General Information

Government Type

State Agency

Entity

Department of Environmental Quality

Public Body

Drinking Water Board

Notice Information

Add Notice to Calendar

Notice Title

Drinking Water Board Meeting Minutes

Notice Tags

Water and Irrigation

Notice Type(s)

Meeting

Event Start Date & Time

March 22, 2013 10:30 AM

Event End Date & Time

March 22, 2013 10:55 AM

Description/Agenda

Meeting Minutes MINUTES OF THE DRINKING WATER BOARD MEETING HELD BY TELECONFERENCE ON MARCH 22, 2013 AT 10:30 A.M. Board Members Present Staff Present Paul Hansen Kenneth Bousfield Ken Bassett Michael Grange Betty Naylor Misty Tabor David Stevens James Webb Terry Beebee Daniel Fleming Board Members Excused Russell Donoghue Tage Flint Heather Jackson Amanda Smith ITEM NO. 1- CALL TO ORDER The Drinking Water Board convened at 10:30 a.m. with Chairman Paul Hansen presiding. ITEM NO. 2- ROLL CALL Chairman Paul Hansen asked Ken Bousfield to call roll of the Drinking Water Board Members, the roll call showed that there were 7 members present. ITEM NO. 3- INTRODUCTIONS Chairman Paul Hansen asked any guest attending to introduce themselves, no guests called into the teleconference. ITEM NO. 4 FINANCIAL ASSISTANCE COMMITTEE REPORT 1) SRF Applications Funding Requests a) Goaslind Springs Water Works – (Julie Cobleigh) APPLICANT REQUEST: Goaslind Spring Water Works Company is requesting an additional $161,000 in funding due to the construction bids coming in over the estimated amount. STAFF COMMENTS: On July 13, 2012 the Drinking Water Board authorized Goaslind Spring Water Works Company a $378,000 construction loan at 0% for 30 years with $59,000 in principal forgiveness with the option to roll the balance of their $15,000 planning loan into the construction loan. Their project consists of spring upgrades, replacement of 7,460 feet of old leaking waterlines, construction of a new 50,000 gallon storage tank, a pump station, and a chlorination building. They currently have a storage capacity deficiency, which is significant and must be corrected. Goaslind Spring Water Works Company is located in Cove Utah, 2 miles south of the Idaho Utah border in Cache County. Cove has a local MAGI of $43,097, which is approximately 118% of the State’s MAGI. Their current water bill is approximately $24/month per connection. The funding previously authorized requires an increase in their water bill to approximately $66 per connection, which is 1.85% of the local MAGI. They are requesting the increase in funding to be authorized as principal forgiveness because of the fact that they have already had to increase their water bill by $42 per connection per month which is over 1.75% of the local MAGI. Staff proposes to provide financial assistance for the Goaslind Spring Water Works Company SRF project from the Federal Hardship Grant Fund. Money in this fund comes from Hardship Grant Assessments assigned to SRF loans in lieu of interest. This fund is maintained separate from the Federal SRF Loan Fund and financial assistance provided to Water Systems from this fund is not encumbered with the same requirements as assistance from the Federal SRF Program. Therefore, any principal forgiveness provided from this fund does not affect the limits imposed by Congress on the amount of principal forgiveness the Drinking Water Board may authorize. FINANCIAL ASSISTANCE COMMITTEE RECOMMENDATION: The Drinking Water Board authorize an increase of $161,000 in funding to Goaslind Springs Water Works Company to a total funding of $554,000 at 0% interest for 30 years with $220,000 in principal forgiveness. BOARD COMMENTS: Betty Naylor specified that the additional information provided to the Financial Assistance Committee was very helpful in reviewing the information she realized the town only has 50 residents, making the water bill for the residents large. David Stevens asked Michael Grange to specify what situations constitute a hardship. Michael Grange explained, The Hardship Grant Fund is allowed under the Federal SRF Program. In lieu of interest staff can charge a Hardship Assessment fee, the money that is repaid goes back into the general SRF Fund. The Hardship Grant Assessment is put into a separate fund, allowing staff and the Board significantly more latitude in how that money is allocated. It is not subject to all of the same requirements as the Federal Fund and it does not account towards the 20-30% window required for authorizing principal forgiveness out of the Federal Fund. Staff is proposing the whole funding authorized be taken out of that Hardship Grant Fund. The current balance in the Fund is at $2.5 million. Typically staff uses that money for planning loans, for Water Systems that aren’t a public entity, and on occasion for the smaller projects that need additional subsidization when they do not qualify for the State Funds. It doesn’t necessarily mean staff has to use the money for Hardship Communities; Hardship Grant is just the name for the fund that was chosen when initially set up. This loan is Federal money and in this case the staff is required to use Federal money because this is a Private Water Company. Michael Grange also clarified that if an audit where to be conducted at a later date, the approval of this loan under the Hardship Grant would not raise any issues and all criteria qualifying for a Hardship Loan is met. Michael Grange also mentioned that the packet reflects all criteria from the previous authorization all original requirements will be carried forward. MOTION: Motion made by Better Naylor to authorize the increase of $161,000 in funding bringing the total to $554,000 at 0% for 30 years, with $220,000 