.00$

Sargent Silver Lake Phase 2 04-29-16 8,250.00$ 8,250.00$

Sargent Silver Lake Water/Electric Hookups 05-05-17 1,275.00$ 1,275.00$

Sargent Silver Lake Improvements 10-05-17 3,559.00$ 3,559.00$

Sheridan Hoffer Lake Beach Area 04-29-16 2,620.00$ 2,620.00$

Steele Golden Lake Playground Phase II 04-29-16 7,500.00$ 7,500.00$

Steele Golden Lake Campground Renovation 10-05-17 21,678.00$ 21,678.00$

Stutsman Medina City Park Playground Equipment 04-23-15 8,750.00$ 6,947.61$ 1,802.39$

Stutsman Spirtwood Lake Resort Playground Restoration 10-05-17 7,500.00$ 7,500.00$

Traill Mayville Nature Trail 05-05-17 13,500.00$ 13,500.00$

Traill Walking Trail 10-07-16 896.00$ 896.00$

Ward Burlington Riverfront Project 04-29-16 50,000.00$ 50,000.00$

Ward Minot Fitness Trail Outdoor Exercie Equip. 05-05-17 2,625.00$ 2,625.00$

Williams Williams County Parks--Picnic Shelters 04-29-16 35,000.00$ 34,293.75$ 706.25$

Williams McGregor Dam Vault Toilets 10-05-17 16,656.00$ 16,656.00$

TOTAL $635,399.00 $0.00 $184,733.24 $26,898.15 $0.00 423,767.61$

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Annex III 18-92


DWRA RECREATION PROGRAM

CHAIN OF LAKES RECREATION

JANUARY 1, 2008 to FEBRUARY 28, 2018

Bureau of Income from Expenditures Expenditures

Interest Reclamation Returned Recreation Eligible for Ineligible for

DESCRIPTION Income Income Funds Cost Share Cost Share

2008

2008 Totals $19.62 $149,000.00 $168,675.40 $3,870.71

2009

2009 Totals $145.51 $0.00 $25,606.33 $117,101.89 $60.57

2010

2010 Totals $96.61 $0.00 $5,986.16 $80,610.93 $4,781.83

2011

2011 Totals $66.09 $0.00 $5,981.63 $0.00 $4,834.57

2012

2012 Totals $25.97 $0.00 $0.00 $0.00 $4,942.10

2013

2013 Totals $10.08 $0.00 $0.00 $0.00 $4,098.21

2014

2014 Totals $9.28 $0.00 $0.00 $0.00 $4,144.18

2015

2015 Totals $8.85 $0.00 $0.00 $0.00 $5,951.86

2016

2016 Totals $8.34 $0.00 $0.00 $0.00 $3,166.96

2017

2017 Totals $8.64 $3,546.24

Income:

GDCD Recreation Grant Funds Returned From Projects

Interest Income $0.65

Expenditures:

Chain of Lakes Recreation Facilities Maintenance $1,052.00

2018 Totals $0.65 $0.00 $0.00 $0.00 $1,052.00

GRAND TOTALS $399.64 $149,000.00 $206,249.52 $201,583.53 $36,578.52

$100,791.77 = 50 Percent

COST SHARE SUMMARY:

Total Bureau of Reclamation Funds Received to Date 149,000.00$

Less 50% of Expenditures Eligible for Cost Share (100,791.77)$

Balance of Federal Funds 48,208.24$

Total GDCD Unused Recreation Funds to Date 206,249.52$

Less 50% of Expenditures for Cost Share (100,791.77)$

Less Facilities Maintenance (36,578.52)$

Balance of GDCD Unused Recreation Funds 68,879.24$

Plus Interest Income to Date 399.64$

Balance of GDCD Funds 69,278.88$

Less 12-31-12 transfer to Recreation Reserve (zero in 2013, '14, '15, '16) (41,192.49)$

Balance of GDCD Funds 28,086.39$

Balance of Federal Funds 48,208.24$

Cash Balance in DWRA Account 02-28-18 76,294.62$

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GENERAL, O&M, Budget Income Percent 2017

MR&I, RRVWSP and 1/1/2017 Received of Revised

IRRIGATION to to Amount Final

FUNDS 12/31/2017 12/31/2017 Budgeted Budget

Transfers In (MR&I) $100,000 $23,615 23.6% 23,615

Transfers In (O&M) 675,000 628,558 93.1% 628,558

Transfers In (RRV) 20,395 20,395

GF Admn Charge from Irr Fund - - 0.0% -

Lease Income 500 2,303 460.6% 2,303

Miscellaneous Income 500 130 26.0% 130

Interest Income 10,000 38,965 389.7% 38,965

Contract Revenue 5,000 48,206 964.1% 48,206

Revenue from Sale of GFAG - - - -

Tax Levy 2,692,500 3,358,932 124.8% 3,358,932

State Aid Distribution 250,000 216,431 86.6% 216,431

General Fund Total $3,733,500 $4,337,535 24% $4,337,535

Interest Income 152 - 152

Revenue from Sale of GFAG - - - -

O&M Contract Revenue 7,856,117 7,767,915 98.9% 7,767,915

O&M Non-project Revenue 500,000 256,201 51.2% 256,201

O&M Project Revenue 5,000 6,303 126.1% 6,303

O&M Total $8,361,117 $8,030,571 96% $8,030,571

MR&I Interest Income* - 27 - 27.00

MR&I Contract Revenue* 7,220,000 6,674,750 92% 6,674,750

MR&I Total $7,220,000 $6,674,777 92% $6,674,777

Interest Income - 161 - 161

Contract Revenue 11,020,000 8,125,218 74% 8,125,218

RRVWSP Total $11,020,000 $8,125,379 74% $8,125,379

Interest Income - 700 - 700

Miscellaneous Income - 25 - 25

Contract Revenue 1,150,000 775,702 67% 775,702

Irrigation Fund Total $1,150,000 $776,427 68% $776,427

TOTAL $31,484,617 $27,944,689 89% $27,944,689


INCOME BUDGET ANALYSIS STATEMENT - FINAL

JANUARY 1, 2017 THROUGH DECEMBER 31, 2017

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3/27/18 4:14 PM Budget Actual Revision Final

