SALT LAKE COUNTY

SERVICE AREA #3 – SNOWBIRD

BOARD OF TRUSTEES MEETING MINUTES

September 21st, 2021

9567 E. By-Pass Road

Snowbird, Utah 84092

ATTENDES:               

                                    Dave Richards, Chairman

                                    Tom Prosek, Trustee

                                    Keith Hanson, Gen. Mgr./Treasurer

                                    Steve McIntosh, Operations Manager  

                                    Kasey Carpenter, System Operator

Bryauna Alderin, Office Manager/Clerk

Jake Treadwell, Snowbird

 

 

The Salt Lake County Service Area #3 Board of Trustees meeting was called to order by Chairman Richards at 12:00 pm.

 

PUBLIC HEARING- Chairman Richards opened the public hearing at 12:01 pm to discuss the midterm vacancy on the Board of Trustees effective September 20th 2021, and the appointment of an interim Trustee.  Chairman Richards stated there were two candidates, Jacob Treadwell and Chris Bremer that met the qualifications for the vacant Trustee position. Both candidates are on the ballot for the upcoming 2021 Election November 2nd, 2021. Chairman Richards and Trustee Prosek had a short discussion regarding both candidates. Chairman Richards and Trustee Prosek both recommend that Jacob Treadwell be appointed for the midterm vacancy. Chairman Richards motioned to appoint Jacob Treadwell to serve out the remaining period of the vacancy starting this day September 21, 2021 through December 31, 2021. Trustee Prosek seconded the motion. The motion passed unanimously. Let it be noted that there were no public present.

 

Oath of Office-Appointment of Jacob Treadwell:  General Manager/Treasurer Mr. Hanson conducted the “Oath of Office”, swearing in Jacob Treadwell as trustee by appointment.  Mr. Treadwell will fulfill a 3-month term, which expires December 31st, 2021. The Trustees and Mr. Hanson offered their congratulations.

 

Public Hearing closed at 12:09pm.

 

 

 

2022 Preliminary Budget Discussion – Mr. Hanson discussed a letter from Spencer Evans, CFO of Cottonwood Improvement District from April 2021. The letter detailed the reasoning behind the possible 2022 rate increase for sewer treatment costs. In late 2020 Central Valley Water Reclamation District recalibrated several meters that measure entity flows into the plant. Cottonwood Improvement Districts flow readings were 20 – 30% lower than those prior to the recalibration. In August Mr. Hanson and Mr. Evans from Cottonwood had a phone discussion confirming the 2022 rate increase for sewage treatment costs of 25%. 2021 sewage treatment costs are $3.31 per 1000 gallons and for 2022 sewage treatment costs will be $4.40 per 1000 gallons. Mr. Hanson stated that Salt Lake City Public utilities is continuing their 5-year plan of raising their water rate by 5% each year. Mr. Hanson prepared three different budgets showing the different possible rate increases of 5%, 10% and 15% and were sent to the Board. Mr. Hanson reviewed the budget worksheet with the 15% rate increase for Salt Lake County Service Area #3 water and sewer costs. Mr. Hanson stated the direct costs are estimated from historical flow and consumption levels, while sewer flows are slightly lower than what was budgeted for in 2021 and 2021 water purchased seems to be tracking close to normal usage. The 2021 projected sewage treatment costs are $150,000.00, approximately $34,000.00 less than the approved 2021 budget. The 2022 preliminary sewage treatment costs are $195,000.00. The 2021 projected water purchased costs are $170,000.00. The 2022 preliminary water purchased costs at a 5% increase are $178,500.00.  Mr. Hanson briefly reviewed the salary planning for 2022. Projected 2021 wages are $262,776.00 and preliminary 2022 wages are $304,683.00, an increase of $41,907.00. Mr. Hanson reviewed projected 2021 Operating costs at $487,548.00, slightly under the approved 2021 Operating costs of $508,900.00. The preliminary 2022 Operating costs are $565,594.00, an increase of $78,046.00. The 2021 Capital Improvement projected costs are $115,500.00 slightly, higher than the 2021 approved budget of $83,500.00. The preliminary 2022 Capital Improvement costs are $146,000.00. Mr. Hanson discussed the Revenue and Income portion of the budget showing a 15% increase to water and sewer costs. Mr. Hanson stated the 2021 monthly residential charge is $103.52. The 15% rate increase would make the monthly cost to residential customers $119.05. Projected 2021 Revenue and Income is $1,080,219.00 and the preliminary 2022 Revenue and Income is $1,220,025.00. Chairman Richards asked Mr. Hanson to possibly increase sewage use numbers to better reflect a more normal use year going off of 2019 usage numbers rather than 2020. All three budget worksheets are attached to minutes for review.

 

Policy and Procedures review – Mr. Hanson stated that Ms. Alderin has been working with Mrs. Anderson from Fabian VanCott on updating the Salt Lake County Service Area #3 Policy & Procedures manual. Mrs. Anderson sent an email to Mr. Hanson and Ms. Alderin updating on the progress on her comprehensive review of the current Policy & Procedures manual. Mrs. Anderson feels it would be best to adopt a new comprehensive policy rather than updating the current policies and procedures. Mrs. Anderson stated the benefit of this approach is that all policies and procedures will be in one document as opposed to the current 18 different sections. It will also simplify policies in general to better fit a smaller employer like Salt Lake County Service Area #3.

