Kays Creek Irrigation Shareholders Meeting 3/22/17

Kays Creek Irrigation Shareholder’s Meeting

Layton City Council Chambers

3/22/17

Welcome: Scott Green

Minutes: Joanna Stowell

Scott talked about the age of the system.  We fixed a lot of valves last year and are in process of doing more this year.  We are trying to do as many as we can before water comes on in April.  We will start loading lines around the 12th, since the 15th is on a Satruday.  Hopefully we will be able to avoid the problems we had last year.

Scott: Regarding the iron and manganese in Andy Adams: we didn’t realize there was a problem until we pressurized the system.  We have making calls all over the country and found a chemical that would help, but the cost is outrageous.  It wouldn’t have been feasible for the company.  As for the staining of the fences out west, we are encouraging the homeowners to use a product that we found called Unrust.  We also found a company called Maximum H2O which uses a magnet system which is supposed to change the composition of the iron and manganese, making it so that these minerals don’t stick to surfaces.  If the magnets do not work, we will receive our money back and can use that toward a new solution, though we don’t know what that would be at this point.

Q: Why is this Kays Creek’s problem?  Isn’t the developer responsible as well?

Scott: If you have a nice home and there is staining, you wouldn’t want the water.  You would disconnect.  All the improvements we have made and connections would not be covered because the money from the customers wouldn’t be coming in.  We want to make sure that we offer a good product that people want.  Clark: plus the developers pay for the lines and the connection fees, so they are already contributing.

Solar Bee installation in Andy Adams will help toward this problem as well.  We will be receiving a grant that will help us be able to install bubblers in the reservoir.  These will pull up water from the center of the pond and help to aerate the water.  This will help the fish, because in the summer many of them die because of lack of oxygen and the fact that the water is too warm.  It will also help to keep down the amounts of iron and manganese in the water.

2200 West from Layton Parkway is finishing up.  This will pick up about 150 new homes. Where the school is going in, Ovation Homes has a subdivision and the line will extend to that area.

Woody: Layton City Master Plan involves utilizing water within the city limits.  This involves Kays Creek, Davis and Weber, Holmes Creek, and Weber Basin.  We want to protect the reservoirs as these are a benefit to the community.  We want to enhance them and keep them nice.  The City Council has given verbal direction to see how we can best utilize water resources locally.  Layton City is taking over Weber Basin’s lines.  What this means for Kays Creek Irrigation is that we recognize the company is a great resource, and we want to make sure that we give support to the company.  A lot of the trunk lines and other infrastructure would be supported by the city.  This would be a benefit to Kays Creek and help with the company’s ability to maintain its lines.

Q: Is the city going to man the irrigation?

Woody: We are the operation and maintenance for Weber Basin.  That could be the same for Kays Creek in the future.

Q: What control would the city have over the shareholders of the company?

Woody: None.  We would help with operations and maintenance but every shareholder has control over their water shares.

Q: Do the stockholders have a voice or a vote on any of these actions?

Scott: If we want to join with the city there would be time for shareholders to voice opinions and then the vote would be held.

Q: How many non stockholders are there on the system?

Scott: All the new homeowners out west are shareholders.

Q: If new people are coming on, don’t they need to pay more?

Scott: No.  If we had to buy more water from Weber Basin, then we would have to assess the fees to the new customers, but we haven’t bought more water.

Weber Basin is increasing their O&M fees over the next five years.  Our cost of $42,000 will go up to over $100,000 per year.  This is a cost mandated by the state to cover maintenance and updates.

Hobbs Dam was lowered in 1989 and we are now approaching the state to see if we can raise the water level 10 feet.  We are meeting with the state on the 29th.  Parks and Rec wants to put in a trail all the way around both Hobbs and Andy Adams.

Q: Don’t you think you need to replace the pipe that is coming out of Hobbs?

Scott: That is something that we have looked into, but the pipe is sufficient for our purposes now.  There is a regulator on it that makes it work with the pipe.

Q: We are not going into Kaysville right?

Scott: We cannot.

Q: Destination Homes is on the border but they are getting water right?

Scott: Just on the north side but not on the south.  We don’t dump any of our water into Davis and Weber.

Q: What about Kevin Hill and those guys?

Scott: They are on the flood system and their water comes out of Andy Adams.  If they pressurized their lines they could sell their water.

Q: When will pressurization happen for Church Street?  You have been talking about getting a grant but that hasn’t happened.

Scott: We have to have the money to match half the grant.  When we did other grant work, we had help from the DWR.  They had a bond that they needed to spend, and we were able to show them that we could help with the flooding of Middle Fork.

Q: How can we make this a priority?  This has been on the table for a long time.

Scott: This is the purview of the city council.  The master plan is a Layton City project. We have no control over the timetable.

We are taking the money that comes in and are doing repairs.  The lines were put in in 1968, and the valves are old.  The bolts are wearing out so we are trying to do preventative measures right now.  We are currently fixing valves on Cherry, Emerald, etc.

Q: Where does the line end on Church?

Scott: Right next to John Purdy’s place.  We did the work as far down as we had the money.  We contacted people on Church Street and they did not want to hook on because of the cost, so we stopped.

Presentation by Darin Hess of Weber Basin

Q: What is the projected increase for residential water?

Darin: $30.  Weber Basin is really cheap water and we have worked hard to keep it that way, but the rates need to go up in order to meet the mandate passed by the state regarding repairs to our system.

Scott: If you were on Davis and Weber Water you would be paying double what we charge.  Ag water is $265 per share.  We are pretty cheap but there need to be repairs.  If they are not done, we won’t have water for anyone.  This is the bad news that we face all the time.  They used transite pipe in 63 because that is what they had at the time.  We have better products now that will hopefully last a lot longer.

Q: What is the amount due for water shares?

Scott: $150 for the first acre foot and $30 for additional water based on lot size for the pressurized customers.  For ag water it is $150 for the first share and $40 each additional share.

Q: Is the price changing this year?

Scott: No.

Q: Would it be possible, when we do a vote, to vote two alternate people in?  That way if a place came open on the board, it would be someone we voted for?

Scott: That is not how the bylaws are written, but that can be changed if the shareholders want to vote on it.

Q: How do we get names on the ballot?

Scott: There are elections every two years.  Contact Joanna at the beginning of the year to put your name on the ballot.  The bylaws require the board members to have 5 shares, except for the representative from the pressurized system (which is Clark) and the representative from the city.  That will probably have to change in the future because the farmers are disappearing, but again, that would have to be a vote from the shareholders to change that.

Q: You have sold your land, so what will happen next?

Scott: I have not sold the land yet.  I will let you know.

Q: What would happen to your position?

Scott: If still had my water shares I could retain my position, but that could all change.

Q: What is the future of the shed next to your house?

Scott: It will be relocated to where the worker’s can use it.

Meeting closed at 7:02pm

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