Budget

GENERAL FUND

Directors Expense

Directors Per Diem $95,000 $100,005 5,005$ $100,005

Directors Exp $125,000 $123,609 (1,391)$ $123,609

Total Directors Expense $220,000 $223,614 3,614$ $223,614

Employee ExpenseEmployee Salaries $817,000 $371,028 (3,614)$ $813,386

General Managers Expense $40,000 $16,322 $40,000

Travel $65,000 $29,872 $65,000

Administrative Officer $20,000 $18,180 $20,000

District Engineer $12,000 $3,740 $12,000

Engineer $10,000 $2,613 $10,000

Communications Director $8,000 $2,060 $8,000

Emp Exp Other $15,000 $3,279 $15,000

Professional Development $17,000 $9,456 -$ $17,000

Employee Training $15,000 $9,456 $15,000

Wellness Program $2,000 $0 $2,000

Benefits $400,707 $371,701 -$ $400,707

GDCD FICA $70,380 $67,453 $70,380

Retirement $107,645 $111,183 $3,538 $111,183

Hospital & Life Insurance $167,750 $151,758 (3,538)$ $164,212

Unemployment Comp $4,162 $1,874 $4,162

Workforce Safety Insurance $7,000 $1,161 $7,000

Vision / Dental $20,160 $14,892 $20,160

Long Term Disability Ins $5,610 $5,562 $5,610

Vacation/Sick Leave Liability $18,000 $17,818 $18,000

Total Employee Expense $1,339,707 $798,379 (3,614)$ $1,336,093

Administration

Postage $7,000 $3,798 $7,000

Electronic Communications $25,000 $19,375 $25,000

Utilities $40,000 $29,052 $40,000

Meetings & Events $8,000 $5,048 $8,000

Miscellaneous $7,000 $8,474 1,474$ $8,474

Subscriptions $5,000 $4,695 $5,000

Data Processing $25,000 $16,818 (1,474)$ $23,526

Employee Recruiting $5,000 $1,359 $5,000

Supplies $35,000 $16,339 $35,000

Small Office Equipment $15,000 $5,467 $15,000

Dues $13,000 $10,680 $13,000

Insurance $10,000 $8,138 $10,000

Annual Independent Audit $28,000 $26,850 $28,000

Total Administration $223,000 $156,093 -$ $223,000

Public Education

GDCD Tours $10,000 $9,038 $10,000

Other Tours $0 $0 $0

ND Water Users $20,000 $20,000 $20,000

ND Water Coalition $14,000 $14,000 $14,000

ND Water Magazine $18,000 $18,000 $18,000

Missouri River Joint Board/MRRIC $15,000 $14,091 $15,000

NWRA Presidency - Dave Koland $6,000 $6,070 70$ $6,070

Conferences/Sponsorships $10,000 $6,354 (70)$ $9,930

Miscellaneous $8,000 $7,085 $8,000

Total Public Education $101,000 $94,638 -$ $101,000


BUDGET FINAL

January 1, 2017 to December 31, 2017

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Budget


BUDGET FINAL


Professional Services

Odney $124,000 $126,856 2,856$ $126,856

Black & Veatch $150,000 $70,269 (5,382)$ $144,618

Will & Carlson $45,000 $47,526 2,526$ $47,526

Web Hosting $4,000 $823 $4,000

RRVWSP Development $206,000 $148,696 -$ $226,000

Technical Support for LAWA $15,000 $0 $15,000

Engineering $140,000 $109,884 $140,000

Legal $50,000 $31,876 $50,000

Financial $12,000 $0 $12,000

Consultants $0 $0 $0

Meeting, Misc. Exp $9,000 $6,936 $9,000

Prof Services Other $0 $0 $0

Legal Services $130,000 $90,163 $130,000

Total Professional Services $679,000 $484,333 -$ $679,000

Irrigation Development

ND Irrigation Association $50,000 $50,000 $50,000

NDSU Oakes Irrigation Site $267,875 $267,875 $267,875

Bob Titus Lease $17,000 $15,347 $17,000

Irrigation Development $130,000 $15,346 $130,000

Total Irrigation Development $464,875 $348,568 -$ $464,875

Recreation

Recreation Matching $350,000 $331,837 $350,000

DWRA Recreation Program $10,000 $3,546 $10,000

Total Recreation $360,000 $335,383 -$ $360,000

Irrigation District Expense

Irrigation District Expenses $4,900 $0 $4,900

OTA Title Transfer $20,000 $0 -$ $20,000

Technical Support $15,000 $0 $15,000

Legal $5,000 $0 $5,000

Total Irrigation District Expense $24,900 $0 -$ $24,900

Maintenance & Repair

Equipment Maintenance $20,000 $22,561 2,561$ $22,561

Small Yard Equipment Purchases $4,000 $0 $4,000

Land & Bldg Maintenance $27,000 $10,495 (2,561)$ $24,439

Auto Expense $17,000 $14,503 $17,000

Total Maintenance & Repair $68,000 $47,559 -$ $68,000

Capital Purchases

Office Equip & Furniture $20,000 $0 $20,000

Yard Equipment $20,000 $7,150 $20,000

Vehicle $30,000 $21,440 $30,000

Land & Buildings $15,000 $0 $15,000

Total Capital Purchases $85,000 $28,590 -$ $85,000

GENERAL FUND TOTAL $3,565,482 $2,517,157 -$ $3,565,482

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Budget


BUDGET FINAL


IRRIGATION FUND

McClusky Canal Irrigation $1,150,000 $1,059,075 169,876$ $1,319,876

Construction $500,000 $463,860 $500,000

Operations $650,000 $255,463 (169,876)$ $480,124

Debt Payments -$ $169,876 $169,876 $169,876

Principal -$ $110,900 110,900$ $110,900

Interest -$ $58,976 58,976$ $58,976

Oakes Test Area Development -$ $0 $0

IRRIGATION FUND TOTAL $1,150,000 $889,199 $0 $1,150,000

GDU O&M FUND

Salaries & Benefits $2,025,283 $1,857,261 -$ $2,025,283

Salaries $1,350,145 $1,303,052 $1,350,145

Benefits $675,138 $554,209 $675,138

Travel $25,461 $22,052 $25,461

Training $6,800 $5,724 $6,800

Utilities $100,820 $92,635 $100,820

Contracted Services (Eng / Survey) $225,000 $212,651 $225,000

Supplies $353,013 $331,433 (11,482)$ $341,531

