MINUTES OF THE REGULAR BOARD MEETING OF THE BOARD OF TRUSTEES OF MAGNA WATER DISTRICT Board Meeting Minutes A regular meeting of the Board of Trustees of the Magna Water District was held Thursday,, at 3:00 p.m., at the WWTP Administration Office, 7764 W 2100 S, and Magna, Utah. Call to Order: Trustees Present: Mick Sudbury, Chairman Jeff White Georgia York Mick Sudbury called the meeting to order. Welcome Public Guests. Staff Present: Terry Pollock, General Manager LeIsle Fitzgerald, District Controller Kim Bailey, Water Operations Manager Steve Williams, Wastewater Operations Manager Also Present: Don Olsen, Epic Engineering David Hartvigsen, Smith Hartvigsen PLLC Clint Dilley, Epic Engineering Todd Richards, Magna Resident Dick Bezzant, Magna Resident Jack Weiss, Magna Resident Dan Peay, Magna Chamber of Commerce Ryan Bench, Carollo Engineers Darci Stephens, Ballard Spahr, LLP Alex Buxton, Zions Bank Public Finance Mark Crosby, Magna Resident Dan Stewart, Magna Resident Mick Sudbury welcomed the public and guests.
Approval of Common Consent Items: Board Meeting Minutes Minutes of workshop for the regular board meeting held June 19, 2014: A motion was made by Georgia York, seconded by Jeff White, to approve the minutes of the workshop held for the regular board meeting on June 19, 2014. The minutes were approved as follows: Jeff White, yea, Georgia York, yea and Mick Sudbury, yea. Minutes of the regular board meeting held June 19, 2014: A motion was made by Georgia York, seconded by Jeff White, to approve the minutes of the regular board meeting held June 19, 2014. The minutes were approved as follows: Jeff White, yea, Georgia York, yea and Mick Sudbury, yea. Report of Budget vs Actual as of June 30, 2014: LeIsle Fitzgerald presented to the Board the report of budget vs actual as of June 30, 2014 indicating that the sales were up 6% compared to last year at this time. The expenses remain to be under budget year to date. Expenses for June 14, 2014 to July 4, 2014: A motion was made by Georgia York, seconded by Jeff White, to approve the expenses from June 14 July 4, 2014 in the amount of $169,339.11. The motion was approved as follows: Mick Sudbury, yea, Georgia York, yea and Jeff White, yea. Zion s Bank bond payment approval: A motion was made by Georgia York, seconded by Jeff White, to approve the Zion s bank bond payment in the amount of $$482,127.30. The motion was approved as follows: Mick Sudbury, yea, Georgia York, yea and Jeff White yea. Public Comments: Chair recognized Jack Weiss: Jack Weiss apologized for his behavior and language at the last board meeting. Board accepted his apology. Jack also wanted for each trustee to comment on why they ran for the Board of Trustee position. Georgia York replied that her reason for running was to find ways to save the District money. Mick Sudbury replied that his reason was that he had lived in this community his whole life and felt like he could be an asset to Magna Water and he expressed that he felt that so far he has done a good job as a Trustee. Jeff White replied that his reason was because his grandfather asked him to get involved in the Magna Water District and he kept putting it off and now with the age and time of his life that he wanted to get involved and do what his grandfather asked him to do.
