[0:03] Good.

[0:06] >> Good morning everybody. I'd like you to

[0:07] welcome you out to our regular board

[0:09] meeting June 11th, 2026 at the Magna

[0:12] Water Water District. Uh I'd love to

[0:15] call this meeting to order. Uh today

[0:18] sitting at our dis we have our engineer

[0:21] uh Trevor Andre, our wastewater Dallas

[0:24] Henline, our water manager, um

[0:30] Steve Clark, our HR guy, uh Andrew

[0:33] Sumpion, Jeff White, myself, Mick Sbury,

[0:37] Danny Stewart, Leo Fitzgerald, our

[0:40] controller, our legal counsel, Nathan

[0:42] Bracken, and helping us with the meeting

[0:44] today is our general manager, Clint

[0:46] Dilly.

[0:47] So will you guys please stand and join

[0:49] me with the pledge of

[0:49] >> allegiance.

[0:53] I aliance to the flag of the United

[0:57] States of America and to the republic

[1:00] for which it stands. One nation under

[1:03] God, indivisible with liberty and

[1:06] justice for all.

[1:07] >> Thank you.

[1:12] » I'd like to welcome the public and

[1:14] guest. Um, anybody here with public

[1:17] comment today that wants to speak to the

[1:18] board?

[1:25] Nobody wants to any

[1:28] Is there anybody out there that wants to

[1:29] talk?

[1:31] >> Does anybody want to speak to the board?

[1:34] >> Public comments.

[1:37] >> Okay, come on up. We have

[1:39] >> taking back the

[1:51] I can't hear that.

[2:02] » Yeah, we'll take

[2:04] >> Oh, thank you.

[2:14] This is all the insurance and and stuff.

[2:18] Our insurance got a hold of your

[2:21] insurance and stuff. So, we're bringing all this up right now. So,

[2:26] >> so you got So, your insurance contract

[2:29] contacted our insurance.

[2:31] >> Are we

[2:32] >> And they both denied it.

[2:34] >> They both denied it.

[2:36] >> So, we got this this is new. This is

[2:37] what the what the plumber has just given

[2:41] it. So

[2:42] >> you want to read it copy it. So do you

[2:44] want to copy it?

[2:45] >> Uh sure.

[2:48] Thank you.

[2:56] » Jeez. I can't even. Can you read that? I

[2:58] can't hardly see that.

[3:01] >> I'm blind, too. So this is from the

[3:04] plumber.

[3:05] >> What's that? This is from the plumber.

[3:07] >> From the plumber. Yeah.

[3:11] >> Cost to call

[3:15] jet sewer line

[3:18] after

[3:21] third of something. Oh, third of the

[3:24] cable could not clear sewer way. So went out and pulled

[3:33] manhole two doors down and it was full

[3:37] of new sewage.

[3:40] So called Magnus Sewer District and they

[3:44] came out

[3:46] and confirmed it was

[3:49] their problem. By then, sewage

[3:52] was backing up into the Martina's home,

[3:58] filling the basement.

[4:03] My supervisor, wait,

[4:06] he's writing some supervisor

[4:09] came down, said,

[4:12] "Get it cleaned up.

[4:16] Get a cleanup company."

[4:18] Here. This is on us. Get a Oh, we'll

[4:22] Magna supervisor came down said we'll

[4:25] get a cleanup company

[4:28] here. This is on us.

[4:34] » Dallas, do you want to respond? That

[4:36] would be

[4:38] >> Oh, sorry.

[4:39] >> Yeah, Mr. Chairman. So, I remember the

[4:41] incident um and I remember going in the

[4:44] basement um but we never declared fault

[4:47] one way or the other and we didn't um

[4:50] offer to send a cleanup service. There

[4:52] was a cleanup service on site. Um they

[4:55] were shot backing and everything.

[4:56] >> You told us to go ahead and get the gun.

[4:58] >> I said you could have somebody come and

[5:00] clean it up, but but that was no

[5:03] declaration of fault by the district.

[5:05] But we can't we can't tell you not to

[5:07] clean up the mess. And you guys made the

[5:10] mess. What do you mean you can't clean

[5:12] up the mess?

[5:13] >> Well, I think if we go back and read the

[5:15] report and the details and you'll see

[5:17] that there was an issue in the lateral

[5:19] at the connection from the main to the

[5:21] home, not in the main itself.

[5:24] >> We came up here and got you guys to go

[5:27] down there and see what was going on.

[5:29] Then you stuck that tube down.

[5:32] >> So, we did perform maintenance in the

[5:34] collection system manually.

[5:35] >> Pushed it up the into my sewer. We just

[5:38] it was just a vacuum. It wouldn't have

[5:39] been able to push it up. But if you

[5:41] remember

[5:42] >> when

[5:44] >> if you remember the tool that that guy

[5:45] was pushing out, he had pushed all the

[5:47] debris from a lateral inside the main.

[5:50] Remember the rags and the roots and

[5:52] stuff?

[5:52] >> Yeah, it was up. It was up coming from

[5:55] up there up the block

[5:57] >> there. Yeah. There was no evidence of

[5:59] any type of clog upstream of your

[6:02] lateral.

[6:05] So, can I can we recess on this, Nathan?

[6:08] >> Can we go into a close?

[6:10] >> Yeah, we can go into close and talk

[6:11] about this.

[6:12] >> Okay. Does someone want to make a motion

[6:13] to close this? Close the open and we'll

[6:16] go talk and then we'll come back. You um

[6:19] do you want to make it is at 10.

[6:23] >> Now, to be clear, it's it's not

[6:25] something that's noticed as an action

[6:27] item on the agenda, but we could go and

[6:29] discuss it.

[6:30] >> Okay. We can go and discuss it. Okay.

[6:33] >> Yeah.

[6:35] Okay. So, should I make a motion?

[6:37] >> Question I have for you on this though.

[6:39] So, if we go in and if we go in and

[6:41] discuss it, we can't come back out here

[6:43] and rule on it. Right.

[6:44] >> We don't have anything on our agenda

[6:45] that's an action item, but if there's

[6:48] next steps that you want to take or

[6:49] direction you want to give staff, you

[6:51] could do that in response to the public

[6:53] comment.

[6:53] >> Okay. Okay.

[6:56] Go ahead and and close the open.

[6:58] >> Okay. Mr. Chairman, I'd like to make a

[7:01] motion to uh close the open and go into

[7:04] close

[7:05] >> to

[7:05] >> I guess it's to discuss the reasonably

[7:07] imminent litigation.

[7:08] >> Yes.

[7:08] >> To what?

[7:09] >> Litigation

[7:10] >> for for litigation.

[7:11] >> Yes.

[7:12] >> That's 10:07

[7:14] a.m.

[7:16] >> I'll second that.

[7:16] >> In motion second. All in favor.

[7:23] city want to make a motion to open.

[7:31] » Yeah.

[7:31] >> Mr. Chairman, I'd like to make a motion

[7:33] to uh go from closed to reopen the open

[7:38] meeting is 10:45.

[7:41] >> Second.

[7:41] >> In motion, second. All in favor?

[7:43] >> I.

[7:43] >> Okay, you guys. So, you you presented us

[7:46] some new evidence today. So, what we

[7:48] would like to do, and we can't make a

[7:50] decision here today because we've been

[7:51] into close, is we want to reach out to

[7:54] our insurance company one more time and

[7:57] kind of go back and see where we're at

[7:59] on that. And then what we'll do is we'll

[8:01] respond back to you guys and give you

[8:05] what we can what we can work out if

[8:07] that's okay.

[8:10] >> Got no choice.

[8:11] >> Right.

[8:13] So, Leo, do you need any other You know,

[8:16] when I was going through reading um some

[8:18] of your expense, I I'm going to be

[8:21] really honest with you, I couldn't

[8:23] really understand it because it's just

[8:25] got all kinds of different numbers. If

[8:27] you if you wouldn't mind um writing them

[8:31] out, hand, you know, line by line what

[8:33] the expense was and bring it up to the

[8:35] office and and give it to Leisle, then

[8:38] that way we could maybe understand that

[8:40] a little bit better if that would be

[8:41] okay. Did you get all those pictures

[8:43] that sent to me?

[8:45] >> Yes. Yes.

[8:48] >> Yeah. Yeah. Right.

[8:50] >> So, um

[8:52] >> right now we're paying the cleanup

[8:54] through

[8:57] 400 a month and

[8:59] >> Okay.

[9:02] How long how long do you think before we

[9:04] can give them an answer? Do you have any

[9:05] idea? Leah,

[9:08] >> um what do you think, Clint? That's

[9:10] going against our credit.

[9:11] >> Right. Right.

[9:15] » Shouldn't take

[9:16] >> a month

[9:18] >> by the next board meeting.

[9:21] >> That's a burden on us,

[9:22] >> right?

[9:23] >> You know, we only get

[9:25] >> Right. Right. Right. I understand that.

[9:26] >> I had to sell my sell my truck. 40

[9:30] years,

[9:31] >> right?

[9:33] So, yeah, let us um like I said again,

[9:36] get get in contact with our insurance

[9:39] company and then we'll get back to you

[9:41] guys.

[9:42] >> Okay.

[9:43] >> And you know what? If we can push it

[9:45] along faster, we will.

[9:46] >> Okay.

[9:48] >> Thank you, Tommy.

[9:50] >> Thanks.

[9:59] So, does anybody here have a a conflict

[10:02] of interest? What's on our agenda today?

[10:06] Okay, we see none. Okay, let's uh move

[10:09] on. Let's to approve common consent

[10:11] items.

[10:12] >> Minutes of the regular board meeting

[10:14] held May 14th, 2026.

[10:18] Expenses from May 7th to June 3rd, 2026.

[10:22] General expenses $798,54.72

[10:27] sign

[10:29] payment $83,53083.

[10:34] » I'll second it.

[10:35] >> A motion is second. All in favor? I

[10:37] >> I

[10:39] >> Okay, let's move on to our department

[10:41] report. I'm going to turn it over to

[10:42] you, Clint.

[10:43] >> Thanks, Mr. Chairman. I'll highlight a

[10:45] couple things from the report. Our

[10:48] staffing, all of our positions are

[10:50] currently staffed.

[10:52] Um on the operations side for the water,

[10:55] the copper club secondary water line

[10:59] install is complete. Substantially

[11:01] complete. Actually, we finished up on

[11:03] that, right, Steve?

[11:04] >> Everything but half of the approach is

[11:06] done.

[11:06] >> Yep.

[11:07] >> And that looks good. I seen it last

[11:08] night.

[11:09] >> Yeah,

[11:09] >> they're using the reuse water on the

[11:12] >> greens.

[11:12] right? So, that's exciting. Y

[11:16] >> big big uh thing for the district and

[11:19] for the golf course.

[11:20] >> Yes. So, that's that's neat to be able

[11:22] to report. Um, one concerning thing that

[11:25] we wanted to just give the

[11:28] board a heads up on, we every year

[11:32] before we send water into the drinking

[11:35] water system, we sample each well

[11:38] individually

[11:39] and make sure that it's clean

[11:42] uh, and ready to go. And one of our

[11:45] wells before we put it into the system

[11:48] this year came back with some bacteria

[11:50] present.

