Board Meeting Minutes June 10, 2021
Monthly Board Meeting
June 10, 2021 @ 7:00 p.m.
Due to COVID-19 restrictions and concerns, this meeting will be hosted via Zoom Application without an anchor location. Any members of the public that would like to join the public portion of the meeting will need to email a request for invite to the District Clerk at admin@NFSSD.org or call 801.225.7263 or 801.404.4734 prior to the meeting/hearing.
Visit NFSSD.org for additional information including meeting minutes and a link to access The Little Manual for Local and Special Service Districts.
Monthly Meeting of the Board of Officers
Board members present:
Dr. Stephen Minton- Chairman, Stewart Olsen-Vice Chair, Duaine Dorton, Gary Liddiard, Chad Linebaugh, Keith Payne, Scott Hart
Staff members present:
Stephen Miche-Public Works Director, Aubree Lincoln-Public Works, Emily Johnson-District Clerk, Nathan Bracken-Legal Counsel, Ryan Taylor-Engineer, Joseph Martin-Controller
*Chief Marsella joined for only a short time but was not able to fully connect due to internet issues.
At approximately 7:25 p.m. Matt Jensen entered the meeting and left at approximately 8:20 p.m.
At approximately 8:00 p.m. Mindi Neilsen entered the meeting
At 7:00 p.m. the meeting was brought to order by Dr. Stephen Minton-Chairman.
#1 Exchange Application Presentation
– Sundance Resort Presented. Matt Jensen-Attorney for the Sundance Resort explained that some of the immediate projects the Sundance Resort is working on includes snow making and a snow making pond. In order for them to do that, they need to file an application with the State Engineer’s office to get approval. The State Regional Engineer, Ross Hansen is a hoping to avoid extra applications, he would like to review all applications at one time. For this reason, the Resort has prepared an Exchange Application. Matt stated part of the goal here is there is water the Resort intends to transfer for the SM2.0 building and water for the for the Bone Yard Office that they are transferring to the District (he believes 1.066-acre feet). He stated from the District’s perspective having that water approved for municipal use is very important, from the Resorts standpoint they want flexibility for commercial use. It was recommended that this application would work for the District and Resort moving forward. As discussion are taking place on how water dedication will work for everyone, he fully expects that as new projects begin, the water rights for those projects and new connections would be dedicated or transferred to the District, so there is all the reason in the world to have the municipal use which is a use that is controlled and had by the District and not by the Resort.
Matt shared his screen for the meeting to view a document named “Application for Exchange of Water State of Utah” exchange (X1013JREESE) BASE: 55-11091. Listed were North Fork Special Service District as interested party, Redford Natural Resources, LLC c/o The Sundance Group, LLC 20 AF and Storyteller Canyon Property Owner, LP 204 AF.
To avoid a two-step process where the District offers a letter of approval to the State of Utah Engineering office, if the District is comfortable with the application, he is asking that a representative of the Board sign the application. Current water rights would include Hamblin rights (formally called Esthma Tanner rights) 224 acre-feet from Deer Creek Reservoir, this includes 20 acre-feet from Redford Natural Resources, LLC and 204 acres from Storyteller Canyon.
A map showing the location of the planned NFSSD Well which was added to the application based on a 2012 survey. The water rights list points around this spring areas are the District sources. Matt stated nothing in this application gives preferential right or specific rights to the well.
Nathan Bracken asked if the reason he is asking if one of the reasons the well is being included in this application is if his clients dedicate water rights to the District now a subsequent change application would have to be done to add the well as a point of diversion. Matt confirmed that this is the case, the well is a District well and the District would have to agree to use. It will give flexibility to take the water from any of the sources included in the application. The application can take many months (up to 6-8 months).
A letter of support vs. co-applicant on the exchange was discussed. An emergent meeting to consider the matter further will be publicly posted tonight so a vote can be made by the Board on how to proceed with the Exchange Application will take place Friday June 11, 2021, at 2:30 p.m. via Zoom application.
#2 Report on Policy and Ordinance Review
– Nathan Bracken of Smith Hartvigsen PLLC (the new legal counsel representing the North Fork Special Service District) presented. He explained that his firm was given two tasks the District wanted resolved immediately. To assess the District’s policies and regulations and to evaluate water rights. His partner Jeff Gittins is in the process of comparing the large amount of State Engineer documents with the documents that have already been prepared.
