MINUTES OF THE DRINKING WATER BOARD MEETING HELD ON
SEPTEMBER 14, 2007 IN
Board Members Present Staff
Anne Erickson, Chair Kenneth Bousfield
Myron Bateman, Vice Chair Kenneth Wilde
Daniel Fleming Steve Onysko
Jay Franson Rich Peterson
Helen Graber Karin Tatum
Paul Hansen Julie Cobleigh
David Stevens Nagendra Dev
Richard Sprott Linda Matulich
Ron Thompson
Board Members Excused Guests Continued
Ken Bassett
Brian Tenney, Journey Team
Guests Dianne
David Hartvigsen, Smith Hartvigsen
Owen Howell, Whispering Pines Fred Nelson, Attorney Generals Office
Eugene Rino, Whispering Pines George Cruz, Bureau of Land Mgmt.
Gary Frandsen, Snowville Dale Pierson, Rural Water Association
Lynn Wall, Wall Engineering Bill Bigelow, Bear River WCD
Doug Nielsen,
Steve Sheffey, Dugway Justin Gough, Novotx, LLC
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.
Chairman Erickson extended a welcome to Dr. David Stevens, a new member of the Drinking Water Board.
Dr. Stevens gave some background information on his education and work.
Chairman
Erickson thanked the staff of the Jordan Valley Water Conservancy District for
the very informative tour of their new
ITEM 4 – APPROVAL OF MINUTES
Chairman Erickson stated a motion was in order to approve the minutes of the July 13, 2007 and the August 2, 2007 Drinking Water Board meetings.
August 2, 2007:
Paul Hansen proposed an alternate motion he made at the August 2, 2007 Drinking Water Board teleconference meeting as follows:
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 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.
Ken Wilde mentioned in “ITEM 2 – ROLL CALL”, 6 members are listed as being present during roll call. It should read 7 members were present during roll call instead.
Myron Bateman moved the Board approve the minutes of the August 2, 2007
Drinking Water Board Teleconference meeting with the changes mentioned above.
CARRIED
(Unanimous)
July 13, 2007 Board Meeting:
Paul Hansen seconded.
CARRIED
(Unanimous)
ITEM 5 – SRF/CONSERVATION COMMITTEE REPORT
1) Status Report – Ken Wilde
Ken Wilde reported the Board has $208,000 in the State SRF program. The principle fund has a minus of $267,095, and $475,493 in the State Hardship Grant fund. There is a list of target dates for closing some projects soon in the packet. The planning loans/grants are merely a formality on the community signing the paper and staff signing the agreement paperwork. The Circleville loan closed on August 2, 2007.
Ken Wilde reported staff changed the format on the Federal SRF program to be more understandable. Ken mentioned the Board has $9,500,000 in the Federal SRF program to use for loans. Ken mentioned the Board will receive $13,000,000 in grant, interest and principal payments over the next 12 months. There is a list of authorized projects in the packet that haven’t closed yet.
2)
SRF Applications
a) Emergency Funding Deauthorization – Ken Wilde
Ken Wilde mentioned the Board
authorized $1,300,000 to some of the communities in the
Ken Wilde reported staff is
requesting the Board deauthorize any remaining funds of the $1,300,000
earmarked for the emergency flooding in
Ronald Thompson moved the Board deauthorize any remaining funds of the
$1,300,000 earmarked for the emergency flooding in
Jay Franson seconded.
CARRIED
(Unanimous)
b) Town
of Paragonah – Planning Loan – Rich Peterson
Rich Peterson
reported the Town of
Doug Nielsen,
Sunrise Engineering representing the Town of
Jay Franson moved the Board authorize a
planning grant of $16,250 to partially fund their master plan. The Town needs to provide or secure the other
$16,250, The Town needs to prepare a
bacteriological sample site while completing their planning study.
Daniel Fleming seconded.
CARRIED
(Unanimous)
c) Whispering
Pines Water Company – Michael Grange
Michael Grange reported the Whispering Pines Water Company is a privately owned water company. Whispering Pines Water Company is requesting $222,000 in financial assistance from the Board to perform a well step drawdown and constant rate tests, install two new well pumps, a telemetry system, and the required meters, valves, pressure gages and sample taps at each well.
