MINUTES OF THE SEPTEMBER 9, 2009 DRINKING WATER BOARD MEETING HELD IN ALTA, UTAH
Board Members Present Guests
Paul Hansen, Chair Kate Black, Town of Alta
Ken Bassett, Vice Chair Keith Hanson, Salt Lake Cty. Service Area #3
Terry Bee Dale Pierson, Rural Water Association
Danny Fleming Doug Nielsen, Sunrise Engineering
Jay Franson Gregory White, President, Peoa Pipeline Company
Helen Gerber Scott Kettle, Horrocks Engineers
Betty Naylor John Field, Wooden Shoe Water Company
Amanda Smith Joseph Santos, Epic Engineering
David Stevens, Ph.D. John Tulley, Cedar Highlands
Ron Thompson Kelly Crane, Nolte Engineering
Brian Barton, Jones & DeMille Engineering
Board Members Excused Ray Owens, Mayor, Joseph Town
Robert Perry, Dixie Deer SSD
Petra Rust Michael Morgan, Mayor, Mendon City
Bill Bigelow, Hansen, Allen & Luce
Staff William Staples, Echo Mutual WC
Clinton Park, Mayor, Duchesne City
Ken Bousfield John Chartier, P.E., D.E., SW District
Ken Wilde Scott Mays, Mendon Town
Rich Peterson Jerry Lankton, Cedar Heights
Jesse Johnson Ben Black, Heber City
Gary Kobzeff Dennis Allred, Sunrise Engineering
Patti Fauver Ed Johnson, Sunrise Engineering
Sandy Pett Bob Hoffman, Cedar City
Ying-Ying Macauley Doug Hansen, Nolte Engineering
Bob Hart Tom Hayes, Nolte Engineering
Rachael Cassady Mike Morgan, Mendon City
Linda Matulich Dan Archer, Town of Sigurd
Guests Continued Guests Continued
Keith Hanson, Town of Alta WO Kirk Taylor, Mendon City
H.D. Lynford, Peoa Pipeline Dennis Hoffman, Cedar City
Terry Robinson, Jones & DeMille Karen Hoffman, Cedar City
Ed Hoffman, Town of Sigurd Steve Hill, Cedar City
Tom Pollard, Town of Alta Tina Kelly, Cedar City
Doug Woods, Zion's Bank Robert Hayes, Mendon City
Cornish Davis, Echo Mutual Co. Hank Clark, Cedar City
Chad Houchlin, Mayor, Sigurd Town Dustyn Shaffer, Sunrise Engineering
John Hardman, Mendon City Tom Hayes, Nolte Associates
Ben Grimes, Beaver City Kerry Grant, Metropolitan WD of SLC & Sandy
Boyd Davis, Acre Water Company John Orton, Mendon City
Dan Price, Beaver City Steve Stevens, Peoa Pipeline Company
ITEM NO. 1- CALL TO ORDER
The Drinking Water Board convened in Alta, Utah with Chairman Hansen presiding.
The Board meeting was called to order at 1:00 p.m.
ITEM NO. 2 - ROLL CALL
Chairman Hansen asked Ken Bousfield to call roll of the Board members. The roll call showed there were 10 members present.
ITEM NO. 3 - INTRODUCTIONS
Chairman Hansen welcomed everyone and asked the guests to introduce themselves.
ITEM NO. 4 - APPROVAL OF MINUTES - June 29, 2009 and July 8, 2009
Chairman Hansen stated a motion was in order to approve the June 29, 2009 and July 8,
2009 Drinking Water Board minutes.
June 29, 2009:
Ron Thompson moved to approve the June 29, 2009 Drinking Water Board minutes.
Dave Stevens seconded.
CARRIED
(Unanimous)
July 8, 2009:
Ron Thompson moved to approve the July 8, 2009 Drinking Water Board minutes.
Dave Stevens seconded.
CARRIED
(Unanimous)
ITEM NO. 5 - FINANCIAL ASSISTANCE COMMITTEE REPORT
1) Status Report
Ken Wilde reported the State Loan Fund has a negative balance of $197,996, which includes the match with the federal money.
