Shareholds Meeting Minutes

Kays Creek Irrigation Company
PO Box 190 Layton, UT 84041
801-776-5052

Minutes of Shareholders Meeting/Board Elections

March 8, 2012

Layton City Council Chambers
437 N. Wasatch Drive
Layton, UT 84041

6pm

President Scott Green conducted the meeting.
Minutes from last meeting were read and accepted.

New Business:

Scott discussed the CRS system and explained how Layton City designed it and didn’t charge the company. Kays Creek received another grant from the Bureau of Reclamation for $165,000 that we will match. Davis County Flood Control is contributing to the grant. 10-inch and 8-inch line were in bad shape at Middle Fork. We will be able to replace them and will start construction in July. Layton City saved us another $25,000 by doing the design work again.

Question: Where is Middle Fork?
Answer: Behind Fernwood.

Rates for water usage were discussed. Scott explained that rates aren’t raised arbitrarily by one person; the entire board must vote. Costs were equalized by landsize. 1/3 of an acre (up to 14,000 square feet) is charged the base rate of $125. 2/3 of an acre to an acre (14,060 to 29,000) is charged an additional $30 per. Prices increase by the amount of acreage owned and the amount of water needed. A request was made for pricing breakdowns to be shown on the bills.

A dry line was put down Layton Parkway from Flint to Angel Streets. Layton City paid for the installation at a cost of $100,000 and we are paying them back by not charging them the fall assessment.

The Division of Wildlife Resources approached Kays Creek about stocking Andy Adams and Hobbs Ponds with perch, trout and bass. They are paying us $12,000 per year for use of the ponds. Due to increased use, Layton City has agreed to do trash pick up to keep the ponds clean. This is all done on a trial basis; if it doesn’t work we won’t continue. Boating will be allowed, but only pontoons and canoes; no motorized vehicles. A dirt road will be put in and a small parking space provided.

Question: What about bad water years?
Answer: The fish will be taken out and the ponds emptied.

Question: What if someone drowns? Are we liable?
Answer: No. We are protected by state law.

Andy Adams Pond is 80% pressurized. Hobbs is 60% pressurized. That saves 70 – 75% of our water from running down open ditches.

Layton City did a study to see what areas we could service with our water. The 2 lines under the freeway will supply West Layton. We could possibly join with Holmes Creek. They are struggling to stay viable. That would open the area south of Smiths.

Question: How long will it take to open new areas?
Answer: We will not go into debt to accomplish this. We will apply for a new grant in the fall to help with the cost. This will double our $ for construction. It may take 3 years.

Scott reviewed the prices of culinary water and demonstrated how secondary water saves the city and its residents money. Dave Decker, the old Layton City engineer, didn’t see the value of secondary water but Woody has been an asset and does see the value of secondary water. Layton City, Davis County Flood Control, Holmes Creek and Kays Creek can make Layton a greener place. Davis and Weber went through the same reasoning; utilize the water or lose it. Farms are going out of production; the pressurized system keeps the company viable. We need to expand so that we don’t lose our water to other entities.

Nominations for the board were then opened: Scott nominated Joe Hill, Jay Love and James Woodruff. Scott listed the many reasons why Woody would be an asset. There were lots of questions and comments from the assembled shareholders. Joe Hill explained that we do not want the position to be hereditary. Scott commented that we don’t have the finances to do all that we’ve done lately without Layton City’s help. They are good partners.

Raeleen Carmack asked if available board positions shouldn’t be advertized in the future.

The voting procedure was explained by Scott. Ballot need to be signed for verification. It isn’t a constitutional matter, it is a legality for corporations.

Suzanne Flinders brought up concerns about billing and money issues involving her ex husband.

Concerns were raised about the election cycle. Glen Perkins stated that it takes time to learn all there is to know about the company.

Patty Brown suggested that the elections remain on a two year cycle but that a general meeting be held every year. Don Nuzman made a motion and Charlie Camper seconded it. Rex Christensen opposed.

Raeleen Carmack:
Question: Are copies of the bylaws available?
Answer: They were mailed to everyone in 2006, but if replacements are needed, copies are available with a charge for the secretary’s time.

Question: Are annual reports compiled?
Answer: Yes, yearly.

Scott called secretary Joanna Stowell to provide the company financial statement but she forgot to bring them.

Question: Will the newsletter have the meeting minutes?
Answer: We can put the meeting minutes on the website along with the financial statement.

Question: Will Antelope Drive will be pressurized?
Answer: That that is the goal and we will have the money because of the grant.

Question: Who is eligible to run for the board?
Answer: Those who hold 5 or more shares.

Suzanne Flinders nominated her son Brett Perkins. Brett Perkins nominated his mother Suzanne Flinders. Patty Brown motioned that their names be accepted and John Purdy seconded. Voting then opened for the board positions.

Ballots were certified and counted by Joanna Stowell, Catherine Nalder, Angie Paskett and Harris Adams.

The final vote count was:
Jay Love: 144 2/3 votes
Joe Hill: 140 1/3
James Woodruff: 143 1/3
Suzanne Flinders: 61 2/3
Brett Perkins:62 1/3

The meeting was closed by President Scott Green. We adjourned at 8:40pm.

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(Joanna Stowell, Secretary)