MINUTES OF THE DRINKING WATER BOARD MEETING HELD ON MARCH 3, 2006 IN ST. GEORGE, UTAH
Board Members Present Guests
Continued
Anne Erickson, Chairman Jim
Milligan,
Myron Bateman, Vice Chairman Larry
Gilson,
Ken Bassett
Daniel Fleming Neil Forster,
Jay Franson Marv
Helen Graber Gerd
Paul Hansen Brian Deeter, JUB Engineering
Laurie McNeill George Leetham,
Ron Thompson Keith Hanson, Salt
Steve
McIntosh, Salt
Board Members Excused Dan
McArthur, Mayor,
Curtis Ludvigson, Rural Water
Dianne Nielson Barry Barnum, St. George
Wayne Thomas, Alpha Engineering
Staff Dustyn
Shaffer,
Jason Snedaker, JUB Engineers
Kevin Brown Jason
Burningham,
Ken Wilde David
Robertson,
Ken Bousfield Spencer
Kyle,
Rich Peterson John
Chartier,
Karin Tatum Darrell
Holden,
Tim Pine Patricia
Holden,
Linda Matulich Gary Larsen, Millville City
Mike
Johnson,
Guests Bonnie Carrig, Rural Development
Ken
Leetham,
Roger Foisy, DEQ Marc Edminster, Lewis Young
Mark Haik, self Doug Nielsen, Sunrise Engineering
Randy Taylor, DEQ David Blodgett, Southwest Health
Scott Hacking, DEQ Hal Nielson, Rural Development
Vern Steel, Rural Water Michael
Noel, Kane
ITEM 1 – CALL TO ORDER
The
Drinking Water Board convened in
ITEM 2 – ROLL CALL
Chairman Erickson asked Kevin Brown to call roll of the Board members. The roll call showed there were 8 members present at the time.
Dale Pierson addressed the Board on the Rural Water Association of Utah’s Annual Conference activities this past week.
Chairman Erickson presented Dale Pierson with a plaque, from the Board and Staff, and thanked him for his time and service on the Board. Dale was with the Grand County Water Conservancy District during his tenure on the Board. Dale is the new Executive Secretary of the Rural Water Association, replacing Russ Donoghue. Russ Donoghue retired December 2005.
Dale Pierson thanked the Board and staff.
Ron Thompson and Helen Graber joined the meeting.
Chairman Erickson welcomed Dan McArthur, Mayor of St. George. Mayor McArthur served on the Drinking Water Board as a member and Chairman.
Dan
McArthur thanked the Board for their help last year for
Dan McArthur also thanked the Board for their help and assistance with the drinking water systems throughout the state on their water projects. Dan mentioned he enjoyed the time he was on the board, and misses the association with the Board.
ITEM 3 – INTRODUCTIONS
Chairman Erickson welcomed everyone and asked the guests to introduce themselves.
Chairman Erickson introduced Daniel Fleming and Paul Hansen as new Board members. Chairman Erickson asked them to give some background information on themselves.
ITEM 4 – MINUTES – JANUARY 13, 2006
Chairman Erickson stated a motion to approve the January 13, 2006 minutes would be in order.
Petra Rust moved to approve the January 13,
2006 minutes.
Laurie McNeill seconded.
CARRIED
Seven voted yes.
Helen Graber, Paul Hansen and Daniel
Fleming abstained.
ITEM 5 – ALTA AND SALT
Ken Bousfield reported at the January 13, 2006 Board meeting, that Alta and Salt Lake County Service Area # 3 – Snowbird sent in an application for a Variance on Antimony. At that meeting, staff reported on the compelling reasons to do so, as well as establishing that there is not an unreasonable risk to public health in allowing them more time. The Board directed staff to proceed with a public comment period. Staff received one letter, which is in the packet, for the Board to review.
Chairman Erickson opened the Board
meeting up for public comments on the Board’s intent to issue a Variance for
Antimony to the Town of
Mark Haik, property owner in the
Town of
Ken
Bousfield handed out some information staff received from the Mayor of the Town
of
Chairman
Erickson read the letter they received from the Mayor of Alta for the record. A copy of the letter will be placed in the
permanent Board meeting file for review from the public. Keith Hanson, representing both the Town of
Discussion followed.
Keith Hanson, Salt Lake County Service Area # 3 representative, addressed the Board. Keith answered questions asked by the Board.
Mr. Haik gave some final comments.
Myron Bateman moved the Board grant a Variance
for Antimony to the Town of Alta and to the Salt Lake County Service Area # 3 –
Snowbird for a period of two years with the provision that each utility prepare
an annual report to staff describing any research, testing, blending options,
or literature reviews conducted during the 24 months time period.
