MINUTES OF THE DRINKING WATER BOARD MEETING HELD ON MARCH 5,
2009 IN
Board Members Present Guests
Anne Erickson, Chairman Kevin
Brown,
Myron Bateman, Vice Chairman Alan
Riding,
Daniel Fleming Terry
Jay Franson Dale Pierson, Rural Water Association
Helen Graber, Ph.D. Tim Jones, Jones & DeMille Engineering
Paul Hansen, P.E. Al Deware, Erda Acres Water Company
David Stevens, Ph.D. Dennis
Holland,
Ron Thompson Robert
Worley,
Board Members Excused Curtis Ludvigsen, Rural Water Association
Randy Taylor, P.E., Southwest District Engineer
Ken Bassett John Chartier, P.E., Southwest District Engineer
William Sinclair R. Scott Wilson, Central Iron
Rod
Mills, Central Iron
Staff Kelly
Crane, Central Iron
Slade Hughes, Veyo Culinary WA
Ken Bousfield Tyler McAllister, Nolte Engineering
Ken Wilde Bill Loughlin, Loughlin Water
Kim Dyches
Bob Hart Staff Continued
Gary Kobzeff
Rich Peterson Ying-Ying Macauley
Michael Mortensen Heather Bobb
Jesse Johnson Linda Matulich
Michael Grange
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 Drinking Water Board members. The roll call showed there were 9 Drinking Water Board members present at the time.
ITEM 3 – INTRODUCTIONS
Chairman Erickson welcomed everyone and asked the guests to introduce themselves.
Chairman Erickson thanked the Rural Water Association of Utah’s for the hospitality they provided to the Drinking Water Board, and the outstanding job they did with the 2009 Annual Conference.
ITEM 4 – APPROVAL OF MINUTES – January 14, 2009
Chairman Erickson stated a motion was in order to approve the January 14, 2009 Drinking Water Board minutes.
Paul Hansen moved to approve the January
14, 2009 Drinking Water Board minutes.
Ron Thompson seconded.
CARRIED
(Unanimous)
ITEM 5 – FINANCIAL ASSISTANCE COMMITTEE REPORT
1) Status Report – Ken Wilde
Ken Wilde reported the State Loan Fund
program had about $10,000,000. The
Legislature took $6,000,000 from the program.
The Drinking Water Board and staff are now left with about $4.2 million;
of which $2.8 million is in the Loan funds, and $1.4 million is in the Grant
funds. The money that is left is for
three projects that have already been closed.
They are: Garden City, Escalante
and
Ken Wilde reported the first round money from the Federal Loan Fund program is showing a negative balance of $14.8 million. Sandy, the Division’s accountant, is showing all of the loan obligations coming out of first round money. Ken Wilde explained that the Board has $16 million available in the Federal Loan Fund program in the second round of money that off-sets that negative balance. There is also $3.2 million in interest and $828,000 in the Hardship Grant Fund. The Board and Staff haven’t spent any of the money from the second round yet. The Board currently has $5.3 million available in the Federal SRF Program.
Ken Wilde reported there isn’t
enough money in the State SRF Fund for the Kane County Water Conservancy
District and
Discussion followed.
2) Project Priority List – Ken Wilde
Ken Wilde mentioned an updated Project Priority List was passed out at the work meeting this morning. Ken said staff would like to substitute the new Project Priority List dated February 24, 2009. Staff received some new projects this week and added them to the list.
Myron Bateman stated a motion to approve the new Project Priority List was in order.
Petra Rust moved the Drinking Water Board authorize the new Project
Priority List dated February 24, 2009.
Danny Fleming seconded.
CARRIED
(Unanimous)
3) Draft IUP
Ken Wilde reported that we are required to prepare an Intended Use Plan (IUP) for the Federal SRF program each year. Staff has brought the IUP to the Board every year for input and direction. The IUP doesn’t require Board approval. The IUP is a draft document right now. Staff is still receiving guidance from the federal government on the stimulus funding portion of the Plan.
Ken Wilde reviewed the changes in this year’s IUP, because it includes plans to use the FY 2009 Capitalization Grant and the Stimulus money. The draft IUP is in the Drinking Water Board packet. Ken asked the Drinking Water Board to review the document and send staff any comments they have on the document. The final IUP document will be posted on the website
Discussion followed.
4) SRF Applications
a)
Gary Kobzeff reported
Discussion followed.
Ron Thompson moved the Drinking Water Board
authorize a $10,000 planning grant to the town of
CARRIED
(Unanimous)
b)
Gary Kobzeff reported
Discussion followed.