Ken mentioned we have deducted $2.9 million for match on the $14 million FY 2010 Federal Capitalization Grant. This is our 20% match obligated for our federal money from the State Loan Fund. We have also deducted Administrative Fees for the Drinking Water Board. As of July 31, 2010, we will have $4,146,634 to work with on the loan program.
Ken said that most of the projects are for planning. The status information is listed in the packet showing the progress of the projects.
Ken said the Federal SRF loan program will have $24,969,906 in available funds, when it is projected out to July 31, 2010. We will receive $20,336,225 over the next 12 months, which will give us a total of $24,969,906 to loan over the next 12 months.
Ken mentioned an SRF Loan Funds update was handed out to the Board members. Duchesne City and Salt Lake City turned down the funding that had been authorized for their projects. There are some projects with an amount shown in green on the left hand side of the sheet. We need $3,900,000 of green projects. We exceed that amount.
Ken mentioned the Federal ARRA loan projects are showing a total of $20,613,978. These loans exceed the required amount of $18,915,000. The total of our capitalization grant was $19,500,000.
Discussion followed.
2) Project Priority List
Ken Wilde reported some new projects have been added to the Project Priority List. The new projects are: Mendon Town, Beaver City, East Carbon City, Cedar Highlands, Kane County, and Cornish Town.
Ken reviewed a list of projects that was handed out to the Board members. The list of projects shows which staff member is responsible for the project.
Ken reported that if the State cannot obligate all of the ARRA money by February 17, 2010, any funds that haven been obligated for the stimulus projects will be taken back by EPA and given to another state.
Ron Thompson moved to approve the Project Priority List.
Amanda Smith seconded.
CARRIED
(Unanimous)
Vice Chairman Ken Bassett invited Melissa Hubbell, Attorney General's Office, to address the Board.
Melissa Hubbell mentioned she is available if anyone has any questions to be addressed.
3) SRF Applications
a) Neola Town - Deauthorization - Rich Peterson
Rich Peterson reported that in November 2008 Neola Town was authorized a loan for $85,000 at 3.56% for 5 years. The Town of Neola declined the loan.
Staff is requesting the Drinking Water Board deauthorize their loan.
Jay Franson moved the Drinking Water Board deauthorize the construction loan of $85,000 at 3.56% for 5 years.
Amanda Smith seconded.
CARRIED
(Unanimous)
b) Salt Lake City - Deauthorization - Rich Peterson
Ken Wilde reported that Salt Lake City is declining the $1,513,000 loan at 2.67% Technical Assistance Fee for 10 years with $153,600 in Principal Forgiveness that was authorized on April 23, 2009.
Danny Fleming moved the Drinking Water Board deauthorize the $1,513,600 loan at 2.67% Technical Assistance Fee for 10 years with $153,600 in Principal Forgiveness to Salt Lake City.
Jay Franson seconded.
CARRIED
(Unanimous)
c) Duchesne - Deauthorization - Jesse Johnson
Jesse Johnson reported Duchesne City was authorized a Construction Loan on April 23, 2009 for $824,000 at 1.24% for 20 years.
Ron Thompson moved the Drinking Water Board deauthorize the $824,000 Construction Loan at 1.24% for 20 years given to Duchesne City on April 23, 2009.
Danny Fleming seconded.
CARRIED
(Unanimous)
d) Cedar Highlands Planning - Jesse Johnson
Jesse Johnson reported Cedar Highlands is requesting a Planning Advance of $40,000 to create a master plan for their community.
Jesse mentioned 71 lots are being used out of 165 lots. If a 100% loan at 0% interest for 5 years is approved, the estimated average water bill would be $47.65 or 1.91% of their local MAGI. A funding package including $15,000 in principal forgiveness would put the estimated average water bill at $43.60 or 1.75% of the local MAGI. Cedar Highlands is not incorporated with Cedar City. Cedar Highlands is about 1,000 to 2,000 feet higher than Cedar City, which makes it difficult for Cedar City to provide water to Cedar Highlands.
Jesse said the Finance Assistance Committee asked for more information at their August 19, 2009 teleconference. The engineer for the project provided the requested information on August 31, 2009.