[11:52] We don't know where that's coming from.

[11:56] Um so we've been disinfecting and

[11:58] flushing. We've been discussing with a

[12:01] consultant

[12:03] um what the possible sources are. Um we

[12:08] haven't reached a determination yet. Uh

[12:13] our disinfection

[12:15] uh and flushing has been challenging to

[12:20] get this well

[12:22] uh on where it should be, but we did

[12:26] some more this week and it's looking

[12:29] it's like it might be turning around. Um

[12:32] so Steve, do you want to add anything

[12:34] else on that? Um, yeah. So, the shop

[12:37] treatments we've been doing, we were

[12:40] having, like Clint said, having a hard

[12:41] time getting a residual. And this last

[12:43] one, the Matt took a sample yesterday,

[12:45] we actually got a pretty good residual

[12:47] from it. So, that's promising, but we

[12:49] won't know until we get the results

[12:51] back.

[12:51] >> Is this the one that we reworked?

[12:54] >> Yes, this was

[12:55] >> Yeah, Hannes Well, number two. We had

[12:57] rehab.

[12:58] >> We had rehabbed it three or four years

[13:00] ago. When they did do that rehab, there

[13:03] was

[13:05] uh spots on the casing in the bottom

[13:08] that was really uh corroded.

[13:11] >> So they filled in the bottom um and

[13:14] sealed it off.

[13:17] One of the concerns that we have is

[13:19] whether the surface seal for the casing,

[13:22] which prevents water from the top of the

[13:26] ground from getting in,

[13:29] >> it has to usually be forced down, clear

[13:32] down all through the gravel and it gets

[13:34] cleaned up and then it comes in,

[13:36] >> you know, lower. If there's a break in

[13:39] that surface, it could potentially come

[13:41] in before it's been

[13:43] >> naturally filtered.

[13:44] >> Wow.

[13:45] >> Right. So, that would be our if this

[13:48] doesn't work, that's our next step is

[13:51] we're going to have to pull the well and

[13:53] inspect for that surface seal. Maybe do some special logging where they can

[13:59] tell what the concrete around the well,

[14:02] the condition of that is. Um, but again,

[14:06] none of that water's been put into the

[14:07] system. Um, all of our sampling of the

[14:11] system and the other wells is looking

[14:13] good.

[14:14] >> So, just wanted to make the board aware

[14:16] of that. We're working through that to

[14:18] make sure uh we protect the public

[14:21] health before anything.

[14:23] >> Great.

[14:24] >> So,

[14:31] they've also wanted to bring the board's

[14:33] attention the PAS. You've heard of the

[14:36] PAS. We've had to do some additional

[14:40] sampling um because we had some hits on

[14:46] two of the chemicals.

[14:48] >> Yeah. So, when we sampled our finished

[14:50] blend that that's what comes out of the

[14:52] plant, a com combination of all of our

[14:54] wells, there was just a slight detection

[14:57] and

[14:58] >> it's below the limits, but

[15:00] >> they want us to do some additional

[15:02] testing. And so we're working with the

[15:04] state and they're actually paying for

[15:05] the test to sample all the wells to um

[15:09] see if we can isolate where it's coming

[15:10] from.

[15:11] >> But the state also told us that our

[15:14] neighbors, they didn't say which one,

[15:15] but we pretty much got one neighbor.

[15:18] They've uh they've got really high

[15:20] levels in their system. So

[15:23] >> is it existing naturally?

[15:26] >> No. PAS is that man-made chemical that

[15:30] they It's basically like Teflon.

[15:33] >> Yeah. I mean, it's

[15:34] >> really hard to break down. It's really

[15:36] small chemical.

[15:37] >> Yeah. It's in tons of different stuff

[15:40] and they say it can like leech into the

[15:43] ground from landfills or anything.

[15:44] >> It's the the argument against it. Uh

[15:50] there's there's two arguments and the some argue that you wear you get

[15:56] more of it even just from your clothing

[15:58] and your cookware

[16:00] >> than you would ever get from the

[16:02] groundwater.

[16:03] >> Oh wow.

[16:05] So they've actually this administration,

[16:09] the Trump administration is dialing back

[16:14] what they

[16:16] how restrictive these limits would be.

[16:18] These limits aren't in place yet.

[16:21] >> There's just been a bunch of testing to

[16:23] see how much determine how much the

[16:25] problem is. And so we don't actually

[16:27] have any PAS requirements yet. This is

[16:31] all for in the future. And from my

[16:34] understanding, the Trump administration

[16:36] has even dialed back what the EPA

[16:41] would require. So, just want to make you

[16:44] aware in the past sampling, we haven't

[16:46] had any hits. There are some really

[16:50] small amounts that have been detected.

[16:53] Um and

[16:56] it would the re one of the reasons we

[16:58] did additional sampling sampling is to

[17:01] determine the scope

[17:03] if there's anything else in there. So

[17:06] wanted to make you aware of that.

[17:09] Anything else, Steve?

[17:11] >> No, that's it.

[17:13] >> Okay. On the wastewater side, just the

[17:17] SL rats begun the acoustical inspection

[17:20] services, right, Dallas? So you might

[17:22] see the golf carts out in the system.

[17:25] >> I seen them today.

[17:28] >> Um excited about this. The crew, our

[17:31] crews have raised 17 buried manholes so

[17:34] far uh as of our last discussion with

[17:38] only a few remaining left to complete.

[17:40] So that's

[17:41] >> So is that just because they've settled

[17:43] over time or because they've did

[17:45] overlays and built the road?

[17:46] >> overlays.

[17:49] or they or we found them through

[17:51] inspection and they just need to be

[17:53] brought to grade.

[17:56] » Uh I know we talked about this. We've

[17:59] been working on a draft in-house no

[18:02] fault sewer backup program policy that

[18:04] we'll talk about on this agenda later.

[18:06] Auditors have completed their work and

[18:08] they're on this agenda as well. And then

[18:12] we're kind of reaching the finish line

[18:15] here with Yapify

[18:18] uh and this AMI portal. So, we're

[18:21] getting close. Um Trevor and Lyle also

[18:25] worked with them to get a grant.

[18:29] So, if we can get some money to be able

[18:31] to implement that program, we'd be

[18:34] excited to have that help us. Uh

[18:38] not a big grant. What was it? 50%

[18:41] >> 50%

[18:42] >> years

[18:42] >> for three years, but uh it'll add up.

[18:48] » Nothing new on delinquent accounts to

[18:50] highlight.

[18:52] Um and then just wanted to highlight

[18:55] on communication and morale. We've had

[18:58] some successful interaction with the

[19:00] community schools. Uh, want to thank

[19:02] Andrew and Steve uh for putting on some

[19:06] presentations,

[19:07] working with the schools on career day.

[19:11] Just had a lot of positive feedback and

[19:13] it sounds like we'll be invited back in

[19:16] the future. So, I think that's good good

[19:20] uh result out of there. Dr. Horton and

[19:23] Salt Lake Excavings finally begun work

[19:26] on the 4100 South water line. They made

[19:29] our first connection on the drinking

[19:32] water side and that went well. We're

[19:35] hoping that they just keep working on

[19:40] our stuff and getting it out of the way

[19:43] so that the road can then

[19:45] >> do we have any way to put pressure on

[19:47] them to

[19:48] >> be able to put crews on there to get

[19:50] this done?

[19:52] all the excavation all the

[19:55] >> I don't think there's really a tool for

[19:58] us beyond the agreement

[20:01] uh mod amendment

[20:04] um there is a time frame in there uh

[20:07] right there

[20:09] >> but the city is really driving that with

[20:11] the road final road construction so I

[20:14] mean if they only put four guys on it

[20:16] they're just poking along versus you

[20:18] know

[20:21] I mean, even to get this tie in, we've

[20:24] been pushing them just via email

[20:26] talking. We'll keep doing that, you

[20:29] know, for our infrastructure.

[20:30] >> So, as we talked today, the tie in to

[20:33] bring everything up to bring everything up before the city

[20:37] can build the road, right? We're

[20:39] probably looking what time frame we're

[20:42] looking at um with all the

[20:45] >> So, to finish the water and secondary,

[20:47] it's probably a month.

[20:53] And then they still they have storm

[20:54] drain.

[20:55] >> We still have storm drain. So we're

[20:57] looking we're looking towards the end of

[20:58] summer before that road can even start

[21:01] probably.

[21:02] >> They I mean there are ways to phase the

[21:04] I don't know what their plan is. So it's

[21:06] hard to tell.

[21:07] >> Yeah. And we don't know either. So

[21:11] » maybe the city can pin them down.

[21:13] >> But I'll I'll keep poking them.

[21:14] >> We've been trying.

[21:16] >> Get Hey, you guys got this. get a second

[21:18] crew if this those things I can verbally

[21:22] ask request

[21:24] >> Nathan do you want to you probably don't

[21:26] want to respond on anything right with

[21:28] the Dr. important with that road. Okay.

[21:33] >> But I think we've talked about the other

[21:34] things. So I think anything else from

[21:36] the board. Uh that's my report.

[21:38] >> So let's go back to So you know, I think

[21:41] it'd be really good. You guys are going

[21:43] to be in the Fourth of July parade. I

[21:44] think it'd be neat if you had a banner

[21:46] about your reuse water. Um I think that

[21:49] would be a pretty neat

[21:51] >> Yeah, we can do that.

[21:51] >> A pretty neat deal to just kind of

[21:54] >> give, you know, give everybody some

[21:56] communication. And was was the water

[22:00] district going to have uh any kind of an

[22:02] open house for the reuse?

[22:04] >> We did the one for just for the

[22:09] one of the one of the thoughts we had

[22:11] discussed is maybe we tie that with the

[22:15] landscape

[22:16] garden.

[22:17] >> Okay. and do maybe a combined type.

[22:23] >> I think it'd be kind of cool to do um

[22:25] some kind of like

[22:27] an open house just so people can see

[22:31] because when you tell them that we're

[22:33] doing reuse,

[22:34] >> yeah,

[22:35] >> I think if they seen it, it'd be a whole

[22:36] different ballgame.

[22:37] >> Okay, we can do that.

[22:41] >> We'll work towards getting something set

[22:43] up.

[22:44] >> Okay, great. Thank you.

[22:46] >> Okay. Okay, let's move on.

[22:50] Trevor to your engineering

[22:52] report.

[22:54] >> Thanks board chair. For the engineering

[22:56] report, we've just been making steady

[22:59] progress on projects that we have in

[23:03] power station

[23:06] building is

[23:08] really close to being fully operational.

[23:11] Electric electrical is pretty well

[23:14] complete.

[23:16] Um we ran a lot of piping from our

[23:19] existing heads over to that to make

[23:21] transition from the

[23:24] descent.

[23:25] Uh really close to getting those

[23:27] connections and you know use that

[23:30] equipment pump station itself.