Equipment Purchases $4,424,040 $4,399,878 (14,508)$ $4,409,532

Small Equipment Purchases $0 $14,508 14,508$ $14,508

Equipment Rental $10,000 $4,618 $10,000

Equipment Maintenance $149,525 $160,730 11,205$ $160,730

Safety $46,024 $42,041 $46,024

Miscellaneous $12,559 $12,836 277$ $12,836

Materials $307,592 $227,529 $307,592

Overhead Expense $675,000 $628,558 $675,000

GDU O&M FUND TOTAL $8,361,117 $8,012,454 -$ $8,361,117

MR&I FUND

Indirect Cost $0 $23,615 23,615$ $23,615

Salaries & Benefits $0 $91,318 91,318$ $91,318

State Administration $220,000 $70,027 (114,933)$ $105,067

MR&I Project Expenditures $7,000,000 $6,489,790 $7,000,000

MR&I FUND TOTAL $7,220,000 $6,674,750 -$ $7,220,000

RRVWSP FUND

ROW $0 $0 $0

Design $10,400,000 $7,589,524 $10,400,000

Salaries & Benefits 143,376$ 143,376$ $143,376

Financing/Legal/Admin $620,000 $425,480 (163,771)$ $456,229

Indirect Costs $0 $20,395 20,395$ $20,395

RRVWSP FUND TOTAL $11,020,000 $8,178,775 -$ $11,020,000

TOTAL ALL FUNDS $31,316,599 $26,272,335 -$ $31,316,599

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BUREAU OF RECLAMATION: APRIL 2018

Bureau of Reclamation Activities Garrison Diversion Board Report April 5-6, 2018

Municipal, Rural, and Industrial Program

Rural Water Budgets:

State Municipal Rural and Industrial Program

NAWS On January 31, 2018, the U.S. Court of Appeals issued an order putting the Province of

Manitoba and the State of Missouri appeals on hold for 90 days pending settlement

negotiations. This order also revised the briefing schedule to account for the 90 day stay

which pushes the final briefs out until mid-July 2018. Manitoba initiated the settlement

discussions; however, the State of Missouri is not interested in joining in the discussion.

On February 14, 2018, the Province of Manitoba provided a settlement proposal for

consideration. DKAO is working with the Department of Justice, solicitor’s office and GP

Region to review the proposal and prepare a response. We are also in communication with

the State of North Dakota and their legal counsel regarding this proposal.

Reclamation, GDCD and the State Water Commission have formed a design team to oversee

the design of the Biota WTP which will be located near Max, ND. Reclamation will also

establish an Adaptive Management Team. This includes identifying stakeholders, entering

into a Memorandum of Understanding with each stakeholder and eventually identifying the

objectives and goals for the Adaptive Management Plan. Reclamation will also provide

continual oversight of other environmental commitments made in the FSEIS released in

2015.

Enacted FY 2017

Requested FY 2018

Request FY 2019

GDU 24.40 9.6 4.980

State 9.632 0

Tribe 14.767 4.980

Lewis &Clark 9.15 3.65 0.100

Fort Peck 15.25 6.0 4.731

Rocky Boys 12.20 4.85 3.984

E NM 5.00 1.875 0

Total 66.00 25.975

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Central North Dakota Water Supply Environmental Assessment Garrison Diversion requested a water service contract and project pumping power to

withdraw up to 20 cubic feet per second of water from the McClusky Canal, at Mile Marker

42, to serve areas of Stutsman Rural Water District/Jamestown, Central Plains Water District,

Tuttle, and potentially other communities within the Missouri River Basin.

A draft Environmental Assessment was completed by Reclamation. Public notices were

published in the McClusky Gazette, Bismarck Tribune, and Jamestown Sun on the release of

the draft EA and comments were due September 22, 2017. Seven agency responses were

received and no private party responses were received. Missouri Department of Natural

Resources sent a letter dated September 19, 2017, that requested a 30-day extension to

review the draft EA. Reclamation granted an additional 15 days for public review, which

ended October 7, 2017. Reponses were received from Global Affairs Canada, Manitoba

Sustainable Development, Missouri DNR, and the Coalition to Protect the Missouri River

that requested clarification on several items. Reclamation submitted a revised draft EA for

review to Garrison Diversion March 20, 2018 with comments due back to Reclamation

March 30, 2018.

South Central Regional Water District Contract 2015-1, North Logan and Kidder Country Rural Distribution Project – This

project was awarded to Swanberg Construction Inc., of Valley City, North Dakota, in the

amount of $8,945,685.50. The work reached substantial completion on December 20,

2017. The contractor has some minor work activities yet to complete.

Contract 2015-1A, Kidder County Rural Distribution System – On June 20, 2017, this

project was awarded to Northern Improvement Company, Inc., of Fargo, North Dakota in the amount

of $2,667,667.00. The project consists of furnishing and installing approximately 80 miles of 6-inch

through 1½ -inch PVC gasketed joint pipe, 135 services, road crossings, connections to existing

pipelines, and other related appurtenances. This project is located in Kidder County in North Dakota.