Michael mentioned their MAGI is 79% of the State MAGI. After the completion of their project, the monthly water bill will be $36.23, which is equal to 1.59% of their local MAGI.
Michael mentioned the Whispering Pines Water Company’s $222,000 request will be at 3.19% for 20 years on the condition the company can demonstrate having the technical, managerial and financial capabilities they are required by the Capacity Development program.
Owen Howell, Eugene Rino and Lynn Wall, representing Whispering Pines Water Company, addressed the Board.
Discussion followed.
Jay Franson moved the Board continue the Whispering Pines Water Company’s
request to the next Board meeting on October 12, 2007. The Whispering Pines Water Company’s engineer
and staff will review their storage requirements and complete the Assessment.
Whispering Pines Water Company will work with Division of Water Rights
staff and the Division of Drinking Water staff on their proposed project request. Ken Bousfield will write a letter to the
Division of Water Rights asking them to work with the Whispering Pines Water
Company and the Division of Drinking Water on their construction loan request
for their proposed project.
Discussion on motion.
Paul Hansen seconded.
CARRIED
(Unanimous)
d) Snowville
Water Works – Julie Cobleigh
Julie Cobleigh reported Snowville Water Works is requesting $40,000 to cover increased construction costs. Currently, they have a $650,000 Loan at 0.0%, which resulted in an average monthly water bill of $58.19, which is, or 2.83% of the local MAGI. The project is near completion. They only have the wellhouse and a portion of the water line to complete. The wellhouse came in over budget. The estimated cost of the wellhouse, the waterline and engineering contracts, including contingencies, exceed the current budget by $110,000. They have secured $70,000 in grant money from Rural Development. The SRF Conservation Committee recommends the Board authorize a $40,000 loan at 0% interest with 100% principle forgiveness.
Gary Frandsen, representing Snowville Water Works, addressed the Board.
Discussion followed.
Daniel Fleming moved the Board authorize a $40,000 loan at 0.00%
interest with 100% principle forgiveness to Snowville Water Works.
CARRIED
(Unanimous)
e) Bear
River Water Conservancy District – Rich Peterson
Rich Peterson reported the Bear River Water Conservancy District (WCD) covers all of the Box Elder County. Bear River WCD’s regionalization project consists of a water storage tank and a transmission line. The cost of the project is over $2.8 million. Bear River WCD is contributing $480,000. The District currently serves 118 residential retail customers. They also serve approximately 10,000 wholesale customers.
Voneene Jorgensen and Bill Bigelow, representing the Bear River Water Conservancy District, answered questions from the Board.
Discussion followed.
Ronald Thompson moved the Board authorize the Bear River Water
Conservancy District a $1,800,000 loan at 2.19% for 20 years, and a $600,000
grant for the South Willard project with an $18,000 loan original fee, with the
condition that the District increase their impact fees appropriately and repay
60% of the collected impact fees for new connections that exceed growth
projections as shown in the packet, and allow for a modified repayment schedule.
Discussion on motion.
Daniel Fleming seconded.
Ronald Thompson amended his motion to also include that the Bear River
Water Conservancy District keep the first $500,000 of impact fees to pay for a
second well that would include any backup sources.
Daniel Fleming seconded.
CARRIED
(Unanimous)
Chairman Erickson welcomed Dianne Nielson to the Board meeting. Dianne Nielson recently transferred from the Department of Environmental Quality (DEQ) to the State Energy Office. She was the Director of the Department of Environmental Quality. She is now the Director of the State Energy Office.
Chairman Erickson presented Dianne Nielson with a plaque and a Pepperidge Farm gift basket. Chairman Erickson thanked Dianne Nielson for her dedication and years of service as the Director for DEQ and a member of the Drinking Water Board.
Dianne Nielson thanked the Board and staff.
Rick Sprott left the Board meeting.
ITEM 6 – RULE R309-352 – NON SUBSTANTIVE RULE REFERENCE CHANGE
Steve Onysko reviewed the rewording and non-substantive changes in Rule R309-352 – Capacity Development Program. There are a number of non-substantive changes on language and structure in the Rule.