[23:33] You know the screw pumps are in. They've

[23:36] coated the channels. They started

[23:38] putting on splash guards and installing

[23:40] grading. They did steps

[23:45] So that that structure is almost

[23:48] complete as well. Um some big things

[23:51] that still need to happen is some of the

[23:54] yard piping

[23:56] and then some work inside the wet well

[23:58] the east head works

[24:01] along well there's

[24:03] well number eight. We've uh got the

[24:07] contractor out there starting to drill

[24:10] the well. Uh we also were able to get

[24:13] the application completely submitted

[24:15] into the EPA. They've started their

[24:17] paperwork process. We have a grant

[24:20] number

[24:22] um and a person assigned to it. I

[24:24] anticipate that we'll get some paperwork

[24:27] in the next hopefully few weeks for us

[24:30] to sign to finalize that.

[24:34] And then the intent is

[24:36] once we have that in place and towards

[24:39] the end of the drilling, we'll bid that

[24:42] out.

[24:44] pump station

[24:48] then westside collection project 1B

[24:52] we've got a item on the agenda to

[24:54] discuss that and get the fiber relocated

[24:57] and get that project across 2011

[25:01] west side collection uh project phase

[25:03] three is moving along well um working

[25:06] with the design engineer we've got some

[25:09] areas there crossing Kennot land and the

[25:13] Copper Club Golf Course. So, we've

[25:16] started communication with Tenacott as

[25:18] well as the golf course to get our

[25:20] alignment through there. Started looking

[25:23] at needs for easements, things of that

[25:25] nature.

[25:27] Um,

[25:29] the operations building at the treatment

[25:31] plant, we've got an agenda item on the

[25:34] meeting for that. The reservoir we just

[25:37] visited.

[25:39] Um,

[25:40] there's maybe a couple on the punch

[25:43] list. We'll wrap up with

[25:46] all that is in really good shape and

[25:49] just waiting for that secondary water.

[25:51] Lead copper moving along well. Um again,

[25:56] customers have just been great on this

[25:57] one.

[25:59] Sometimes it's a struggle to get them to

[26:01] sign the forms that we need, but as far

[26:04] as getting on the property, working

[26:06] through that, they've been great. So

[26:08] Tempest and about 50%

[26:13] continue to see Tempest out there 8950

[26:17] 9150

[26:19] through that

[26:21] and conservation garden. We've got our

[26:25] plants at 100%. We're finalizing some

[26:28] signage there

[26:30] and then we'll look to get that bit out

[26:33] so that it can be planning and done this

[26:37] fall.

[26:39] That's it. engineering and any questions

[26:42] on anything specific?

[26:43] >> Looks good.

[26:46] >> Okay, moving on. Steve,

[26:49] >> your water report.

[26:50] >> All right. Thank you, board chair. So,

[26:52] the culinary water production for the

[26:54] month of May was 178.42 million gallons

[26:59] or 547.62

[27:01] acre feet. That's a.12%

[27:05] decrease from 2025.

[27:08] Our year-to- date production was 597.12

[27:13] million gallons or 1,832.65

[27:18] acre feet and that's a 87% increase from

[27:23] 2025.

[27:25] Um, so far year to date, we purchased

[27:28] 337.08

[27:30] acre feet of water from Jordan Valley.

[27:34] The secondary water production for the

[27:36] month of May was 50.84 million gallons

[27:40] or 156.04

[27:42] acre feet. That's a 13.86%

[27:46] decrease from 2025.

[27:50] Year to date, we've done 71.68

[27:53] million gallons or 220 acre feet. That's

[27:56] a 9.99%

[27:59] decrease from 2025.

[28:02] As far as the call outs go, we had a

[28:05] total of 28. 25 of those were from the

[28:08] water and three of them were from

[28:09] wastewater for a total of 93 hours. 78

[28:14] which were water and 15 of those were

[28:16] waste water. We had one main line leak,

[28:21] five service line leaks, and then 22

[28:23] miscellaneous calls.

[28:26] Um, that's all I have unless you guys

[28:28] have any questions.

[28:30] >> No, I'm good. Thank you. Thanks.

[28:32] >> Okay, Dallas, go over to wastewater.

[28:35] >> Mr. Chairman, so the wastewater

[28:37] treatment plant remained in compliance

[28:39] with all the permit requirements

[28:40] throughout May. Um, routine sampling's

[28:43] just been really consistent and within

[28:45] the expected ranges with no no issues to

[28:47] report. Um, reuse sent to the system was

[28:51] 35 million gallons for the month of May.

[28:54] That's 5 million gallons more than we

[28:55] did in May of 2025.

[28:58] And then um treatment staff completed

[29:02] some jar testing. We're testing

[29:04] alternative polymer sources. Um there

[29:08] wasn't any performance increase and

[29:10] there were no cost savings. So we're not

[29:11] going to make a change on that end. And

[29:14] then

[29:15] um one thing that may or may not hit the

[29:18] radar is there's an issue at the Tilla

[29:21] City wastewater treatment plant. So,

[29:23] they've been coming to our plant for the

[29:25] last two days to get microorganisms.

[29:28] We've given them about a 100,000

[29:30] gallons. Um, they took a slug load from

[29:32] an industrial user and it killed their

[29:34] aeration basins. So, we're working with

[29:37] them as good as we can to get them back

[29:39] online. Um,

[29:42] no news yet. I I think they're still in

[29:44] a pretty tight spot, but we'll do

[29:46] everything we can to support them.

[29:47] >> How long ago did this happen before? Was

[29:49] it a year ago or two years ago? It's

[29:51] been a few years since they've had to

[29:53] come get bugs, but yeah, it happens more

[29:55] often than anybody would want.

[29:57] >> So, um,

[29:59] >> we done it when I was down there twice.

[30:01] We done it before when I was down there.

[30:03] >> And then just BOD and TSS, we're still

[30:06] in the 98 99 percentile rate. Um, F1

[30:09] ammonia looks good. Wasting rates off

[30:11] consistent. So, plants in a really good

[30:14] spot and nothing else really to report,

[30:17] Mr. Chairman.

[30:18] >> Thank you. Thank you, Kayle.

[30:21] >> Thank you, Mr. Board and Chair. Um, as

[30:25] far as reporting on the compliance uh

[30:28] requirements for the district, I believe

[30:31] we're in compliance with everything.

[30:32] I've got a few highlighted. Um, again,

[30:35] for Clint's benefit, I kind of changed

[30:37] this form. The last form, there was

[30:39] three columns. Um, the first form, the

[30:42] first column was the date we completed

[30:44] it. Second column was due date and the

[30:46] third column that I took out was like

[30:49] next anticipated completed date. But I

[30:52] feel like it was easier to read. If

[30:55] there's a date in the completed, that

[30:57] means we've completed it. If there's

[30:58] not, we haven't. I don't know. Um, so

[31:02] the first item there highlighted is our

[31:04] annual filing of our financial

[31:05] statements. That will be done after the

[31:08] audit report is presented today and it's

[31:10] due by June 30th. we should be able to

[31:12] make that deadline easily. The next item

[31:16] is the semianual report to the state man

[31:18] state money management council. Um it's

[31:22] a report of our bank balance basically

[31:25] at June 30th and it's not due until July

[31:28] 31st.

[31:29] Um on the second page, the first

[31:32] highlighted is our CCR report that will

[31:35] be going out to our residents by well a

[31:39] link to that report will go out to our

[31:41] residents on 71 or in our next billing

[31:45] and then anybody that wants to call and

[31:47] get a copy. They can get a paper copy.

[31:49] It will be posted to our website also.

[31:52] Um and then we send a letter to the

[31:54] state confirming that it was to our

[31:56] residents by July 31st.

[31:58] Um the water conservation plan

[32:01] um we've been working on it. Tai's been

[32:04] working on the water conservation plan

[32:06] and so that's I don't know when it's due

[32:09] at the end of the year I believe. Um and

[32:12] we'll be happy to report the ethical

[32:14] behavior pledges I believe are all

[32:17] turned in now.

[32:19] >> Just year three

[32:21] with them after.

[32:22] >> Great. Um,

[32:27] » yeah, that's all I have to report.

[32:29] >> Thank you.

[32:29] >> Unless you have any questions.

[32:31] >> Looks good.

[32:32] >> Good. Thank you.

[32:33] >> Thank you.

[32:34] >> Okay, Andrew.

[32:36] >> Yes. Uh,

[32:38] just go over the human resources report.

[32:42] Um, as Clint said, we're fully staffed.

[32:45] Um, at the end of last month, we

[32:47] completed a trench shoring uh training.

[32:50] We did, we went through some of our

[32:53] uh training in here and then we went

[32:56] over to the shop and we showed everybody

[33:01] how to use the trench box just to make

[33:03] sure they're up to speed with it again.

[33:06] Um we did arbinger training this week

[33:08] with some of our new employees. Uh Mandy

[33:11] and Katie were able to attend CPR and

[33:13] first aid this week. Upcoming we've got

[33:16] uh work order training that Lis is going

[33:19] to be putting on for all the operators.

[33:22] um on how to track our work that are

[33:27] that's on Magna Water assets rather than

[33:31] at an actual address. And so she'll be

[33:34] doing that next week. Uh we were going

[33:36] to Thatcher Chemical to do some training

[33:41] on chlorine next week. Uh Alice is able

[33:43] to schedule that for us with his

[33:45] contacts there. So we're excited to go

[33:47] do that.

[33:49] We are sending some employees to trench

[33:51] shoring and then at the end of the month

[33:54] we have a company coming in to do an

[33:56] on-site fine space training for our uh

[34:00] monthly safety meeting and then next

[34:01] month will be our on-site uh cyber

[34:04] security training. This month we're

[34:05] focusing on heat related illnesses. Um

[34:09] talking about what challenges arise as

[34:13] the temperatures go up and how to

[34:15] protect protect themselves out there in

[34:17] the heat. Um we're all scheduled to go

[34:21] with the fourth for the 4th of July. Uh

[34:24] Ty Quinn's going to attend and Gavin

[34:26] Henshaw and I believe we've got a couple

[34:29] other people that are interested in

[34:31] going.

[34:33] We'll be there with bells on. Excited to

[34:36] participate. It's always a good time

[34:37] there. Um we're starting to talk about

[34:40] end of summer party. Uh we're looking at

[34:44] possible dates if the board supportive

[34:46] of September 17th or September 24th.

[34:50] Um

[34:52] just do a lunchon and get together here

[34:55] with the employees.

[34:59] >> 17th or the 24th?

[35:00] >> Yes. whichever ones works best for

[35:02] >> what day is that?

[35:03] >> Those are both Thursdays. It's the

[35:05] Thursday following the board meeting and

[35:07] then the Thursday following.

[35:12] » Um we're starting to work on uh

[35:17] third quarter goals with the employees.

[35:20] Uh we'll be meeting with everybody next

[35:23] week and going over where people are

[35:26] with that. Then last uh just a fleet

[35:29] update. Been working with um Jerry

[35:32] Siner, uh Ken Gar Ford, and uh trying to

[35:37] work with LHM Chevy to get some numbers

[35:41] together to see where we're at with our

[35:44] current fleet. Um

[35:47] I I think we're in a positive place

[35:50] right now with with the fleet. I think I

[35:54] have some numbers that would be worth

[35:56] bringing back to the board next month if

[35:58] that's what they'd like to see.

[35:59] >> Okay. Will you do me a favor? Will you

[36:01] give me mileage on the vehicles? Yes.

[36:03] >> From the highest to the lowest, please.

[36:06] >> Absolutely. I can give that for you

[36:09] today.

