MINUTES OF THE DECEMBER 10, 2004 DRINKING WATER BOARD MEETING HELD IN SALT LAKE CITY, UTAH
Board Members Present Guests
Dale Pierson, Chairman Eric Johnson, Smith Hartvigsen
Anne Erickson, Vice Chairman Scott Hacking, DEQ
Myron Bateman Randy Williams, Salt Lake Health Dept.
Jay Franson Rod Mills, Nolte/CICWCD
Laurie McNeill Scott Wilson, CICWCD
Nancy Melich John Davis, Summit WDC
Dianne Nielson, Ph.D. Mark Davidson, Sunrise Engineering
Petra Rust Richard Fountain, Jr., PacifiCorp
Chris Webb Reed Bodell, KYCC
Ken Mitchell, Park City
Board Members Excused Kent Cashel, Park City
Kathy Dunks, Park City
Charlie Roberts Jerry Gibbs, Park City
Ronald Thompson Marie Owens, Metropolitan WDSLS
Mark Clark, Weber Basin WCD
Staff Blair Blonquist, Brigham City
Bruce Leonard, Brigham City
Kevin Brown Clyde Watkins, Rural Water Association
Ken Wilde Craig Collett, Daggett County
Ken Bousfield John Chartier, Sunrise Engineering
Rich Peterson Dale Berg, Twin Creek SSD
Mark Foster Doug Nielsen, Sunrise Engineering
Ying Ying Macauley Chuck Dickison, Mayor, Town of Manila
Tim Pine Stephen Platt, CICWCD
Linda Matulich Russ Donoghue, Rural Water Association
Paul Wilson, Twin Creeks
Bruce Chesnut, Orem City
Sheridan Hansen, Central Iron CCD
Kristine Parker, Zions Bank
The Drinking Water Board convened in Salt Lake City, Utah with Chairman Pierson presiding. The meeting was called to order at 1:05 p.m.
ITEM 2 – ROLL CALL
Chairman Pierson asked Kevin Brown to call roll of the Board members. The roll call showed there were 9 members present at the time.
ITEM 3 – INTRODUCTIONS
Chairman Pierson welcomed everyone and asked the guests to introduce themselves.
ITEM 4 – APPROVAL OF MINUTES – OCTOBER 8, 2004
Chairman Pierson stated a motion to approve the October 8, 2004 minutes would be in order.
Chris
Webb moved the Board approve the October 8, 2004 minutes.
Myron Bateman seconded.
CARRIED
(Unanimous)
ITEM 5 – SRF/CONSERVATION COMMITTEE REPORT
1) Status Report
Ken Wilde reported staff received the first 4 months of 2005 sales tax revenue, in the amount of $1.4 million, of which $422,000 will be placed in the grants fund of the State SRF program.
Kanarraville, under the State SRF loan program, wasn’t ready to close their loan 4 – 5 weeks ago, so the paperwork was not signed at that time. Ken said Kanarraville’s loan would close officially on Monday, December 13, 2004.
Ken Wilde reported there is $11,000,000 available in the Federal SRF program, of which $1.3 million is in the hardship grant fund and $2.8 million is in the repayments fund.
2) Federal SRF Applications
a) Project Priority List
Mark Foster reported two new projects have been added to the list: Woodland/Kolob Acres and the Town of Manila. Woodland/Kolob Acres scored 15.6. Woodland/Kolob Acres will present their request to the Board at the next Board meeting, pending approval of the Project Priority List today.
Myron Bateman moved the Board approve the updated Project Priority list.
Dale Pierson seconded.
(Unanimous)
b) Orem City
Mark Foster reported Orem City is working on a tank project and a large concrete reservoir in a joint agreement with the Central Utah Water Conservancy District. The arrangements for the joint agreement have taken a little longer than expected. Orem City is requesting an extension on their loan closing date, due to the delay. Initially, the extension request was for one year. Orem City and Central Utah Water Conservancy District have come up with a final contract agreement since the SRF Conservation Committee met two weeks ago.
Bruce Chesnut, Orem City representative, addressed the Board.
Jay Franson moved the
Board authorize the extension of the loan closing to August 12, 2005. All of the other terms of the loan will
remain the same to the $3,000,000 loan at 1.48% for 20 years with no principal
forgiveness.
Nancy Melich
seconded.
CARRIED
(Unanimous)
c) Twin Creeks Special Service District
Ying Ying Macauley reported Twin Creeks Special Service District received a loan authorization through the federal SRF program on April 11, 2003 for $450,000 at 0% including 20% ($90,000) principal forgiveness. The district hasn’t been able to close their loan yet, because of a water rights issue they are working on. The SRF/Conservation Committee is recommending the Board authorize an extension on their loan closing to close by December 31, 2005.