The Substantial Completion date is June 1, 2018. As of the March 2018, the project is in winter

shutdown. There is about 6 to 7 miles of pipe yet to be installed and some additional users.

Southwest Pipeline Project Contract 1-2A, Supplementary Raw Water Intake – This contract was awarded to James

W. Fowler Company of Dallas, Oregon, in the amount of $12,994,000. The contractor has

completed the installation of the caisson shaft. Tunneling operation for the intake pipeline

began on July 15, 2015. Tunneling operations were halted in early November 2015, due to a

failure within the tunneling section. The Fowler recovery plan consisted of stabilizing the

existing pipe to stop the inflow of sand and water into the pipe and caisson, replacement of a

concrete plug in the bottom of the caisson shaft and tunneling with a new microtunnel boring

machine. The new pipe alignment was rotated 7 degrees east and located 12 feet above the

abandoned pipe. The contractor started tunneling operations again in July 2017 (second

tunneling attempt). On October 10, 2017, cracks were noticed in pipe No. 58. A report

prepared by Fowler’s tunneling consultant concluded that the ground between pipes 57 and

63 had moved down and is overloading the pipes. Fowler has advised that the pipe string

cannot be advanced any further and an alternate plan will be required to complete the intake

pipe. Fowler is currently working on an option to complete the intake. One option would

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include the construction of a shoreline shaft that would intercept the existing tunnel and then

launch a new Micro-tunnel boring machine to complete the intake tunnel.

Contract 3-2D, Dickinson Water Treatment Plant – This project consists of the

construction of a 210 ft. by 110 ft. reinforced concrete and pre-cast concrete building and the

installation of pumping, piping, tanks, chemical feed systems, owner purchased equipment,

mechanical, electrical and instrumentation systems for the new water treatment plant in

Dickinson, ND. The general construction contract was awarded to John T. Jones

Construction Co. (Fargo, ND) in the amount of $20,269,000. The mechanical construction

contract was awarded to Williams Plumbing and Heating, Inc., (Bozeman, MT) in the

amount of $2,615,300. The electrical contact was awarded to Edling Electric, Inc., of

Bismarck in the amount of $2,899.500. The project substantial completion date is February

23, 2018. The plant produced finished water for the first time on February 7, 2018.

Contract 3-2E, Dickinson Residuals Handling Facility – This contract includes the

construction of a 65 ft. by 80 ft. reinforced concrete and pre-cast concrete building and the

installation of piping, pumping, dewatering equipment, mechanical, electrical and

instrumentation systems for the new Residuals Handling Facility near the Dickinson water

treatment plant. Our concurrence of award letter to Garrison Diversion in September 2017.

The General Construction contract is Rice Lake Construction Group of Deerwood, MN for

$7,506,300; the Mechanical Construction contract is Central Mechanical Inc. of Mandan, ND

for $619,900.00; and the Electrical Construction contract is Edling Electric Inc. of Bismarck,

ND for $862,600.00. The construction startup date was October, 17, 2017. The contractor

has completed construction of the base slab and basin walls. Installation of shoring for the

first floor is now underway.

The Substantial Completion date is February 28, 2019.

Other State Municipal Rural and Industrial Projects

DKAO entered into a new Cooperative Agreement with Garrison Diversion in September

2017. In December 2017 a modification to this agreement was issued which added the

construction of the Burlington, Rugby and Wahpeton projects to the list of approved

construction activities. Garrison has requested several other projects be approved for

construction and provided the necessary documentation. DKAO has submitted these

requests; however, Department of the Interior review of all cooperative agreement

modifications has slowed the progress of issuing the modification. Projects included in the

pending modification are the SWPP Dickinson WTP Residual Handling Facility, Kindred

Water Tower, Casselton Water Tower, SCRWD-Logan County Booster Station, Sherwood

Water Main Improvements, Mohall Water Tower Improvements, NAWS Minot Water

Treatment Plant (WTP) Improvements-Phase II, Westhope Water Main Improvements and

Cass Rural Water User-Leonard Area Water Supply. The pending modification would also

move the McLean-Sheridan Water Resource District-Blue and Brush Lake Expansion project

from the previous agreement into the 2017 agreement. Timing of the Departmental review is

uncertain.

Garrison has also submitted a request to increase in the funding available for design work to

include the NAWS Biota WTP design which is estimated at $5.5 million. DKAO is

preparing a separate modification request for this because it will require more extensive

cost/price review than the other projects included in the pending modification.

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Substantial progress has been made on the environmental compliance required for several

proposed projects. The majority of the community projects are being evaluated with a

Categorical Exclusion Checklist (CEC) and only one project review remains to be completed

(Glenburn Water Improvements) once the project sponsor provides the necessary information

to DKAO. The Northeast Regional Water District Expansion project, requires an EA and

DKAO initiated public scoping in March.

Indian Municipal, Rural, & Industrial Program: Standing Rock MR&I System The Tribe awarded Contract 4-2 to Northern Improvement Company in the amount of

$1,070,330.76. This project includes installing approximately 21 miles of 2- and 3-inch

diameter pipe, connection of 21 services and other incidental work. A Pre-Construction

meeting was held on Tuesday, March 20, 2018. The contractor intends to start work in early

April with a completion date of July 1, 2018.

The Tribe’s engineer also continues designs of the McLaughlin Pump Station, a pipeline to

Selfridge, and a filer expansion at the Standing Rock water treatment plant.

Spirit Lake MR&I System Construction is complete on the Wood Lake Pipeline project Contract 7-16A. The contract

was awarded to the low bidder; Abbott, Arne, Schwindt, Inc. of Moorhead, MN in the

amount of $890,848.11.

Construction has also been completed for the Highway 57/281 extension project as well as

the BIA 14 Pipeline extension project. Pre-design and rights-of-way acquisition also

continues on several other projects.

The Tribe’s engineering consultant has completed a draft Master Plan update report which

sets priorities and plans construction through the funding of their ceiling, the draft report is

being reviewed by Reclamation.

