INCLINE VILLAGE, Nev. — The general improvement district board meeting Wednesday night might have shined a light on a greater problem with internal management and controls within the district after many issues were discussed in regards to the Mountain Golf Course Path Replacement Project.

Trustee Sarah Schmitz pointed out that there were many mishaps within the project already that needed to be addressed prior to continuing further work.

“It seems clear that we are unclear as far as what the contractor actually did,” Schmitz said.

After pointing out what she felt were many inconsistencies with the report from the contractor, Schmitz addressed two wider-scale problems that were echoed throughout the entire meeting.

“What this report really shows is that all of the statements that Moss Adams made in their report that was delivered to us in about December of last year, it appears as though those improvements to controls of the contract haven’t been put into place,” Schmitz said. “I think this has given us an idea of a breakdown of our internal controls, everything from the financing and contract signing processes through the bid processing. So I think this is an unfortunate situation.”

Amendments to the original bid on the project in March 2021 were removed from the agenda for the night following the agreement that an internal look at the work completed by Lumus and Associates needs to be performed.

Schmitz pointed out the positive in the situation.

“It appears as though we all understand that we need to improve our internal controls,” she said.

Chairman Tim Callicrate put in his own thoughts following the General Manager updates and questions.

“We aren’t there, but we’re getting there,” said Chairman Callicrate. “This is an unfortunate situation in how things rolled out. But we need to take and rectify the best means possible for the district moving forward on this, making sure that what was done has been cataloged and verified, and then any reduction on the contractual price where appropriate action needs to take place.”

The Utility Fund Analysis presentation by IVGID Director of Finance Paul Navazio showed that there is a need to get back to the basics in terms of working capital management, along with the management of many key capital projects and utility programs. Navazio ended with suggesting the next steps be completing a fiscal year 2020/21 end of year financial audit, along with reviewing the financing place for the Effluent Pipeline Project, which was reported to have $11.56 million reserved, which fits within the current IVGID budget.

One consent calendar item which would have potentially awarded an additional contract for the pipeline project, was removed from the agenda in order to gain more understanding of what’s needed for the project going forward, and the best way to finance it.

Additionally, IVGID General Manager Indra Winquest’s potential 3% salary increase consent item was moved to general business for discussion, as requested by Schmitz.

When moving into general business, Navazio’s presentation was echoed through conversation about revisions to policies touched on in his presentation, including the Fund Balance Policy, Working Capital Policy, and Capitalization Policy. This item was discussed individually between Navazio and each Trustee prior to the meeting, and Navazio reported positive feedback.

The next general business item discussed involved the procurement of a contract to replace up to 80 golf carts for the Championship Course in Incline Village. Director of Golf and Community Services Darren Howard advocated for the agenda item, with a presentation from Navazio that gave a summary of various proposals for the golf cart bids.

“Based on the review of the proposals, particularly what was provided in the bids, it’s staff’s recommendation to accept Club Car, LLC’s as the low-bid vendor,” said Navazio.

Staff also recommended that rather than buying the fleets, it would be beneficial to do a 54-60 month lease, which is a cost of around $77,000, and would require staff to come back to the board in order to approve the lease once it’s fully drafted with Club Car.

There were multiple other purchase and lease options to consider that were presented to the board, but Schmitz questioned if there was any way to keep half of the older fleet in order to potentially save money. She suggested non-residents could use the newer golf carts, while card holders could potentially use the older golf carts in order to help save.

Warren, Trustee Tim Calicrate, and Navazio all agreed that idea would not go well with Incline Village residents.

After a lengthy discussion, it was voted on to accept the low-bid quote from Club Car and to continue pursuing a long-term lease, which will be brought back to the board at a future meeting.

The meeting ended with the moved agenda item in regards to a potential 3% merit salary raise for the General Manager Winquest, and a one year extension to his contract which was scheduled to end in July of 2023. The amendment to his contract would continue his employment through 2024.

Trustee Matthew Dent suggested the Winquest should receive a review prior to deciding to extend his contract, which was echoed by Schmitz. After discussion, it was decided that the amendment to Winquest’s contract would be approved, meaning he would receive a 3% salary merit increase.

Additionally, his contract was extended through 2024, with amended language to the amendment that states his contract extension is contingent on a review prior to next year, to which his progress must satisfy the board.