Dale Berg, Twin Creeks Special Service District representative, was available for any questions from the Board.
Laurie McNeill moved
the Board authorize the SRF/Conservation Committee’s recommendation of an
extension to allow the loan to close by December 31, 2005.
Myron Bateman
seconded.
CARRIED
(Unanimous)
d) Brigham City
Mark Foster reported Brigham City is requesting a change in their scope of work to allow them to use the additional remaining money toward their project. Brigham City was more efficient in their first project, and was able to save some of the money. Brigham City would like to spend all of the money that was loaned. Brigham City has five items on their priority list. Brigham City would prefer to use the money on developing an exploratory borehole analysis. The Board did not want to fund fluoridation equipment replacement. The Board felt the City should cover that cost out of their normal operating budget.
Blair Blonquist, Brigham City representative, addressed the Board.
Discussion followed.
Jay Franson moved the
Board approve the drilling of an 8-inch exploratory borehole at Flat Bottom
Canyon and to either develop the well for production or use the remaining funds
for items 1, 2, 4, and 5 listed on their priority list.
Chris Webb seconded.
CARRIED
(Unanimous)
e) Manila Town
Mark Foster reported Manila requested a grant three months ago of $300,000 to complete improvements on their water system, including the merging of the Manila water system with the Daggett County water system. Manila’s request was presented to the SRF/Conservation Committee a couple of weeks ago. The Committee preferred to not give out all grants. The Committee felt a combination of grants and loans would be more appropriate.
Mark Foster reviewed the four funding options. Since the SRF/Conservation Committee meeting, Manila has completed some financial calculations to see if one of the four recommendations would be more affordable.
Chuck Dickison, Mayor of Manila, and Craig Collett, Commissioner, addressed the Board.
Doug Nielsen and Mark Davidson, Sunrise Engineering, were available to answer any questions for the Board.
The Town of Manila has a request with the CIB for the same project.
Some background information was given on Manila’s water system project.
Discussion followed.
Jay Franson amended his motion
to include his request and that it is contingent upon CIB’s funding. If the $300,000 isn’t available, if there is
some way for staff to balance out the loan, allowing people involved to crunch
some numbers, and after the CIB process is through, then come back to the
Drinking Water Board and approve the final numbers.
Dianne Nielson reseconded.
Ken Wilde mentioned if there isn’t a loan, then Manila wouldn’t qualify as a disadvantaged community, as the payments would drop below the 1.75% of the MAGI, and they wouldn’t qualify because of the MAGI is greater than 80% of the state’s MAGI. Later, after staff reviewed this issue using a laptop, Ken said it appeared they would still qualify as a disadvantaged community.
Tim Pine mentioned what the CIB could possibly do on Manila’s request.
Discussion followed.
Chris Webb moved for a substitute motion to adopt the recommendation of the funding package # 2, with the option that the Town of Manila can come back to the Board in January 2005 with an option that the Board considers changing the interest rate. The Town of Manila will go to the CIB with $800,000 from the Drinking Water Board, knowing Manila has a $300,000 grant, and $500,000 at 2.88%, and depending on the package Manila gets from the CIB, that Manila comes back to the Drinking Water Board in January 2005 to discuss the interest rate after knowing what CIB’s decision is on Manila’s application.
Discussion on motion.
Dale Pierson seconded.
Six voted no.
Four voted yes.
Jay
Franson restated his motion that the Board approve a $300,000 grant from the
Federal SRF money contingent upon action from the CIB Board, this is part of a
$2,200,000 project, of which $662,000 will be repaid to the Drinking Water
Board immediately, and the consolidation of two water districts, pending the
Drinking Water Board’s action. This
motion is contingent upon CIB funding and that the Drinking Water Board asks
the CIB if there is someway to include some loan component so the Division of
Drinking Water can do some work between now and when the CIB meets to make
their decision. If this can’t happen,
the Drinking Water Board will look at CIB’s authorization and see what the
terms are at that time. The Drinking
Water Board will make a final vote on the findings from the CIB’s decision.
Anne Erickson restated Jay Franson’s motion.
Discussion on motion.
Motion carried.
Eight voted yes.
One voted no.
