SALT LAKE COUNTY SERVICE AREA #3 Ė SNOWBIRD
BOARD OF TRUSTEES MEETING MINUTES
December 13, 2016
at the Service Area Office, Fire Station/Community Center
PRESENT: Annamarie Borgione, Chairman
John Collins, Trustee-Via Phone Conference
Dave Richards, Trustee
Keith Hanson, Gen. Mgr./Treasurer
Steve McIntosh, Operations Manager
Monica Lisenbee, Office Manager/Clerk
Chairman Borgione opened the regular meeting at 11:59 a.m.
(Moved agenda item): DISCUSSION AND APPOINTMENT OF TRUSTEE TO SALT LAKE COUNTY SERVICE AREA #3-BOARD OF TRUSTEES
Chairman Borgione asked the attending trustees whether to follow the agenda as posted or to move item #4, (Discussion and Appointment of Trustee to Salt Lake County Service Area #3), to item #1 on the December 13th, 2016 meeting agenda. Trustee Richards so agreed to move the Discussion and Appointment of Trustee to item #1. Mr. Hanson then reviewed the recitals in Resolution 2016-8, Appointment of Trustee to Salt Lake County Service Area #3 - Board of Trustees. Chairman Borgione noted that the 4 interested candidates are: Tom Prosek, Glenn Hickey, Dan Schilling and Kate McGuinness and thanked them for their interest in fulfilling the remainder of Mr. Collins term. Ms. Borgione then opened the meeting for nominations from the Board. Trustee Richards made a motion nominating Dan Schilling as trustee to Salt Lake County Service Area #3, Mr. Collins seconded the motion and it passed unanimously. Ms. Borgione closed the nominations and declared by Resolution 2016-8, that Dan Schilling will fulfill the remainder of Trustee Collins term, beginning January 1st through January 31st, 2017.
PUBLIC HEARING: AMENDMENT OF THE 2016 SALT LAKE COUNTY SERVICE AREA BUDGET and 2017 BUDGET HEARING AND APPROVAL
Ms. Borgione called a public hearing at 12:08 p.m. to discuss and amend the 2016 Service Area #3 Budget and to also discuss and approve the proposed 2017 Salt Lake County Service Area #3 Annual Budget. No public was in attendance for this meeting. Appropriate postings were issued to public, county and government entities. In compliance with Title 17B, Part 1 of the Utah Code, Mr. Hanson presented to the Board, Resolution 2016-5, a resolution amending the 2016 budget and Resolution 2016-6, a resolution adopting and approving the 2017 budget. Mr. Hanson reviewed with the trustees the 2016 amended budget as well as the 2017 proposed budget. Mr. Hanson noted that he amended the 2016 to reflect actual expenditures. Cost of sales was budgeted at $265,305, when actual costs were $324,305, primarily to cover increased water and sewer rates. Operating expenses for 2016 were almost $30,000 less than budgeted, ending with approximately $6,000 in our infrastructure replacement fund. In the 2016 capital account, a new truck was removed to use those funds towards the sewer and scada improvements. Ending revenues are $816,460.00, which meet our goals. Dave Richards made a motion to amend the 2016 budget, and approved Resolution 2016-5, John Collins seconded and it passed unanimously. Mr. Hanson then discussed the 2017 Service Area budget. Mr. Hanson revised the salaries and wages to reflect a 2% cost of living adjustment for Service Area employees, which still keeps salaries and wages below what was proposed in 2016. Total direct costs are budgeted at $382,305. Operating expenses are budgeted at $410,050. The 2017 capitals include $60,000 for the sewer system improvements on Chickadee for the pedestrian tunnel and a new Service Area vehicle. Reviewing the revenue section, this includes a 15% rate increase in water and sewer fees, which will be approximately a $110,160 annual increase. There will also be a 15% increase to the Alta Intelocal Agreement contract. Total revenue for 2017 including interest is budgeted at $930.960.00. Trustee John Collins verified that water and sewer will increase as of January 1st, 2017 at 15%, and the Service Area will notify customers in mid-2017 of an additional 8% increase in 2018. Based on Mr. Hansonís projections thatís what will take place. Ms. Borgione made a motion approving and adopting Resolution 2016-6. Mr. Collins seconded the motion and it passed unanimously. Mr. Hanson will submit an electronic copy of this budget along with a certification letter to the Utah State Auditorís Office for their review and approval.
PUBLIC HEARING FOR DISCUSSION AND APPROVAL OF RATE RESOLUTION #16-2016-9
Mr. Hanson reviewed the recitals in Rate Resolution #16-2016-9, with the Board of Trustees. Section #1 so states the rate increase of 15% for water and sewer, which would be an approximate $11.00 monthly increase for our residential customers. Section #2 and #3 remain the same in this resolution, and states the rate increase will be effective as of January 1st, 2017. Section #4 that all sections and provisions of any or all previous rate resolutions not amended will remain the same. With no further discussion, Chairman Borgione moved to approve Rate Resolution #16-2016-9, and Dave Richards seconded the motion and it passed unanimously.