Jack Weiss thanked each one. Mick Sudbury apologized to Jack Weiss also on the confusion of the last month s board meeting. The Board s intention with the procedure of the last board meeting was to run it similar to a city. The Board likes to have a workshop period before the board meeting if it is a big agenda. Each month as of late it has not been consistent. The Board meeting was to be held at 3:00 pm not the workshop. The Board felt by having a workshop prior to the meeting it would allow the public to hear all of the discussion, with no comment allowed in the workshop, but then in the regular board meeting when it came to public comment period, the public would be able to have their comments ready based on the information heard in the workshop. In no way did the Board intent to inconvenience any public by proceeding in that direction. Discussion and possible motion to adopt the amended Resolution 2014-03, regarding the certified tax rate: LeIsle indicated to the Board that this resolution was adopted in the last board meeting. When LeIsle submitted it to the County, it was brought to her attention that if the District wanted to collect on the judgment levy, the District would have to have truth in taxation. Knowing that the truth in taxation is an expensive process, the cost of the truth in taxation process versus the judgment levy of $6,000 would be almost equal to or exceed the revenue, Staff decided to not levy the judgment for 2014 which revised our proposed certified tax rate. A motion was made by Georgia York, seconded by Jeff White, to approve the certified tax rate for water purification and sewer disposal tax rate of 0.000941 and debt service tax rate of 0.001820 for a total tax certification rate of 0.002761. The motion was approved as follows: Georgia York, yea, Jeff White, yea and Mick Sudbury, yea. Discussion and possible motion to adopt the amended resolution 2014-04, regarding the amendment of the 2014 Budget: LeIsle explained that this resolution also was adopted in the last month s board meeting and for the same reason as explained above, the amount of revenue that is in the 2014 budget has to be altered to show the amount of revenue that is being levied. Therefore, the resolution has to be amended from last month. A motion was made by Georgia York, seconded by Jeff White, to adopt the resolution 2014-04 as amended. The motion was approved as follows: Jeff White, yea, Georgia York, yea and Mick Sudbury, yea. CONSIDERATION FOR ADOPTION OF A RESOLUTION OF THE BOARD OF TRUSTEES OF MAGNA WATER DISTRICT (THE ISSUER ) AUTHORIZING THE ISSUANCE AND SALE BY THE ISSUER OF NOT MORE THAN $2,150,000 AGGREGATE PRINCIPAL AMOUNT OF ITS GENERAL OBLIGATION BONDS, SERIES 2014 AND RELATED MATTERS: Alex Buxton presented to the Board the parameters resolution to be adopted. In the resolution it states that the District is requesting proposals from purchasers to purchase the District s bond in the amount of $2,150,000. This bond will replace the bond that the District is paying off in 2014 so that the tax levy will not change for the residents. The term for the bond payments is going to be structured to be paid in full within three years. The parameters in the document are set as 4 years 2 ½% and dollar amount and a discount. The parameters are slightly higher than what Bond Counsel anticipates,
but it is stated higher is to be sure the parameters are not exceeded with the purchasers and the market. Alex Buxton handed out a calendar of events to the Board. A public hearing has to be held regarding the general obligation bond. Zion s public Finance will be sending out to several banks to bid on. Mick Sudbury invited the public to ask Alex Buxton any questions that they may have. Dan Peay asked if the District had a project that the bond proceeds will be used for. Mick Sudbury indicated that yes the District does have a project. Terry explained that the District will be using the funds to construct a brine line from the EDR facility over to the wastewater treatment plant and also to reroute and upsize some sewer lines including lines on 7200 W. Dick Bezzant suggested that Staff also mention that the brine line will be carrying 1 MGD to the wastewater treatment plant. LeIsle asked Alex Buxton on the public hearing, will Ballard Spahr be the responsible party to advertise the notices. Alex indicated that yes they will be responsible for that. Mick Sudbury suggested that maybe the Board schedule a special board meeting just for the public hearing. The other board members and staff thought that it would be a good idea to do that. A motion was made by Georgia York, seconded by Jeff White, to accept the resolution authorizing the issuance and sale by Magna Water District, the issuer, of not more than $2,150,000 aggregate principal amount of its general obligation bonds, series 2014 and related matters and to hold a public hearing and special board meeting on August 7, 2014 at 3:00 p.m. The motion was approved as follows: Mick Sudbury, yea, Georgia York, yea and Jeff White, yea. Discussion and possible motion to approve the Utah-Idaho Teamsters Security proposed rate increase of $86.66 per month per employee at the 97% - 3% split as negotiated in the union contract: LeIsle indicated that the Utah-Idaho Teamsters Security is requesting an increase to be effective for August 2014 hours worked. The Trustees asked what the District was paying currently, LeIsle indicated that the District is currently paying $1,357.52 and the employee is paying $41.98 per month. Georgia asked if the Board wished to change the split how would the Board go about it. David indicated that the Board would have to address any changes in union negotiations which are negotiated each year. LeIsle explained that the insurance was experiencing a big increase in claims. A motion was made by Georgia York, seconded by Jeff White, to approve the Utah-Idaho Teamsters Security proposed rate increase of $86.66 per month per employee. The motion was approved as follows: Mick Sudbury, yea, Jeff White, yea and Georgia York, yea.
