MINUTES OF THE DRINKING WATER BOARD MEETING HELD ON JANUARY 12, 2007 IN SALT LAKE CITY, UTAH

Board Members Present Board Members Excused

Anne Erickson, Ed.D., Chair Daniel Fleming

Myron Bateman, Vice Chair Ronald Thompson

Ken Bassett

Jay Franson, P.E. Guests

Helen Graber, Ph.D. Richard Ahlers, Centerfield City

Paul Hansen, P.E. Darwin Jensen, Centerfield City

Laurie McNeill, Ph.D. Rick Wheadon, Carollo Engineers

Dianne Nielson, Ph.D. Karl Houskeeper, Wellington City

Petra Rust Kelly Roberts, Austin SSD

Curtis Ludvigson, Rural Water Association

Staff Jerry Mason, Dugway Proving Ground

Steve Sheffey, Dugway Proving Ground

Ken Bousfield Erin Borger, Rural Water Association

Ken Wilde Colin Hirayama, Metropolitan Water District

Rich Peterson Darin Robinson, Jones & DeMille Engineers

Karin Tatum Brian Harris, Clyde Company, Inc.

Bob Hart Fred Nelson, Attorney Generals Office

Julie Cobleigh Janae Wallace, UGS

Mike Grange Mike Lowe, UGS

Don Lore Brad Nelson, Weber Basin Water CD

Sandy Pett John Iverson, Sunrise Engineering

Linda Matulich Craig Johansen, J&T Engineering

Ken Powell, Wellington City

ITEM 1 – CALL TO ORDER

The Drinking Water Board convened in Salt Lake City, Utah with Chairman Erickson presiding. The meeting was called to order at 1:00 p.m.

ITEM 2 – ROLL CALL

Chairman Erickson asked Ken Bousfield to call roll of the Board members. The roll call showed there were 8 members present.

ITEM 3 – INTRODUCTIONS

Chairman Erickson welcomed everyone and asked the guests to introduce themselves.

ITEM 4 – APPROVAL OF THE MINUTES

Chairman Erickson stated a motion to approve the Minutes of November 17, 2006 and December 8, 2006 would be in order.

December 8, 2006 Minutes:

Laurie McNeill moved to approve the December 8, 2006 Drinking Water Board minutes.

Myron Bateman seconded.

CARRIED

(Unanimous)

November 17, 2006 Minutes:

Laurie McNeill moved to approve the November 17, 2006 Drinking Water Board minutes.

Ken Bassett seconded.

CARRIED

(Unanimous)

ITEM 5 – SRF/CONSERVATION COMMITTEE REPORT

1) Status Report

Ken Wilde reported that the Board has a -$14,426 in the State SRF Hardship Grant Loan Fund, which does not include projected cash payments. The State SRF program has $2.0 million available to use now. The state funds used to match the FY 2007 federal capitalization grant have already been deducted from the balance. Staff anticipates that the State SRF program will receive about $7.2 million over the next 12 months.

Ken mentioned the Federal SRF Loan has $1.7 million available cash. There is another $12 million for projects that haven’t closed yet. There is $14 million dedicated to 7 projects that haven’t closed yet. There is $16 million that is either in the bank or from loans that haven’t closed yet.

Staff is talking to some of the systems on how soon they can get their money committed so they can start their projects. If the systems can’t commit to a starting date on their projects, staff may need to take some of the money back and use it for systems that are ready to start their projects.

Staff should receive another $11,890,217 over the next 12 months for a total of $14,000,000 that will be available to use during the next 12 months.

2) State SRF Applications

a) Wellington City – Julie Cobleigh

Julie Cobleigh reported Wellington City is requesting a planning loan in the amount of $40,000 to perform a municipal water source master plan. Wellington City provides water rights to Price River Water Improvement District (PRWID) to treat water and sell the water back to Wellington City. The user rates have increased between $5 and $10 effective January 1, 2007. The proposed master plan for Wellington City would research the feasibility and options for developing their own water system. The SRF Conservation Committee had some concerns about the project.

Julie Cobleigh mentioned David Ariotti, P.E., District Engineer, had some concerns about the project, and asked the Board to address them. Mr. Ariotti requested the Board not authorize the loan to Wellington City.