Nathan has been working with District staff gather all the current policies and procedures adopted by the District. The District does not currently have a “District Code”. There are ordinance and documents that have been approved over the years by the District. Nathan presented a Power Point titled “NFSSD Presentation: Ordinance Update” that consisted of 6 slides. Policies that are needed and recommended were reviewed. Legislation, changing laws and other Governmental and auditing controls were discussed. Nathan stated he didn’t feel there was a lot that need to be changed with the District’s current policies but more to update and adding to the policies. The most pressing matter is adding clearer water dedication and service policies particularly water quantity and conservation measures and regulations. He also feels a rule of conduct regarding social media should be placed. Costs are a concern for the District, he feels an approach to keep costs down would be to have District staff reviewed already prepared templates and standard forms and to revise and return to the legal counsel to approve.
Discussion of rules of order and procedures and governance standards were reviewed. The District follows guidelines set by the State Auditors office and the Little Manual for Local and Special Service Districts and Robert’s Rules of Order. Working within the guidelines of the Open Meetings Act as well as outlining the special circumstances of our District and how our Board and staff function and their duties and responsibilities for the community was reviewed. The District needs to have written policies that deal specifically with how conflicts of interest is addressed and how ethics requirements are satisfied. This has been an issue that Utah State Auditors have been focusing on. Several the District Board members represent the largest customers in the District, having written policies and understanding of rules will reduce risk. The intent of having these rules is not to exclude any members of the Board but to ensure transparency on how the Board takes action and to protect the Board members.
- Create a NFSSD “Code” to incorporate existing ordinances and policies along with new updates and other necessary ordinances and policies.
- In the Rules of Order and Procedures, develop a NFSSD-District process to deal with conflicts of interest to create an agreed-upon transparent process that provides protection to Board members and staff.
- Possibility to specify a process in which subcommittees are created to negotiate contracts and agreements in situations in which board members have declared conflicts. 2-3 Board or staff without declared conflicts who would take the initial first steps of working with legal counsel to triage potential agreements, understand NFSSD’s legal obligations and risks and then provide recommendations to the full Board (including any members with declared conflicts) for Board review and action.
At approximately 8:14 p.m. the District Clerk asked if any new persons added to the meeting had a public comment. At that time Chad Linebaugh announced that he along with Stephen Miche and Dr. Minton met with Utah County in April 2021 regarding the tourism tax funds to see if the District qualified for any assistance for the proposed well. The Tourism Tax Board voted to support 1.5 million towards the well. The County Attorney who was also in attendance of the meeting declared it an illegal use of funds. A presentation to the County and State with the aid of Storyteller Canyon’s legislative consultant was made by Chad. He will continue efforts along with Dr. Minton for funding for the well. Dr. Minton asked that preparations for the well and design be prepared.
Ryan Taylor-Engineer reviewed the design and preparations for the well that have taken place including the power and water to the well and location of the well. A design by this fall and construction early 2022 or sooner is hoped to be achieved. Drilling timeline, how the well will be used, size of the well and a test well was discussed. Ryan stated drillers are not easily available and we also need to work with the Forest Service regarding seasonality and campers in the area.
#3 Fire/EMS Reports
Chief Marsella is currently deployed to a wildland fire and unable to attend the virtual meeting due to lack of internet access. Emily reported both the new and old engine are deployed with full crews. Scott Hart reported they originally were deployed to Nevada and then were sent to the Mammoth Fire in Utah, its anticipated they will return on Sunday. There is a fire restriction ordered by the Governor effective June 10th and is posted on the District’s social media. Steve Spiker, community member asked what resources are available in the District while the wildland trucks and wildland crew are out of town? Scott Hart stated we still have our department crew here at North Fork, water tinder, E211 and brush truck. We have not committed all our resources, just our wildland crew. We also have our local resources (Provo, Orem, Utah County, Forest Service, Wasatch County). The resources that come to this area automatic during any wildfire is National Forest, County, and air support right off the bat. It’s not let’s wait and see, its hurry and get it out to minimize loss. Keith suggested building crews in the area be made aware of the restrictions.
#4 District Clerk Information
– Emily Johnson-District Clerk presented. Check registers were emailed to the Board prior to this meeting. Emily stated the auditors visited the District to do their field testing on May 27th from 9:30 a.m. to approximately 4:00 p.m. It will be filled prior to the June deadline with the State and Squire will report their findings in the July board meeting.
