Meeting goals – Board Agenda:
Approval of a Contract for Pipe Preorder for Salt Lake Aqueduct Replacement – Cottonwoods Conduits Project (Tab 1)
Consider Approval of the Financial Advisor Services Agreement (Tab 2)
Consider acceptance of financial reports (Tab 3)
Update on water supply and demand. (Tab 5)
Attendance:
Present:
Tom Godfrey - Chair
John Kirkham - Vice Chair
Patricia Comarell - Secretary
John Mabey Jr.
Donald Milne
Cindy Cromer
Absent:
Joan Degiorgio
Approval of Pipe Preorder:
The approval was to order the first section of pipe for the Salt Lake Aqueduct Replacement – Cottonwoods Conduits (SLAR - CC) Project costing $419,659. Construction is expected to begin in January 2024, with the project allowing Salt Lake City to begin replacing the Big Cottonwood Water Treatment Plant. The new pipes will have a Seismic Performance Level (SPL) of 3. The aqueduct will run parallel to Danish Road. The motion passed unanimously. The money will be going to Thompson Pipe Group for the first section of pipe for the SLAR-CC project.
Aquifer Recharge Project Update:
The aquifer recharge project has been delayed because some material had fallen into the well. They want to pilot-test 2 basins in June next year. The well could be tested in September or October of 2024. Tom Godfrey - Chair asked if the neighbors were being kept up to date with the information on the aquifer recharge project. They began a “chemical development technique” this week for this project.
Consider Approval of the Financial Advisor Services Agreement:
The motion passed unanimously, for a five-year contract with Zion Personal Finance
For financial services, the district only received two responses. It was indicated that all proposals are 80 pages long. John Mabey Jr. on the board of trustees explained that he had known both respondents for over 20 years, so they were familiar with the services when they made their decision. The board ultimately went with Zions Public Finance, which has been involved with the water district for the last seven years.
A representative from Zions Public Finance, Jonathan Ward, explained the potential strategies for repaying debt-tied funding needs that arise with the district. He presented many different forms of repayment. The repayment options ranged in having a higher annual payment, resulting in the loan being paid off sooner. On the other side of the diagram Ward presented, the district could only make payments on the interest for the first 20 years, and then begin paying off the principal of the loan. The drawback of this method is that it would result in a higher amount paid overall. Ward explained that some plans would be potentially tripling debts. The model that was presented did make estimates to keep up with inflation. After some brief discussions between board members, the board opted to discuss with the financial committee regarding which strategy they would pursue with the repayment of the loan. The tentative deadline to complete this task is January 16th.
Additionally, the district would seek funding from the Water Infrastructure Funding and Innovation Act (WIFIA). Ward wanted to limit the amount of times the district would have to apply for funding through WIFIA explaining that “The concept is to link all of these projects into the finished water program”. This is to avoid “going back to the water trough multiple times.”
Consider acceptance of financial reports
Financial reports for September and August passed unanimously. There was no discussion involving these reports, it took approximately one minute for these reports to be motioned and passed.
Water supply and demand update
This compared the amount of water/snow levels based on previous years. This year, it is looking on average with previous years. It was acknowledged that the previous year was an especially high water year. Water is expected to run, not get soaked into the ground. Demand for water use is also down. When the Murray City Penstock is not running, there is an 8 cubic foot per second loss into the creek bed.
Additional Notes
Annalee Munsey, the General Manager of the water district, explained that there may be a property tax increase or a water rate increase. Member cities must be in consensus on which tax they would like to implement. Tom Godfrey (Chair) said, “We are the only district with two city councils.” This means that they must discuss with both member cities. The water rate percentage will be a 36-39% increase if there isn’t a property tax increase.
Godfrey made sure to have board members pass on congratulations to several district employees on their promotions.
The meeting was unanimously voted to close to discuss pending litigation. The closed session would also include a discussion of “the character, professional competence, or physical or mental health of an individual”.
What Passed
Contract for pipe preorder for SLAR-CC project (BP004)
Financial Advisor Services agreement (Tab 2 – BP019)
Acceptance of financial reports (Tab 3 – BP049)
Approval of Board Meeting minutes dated October 16, 2023 (Tab 4 – BP064)
Closing the session
Water Documenters is a collaboration between The Salt Lake Tribune and City Bureau and funded through grants from the Great Salt Lake Collaborative and the Rita Allen Foundation. College student journalists from all over Utah are hired to attend and take notes at public water meetings in Utah. These notes are then published for anyone to read or use. The project is aimed at providing better public access to meetings where major decisions are made about a limited Utah resource. For more meeting notes, click here. For more information, click here.
