DRAFT

North Fork Special Service District
Monthly Board Meeting
March 12, 2020 at 7:00 pm
North Fork Fire Station

Board members present:
Stewart Olsen-Vice Chair, Keith Payne, Duaine Dorton, Gary Liddiard, Thomas Merrill, Bert Thomas

Dr. Stephen Minton-Chair arrived at 7:09 p.m.

Staff members present:
Emily Johnson-District Clerk, Ryan Taylor-TO Engineering, David Marsella-Fire Chief, Joseph Martin-Controller, Lee Kapaloski-Legal Council

Public Present:
Chris Storbeck, Ben Rucker, Joel Farrer, JB Armstrong

Proceedings:
March 2020 Monthly Meeting of the Board was brought to order by Stewart Olsen-Vice Chair at 7:00 p.m.

Public Comments
– Ben Rucker stated he was here to inquire about access to water.

Informational Items
#1 Financial Report
– Joseph Martin- Controller presented. Joseph stated there has been a lot of time spent working on correcting the chart of accounts and combining them into revenue generating departments as the Board had requested. Joseph hopes to have the audit preparation completed by the end of April. A check register was submitted by the District Clerk in the Board packets electronically prior to the meeting to be review by the Board. A Revenue Expense report will be presented to the Board next week, we are still identifying some capital assets.

#2 Fire/EMS Reports
– Fire Chief David Marsella presented. Chief Marsella stated fire stations across the State are closed due to the Coronavirus, and dispatches are being handled differently. Anyone calling with symptoms of the Coronavirus are being referred to their physicians, they are not being transported via ambulance. Chief Marsella reported group meetings are being discouraged as well as other community gatherings. He will evaluate closing our station over the weekend as many of our firefighters and medics are exposed through other employment across the Valley. It was inquired what type of protection equipment our fire department has, Chief Marsella stated at this time face masks are the only protective equipment we have. Testing of the virus was discussed and the lack of availability of testing.

Dr. Minton-Chair arrived and was asked about the Coronavirus and any information he could share. He stated this virus is one the human body has not seen. Dr. Minton went into some detail regarding viruses and the human bodies response including immune responses, testing, antibodies and the stages we are in facing this virus. Dr. Minton stated ideally people should be quarantining themselves and that we should cancel next month’s meeting or conduct it via telephone. Dr. Minton suggested working from home and not going anywhere unless you absolutely need to for the next two months to avoid spreading or contracting the virus.

Chief Marsella discussed a recent fire in Springville City, a ceiling collapsed on first responders. County wide this is being reviewed to see if protocols were followed properly and how matters could be handled better in the future.

There were 23 calls last month, 10 patients were transported to the hospital by ambulance. In February $18,000 was submitted in ambulance billings, we have collected year to date approximately $20,000.

Chief Marsella reported he is meeting with The State Lands and Forest Fire personnel on Monday March 30th to discuss Grants. Everyone is welcome to attend; it will be held at the Fire Station at 2:00 p.m. to discuss fire mitigation in the Canyon. Dr. Minton suggested this be postponed due to the Coronavirus.

Insurance Services Organization (ISO) will be here in May to review mitigation and water supply in the canyon, this is a 6 month process. Chief Marsella is hoping we can maintain our ISO rating. This will affect fire insurance for properties in the canyon. Chief Marsella will keep everyone updated on information regarding this as he receives it.

#3 District Clerk Information
– Emily Johnson-District Clerk presented. She reported she has reached out to the County regarding vacant seats on the Board. They didn’t have any new information. Dr. Minton stated he called the County to discuss the 8-member board and reducing it to a 7-member Board to avoid tie votes and assigning the Board Members to areas of expertise. Dr. Minton reiterated the County appoints members; the North Fork Special Service District (District) doesn’t appoint its members. Dr. Minton asked that the current Board Members “step up” and become involved in an area that they feel they can contribute some expertise. Dr. Minton will call each Board member individually to discuss this further. Dr. Minton stated conservation needs to be a priority.