Jay Franson moved the Drinking Water Board not authorize a planning
advance.
Paul Hansen seconded.
CARRIED
(Unanimous)
c) Central
Iron
1) Application Request for $3,910,878 and
2) Application Request for $3,378,965
Ken Wilde reported the Central Iron
County Water Conservancy District (CICWCD) is requesting approximately
$3,900,000 for a 4,000,000 gallon water storage tank, which would help them to have
enough storage for a reserve capacity for
Ken Wilde gave some background on the project.
Ken Wilde
reported the Finance Committee is recommending that the Drinking Water Board
authorize a loan to the Central Iron County Water Conservancy District
(District) (WCD) in the amount of $3,910,979 with 20% principal forgiveness
with an interest rate of 0.0% or 1.0% for the first five (5) years and 2.0%
interest thereafter for up to a total loan repayment period of 30years. The loan will also have a Loan Origination
Fee of 1.0%. The Drinking Water Board
members said that the District should obtain signed contracts from
Scott Wilson, Kelly Crane and Rod Mills, representing the Central Iron County WCD, were available for comments and/or questions from the Board.
Scott Wilson and Kelly Crane addressed the Board.
Discussion followed.
Jay Franson moved the Drinking Water Board reiterate regionalization, it is extremely important, that it makes sense to go with the 4,000,000 gallon tank. However, given the economic conditions of both the Drinking Water Board and the District, we don’t know exactly where we stand on here, that if I can use the terminology of the day, that if you can use the bailout, we don’t know where that mean falls. The Drinking Water Board has $350,000,000 in loan requests. The Drinking Water Board will probably get more requests. Based on all of the conditions, the Board strongly supports the 4,000,000 tank, but the Drinking Water Board would like to see the engineering firm look at getting other communities to participate with the loans, so it is not just the Drinking Water Board, the Division and the tax payers of the State of Utah. Jay suggested giving the District some time to put that together and made the motion to continue the application for a sufficient period for the District to work on these things.
Ron Thompson seconded.
CARRIED
(Unanimous)
d) Dutch John – Jesse Jackson
Jesse Johnson reported Dutch John Water System is requesting $425,000 to install a backup generator on their treatment plant, install a new pump system and 10,450 feet of distribution pipe. Dutch John is in the process of repairing their drinking water and waste water system. The total estimated cost of the project is $1,172.130. The remaining funding will come from the State and Tribal Assistance Grant, Bureau of Reclamation, and an applicant contribution.
Discussion followed.
Ron Thompson moved the Board authorize a
$427,130 construction loan to Dutch John Water System with a 3.59% Hardship
Grant Assessment per annum, to be paid into the Hardship Grant Assessment Fund,
for 30 years with $212,130 in principal forgiveness, with the condition that
they resolve all issues on their compliance report. A 1.0% loan origination fee of $2,150 will be
assessed which can be either absorbed by the authorized loan amount or paid by
the water system, out of the system funds at loan closing.
Discussion on motion.
CARRIED
(Unanimous)
e)
Rich Peterson reported that on November 12, 2008, the Drinking Water Board authorized a loan of $85,000 at 2.56% to pay for cost overruns on their project. The Town had asked for a grant. Because the Drinking Water Board offered them a loan, they declined the offer from the Drinking Water Board. Sunrise Engineering will help them pay for the cost overrun.
Jay Franson moved the Board deauthorize the $85,000 loan to the Town of
CARRIED
(Unanimous)
f) Deseret
Oasis SSD,
Rich Peterson reported the Drinking Water Board authorized a loan in 2002 to West Millard Water Agency (WMWA) to conduct a study to determine the course of action they needed to take to meet a mandate from EPA on providing no more than 10 ppb of arsenic to help protect public health. The study determined it would be most cost effective for each entity to make some modifications to their own water systems to reach compliance with the new rule. The WMWA was dissolved since its purpose had been served.
Alan Riding,
Alan addressed the Board.
Discussion followed.
Dave Stevens seconded.
CARRIED
(Unanimous)
g) Other Business
No other business.
ITEM 6 – CROSS CONNECTION CONTROL COMMISSION MEMBERS
RENEWAL –
Kim Dyches
Kim Dyches reported the Cross Connection Control Commission currently has 7 members, whose terms last for 2 years. Gary Jenkins and Dan Smith are requesting that they are approved to serve another term on the Commission. Charles Jeffs has requested to be replaced on the Commission. Terry Smith is requesting to fill Charles Jeffs position on the Commission.
Discussion followed.
