October 20th, 2020

9567 E. Alta By-Pass Road

Snowbird, Utah 84092


                                    Tom Prosek, Vice-Chairman

Kate McGuinness, Trustee

                                    Keith Hanson, Gen. Mgr./Treasurer

                                    Steve McIntosh, Operations Manager   

                                    Kasey Carpenter, System Operator

Bryauna Alderin, Office Manager/Clerk




The October 20th, 2020 Board of Trustees meeting was held electronically due to the current Utah State requirements for social distancing due to the COVID 19 pandemic.


The Salt Lake County Service Area #3 Board of Trustees meeting was called to order by Vice-Chairman Prosek at 12:10 pm.


MEETING MINUTES APPROVAL – Trustee McGuinness motioned to approve the minutes from September 15th, 2020 meeting. Vice-Chairman Prosek seconded the motion and it passed unanimously.



2021 Preliminary Budget- Mr. Hanson reviewed the 2021 preliminary budget with the Board of Trustees. Mr. Hanson stated he was able to get 2020 amended budget numbers closer to what the actual direct cost. Mr. Hanson discussed the columns highlighted in blue are under budget and columns highlighted in yellow are over budget. Mr. Hanson stated he is budgeting for the 2021 as a “normal” year in hopes that’s what we will see. Due to the 90 day COVID-19 shut down direct costs are down. The water purchased and sewage treatment costs are down significantly from what was budgeted for 2020. Mr. Hanson stated since the last board meeting, he has talked with Salt Lake Public utilities and Cottonwood Improvement District about their rate increases for 2021. Cottonwood Improvement District is increasing sewage treatment rates from $2.99 per 1000 gallons to $3.37 per 1000 gallons for 2021. Mr. Hanson stated he has increased sewage treatment cost by approximately 11% increase for 2021 budget. Likewise for water purchased, Salt Lake Public Utilities will be raising the water purchased rate by 5% in July 2021. A budget increase from $163,000.00 to $170,352.00. Mr. Hanson stated that the rest of the budget numbers are relatively close to what has been budgeted in previous years, with a total increase of Direct Cost of approximately $21,000.00. Mr. Hanson moved on to discuss Operating Expenses, Mr. Hanson stated he put in wage increase place holders for the 4 full time employees and a small increase for summer maintenance workers. Mr. Hanson discussed the 2020 wage budget difference on Mr. Carpenter and Ms. Alderin it was stated both employees worked more hours than were budgeted for due to the Chickadee Utility Capital project. Wages are approximately $12,000.00 over what was budgeted for 2020. Employee health insurance is set to go increase by 5.4% from 2020. The accounting contract will increase by $40.00 per month for the 2021 budget. Mr. Hanson discussed the new line item that has been added to the 2021 budget; Training and Safety. This budget line has to do with the new safety committee and an employee recognition program for training and safety. 2020 Operating Expenses are up from the budgeted amounts by about $20,000.00. The Operating Expenses will increase $12,700.00 for the 2021 budget. Mr. Hanson stated the 2020 Capital budget was $363,000.00 and went over budget by approximately $30,000.00. 2021 Capital improvements are budgeted for at $98,500.00 for water and sewer system updates. Water improvements - Mid Gad improvements, Tunnel Rehab, Scada improvements (Move PCL from Firehouse to SA3), Office scada server and software updates, continued water meter upgrades and fire hydrant replacement. Sewer improvements Abandon old manholes 123-127, new sewer meter at the mouth of LCC and new manhole upgrades. Mr. Hanson then discussed Income portion of the 2021 budget. Mr. Hanson stated at the two pervious board meetings SA3 has opted not to do a rate increase for the 2021 budget due to COVID 19 pandemic. The purposed Income for 2021 budget is $1,066,465.00 Mr. Hanson stated that he has been working closely with Ms. Alderin and Mr. Carpenter on the budgeting process so they can begin familiarizing themselves and helping with the process. A copy of the 2021 preliminary budget are attached to the minutes.


Request for Proposal for Audit services- Mr. Hanson presented the Board with a draft RFP for auditing services that accountant Steve Rowley drafted. Ms. Alderin has sent it out to the following auditing firms Eide Bailly, Gilbert & Stewart, Larson & Co., Kimball & Roberts and HintonBurdick. Mr. Hanson stated we have on received a reply from one firm so far which was Gilbert & Stewart. Mr. Hanson stated a question to accountant Mr. Rowley concerning if we should reach out to the firms again or send the request to other firms. Mr. Rowley replied that there are only a handful of state auditing firms, and the Service Area has sent the RFP to them. Mr. Rowley stated that the Service Area could reach out to the firms to get an initial feel if the firm is interested but the majority of auditing firms don’t get the RFP back until a couple days before the deadline. Mr. Hanson stated himself or Ms. Alderin will reach out to see interest levels. The submission deadline for the proposals is November 13th 2020. A decision will be made at the December 8th 2020 Board meeting.