PUBLIC HEARING FOR DISCUSSION AND APPROVAL OF TOWN OF ALTA/SERVICE AREA #3-INTERLOCAL AGREEMENT-RESOLUTION 2016-7
Mr. Hanson reviewed Resolution 2016-7 with the Board. The Town of Alta approved at their December 8th, 2016 meeting, Resolution 2016-R-8, (A resolution authorizing the extension and amendment between the Town of Alta and Salt Lake County Service Area #3). Referring to our Resolution 2016-7, (Interlocal Agreement between the Town of Alta and the Service Area, the monthly fee will increase from $2,000 to $2,300 per month. The hourly rate will increase from $50.00 to $55.00. Chairman Borgione made a motion adopting Resolution 2016-7, John Collins seconded the motion and it passed unanimously. Chairman Borgione closed the public hearings at 12:16 p.m.
MEETING MINUTES APPROVAL
Ms. Borgione, called the regular meeting to order at 12:17 p.m. Ms. Borgione moved to approve the November 15th, 2016 regular meeting minutes. Trustee Richards seconded the motion and it passed unanimously.
DISCUSSION OF THE 2017 ANNUAL MEETING SCHEDULE
Mr. Hanson presented to the Board of Trustees, (as prepared by the clerk), the 2017 Annual Meeting Schedule. After a brief review of this schedule Chairman Borgione made a motion to approve the 2017 Annual Meeting Schedule. Trustee Collins seconded the motion and it passed unanimously. The clerk will post this schedule and it will be available on our website.
SYSTEMS OPERATIONS AND DEVELOPMENT
Sewer System: We have received the Newman invoice, ($16,802.90). This is $2,532.90 over the initial estimate, because of the length of time to repair 3 sections in the pipe, pumping and materials. The Alta portion will be $4,822.43, The Service Area actual cost is $11,980.17. Mr. Hanson is pleased with the repair.
Chickadee Realignment: Mr. Hanson is working with Snowbirdís architectsí and engineers and also Darren Hawkes, (Aqua Engineering), on getting the water and sewer alignments to correspond with the Snowbird project of the pedestrian tunnel on Chickadee. Mr. Hanson may have drawings at the next Board meeting.
Meadows Pump Station: We have paid for the repair for one of the pumps, ($7,800), in the Meadows Pump Station. We experienced a problem trying to run the pump with the phase convertor, as it wasnít operating appropriately. An electrician replaced the phase convertor with a variable frequency drive which is the new technology. If the other pump fails we will follow this same repair. Mr. Hanson wants to be certain this is operating correctly as not to cause any flooding to the expensive real estate in the area.
Alta Town Council Meeting: Mr. Hanson attended the recent Alta Town Council meeting to update them on their system. On November 30th, 2016 the Service Area changed the media in filter A in the Alta Bay City Plant. Becks Sanitation assisted in the removal of the spent media with their vac truck. The filter was then reloaded with the new media. Mr. Hanson noted that we received over 220,000 bed volumes of treatment from filter A, which exceeded our calculations by 100,000 bed volumes. Filter B, which was the lag filter is now the lead filter as we have not put filter A back in service. The media has been back washed in Filter A and will sit in stand-by until Filter B media shows us 4 ppb on the effluent. This does tell us how the Hidden Peak Plan will do with antimony treatment.
Mr. Hanson also updated the council on the following:
Grizzly Auxiliary power plan, using a small 6500 watt power Honda generator.
The Town of Altaís Sanitary Survey.
Drinking Water Source Protection Plant Updates.
Rate increase to the Alta/Service Area Interlocal Agreement Contract.
Water Protests: As of December 1st, 2016, two of the applications filed by JLC, (Evan Johnson), have been denied by the State Engineers Office. The Service Area filed protests on these applications. JLC has since filed another application for two more wells in Albion Basin.
Drinking Water Source Protection Plan: Our Drinking Water Source Protection Plan has been updated by Aqua Engineering and has been submitted to the State. The updates included the building on Hidden Peak and Alta.
Snowmaking: Current snowmaking usage is at 45 million from the contract of 80 million. Snowbird has requested an additional 15 million to Salt Lake City Public Utilities.
Snow blower: We have purchased a new/used snow blower, as the old snow blower needed a new transmission.
Delinquent Account: Ron Ferrin continues to be past due on his account. Payments are being made on the monthly amount; however, he is not addressing the accumulated overages on his account. Mr. Hanson will send yet another letter requesting payment in full and as Trustee Richards stated, if the account is not paid within 30 days, the board can discuss what options to take, i.e. lien on property.
Building Improvements: Mr. Hanson is obtaining quotes for installing a stairway and improvements to the kitchen area.
Mr. Hanson reviewed with the Board of Trustees, the Balance Sheet Previous Year Comparison report ending November 30, 2016, and the Profit and Loss Budget vs. Actual ending November 30, 2016, as prepared by Salt Lake County Service Area #3.
APPROVAL OF BILLS PAID
Ms. Borgione moved that the bills listed on the November 16th, 2016 through December 13th,, 2016 payment registers, as presented by Mr. Hanson hereby be authorized and ratified to be paid by the manager. Mr. Richards seconded the motion and it passed unanimously. Copies of the approved bills are attached to the minutes.
SPECIAL NOTE: Mr. Hanson thanked Trustee Collins for his 3 years of service on the Board for Salt Lake County Service Area #3 and wished him well.
There being no further business to be discussed, a motion to adjourn was made, seconded and unanimously carried at 12:51 p.m.
Salt Lake County Service Area #3-Snowbird
Monica L. Lisenbee/Clerk