Fort Berthold Rural Water System (FBRWS) In 2017 a Subsequent Users contract was awarded as an indefinite delivery, location, quantity

contract to connect users to the existing FBRWS throughout the reservation. Numerous

connections were made before winter; with work expected to resume in the spring.

In October 2017 the first of several contracts was awarded for work associated with the new

Twin Buttes WTP. A contract was awarded for the installation of a 12-inch raw water

pipeline from the intake to the new WTP. Work is expected to start in the spring. Another

contract for the construction of the 600 gpm WTP was awarded to Swanberg Construction in

February. Work is expected to begin in the spring. The membrane and pre-treatment

systems contracts were bid previously and awarded.

Other contracts awarded in February 2018 include a Master Meter Procurement contract and

the Mandaree intake landslide stabilization contract. The purpose of the stabilization

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contract is to protect the existing FBRWS intake, booster station, and raw water pipelines

from the naturally unstable slopes (landslide) happening in the vicinity.

Reclamation, IHS, Corps of Engineers, TAT Public Works, and FBRW are also collaborating

on a shoreline protection project at the Twin Buttes and White Shield Intakes.

Turtle Mountain Rural Water System Reservoir B – This contract is being completed with the assistance of the IHS to install a

1 million gallon elevated tank northwest of Belcourt. This tank is designed to replace a

320,000 gallon steel tank which was in need of repair and inadequately sized. The rural

water system demolished the old tank and buried the foundation this summer. The new

elevated tank was advertised in late August 2015, with Landmark announced as the lowest

bidder. Work began in spring 2016 and progressed through to the fall before beginning shut

down for winter weather. Work re-started in the spring of 2017 to elevate and anchor the

bowl and complete the internal and floor painting. Work is mostly complete, with a few of

punch list items remaining.

Highway 43, Corridor 2, Phase II, Contract 1-3 – Phase 2 of the Highway 43, Corridor 2

work which includes approximately 150 service connections to serve the community around

Lake Upsilon. The Public Utilities Commission (PUC) advertised the contract in March

2017 with the contract being awarded to the low bidder, Carstensen Contracting. Carstensen

began work in June with work progressing well throughout the summer and fall. Work is

mostly complete, with a few of punch list items remaining. Design work has begun on a

change order to add additional work to this project with possible construction activities

taking place in the summer of 2018.

BIA 8 Corridor, Contract 1-8 – Contract 1-8 will connect the pressure zone near Reservoir B

with the lower pressure zone near Reservoir C. This project includes approximately 12,740’,

much parallel to existing waterlines. The PUC advertised the contract in March 2017 with

the contract begin awarded to the low bidder, Marion’s Construction. Marion began work in

May and has substantially completed the project, Pre-final inspections completed.

IHS Project AB-16-S73, Gordon Lake Phase 2 – The Gordon Lake Phase 2 project is located

approximately 4.5 miles north of Belcourt along BIA 2. The water main will replace and

upsize existing water lines along approximately 6 miles between BIA 7 and BIA 11. There

are currently 48 homes along the proposed route that would be severed under this project.

The PUC advertised the contract in March 2017 with the contract being awarded to the low

bidder, Marion’s Construction. Work is mostly complete, with a few of punch list items

remaining.

Contract 3-2 Membrane Treatment Improvements - The membrane treatment project will

address the formation of disinfection by-products caused by an organic component in the

source ground water. The PUC began an R/O pilot with Harn in the fall and Nanostone is

completing additional study work this spring.

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Trenton Indian Service Area (TISA) PRV Vault: TISA is working with the IHS on a new project to alter the location of the

existing connection to the city of Williston’s water system. The project proposes to connect

to an existing 36-inch ductile iron mainline as part of the Western Area Water Supply that

runs alongside Trenton’s 10-inch HDPE water main. The project will remove an existing

undersized booster station and install a Pressure Reducing Valve. TISA will remain a

subsequent user to the city of Williston. The project will ensure adequate water supply and

pressure to serve existing and future users in the area.

Principal Supply Works

Snake Creek Pumping Plant Swanberg Construction Inc. of Valley City, ND is near completion for construction on the

Structural Safety Modifications within the plant.

Several safety training exercises are planned at SCPP this year to include confined space

recue, forklift training, and scissor lift training.

Reclamation provided the US Army Corps of Engineers with socioeconomic impacts to the

Garrison Diversion Unit Principal Supply Works associated with the Corps proposed water

control manual reservoir restriction. The Corps proposal is to restrict Audubon Lake head

differential to no greater than 43 feet of Lake Sakakawea.

McClusky and New Rockford Canals An agreement package was submitted February 8, 2018, to Reclamation’s Regional Office

for a new cooperative agreement for OM&R of constructed GDU facilities. Reclamation’s

Regional and Denver Offices will review the package and prepare the new agreement. The

Regional Office has extended the current agreement to September 30, 2018.

Reclamation’s Regional Office also continues to work on a modification to the recently

executed Cooperative Agreement No. R17AC00161 for the McClusky Canal Slide Repairs

to include all work tasks as proposed by Garrison Diversion.

Irrigation Turtle Lake and McClusky Canal Irrigation Areas Reclamation sent letters to the four remaining individual canal-side irrigation contractors that

are expiring in 2018 (two on June 3, one on July 14 and one on December 31). Garrison

Diversion has agreed to incorporate them into their water service and power contracts.

Garrison Diversion requested a modification to their water service contract to include an

additional 1,840.5 acres. Reclamation is preparing NEPA and will begin modifying the

water service contract and project use power contract for irrigation deliveries in 2018.

In 2018, the project use power rate will decrease from 16.17 mills/kWh to 13.70 mills/kWh.