[36:09] >> Okay.

[36:11] >> Is and that's it for me unless there's

[36:12] any other questions.

[36:15] >> No questions. Thank you. Appreciate it.

[36:17] >> Thank you.

[36:18] >> Okay. Let's move on to water and sewer

[36:20] availability. Possibly motion to

[36:23] approve.

[36:25] Thanks board chair. Uh what we have here

[36:27] is it's called Omega Satellite. It's a

[36:30] building located at 7730 West

[36:34] SR201

[36:36] that's next to the Morgan

[36:40] out there to the west of it.

[36:43] Um and what they're intending is a

[36:46] couple of White House buildings set

[36:48] there side by side. We've ran

[36:53] uh we've gone through our process

[36:55] created the the wheel serve letter.

[36:57] There's drinking water in the front of

[37:00] road as well as sewer. There's a dry

[37:03] secondary line

[37:05] on our model analysis

[37:08] and fire

[37:10] and we recommend proving providing water

[37:18] questions.

[37:19] I had a quick not on this particular one

[37:23] but in that area u

[37:26] the tree recycling place

[37:28] >> was using drinking water.

[37:31] Have we talked to them now about using

[37:34] reuse water?

[37:35] >> We that line along there is still dry.

[37:39] Does not tie in. So we haven't had a

[37:42] discussion on that.

[37:44] >> They they said they were held to that

[37:47] >> but they might be interested if we

[37:50] approached them but what do you think it

[37:53] would cost to

[37:54] >> So I mean we obviously the reuse comes

[37:57] from

[37:58] >> Yeah. Morgan asphalt used in culinary

[38:00] too. Yeah, the reuse comes from the

[38:02] treatment plant and it crosses 2011 and

[38:05] our first connection isn't until the to

[38:06] FedEx,

[38:07] >> right? So, SR201 would be, you know,

[38:13] we haven't looked at tying any of those

[38:15] into that HDB line just because it's

[38:20] transmission. So there are still some,

[38:23] you know, we need to get across 2011 in

[38:27] a different location and and tying in

[38:31] either at 72.

[38:35] I

[38:35] >> I just took some stuff down there and I

[38:37] was asking, gosh, you're using a lot of

[38:39] water. He said, well, we have to use

[38:41] drinking water, but now that we're on

[38:43] reuse water, that's as close to drinking

[38:45] water as you'll get.

[38:46] >> Yeah. And especially for

[38:49] >> for their situations, there's no

[38:50] bacteria or anything.

[38:53] >> I mean,

[38:55] >> from here over to 70, we have the maj

[38:57] most of our line on 72 that developers

[39:01] have put in

[39:03] quite a bit of dry line on 2100 as well.

[39:07] So, but

[39:10] we don't have a current plan to fill

[39:12] those gaps.

[39:13] >> Okay. Okay. Thank you.

[39:16] Need a motion?

[39:18] >> Yes,

[39:21] Mr. Chairman, I'd like to make a motion

[39:22] to provide Omega satellite water

[39:27] Omega satellite on 7730 West 2011

[39:34] uh water and sewer availability.

[39:38] >> I'll second that.

[39:39] >> Motion to second. All in favor? Hi.

[39:40] >> Hi.

[39:48] » Okay. Project award and agreement

[39:50] discussion, possibly motion approving

[39:52] the following projects

[39:54] forever. Okay. So, first up here we have

[39:58] the WF operations building.

[40:01] Um, as you see in the letter, we we had

[40:04] six different contractors provide bids

[40:06] for this. Um,

[40:09] The current low bidder was construction

[40:13] at $2,63,999

[40:17] 42

[40:18] B and Collins went through their bid

[40:21] packet and all their references

[40:24] and they met all the requirements

[40:28] and that is the current recommendation

[40:32] for awarding the project to Pulsa.

[40:36] there's additional discussion you'd like

[40:38] to have.

[40:41] » I know we had some challenges with them.

[40:44] They're the ones that built this

[40:45] building. Um

[40:48] so we did have them review the second

[40:50] bidder if the board didn't feel

[40:52] comfortable. Um and the second bidder

[40:55] also was qual deemed qualified and uh so

[41:00] there is

[41:04] that option. It becomes a difficult I

[41:09] mean we have to that has to have

[41:11] justification obviously if we were to

[41:13] not go with the low bid.

[41:15] >> So Pson

[41:18] they're the ones that do the firehouses

[41:19] too right?

[41:20] >> Yep.

[41:22] So we could also

[41:23] >> I know we had a lot of problems with

[41:24] them here.

[41:27] >> So if the board chose um we do have

[41:32] experience with them. It's based on our

[41:34] own experience and history in here in

[41:37] the district. Um, so, uh, the board

[41:41] could choose to award, uh, to Valley

[41:45] Design and Construction, but obviously

[41:47] we would have to make a determination

[41:49] that it was due to inadequate

[41:53] performance on past project here at the

[41:57] district and legal counsel can uh,

[42:00] verify anything I missed on that.

[42:02] >> That's accurate.

[42:03] >> Okay.

[42:04] >> Who'll be tracking them as far as

[42:06] project So we have Bowman and Collins as

[42:10] our

[42:11] >> and are they familiar with their work

[42:13] ethic?

[42:14] >> Have you worked with Paul?

[42:19] No. But Bon calls does have a good I

[42:22] mean good system through their CM and

[42:25] their inspectors. Um you know we've done

[42:28] the reuse project and influent project

[42:30] with great success with them as part of

[42:32] our team.

[42:35] That's the only thing I think is we need

[42:36] to check them very closely.

[42:40] >> Okay, Mr. Chairman.

[42:42] >> So,

[42:48] never mind. I was going to say, should

[42:50] we just pull all the bids and hold them

[42:51] for a month and then rebid it?

[42:53] >> We We can do that. Um, that is an option

[42:56] if you want to.

[42:57] >> Um,

[42:58] >> we could pull them and then wait 30 days

[43:01] and rebid it.

[43:03] We could if the board would like to go

[43:05] that direction. Um,

[43:08] as you can see, we have a range of

[43:11] bidding there.

[43:12] >> No, you know what? We're okay. We'll

[43:13] just make sure Collins and I mean Bones

[43:15] and Collins, they make sure they crack

[43:17] the whip on these guys because I know

[43:19] how this building went.

[43:20] >> Yeah, there was

[43:24] challenges. This building down at the

[43:28] obviously we know that there's some

[43:30] unique features to this building.

[43:32] um with the wood timber frame.

[43:34] >> Yeah.

[43:34] >> And that is what a lot of the challenge

[43:37] came down to is the structural

[43:42] requirements

[43:44] during the building review

[43:48] led to uh some disagreement on cost and

[43:52] then we had some

[43:55] quality control issues. So,

[44:00] we think with the building design down

[44:03] at the wastewater plant, it will be a

[44:06] much more traditional

[44:09] >> simpler,

[44:10] >> okay,

[44:11] >> uh, building to construct.

[44:13] Um, and Bonan Collins has designed a lot

[44:17] of these facilities,

[44:19] >> okay,

[44:19] >> in our area with Salt Lake County. So,

[44:22] we don't anticipate any of those issues

[44:25] through uh the building department,

[44:27] >> but but we all know that it doesn't take

[44:30] long to eat up that difference,

[44:32] >> right,

[44:32] >> in

[44:33] >> Yeah. Consultation.

[44:35] >> That's right.

[44:36] >> So, it's going to be real important.

[44:40] >> Mr. Mr. Chairman, I'd like to uh make a

[44:42] motion to award uh for the Magna WRF

[44:47] operations building to Pulson

[44:49] Construction in the amount of

[44:51] 2,63,99942.

[44:57] » Second motion, a second. All in favor?

[45:00] >> I.

[45:01] >> Any discussion? We're all good.

[45:05] >> Okay, Trevor.

[45:07] Next on there is a task order for Bowman

[45:10] Collins to perform construction

[45:11] management services on the operations

[45:14] building. Um you know as I mentioned

[45:17] Bowman Collins is designed in MCM on

[45:20] multiple projects currently the

[45:22] influence project they've done a great

[45:24] job. Um

[45:27] they think a lot through what what's

[45:30] required in the scope. They'll do a lot

[45:32] of the special inspections on this

[45:36] and I work through this with them and

[45:41] believe that it's a fair reasonable

[45:43] price for those services and recommend

[45:45] approval.

[45:49] Any questions or anything else?

[45:53] >> Pretty straightforward.

[46:00] Uh, Mr. Chairman, I'd like to make a

[46:02] motion then to approve Bona Collins

[46:06] and Associates task order for

[46:08] construction management services for the

[46:11] WRF operations building project in the

[46:14] amount uh not to exceed $195,280.

[46:19] >> I'll second that.

[46:20] >> Motion second. All in favor? I

[46:22] >> Okay, Trevor. Next one's yours. Okay,

[46:25] next one is in line with the same

[46:27] project from IGS

[46:30] um for material testing and that would

[46:32] be mainly our concrete cylinders um

[46:35] testing of asphalt compaction testing.

[46:38] This is to ensure that the contractors

[46:41] doing the work that they're required to.

[46:45] Um, IGS also performed the material

[46:48] testing for our influence project

[46:51] and has been successful and

[46:56] I worked with them to create the scope

[46:58] of the work required and recommend

[47:02] approving that.

[47:04] >> Yeah. Okay. Uh, Mr. Chair like make a

[47:07] motion to approve IGES task order for

[47:10] material testing for the WRF operations

[47:13] building project in the amount not to

[47:15] exceed $13,650.

[47:18] >> I'll second that.

[47:19] >> A motion to second in favor.

[47:21] >> I

[47:23] Okay, Trevor.

[47:26] » Long aaited I feel. Um this is the

[47:31] for the fiber relocation or westside

[47:33] collection project 1B. Um, Stantech

[47:36] worked tirelessly um to get plans

[47:40] together, get it to the contractor Bush,

[47:43] who then in turn has gone out and gotten

[47:46] some cost from different subs, one being

[47:49] the fiber

[47:51] relocation company as well as their

[47:55] directional driller mix.

[47:58] And

[48:00] what we have here is that total change

[48:03] order cost.

[48:05] Um it is high I will admit. Um Santech

[48:10] has done a lot of background work um

[48:15] to you know in discussions with Nick Spy

[48:19] Bush to try and get this as as low as we

[48:22] can. But when you go through it it

[48:25] really comes down to this this unknown

[48:29] that threw a wrench in the in the

[48:31] project. It pulled nicks off. There's

[48:33] some costs associated with that. Um, for

[48:37] safety, we had to, you know, fill in the the

[48:43] pits that they had for the B, which came

[48:46] with some cost and there's some remob

[48:49] remobilization cost there as well. Um,

[48:55] you know, it's a it's a hard one, but

[48:57] it's a very important project for us.

[49:00] Once we get this across the freeway and

[49:02] we tie in this takes all of our flow

[49:06] from the west side and puts it into that

[49:08] new pipeline that goes up 8,021.

[49:12] Um, you know, this this project gives us

[49:15] the capacity that we need as well as

[49:18] replaces that aging infrastructure that

[49:21] that's there.

[49:24] >> That's detrimental.