Emily discussed getting internet through Starlink. Discussion of internet service ensued; Stewart Olsen stated we need to get a better set up, the District is bouncing off his Wi-Fi. The equipment for Starlink will cost approximately $500 and $100 per month for service. Duaine Dorton asked for a breakdown of service and costs.
#5 Financial Information
– Joseph Martin-Controller presented. The Financial Statements were sent out prior to this meeting to the Board for review. April statements were reviewed on screen. Income statements and budget to actuals were reviewed. The State Auditor asks that a risk assessment be done each year, Joe sent out an email on how to complete this assessment and do the trainings. He will put together a slide show on risk assessment to present to the Board. An audit committee needs to be designated for the District.
#6 Water/Wastewater Report
– Aubree Lincoln-Public Works presented. Graphs and reports were distributed to the Board prior to the meeting. Aubree reported we are slightly above water use from last year. Unaccounted water has slightly increased, most on the upper pressures zone but there is some on the Stewart side now too, they are trying to locate that 18.55% of unaccounted water from total source. Scott Hart asked what properties consist of the upper pressure zone. Aubree stated the upper pressure zone starts at Canopy (the house on the end of Canopy “Gardner’s”).
- District water consumption this same time last year is higher by 673,175 gallons or 2 acre-feet
- Deer Creek capacity is at 76% down from last month
- Jordanelle capacity is at 74% up from last month
- Aspen Grove Spring picked up on June 6-7th filling our wet wells. The Spring was late to increase for the season by about a month but looking normal now.
- Stewart Spring has picked up from 14 gpm to 38 gpm
- Wastewater lab results indicated that there were no violations for May out of the results the District has received, waiting on labs from May 27th and May 31st.
Stephen Miche reported that there will be a temporary loss of service while power is being moved during the EQ project. Odor control and electrical issues have been being dealt with, but the EQ basins are coming along. Estimated completion is July to August. There has been an issue with breaking up the nitrates in the filtering process, with the EQ basin coming online soon he wants to see what changes take place. Last month the air conditioning went out, it’s now becoming a health issue created by the biosolids in the building. Public works employees had to vacate the office. The air conditioning needs to be fixed, last quote was in the $8,000 range, they are getting bids for a fix. Duaine Dorton asked that the purchase of a new a/c unit be voted on in the emergent meeting tomorrow, it will be added to the agenda for June 11, 2021.
The SCAPO area where water is draining off causing road damage was discussed. Building up and grading on the berm may help this issue. The District will need to work with Sundance Resort on this matter, it needs to be addressed. Chad Linebaugh asked that Stephen put something in writing regarding this project.
Stephen reported that a meter had been installed. It was reading more water then being used, the meter was removed and replaced, and the customer was refunded for overages.
Jeff LaBar is seeking to connect legally to the District’s water system. A brief history of the issues was explained, although never voted on by the District, LaBar was directed by the Board to work with the District’s counsel at the time to get the proper work to connect legally to the system. The main to the line is on Sundance property. Stephen asks that the Board allow our legal counsel to review the matter. Discussion of individually metered properties was discussed. The property in question has been linked to another unit’s water (condo/townhouse structure). Chad Linebaugh stated he advised Stephen Miche and Mr. LaBar Sundance Resort is not interested or willing to grant that easement to hook into the District’s water system based on the information that has been shared with them. Nathan Bracken stated he will work with the District on the matter to remedy for the illegal connection.
#1 Approval of the May 2021 Board Meeting Minutes
Gary Liddiard moved to accept the May 2021 board meeting minutes as written, Duaine Dorton seconded. All aye, no opposed. Motion passed.
#2 Action and Voting on Next Steps District Policy/Ordinance
Motion for Nathan Bracken and Smith Hartvigsen PLLC to make needed changes on District policies was made by Stewart Olsen, Duaine Dorton seconded. All aye, no opposed. Motion passed.
Dr. Minton reiterated billing be made available in a timely manner to keep the District up to date on spending and for budget purposes.
At 9:33 p.m. Stewart Olsen motioned to close the June 2021 Monthly Meeting of the Board, Scott Hart seconded, all aye, no opposed. Meeting ended at 9:34 p.m.
- Minutes noted and recorded by Emily Johnson-District Clerk.
- All materials presented in the meeting will be posted as an attachment to the meeting minutes at NFSSD.org