Cedar Highlands H.O.A., Inc. representatives were present to address the Drinking Water Board, and answer any questions from the Board.
Discussion followed.
Jay Franson moved the Drinking Water Board table Cedar Highlands application based on staff's recommendations for funds, and until further information is provided on: 1) the history of the water system; and 2) specific information detailing what will be included in the master plan.
Dave Stevens seconded.
CARRIED
(Unanimous)
Terry Beebe stepped out.
e) Echo Mutual Water Company Planning - Gary Kobzeff
Gary said that Echo Mutual Water Company is requesting a planning loan of $15,000 which would help them complete a Culinary Water System Maser Plan to identify and address current and future needs of the area and their water system. Echo Mutual Water Company doesn't qualify for a grant, but they do qualify for a loan.
Representatives from Echo Mutual Water Company were present to address the Board, and answer any questions from the Board.
Discussion followed.
Jay Franson moved the Drinking Water Board authorize a $15,000 planning loan to Echo Mutual Water Company at 0% interest for 5 years, repaying approximately $3,000 annually, beginning one year from the date the loan agreement is signed, with the option that
the Town may roll the balance of any loan principle into a future construction loan at the interest rate established when said construction project is authorized. This authorization is subject to the availability of funds.
Dave Stevens seconded.
CARRIED
(Unanimous)
Terry Beebe returned.
f) Joseph Municipal Water Planning - Gary Kobzeff
Gary Kobzeff reported Joseph Municipal Water is requesting a Planning Advance of $45,000 for a Culinary Water System Master Plan. The Planning Advance would help Joseph Municipal Water have a Culinary Water System Master Plan of their own water system to identify and properly address current and future needs of the area and their system.
Gary mentioned the Financial Assistance Committee recommends the Drinking Water Board authorize a $45,000 planning grant to Joseph Municipal Water System. The authorization is subject to the availability of funds.
Representatives for Joseph Municipal Water were available to address the Drinking Water Board, and answer any questions from the Board.
Discussion followed.
Danny Fleming moved the Drinking Water Board authorize a $45,000 Planning Grant to Joseph Municipal Water System. The authorization is subject to the availability of funds.
Betty Naylor seconded.
CARRIED
(Unanimous)
g) Peoa Pipeline Planning - Rich Peterson
Peoa Pipeline Company and Wooden Shoe Water Company were combined to discuss the possibility of regionalizing with the Drinking Water Board.
Rich Peterson reported that the Wooden Shoe Water Company came to the Drinking Water Board at the June 4, 2009 Board meeting requesting a $66,000 Planning Advance.
Rich Peterson reported that the Peoa Pipeline Company is requesting a $30,000 Planning Advance. Peoa Pipeline Company has 52 connections. Peoa Pipeline Company and Wooden Shoe Water Company are within a mile and a half of each other.
A discussion was held on combining both systems to do a joint study on the possibility of regionalizing, review the scope of work and costs, and return to the Drinking Water Board with justification for the apparent high cost of the study.
Peoa Pipeline Company representatives were available to address the Drinking Water Board and answer any questions from the Board.
President Gregory White, of Peoa Pipeline Company, addressed the Drinking Water Board. President White gave some background history on the Peoa Pipeline Company's drinking water system.
President White said Peoa Pipeline has requested a planning grant not a planning advance from the Drinking Water Board. Peoa Pipeline Company doesn't feel there is any benefit to the Pipeline Company to combine with Wooden Shoe Water Company.
Rich Peterson mentioned that the Wooden Shoe Water Company is located in Peoa with a population of about 212 people.
Paul Hansen moved the Drinking Water Board table Peoa Pipeline Company's request to give them enough time to look at regionalization before coming back to the Drinking Water Board.
Ron Thompson seconded.
CARRIED
(Unanimous)
Danny Fleming told Peoa Pipeline Company that they could work with the Rural Water Association. Rural Water Association could help install a disinfectant device in their drinking water system to clean their drinking water system.
h) Wooden Shoe Water Company - Rich Peterson
Peoa Pipeline Company and Wooden Shoe Water Company were combined during parts of their requests to the Drinking Water Board.
