DRAFT these minutes have not been approved by the Board of Officers

North Fork Special Service District

Hearings and Monthly Board Meeting

November 12, 2020 @ 6:30 p.m.

This meeting was held remotely through the ZOOM application

Any members of the public that wanted to join the public portion of the meeting were asked 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 in 2 separate public posts.

 

Executive Session

 

 

Board members present:

Dr. Stephen Minton- Chairman, Stewart Olsen-Vice Chairman, Scott Hart, Duaine Dorton, Thomas Merrill, Gary Liddiard

Bert Thomas arrived at 7:05 p.m.

 

Staff members present:

Stephen Miche-Public Works Director, David Marsella-Fire Chief, Emily Johnson-District Clerk, Ryan Taylor-TO Engineering, Aubree Durrant-Public Works, Lee Kapaloski-Legal Counsel, Joseph Martin-Controller

 

At 6:32 p.m. Dr. Stephen Minton-Chairman brought the meeting to order.  At 6:32 p.m. Stewart Olsen-Vice Chairman motioned to enter closed session to discuss personnel matters.  Scott Hart seconded, all aye.  Closed executive session commenced.

 

At 7:01 p.m. Stewart Olsen motioned to reconvene in open session, Gary Liddiard seconded.  All aye, the open meeting for the November 2020 monthly meeting of the Board of Officers began at 7:02 p.m. and the public was admitted to the Zoom electronic meeting.

 

Monthly Meeting of the Board of Officers

 Board members present:

Dr. Stephen Minton- Chairman, Stewart Olsen-Vice Chair, Scott Hart, Duaine Dorton, Thomas Merrill, Bert Thomas, Gary Liddiard

Staff members present:

Stephen Miche-Public Works Director, David Marsella-Fire Chief, Emily Johnson-District Clerk, Ryan Taylor-TO Engineering, Aubree Durrant-Public Works, Lee Kapaloski-Legal Counsel, Joseph Martin-Controller

(Aubree Durrant left the meeting at 8:45 p.m.)

 Public present:

Chris Storbeck, Chad Linebaugh, Bryan Kindred

 Proceedings:

At 7:02 p.m. The Monthly Meeting of the Board of Officers commenced.

Public Comments

– None

#2 District Clerk Information

– Emily Johnson-District Clerk presented.  Emily stated the bank accounts have been reconciled for October.  Check register and detailed credit card charge reports were presented to the Board prior to this meeting for review.

#3 Financial Information

– Joe Martin-Controller presented.  The October 2020 financial reports were sent to the Board for review prior to this meeting.  Screen shots were displayed of the October 2020 financial reports and income statements.  Assets, Liabilities, Revenue and Expenses were shown in pie graph form.  Budget to actuals in the document reflected the “old 2020” budget numbers, revised budget is to be voted on tonight.

 #4 Water/Wastewater Report

– Aubree Durrant-Public Works presented.  Graphs and reports were distributed to the Board prior to the meeting.  Aubree reported that overall water usage in the District compared to this time last year was about the same but residential use was higher and commercial users were slightly lower than normal.  She speculates this is due to COVID-19.  There is a small percentage of unaccounted water in the upper pressure zone due to leaks.  They are going through each meter to rule out the source of unaccounted water and fixing any issues along the way.

Wastewater reports Sundance Resort’s new grease trap has been installed and is operational.  There were a few operational break downs at the wastewater station including pumps, PLC, Relays, MCC, valves, etc. but since they are funning on one train due to the grease trap being in place, they were able to make those repairs without shutting down the wastewater station.  These replacements caused some unexpected costs therefor labs have not been completed.

