05.20.2015 SSD Minutes
Minutes of the regular meeting of the Big Plains Water and Sewer Special Service District, Washington County, Utah that was held on the 20th day of May, 2015 at the Smithsonian Fire Department Building, 1777 N. Meadowlark Dr., Apple Valley, Utah. 1. The meeting was called to order at 6:01 pm. 2. The Pledge of Allegiance was led by Mayor Moser. 3. Roll Call: Jack Davis, Neil Duncan, Mayor Moser, Kevin Sair and Harold Merritt were present. Rod Mills of Ensign Engineering was present. Legal Counsel, Gary Kuhlmann was present. Nathan Bronemann was present taking minutes. 4. Declarations of conflict of interests None stated. 5. Discussion and possible action on water obligations on AV-1361-C – owned by UCCU Gary Kuhlmann said UCCU stood for Utah County Community Credit Union. He said that prior to the purchase of the water assets, an agreement had been entered into between Cedar Point Water Company and UCCU regarding the ownership of the water tank on this parcel. He said the agreement was to provide 60 water connections on that parcel. He said enough water rights to service those 60 connections had been pulled from the water bank. He said they would still be required to pay for the connection fees and impact fees to receive service. He said the District will do what the District is legally obligated to do. Motion made by Mayor Moser to accept the legal obligations as explained by Gary Kuhlmann. Neil Duncan seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merrittyes, Jack Davis-yes, Kevin Sair-yes. The motion passed 5/0. 6. Discussion and possible action on water obligations on AV-1366-D-1 – owned by AV Investors, LLC Gary Kuhlmann said he had been in discussions with Conrad Johansen, the attorney representing AV Investors, LLC. Mr. Kuhlmann said that under the water bank agreement, the rights would be pulled out of the water bank and Cedar Point would be compensated for those water rights. He said AV Investors, LLC is due payment for some of those water rights when they come out of the water bank. He said that those water rights cannot be assigned without the consent of both the water rights owners as well as the District. He said the District needed to decide what process would be used to approve the assignment of water rights. Roger Sanders said Axxess Funding and Rimrock Founders were two entities that were entitled to compensation for water rights per a prior agreement between these parties and Cedar Point Water Company. He said Axxess was told their water rights would have priority over other water rights and should be transferred first. Rod Mills stated that this agreement could be conflicting with the District’s water right priorities. Roger Sanders said 122.6 acre-feet of water was assigned to Rimrock and 10 to Conrad Johansen’s clients. Motion made by Mayor Moser to have Roger Sanders compile a spreadsheet listing water rights assignments and priorities for legal and the District to review in the next meeting. Also, with such review, an application should be created to be used in connection with requests to approve assignments of rights under the water bank agreement. Jack Davis seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes, Kevin Sair-yes. The motion passed 5/0.
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7. Discussion and possible action on water obligations on AV-1365-F Gary Kuhlmann said that with the purchase of the water assets, the District received easements around this property. He said an agreement between Ramon Johnson and Cedar Point Water Company allowed these easements in exchange for the placements of two water meters as well as up to 30,000 gallons of water per month per meter at no cost, as well as two acre-feet of water. He said the property is now owned by new owners and they want the District to honor this agreement. Shawn Ferris, the attorney representing the new owners. He said the owners purchased the property with the understanding that they would receive the benefits of the past agreement. Gary Kuhlmann said he didn’t feel the District would be able to legally provide the water rights. He clarified that the District owned a 30,000 gallon tank as well as a well on that property. Mayor Moser said he didn’t feel that the District board would be willing to give away free water or water rights. Shawn Ferris said the District needed to have the easements to access the tank and well. Kevin Sair left at 6:33 pm. Mayor Moser said the District has not taken advantage of its authority to levy taxes and so they needed to sell water to operate. Gary Kuhlmann clarified that the agreement in question was made with the Cedar Point Water Company. Mayor Moser agreed that Cedar Point Water Company should be held liable for the aspects of the agreement that the District would be unable to honor. Harold Merritt asked if Gary Kuhlmann had any suggestions. Gary Kuhlmann said he would like to spend some time to see if there were any better solutions. Rod Mills said they were dealing with an entity that had received a raw deal. He said the District could extract water rights from the water bank to help compensate the owners. Pat Baker, one of the owners, said they were planning on building two homes on the property. He said he wasn’t planning on using a lot of water. He suggested the District ought to be able to give them some water. He said if the District would not honor the past agreement, they would get rid of the easements. Harold Merritt said the District was trying to work with him. Gary Kuhlmann said that all the easements were sold to the District and they could not be revoked. He said the agreement in question was with Cedar Point Water Company and not the District. Mayor Moser said the District would be willing to waive the water right requirement and provide an additional connection without charge. Motion made by Mayor Moser to provide another connection and to waive the water right requirement. Neil Duncan seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes. The motion passed 4/0.