Discussion and possible motion to award the pump project at the wastewater plant for the non-potable water system: Board tabled item. Discussion and possible motion on the analytical consultant/chemist specialist to fill Lyle Ford s position as a third party consultant: Board tabled item. Discussion on the water conservation pamphlet to go to all residents in the mail: LeIsle indicated to the board that the water conservation pamphlet is being produced and will be mailed as a separate mailer. Georgia York made a motion to proceed with the mailer with cost not to exceed $3,000. The motion was seconded by Jeff White and approved as follows: Mick Sudbury, yea, Georgia York, yea and Jeff White, yea. Discussion and possible motion on the EPA grant for the wastewater treatment plant upgrade: Clint with Epic Engineering indicated the EPA has some grant assistance for storm water. The program is called an integrated municipal storm water and wastewater planning program. Epic Engineering reached out to Salt Lake County who manages the storm water on Kersey Creek and asked if the District could combine efforts with Salt Lake County to put in the request to get funding assistance. Steve Burgeon, Salt Lake County, was very supportive. There is data from the District that the County could use to help them; the majority of the assistance would go to the District to start looking at how these upcoming limits that will be on the discharge permit are going to impact the District. The funding would be about $67,000. That would be provided as assistance, EPA has their own consultants that they use, they would come in and sample, and make recommendations of what the District could do to handle the limits. A motion was made by Georgia York, seconded by Jeff White, to proceed with the application on the EPA grant for the wastewater treatment plant upgrade. The motion was approved as follows: Jeff White, yea, Mick Sudbury, yea, and Georgia York, yea. Discussion and possible motion to adopt a District mission statement: Terry presented to the Board a proposed mission statement, vision statement and guiding principles. The Trustees recommended a few changes. A motion was made by Georgia York, seconded by Jeff White, to adopt the District mission statement, vision statement and guiding principles as presented with suggested changes. The motion was approved as follows: Mick Sudbury, yea, Georgia York, yea and Jeff White, yea. Water Distribution/Production: 1. Water production report: Kim indicated to the Board that 246 million gallons were used consisting of culinary finished blend at the plant and Jordan Valley Water. An average of 8.2 MGD. Year to date production is up 2%. 2. Call out report: Kim reported that there were five call outs for leak checks, two of those were main line breaks that crews were called out. One was a service line
and two customer side leaks. One leaking fire hydrant and the one call out for a customer with no water. No call outs for the EDR facility. WWTP Operation/Collection System: 1. Status of sewer system: Steve reported that the collection system is camering the lines and using the vac truck. The wastewater staff has been working on the landscaping around the new Administration building. The treatment plant is operating excellent. The warm weather helps with that. 2. Call out report: Steve reported that there was two call outs at the wastewater treatment plant. One was a power outage, needed to be reset. A plant drain level gate stuck on the contact basin. Other Business: (Motion has already been made, just a reminder) Intermountain Section AWWA, September 10 12, 2014, St. George, UT (Motion has already been made, just a reminder) WEFTEC, September 27 October 1, 2014, New Orleans. Mark Crosby asked a few questions. He inquired that at a Kearns Improvement District he attended that they were talking about RFP s and they indicated that they couldn t reveal the dollar amounts on the RFP s in the meeting. Magna Water has agenda items with pricing on them. He wondered why. David Hartvigsen indicated that it depends on the type of procurement that the District is doing. When an evaluation is being done on who you want to have the initial evaluation the price is out of the discussion and then added at the end. When the procurement gets to this point where it s being approved you have to approve a dollar amount. Mark Crosby also had a comment on the bond proceeds and where it was going to be used, he was under the impression that the District was going to use it on a secondary water pond, and other main lines. He asked if that was still being considered. Terry indicated that the District has secured the property for zone three, but it does not include any secondary water plans as of now. The money will be used for a brine line project. Dick Bezzant made a comment on the June bills. He questioned about the APA Benefits payment.
Management answered that it was for the retirement of Brent Williams. LeIsle indicated that the APA Benefits are the administrators for the pension and 401(k) plan. Dick asked if there were contracts with the management. Management indicated that the plan is in the Administrative Rules and Regulations. Motion to meet immediately in closed session to discuss land purchase: Georgia made a motion to meet in closed session to discuss land purchase. The motion was seconded by Jeff White and approved as follows: Jeff White, yea, Mick Sudbury, yea, and Georgia York, yea, at 4:26 p.m. Chairman entertained a motion to close the closed session and reopen the open board meeting session. The motion was made by Georgia York, seconded by Jeff White at 4:47 p.m. The motion was approved as follows: Jeff White, yea, Georgia York, yea and Mick Sudbury, yea. Discussion and possible motion on matters discussed in closed session: None Adjourn: The meeting was adjourned at 4:50 p.m. Attest Chairperson