Duaine Dorton inquired about the cost-of-service analysis.  Stephen Miche stated he spoke with Zions bank.  Zions wants a breakdown of the water tiered rates an annual year total.  Stephen is working on getting that information to Zions.  Stephen explained that Zions is using a similar calculation system as the District, so he feels confident Zions conclusion will be in line with the District’s analysis.  Stephen stated he is working with the District’s controller to compile these numbers in a spreadsheet.  The process of the cost-of-service analysis was discussed in detail vs. the Master Plan.  Chris Storbeck feels that data will be returned from Zions bank shortly after the data Stephen and the District’s controller submit it, but the full Master Plan will need to be presented by the engineers.  Ryan Taylor-Engineer explained that he is “one meeting away” with Stephen Miche to wrap up their recommendations.  With the installation of the grease trap at Sundance Resort and the Range Wildfire, they have been faced with some delays.  He anticipates completion in the next few weeks.

Stephen stated he contacted the State of Utah regarding the Provo Canyon water adjudication.  He is meeting with the adjudication specialists who will be reviewing the District’s water rights.  This is high priority to the District, until we know where we stand with water rights, we cannot make any decisions on reduction, droughts, and acquisition of water rights in the future.  Stephen has been coordinating with legal council Lee Kapaloski to ensure proof for the 155-acre feet rights that are being reviewed.  Due to COVID-19 there have been delays on behalf of the State.

 #5 Water Committee Board Report

– Chris Storbeck-Chairman of the North Fork Community Water Committee presented during the water/wastewater portion of the meeting and explained the report that was emailed to the Board prior to this meeting.  He explained in detail the report including the rate data for the District.  Chris explained that the committee looked at several scenarios regarding water tier rates, the revenue vs. usage was the deciding factor in the committee’s recommendations.

 Other information:

The NFSSD Board of Officers, staff and community water committee members will be doing a field tour tomorrow to review the history of the District’s water sources including old well and spring sites.

Action Items

#1 Approval of October 2020 Board Meeting Minutes

Duaine Dorton moved to accept the October 2020 Board Meeting Minutes as written, Scott Hart seconded.  All aye, no one opposed.  Motioned passed.

#2 Water Rights

The Berge’s ask that this matter be tabled at this time.  No discussion or action taken.

 #3 Water Rates

Stephen Miche stated the District has a need to have a public hearing to vote on the proposal of the water committee’s recommendations of the rate schedule due to revenue changes, developing future capital improvement funds and water consumption to generated revenue ratios.

Duaine Dorton expressed the need to have the cost-of-service analysis completed.  Although Stephen feels that Zion Bank’s analysis will be similar in their prospective outcomes, he agrees that it is prudent to factor in the expert’s opinion.

Duaine Dorton motioned to table the matter of Water Rate Hearing and the Berge’s Water Rights, Stewart Olsen seconded the motions.  All aye, no opposed.  Matters are tabled.

 #4 Water Policy

Stephen Miche presented.  A document was sent to the Board prior to this meeting titled draft “Resolution #2020-3” outlining a water policy proposal.  Stephen explained his intent of this proposal is to avoid turning board meetings into work sessions.  The District’s water policies need to be reviewed and updated including infrastructure, new water connections, water shortage emergencies including droughts.  Stephen is asking for the Board’s authorization to allow the Community Water Committee to review the District’s water policies in January 2021 with the projected completion date of May 2021 so recommendations can be brought before the Board.  Lee Kapaloski referenced the code that includes the priority of domestic use over other usage and stated any policies the District adopts needs to include that priority.

Duaine Dorton asked if a resolution is necessary as it may be in his power as the public works director or may be directed by the board chairman to authorize the committee to review policies and present recommendations to the Board to adopt.  Stephen discussed that the District is in year 1 of a 4-year drought per the Forest Service and that having the committee assist in this due to the District’s limited staff and resources.  Lee reiterated that the policies must be written to prioritize domestic use should there be restrictions on water in the District.  Chris Storbeck explained that the water committee discussed the urgency of the policies being completed in a timely manner.  Stewart Olsen described that if a water restriction were to take place, the District would have to surrender water to share-holders with older rights (Stewart references the Morris decree).  The District needs to understand and set place policies on how to handle an emergency.

Discussions of a resolution not being necessary and the Board authorizing Stephen to direct the community water committee in reviewing, updating, and making policies to present to the Board.  Bert Thomas expressed that he thinks it is healthy (transparent) for the District that Stephen brings these matters before the public to be decided.