Ron seconded.
CARRIED
(Unanimous)
Ken Bassett asked staff if the Board
could receive a copy of the Town of
Ken Bousfield mentioned he would provide copies to the Board.
ITEM 6 – EFFECTIVE DATE FOR THE MINIMUM WATER PRESSURE
RULE AMENDMENTS
Ken Wilde reported the Board reviewed the Minimum Water Pressure Rule Amendments at the last two Board meetings. The amendments are on Section R309-105-9 of the Rule. The other amendments are in Sections -150-6, -405-4, -510-9, -540-6, -545-7, and -550-5 of the Rule were for simplicity rather than restating the Rule as the current one. The public comment period ended on January 31, 2006. The recommendation is for the Board to select February 1, 2006 as an effective date for the amendments, and authorize staff to proceed with the necessary filing. The Board can select any date they want that fell between February 1, 2006 and May 15, 2006.
Discussion followed.
Ron Thompson moved the Board set March 1,
2006 as an effective date for the amendments, and authorize staff to proceed
with the necessary filing.
Jay Franson seconded.
CARRIED
(Unanimous)
ITEM 7 SRF/CONSERVATION COMMITTEE REPORT
1) Status Report
Ken Wilde mentioned Sandy Pett has
been preparing the Capitalization Grant and Intended Use Plan, which are listed
in Section 9.
Ken said the State Loan Fund has $4,469,000 and the grant money is only $173,000 which brings the total to $4,641,000 for the State Loan Fund account. These are projected amounts only. Staff will be receiving $8.6 million over the next 12 months.
Ken said the Federal SRF Loan Fund has $6,531,000 in principal payments. The interest has increased to $468,612. The Hardship Fees have also increased. Staff has $1.3 million available to use, of which staff has a total of $9,275,000. The Capitalization Grant will have a little more than $8 million in the account. Some loans are scheduled to close soon.
2) State SRF Applications
a) Town
of
Rich Peterson handed out a
supplemental request on
Gary Larsen, Mike Johnson, Jason
Burningham, and David Robertson, representing
Discussion followed.
Ron Thompson seconded.
CARRIED
(Unanimous)
b) Vernon Special Service District
Rich Peterson reported the Board
authorized Vernon Special Service District a loan of $346,000 and a grant of
$345,000 at the January 13, 2006 Board meeting, with the condition that Vernon
Special Service District comes back to the Board with a new total for their
loan to help them to be able to increase the size of their transmission line to
provide adequate fire flow.
Darrell Holden and Patricia Holden, representing Vernon Special Service District (SSD), and the engineering firm representative for Vernon SSD, were available for questions from the Board.
Discussion followed.
Ron Thompson moved the Board authorize an increase of the January 2006 authorization with a $391,000 grant and a $686,000 loan at 0% interest to be repaid over 30 years, with a secondary option to allow for a smaller project of a $431,000 grant and a $379,000 loan at 2% interest for 25 years, (equivalent to $346,000 grant and $464,000 loan at 0% interest for 25 years) on the condition that they resolve the appropriate issues on their compliance report.
Discussion on motion.
Anne Erickson seconded.
CARRIED
(Unanimous)
c) Town
of
Rich Peterson reported that
John Pitcher,
Discussion followed.
Jay Franson moved the Board authorize an increase from the Board’s January
18, 2005 authorization grant to $118,000 and the loan to $185,000 at 0%
interest to be repaid over 20 years on the condition they resolve the
appropriate issues on their compliance report.
Ken Bassett seconded.
CARRIED
(Unanimous)
3) Federal SRF Applications
a) Project Priority Point List
Karin Tatum reported that 2
projects are being added to the Project Priority List:
Ron Thompson moved the Board approve the updated Project Priority List.
CARRIED
(Unanimous)
b)
Karin Tatum introduced the representatives
from
Jim Milligan, Larry Gilson, Gerd
Dixon, Spencer Kyle, Ken Leetham, George Leetham,
Discussion followed.
Laurie McNeill moved the Board authorize Saratoga Springs a $3,500,000
loan at 3.2% interest repayable over 20 years for the construction of a new
storage tank and two distribution lines, and that they resolve the appropriate
issues on their compliance report and include the special conditions as
noted: 1) The City of Saratoga Springs
needs to update their Preliminary Evaluation Report for Well # 7 (05), Well # 8
(07) to the Drinking Water Source Protection Plans. 2) Past due monitoring on Well # 1 (Nitrate),
Well # 2 (Inorganic, Nitrate, VOC’s, and Pesticide), Well # 3 (Inorganic,
Nitrate and Pesticide), Well # 4 (Nitrate, Nitrite and Pesticide). Remain current with the monitoring
requirements. 3) Well # 2 needs an air
relief valve on discharge piping. 4)
Reservoir # 1 (750,000 gallons). 5)
Reservoir # 2 (1,500,000) drain needs 12” free fall at the discharge
point.