Rich Peterson reported that the Wooden Shoe Water Company is requesting a Planning Advance of $66,000 to update their Culinary Water System Master Plan.
Wooden Shoe Water Company representatives were available to answer any questions and address the Drinking Water Board.
Joe Santos, Epic Engineering representing Wooden Shoe Water Company, addressed the Drinking Water Board on the possibility of regionalization with Peoa Pipeline Company.
The Drinking Water Board requested that Peoa Pipeline Company and Wooden Shoe Water Company come back to a future Board meeting and discuss the possibility of regionalization.
Discussion followed.
Jay Franson moved the Drinking Water Board table Wooden Shoe Water Company's to give them enough time to look at regionalization before coming back to the Drinking Water Board.
Danny Fleming seconded.
CARRIED
(Unanimous)
i) Scofield Planning - Rich Peterson
Rich Peterson reported Scofield Town is requesting a Planning Advance of $13,000 to conduct an engineering review of their municipal water system. The cost of the project is estimated at $70,000. Scope of Work includes an evaluation of the individual wastewater systems and consideration of a community sewer system. Scofield Town has also applied for additional funding with CIB and the Division of Water Quality.
A Scofield Town representative was available to answer any questions and address the Drinking Water Board.
Discussion followed.
Paul Hansen moved the Drinking Water Board authorize a $13,000 planning loan to Scofield Town at 0.0% for 5 years, repaying $2,600 annually, beginning one year from the date of the loan agreement is signed, with the condition that the Town may roll the balance of any loan principle into a future construction loan at the interest rate established when said construction project is authorized.
Jay Franson seconded.
CARRIED
(Unanimous)
j) St. George City Amended Funding Package - Ken Wilde
Ken Wilde reported that when the arsenic "MCL" was lowered by the federal government, it put the Gunlock well field in violation. The Gunlock well field is one of St. George's main water supplies. St. George City proposed building an arsenic removal water treatment plant that would cost $15,000,000. The Drinking Water Board authorized a $6,000,000 loan on March 4, 2005 to St. George City. St. George City agreed to pay $9,000,000 of the project. Staff has been working with St. George City on their funding project.
Ken gave some background history on this project to update the Board on the progress of the project.
Ken mentioned that on June 6, 2006 St. George City requested a time extension on their loan. The Drinking Water Board authorized the extension on July 14, 2006. On March 31, 2008, St. George City requested another extension. On May 8, 2009, the Drinking Water Board authorized the requested extension. Since January 21, 2009, there have been some additional changes.
Discussion followed.
Amanda Smith left the Drinking Water Board meeting.
Ron Thompson moved the Drinking Water Board authorize a new funding package of $4,714,000 construction loan at 2.10% interest (taxable interest bond) for 20 years to St. George City with an extension of the loan authorization until May 9, 2010. The loan origination fee would remain at 1% ($471,400) of the funded amount.
Dave Stevens seconded.
CARRIED
(Unanimous)
k) Beaver City - Jesse Johnson
Jesse Johnson reported Beaver City is requesting financial assistance from the Drinking Water Board of $4,800,000 for culinary water system improvements. The project involves replacing old, deteriorating and undersized waterlines, constructing a new water storage tank and redeveloping 8 spring collection areas. The total cost of the project is estimated to be $6,800,000. Beaver City applied to the Community Impact Board. Beaver City has 38 points on the project priority list.
Representatives from Beaver City were present for any questions from the Board and addressed the Board.
Discussion followed.
Ken Wilde said that all "authorizations are subject to the availability of funds" and that every authorization contains that statement, so he doesn't think it is necessary to state it in the motions.
A member of the Board suggested that staff should state in every Board packet that approval is subject to the "availability of funds". Ken Wilde mentioned the water systems applying for financial assistance from the Drinking Water Board should have the wording "availability of funds" added to their requests.
Ron Thompson moved the Drinking Water Board authorize a $2,850,000 construction loan to Beaver City with a 2.62% Technical Assistance Fee per annum for 20 years with $1,900,000 in principal forgiveness, with the condition that they resolve any issues on their compliance report.
Terry Beebe seconded.