3) State SRF Applications
a) Central Iron County Water Conservancy District
Rich Peterson reported the Central Iron County Water Conservancy District is located in Cedar City. The District currently does not serve culinary water to anyone yet. The District is planning on doing a basin wide water study, which will include 28 private water companies in their district. The District is looking at Fifetown as one of the water companies. Fifetown is the worst drinking water system on the 25 worst drinking water systems list. The District is looking for a $50,000 planning loan. The District has $5,000 they will put toward the planning study. The District would like a grant. The SRF/Conservation Committee recommended a $45,000 planning loan, which could be rolled into future funding. Staff has already received the preliminary calculations of over $10,000,000 for the project.
Scott Wilson, Executive Director of the Central Iron County Water Conservancy District, addressed the Board.
Steve Platt and Sheridan Hansen, of the District, were available for any questions of the Board.
Rod Mills, consulting engineer from Nolte, was also available for any questions of the Board.
Scott Wilson gave some background information on their project to the Board.
Scott Hacking, District Engineer, addressed the Board.
Discussion followed.
Chris Webb seconded.
(Unanimous)
Ken Bousfield introduced the Park City Antimony issue and reported that the Board had previously made a determination with Alta and Salt Lake County Service Area # 3 that the Antimony levels similar to those found in Park City’s Spiral Tunnel source did not pose an unreasonable risk to public health.
Kathy Dunks and Ken Mitchell, Park City representatives, reported on past activities and future plans to install Antimony treatment.
Kent Cashell, Park City representative, was also available to answer any questions of the Board.
Petra Rust moved the Board
express their intent to grant an extension of the Antimony exemption and direct
staff to work with Park City on facilitating the public comment requirements in
connection with the extension.
Anne Erickson seconded.
CARRIED
(Unanimous)
ITEM 7 –
OPERATOR CERTIFICATION COMMISSION RENEWALS
Dale Pierson called for
a motion on the staff’s recommendation that the Board authorize renewal of 3
Operator Certification Commission members’ terms for another 3-year term.
Chris Webb moved the Board
approve Craig Fahmi, Mark Clark and Arnold Smith, of the Operator Certification
Commission, to serve another 3-year term.
Laurie McNeill seconded.
CARRIED
(Unanimous)
Myron Bateman left.
ITEM 8 –
CROSS CONNECTION CONTROL COMMISSION RENEWALS
Dale Pierson called for a motion on the staff’s recommendation that the Board authorize: 1) approval of Gary Jenkins and Ken Orton to serve another 2-year term, 2) replace Tom Lewis with Dan Smith to serve a 2-year term, and 3) add Tim Collings and Boyd Reschke to serve a 2-year term.
Anne Erickson moved the Board approve Gary Jenkins and Ken Orton to serve another 2-year term, replace Tom Lewis with Dan Smith to serve a 2-year term, and add Tim Collings and Boyd Reschke to serve a 2-year term.
Petra Rust seconded.
(Unanimous)
ITEM 9
–ARSENIC MCL COMPLIANCE USING POINT-OF-USE DEVICES
Ken Bousfield reported that the new MCL for arsenic would dramatically and adversely affect the small water systems. The list of systems that are known to exceed the standards show a number of very small systems on it. The monthly water rate increase for the small systems will be several hundreds of dollars a month on a rate increase to come into compliance with the rule if central treatment is constructed to remove the arsenic. Ken stated that the cost increase for small systems made a very compelling case for the allowance of POU devices.
Ken gave some background information on the Division’s implementation strategy for the arsenic rule. Staff requested direction from the Board at the meeting with the intent that staff comes back to the Board with a proposed rule at a later meeting.
The Board discussed each of the 5 questions that were listed in the packet and offered their comments and concerns to staff on these questions.
Ken Wilde mentioned
staff is requesting this agenda item be moved to the January 18, 2005 Drinking
Water Board meeting.
Jay Franson seconded.
(Unanimous)
ITEM 11 –
APPROVAL OF 2005 DRINKING WATER BOARD SCHEDULE
Chairman Pierson moved this agenda item be addressed before agenda Item 10.
Anne Erickson requested changing the January 14, 2005 Board meeting to January 18, 2005.
Petra Rust requested changing the July 8, 2005 Board meeting to July 15, 2005.
Discussion followed.
No other changes were made.
Chairman Pierson stated
a motion was in order to approve the 2005 Board meeting schedule with the two
requested changes.
Chris Webb moved to approve the 2005 Drinking Water Board Schedule with the two changes of: move the January Board meeting to January 18, 2005 and move the July Board meeting to July 15, 2005.
Petra Rust
seconded.