Danny Fleming seconded.
CARRIED
(Unanimous)
c)
Karin Tatum reported
Barry Barnum,
Discussion followed.
Ron Thompson moved the Board deauthorize the emergency loan to
Ken Bassett seconded.
CARRIED
(Unanimous)
d) Kane County Water Conservancy District
Karin Tatum reported Kane County Water Conservancy District is requesting financial assistance in the form of $2,250,000 principle forgiveness and $3,990,000 loan for the construction of a new well, a new pumping and chlorination facility, distribution lines, and refinancing of a 2003 loan from the USDA – Rural Development for $1,740,600 (40 years at 4.5% interest). The terms of the loan, including the additional USDA – Rural Development portion, will be for 30 years with a hardship grant assessment of 1% interest. The consulting engineers evaluated 3 collection system alternatives.
Michael Noel, Kane County Water Conservancy District representative, and Doug Nielson, Marv Wilson and Dustyn Shaffer, Sunrise Engineering representatives for Kane County Water Conservancy District, were available for any questions from the Board. Bonnie Carrig and Hal Nielson, from Rural Development, were also available for any questions from the Board.
Michael Noel gave some background
on Kane County Water Conservancy District’s drinking water system. Their goal is to combine the 11 individual
water companies, and create one drinking water system serving
Discussion followed.
Ron Thompson moved the Board authorize the financial assistance request
to Kane County Water Conservancy District for a hardship grant in the amount of
$2,250,000 with principle forgiveness and a $3,990,000 loan for the
construction of a new well, a new pumping and chlorination facility,
distribution lines, and the refinancing of a 2003 loan from USDA – Rural
Development for a hardship grant assessment of 1% interest for 30 years, and
the special conditions of: 1) As part of the facility planning, Kane County
Water Conservancy District must complete a water conservation and management
plan, and 2) remain current with the monitoring requirements including 5 lead/copper
samples and IOC’s, NO3 & VOC’s on Well # 2.
Discussion on motion.
Paul Hansen seconded.
CARRIED
(Unanimous)
ITEM 8 – CHAIRMAN’S REPORT
a) New Board Members
Chairman Erickson introduced the two new Board members at the beginning of the Board meeting. Daniel Fleming and Paul Hansen addressed the Board at that time, and were welcomed aboard.
Chairman Erickson acknowledged David Blodgett, the new Executive Director of the Southwest District Health Department.
Chairman Erickson thanked staff for making the Board’s work a lot easier to accomplish at the Board meetings.
ITEM 9 – DIRECTORS REPORT
a) 2006 DWSRF Capitalization Grant Application and Intended Use Plan
Kevin Brown reported on the 2006 Capitalization Grant Application and Intended Use Plan (IUP). A copy of the document is in the packet. The Division is submitting the Intended Use Plan and the 2006 Capitalization Grant Application to EPA for the $8.3 million grant money. Kevin gave the Board some background on the IUP and application process.
b) Legislative Session Highlights
Kevin mentioned he put formed a task force group of water industry people. The Task Force will look at how the Division could generate more general revenue, or address the Legislature next year on receiving additional funds to cover the additional program administrative costs.
Kevin mentioned that the House and
the Senate are supporting the
Discussion followed.
c) Staff Update (Organizational Chart)
Kevin Brown mentioned that a new Division Organizational Chart is in the packet. Kevin updated the Board on new staff members.
d) 25 Water System List
Kevin Brown reported the new list is in the packet.
Discussion followed.
e) Database Status
Kevin Brown reported that staff is looking at having their new database on-line by March 2006 at the last Board meeting. Kevin said he will give an update at the next Board meeting on the status of the new database.
ITEM 10 – NEWS ARTICLES
The news articles are in the packet.
ITEM 11 - LETTERS
The letters are in the packet.
ITEM 12 – UPDATE
The update is in the packet.
ITEM 13 – NEXT BOARD MEETING
The next Board meeting is scheduled for May 11, 2006 at the Dugway Proving Ground Facilities. There will be a tour of the facilities in the morning, lunch and the Board meeting starting at 1:30 p.m. The Board members can meet at the Division offices to go in the van to Dugway or meet at Dugway.
ITEM 14 – OTHER
No other business.
ITEM 15 – ADJOURN
Chairman Erickson stated a motion to adjourn the Board meeting would be in order.
Myron Bateman seconded.
Linda Matulich
Recording Secretary