January 14, 2020 Agenda Department of Drinking Water Board Roger Fridal, Chair Environmental Quality Kristi Bell, Vice-Chair Scott Morrison L

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January 14, 2020 Agenda Department of Drinking Water Board Roger Fridal, Chair Environmental Quality Kristi Bell, Vice-Chair Scott Morrison L Drinking Water Board Packet January 14, 2020 Agenda Department of Drinking Water Board Roger Fridal, Chair Environmental Quality Kristi Bell, Vice-Chair Scott Morrison L. Scott Baird Jeff Coombs Executive Director David O. Pitcher State of Utah Eric Franson, P.E. Barbara Gardner GARY R. HERBERT DIVISION OF DRINKING WATER Blake Tullis, Ph.D. Governor Marie E. Owens, P.E. L. Scott Baird Director Marie E. Owens, P.E. SPENCER J. COX Executive Secretary Lieutenant Governor DRINKING WATER BOARD MEETING January 14, 2020 1:00 PM Department of Environmental Quality Multi Agency State Office Building DEQ Board Room 195 N 1950 W Salt Lake City, Utah 84116 Marie Owens’ Cell Phone #: (801) 505-1973 1. Call to Order 2. Roll Call – Marie Owens 3. Public Comment Period 4. Approval of the November 5, 2019 Minutes 5. Financial Assistance Committee Report A. Status Report – Michael Grange B. Project Priority List – Michael Grange C. SRF Applications i) STATE - No State Projects ii) FEDERAL a) Hyde Park City - Heather Pattee iii) DEAUTHORIZATIONS a) Bluffdale City - Heather Pattee b) Kanab City - Heather Pattee D. Potential Impact of Interest Rates on the SRF Program - Michael Grange 6. Title 19 Changes - Bret Randall 195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144830 • Salt Lake City, UT 84114-4830 Telephone (801) 536-4200 • Fax (801) 536-4211 • T.D.D. (801) 536-4284 www.deq.utah.gov Printed on 100% recycled paper Page 2 7. Water Use Data - Nathan Lunstad 8. Rural Water Association Report – Dale Pierson 9. Directors Report – Marie Owens A. Enforcement Report B. Upcoming Bills for 2020 Legislative Session C. Other 10. Open Board Discussion -- Roger Fridal 11. Other 12. Next Board Meeting Date: February 27, 2020 Time: 2:00 PM Place: Dixie Convention Center 1835 S Convention Center Dr St. George, Utah 84790 13. Adjourn Agenda Item 4 Department of Drinking Water Board Roger Fridal, Chair Environmental Quality Kristi Bell, Vice-Chair Scott Morrison L. Scott Baird Jeff Coombs Executive Director David O. Pitcher State of Utah Eric Franson, P.E. Barbara Gardner GARY R. HERBERT DIVISION OF DRINKING WATER Blake Tullis, Ph.D. Governor Marie E. Owens, P.E. L. Scott Baird Director Marie E. Owens, P.E. SPENCER J. COX Executive Secretary Lieutenant Governor DRINKING WATER BOARD MEETING November 5, 2019 12:30 PM Department of Environmental Quality Multi Agency State Office Building DEQ Board Room 195 N 1950 W Salt Lake City, Utah 84116 DRAFT ❖ A Board member ethics training meeting was conducted at 12:30 PM, prior to the 1:30 PM Board Meeting. Neither discussion of any agenda item nor any Board actions were conducted during this time. 1. Call to Order Roger Fridal, Acting Chairman, called the training meeting to order at 12:35 PM. 2. Roll Call Board Members present: Roger Fridal, Kristi Bell, Jeff Coombs, Scott Morrison, Barbara Gardner, David Pitcher, Eric Franson, Scott Baird. Blake Tullis joined the training via teleconference, but lost connection mid-way through. Division staff present: Marie Owens, Rachael Cassady, Michael Grange, Heather Pattee, Allyson Spevak, Ryan Dearing. Craig Anderson with the Attorney General’s Office conducted the training. ❖ The Board Meeting followed the training meeting at 1:30 PM. 1. Call to Order Roger Fridal, Acting Chairman, called the Board meeting to order at 1:32 PM. 195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144830 • Salt Lake City, UT 84114-4830 Telephone (801) 536-4200 • Fax (801) 536-4211 • T.D.D. (801) 536-4284 www.deq.utah.gov Printed on 100% recycled paper Page 2 2. Roll Call Board Members present: Roger Fridal, Kristi Bell, Jeff Coombs, Scott Morrison, Barbara Gardner, David Pitcher, Scott Baird, Blake Tullis, Eric Franson. Division Staff present: Marie Owens, Rachael Cassady, Michael Grange, Heather Pattee, Allyson Spevak, Ryan Dearing. 3. Drinking Water Board Elections – Marie Owens A. Board Chair & Co-Chair • Eric Franson moved to elect Roger Fridal as Chair. The motion was carried unanimously by the Board. Roger accepted the nomination. • Roger Fridal moved to elect Kristi Bell as Co-Chair. The motion was carried unanimously by the Board. Kristi accepted the nomination. B. Financial Assistance Committee Roger Fridal, Scott Morrison, Jeff Coombs and Eric Franson volunteered to be on the Financial Assistance Committee. 4. 