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8. Report on the Cedar Point well head project – Ensign Engineering Rod Mills said they were still waiting on State approval and it should be soon. 9. Construction and Acquisitions – Harold Merritt Nothing to discuss. 10. Funding – Kevin Sair Nothing to discuss. 11. Operations – Neil Duncan Neil Duncan mentioned that there were some thistles which needed to be taken care of on the District property. Dale Harris said he would take care of them. 12. Resource Management – Mayor Moser Mayor Moser asked Rod Mills who to call to help speed up the approval process on the well rehabilitation funding. 13. Development – Jack Davis Nothing to report. 14. Review of Policies and Procedures Rod Mills said the State procurement code had been changed. He said that as the District has adopted the Town’s purchasing policy, he and legal would be reviewing that policy and offering suggestions for revising that policy to bring it into alignment with State law. Mayor Moser said the attorney had drafted and agreement between the Town and District so the District employees would be employed by the Town and contracted to the District. 15. Sewer Nothing to discuss.
16. Consent Calendar - Income and Expenses Motion made by Mayor Moser to accept the consent calendar as presented. Neil Duncan seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes. The motion passed 4/0. 17. Consider approval of minutes: a. May 6, 2015 Regular Meeting Minutes Motion made by Mayor Moser to approve the May 6, 2015 regular meeting minutes. Jack Davis seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes. The motion passed 4/0. 18. Request for a closed session
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None requested. 19. Adjournment Motion made by Jack Davis to adjourn the meeting. Mayor Moser seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes. The motion passed 4/0. Meeting adjourned at approximately 7:03 PM.
Date approved: _____________
ATTEST BY: _________________________ Nathan Bronemann
___________________________ Chairman Harold Merritt
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7. Discussion and possible action on water obligations on AV-1365-F Gary Kuhlmann said that with the purchase of the water assets, the District received easements around this property. He said an agreement between Ramon Johnson and Cedar Point Water Company allowed these easements in exchange for the placements of two water meters as well as up to 30,000 gallons of water per month per meter at no cost, as well as two acre-feet of water. He said the property is now owned by new owners and they want the District to honor this agreement. Shawn Ferris, the attorney representing the new owners. He said the owners purchased the property with the understanding that they would receive the benefits of the past agreement. Gary Kuhlmann said he didn’t feel the District would be able to legally provide the water rights. He clarified that the District owned a 30,000 gallon tank as well as a well on that property. Mayor Moser said he didn’t feel that the District board would be willing to give away free water or water rights. Shawn Ferris said the District needed to have the easements to access the tank and well. Kevin Sair left at 6:33 pm. Mayor Moser said the District has not taken advantage of its authority to levy taxes and so they needed to sell water to operate. Gary Kuhlmann clarified that the agreement in question was made with the Cedar Point Water Company. Mayor Moser agreed that Cedar Point Water Company should be held liable for the aspects of the agreement that the District would be unable to honor. Harold Merritt asked if Gary Kuhlmann had any suggestions. Gary Kuhlmann said he would like to spend some time to see if there were any better solutions. Rod Mills said they were dealing with an entity that had received a raw deal. He said the District could extract water rights from the water bank to help compensate the owners. Pat Baker, one of the owners, said they were planning on building two homes on the property. He said he wasn’t planning on using a lot of water. He suggested the District ought to be able to give them some water. He said if the District would not honor the past agreement, they would get rid of the easements. Harold Merritt said the District was trying to work with him. Gary Kuhlmann said that all the easements were sold to the District and they could not be revoked. He said the agreement in question was with Cedar Point Water Company and not the District. Mayor Moser said the District would be willing to waive the water right requirement and provide an additional connection without charge. Motion made by Mayor Moser to provide another connection and to waive the water right requirement. Neil Duncan seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes. The motion passed 4/0.
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8. Report on the Cedar Point well head project – Ensign Engineering Rod Mills said they were still waiting on State approval and it should be soon. 9. Construction and Acquisitions – Harold Merritt Nothing to discuss. 10. Funding – Kevin Sair Nothing to discuss. 11. Operations – Neil Duncan Neil Duncan mentioned that there were some thistles which needed to be taken care of on the District property. Dale Harris said he would take care of them. 12. Resource Management – Mayor Moser Mayor Moser asked Rod Mills who to call to help speed up the approval process on the well rehabilitation funding. 13. Development – Jack Davis Nothing to report. 14. Review of Policies and Procedures Rod Mills said the State procurement code had been changed. He said that as the District has adopted the Town’s purchasing policy, he and legal would be reviewing that policy and offering suggestions for revising that policy to bring it into alignment with State law. Mayor Moser said the attorney had drafted and agreement between the Town and District so the District employees would be employed by the Town and contracted to the District. 15. Sewer Nothing to discuss.
16. Consent Calendar - Income and Expenses Motion made by Mayor Moser to accept the consent calendar as presented. Neil Duncan seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes. The motion passed 4/0. 17. Consider approval of minutes: a. May 6, 2015 Regular Meeting Minutes Motion made by Mayor Moser to approve the May 6, 2015 regular meeting minutes. Jack Davis seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes. The motion passed 4/0. 18. Request for a closed session
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None requested. 19. Adjournment Motion made by Jack Davis to adjourn the meeting. Mayor Moser seconded the motion. Vote: Neil Duncan-yes, Mayor Moser-yes, Harold Merritt-yes, Jack Davis-yes. The motion passed 4/0. Meeting adjourned at approximately 7:03 PM.
Date approved: _____________
ATTEST BY: _________________________ Nathan Bronemann
___________________________ Chairman Harold Merritt
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