CARRIED
(Unanimous)
l) Sigurd Town - Gary Kobzeff
Gary Kobzeff reported Sigurd Town is requesting financial assistance of $3,150,000 to improve storage capacity, transmission system, distribution system, and its chlorination building. Sigurd Town will build a new 350,000 gallon concrete storage tank; replace small distribution lines with 8" lines, replace old meters, reconnect old connections to larger lines, and rebuild the
chlorination building. Sigurd Town will be receiving some funding from (USDA) Rural Development. Sigurd Town will be receiving $2,495,000 in grant money and $407,000 in the form of a loan at 2.65% for 40 years from USDA. Sigurd Town will contribute $108,000.
Representatives for Sigurd Town were available for any questions from the Board and address the Board.
Discussion followed.
Helen Graber moved the Drinking Water Board authorize a loan of $500,000 at 100% Principal Forgiveness to the Town of Sigurd.
Betty Naylor seconded.
CARRIED
(Unanimous)
m) Dixie Deer SSD - Ken Wilde
Ken Wilde reported Dixie Deer Special Service District is requesting financial assistance in the amount of $1,868,190 to drill and equip a new well, install 49,870 feet of waterline with associated valves, hydrants and meter connections. On April 23, 2009, the Drinking Water Board authorized a $1,879,090 construction loan with $1,370,090 in principal forgiveness with a loan balance of $509,000 with a 1.45% Technical Assistance Fee per annum for 20 years.
Ken mentioned staff has had some discussions with Rural Development and discovered their engineer made some unintended errors when they filled out the application, causing us to recommend better financial terms to Dixie Deer SSD than they should have received. Dixie Deer SSD may need an additional $261,000 for additional waterline replacements that were just identified.
Discussion followed.
Jay Franson moved the Drinking Water Board authorize a construction loan of $1,868,190 to Dixie Deer SSD with a 1.45% Technical Assistance Fee per annum for 20 years and $1,006,190 in principal forgiveness, with the condition that they resolve any issues on their compliance report. If they need an additional $261,000, then the total request would be $2,129,190 and the additional funding would be in the form of principal forgiveness.
Ron Thompson seconded.
CARRIED
(Unanimous)
n) Mendon City Emergency - Ken Wilde
Ken Wilde reported the Town of Mendon has two main sources of water; springs and a well. The well was taken out of service, because of a high concentration of nitrate. The Town of Mendon would like to drill two smaller wells which will be able to meet the demands better than the one larger
well, because of the characteristics of their aquifer and their pumping capabilities. The Town of Mendon is requesting $405,000 in emergency financial assistance from the Drinking Water Board to drill two new wells.
Representatives for Mendon City were available for any questions from the Board and to answer any questions.
Ken mentioned the Financial Assistance Committee is recommending the Drinking Water Board authorize a $405,000 emergency construction loan at 4% interest for 20 years to the Town of Mendon to construct two new culinary water supply wells.
Discussion followed.
Jay Franson moved the Drinking Water Board authorize a $405,000 construction loan at 4% for 20 years to the Town of Mendon for construction of new culinary water supply wells with a loan origination fee of 1% ($4,050), which the Town of Mendon may pay at closing or roll it into the loan.
Ron Thompson moved.
CARRIED
(Unanimous)
ITEM NO. 6 - OPERATOR CERTIFICATION COMMISSION RENEWALS
Ken Bousfield reported that David Stevens, Ph.D. and Bart Simons' commission appointments, on the Operator Certification Commission, ends on December 31, 2009.
Ken reported staff is recommending the Drinking Water Board reappoint David Stevens, Ph.D. and Bart Simons to another term on the Operator Certification Commission ending on December 12, 2012.
Ron Thompson moved the Drinking Water Board reappoint David Stevens, Ph.D. and Bart Simons to another term on the Operator Certification Commission ending on December 31, 2012.
Ken Bassett seconded.
CARRIED
(Unanimous)
ITEM NO. 7 - CROSS CONNECTION COMMISSION RENEWALS
Ken Bousfield reported that Terry Smith has been selected to replace Charles Jeffs as the Rural Water Association of Utah's representative on the Cross Connection Control Commission. Gary Jenkins and Dan Smith agreed to serve another term on the Cross Connection Control Commission ending on December 31, 2010.