#4 Community Water Committee/Adjudication Update
– Stephen Miche-Public Works Director presented. We are still waiting to hear from the State on the application of water shares. There is no indication of a time frame of when this adjudication will be completed. There are apparently some budgeting issues with the State Engineers office, and with the pending Coronavirus pandemic, employees potentially being laid off, Dr. Minton feels all non-essential State resources and funds will be prioritized to aid the community.

Chris Storbeck-Community Water Committee Chair announced after meeting with the Forest Service, our application to drill has been approved. There was an application fee that was required to be paid for staff resources by the Forest Service. There are some design and requirements for mitigation and other restrictions they outlined in a letter of approval. This approval is not subject for review. Dr. Minton thanked all who were involved in making this possible.

#5 Water/Wastewater Report
Aubree Durrant-Public Works presented. A handout named Monthly Water Usage and February Water and Wastewater and SNOTEL was distributed. Aubree reported water use is down. A water audit was done, there is 4% of unaccounted water down from 64% from this time last year. Water usage is down by millions of gallons. Aubree reported a frozen water line on Conifer Lane last month, this may be where the 4% of unaccounted water may be coming from.

Stewart Springs will be re-evaluated this Spring. Due to avalanche danger and higher runoff flow, Fall is the best time to evaluate the output of the Spring. The plan is to clean out the lateral pipe this Spring, but the best evaluation can be done in Fall. Last year, the Spring was putting out a gallon per minute, this year it has been as high as 60 gallons per minute. This could be due to the Stewart Spring improvements done in 2019 and a better snowpack. Brickerhaven and North Fork’s water sources were discussed.

Wastewater information: A hydrochloric acid wash to battle FOG was done in February. The plant was at 108 BOD plant capacity is 66.7 (double capacity) therefore both basins are running. Testing of the basin membranes were discussed and the effect of the acid washes on the membranes. Dr. Minton asked what materials are clogging the membranes. Aubree stated they believe it’s fat and grease, Sundance Resort is closed, and the levels have gone down. Money needs to be set aside for sewer repairs. The District Clerk stated she has created an account; an amount needs to be transferred into this Capital Replacement Fund.

Action Items
Approval of February 13, 2020 Board Meeting Minutes
– Stewart Olsen moved to approve the February 13, 2020 meeting minutes, Thomas Merrill seconded the motion, all voted aye. Motion passed.

Award Contract to Construct Sewer Equalization Basin
No action required, per Ryan Taylor-TO Engineer and Duaine Dorton-Board, “Sundance is paying for this”.

Water Moratorium Recommendation
Stephen Miche-Public Works presented. Stephen stated we are still awaiting the State’s approval on the application of ownership of 155-acre feet to North Fork Special Service District (the District). Stephen stated he feels confident that we have adequate “wet water”, but as we are waiting for approval on the “paper water” as it stands, we only have approval of ownership from the State through the Provo Canyon Adjudication of 176-acre feet. With current water usage, we are using 96% of our paper water rights. The concern is allowing people to connect without the State approval on the paper water (do we have the legal right to use it?) A couple suggestions have been made such as going out and buying new water rights to meet the current obligation or waiting for the State’s approval on the outstanding water right applications. Stephen stated his recommendation would be to keep the District’s Water Moratorium Resolution 2019-01 in place until the Provo Canyon State Adjudication process is completed. The Adjudication was unforeseen by the District when the Water Moratorium was put in place. There is no timeline indication from the State as to when this Adjudication or a judgment will be finalized. Although Stephen and legal counsel Lee Kapaloski feel confident the proper evidence has been submitted properly with the State, a judgment needs to be granted to be 100% sure all shares are recognized by the State. Lee Kapaloski stated we should not commit to water that we do not have approved. Lee suggested going back through some of the “simpler” rights (simpler paper records) and having them re-filled separately instead in a lump sum with other more complicated rights in order to accelerate the process. Concerns of losing rights by pushing the process were expressed as well as cost of re-filing. A resident suggested the Board consider allowing a few homes a month to be allowed on the system. Joel (general contractor for Ben Rucker-property owner) stated he was here tonight to bring the plans before the Board for approval of a will serve letter. He stated he didn’t have approvals from the HOA at this time as the HOA stated District approval was required first. Separation of HOA and District were discussed. Steward Olsen-Vice Chair explained that since the Water Moratorium, the State Adjudication process occurred which has tied up our water rights. The Adjudication is governed by the State budget and judicial process. It was asked if the Board were to have some water shares approved, how much would need to be approved before the Board considered allowing new hook ups to the existing water system. Stewart Olsen explained that we are maxed out on our water commitments. The question of how to be approved for a will serve letter arose, all were directed to go to NFSSD.org and fill out an Action Item Request Form. The District will work on having more straightforward rights filed separately in hopes of extraditing the process of approval of some rights from the State in the Adjudication process.