Paul Hansen joined the Board meeting.

Mayor Karl Houskeeper, Ken Powell, and Craig Johansen, representing Wellington City, addressed the Board.

Discussion followed.

The Board said it needed more information, especially about the impacts of a possible construction project on Price River Water Improvement District. The Board requested that specific information be provided by the Price River Water Improvement District regarding the financial impacts of Wellington City having the District.

Anne Erickson moved the Board table Wellington City’s request, and have Price River Water Conservancy District present at the next Board meeting on March 2, 2007.

Helen Graber seconded.

CARRIED

Eight voted yes: Anne Erickson, Myron Bateman, Ken Bassett, Helen Graber, Paul Hansen, Laurie McNeill, Dianne Nielson, and Petra Rust.

Jay Franson opposed.

b) Austin Special Service District – Mike Grange

Mike Grange reported Austin Special Service District is requesting a $14,000 planning loan at 0% for 5 years to help develop a culinary water system master plan, with the option to roll the balance of any loan principle into a future construction loan at the interest rate established when the construction project is authorized. The planning loan will help the District address current and future needs and what facilities will allow the District to meet the needs of the community.

The SRF Conservation Committee discussed options for regionalization to be investigated and include the findings in the Master Culinary Water System Master Plan.

President Kelly Roberts and Darin Robinson, representing Austin Special Service District, addressed the Board.

Discussion followed.

Jay Franson moved the Board authorize a $14,000 planning loan at 0% for 5 years with the condition the District look at investigating regionalization with the Elsinore and/or Monroe water systems on the backup supply issue, correct the deficiencies as shown on the attached compliance report, and to complete the “Special Conditions” listed on page 3 of the report. The annual loan repayment of $2,800 is to begin one year from the date the loan agreement is signed.

Paul Hansen seconded.

CARRIED

(Unanimous)

3) Federal SRF Applications

a) Centerfield City – Bob Hart

Bob Hart reported Centerfield City is requesting a $50,000 planning grant to complete a well siting study to avoid nitrate contamination in the Centerfield, Mayfield and Gunnison area. The total amount of the study will cost $100,000. The Utah Geological Survey is paying for the other half of the study.

EPA Region VIII requested a study before approving the grant. When the grant is approved, the grant money will come from the State Tribal Assistance Grants Program to install a treatment system.

Mayor Darwin Jensen, John Iverson, and Mike Lowe, representing Centerfield City, addressed the Board. Mayor Jensen mentioned they are looking at doing some regionalization.

Discussion followed.

Anne Erickson moved the Board authorize a $50,000 planning grant to Centerfield City to complete the additional study items requested by EPA Region VIII.

Laurie McNeill seconded.

CARRIED

(Unanimous)

ITEM 6 – APPROVAL OF THE MOUNTAIN VIEW COMMUNITY PARK, LLC FINDINGS

AND ORDER REGARDING NOTICE OF COLLECTION OF STIPULATED

PENALTIES

Anne Erickson reported on the Findings and Order document on the Public Hearing for Mountain View Community Park is being presented to the Board for review.

Fred Nelson addressed the Board. His office prepared the document for review, approval and obtaining signatures.

Discussion followed.

Myron Bateman moved the Board authorize approval of the Findings and Order regarding the Notice of Collection of Stipulated Penalties document. Anne Erickson’s name needs to be added to the document as for voting in favor of the motion.

Jay Franson seconded.

CARRIED

(Unanimous)

ITEM 7 – APPROVAL OF A NEW OPERATOR CERTIFICATION COMMISSION MEMBER

Ken Bousfield mentioned that Arnold Smith (Morgan City) is retiring. Arnold Smith represents the Rural Water Association of Utah on the Operator Certification Commission. Staff is requesting the Board approve Gary Larsen to replace Arnold Smith on the Operator Certification Commission. One term is for 3 years.

Paul Hansen moved the Board authorize Gary Larsen to replace Arnold Smith on the Operator Certification Commission for one 3 year term.

Laurie McNeill seconded.