[49:26] I'll take pressure off. Any any

[49:29] questions or anything else to discuss on

[49:32] this?

[49:35] » U Mr. Chairman like to

[49:39] propose a propo approval for BD Bush

[49:43] change order number one for the westside

[49:45] collection project 1B increasing the

[49:48] contract to by 1,21,7621

[49:56] for the fiber relocation.

[49:58] >> I'll second that.

[50:01] >> All in favor? I I

[50:06] Okay. Uh discussion possibly motion to

[50:10] approve the following administration

[50:12] items.

[50:15] >> Le

[50:17] apologize chair. We don't need a motion

[50:20] on this.

[50:21] >> Okay.

[50:22] >> Agenda item. I should have put it down

[50:23] where no motion was made. Um just for

[50:27] information only. Um it's I just wanted

[50:30] to let the board know who came in to

[50:32] file declaration of candidacies. They

[50:34] were all verified with Salt Lake County

[50:36] as qualified candidates. Um, we have,

[50:41] excuse me, we have, uh, Jeff White,

[50:44] yourself, um,

[50:47] mix, sorry. And then Doyle Jenkins and,

[50:53] um,

[50:56] what is her name? Some

[50:57] >> Stephanie Whmer. Thank you. And

[51:02] >> Sean Wall.

[51:02] Goodness. I don't you guys

[51:04] already know I don't need to tell you

[51:06] >> and Mark Manser so there was there's a

[51:09] total of six and so we'll be having the

[51:12] election November 2nd

[51:16] >> when's the withdraw if you decide you

[51:18] want

[51:18] >> it's August 30th

[51:20] is the last

[51:21] >> that's when you can that's when you can

[51:22] pull out

[51:23] >> yeah withdraw your name from being on

[51:26] the ballot

[51:28] >> and then the write in uh deadline so to

[51:32] make declaration of candidates see to be

[51:34] a write in is the same day or the 31st

[51:39] >> of August.

[51:40] >> Okay.

[51:43] >> Thank you.

[51:44] >> Okay. Our next one's going to be done by

[51:45] Clinton Nathan. A discussion on the no

[51:48] fault policy.

[51:50] >> All right. Thank you, Mr. Chairman. Um

[51:54] what you have before you Nathan, we had

[51:58] kind of a guideline before. it wasn't

[52:01] really a full formal policy that the

[52:03] board has seen. And so Nathan has taken

[52:07] that and put it into

[52:10] a form that could be incorporated and

[52:13] adopted into a policy if the board so

[52:16] chooses. Um I think uh Nathan's done a

[52:21] great job on this. I think there are

[52:24] some points of discussion.

[52:27] Um and if Nathan wouldn't you would mind

[52:31] leading us through this discussion that

[52:33] would be helpful.

[52:34] >> Yeah. So I think that some of the

[52:37] questions and you'll see in the draft

[52:39] that there are several comments that I

[52:41] have off to the margin. You know the

[52:42] first of which is I a lot of these

[52:44] resolutions we make effective

[52:46] immediately. But I think if you were to

[52:47] adopt this one, and this one I did last

[52:49] month thinking it would be on that board

[52:51] agenda, but my suggestion is is that you

[52:53] would give the staff some time to create

[52:55] some forms and policies which the policy

[52:57] would would authorize them to do. Um if

[53:00] you go on to exhibit one. So we would

[53:04] make this a new um section essentially

[53:09] but and I think this is reserved but one

[53:12] of the key questions about this is if

[53:15] it's going to be a no fault policy what

[53:17] that means is that it's these are

[53:19] situations in which our someone's

[53:21] damaged and it's not their fault it's

[53:23] not our fault that's involving the

[53:26] infrastructure in some way or another.

[53:29] And so, um, that's the point of the

[53:32] first comment, but, um, one of, if you

[53:36] can go down to 72.5,

[53:39] Clint,

[53:39] >> y

[53:41] >> uh, two of the big kind of, and these

[53:43] are policy questions. This isn't, this

[53:45] isn't legal. This is just where the

[53:47] board wants to set the needle, is I do

[53:49] think that we need to define, you know,

[53:51] when someone would be eligible to

[53:53] request funding assistance from the

[53:54] board. And I've used the term

[53:56] extenduating circumstances and I've

[53:58] defined it as it's listed there. And I

[54:02] will admit this is a pretty narrow

[54:04] definition, but my understanding is this

[54:06] would be an application that would be

[54:09] tended to be narrowly applied because

[54:11] the risk is that if it's for instance,

[54:13] if we're paying for things that are the district's fault, we

[54:17] already have policies that deal with

[54:18] that. If we're paying for things that

[54:21] are the customer's fault, then that's

[54:23] just going to open the floodgates for

[54:25] people to come in every time their

[54:27] insurance claim denies something or

[54:28] there's a problem, they're going to be

[54:30] coming to the district to pay for it.

[54:31] So, I've tried to define it in a way

[54:33] that it's basically it's just a freak

[54:35] thing that happens. You know, there is a

[54:38] language there that it's not the direct

[54:40] result of a natural disaster or act of

[54:42] God. So, for instance, if there's an

[54:44] earthquake, no one's not coming here

[54:45] saying fix our stuff. Um, the other

[54:49] thing, and this is a concept that's

[54:50] woven throughout it, is

[54:54] I think my recommendation is that you

[54:56] have some sort of a maximum payment,

[54:59] uh, that then it would be a lifetime and

[55:00] that they someone could receive up to

[55:02] $10,000. And that's just a number I

[55:04] pulled out of a hat. You guys could set

[55:05] it wherever you want. Um, and that was

[55:08] really just intended for discussion

[55:10] purposes. But

[55:12] I I'm thinking of kind of leak

[55:13] forgiveness policies. A lot of the

[55:15] districts that I represent will say,

[55:16] "Hey, you can get like a one-time leak

[55:19] if you've if you're eligible, like

[55:21] you're in good standing, like you you're

[55:23] on whatever software we have to monitor

[55:25] water use." So, I kind of ported that

[55:27] concept over here that you you're

[55:29] eligible for a lifetime of up to

[55:32] $10,000. Now, you could set that number

[55:35] higher. I this really kind of a

[55:37] placeholder. Um

[55:40] the other thing is is I have made this

[55:43] kind of discretionary under section 7.3.

[55:47] My thought is is that this is something

[55:49] that you guys are going to do depending

[55:51] on available money and and so it's it's

[55:54] not something that and and I have a

[55:56] comment on that later on that you would

[55:57] necessarily budget for every year. My

[56:00] concern with that is if you are

[56:01] budgeting for it every year, you're just

[56:02] kind of asking for people to come in.

[56:04] This is just intended to be kind of a

[56:06] >> a limited relief valve. And so I've made

[56:09] this

[56:10] >> uh a may that you will do in your own

[56:12] discretion. It's not mandatory. No one's

[56:14] entitled to it. If you go down to 7.4,

[56:18] I do think that we have to have some um

[56:20] requirement about when they submit an

[56:22] application to the district because I

[56:25] don't want people coming back three,

[56:27] four, five years later um when the

[56:29] documentation's gone. So my proposal is

[56:32] they would have to submit the

[56:34] application to Leile within 90 days and

[56:37] they'd have to show that um their

[56:41] insurance has inspected the claim and

[56:42] determined the claim to be the direct

[56:44] result of extenduating circumstances.

[56:47] Um and uh some other documentation.

[56:52] I I had a question. I wondered if

[56:55] there's any reason on 7.6.3 6.3

[56:58] if if you could put in that it needs to

[57:00] be

[57:02] we need to be notified like within a

[57:04] week and no later than 30 days.

[57:08] >> Yeah, sure. We could

[57:09] >> because sometimes

[57:11] all the evidence is gone in 30 days,

[57:13] right?

[57:14] >> Yeah.

[57:15] >> I wonder if we could make that the next

[57:18] week.

[57:18] >> I just threw that in there. So I I we

[57:21] could just say I would say no later than

[57:24] a week or seven days. Okay. Um, and so

[57:28] I'll just make that change. So, um, kind

[57:30] of getting back up to

[57:34] uh 7.5,

[57:37] I put that the money would come out of

[57:38] the operating budget. This is maybe more

[57:40] of a discussion for the aisle, but

[57:41] again, my my thought is is if you guys

[57:43] create a separate fund for this,

[57:46] >> you're you're kind of inviting people to

[57:48] come in as a

[57:49] >> instead of okay, this year we happen to

[57:51] have money. Yeah.

[57:52] >> Yeah.

[57:52] >> So, that was my thought thinking there.

[57:54] Um and then when I finish presenting

[57:57] Leile and others can can chime in. Um

[58:01] again like 762 is is it has to be the

[58:04] direct result of extenduating

[58:06] circumstances. Again that's not acts of

[58:08] God, not stuff that's their fault.

[58:10] Something is beyond everyone's

[58:11] reasonable control. Uh we talked about

[58:13] the hard deadline that Jeff had asked

[58:15] about.

[58:17] And then 7.10, 10. This is the kind of

[58:19] the the harder language on it's a

[58:21] lifetime benefit that the maximum

[58:23] payment i.e. $10,000. That's the amount

[58:26] that the board may approve and and the

[58:28] total amount that the owner may receive

[58:29] under multiple applications. So, if they

[58:31] come in and they get 10 grand the first

[58:32] time, that's it. If they come in the

[58:35] first time, they get 2500. They come in

[58:36] the next time and they get the the rest,

[58:39] you know, that's that's all they get. Um

[58:42] and then the the last question if I'll

[58:45] just go down to 7.14 at the end. Um this

[58:50] was a section that I think was included

[58:52] in initial outline that I have some

[58:54] concerns about and that is is that this

[58:56] was going to set set aside a separate

[58:58] water utility enterprise extenduating

[59:01] circumstances account. And in some ways,

[59:04] I know that makes it easier to budget if

[59:05] you get these types of requests, but it

[59:07] also, as I said before, could

[59:09] potentially encourage these types of

[59:10] requests. And I'm not sure that's what

[59:12] you want to do. So, that was, you know,

[59:14] kind of the nature there is, do you

[59:16] really want to have a separate line item

[59:18] or do you just want to have this that we

[59:20] pay out of the operating account when we

[59:21] have available funds on a case-by case

[59:23] basis?

[59:24] >> Yeah, I wouldn't mind

[59:27] just taking that section out.

[59:30] >> Yeah.

[59:33] What do you

[59:34] >> So this is again this is

[59:36] >> okay taking that out?

[59:37] >> Yeah. So this is a pure policy call. We

[59:39] don't have to have this policy if you

[59:40] don't want it, you know, in terms of

[59:43] when we the deadlines, the information

[59:45] required, the limits, those are all

[59:47] purely the council's call.

[59:49] >> I I think Thanks, Nathan. I think that

[59:52] what we've seen is there's just been

[59:54] more pressure on the districts to have

[59:59] something like this. I agree not all of

[1:00:02] them uh especially the smaller ones but

[1:00:05] we know that a lot of the larger ones

[1:00:07] are going in this direction um because

[1:00:11] they have experienced

[1:00:14] this dilemma

[1:00:16] and so

[1:00:19] we wanted to get this to you as a draft.