Bert Thomas-Board Member asked if someone were to deed a paper right to the District, would they be allowed on the system? Dr. Minton stated when the Water Moratorium was put in place, we had the issue of limited access to physical “wet” water. With the Public Works efforts to repair lines, find unaccounted water and clear up the Spring, we have enough physical water. Now with the State Adjudication, we are faced with not having enough paper water rights to give us the right to use the water. Duaine Dorton proposed that owners of water rights that have been approved through the 2020 Water Adjudication be an exception to Water Moratorium.

Stewart Olsen-Vice Chair made recommendation for a motion to allow people to come forward with contractual or new water rights that are acceptable to the District so they may apply to be considered for a connection into the water system was made. This would be based on the Districts evaluation of its physical water supply beyond it’s existing commitments to allow for possible new connections. Specific water source requirements and rights may be considered. An addendum to the 2019-1 Water Moratorium will be created by legal counsel, Lee Kapaloski. The Water Moratorium remains in place until enough water deeds or rights are obtained to meet the District’s current obligations. Keith Payne seconded the motion, all aye. Motion passed.

Garbage Fee Evaluation
– Stephen Miche-Public Works presented. The dumping fee at North Point Transfer station increased by 62%. Current monthly garbage rate is $7.63 and needs to be increased to pay for maintenance and dumping fees. Frequency of haul and dump have also increased. Gary Liddiard suggested a lock on the door may decrease illegal use. Stephen suggested buying a new compactor and using the residual of the new fee to replenish the capital fund. The proper notices will be made to have a public fee increase hearing in April.

Request for Committee to Develop District Policies
– Matter tabled

Pilot hole for well
– Stephen Miche-Public Works presented. We have look at getting additional water sources for more supply and drought resistance for current and future water use. While we are having a good water year, this is a good time to drill a pilot well. This will require a new bond as we do not have enough in the current bond for a production well and pilot well. Matter tabled until new bids can be produced by Ryan Taylor-TO Engineers and more information obtained regarding size and depth of the well.

Mandan HOA Delinquency
– Emily Johnson-District Clerk presented. Discussion of delinquency of HOA’s combined payments were discussed. Dr. Minton expressed impartiality and equality among all customers and the HOA’s need to “police” themselves. Following policy, a delinquency notice was sent, and service interruption notice was sent to the Mandan HOA president and will be activated April 15, 2020 if payment is not received. Dr. Minton asked that a meeting be set up with himself and the HOA senior representative. No motion made.

Closed Executive Session

At 9:19 p.m. Keith Payne motioned to enter Closed Executive Session. Thomas Merrill seconded; all public was asked to exit the meeting until the open meeting resumed. All executive session matters have been tabled until further notice. Keith Payne motioned to re-adjourn into open session 9:22 p.m. Bert Thomas seconded. All aye.

Dr. Minton suggested a phone conference next month. Duaine Dorton asked that all materials be presented to the Board prior to the meeting and comments time limited. Lee Kapaloski stated new meeting guidelines from the State are expected regarding public meetings due to the pandemic. Stewart Olsen stated we will abide by the States recommendations.

Motioned to adjourn the February 2020 Monthly Meeting of the Board of Officers, Duaine Dorton seconded, all voted aye. Meeting was adjourned at 9:26 p.m.

• Minutes noted and recorded by Emily Johnson-District Clerk.