in principle forgiveness to the Town of Goaslind, seconded by Danny Flemming. CARRIED (Unanimous) b) Town of Manila – Emergency – (Julie Cobleigh) APPLICANTS REQUEST: The Town of Manila is requesting financial assistance in the amount of $446,000. They need to replace approximately 8,700 feet of waterline that has been experiencing numerous breaks. Staff has determined this to be an emergency project. STAFF COMMENTS: The town needs to replace approximately 8,700 feet of 8-inch transmission line that has had 25 breaks in the past six months, costing them approximately $40,000. The local MAGI for the Town of Manila, plus the outside residents being served by the water system, is estimated to be $36,667, which is 97% of the State MAGI. They currently have a water bill of approximately $42 per month, which is 1.36% of local MAGI. A full loan at 2.02% interest for 20 years requires an increase in their water bill to approximately $44 per connection, which is 1.44% of the local MAGI. Based on this information, they do not qualify to be considered for additional subsidization. However, based on the fact that this is an emergency project, we are recommending a reduction in the interest rate to 1.5%. FINANCIAL ASSISSTANCE COMMITTEE RECOMMENDATION: The Drinking Water Board authorize a loan of $446,000 at 1.5% interest for 20 years to the Town of Manila. BOARD COMMENTS: Michael Grange specified that the Town of Manila has many seasonal connections with campers and travel in the area. Ken Bassett acknowledged it is an emergency loan; he also acknowledged how good it is that they are able to quickly receive the money to resolve the issues they are having. However he does not agree it qualifies for the lowered interest rate, given that the increase of interest rate has a very insignificant effect on the current monthly water bill. Chairman Paul Hansen clarified that the current monthly bill is $42 and the increase at 2.02% brings it to $44, he stated he agrees with Ken Bassett stating that the emergency being addressed is really in helping them with the quick funding. Danny Flemming stated he is in a similar situation in replacing water lines; and looking at it from a customer point of view he is concerned about the 24% for engineering fee’s, they are paying 12% on his project, the amount of funds for engineering seems in excess according to the packet information. There is also concern about the construction management and construction administration being broken down separate financially in the loan packet. They should be included in one price. Michael Grange stated he will contact the engineer and investigate the charges and ensure that the fees for construction administration and construction management are not duplicated. Ken Bassett also questions the Engineering Survey/ROW/Bidding costs, his question is; are they replacing waterlines, or are they trying to establish a new right of way for it? He stated this is an extensive bit of money if they were just planning on replacing water lines however it looks like they are establishing a right of way. Ken Bassett asked Michael Grange to clarify these concerns with the Engineer. He also stated that normally the bidding and design go together, however they are broken out and he is concerned about duplicated charges. Michael will follow up and discuss the thought process with the Engineers he agrees construction management and construction administration should be one in the same; unless they are actually trying to get a rights of way, he mentioned that perhaps when the system was first installed they may not have actually done the right of way necessarily proper. The staff reviews and evaluates all bids and are sensitive to engineering costs and do take a look at that when going through reviews. MOTION: Motion made by Chairman Paul Hansen to authorize $446,000 at 2.02% for 20 years to the town of Manila, seconded by David Stevens. CARRIED (Unanimous) ITEM NO. 5 NEXT BOARD MEETING: Next Board Meeting: Date: May 10, 2013 Time of Board Meeting: 1:00 p.m. Location: DEQ Board Conference Room 195 North 1950 West Salt Lake City, Utah 84116 Phone: (801) 536-4200 Chairman Paul Hansen reminded the Financial Assistance Committee Members there will be a meeting held April 17, 2013. ITEM NO. 6 OTHER: Danny Fleming stated this would most likely be the last time he participated on the DWB, and thanked the staff for all their help throughout the years and stated it has been great getting to know them and working with them, Michael Grange thanked Danny in return. David Stevens stated it was his pleasure to work with staff and Board and get to know them all. Betty Naylor clarified that if the Governor has not appointed a new Board by the next meeting he can extend the current members terms by 90 days. ITEM NO. 7 ADJOURN: Meeting adjourned at 10:55 a.m. (No motion was made to adjourn the meeting) Misty Tabor Recording Secretary

Notice of Special Accommodations (ADA)

In compliance with the Americans with Disabilities Act, individuals with special needs (including auxiliary communicative aids and services) should contact Brooke Baker, Office of Human Resources, at: 801-536-4412, TDD 801-536-4424, at least five working days prior to the scheduled meeting.

Notice of Electronic or Telephone Participation

N/A

Meeting Information

Meeting Location

195 N 1950 W
Teleconference
Salt Lake City,
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Contact Name

Steph Alpizar

Contact Email

salpizar@utah.gov

Notice Posting Details

Notice Posted On

July 12, 2013 03:45 PM

Notice Last Edited On

July 12, 2013 03:45 PM

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