Board Meeting Notes

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

Board Meeting Notes

3/16/2012

Meeting held at 290 N. Angel Street
Kaysville, UT 84037

Scott Green, Joe Hill, Jay Love, Jon Green & Woody Woodruff present.

Scott opened the meeting. Joe reported on a Water Users Association meeting he attended. He said that a new law is under consideration to allow Weber Basin or the Jordan Water District to collect any excess water (i.e. unutilized water). If a point of diversion is changed, they could call for all the water to be evaluation. Clearfield could lose their shares under this law. A 40 year plan would protect the water.

A review of the recent Shareholders meeting was conducted.

Woody asked that a list of potential sellers of water shares along with their phone numbers be emailed to him so that Layton City could put developers in touch with them. (wwoodruff@laytoncity.org)

Scott said that the design for a new structure at Middle Fork was being finalized. Weber Basin and the state require permits that can put off construction for 90-120 days at an easement. A conceptual design is being done for the area off of Main. We haven’t heard from the railroad yet on permission to bore under the tracks.

Scott discussed pipe design, thickness, pressure rating and price. Woody volunteered to verify if a thinner pipe could be safely used.

Scott reported on how the pipe project is progressing. Construction will start soon, within the next 2 weeks. The pipeline is almost to the police station and will hopefully be to the freeway at the end of summer.

Woody did a presentation on Layton City’s master plan for water use. He said that the city conducted a detailed study of the water system with Kays Creek water as part of the plan. The partnership between Kays Creek and Layton City will allow us to apply for grants with the federal government to build infrastructure. We will want to build trunk lines so that new developments will have water and be required to hook up at that pont, where now they are only required to have dry lines. Layton City and its partners need to come up with ways to build the basic infrastructure and pay for it.

Layton City would have to spend $8 million to expand and go to Weber Basin for water. If the city works with Kays Creek, the cost goes to $4.5 million. This benefits the customers and Layotn City. Holmes Creek has a certain amount of water that is unused. Kays Creek could work out a plan with them where they supplied water and we delivered it.
Question by Joe: What would it cost to get their water to us?
Answer by Woody: $500,000
Question by Jon: What about Davis & Weber? Are they part of the city’s master plan?
Answer by Woody: We will do everything in our power to promote use of Kays Creek Irrigation water.

Woody speculated that with Davis & Weber in financial difficulties, Weber Basin would probably take them over, but not let them go under. They’ll get to continue to supply water to their customers. The state will protect them too. Layton City is limiting Davis & Weber because they won’t provide modeling and future plans. It was also noted that Davis & Weber is having problems with their water pressure; that is why they want to put pipe down 2200.

Question by Joe: Do we have enough water?
Answer by Scott: That is why we are doing the model – to make sure we don’t overextend. We could possibly service as many as 7000 customers.

Jon noted that we should get water from Holmes Creek.

Scott replied that Holmes Creek’s Board had approached us to see if we would buy them out, but in the end we declined because of issues with their shareholders. That is something we could look into for the future, however, as there is no competition for Holmes Creek Water. Weber Basin doesn’t want to expand its secondary water system.

Woody noted that taking over Holmes Creek is something to seriously consider. They have a new reservoir with 1500 acre feet but have no delivery experience. Scott said that the boards of the two companies could possibly meet.

Woody said that an agreement could be crafted between Layton City and Kays Creek Irrigation that would limit other companies coming into the city as water providers. Scott agreed to meet with Holmes Creek. Woody said that Layton City is prepping them to become water suppliers. He also noted that the City is working with UDOT and that would be an ideal time to install the pipe.

Scott put forth the idea that since the ballot counting took such a long time that we could send out proxy ballots in advance and require them to be turned in by a certain date in advance of the meeting.

Scott reported that he purchased the items discussed at the last meeting except the GPS. We could buy it later in the year. Jon made a motion that Scott buy the GPS. Joe seconded.

Scott brought up a purchase opportunity. Bill Stokes wanted to sell a work truck for $1200. It has lots of compartments for storage of items needed at job sites; that feature would save time and energy and make the work done by Scott and Wes easier and more efficient. Jon made a motion to buy the truck and put it in the company’s name. Woody seconded.

Scott mentioned a conversation held with Ms. Suzanne Flinders. She had asked whether Kays Creek Irrigation had a drug policy in place. No drug policy is on file. The company practices of Layton City and others regarding drug use were discussed. Woody made a motion that we adopt a policy of no tolerance for on the job drug use and Scott seconded.

The policy of using two signatures on checks is to be continued. The company’s financial statement was presented and a motion to approve was made by Joe and seconded by Jon.

Scott Green was nominated as President of Kays Creek Irrigation Company following the shareholder meeting vote with Joseph Hill and James “Woody” Woodruff as members of the board. Joe made a motion to accept and Jay seconded.

The meeting adjourned.

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Joanna Stowell, Secretary