Kay’s Creek Board Meeting

Kay’s Creek Board Meeting
9/8/14
Layton City Bldg
3 pm

Present: Scott Green, Joe Hill, Adams Love, Woody Woodruff, Jon Green excused.

Budget review – with last quarter expenditures we should end the year with $100,000 – roughly with income from farmers not considered. With all the rain we have excellent water totals. Scott has dumped some into the ponds. The excessive watering notices have also helped a lot. Even though water levels are good, Weber Basin is still shutting off water services Oct 1. The reservoirs up higher are lower.

System is getting very old, $25,000 worth of damage done when the valve broke on Cherry Ln. There are 40 valves that need to be replaced plus 4 regulators that need service. $3,000 is the estimate for each valve with the parts, labor, and road repair. The insurance company denied the request to cover the cost and if we have more issues there is the possibility they could drop us. Should we raise rates to cover the cost of infrastructure repairs? Woody – rates should be the same across the board. Scott- there are connection fees coming in from Ed’s sub division around $26000. Differences in fee schedule between pressurized and farmers. Pressurized charged $125.00 for 1/3 acre feet and farmers pay $125.00 for 1st share – 3acre feet. Farmers don’t use as much water as residential customers but residential protects them from rate increases. With sod farms, which use as much water as residential, water meters could be utilized. Raise first initial share of water $25 for a total of $150.

The bid for the UDOT project was over our projected amount and so Scott would like to approach the state for a loan increase of $125,000. Joe recommended that since we can return the excess, we should ask for more in case prices go up or problems arise. How much? Woody brought up the Hill Field interchange. We would need $40,000 to put pipe under and while the construction is going on would be the best time to do it. Raise the loan amount from $805,000 to $850,000 for cushion. Motion made by Adams, seconded by Joe. Report to shareholders in the spring on the need to raise rates. Motion made by Joe to raise rates $25 for first share. Scott seconded.

We have expensive pipe sitting out on Scott’s property in the sun. He would like to build an extension on the shed with a rack to protect the pipe. He wants to make sure the company’s finances are in order to be sure it is affordable. Joe mentioned that to build 20 feet versus 40 feet would not be that much different in price. Scott will get a quote.

Layton City master plan – dump untreated water out of aqueducts if a deal is made with Weber Basin. With new construction, if there is a nearby wet line, they are hooking the homes up with secondary. September 23 meeting with upper brass Layton government will recommend that the water shares of Kays Creek and Holmes Creek need to be protected and brought under one head, most likely Kays Creek. There are cost savings that are important to the city’s growth and Woody hopes to help them see that secondary is the way to go. If that is the case, meetings with the water companies will be next. A loan will need to be taken out so that the city and the water companies can plan infrastructure needs. The master plan is a 10 year outlook. Layton City is not interested in becoming a secondary server. They want it to be privately done.

Salary discussion – Scott feels that he does not get paid enough for the work that he does. He is paid $35,000 a year and pays his own insurance, which will increase from $386 to $780. That is $4800 increase a year. He would be happy with $10,000. Woody suggested that Scott receive that plus insurance. Adams concurred and made a motion to increase to $45,000 plus $700 a month insurance. Joe seconded.

Meeting adjourned at 4:25pm. – Joanna Stowell, Secretary