[1:00:22] We weren't expecting any motion

[1:00:25] uh today or or any approval. uh any

[1:00:29] feedback in the meantime that you have

[1:00:31] on the amount. The only thing that I

[1:00:33] struggle with to be honest with you

[1:00:36] is the no fault. You know, it's like

[1:00:39] it's not their fault, but yet it's our

[1:00:42] sewer line or our water line and it's no

[1:00:44] it's not our fault. But when you take

[1:00:46] when you think about it, it really is

[1:00:49] our fault because the sewer belongs to

[1:00:51] us, the water belongs to us. So, I I

[1:00:54] just struggle with that no fault because

[1:00:57] I I I get it for the district. I I get

[1:01:00] the whole situation, but at the end of

[1:01:03] the day, it's just like it isn't their

[1:01:04] fault that their house got flooded

[1:01:06] because our pipe broke, but yet we're

[1:01:09] saying we'll give you $10,000 and

[1:01:13] you guys go on your way. I mean, and and

[1:01:15] I'm looking at like if it happened to

[1:01:17] me, okay, if it happened to me or you or you guys or whatever, I mean, are

[1:01:22] you okay with that? I mean, that's just

[1:01:25] a tough one to swallow.

[1:01:27] >> Yeah.

[1:01:28] >> But we have procedures that cover

[1:01:29] situations in which it is the district's

[1:01:31] fault. And so that so we already have

[1:01:34] that.

[1:01:35] >> Um,

[1:01:35] >> but you know how it all works. It's like let's litigate it. You know,

[1:01:39] let's

[1:01:40] >> my concern with the 10,000. It feels a

[1:01:44] little bit low just based on the

[1:01:49] past experience with what the the costs

[1:01:52] end up being. And it's only 5,000 more

[1:01:56] than some of the standard policies you

[1:01:58] can get. So if the goal is to be able to

[1:02:04] truly

[1:02:06] address these,

[1:02:08] I think the board needs more

[1:02:10] flexibility, but that's that also at the

[1:02:13] same time does open up more risk for

[1:02:16] financial.

[1:02:18] >> Yeah, I understand that too.

[1:02:19] >> And so that's why if it was 10,000, I

[1:02:23] think not having a separate account

[1:02:25] makes sense. I think one of the

[1:02:28] challenges is is once you get into those

[1:02:31] higher ranges, it's tough to pull that.

[1:02:33] >> No, I I understand. I understand that

[1:02:36] too. I'm just

[1:02:37] >> what a lot of places are go calling it

[1:02:39] is is more of a emergency fund. It's not

[1:02:43] it might be a reserve.

[1:02:46] >> Yeah.

[1:02:46] >> Uh there's some strategic stabilization

[1:02:50] fund is what we've heard. Revenue

[1:02:53] stabilization. There's other things that

[1:02:56] we could determine that that could

[1:02:58] potentially be used for, but that's why

[1:03:02] that idea came is if you're actually

[1:03:05] talking about more than 10,000. So

[1:03:07] that's

[1:03:08] >> I like the document we read this morning

[1:03:10] that says it's got to meet these

[1:03:11] requirements.

[1:03:12] >> Yeah.

[1:03:13] >> So the more communication we put in

[1:03:15] there, I think that would give us some a

[1:03:18] little bit of room to evaluate. And I understand too, you know, you you

[1:03:23] put it out there and everybody's going

[1:03:24] to come running, right? So, you have to

[1:03:26] be careful that way. But I I don't know.

[1:03:28] I just

[1:03:29] >> But they have to go through the event. I

[1:03:31] mean,

[1:03:31] >> Right.

[1:03:31] >> Yeah. I mean, we don't have sewer

[1:03:35] backups

[1:03:36] that often relatively.

[1:03:39] >> Okay.

[1:03:39] >> And and that's one of the questions I

[1:03:41] have with, you know, why we're having

[1:03:44] this as a discussion, not an action

[1:03:45] item, is

[1:03:47] >> how we define, and this is what you're

[1:03:48] getting at, Mr. chair is, you know, the

[1:03:50] way that extenduating circumstances is

[1:03:52] defined now, it's going to be pretty

[1:03:54] narrow. Um, if we could try to broaden

[1:03:58] that up. I think if we're

[1:04:02] >> No, if if these guys are okay with it,

[1:04:04] I'm okay with it. I mean,

[1:04:05] >> looks good.

[1:04:06] >> It looks good. little tweaking here and

[1:04:08] there, but it looks good.

[1:04:10] >> And what we could do when we if we bring

[1:04:12] it back is we could have an actual

[1:04:15] application form

[1:04:17] >> that we could have approved uh as part

[1:04:20] of it.

[1:04:21] >> We didn't want to I didn't want to

[1:04:22] prepare that until we got the board's

[1:04:24] feedback on this.

[1:04:26] >> And and to Clint's point, I I just

[1:04:28] picked $10,000 out of hat. I just

[1:04:30] >> Oh, sure.

[1:04:31] >> We could set it where But I do agree

[1:04:32] with Clint. If it's going to be higher

[1:04:34] than that, then you probably do want to

[1:04:35] prepare for it. And we probably need to

[1:04:38] include like a first come first serve um

[1:04:42] basis. That is one of the benefits of

[1:04:44] having an account is it's like all

[1:04:45] right, we're going to set aside x amount

[1:04:47] each year for this for this program and we're just going to and it's first

[1:04:52] come first serve. Um, one thing to keep

[1:04:56] in mind, and I think part of the reason

[1:04:57] why the bigger districts, this is

[1:04:59] increasing, is because, um, one, the

[1:05:02] insurance industry is changing, and I

[1:05:04] mean, the insurance industry has always

[1:05:05] been stingy when it comes to paying

[1:05:07] things out. Now, it's getting a lot

[1:05:08] harder. Um, the other thing is a lot of

[1:05:12] the federal funds and grant programs

[1:05:14] that have been available just for

[1:05:16] everybody to maintain stuff and do

[1:05:18] things are going away. There's less

[1:05:19] state funing.

[1:05:23] federal funding and so a lot of those

[1:05:25] requests are trickling down and chair

[1:05:28] you know that as mayor and Magna City is

[1:05:30] seeing all sorts of extra requests that

[1:05:32] it probably historically hasn't seen

[1:05:34] either. So, right,

[1:05:35] >> this is just I think another result of

[1:05:38] that decrease in public funding or at

[1:05:41] the state federal level,

[1:05:42] >> right, just trickling down.

[1:05:45] >> I I'm wondering if we need to have

[1:05:46] something in there, Nathan, that if

[1:05:49] there's uh like if we go in and do an

[1:05:51] inspection, there's a little problem and

[1:05:53] they disregard that. I think at that

[1:05:57] point when they disregard,

[1:06:00] you know, what you tell them they need

[1:06:02] to do or whatever

[1:06:03] >> that disqualifies them.

[1:06:05] >> I think it could. Yeah, absolutely.

[1:06:06] >> I think that needs to be in that

[1:06:08] application or the,

[1:06:10] >> you know, form that fill out.

[1:06:13] >> I or or Yeah, cuz because then it's

[1:06:18] pretty hard to help somebody that just

[1:06:20] totally disregards what you ask them to

[1:06:22] do or what

[1:06:23] >> we have some language already in 7.73

[1:06:26] that gets to that.

[1:06:28] >> But we could make it a little more

[1:06:29] defined that, you know, the property

[1:06:30] owner is at fault or is otherwise

[1:06:33] negligible. we could, you know, add some

[1:06:36] language to that or disregarded

[1:06:38] um recommendations or direction from the district.

[1:06:45] >> 7.74

[1:06:46] >> uh 7.73.

[1:06:51] That's what that criteria is trying to

[1:06:52] get at. Um that they're at fault. So,

[1:06:55] but we could we could specify what it

[1:06:57] means to be

[1:06:58] >> uh and maybe that to to the chairman's

[1:07:01] point, maybe we could specify what it

[1:07:03] means to be at fault.

[1:07:04] >> You know, at fault is is that you

[1:07:06] knowingly took action and did something

[1:07:08] dumb. You disregarded our

[1:07:10] recommendation. And so, you know, that

[1:07:13] we could maybe tease that out a little

[1:07:15] bit. Um,

[1:07:18] >> it looks pretty good.

[1:07:22] Is there a section in there? I I don't

[1:07:25] know how everyone else feels, but I

[1:07:28] would definitely want to come to the

[1:07:29] board on any application.

[1:07:32] >> Well, it all has to come before the

[1:07:33] board. Yeah, it all has to come before

[1:07:34] the board.

[1:07:36] >> Board has it go to you. You'd make a

[1:07:38] review and you'd make a recommendation

[1:07:40] and the board would make the final call.

[1:07:42] >> Yeah.

[1:07:42] >> Okay. Do we want to make a motion on

[1:07:44] this?

[1:07:45] >> No.

[1:07:46] >> Another thought um the or whatever. It

[1:07:49] could be two parts. I mean, it could be

[1:07:51] a part for cleanup. It could be a part

[1:07:55] for

[1:07:56] >> That's a good point. Yeah, good point.

[1:07:58] >> You can make mix that up any way you'd

[1:08:00] like.

[1:08:00] >> I think that's a good point.

[1:08:03] >> Just something to think about.

[1:08:06] >> Okay, Trevor, we're going to move it

[1:08:07] over to you again.

[1:08:10] >> Okay.

[1:08:15] So, as part of our WF

[1:08:19] building, Rocky Mountain Power. We need

[1:08:21] a new service meter there and some power

[1:08:25] ran to the building. And in order to do

[1:08:28] that, they're requesting an easement

[1:08:31] from us, which is pretty typical. If the

[1:08:34] service goes across private property,

[1:08:36] they request an easement to get that

[1:08:37] there. Um, and so yeah, Clint's got that

[1:08:42] up. That's the image of the easement. Um

[1:08:45] they have power along the

[1:08:49] >> Oh wow.

[1:08:49] >> Our contractor will do the majority of

[1:08:51] the work and they'll pull the wire

[1:08:53] through over there to the meter of the

[1:08:56] building. There's the need for the um

[1:08:59] they send over a pretty basic uh ement.

[1:09:03] Um

[1:09:05] Nathan

[1:09:07] and myself have gone through that. has

[1:09:10] made some recommendations on changes to

[1:09:12] that easement and that's what's in here.

[1:09:15] That's been resubmitted back to them

[1:09:18] um for them to review. Uh

[1:09:23] I don't know what their policies are on

[1:09:25] adjustments to their easements.

[1:09:28] >> Yeah, I don't

[1:09:28] >> we're in a weird situation where we need

[1:09:31] power, they need an easement. And so it

[1:09:34] we're, you know, we've asked for all

[1:09:36] these things. Nathan's pointed out very

[1:09:38] specifically, you know, which ones he

[1:09:40] feels like we we would really want,

[1:09:43] which ones are more asks. And so we're

[1:09:45] in that negotiation. So I mean, what I'm

[1:09:48] showing you here is the ideal situation.

[1:09:50] Um, but what ultimately comes back, I

[1:09:53] think, could be a little different.

[1:09:56] Anything else? Yeah, like if if

[1:10:00] in my if we were issuing this under a

[1:10:02] normal circumstance, I'd have many many

[1:10:04] more edits than than what I proposed.