CARRIED
(Unanimous)
ITEM 12 –
CHAIRMAN’S REPORT
a) Water Funding Task Force Discussion – Ron Thompson
No update.
b) January Drinking Water Board Training Meeting Agenda Items – Dale Pierson
Dale Pierson mentioned there will be a work meeting at the January 18, 2005 Board meeting. Some ideas for discussion purposes for the work meeting are: security, secondary water and review of the funding guidelines. Also, any other items that the new Board members feel that they can be updated or educated on, etc.
Dale mentioned at the National Rural Water Conference and the last Rural Water Association Board meeting it was mentioned several times that the Rural Development also fund water and wastewater systems and also going to look at a security requirement for homing in their new applications.
Dale felt the Drinking Water Board should look at something similar. Stakes are in an interesting place. Kevin won’t see the systems vulnerability assessment. We need some type of a sign off sheet from the new applicants that they have done such a thing.
Dale mentioned Chris’ point was well taken, and the Board needs to look at the funding policy guidelines.
If the Board members have any recommendations for the morning work session, please call Dale or Kevin and let them know your issues.
Dianne mentioned that the November 18, 2005 Board meeting day is the same day that the Water Quality Board meeting is scheduled. It would be a good idea to have a joint board meeting with the Water Quality Board that same day.
Kevin said he and Walt Baker have been talking about having a joint Board meeting and will have the two Board Chairmen discuss this issue.
c) Quality Growth Recognition Update – Anne Erickson
Anne Erickson gave the Board an update on this item.
a) Twenty-Five (25) Worst Water Systems List Update
Kevin Brown mentioned the 25 worst drinking water systems updated list is in the packet. Staff is making some progress on this list.
Discussion followed.
b) Customer Survey Results
Kevin Brown mentioned he sent out 50 customer surveys and received 37 surveys back. Over 80% of the surveys were either in the strongly agree or agree columns. There are some areas that staff will be working on to improve.
Discussion followed.
c) Calendar Year Summary of Events
Kevin Brown mentioned he keeps a month-by-month tabulation of most of the activities that are on going in the Division. There is a lot more going on in the Division than what is on the list. The list is just a summary of some of the events that have taken place this last year.
d) Bilateral Compliance Agreement Between the Executive Secretary to the Drinking Water Board and the Community of Garden City in Rich County, Utah
Kevin Brown asked Ken to stand up for a round of applause for what he has accomplished in getting the Bilateral Agreement signed.
e) Division Christmas Luncheon – December 14, 2004
Kevin Brown mentioned that the Division will be having their annual Christmas party and awards,
Kevin invited the Board members to the party.
f) Staff Recruiting Status
Kevin Brown reported Merrit Neff would become a permanent employee on December 18, 2005. Merrit has been a temporary employee filling in while Mark Foster was on military leave. Michael Pfeiffer will be back with the Division on December 18, 2005. Michael is filling James Brough’s vacancy.
We are in the process of hiring a Ground Water Rule Manager. The Ground Water Rule Manager will be in the Compliance Section. This position will fill the replacement of Bob Lowe, in the Special Services Section, who retired in June. This position will be on board in the January/February timeframe.
g) Planning and Zoning Water Approval
Kevin Brown mentioned about a year ago, the Division of Drinking Water and the Division of Water Quality were part of a work group to discuss the issue of all of the developments that take place and are approved at the planning commission meetings and county or city council level without any type of water approval or wastewater approval upfront. The goal of this committee was to try to figure out how to get involved in the preplanning approval process, so that the local water authority can sign off saying the entity does have water and/or sewer capabilities. The only time when the water people are involved is when the construction part of the project starts. The committee has been working for the better part of a year to work out the legislative language changes. About two months ago the committee found out that another part of the League of Cities and Towns, in conjunction with a legislative group, has been doing a parallel program. The two groups got together on this project. It looks like the local water and wastewater groups will be part of the subdivision approvals in the future.
Discussion
followed.
ITEM 14 –
NEWS ARTICLES
The news articles are in the packet.
ITEM 15 –
LETTERS
The letters are in the packet.
ITEM 16 –
UPDATE
The update is
in the packet.
ITEM 17 –
NEXT BOARD MEETING
The next Drinking Water
Board meeting is scheduled for January 18, 2005 at the Division of Drinking
Water offices in Salt Lake City. There
will be a working meeting in the morning.
ITEM 18 –
OTHER
No other business.
ITEM -
ADJOURN
Chairman Pierson stated a motion to adjourn the meeting was in order.
Chris Webb moved to adjourn the meeting at 4:15 p.m.
Laurie
McNeill seconded.
CARRIED
(Unanimous)
Linda Matulich
Recording Secretary