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SALT LAKE COUNTY SERVICE AREA #3 Ė SNOWBIRD

BOARD OF TRUSTEES MEETING MINUTES

November 15th, 2016

at the Service Area Administration Building

PRESENT: Annamarie Borgione, Chairman

John Collins, Trustee

Dave Richards, Trustee-Delayed

Keith Hanson, Gen. Mgr./Treasurer

Steve McIntosh, Operations Manager

Absent: Monica Lisenbee, Office Manager/Clerk

MEETING MINUTES APPROVAL

Chairman Borgione called the regular meeting to order at 12:02 p.m. Ms. Borgione moved to approve the September 20th, 2016 regular meeting minutes as written. Mr. Collins seconded the motion and it passed unanimously.

SYSTEMS OPERATIONS AND DEVELOPMENT

Sewer Improvements: (Repair)-Mr. Hanson discussed and presented photos of the Chickadee sewer line repair with the Board. Newman construction was hired to conduct this repair of 6 feet of the sewer line on October 20th. Mr. Hanson commented that it had severe deterioration and was not certain if the damage was from water infiltration or a leak from the water main. (Future Alignment)-Mr. Hanson is working with Snowbird and engineers on the re-alignment of the sewer and water lines. They will be affected by Snowbirds proposed pedestrian tunnel. Mr. Hanson is negotiating with Snowbird what costs the Service Area will be responsible for. (Manholes)-Following all of the work that Cottonwood Improvement did with the sewer, 6 manholes were raised. Two of the manholes were billed to Snowbird.

Meadows Pump Station: The project of re-installing the Meadows pump station pump and motor is complete. The cost was $7,800 to rewind the motor and refurbish the pump. We still need to address some issues with the phase convertors, and hope to have this system in operation by the end of this week.

Alta Leaks: Mr. Hanson reported of water leaks in the Town of Alta. One of which was on the lateral of the McIntosh cabin and the other at the Liness house under their driveway.

Alta Media: The media in filter A in the Bay City plant has expired and confirmed by sampling it is at the end of its useful life. The Town purchased media 3 years ago and we will be scheduling a date for media replacement soon.

Grizzly Pump Station: Mr. Hanson stated that he may have a solution for the Bourkeís, who attended a recent meeting, regarding improvements for auxiliary power for the Grizzly water system.

Creekside Remodel: The water line has been flushed and tested down into the building. Before the new sewage lift station can be put into service, Mr. Hanson stated they need heat in the building to run through the line so it doesnít freeze.

Water Sampling: Mr. Hanson mentioned that we have a fair amount of water sampling requirements this month, (November 2016), to include: Vocís, inorganics, radiologicals.

We now have reduced water sampling on the Hidden Peak system for lead and copper.

Water Protests: Mr. Hanson discussed the recent water protests submitted by the Service Area to the State Engineerís office on filings submitted by JLC, to include the filing on water in Albion Basin and a test well on Snowbird property, both of which are within our source protection zone.

Wasatch Drain Tunnel & Treatment Plant Replacements: Mr. Hanson purchased some new valves for the Wasatch Tunnel for $900.00.

Workers Compensation Audit: Board members were given copies of the Workers Compensation Audit conducted through the Utah Local Governments Trust.

ULGT Dividend: The Service Area received a $3,000.00 from the Utah Local Governmentís Trust, (liability insurance), for limited overall claims.

2017 Budget Discussion: Board members received 2017 budget information with updated revisions after trustee recommendations. Mr. Hanson included rate increase proposals, (5%-20%). Due to the significant increases from Cottonwood Improvement District, (25% in 2015/2016). For 2017 the sewage treatment rates will increase 23% and in 2018 a 15% increase. Rates are driven by infrastructure issues to the Central Valley Reclamation Treatment Plant. Salt Lake City Water Corporation has also been increasing water rates, an average of 4% per year and continues to do so. Because Snowbird is our largest customer, Mr. Hanson met with Lee Herron to discuss our proposed budgets. Displayed on the budget were optional rate increases at 10%, 15%, & 20%. Mr. Hanson discussed our operating expenses for 2017 trimming costs as best as possible. In discussing our capital portion of the budget, Mr. Hanson estimates costs at $65,000 in capital improvements. It is unlikely to put funds into our infrastructure replacement accounts, but rather focus on building our reserve accounts. Referencing the 2017 revenue section of the budget, Mr. Hanson commented that a 10% increase would be a negative in the revenue portion of the budget. A 15% increase for Snowbird is $110,000 vs. a 20% increase at $146,000. Mr. Hanson has notified the Town of Alta, informing them of a 15-20% increase, as well as increases to snowmaking water. Snowbird would prefer the 15% increase in 2017. Mr. Hanson recommended a 15% increase effective January 1, 2018 and then an 8% increase in 2018. Ms. Borgione asked if we realized we did not raise rates enough, could we raise them anytime. Mr. Hanson stated that we can hold a rate increase as needed. Mr. Hanson said we need to increase to meet our obligations and address improvements. Mr. Hanson encouraged the Board for any input and to advise him of their recommendations. Both trustee Collins and Richards were in favor of the 15% increase effective 1/01/17 with notice later that there will be another increase of 8% effective 1/01/18.

Policies and Procedures: The Service Area will be reviewing and updating the Policies and Procedures. Mr. Hanson would like to review the benefit portion of the policy and make some revisions for future employees of the Service Area.

TREASURERíS REPORT

Mr. Hanson reviewed with the Board of Trustees, the Balance Sheet Previous Year Comparison report beginning September 1st, through October 31st, 2016 and the Profit and Loss Budget vs. Actual beginning September 1st, through October 31st, 2016 as prepared by Salt Lake County Service Area #3.

APPROVAL OF BILLS PAID

Ms. Borgione moved that the bills listed on the September 21st, 2016 through November 15th, 2016 payment registers, as presented by Mr. Hanson hereby be authorized and ratified to be paid by the manager. Mr. Collins seconded the motion and it passed unanimously. Copies of the approved bills are attached to the minutes.

Board of Trustee Resignation: The Board of Trustees received a letter of resignation from John Collins, which will be effective December 31st, 2016.

Procedures for appointment for a trustee to fulfill the remainder of Mr. Collins, (12/31/17), terms will take place.

ADJOURNMENT

There being no further business to be discussed, a motion to adjourn was made, seconded and unanimously carried at 1:33 p:m.

Salt Lake County Service Area #3-Snowbird

_____________________________________________________

Annamarie Borgione/Chairman

ATTEST:___________________________________________

Monica L. Lisenbee/Clerk

DATE:______________________________________________

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