MINUTES OF THE DRINKING WATER BOARD MEETING HELD ON NOVEMBER
16, 2007 IN
Board Members Present Guests
Anne Erickson, Chair Glen Mann, Hach
Myron Bateman, Vice Chair Falk Hegewald, Erda Acres Water
Daniel Fleming
Jay Franson, P.E. Lee Cammack, Woods Cross City/JUB
Helen Graber, Ph.D. Scott Anderson, Woods Cross City
Paul Hansen, P.E. Jonathan Ward, Woods Cross City
David Stevens, Ph.D. Kevin
Brown,
Ron Thompson Doug Nielsen, Sunrise Engineering
Board Members Excused Staff Continued
Richard Sprott Ken Bousfield
Ken Wilde
Staff Julie Cobleigh
Karin Tatum
Kate Johnson Rich Peterson
Linda Matulich
ITEM 1 – CALL TO ORDER
The
Drinking Water Board convened in
ITEM 2 – ROLL CALL
Chairman Erickson asked Ken Bousfield to call roll of the Board members. The roll call showed there were 10 members present.
ITEM 3 – INTRODUCTIONS
Chairman Erickson welcomed everyone and asked the guests to introduce themselves.
ITEM 4 – APPROVAL OF MINUTES
Chairman Erickson stated a motion was in order to approve the October 12, 2007 minutes.
Petra Rust moved to approve the October 12,
2007 minutes.
Daniel Fleming seconded.
CARRIED
(Unanimous)
ITEM 5 – SRF/CONSERVATION COMMITTEE REPORT
1) Status Report – Ken Wilde
Ken Wilde reported the Board has a fund balance of minus $1,081,983 in the State Loan Funds, and a fund balance of $18,986 in the State Hardship Grant Funds. The total in the State Loan and the State Hardship Grant Funds do not include the projected cash payments from borrowers or loan funds that have not been disbursed as of September 30, 2007. The balance shows a negative balance in the fund of $1,062,997.
Ken mentioned with the project repayments that will be received from October 1, 2007 through September 30, 2008 will give the Board a balance of $6,581,948 for funding of projects through September 30, 2008.
Ken mentioned as of September 30, 2007 the Board has a balance of $1,503,093 in the Federal SRF funds and will have projected funding in the amount of $1,503,093 to authorize through September 30, 2008.
Ken reviewed the projects that have been authorized, but have not been funded yet from the State and Federal programs.
2) Federal SRF Applications
a) Erda Acres Water Company – Karin Tatum
Karin Tatum reported that the Erda Acres Water Company is requesting a Construction loan in the amount of $1,210,000 at 2.0% repayable over 20 years and a grant for $1,210,000 to construct a new storage tank, upgrade the transmission line, upgrade and put in new distribution lines, rehabilitation of two wells, and a chlorination facility.
Discussion followed.
Falk Hegewald and Kevin Brown, representing Erda Acres Water Company, addressed the Board.
Paul Hansen requested that Erda Acres Water Company update their Master Plan.
Paul Hansen moved the Board authorize the SRF Committees recommendation
and grant a $2,120,000 construction loan at 0% interest repayable over 30 years
with $500,000 principle forgiveness to Erda Acres Water Company, with the
condition that Erda Acres increase their impact fees appropriately, repay 60%
of the impact fees collected that exceed the amount of the fees estimated in
the Growth Projection spreadsheet, and allow a modified repayment schedule as
shown in the packet. Era Acres Water
Company will also adhere to the other special conditions outlined in the
packet.
The special conditions read as
follows:
1.
Address the
appropriate issues on their Compliance Report.
2.
The
Parameters Resolution will need to reflect the Impact/Connection Fees totaling
$5,000 per connection.
3.
Erda Acres
Water Company does not currently have enough water rights to provide water to
all of the projected users over the life of this loan. It is recommended that the “water company
require new developers to furnish a minimum of 1.5 acre feet of water per
connection as stated in the Culinary Water Master Plan. The Master Plan uses 400 gpd for indoor water
use and 1/3 acre for outdoor watering.
The water rights required per connection may be adjusted for smaller lots.
4. The calculations are based on a conservative growth rate of 3.5%, which is 50% of the engineer’s estimate (7%). If Erda Acres Water Company sees additional growth, the annual payments will be increased. A proposed impact/connection fee of $5,000 is recommended with the connection fee portion being approximately $3,000. It is also proposed that 60% of the collected impact fees that exceed the estimate in the Growth Projection Spreadsheet will be repaid to the Board as early repayment in case growth exceeds the proposed 3.5 % rate. This will be included in the terms of the bond documents.
CARRIED
(Unanimous)
b)
Michael Grange
reported that
Discussion followed.
Gary Ureck, Lee
Cammack, Scott Anderson, and Jonathan Ward, representatives for
Daniel Fleming moved the Board authorize a
$5,000,000 construction loan at 3.49% interest for 20 years to
Paul
Hansen seconded.
CARRIED
(Unanimous)
ITEM 6 – ACCESS TO SOURCE PROTECTION ZONES
Kate Johnson reviewed the source protection program on what is being done and what has been accomplished. There is a lot of concern on who should have access to the projection zones if they are entered in the computer or reviewing the files. This program has a lot of sensitive areas to cover on reviewing any of the material that can be found, what material should be listed, and what material should be protected, if the material is listed on the computer.
Discussion followed.
ITEM 7 – APPROVAL OF THE 2008 MEETING SCHEDULE
Ken Bousfield reported the 2008 Board Meeting schedule was reviewed at the last Board meeting. There is one change. The combined Board meeting with the Water Quality Board on November 15, 2008 will be moved to November 21, 2008.
Ken Bousfield recommended the Board approve the 2008 Board Meeting Schedule and the 2008 SRF/Conservation Committee Meeting Schedule.
Jay Franson moved the Board approve the 2008 Board Meeting Schedule and
the 2008 SRF/Conservation Committee Meeting Schedule.
Ken Bassett seconded.
CARRIED
(Unanimous)
ITEM 8 – CHAIRMAN’S REPORT
Chairman Erickson asked each Board member to give some background information on themselves to acquaint Dr. Stevens with each Board member.
ITEM 9 – DIRECTORS REPORT
a) Rural Water Association of Utah’s 2008 Annual Conference
Ken Bousfield updated the Board on the 2008 Rural Water Association’s Annual Conference. Linda will be getting with the Board members on the hotel arrangements and the registration for the conference.
b)
Ken Bousfield updated the Board on the 2008 Utah Water Users Workshops. Linda will be getting with the Board members on the hotel arrangements and the registration for the conference.
ITEM 10 – NEWS ARTICLES
The news articles are in the packet.
ITEM 11 – LETTERS
The letters are in the packet.
ITEM 12 – NEXT BOARD MEETING
The next
Board meeting will be held on January 11, 2008 at 168 North 1950 West, Room
101,
ITEM 13 – OTHER
Helen Graber asked about the 2008 Agreement with the Rural Water Association of Utah and what is happening on the agreement.
Chairman Erickson updated the Board on the agreement.
ITEM 14 – ADJOURN
Chairman Erickson stated a motion to adjourn the Board meeting was in order.
Myron Bateman seconded.
CARRIED
(Unanimous)
Linda Matulich
Recording Secretary