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All

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right. Would like to welcome everyone to the Kane Springs Improvement District Board of Trustees meeting. It is Thursday, May 28th, 2026. The time is 2.30 p.m. I am in attendance. The board chair, Craig Weston. We've got Trent Arnold and Tom Gottlabe, all in attendance. So we've got all board members here. And I think the first action of item is to approve

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the minutes from last year, so October 13th, 2025. So, Jay, if you want to pull those up,

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I've had a

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chance to review them. Didn't really have any questions over any clarifications. Tom Trent,

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any questions? No questions? Okay, so with no questions, we have a motion to approve those minutes.

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Just Trent, I make a motion to approve the October 13th, 2025.

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five. I second the motion. I have a motion a second. All in favor. I. I.

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Aye. That is unanimous. All right. Let's move to number three public hearings. There are

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none. Number four discussion items for A. So, J, if you want to take it from here. Yeah. So

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at risk of sounding like a broken record, the insurance companies that ensure

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government entities increased their rates last year. We had approved as this board the contract

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for getting coverage up to 5,000. That was at the time a reasonable buffer, but now it doesn't

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cover the minimum costs. So I'm recommending that that be, first of all, a second motion made

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to approve the renewal cost that's that's in line with it as well as going

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through the fraud risk assessment for Canesprings Improvement District which is

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applicable to all governmental entities that becomes a public record through

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the state's auditors office once it's submitted that's an annual requirement and

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then we also now the insurance agencies like to have that on file as part of

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their renewal process.

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So we're going to get two birds with one stone on that one.

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And then I've put in a $7,500 on this one.

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But I think I'd want to include the motion to put that up

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to 10 just in case as I thought more about it.

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It's just, yeah, let's just go ahead and bump that.

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So, Jay, if you want to make the vote, adjust that to $10,000, Tom, Trent, do you guys agree?

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I agree.

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I agree.

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Okay.

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So, when you make note of this, let's bump that to 10, I think that's just say, for so

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you don't have to come back and redo something.

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So, I think this was pretty self-explanatory.

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Turns out insurance companies want to make more money, so that's the reality we're at.

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So, I will go ahead and make a motion authorizing the board and professionals have to finalize

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that execute the agreement for general, you moved it on me, insurance, and this is found under to say, for a, yes, for a, and then the, the chair will also finalize and submit the fraud risk assessment as part of that with the change that it's a $10,000 cap instead of the $7,500 list will make that in the before we get signatures on the resolution.

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Okay, so moved. So do we have a second?

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I have a second. All right, all in favor, aye.

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Aye.

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All right, that passes unanimously. All right, we're on to four.

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What item before we move off of that?

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Jay would like you to do the same thing for that fraud risk assessment.

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Any other policies that we can take from draft to final written policies.

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Let's do that for our next meeting.

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Yeah, yeah, that should be, as we do a lot of these are pretty, pretty uniform across

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different entities than Utah.

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Let's just use best practices.

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State best practices for everything.

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Yeah.

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All right.

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Let's go to 4B.

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So this is an update to the electronic meetings policy.

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Again, in response to legislation updating some entities more than others.

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I took the opportunity to simplify and streamline the electronic meeting policy.

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We fix some typos and things like that get it down to one page, which is what's presented

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to just have an updated electronic meeting policy to enable board meetings and particularly

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the members of the board to vote electronically.

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And that's also why when we do these, we make sure that we're confirming that the votes

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are unanimous.

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That's required under the code as well.

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Perfect.

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Any other questions or comments for Jonathan?

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on this one. No questions, we want motion.

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Trent, how about you?

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Yep, I'm sorry, I'm just getting my screen back up.

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Sonic, I make a resolution to adopt item 4b, the resolution updating the electronic meetings

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policy. All right, seconds of motion. All right, we have a proposal in a second. All in favor.

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I. Hi. That passes unanimously. Let's move on to 4c.

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Yeah. All right. And and this is our tentative budget and an amendment to the 2026 amendment or budget.

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Because there were substantial expenses as authorized back in in the fall about the the waste water facilities.

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Well, the equipment, specifically the equipment that was purchased by Cain Springs under that sole source procurement project and those exceeded a, sorry, I'm bringing up the.

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So the budget that was proposed that we need to amend was this one for 2026 will be amending that to reflect the actual expenses incurred.