Steve mentioned he would come back to a future Board meeting and review the substantive changes that he plans to make in the Capacity Development Rule.
Ken Wilde gave some background information on the Capacity Development Rule.
Discussion followed.
Petra Rust moved the Board authorize staff to proceed with filing all
of the non-substantive changes in Rule R309-352 - Capacity Development Rule,
with the exception of Section R309-325-6 – Minimum Capacity Required for
Financial Assistance Under Provisions of R309-351 R309-700 and -705.
Discussion on motion.
Paul Hansen seconded.
CARRIED
(Unanimous)
The Board authorized Steve to proceed with filing all of the non-substantive changes to Rule R309-352 with the exception of Section R309-325-6. Steve will proceed with filing the changes to Rule R309-352-6 later.
Rick Sprott joined the Board meeting.
ITEM 7 – RULE REVISIONS: R309-700 AND R309-705
Ken Wilde reported that Rule R309-705 – Federal SRF Loan Program does reference the Capacity Development Program.
Ken reviewed the proposed rewording of Rule R309-700 and Rule R309-705 – SRF Loan Programs. Ken requested some direction from the Board before submitting the changes made to Rule R309-700 and -705.
Discussion followed.
The Board directed Ken to make some changes in Rule R309-700 and -705 – Federal SRF Loan Program, and bring them back for approval at the next Board meeting.
Fred Nelson left the Board meeting.
ITEM 8 – CHAIRMAN’S REPORT
Chairman Erickson asked the Board members to e-mail Ken Bousfield on any agenda items for the October 12, 2007 Board work meeting.
Chairman Erickson invited the Board members to inform the Chair of their interest in replacing Laurie McNeill on the SRF/Conservation Committee’s via e-mail.
ITEM 9 – DIRECTORS REPORT
a) DDW’s Source Protection Grant Application
Ken Bousfield reported the Division has submitted two applications for the enhancement of the State Source Protection program. Staff became aware of $8,000,000 that has become available from EPA to be used for Source Protection. The award would be given in two separate categories: 1) Capacity Development and 2) Source Protection. Capacity Development would have $5,000,000 and Source Protection would have $3,000,000 available to use, if we get them.
Ken said they envision using a
partnership approach in bringing the Source Protection program up to the next
level. Most of
Ken reviewed what staff has accomplished in the Source Protection program, and what staff will be doing with the water systems in the Source Protection program.
b) A 40 Acre Subdivision South of Mona
Ken Bousfield reported that a developer wants to do to a 40 acre subdivision that is just south of Mona.
Ken has talked with Fred Nelson on what the Division needs to do. The Division will start with an Administrative approach.
Discussion followed.
Petra Rust left the Board meeting.
c) New Staff
Ken Bousfield introduced Nagendra Dev, a new staff member in the Construction Assistance Section.
Nagendra Dev gave some background information on his work and education to the Board.
Petra Rust joined the Board meeting.
Ken Bousfield gave the Board some information on the International Code Council. The Council may be requesting some involvement from the Board in the near future.
Ken said that staff received some
information from the Fire officials in
Steve Onysko mentioned the International Code Council has a conglomeration of fire codes, zoning codes, etc. A number of years ago the Council issued an International Wildland/Urban Interlace Code. Steve gave the Board some background information on the program. The Council would like the Board to mandate the non-fire protected water systems some type of discharge other than a hydrant. The Council would like some direction from the Board. The Board may ultimately be involved with the Council.
Discussion followed.
ITEM 10 – NEWS ARTICLES
The news articles are in the packet.
ITEM 11 – CENTRAL IRON COUNTY WATER CONSERVANCY DISTRICT’S
TOUR BOOK FROM THE JULY 13, 2007 BOARD MEETING
A copy of the Tour Book is in the packet.
ITEM 12 – NEXT MEETING
The next
Board meeting will be on October 12, 2007 at 168 North 1950 West, Room 101,
ITEM 13 – OTHER
No other business.
ITEM 14 – ADJOURN
Chairman Erickson stated a motion to adjourn the Board meeting was in order.
Rick Sprott seconded.
CARRIED
(Unanimous)
Linda Matulich
Recording Secretary