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Standing Rock Irrigation Project The Tribe is working on getting easements to allow for construction of four additional

pivots on their Eagle Irrigation Unit, near Wakpala SD. They are also considering

rehabilitation and expansion of the Porcupine Unit, which was approved but not completed

in 2017. The Tribe has been focusing on using their construction funds to rehabilitate their

existing irrigation rather than expand the acreage. The Tribe rehabilitated their Eagle Unit

pumping plant near Wakpala, South Dakota in 2016 and rehabilitated and relocated the

center pivots in 2017 to increase the irrigated acreage of the Eagle Unit to about 1,000

acres.

Oakes Irrigation Reclamation offered an annual water service contract to Dickey-Sargent Irrigation District

at their March Board meeting. The contract will be the same as prior year contracts,

allowing the District to irrigate up to 5,000 acres.

Recreation Development

In FY18 Reclamation plans to develop a Campground Host Site at Chain of Lakes Recreation

Area to help monitor who is camping and length of stay. Reclamation and GDCD met onsite

and decided to locate the campground host site at East Park Lake. We are working out

details on how best to accomplish this work.

An Eagle Scout project was completed at the Chain of Lakes Recreation Area. This project

included building 10 picnic tables. They were spread throughout Chain of Lakes Recreation

Area.

North Dakota Natural Resources Trust

Nothing new to report.

Wildlife Program Lonetree Routine operation and maintenance continues with cover crops and cattle grazing to control

Kentucky blue grass. Work plans and budgets have been submitted to Reclamation for the

new five-year agreement. No major projects planned for the summer. Submitted request to

Region to extend the current 5-year agreement until September 30, 2018.

Audubon Work plans and budgets have been submitted to Reclamation for the new five-year

agreement.

Arrowwood Work plans and budgets have been submitted to Reclamation for the new five-year

agreement.

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Annex VI 18-114


Scattered Tracts The semi-annual meeting with USFWS, Reclamation, and GDCD was conducted on

March 7 at 10 a.m. via conference call due to weather. All annual narratives were received

for Reclamation review. Work plans and budgets have been submitted to Reclamation for

the new five-year agreement and the request was submitted to Region to extend the current

5-year agreement until September 30, 2018. The annual Dakota Interagency Review Team

Tour is planned for August 27, 2018, and will tour the Bismarck Game and Fish Tracts and

Long Lake.

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Annex VI 18-115

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Annex VII 18-116

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Annex VIII 18-117

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Annex VIII 18-118

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Annex VIII 18-119

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Annex VIII 18-120

1

RRVWSP Work Plan Update March 16, 2018

Goal Spring 2016 Completed Conceptual Design and Cost Estimate Summer 2017 Complete Preliminary Design and Cost Estimate for pipeline and pump

station(s) 2017 - 2018 Complete Phased Final Design and Cost Estimates 2019 - 2027 Phased Bidding and Construction Total draft budget to complete Conceptual, Preliminary and Final designs is $66 million. The ND legislature appropriated $12.359 million for the RRVWSP for the 2015-2017 biennium. The conceptual design phase has been completed; therefore, no further updates will be included in this report. The ND legislature appropriated $30 million for the RRVWSP for the 2017-2019 biennium. Preliminary Design The conceptual design was released in September 2016. The majority of the preliminary design has been completed; of the $10 million cost estimate, approximately $500,000 remains to be expended on the task orders. Moving forward with limited funds, it is cost effective to start project phasing. The Implementation Plan will provide a road map to move forward with items that have to be completed first, which include permit phasing, design phasing, and construction phasing.

Final Design The draft preliminary design is almost complete and was released early October 2017. Moving forward with limited funds, it is cost effective to start project phasing. Priority items to move forward first with final design and construction are discharge structure, trenchless crossings and portions of the intake. 1) Pipeline segment 28 miles – This task order will begin final design on a portion of the RRVWSP and is the first of several pipeline design task orders that will be executed to complete the project. Given the current level of state and local funding allocated for the project’s design and construction, the length of the initial segment selected for final design and preparation of construction contract documents is approximately 28 miles. The general location of the 28-mile pipeline segment is in Foster and Wells Counties. The alignment and limits of the pipeline being designed under this task order are identified on the RRVWSP route overview map. This task order will deliver bid ready documents for this 28-mile segment. Estimated cost is $3,840,000.

Status – The engineering team held a kickoff meeting November 8 starting the final design. The team was in the field reviewing alignment and working with the geotechnical boring team. Letters have been sent to utility companies asking for facility locations and details where crossings might occur.

2) Geotechnical – This task order will allow engineers to drill supplemental borings along the Preliminary Design Report (PDR) pipeline alignment and discharge site and to complete

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Annex IX 18-121

2

laboratory testing of soil samples collected. These supplemental borings are necessary to characterize subsurface soil conditions not covered by the 2008 investigation. Relevant existing soils data from the 2008 investigation will be used to the maximum extent practical to support activities. Estimated cost is $544,000.

Status – Letters to landowners informing them of the upcoming geotechnical work were sent October 17, 2017. Work started October 30, 2017. All borings and soil resistivity tests are complete.

3) Sediment Transport Analysis – This task order will provide information as requested by the North Dakota State Water Commission (SWC) to evaluate the Sovereign Lands Permit for the Missouri River intake, as well as support the overall design of the intake screens. Estimated cost is $396,000.

Status – All field work was completed prior to the river freezing. A request was made to USACE for a river analysis model HEC-RAS.

4) Trenchless Crossings – This task order is for final design of tunneled or trenchless crossings in the first 28-mile section of pipeline selected for final design. The general outcome of this task order will be the preparation of construction contract documents. Estimated cost is $452,000. 5) Discharge Site Structure – This task order is for final design of the discharge structure. The general outcome of this task order will be the preparation of construction contract documents. Estimated cost is $508,000. 6) Land Services – This task order is for survey support services, easement and option acquisition for RRVWSP parcels. The RRVWSP pipeline is separated into segment 1, 2a and 2b, 3 and 4. Authorization has been approved to move forward with only segment 1. Estimated cost for segment 1 is $556,446.