 

SYSTEMS OPERATIONS AND DEVELOPMENT-

 

Snowbird Cogen Power Plant – Mr. Hanson stated as Snowbird works to switch things over to the new plant, it has caused numerous power outages which directly affects the Service Area office and Wasatch Drain Tunnel. One of the power outages caused Snowbird’s Mountain B transmission line to go to ground, which has caused the Peruvian Reservoir to lose power. The Service Area and Snowbird are working to get this repaired. Mr. Hanson discussed the ongoing issue of water usage for cooling the Cogeneration plant. Since August, the water usage from the Tunnel spiked to 1100 gallons a minute 24 hours a day. Mr. Hanson began working with Mr. Spencer from Snowbird Cogen to figure this large usage issue. An issue was found in the newly installed actuators which were opening when they were supposed to be closing and a valve that was sticking. Repairs to both issues have brought the water usage down significantly from 1100 gallons per minute to 370 gallons per minute. The Service Area and Snowbird will continue to monitor.

 

Town of Alta Grizzly Water System – Mr. Hanson stated on August 24th, we determined there was leak somewhere in the Grizzly water system. It was approximately 10–15 gallons per minute. The leak was located in the asphalt of the State Highway. The Service Area had Newman Construction come up with their vac truck to make the first excavation. The leak was located at the T in the pipe where West Grizzly comes off the line. Mr. Hanson stated the full repair was completed on September 16th.

 

 

Mr. Hanson gave a brief update of the following:

·         The Wasatch Drain Tunnel main ventilation blower that brings fresh air into the tunnel has failed after 40 years. Mr. Carpenter got a quote from Twin City Blower for $4,009.00. Mr. Hanson also received a quote from Shoppee and it was significantly higher than the Twin City Blower quote. Mr. Hanson has ordered the replacement blower from Twin City Blower.

 

·         The Service Area roof still having water seepage issues, we have dug up the entirety of the back half of the roof. Layton Roofing will be back up to seal the other scuppers and see if that is the proper repair.

 

·         The Service Area is still waiting on the replacement pumps for the Grizzly water system ordered in June and delayed due to supply/ shipping issues.

 

·         Waiting on Dominion Energy to install gas meters for both Bay City Mine and Grizzly pump vault.

 

·         Snowbird is currently installing freeze proof line to Hidden Peak.

 

·         Mr. Hanson and Mr. Carpenter cleaned the roots from the spring line at Mid Gad.

 

·         Cottonwood Improvement has begun cleaning and TV ‘Ing the sewer lines. They have made it through Alta down to the Entry 1 area of the main highway.

 

·         Working on issues with Lot 8 in the Blackjack subdivision sewer laterals. Mr. Hanson working with contractors and home owners to fix this issue.

 

·         The Meadows subdivision sewer lift station, has issues when the power goes out. Someone has to go and manually reset the lift station. The Cottonwood Improvement flusher truck cleaned out the sludge and grease from the 10,000-gallon Meadows lift station tank. While cleaning the tank it was found a check valve was leaking. Mr. Carpenter will order a replacement check valve and make the repair.

 

·         Ms. Alderin passed her Grade 2 water distribution operator’s test. She is now a certified water operator.  

 

 

 

TREASURER’S REPORT Mr. Hanson reviewed with the Board of Trustees, the Balance Sheet Previous Year Comparison report through September 30th, 2021. The Profit and Loss Budget vs. Actual January 1st 2021 through September 30th, 2021. These reports are emailed to members of the Board, prior to this Board meeting for their review. Financial reports are prepared by Salt Lake County Service Area #3. Copies of the financials are attached to the minutes.

 

 

APPROVAL OF BILLS PAID Chairman Richards moved that the bills listed on the check detail dated August 13th through September 16th 2021 as presented by Mr. Hanson hereby be authorized and ratified to be paid by the office manager. Chairman Richards asked for a motion to approve the check detail. Trustee Prosek motioned to approve. Trustee Treadwell seconded the motion and it passed unanimously. Copies of the approved bills are attached to the minutes.

 

 

MEETING MINUTES APPROVAL – Trustee Prosek asked that a correction be made to the meeting minutes from the August 17th, 2021 meeting. Chairman Richards changed the agenda in order to allow the clerk to make the corrections. With a change to the Approval of bills paid section of the minutes Ms. Alderin added Trustee names to the motion. “Trustee Prosek motioned to approve and Chairman Richards seconded the motion”. Chairman Richards asked for a motion to approve the 08/17/2021 meeting minutes as corrected. Trustee Treadwell motioned to approve and Trustee Prosek seconded the motion and it passed unanimously.

 

 

ADJOURNMENT There being no further business to be discussed, Chairman Richards motioned to adjourn the meeting at 1:28 pm.

 

 

Salt Lake County Service Area #3-Snowbird                     

 

 

__________________________________________________

Dave Richards/Chairman

 

 

ATTEST: _________________________________________

Bryauna Alderin/Clerk

 

 

DATE: ____________________________________________