2018 Shareholder’s Meeting

Shareholder’s Meeting
March 20, 2018
Layton City Council Room

Meeting opened at 6pm

Scott Green welcomed the shareholders.

2017 Shareholder Meeting Minutes were read.

Presentation by Scott Green:

Kays Creek Irrigation applied for a grant last year to install bubblers in Andy Adams reservoir, but we did not receive it. The company reapplied this year and we will know on April 24. We hope that it will help with the staining, but there is no guarantee.
Kays Creek Irrigation has no large projects going on this year.
The pressure out west is very high, over 100 psi. We are encouraging all customers to put in pressure regulators because the water pressure is so high.
Question: are the customers out west shareholders?
Answer: As I understand it, yes. The developers buy the water and turn it over to the homeowners.
Question: When will Church Street be pressurized all the way down? The land has been surveyed twice and pipe has been purchased. The project was okayed back in 2006.
Answer: Kays Creek hasn’t done the surveys.
Comment: The pipe was purchased but the work stopped at Suzanne Flinders’ home. The rest of the pipe was used at another project.
Answer: Ralph Firth is the ditch master for the Davis Weber ditch. He should turn out the water for everyone. That should be worked out with him.
A discussion was held regarding the status of homeowners out west. Concerns were raised about whether or not they are shareholders.
Question: Does Layton City sell shares?
Answer: Layton City maintains a pool of shares that they use for their water exaction program.
Mike Bailey made a motion to make an audit of the shares so that we can know who is allocated shares, who is paying, and how much. The desired audit is to be completed by the 15th of June and given to all the shareholders.
Seconded by Suzanne Flinders.
Comment: There needs to be accountability for who has water, who is paying for it, who isn’t paying for it.
Answer: The only way to know if people are hooked up is after the water is on. It would take a few weeks to check all the connections out west.
Question: Who will do the audit?
A request was made for an independent company to conduct the audit.
Question: What do you think that is going to cost?
Answer: We can check around and see and then put the amount on the website.
Ed Green: Regarding the Layton City water exaction program: 1 acre foot goes to culinary, 2 acre feet goes to secondary. The water goes in a pool and is allocated to each subdivision. The shares of Kays Creek are there for the Kays Creek connections. The water is there.
Question: Who pays for the water when property is developed?
Answer: The developer.
Jan Hyde: The minutes say that no one on Church Street was interested in the water. We have a petition from the people on Church Street stating that they do want the water.
Bart Hyde: We want the water that was agreed or I will sue the company. A formal bid needs to be made. Bids should be sought. The cost would be around $60,000. The money was already allocated back in 2006, so it should just be done.
Jan Hyde: We need to make a motion that the work will be done on Church Street. We want to see the work that was agreed to be done is done. What would you do in our position?
Answer: We have a way to get you your water share. I would take the water through the Davis and Weber ditch as we talked about in the past.
Scott Green: By expanding the pressurized system we have saved 35% of our water. It has been a benefit to the company to have this done. We have tried to utilize the company’s resources the best that we possibly can. The board felt that it would be best to pursue the pressurizing of the entire system. The people on Church Street don’t have water shares, are they going to buy them?
A discussion was held on where water comes from and where it is used. The developers buy the water and then turn it into the city. The city has an ordinance that water needs to be provided. Water can not be allocated when it is not there.
Question: What debt does Kays Creek have?
Answer: We have a loan from the state. We pay $65,000 a year to repay it. It is a 15 year loan. That is the total debt.
Question: How were improvements to Hobbs and Andy Adams paid for?
Answer: Loans and grants.
Question: Do we have funds for future projects?
Answer: We don’t have any projects on tap.
Question: Are plans in the works to raise rates?
Answer: No.
Suzanne Flinders: When rates are raised for the farmers, rates should be raised for the pressurized system. They should all be equal.
Question: What is the amount that is paid for the residential customers and the farmers?
The pressurized customers pay $150 for 1/3 share and $30 for each 1/3 acre foot after that. The farmers pay $150 for a full share and $40 for each share after that.
Scott Green: The Kays Creek Irrigation shed is being moved. The foundation is dug and footings are being put in. The foundation will be poured soon and the shed will be relocated to Kays Creek property. The city is expanding out west and water will be provided.
Question: Where are we with the city taking over the lines?
Answer: It is still in the works. We need to craft a plan that will benefit both Kays Creek and the City. They would take over the lines but we would maintain the dams and take care of the farmers. The city would take over the billing and portion out the water cost into their bi-monthly billing. Part of the money would come back to Kays Creek and part of it would go to the city for maintenance of the lines.
Question: East Gordon is being resurfaced. Is Kays Creek going to fix the pipe before the work is done?
Answer: That would be a good idea. The transite pipe needs to be changed out and one of the valves is backwards.
George Ronnenkamp: Where is all the water coming from? There is a finite amount.
Answer: The idea of the water master plan is that we combine with the other secondary water companies. There is water available for use in Layton City through the master plan.
Tom Day: The master plan isn’t set.
Question: How many times do we use all 2000 acre feet that we buy from Weber Basin?
Answer: We never have, although we have come close during the drought years. We turn some back, but we have a good partnership with Weber Basin because our boxes are close to each other and they take overflow from us that we can’t handle. They store that for us and we can have access to it if needed. They let us know on a monthly basis what they used and we meter the aqueduct.
Question: How is extra water put into Andy Adams?
Answer: We have an 8 inch line that we use, plus we have run off from the East Layton neighborhoods.
Nature Conservancy requests a corrected financial statement that shows the income line be sent to them by email.
Comment: I have a problem that my home has less water pressure than before.
Answer: Your home is right below the regulator so you should have a certain amount of pressure. The problem is probably a dirty filter. If you think that you don’t have one, you probably have an old steel one that is buried deep. You will have to dig down and if you need help let us know.
Question: Will names and addresses be included with the audit?
Answer: That will need be determined.
Tom Day: These homeowners shouldn’t have a vote. They don’t own shares because they don’t have a certificate, therefore they shouldn’t vote.
Scott Green: The residential owners have always had a vote. It has been that way since 1968. The water goes with the ground.
Ed Green: It would be incredibly hard to keep up with changing certificates with the residential customers. If they moved they could walk away with the certificate and not turn it in. It would be a huge mess to try to keep track of it all.
Scott Green called for the meeting to move into the voting phase.
Curt Deru 1/3 vote
Mike Thatcher1/3 vote
Wallace Crook 1/3 vote
Ed Green 2 votes
Brett Perkins 4 votes
Jon Green 117 2/3 votes
Scott Green 121 votes
Scott motioned that the meeting be officially closed.
Glenn Perkins seconded.
Meeting was closed at 8:10pm

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