Financial 1) Financial Modeling/Cost Allocation – Financial costs to the local users of the RRVWSP under various funding methods, project implementation scenarios, and cost-share scenarios will need to be evaluated. Financing strategies will be generated from these scenarios. The task order will assist GDCD in this effort. Estimated cost is $363,800.

Status – The cost allocation model was refined to include a tiered allocation structure, which considers how project users will benefit from the project by assessing water supply needs, as well as access to project water. Feasibility and ability to pay studies are being conducted for roughly ten systems - both large and small systems. This work is in conjunction with the work being completed by Ernst & Young Infrastructure Advisors (EYIA).

2) Municipal Advisor – EYIA was selected through an RFP process to provide municipal advisory services for the RRVWSP. In addition, Springsted will be retained on an as-needed basis for the issuance of bonds and related efforts. These firms have a fiduciary responsibility to GDCD. Estimated cost is $374,835.

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Annex IX 18-122

3

Status – EYIA is refining a financial model using capital spend rates based on different financing scenarios and construction periods. The financial modeling includes quantified market risks, costs associated with continued project operations, maintenance and renewal for project long-term and recurring replacement assets. EYIA’s work is jointly occurring and being incorporated into modeling being completed by AE2S and Black & Veatch. The models are reviewed by the LAWA Financial Advisory Committee.

Program 1) Program Management – The overall RRVWSP is expected to spend $30 million in the 2017-2019 biennium and potentially $180 million or more the next biennium. The objective of this task order will support the development and maintenance of a variety of program management support tools to help successfully execute the project. The tools and processes are expected to be developed and implemented during this biennium and be ready to support a significantly increased program size in the following biennium. Estimated cost is $491,000.

Status – Program management meeting #1 focused on all aspects of PM, PM #2 focused on the schedule and other meetings were held developing PM tools and gaining knowledge about program delivery models.

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Annex IX 18-123

Percent

Complete Current Estimate 3/28/2018

Outstanding

Expenses

Conceptual Design Subtotal 100% 5,302,987$ 5,293,596$ 9,391$

Preliminary Design

Missouri River Conventional Intake Design 100% 1,010,416$ 1,010,416$ -$

Pipeline Alignment McClusky to Split & Land Services (ROE) 100% 3,436,073$ 3,433,382$ 2,691$

Pipeline Alignment Washburn-McClusky & Land Services (ROE) 100% 592,433$ 592,433$ -$

Pipeline from Split to Baldhill Creek (RRV) Land Services (ROE) 100% 574,726$ 574,726$ -$

Land Services (Aerial) 100% 259,694$ 259,694$ -$

Main Pump Station and Break Tank 87% 997,267$ 865,012$ 132,255$

StateMod (includes amendments 1 & 2) 52% 422,801$ 221,127$ 201,674$

Pipeline Extensions 96% 627,333$ 601,848$ 25,485$

Discharge Design (Sheyenne/Baldhill) 85% 617,000$ 524,317$ 92,683$ Administration (cost & schedule, communications, LAWA) 89% $ 240,208 212,738$ $ 27,470

Legal 99% $ 375,000 370,283$ $ 4,717

Financial Modeling 100% $ 363,800 363,800$ $ -

Municipal Advisor 100% $ 374,835 374,835$ $ -

Workflow Manager 90% $ 150,000 135,012$ $ 14,988

Preliminary Design Subtotal 95% 10,041,586$ 9,539,623$ 501,964$

Final Design

Engineering

Pipeline Final Design - 28 miles 13% 3,840,000$ 496,908$ 3,343,092$

Trenchless Final Design 11% 452,000$ 51,075$ 400,925$

Discharge Final Design 4% 508,000$ 19,392$ 488,608$

Land Services 10% 556,446$ 57,520$ 498,926$

Geotechnical 51% 544,000$ 280,027$ 263,973$

Sediment Transport 22% 396,000$ 86,704$ 309,296$

Missouri River Intake Final Design Upcoming 1,985,000$ -$ 1,985,000$

Upper Sheyenne Discharge Analysis * 10% 36,723$ 3,774$ 32,949$

Alignment Drone Video Upcoming 58,870$ -$ 58,870$

Easements & Options

Exercise Existing Options Upcoming 2,000,000$ -$ 2,000,000$

Acquire New Options & Easements Upcoming 1,250,000$ -$ 1,250,000$

Financial, Administration, Legal, Etc.

Financial Modeling/Cost Allocation 13% 1,021,047$ 131,212$ 889,835$

Program Management Set Up 62% 491,000$ 302,220$ 188,780$

Administration (communications, LAWA) 0% 550,000$ -$ 550,000$

Stakeholder Support Upcoming 400,000$ -$ 400,000$

Legal 0% 600,000$ -$ 600,000$

Undesignated Upcoming 198,566$ -$ 198,566$

Final Design, Easement & Administration Subtotal 10% 14,887,652$ 1,428,832$ 13,458,820$

Construction

Pipeline Trenchless Construction Upcoming 7,000,000$ -$ 7,000,000$

Discharge Construction Upcoming 2,000,000$ -$ 2,000,000$

Intake Construction Upcoming 4,000,000$ -$ 4,000,000$

Construction Phase Engineering (Trenchless & Intake) Upcoming 500,000$ 500,000$

Construction Subtotal 0% 13,500,000$ -$ 13,500,000$

Total Program Budget 37% 43,732,225$ 16,262,051$ 27,470,173$

check sum 27,470,174$

2015/2017 state appropriation $12,359,000 12,359,000$ difference (0)$

2015/2017 LAWA cost share $1,373,225 1,373,225$

2015/2017 total 13,732,225$ Budget over/short 0$

2017/2019 State Appropriation $30,000,000 30,000,000$

RRVWSP Program Budget 43,732,225$

2017/2019 Appropriation Spent to Date 2,529,826$

2017/2019 Committed Outstanding 8,068,348$

2017/2019 Not Committeed 19,193,870$

* not subject to local cost share

Red River Valley Water Supply Project Planning Level Budget

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Annex X 18-124

March 9, 2018 Arden Freitag Ted Streckfuss US Department of Interior US Army Corps of Engineers Bureau of Reclamation 1616 Capitol Avenue, Suite 9000 304 East Broadway, Suite 110 Omaha, NE 68102 Bismarck, ND 58501

Re: Request for Feasibility Study for Lake Audubon Embankment

Dear Mr. Freitag and Mr. Streckfuss,

The United States Army Corps of Engineers (Corps) recently raised a structural concern with the Lake

Audubon Embankment, an earthen berm between Lake Sakakawea and Lake Audubon on which U.S.

