MINUTES OF THE DRINKING WATER BOARD TELECONFERENCE HELD ON AUGUST 2, 2007 IN SALT LAKE CITY, UTAH

 

Board Members Present                      Staff

 

Anne Erickson, Ed.D., Chair              Ken Bousfield

Myron Bateman, Vice Chair               Ken Wilde

Jay Franson                                         Steve Onysko

Paul Hansen                                        Kim Dyches

Petra Rust                                           Bob Hart

David Stevens, Ph.D.                         Linda Matulich

Ron Thompson                                   

                                                            Guests

Board Members Excused                   

                                                            Ed Hansen, Magna Water

Ken Bassett                                         Leisle Lane, Magna Water

Daniel Fleming                                    Dale Pierson, Rural Water Association

Helen Graber, Ph.D.                           Randy Taylor, P.E., District Engineer

Richard Sprott                                    Marc Edminster, Lewis Young

                        John Futton, Various Water Companies

                                                            Shariyo Patwardhan, Various Water Co.

 

ITEM 1 – CALL TO ORDER

 

            The Drinking Water Board convened via Teleconference in Salt Lake City, Utah with Chairman Erickson presiding.  The meeting was called to order at 3:00 p.m.

 

ITEM 2 – ROLL CALL

 

            Chairman Erickson asked Ken Bousfield to call roll of the Board members.  The roll call showed there were 6 members present.

 

ITEM 3 – INTRODUCTIONS

 

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

 

ITEM 4 – MAGNA WATER COMPANY/DISTRICT

 

            Ken Wilde reported the Magna Water Company District’s water improvement project is scheduled to close on August 7, 2007 for $12.1 million in loans authorized by the Water Quality Board and the Water Resource Board.  The Magna Water Company District has acquired $25,640,000 in funding which includes some of their own contributions.  The Magna Water Company District is approximately $503,771 short of having the money they need for the project. 

           

Ken Wide reported the Magna Water Company District closed a $1,000,000 loan in 1997 with the Drinking Water Board.  The Magna Water Company District agreed to establish a Repair and Replacement Reserve Fund, and build it up to have about $2.5 million in the fund.  The Magna Water Company District has $1.2 million in the Repair and Replacement Fund right now.  The Magna Water Company District needs a letter from the Drinking Water Board stating they may use the $504,000 from the Repair and Replacement Fund, leaving them about $700,000 left in Fund.  The Magna Water Company District also requested that the Drinking Water Board allow them to use the $700,000 balance to cover contingencies, if needed. 

           

Ed Hansen addressed the Board.

           

Ken Wilde said the proposal is for the Drinking Water Board to authorize the Magna Water Company District to use $503,771 from the Repair and Replacement Reserve Fund to pay for the actual construction. 

           

Ken Wilde reviewed the staff recommendations with the Drinking Water Board.  Ken Wilde mentioned the second sentence in item # 1 could be deleted, reviewed the funding request in item # 2, and the last sentence in item # 3 may not be needed.

           

Discussion followed.

           

Paul Hansen moved the Drinking Water Board:  1) Authorize the Magna Water Company (District) to spend $503,771 from their 1997 Repair and Replacement Reserve Fund for construction of the Water Treatment Plant Project.  2) Not set a limit on the balance of the Repair and Replacement Reserve Fund, but allow the District the option to use the remaining reserve funds as needed on the project, however require that the District submit payment requests to the Board for approval.  3) Require the District to continue building up the Repair and Replacement Reserve Fund at a rate of 5% (of its drinking water system operation and maintenance budget) annually, as required by the 1997 bond.  4)  Require the District to use interest earned on Drinking Water Board funds on the project only and not on any “non-project” facilities. 

           

Ronald Thompson seconded.

 

Chairman Erickson asked for a roll call vote:

 

Ann Erickson – Yes       Paul Hansen – Yes    Ron Thompson – Yes  

Myron Bateman – Yes     Petra Rust – Yes     Jay Franson – Yes     David Stevens – Yes

 

                                                                                                CARRIED

                                                                                                (Unanimous)

 

ITEM 5 – BODY POLITIC ISSUE

 

            Ken Bousfield introduced the Body Politic issue, by referring to an e-mail Fred Nelson sent to the Board members an attached copy of the Attorney General’s opinion on proceeding with the Rule requiring a Body Politic for water systems.  Ken also mentioned that the Attorney Generals opinion should be held confidential since there may be some questions relative to the authority of agencies other than that held by the Board and staff.

 

            Ron Thompson mentioned in light of some of the legal issues brought up on the proposed Body Politic Rule, the Board should hold an Executive meeting to discuss the issues and not do this in an open meeting.

 

            Discussion followed.

 

            Jay Franson moved the Board hold an Executive Meeting before the Board meeting at 1:00 p.m. on September 14, 2007 to discuss the legal issues on the Body Politic Rule.

 

            Ron Thompson seconded.

 

            Chairman Erickson asked for a roll call vote: 

 

Anne Erickson – Yes                Paul Hansen – Yes     Ron Thompson – Yes

Myron Bateman – Yes     Petra Rust – Yes     Jay Franson – Yes     David Stevens – Yes                                                                                           

CARRIED

                                                                                                (Unanimous) 

ITEM 6 – NEXT BOARD MEETING

 

            The next Board meeting will be held on September 14, 2007 at Jordan Valley Water Conservancy District.  There will be a tour of Jordan Valley’s water conservation garden, an Executive Board Meeting, lunch, and the Board meeting.

 

ITEM 7 – OTHER

 

            Kim Dyches updated the Board on the flooding in the Gunlock area.

 

ITEM 8 – 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 3:45 p.m.

 

Paul Hansen seconded.

 

                                                                                                CARRIED

                                                                                                (Unanimous)

 

                                                                                                                Linda Matulich

                                                                                                            Recording Secretary