2020 Drinking Water Board Meeting Schedule Marie asked the Board if they wanted to hold a meeting at the RWAU annual conference in St George on February 27, 2020. Marie also asked if the Board wanted to hold a meeting at the fall RWAU conference on August 26th 2020 in Layton. • Eric Franson moved to move the February meeting to the RWAU conference in St. George on February 27, 2020. Kristi Bell seconded. The motion was carried unanimously by the Board. • Eric Franson moved to move the August meeting to the RWAU conference in Layton on August 26, 2020. Jeff Coombs seconded. The motion was carried unanimously by the Board. • Eric Franson moved to accept the adjusted schedule. Kristi Bell seconded. The motion was carried unanimously by the Board. 5. Approval of the August 27, 2019 Minutes ● David Pitcher moved to approve the August 27, 2019 minutes. Scott Morrison seconded. The motion was carried by the Board. Eric Franson abstained from voting. At this time, Roger asked if anyone had a conflict of interest regarding any item on the agenda. David Pitcher has a conflict with the Central Utah Water Conservancy District (CUWCD) request (Item 6Cii(a)) as he is employed by Central Utah Water Conservancy District. Page 3 • Eric Franson moved that David Pitcher not be allowed to participate in the discussion or voting for the CUWCD item. Scott Morrison seconded. The motion was carried unanimously by the Board. Roger has a conflict with the Bear River Water Conservancy District request (Item 6(C)(i)(a)) as he is a chairman of the BRWCD. • Eric Franson moved that Roger Fridal not be allowed to participate in the discussion or voting for the BRWCD item. Kristi Bell seconded. The motion was carried unanimously by the Board. 6. Financial Assistance Committee Report A. Status Report – Michael Grange Michael Grange, Technical Assistance Section Manager with the Division of Drinking Water (DDW, the Division) reported that as of September 30, 2019 there is a balance of roughly $5.7 million in the State SRF fund. Over the course of the next year, the Division is expecting an additional $4.6 million to come into the fund, for a total of approximately $10.4 million for project allocation. The Board was provided with a list of water systems that DDW staff is currently working with to close State SRF loans, such as Mountain Regional’s project. Eric inquired about Genola’s State project. Michael explained that Genola and Virgin Town have moved from Federal to State projects. Michael then reported that as of September 30, 2019 there is a balance of $233,000 in the Federal SRF fund. Over the course of the next 12 months, the Division is expecting approximately $20.9 million to come into the fund for a total of $21.2 million by September 30, 2020. While not on today’s agenda, DDW staff recently received information that the Bluffdale application and the Kanab City application are being withdrawn, which adds $13.2 million to the $233,000 Federal SRF fund balance. The Board was provided with a list of water systems that DDW staff is currently working with to close Federal SRF loans. B. Project Priority List Michael reported that one new project is recommended to be added to the Project Priority List: Central Utah Water Conservancy District with 22.5 points. Theirs is a programmatic financing application to fund multiple capital facilities projects. The Financial Assistance Committee recommends the Board approve the updated Project Priority List as presented, with the addition of this one project. Page 4 • Kristi Bell moved to approve the updated Project Priority List. Jeff Coombs seconded. The motion was carried unanimously by the Board. C. SRF Applications i. STATE: a) Bear River WCD – Heather Pattee Representing Bear River WCD is general manager Carl Mackley. Heather Pattee informed the board that Bear River Water Conservancy District (BRWCD) is requesting financial assistance in the amount of $100,000. BRWCD previously submitted two applications for two separate projects that came before the Board at the August 27, 2019 meeting. Now they’re submitting a single application for the project presented today. The project consists of a test well in the Collinston area of the district and the total project cost is $237,500, with the district contributing $137,500. The local MAGI for the Collinston area is 98% of the State MAGI. However, the after-project water bill would be $76.96 which is 2.06% of their local MAGI, so they do qualify for additional subsidy. Included in the Board packet is a table with the base rate as well a 0% interest loan and 50/50 split of loan versus grant. As of this morning they have -9 IPS point which is a 10-point credit for a current emergency response program and one point for an RTCR monitoring violation. The Financial Assistance Committee recommendation is that the Drinking Water Board authorize a loan of $50,000 and a grant of $50,000 at 0% interest for 20 years. Carl informed the Board that in 2015 they installed 7 miles of pipeline in the Collinston area, two 500,000-gallon water storage tanks, two booster stations, and a metering blending station. BRWCD received SRF funding for this project. Their existing water source is a surplus water agreement to purchase water from Deweyville Town.
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