Highway 83 lies and provides a valuable transportation corridor from Canada to Texas and shares land with

an adjacent railroad line. The crux of the concern is that there are two gravel lenses under the embankment

that have pressure relief wells that are reportedly not working adequately. The very purpose of the Lake

Audubon Embankment, which is an integral component of the federal facilities of the Garrison Diversion

Unit, was to allow the water in Lake Audubon to remain at a sufficiently high elevation for water to flow into

the McClusky Canal for the federally authorized purposes. The Corps raised a concern that if the water

differential between Lake Audubon and Lake Sakakawea becomes greater than 43 feet, the Corps questions

whether the resulting pressure on the embankment could cause the embankment and roadway to fail,

assuming the pressure relief wells are not adequately working. It is noteworthy that Garrison Diversion

Conservancy District requested the technical information underlying the Corps concern over the pressure

relief wells and found the responsive information to be of insufficient detail to address a concern of a major

roadway failure.

The Corps initiated an Environmental Assessment in June 2017 to identify an interim solution to assuage

their concerns. Rather than seek a permanent solution, the Corps indicates that the only alternative that is

within its current authorization and budget is an operating restriction requiring Lake Audubon to be lowered

or raised in conjunction with Lake Sakakawea's levels, always remaining within 43 feet of each other's water

surface elevation. The proposed operating restriction is not acceptable to North Dakota, since reducing Lake

Audubon too low will not allow water to flow in the McClusky Canal, which is a vital water supply for many

interests. A dry McClusky Canal negatively impacts domestic water supplies, agriculture, industry, livestock,

recreation, fishing, cabin owners, U.S. Fish & Wildlife wetlands, North Dakota Game and Fish management

areas, McLean County interests and stream augmentation. A dry canal would also increase operation and

maintenance significantly, since the canal's clay liner would dry out and crack, leading to more seepage,

landslides, long-term diminished water quality, and fish kills.

Insufficient water in the McClusky Canal could reduce or eliminate water supplied for existing canal-side

irrigation. Farmers and the State have invested heavily in irrigation equipment for high value crops. The

proposed operating restriction adds significant risk that irrigators will be unable to access water at the very

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Annex XI 18-125

Doug BurgumGovernor

State ofNorth DakotaO f f i c e o f t h e G o v e r n o r

600 E Boulevard Ave. • Bismarck, ND 58505-0001 • Phone: 701.328.2200 • www.governor.nd.gov

time the water is needed most. North Dakota State University is currently drafting a report summarizing the

regional economic impacts if the ability to irrigate is lost. The regional economies will suffer with family

farms potentially lost. One of the authorized purposes of the Garrison Diversion Unit is irrigation, yet

Garrison Diversion cannot encourage irrigation investment and development given the uncertainty that

would result from the Corps' operational restriction.

New industrial development will be at risk. Last winter, Garrison Diversion requested a water supply

contract for 20 cubic feet per second (cfs) from the McClusky Canal, in part to serve as a future water supply

for industrial development in the Spiritwood area near Jamestown. A few years ago, the State lost an

opportunity to locate a $3 billion CHS nitrogen fertilizer facility in the Spiritwood area, due in part to the lack

of a reliable water supply. The requested 20 cfs water contract from the Bureau of Reclamation is intended to

provide a reliable water supply for additional industrial development in central North Dakota. The Bureau of

Reclamation released an Environmental Assessment on the proposed water contract for 20 cfs in early

August 2017. The Corps' suggested interim measure will make it more difficult to attract water-intensive

businesses like CHS due to the continued uncertainty in the reliability of a water supply.

Garrison Diversion may also request another possible water contract from the McClusky Canal to obtain 165

cfs of water as an option for the Red River Valley Water Supply Project (RRVWSP), which is a municipal,

rural and industrial water delivery system that will provide a supplemental water supply to over 350,000

people. The RRVWSP would save $171 million in construction costs and $3 million to $4 million annually in

operating costs if the McClusky Canal is used as a water source rather than requiring an additional 30 miles of

pipeline and the pumping costs required for the current plan, which obtains water directly from the Missouri

River. As such, the Corps' operating restriction, with potential to limit the ability to access a water supply for

half of the state's population for domestic and industrial uses, causes significant additional expense for

RRVWSP and unacceptable risk for RRVWSP stakeholders.

An interim operating restriction is no solution; it creates a host of other issues. The Corps also acknowledges

that the interim solution will likely continue indefinitely, as there would be little inertia to develop and

establish a permanent solution. It is of the utmost importance to the State that the technical basis for the

Corps' concerns is sound and that we can work together to find a permanent solution.

I understand there is precedent to have a three-party agreement between the State, the Corps and the Bureau

of Reclamation to cost share in the development of a feasibility study that would identify the technical

information underlying the Corps' concern, as well as develop needed permanent solutions. On behalf of the

citizens of North Dakota, I request that we move forward with a cost share agreement for a three-party

feasibility study.

I look forward to your positive response.

Sincerely, Doug Burgum Governor cc: Brenda Burman, Commissioner, Bureau of Reclamation Garrison Diversion Conservancy District

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Annex XI 18-126

Documents

GARRISON DIVERSION CONSERVANCY DISTRICT BOARD OF …considered at the Executive Committee in June with a recommendation to the full board in July. Board Policy Review - - Chairman