[1:10:07] And so it but at the end of the day, I'm

[1:10:12] Rocky Mountain Power has its policies

[1:10:13] and we need to see what they're willing

[1:10:15] to accept. My main thing is I just want

[1:10:17] to make a lot of that is just standard

[1:10:19] boilerplate that that you include when

[1:10:21] you're granting someone an easement on

[1:10:23] your property. You know, for instance,

[1:10:24] like, hey, you're you're getting this

[1:10:26] asis. we're not making certain

[1:10:27] warranties. Two, we still have the

[1:10:30] ability to use our property if you have

[1:10:31] an easement in it as long as we're not

[1:10:33] interfering with it. So, a lot of it is,

[1:10:36] I think, relatively non-controversial.

[1:10:38] Like, for instance, I haven't included

[1:10:39] the an indemnity clause, which I

[1:10:41] typically use.

[1:10:43] >> Um, and I think

[1:10:45] >> I understand where they're coming from,

[1:10:46] too. They just have a very simple

[1:10:48] easement. And my concern with that is

[1:10:50] it's just there's always a potential for

[1:10:52] the more simplistic it is, the more

[1:10:54] likely there is to be a dispute at some

[1:10:55] point. But we'll just need to see what

[1:10:57] they say. I mean, we can make something

[1:10:59] work.

[1:11:00] >> So, so with the basically what I'm

[1:11:04] asking for is just acknowledge that we

[1:11:07] would provide the easement. Nathan and

[1:11:10] myself work through what the final

[1:11:14] easement language is. So, is is the

[1:11:16] request for the motion, Trevor, that the board tenatively approve the

[1:11:19] easement subject to final finalization

[1:11:22] of the negotiations with Rocky Mountain

[1:11:24] Power subject to Clint approving the

[1:11:26] final document? I mean, we can bring it

[1:11:28] back if you want, but it this is this is

[1:11:31] the biggest it's going to be. I I doubt

[1:11:33] we're going to get something too much

[1:11:34] different back. We want to hold them up

[1:11:35] either. Does it take like six months to

[1:11:37] get

[1:11:38] >> Yeah, they did say it's going to take a

[1:11:41] while to get through legal and you know,

[1:11:43] it is part of the project.

[1:11:45] Well, that's fine. Um, so Mr. Chairman,

[1:11:48] I'd like to make a motion then to u

[1:11:51] proceed with the rucken mountain power

[1:11:52] easement for the power service the WRF

[1:11:55] operations building project.

[1:11:58] >> Second,

[1:11:58] >> a motion and second. All in favor? I

[1:12:00] >> I

[1:12:03] kay all.

[1:12:05] >> Thank you, Mr. Chair and board. Um,

[1:12:07] approval of the 401k plan amendments.

[1:12:10] These were amendments that APA had to

[1:12:13] make to our 401k

[1:12:16] plan and they the changes are a good

[1:12:21] faith effort to comply with the

[1:12:23] requirements of division T of the

[1:12:25] Consolidated Appropriations Act of 2023

[1:12:29] also known as Secure 2.0 0

[1:12:32] and

[1:12:34] guidance issued by the Internal Revenue

[1:12:36] Service and employees benefit any and

[1:12:38] security administrator. So, we didn't

[1:12:42] personally asked for these changes, but

[1:12:43] they had to make them to comply with the

[1:12:46] those laws and the IRS. We just needed

[1:12:48] an approval to do that

[1:12:55] » or they need approval to do that. if you

[1:12:59] were able to summarize

[1:13:01] what

[1:13:02] >> a little bit of summarization is like on

[1:13:04] the last two or three pages.

[1:13:06] >> You can see it here.

[1:13:07] >> Yeah. Um, sorry, I'm getting there.

[1:13:14] And I'll be honest, not all of them make

[1:13:15] 100% sense to me because I don't know

[1:13:17] those laws. But it looks like they um

[1:13:21] are changing the definition of an

[1:13:23] eligible employee. It's expanded to

[1:13:26] include long-term part-time employees

[1:13:28] for pre-tax selective deferrals. Um,

[1:13:32] another definition is the long-term

[1:13:34] part-time employee. Um,

[1:13:38] and qualifications for the long-term

[1:13:40] part-time employee.

[1:13:43] And then looks like there's a change for

[1:13:52] » longtime part-time employees.

[1:13:54] Le, who determines the hardship?

[1:13:57] I know that's came up.

[1:13:59] >> I believe the IRS has put some

[1:14:00] regulations on a on a 401k for

[1:14:03] hardships. Um,

[1:14:05] >> that would be the plan administrator.

[1:14:07] >> Yeah. And comply with the IRS. Oh, who

[1:14:10] determines it? If someone

[1:14:12] >> Yeah. Yeah. If somebody comes to you and

[1:14:13] says, "Hey, I got to have this."

[1:14:15] >> There's

[1:14:15] >> who determines that? If I remember

[1:14:17] correctly, there's some qualifications

[1:14:20] that the that the person has to meet and

[1:14:22] the IRS has set those qualifications.

[1:14:25] >> So the plan administrator

[1:14:26] >> but then the plan administrator makes

[1:14:28] sure that they comply with those. So

[1:14:31] this would go to

[1:14:32] >> APA

[1:14:33] >> and it would have to be something like

[1:14:36] >> uh

[1:14:36] >> like Berkeley would

[1:14:37] >> loss of home

[1:14:40] >> or

[1:14:42] there's criteria and and you have to

[1:14:44] give them all the documentation required

[1:14:46] to meet the IRS's standards.

[1:14:48] >> Yeah. And the criteria is set at the

[1:14:50] IRS.

[1:14:52] >> Then you'd likely have to do it again.

[1:14:56] » Yeah. So um as far as changes there's

[1:14:59] changes to distributions apparently

[1:15:02] required beginning date for required

[1:15:04] minimum distributions and the force out

[1:15:08] um and you read there's um changes to

[1:15:13] the hardship distributions.

[1:15:18] » Okay make

[1:15:20] >> so Mr. Chairman like to make a motion to

[1:15:23] approve the 401k plan amendment.

[1:15:26] Second that.

[1:15:28] >> A motion to second. All in favor?

[1:15:29] >> I

[1:15:31] kay.

[1:15:33] >> Oh, sorry. So, my auditors called this

[1:15:35] morning and asked if they could review

[1:15:37] this audit over the electronically

[1:15:40] >> and so I'm sorry. Give you a minute. We

[1:15:43] can give them a call and they'll do it

[1:15:46] here.

[1:15:58] You got home tonight, don't you?

[1:16:01] >> Yeah.

[1:16:13] » Hello, this is Lee Isle Fitzgerald with

[1:16:15] Magnum Water District. Is Ron available?

[1:16:19] >> Yeah, let me let him know that you're on

[1:16:20] the line. Hold up one moment.

[1:16:22] >> Thank you.

[1:16:25] I'm just

[1:16:29] not

[1:16:46] » we get music.

[1:16:47] >> There we go.

[1:16:49] So I feel like the audit went well in

[1:16:52] the reports.

[1:16:55] » Nothing to surprise you.

[1:17:05] » This is Ron.

[1:17:06] >> Hey Ron, it's Lee Isle. How are you?

[1:17:09] >> Good. How are you?

[1:17:10] >> I'm good. I guess we can hear it pretty

[1:17:12] good now.

[1:17:13] >> Yeah. So, we are at your agenda item to

[1:17:16] present the audit to our board members.

[1:17:18] We're in the board meeting now and

[1:17:20] you're being recorded.

[1:17:22] >> So, okay,

[1:17:23] >> everyone, this is Ron Stewart, our

[1:17:24] auditors with

[1:17:28] I forget the name of it.

[1:17:29] >> Gilbert and Stewart.

[1:17:30] >> Thank you.

[1:17:33] >> That is us. I'm just pulling this up

[1:17:35] here really quick. Um, thank you for

[1:17:38] letting me be here and and especially

[1:17:40] electronic today. I appreciate that. Um

[1:17:43] what I'll do is just uh take a couple

[1:17:45] minutes

[1:17:46] and just go through uh what we do as

[1:17:48] auditors, our conclusions, and how we

[1:17:50] came to those.

[1:17:52] Um so for an audit of a district,

[1:17:56] there's really three areas we look at

[1:17:57] and potentially four, but now this year

[1:18:00] it'll just be three areas. uh we we want

[1:18:02] to make sure the financial statements

[1:18:04] are materially correct that they meet

[1:18:06] generally accepted accounting standards

[1:18:08] and government auditing standards and

[1:18:10] that those numbers can be relied upon.

[1:18:13] Um the second thing we want to look at

[1:18:14] is internal controls. We want to make

[1:18:16] sure the controls are designed,

[1:18:18] implemented and working effectively.

[1:18:21] And then the third thing is we want to

[1:18:23] make sure that you're in compliance with

[1:18:24] state law based on the areas that we

[1:18:26] looked at um during this fiscal year.

[1:18:30] So, just really quickly, um, as far as

[1:18:33] what we do as auditors, uh, we come in,

[1:18:35] we take the the trial balance or the

[1:18:37] books of the city or sorry, of the

[1:18:39] district, and we perform a number of

[1:18:41] tests on those balances.

[1:18:44] Um, we we take uh we look at cash, we we

[1:18:48] send out confirmations to banks,

[1:18:50] confirmations to lending institutions.

[1:18:53] So, we want to make sure that what

[1:18:54] you're showing on your books matches

[1:18:56] what they show. So, like I said, we'll

[1:18:58] do that for cash, for um debt, um for

[1:19:02] tax revenues,

[1:19:04] um and anything else we can think of to um confirm to make sure that those

[1:19:10] numbers are matching. Um we pull a

[1:19:13] number of invoices during the year. So,

[1:19:16] at the beginning of the year, we'll pull

[1:19:17] a significant number of invoices. We

[1:19:19] look to make sure that the check matches

[1:19:21] the invoice, that the invoice is

[1:19:23] properly approved, that it was posted in

[1:19:25] the right period, that it was posted in

[1:19:27] the right jail account. Um, and that

[1:19:30] seemed reasonable.

[1:19:32] We will also pull invoices after the end

[1:19:35] of this fiscal year, and we want to make

[1:19:37] sure that the expense was posted in the

[1:19:39] proper period. So, if something happened

[1:19:42] in June, but we didn't pay for it in

[1:19:44] July, we want to make sure that uh

[1:19:45] expense is recorded properly. So, we'll

[1:19:47] pull those invoices and review those to

[1:19:49] make sure that those are um accurate.

[1:19:53] We also look at invoices for capital

[1:19:54] assets and other things as we go through

[1:19:56] our audit process. If we need to verify

[1:19:58] something, we'll pull an invoice for

[1:20:00] that. There's a lot of analyticals that

[1:20:03] we do and we'll look at the beginning at

[1:20:05] the beginning of the audit. We'll pull a

[1:20:06] sample and we'll look at this year and

[1:20:10] compare it to last year. Um we want to

[1:20:13] make sure that we can understand the

[1:20:14] differences the big differences that

[1:20:15] happen within year the fiscal year so we

[1:20:18] can design tests to make sure we

[1:20:19] understand those.