Discussion followed.
Danny Fleming moved the Drinking Water Board approve Terry Smith to replace Charles Jeffs on the Cross Connection Control Commission with a term ending on December 31, 2010. Gary Jenkins and Dan Smith will serve another term on the Cross Connection Control Commission.
Ron Thompson seconded.
CARRIED
(Unanimous)
ITEM NO. 8 - GROUNDWATER RULE ADOPTION AND THE LEAD & COPPER
SHORT TERM REVISIONS
Patti Fauver and Rachael Cassady reported on the changes that were made in the Ground Water Rule and the Lead & Copper Rule Short Term Revisions recently.
Discussion followed.
Ron Thompson moved the Drinking Water Board authorize staff to make the rule
changes effective for Rules R309-100, 105, 110, 200, 205, 210, 220, and 225.
Danny Fleming seconded.
CARRIED
(Unanimous)
ITEM NO. 9 - AUTHORIZATION TO PROCEED WITH RULEMAKING FOR R309-501 -
PUBLIC DRINKING WATER SYSTEM HUYDRAULIC MODELING
REQUIREMENTS
Ken Bousfield briefly outlined the materials in the Board's packet.
Ken reported that staff recommends that 3 public hearings be held throughout the state on the Proposed Hydraulic Modeling Rule
Bob Hart reported on what he did on the cost estimation worksheet.
Discussion followed.
Ron Thompson moved the Drinking Water Board authorize staff to file the attached rule with the Division Administrative Rules, to begin the rule making process, and authorize staff to conduct the public hearings, if Drinking Water Board members were not available.
Ken Bassett seconded.
CARRIED
(Unanimous)
ITEM NO. 10 - DRAFT 2010 DRINKING WATER BOARD SCHEDULE
a) DRAFT Financial Assistance Committee's 2010 Meeting Schedule
Chairman Hansen addressed the 2010 Drinking Water Board Schedule. The meetings are set for Wednesday's.
Discussion on the Board schedule was held.
Ron Thompson invited the Drinking Water Board to hold the Board meeting on March 4, 2010 at his water treatment plant.
Ron Thompson moved the Drinking Water Board approve the 2010 Drinking Water Board Schedule.
Danny Fleming seconded.
CARRIED
(Unanimous)
ITEM NO. 11 - RURAL WATER ASSOCIATION OF UTAH REPORT
Dale Pierson updated the Drinking Water Board on some of the meetings that Clyde, Danny and he have attended since the last Board meeting.
ITEM NO. 12 - LETTERS
The letters are in the packet.
ITEM NO. 13 - CHAIRMAN'S REPORT
Chairman Hansen thanked the Town of Alta for the very information tour, the ribbon cutting ceremony, and the wonderful lunch.
ITEM NO. 14 - DIRECTORS REPORT
Ken Bousfield mentioned next week he and Eva Nieminski would be making a presentation at the American Water Works Association Intermountain Section Conference in West Yellowstone.
Ken mentioned that he will be attending ASDWA's 24th Annual Conference and Board of Directors meetings. Ken said he will be moderating a session, and that he and Dale Pierson will be making a presentation on how the Division of Drinking Water and the Rural Water Association of Utah cooperate together for the mutual benefit of water systems in the state. He also mentioned that Patti Fauver would present a paper on how Utah tracks physical deficiencies found during sanitary surveys.
a) Division of Drinking Water's Organizational Chart - FYI
The Division of Drinking Water's Organizational Chart has been updated. The Chart is in the packet.
ITEM NO. 15 - NEXT BOARD MEETING
The next Board meeting will be held on:
Date: January 13, 2010
Time: 1:00 p.m.
Location: 168 North 1950 West, Room 101
Salt Lake City, Utah 84116
ITEM NO. 16 - OTHER
No other business.
ITEM NO. 17 - ADJOURN
Chairman Hansen stated a motion to adjourn the Drinking Water Board meeting was in order.
Dave Stevens moved to adjourn the Drinking Water Board meeting at 4:25 p.m.
Danny Fleming seconded.
CARRIED
(Unanimous)
Linda Matulich
Recording Secretary