Chickadee utility project final cost –Mr. Hanson stated the final payment for the utility project has been made to Snowbird of $163,209.42. The last piece of the project was the final grouting of Manhole 128 and that has been completed, so the Chickadee Utility project is 100% complete.


Mid Gad water system corrective action plan- Mr. Hanson discussed the completion of the corrective action plan for the water tank lids at the Mid-Gad restaurant. The two Mid-Gad holding tanks have been brought to code. Mr. Hanson showed a picture of the completed tank risers and lids. On October 5th five division of drinking water engineers came up to inspect the work. The corrective action plan has been approved by the Division of Drinking Water. Photos attached to the minutes for review.


Wasatch Drain Tunnel Treatment Plant- Mr. Hanson discussed the source and upper level aquafers. Mr. Hanson stated that it has been a very dry year, no real moisture since March which has decrease our inflows significantly. The Service Area #3 has been using the Wasatch Drain Tunnel treatment plant approximately 4-6 hours every 2 to 3 days. Mr. Hanson discussed that while running the plant it has been found that the reclaim pump that reclaims the backwash water into the system has failed. Mr. Hanson stated most likely will have to replace the pump at a cost of approximately $2000.00.



Mr. Hanson gave a brief update of the following:

·         Safety Committee- First Safety Committee lunch held October 1st.

·         SA3 staff are continuing remote meter replacements and repairs throughout service area. 14 remote meters in need of repair in the Sugarplum village. 14 need to be replaced due to old technology (2 wire vs 3 wire). Zarbock plumbing will be assisting in the replacements of those out of date remote meters.

·         October 6th, Mr. Hanson gave a tour to Salt Lake City Public Utilities New watershed coordinator for and two coworkers to show our source locations and meters.

·         Mr. Carpenter and Mr. McIntosh working on final preparations for the distribution system. Exercise all valves and Fire hydrants in the distribution system. One problem found was 3 valve boxes where crushed by Snowbird heavy equipment. All 3 have been repaired and reinforced with concrete.

·         Bypass road across from Powderbirds, Pressure reducing vault flooded often with ground water. Service Area #3 dug and installed a 100 foot drain line so water can now freely flow out of the vault.

·         Mr. Carpenter has been recording the actual pressures at pressure reducing valves during distribution testing so we can compare how our systems line up. A couple valves left to finish the Service Area District. Then move up to the Town of Alta.

·         SA3 to relocate the oldest fire hydrant in the water system. Current placement is located in the right of way of new construction on Martha Road. SA3 will relocating and replacing to the south side utility corridor. Will be working with the contractor in the near future.


Town of Alta Council meeting- Mr. Hanson attended the Town Of Alta’s Council meeting October 14th. Mr. Hanson to discuss that the Service Area #3 is in process of replacing the media in Filter A. New media has been ordered and delivered. Mr. Hanson stated that are having issues with the current media passing the testing process for disposal. Mr. Hanson discussed the fact that the other filter media is being stressed due to have to being two months overdue on the disposal and replacement of Filter A media.


Town of Alta Bay City project- Mr. Hanson discussed progress on the Bay City mine pump replacement. Nickerson has requested that SA3 complete a pull test to ensure the current anchors will support the weight of the pump and pipe column going down the shaft. Mr. Hanson had completed the 5000 lb. pull test on the ceiling anchors. On Thursday October 15th Mr. Carpenter and Mr. Rugg where sent to get measurements for Bay City and found large fallen rocks where the pull test had taken place. Mr. Hanson stated that this has stopped work moving forward with the placement of the new pump. Nickerson Co. is scheduled to install the pump the second week of November. Mr. Hanson and Nickerson Co. will perform a new 5000lb pull test on the I beam in the roof the as the ceiling anchors are no longer safe for the pump installation. Mr. Hanson stated that test will determine the future schedule of the pump installation. Copies of pictures attached to minutes for review.



TREASURER’S REPORT Mr. Hanson reviewed with the Board of Trustees, the Balance Sheet Previous Year Comparison report through September 30th, 2020. The Profit and Loss Budget vs. Actual January 1st through September 30th, 2020. 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 financials are attached to the minutes.



APPROVAL OF BILLS PAID Vice-Chairman Prosek moved that the bills listed on the check detail dated September 11th through October 15th 2020 as presented by Mr. Hanson hereby be authorized and ratified to be paid by the office manager. Trustee McGuinness motioned to approve. Vice-Chairman Prosek seconded the motion and it passed unanimously. Copies of the approved bills are attached to the minutes.



ADJOURNMENT There being no further business to be discussed, Vice-Chairman Prosek motioned to adjourn the meeting at 1:37pm. 



Salt Lake County Service Area #3-Snowbird                     




Tom Prosek/ Vice-Chairman



ATTEST: _________________________________________

Bryauna Alderin/Clerk



DATE: ____________________________________________