CARRIED

(Unanimous)

ITEM 8 – STATUS REPORT: RULES AND LEGISLATIVE ACTIVITIES

Ken Wilde reported on the proposed rule changes and legislative amendments.

1. The Minimum Pressure Amendment will become effective on January 1, 2007.

2. The Political Subdivision Amendment was placed in the December 15, 2006 Bulletin.

3. A copy of the Draft Legislative Action document is in the Drinking Water Board packet. The Office of the Legislative Research and General Counsel revised the document. The Legislative Research and General Counsel had a conference call with Walt Baker (Water Quality Director), Craig Silotti (DEQ Finance Manager), Fred Nelson (Attorney General For Environmental Affairs), staff members from each office, and staff members from the Division of Drinking Water on December 12, 2006. Ken went over the amendments.

Discussion followed.

ITEM 9 – CHAIRMAN’S REPORT

Chairman Erickson reviewed the renewal process, which is listed in the Board packet. Danny Fleming is finishing Dale Pierson’s term. Ron Thompson, Laurie McNeill and Petra Rust are finishing their first term. Danny Fleming was asked to submit an application for his first term. Ron Thompson, Laurie McNeill and Petra Rust were asked to submit an application for their second term. An instruction sheet on how to apply on-line is in the packet. The Board members can apply on-line or request Linda’s assistance.

Chairman Erickson mentioned the state statute has a requirement that the Board hold annual elections for Chairman and Vice Chairman. Chairman Erickson reviewed the election process with the Board. The elections will be placed on the agenda for the March 2, 2007 Board meeting.

Curtis Ludvigson, Rural Water Association, updated the Board on the various activities that are happening with Rural Water.

ITEM 10 – DEQ EXECUTIVE DIRECTORS REPORT

Dianne Nielson updated the Board on the filling of the Division Director’s position, which was vacated when Kevin Brown resigned. The date for accepting applications for the position has closed, and interviews are being set up. Dianne will let the Board know when the interviews will be held, if any one is interested in being in on the interview process.

Dianne Nielson mentioned the Department just published a “Utah Report on the Environmental Book” for 2006. A copy of the book was handed out to the Board members. The book is available on DEQ’s website also.

The book will be published, and the website will be updated yearly. There will be a new article in the book each year. The Department has a leadership forum, which put the book together. Kate Johnson, representing Drinking Water, is on the leadership forum.

ITEM 11 – DIRECTORS REPORT

a) Top Twenty-Five (25) Drinking Water Systems List (handout)

Ken Bousfield handed out the Top 25 Drinking Water Systems List. Fifetown was listed as number 1 on the previous list, but is no longer on the list as Central Iron County Water Conservancy District has taken over Fifetown’s water system.

Staff is expecting Erda Acres to present a master plan application at the next Board meeting on helping the West Erda Improvement District out.

b) Board Member Renewals (in the packet)

Chairman Erickson addressed this tab item under Item 9.

c) Five (5) Year Review of Rules

Ken reported on staff’s intent to submit the necessary filings to enable continuance of the Board’s rules as required every five years.

d) DEQ Document Management Contractor

Ken reported that the Division would be proceeding with an electronic document management system.

e) Arsenic Exemption Status Report (in the packet)

Ken Bousfield reported on the status of the Arsenic Exemptions.

f) Rural Water Conference Annual Convention

Ken Bousfield updated the Board on logistic issues related to the Rural Water Conference.

ITEM 12 – NEWS ARTICLES

The news articles are in the packet.

ITEM 13 – LETTERS

The letters are in the packet.

ITEM 14 – NEXT BOARD MEETING

The next Board meeting is scheduled for March 2, 2007. The Board meeting will be held with the Rural Water Association of Utah’s 2007 Annual Conference in St. George, Utah. The meetings will be at the Dixie Center. The Board meeting will be in the Entrada Room. The meeting will start at 1:30 p.m.

ITEM 15 – OTHER

No other business.

ITEM 16 – ADJOURN

Chairman Erickson stated a motion to adjourn the Board meeting would be in order.

Jay Franson moved to adjourn the Drinking Water Board meeting at 2:40 p.m.

Motion was seconded.

CARRIED

(Unanimous)

Linda Matulich

Recording Secretary