Jay Franson moved the Drinking Water Board appoint Terry Smith to
replace Chares Jeffs on the Cross Connection Control Commission and reappoint
Gary Jenkins and Dan Smith to another term on the Commission.
Danny Fleming seconded.
CARRIED
(Unanimous)
ITEM 7 - SB 70 ADJUDICATIVE PROCEEDINGS – Ken Bousfield
Ken Bousfield reviewed the changes that were made in the “SB 70 Adjudicative Proceedings Department of Environmental Quality Amendments” during the 2009 General Session. The Chief Sponsor was Margaret Dayton. SB 70 was approved for filing by E.R. Brown on February 13, 2009. SB70 covers all of the Boards in the Department of Environmental Quality.
Discussion followed.
ITEM 8 – ENGINEER RULE AMENDMENTS – Bob Hart and Bill Birkes
a) R309-105-6(2)(b): Submission Items Associated with Exception Request
Bob Hart reviewed the changes in R309-105-6(2)(b). There may be times when the requirements are applicable or not applicable, depending on the situation at the time this rule is needed. The Executive Secretary can grant an exception that will not jeopardize public health.
b) R309-110-4 Master Plan Definition
Bob Hart reviewed the changes in R309-110-4. This rule refers to “master plan” several times in the rule without any indication of the elements considered as essential parts of a plan. Staff is proposing adding a definition of “master plan” listed alphabetically followed by the essential elements.
c) R309-500-5(2) and 500-6(3)(a) & (b): On-going O&B and Waiving of Plan Submittal
Bob Hart reviewed the changes in R309-500-5(2) and R309-500-6(3)(a) & (b). This rule deals with the operation and maintenance features. The changes in this rule are substantive. Staff is proposing adding the condition of previous review and approval of drinking water pipeline installation standards as an additional requirement, along with the identification of a professional engineer directly responsible for the entire drinking water system, before being eligible for plan review waivers.
Danny Fleming moved the Board authorize staff (for staff in believing
the changes are substantive and the Board reviews the rules) to start the rulemaking
process and file the proposed rule amendments for Rules R309-105-6(2)(b),
R309-110-4, and R309-500-6(3)(b)for publication in the Utah Bulletin of April
1, 2009.
Myron Bateman seconded.
CARRIED
(Unanimous)
ITEM 9 – RURAL WATER ASSOCIATION OF
Danny Fleming reported 1,584 are attending the Rural Water Association’s 2009 Annual Conference. Danny reviewed some of the highlights of the Conference for the Board.
Dale Pierson thanked the Drinking Water Board for the support they give the Rural Water Association.
Danny Fleming thanked the Drinking Water Board and staff for their cooperation, support, dedication, and work they do with the Rural Water Association.
ITEM 10 – CHAIRMAN’S REPORT
Chairman
Erickson thanked Dale Pierson and the Rural Water Association of
Chairman Erickson asked Ken Bousfield to tell Bill Birkes how much the Drinking Water Board appreciates him for his dedication and outstanding work he performed for the Division of Drinking Water and the Drinking Water Board during his tenure with the state before he retired.
Chairman Erickson mentioned how much the Drinking Water Board appreciates the dedication and hard work the Division of Drinking Water staff does for the Drinking Water Board and the public.
Chairman
Erickson mentioned that the Rural Water Association holds a Best Drinking Water
in the State of
ITEM 11 – DIRECTORS REPORT
Ken Bousfield talked about the
success of the Rural Water of Association’s 2009 Annual Conference.
Ken Bousfield thanked the Drinking Water Board members for the support they give staff and the Rural Water Association. Ken thanked the Drinking Water Board for the successful meetings they held this week during the Conference.
a) Election of Chair and Vice Chair for 2009
Ken
Bousfield mentioned the elections will be held at the April Board meeting.
ITEM 12 – LETTERS
Letters are in the packet.
ITEM 13 – NEXT BOARD MEETING
Date: April 23, 2009
Time of Board Meeting: 1:00 p.m.
Location: 168 North 1950 West, Room 101
ITEM 14 – OTHER
Ken Bousfield invited the Drinking Water Board to Bill Birkes retirement party on March 10, 2009 in the main conference room of our building. The party is from 11:00 a.m. to 3:00 p.m.
ITEM 15 – ADJOURN
Chairman Erickson stated a motion was in order to adjourn the Drinking Water Board meeting.
Danny Fleming moved the Drinking Water
Board meeting adjourn at 3:50 p.m.
Paul Hansen seconded.
CARRIED
(Unanimous)
Linda
Matulich
Recording Secretary