[1:20:21] Um as we're doing our individual testing

[1:20:23] and balances we'll also look at

[1:20:24] analytically except this year last year

[1:20:26] compared to budget as well and see if we

[1:20:29] can see what we understand those

[1:20:31] differences. And then as we write the

[1:20:32] financial statements and those

[1:20:34] statements are finished um we do it a

[1:20:36] third time um on a on a financial

[1:20:38] statement level just to make sure that

[1:20:39] we can understand what had happened

[1:20:40] during the use. Um there's calculations

[1:20:43] on the financial statements. We go

[1:20:45] through and recalculate those balances

[1:20:47] make sure those are accurate and meeting

[1:20:48] accounting standards.

[1:20:50] We do that with uh acred payroll,

[1:20:53] compensated absences

[1:20:55] um

[1:20:57] uh and other various balances on the on

[1:21:00] the financial statements that have

[1:21:01] calculations. We'll go back

[1:21:02] depreciation, expense, and life. We'll

[1:21:04] go back and recalculate those to make

[1:21:06] sure that those are right. Um

[1:21:10] and then there's another host of other

[1:21:11] things that we do um to be able to

[1:21:13] verify that the balances are are

[1:21:15] materially correct and can be relied

[1:21:16] upon.

[1:21:19] Um so through all those te that testing

[1:21:21] and evaluation um we've come to the

[1:21:25] opinion that your financial statements

[1:21:26] do meet accounting standards and that

[1:21:28] they are can be relied upon. Um and in

[1:21:32] our opinion it says in our opinion the

[1:21:34] financial statements referred to above

[1:21:36] present fairly in all material respects

[1:21:38] the respect the financial position of

[1:21:40] Magnum Water District as of December

[1:21:42] 31st 2025 and respect to changes in

[1:21:45] financial position and cash flows for

[1:21:47] the year that ended in accordance with

[1:21:48] accounting principles generally accepted

[1:21:50] in the United States of America. That's

[1:21:52] considered a an opinion and unmodified

[1:21:57] opinion or the best opinion that you can

[1:22:00] receive.

[1:22:01] Um the second thing that we do is look

[1:22:03] at internal controls. We don't give an

[1:22:06] opinion on controls. We do evaluate

[1:22:08] those controls to make sure that they're

[1:22:10] um designed and they're implemented and

[1:22:12] they're working effectively. We do that

[1:22:14] through walkthroughs, interviews,

[1:22:16] questionnaires. Um we'll take as part of

[1:22:19] our sample at the beginning of the year,

[1:22:20] we'll take a an invoice and walk it

[1:22:23] through the process from beginning to

[1:22:25] the financial statements and see that it

[1:22:27] meets all those um controls along the

[1:22:29] way.

[1:22:31] We also interview staff and then uh have

[1:22:34] questionnaires that help us understand

[1:22:35] those controls.

[1:22:37] Um if there was a portion of your

[1:22:39] district that just had no controls or

[1:22:41] those controls would just not been

[1:22:43] working effectively, we would bring that

[1:22:44] to your attention either as a

[1:22:46] significant deficiency or a material

[1:22:47] weakness.

[1:22:49] Um that that basically says, hey,

[1:22:51] there's a problem here that we need to

[1:22:52] address. Um through our evaluations and

[1:22:55] testing, we felt that you do have good

[1:22:57] controls. the controls are implemented

[1:22:59] working and designed implemented and

[1:23:01] working. Uh so there's no issues or

[1:23:04] things we need to bring to your

[1:23:05] attention as far as finding.

[1:23:08] The third thing we do is look at

[1:23:09] interate state compliance. State

[1:23:11] auditor's office gives us certain areas

[1:23:13] that we're supposed to look at either on

[1:23:15] an annual basis or a rotating three-year

[1:23:17] basis.

[1:23:19] Um so we pulled those. Uh the things

[1:23:22] that we looked at in this fiscal year

[1:23:23] were

[1:23:25] let me grab that real quick.

[1:23:29] We looked at budgetary compliance, fund

[1:23:31] balance, fraud risk assessment,

[1:23:33] government fees, and special and local

[1:23:35] service districts.

[1:23:37] So, the state auditor gives us certain

[1:23:38] procedures to go through to make sure

[1:23:40] that you're in compliance with those

[1:23:42] areas. We did complete those procedures

[1:23:45] and felt that you were in compliance in

[1:23:46] those areas. So, there's no findings or

[1:23:48] anything that we needed to bring to your

[1:23:49] attention as far as state compliance.

[1:23:53] So, that was a quick rundown of what we

[1:23:56] do as auditors. Um, the conclusions that

[1:23:58] we came to and how we came to those

[1:24:00] conclusions. Um, I'd like to to shout

[1:24:03] out to Le. She wrote financial

[1:24:06] statements this year and did a great

[1:24:07] job. So, we thought that was awesome.

[1:24:10] Um, but I'm happy to answer any

[1:24:12] questions that you have.

[1:24:16] » Any questions?

[1:24:17] >> I don't have any. I thought it looks

[1:24:19] great.

[1:24:20] >> Oh, yeah. Thank you.

[1:24:22] >> That's some high mark.

[1:24:24] >> Thank you. And and a thank to to the

[1:24:26] staff. We we throw a lot of stuff at

[1:24:28] them, ask a lot of questions, and they

[1:24:30] would do a great job of responding. So,

[1:24:32] you guys are in good hands.

[1:24:35] >> Thank you, Ron.

[1:24:37] >> Okay.

[1:24:38] >> Have a good day.

[1:24:40] Thanks so much.

[1:24:42] >> Thank you. Bye-bye.

[1:24:44] >> Bye.

[1:24:48] » Thank you.

[1:24:49] >> Okay. So yeah, I was good at it this

[1:24:52] year. I don't know if you all caught

[1:24:53] that, but I actually

[1:24:57] challenged myself this year to write the

[1:24:59] whole report before they even got here.

[1:25:02] So it was done when when they came in

[1:25:06] and so they just do their audit work and

[1:25:08] then review the report and

[1:25:11] >> was good.

[1:25:11] >> And I got a lot of high marks. I marked

[1:25:13] through the report. Really good.

[1:25:15] >> Looks really good.

[1:25:17] >> So Mr. Chairman, I'd like to make a

[1:25:18] motion to approve the Magna u the

[1:25:23] Gilbert Stewart CPA's

[1:25:26] uh Magna Water District Financial Audit

[1:25:28] for the year ending of December 31st,

[1:25:31] 2025.

[1:25:32] >> We'll second that.

[1:25:33] >> A motion second. All in favor?

[1:25:35] >> I.

[1:25:36] >> Okay. Leal resolution 26-03.

[1:25:40] So you you probably noticed in the

[1:25:42] packet they all have X's where the

[1:25:44] numbers are and that's

[1:25:46] >> it's on the agenda just in case the

[1:25:47] certified tax rate did come in

[1:25:50] but it did not come in. It's not here

[1:25:54] still. So, we're going to table those

[1:25:56] two and we may have to

[1:26:00] electronically have it or have an

[1:26:02] electronic meeting

[1:26:03] >> special meeting

[1:26:04] >> or special meeting to approve the tax

[1:26:06] rate that comes in from the county.

[1:26:08] >> You expect how long that will be?

[1:26:10] Another week

[1:26:10] >> usually. Yeah, I would think within

[1:26:12] another week.

[1:26:13] >> Their deadline is the 8th.

[1:26:15] >> George Valley has about their Z there.

[1:26:17] >> Yeah,

[1:26:18] >> the deadline is the 8th of when

[1:26:20] >> usually. I'm sorry.

[1:26:21] >> July 8th is

[1:26:22] >> June 8th.

[1:26:23] That's why I put it on this

[1:26:25] one in case I know.

[1:26:28] >> But and then um usually we have to

[1:26:31] return the information or have our ours

[1:26:34] approved by around the 22nd. So

[1:26:38] >> anywhere between here and the 22nd

[1:26:41] should get it.

[1:26:42] >> So we'll call you when it comes in.

[1:26:46] >> Okay. So we'll table six and seven.

[1:26:49] >> Yes. Thank you.

[1:26:51] >> Okay. Thank you.

[1:26:55] need a motion on that, right? It

[1:26:58] couldn't hurt.

[1:26:59] >> Okay, Mr. Chairman, I'd like to make a

[1:27:02] motion to table uh resolution 2026-03

[1:27:08] uh the revenues budgeted for 2026 and

[1:27:12] resolution 2026-4

[1:27:16] adopting the final 2026 tax rates. We'll

[1:27:19] >> second that.

[1:27:20] >> Motion second. All in favor? Okay.

[1:27:24] So, um,

[1:27:28] our next board meeting is going to be

[1:27:30] July 9th, 2026 at 10:00 a.m. at this

[1:27:33] building.

[1:27:34] >> Can we move it to the 16th?

[1:27:37] >> Mr. Chair? Yeah. Um, that would be I

[1:27:40] mean, if we need to move it to the 16th,

[1:27:42] then we need

[1:27:43] >> That should be Thursday for Is that okay

[1:27:46] to what? To move it another week. A

[1:27:49] motion to move it would be great if you

[1:27:53] don't mind.

[1:27:54] >> Mr. Chairman, I'd like to make a motion

[1:27:55] to uh approve next month's board meeting

[1:27:58] for July 16th at 10:00 a.m.

[1:28:01] >> I second that.

[1:28:02] >> The motion second. All in favor?

[1:28:04] >> I do. We have a close today.

[1:28:08] >> There are there is something that Trevor

[1:28:12] would like to discuss. Um, so I would

[1:28:16] suggest

[1:28:17] um

[1:28:19] we meet briefly if that's okay with

[1:28:23] >> if the board has time. If not, we can

[1:28:25] handle it offline

[1:28:27] um and just call poll.

[1:28:31] So that would work fine too.

[1:28:35] >> I would be okay if they want to just

[1:28:36] pull us.

[1:28:37] >> Okay,

[1:28:38] we can do that.

[1:28:43] So motion no consider any a So we're

[1:28:47] going to move on down to consider action

[1:28:49] items uh note agenda items discussed in

[1:28:53] okay no other business

[1:28:56] any other business okay does someone

[1:28:58] want to make a mo yes report um

[1:29:04] so Magnus city has hired uh Jay Springer

[1:29:07] to be their conflict council he provided

[1:29:09] me with his edits on the franchise agree

[1:29:11] payment and I've sent them off to staff.

[1:29:13] So, we need to follow up on that, but

[1:29:15] hopefully we can get something back when

[1:29:17] >> Yeah. positive. I would say we're

[1:29:20] encouraged by that. So,

[1:29:21] >> okay.

[1:29:22] >> I think we'll be able to an agreement,

[1:29:24] right?

[1:29:25] >> Sorry.

[1:29:27] >> That's a good step forward. I think

[1:29:32] >> Okay. Um,

[1:29:33] >> so do we want to adjourn?

[1:29:35] >> Yes. Will you make a motion to adjurnn?

[1:29:38] >> Okay, Mr. Sure. I'd like to make a

[1:29:40] motion to adjurnn.

[1:29:43] >> I second it.

[1:29:44] >> Motion second. All in favor?

[1:29:45] >> I It is 1208.

[1:29:50] He's locked there.

June 11 2026

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