Stephen Miche withdrew Resolution #2020-3.  Scott Hart declared that the Board is empowered under Title 17d to create policies.  Stephen Miche expressed that he brought this matter before the Board because he did not want to overstep his authority as Public Works Director while he was also a working member of the Community Water Committee.

#5 Final Approval of 2020 Revised Budget

A budget hearing was executed on October 8, 2020.  During the October 2020 board meeting the revised budget was approved.  The public was given a month to review the information, tonight the Board is voting to finalize the 2020 Budget.  Joe Martin-Controller shared a document titled 2020 Amended and 2021 Tentative Budget and explained this is the document he will be submitting to the State of Utah for transparency reporting.  A line-by-line-item sheet was submitted to the Board for review prior to this meeting.  Joe shared this document and explained how the report is comprised.

Duaine Dorton moved to approve and adopt the 2020 budget.  Scott Hart seconded.  All aye, no opposed.  Motion passed.

#6 Final Approval of Tentative 2021 Budget

A budget hearing was executed on October 8, 2020.  During the October 2020 board meeting the tentative 2021 budget was approved.  The public was given a month to review the information, tonight the Board is voting to finalize the 2021 budget.  Joe Martin-Controller shared a document titled 2020 Amended and 2021 Tentative Budget and explained this is the document he will be submitting to the State of Utah for transparency reporting.  A line-by-line-item sheet was submitted to the Board for review prior to this meeting.  Joe shared this document and explained how the report is comprised.

Joe Martin explained that since the budget hearing, he met with David Marsella.  He explained that due to some changes since the hearing some numbers that were originally reported in fire budgeting were more appropriately placed in the wildland budget.  David stated that the medics hourly rates were reviewed, he had a wage study conducted that showed the average medic in Utah County makes approximately $18.00 per hour.  North Fork paramedics are paid $15.00 per hour making them the lowest paid medics in Utah County.  He is budgeting to bring the medics to $17.00 per hour which would be closer to average rates for Utah County.  North Fork represents a small group, employees must drive here from a distance, they are good employees that want to be here.  He things this pay increase will keep our part time medics here.  This is approximately a $40,000 increase for paramedics only salaries in the fire budget for 2021.  There will be no wage increase for wildland employees.  Intermediate/advanced paramedics will be raised $1.00 bringing them closer to the County average rates as well.  The biggest deficit is with paramedics, they are paid $3.00 below the average Utah County rates and will be raised $2.00 per hour.  The total salary increase would be approximately $45,000 increase for the 2021 fire budget.  These numbers are based on full coverage, fully maxed, every shift filled to the highest level.  This increase was based on the Utah County property assessments that will be generating more revenue in 2021.  Discussions of the District’s financial statements were reviewed including expenditures, State compliance and authorizations to spend.  Duaine Dorton asked for a breakdown on how these calculations were comprised to better understand where the expenses are being used.  Joe Martin explained that numbers can be lowered later without a hearing, but not increased.  To be in compliance with the State laws, we cannot overspend therefore the calculations in the authorization to spend were figured at maximum in order not to be penalized or incur more costs to advertise and conduct another budget hearing.  The fire capital outlay line item was discussed in the non-operating Revenues (Expenses).

No other staff, Board or community members came forward with questions, comments, suggestions, or objections regarding the tentative 2021 budget since the hearing.

The District Clerk explained that over the past year there have been many projects and unexpected expenses (Range Fire included).  The trend of spending was included in these projected expenses for 2021 but over the 2021 year we can consider lowering budget numbers based on actuals.  She explained with the new chart of accounts, we will be able to detail more accurately spending and allocate the correlating departments expenses against their revenues.

Duaine motioned to approve the 2021-year budget, Stewart Olsen seconded.  All aye, no opposed.  2021-year budget adopted.

Motion to close the November 2020 Monthly Meeting of the Board was made by Duaine Dorton, Scott Hart seconded, all aye no opposed.  Meeting closed at 9:31 p.m.

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