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Similarly, the other then the sewer, the wastewater treatment equipment, there haven't been calls on on other expenses advanced on on the district's behalf. So really we have that.

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But because the expenses exceeded $1 million, we'll also be looking at a treatment or sorry an audit next year.

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And I will have some recommendations for the board to consider on how that does because it's very minimal in terms of the number of transactions.

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I don't I'm hoping we can get a good deal on that.

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But so that's why this one is is is in there are three things happening in this one.

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We're adopting the tentative budget for 27.

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We are setting the public hearing for 26 amended and 27 tentative.

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Because we anticipate there should be some additional related purchases as well as some of the more ordinary operations and management, we're looking at that being about $200,000 in the budget next year.

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Again, these are estimated and they're contingent on on some of the other other parties involved that have agreements with the district.

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So that is that is what's what this is presented for.

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We would have a the public hearing next week and at 2 p.m. or as soon thereafter as practical based on on availability of the space.

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and that will be that will be posted today to meet the seven day notice for

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quire perfect. AJ going back to the audit so explain to me I get the fact that

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that you know with an expenditure over a million dollars they want to audit

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is that something we hire a third party to do or is that yes okay so there are

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there are a limited number of entities that are approved through the state and they

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they go through, they work with the state auditor's office and then they provide those

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reports. And so that's just an additional layer of reporting when government expenses

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exceed a certain amount. There's, in addition to the budgeting, there's that audit.

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We have six months from the end of the budget period to do that. So we would be needing to

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do that by the end of December for the district.

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Okay, so and you can give us that list once we get to that point. Yeah. Okay. Awesome. All right. I don't have any other questions on this time or trend.

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No other questions. No questions. All right. Who wants to make a motion?

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If you put the resolution in front of me, I'll make it or I'll leave it. I'll leave it.

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It's there. It's all I'll make it. I make this is trying to make a motion to adopt the resolution adopting a tentative budget for the fiscal year ending June 30, 2027

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and setting a June for 2026 day for a public budget meeting hearing.

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I second the motion we have an motion and a second all in favor aye aye that passes unanimously.

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Okay and then the last action item on this is for D resolution for an updated grandma policy which will closely mirror and

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to make things a little bit easier for those who sit on multiple boards, a records and communication

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policy that does include the fee provisions and some cleanup there. So, so basically, again,

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unlike Echo Canyon, Kane Springs Improvement District does not have any staff, so it's really

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just the professional service providers responding. So state law would would allow those fees to be

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charged if they're hourly rates. Volunteers do not count and the board members are volunteers.

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Is that, I mean, assuming that is that listed somewhere on a website or now it's just when the

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grammar request comes in as they're an estimated, you know, this is x amount of time and x amount of

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dollars or how's that? Yeah, the the district has a has an obligation to respond to every government

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and de-asta respond and do that.

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And this also establishes that until that agreement

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to pay the actual costs is there,

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that's not considered a complete request.

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So that it's not running a timer

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when it hasn't actually been started.

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So we should probably just think about Jay

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the next time we may want to post those,

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so people are aware as to.

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Oh, you mean the policies?

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Yeah, so I'm talking about the policy. I'm also talking about just knowing what what the expense is going to be because obviously, you know, paying, paying an admin is very different than paying an attorney to, to do the research and the work on it.

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Yeah.

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So the policy will be posted on the public notice website after the meeting as we get through and get the approvals and everything done will post everything there. So the policies there and we could prepare a notice of, you know, current effective rates and that would just be in accordance with this policy.

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You can look at that.

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Yeah, I think that'd be helpful. So Tom, trying any other comments or questions.

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No, I think that sounds great.

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No comments for me.

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All right. We have a resolution. I will make a resolution, which is 4D in the minutes,

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and it is a resolution to provide an updated grant policy.

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All right. We have a motion, and we have a second.

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I'll make a second.

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All right. Trent, so all in favor, aye.

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Aye.

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Aye.

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All right. That is unanimous.

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Don't think on five that we really have any other reports to talk through this time,

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Moving on to six. No, I'm not aware of any closed sessions. Tom Trent or Jay. No, not for me. All right, with all of those things done, I will make a motion to adjourn this meeting. Do I have a second?

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All right. All in favor. I, I, and that passes. Thanks, everybody.

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everybody.

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Thanks everyone.