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Good morning. My name is Chuck Afterlall. I'm chair of the Board of Trustees of the 12th Valley Public Infrastructure District. And I welcome you to the Board of Trustees Meeting.

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we're going to do a roll call check here. Yeah, we should do the roll call.

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Trustee Smock here, Trustee Horn here, and Trustee Gibson.

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And I'm here and I'm here and I'm here and I'm here and I'm here and I'm here and I'm

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and public and attendance of the agency.

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Thank you.

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Our district council, J. Springer, is also present.

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As is our district general manager, Melanie Paulson.

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Now, we do have a set of minutes from the last meeting,

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which was held February 3rd at 10 a.m.

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Take a moment to review those.

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We have proposed that we accept minutes from our February 3rd meeting.

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It had been moved by Mr. Horne that we approved the minutes. Is there a second?

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Second motion.

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It's moved and seconded. It's all in favor. Say aye.

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And the minutes from February 3rd have been adopted.

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Yeah,

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unanimously.

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Okay, no public hearings today.

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Item three, item four, our discussion and action items.

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Number one is the resolution of the renewal of the insurance, including the increase annual cost, including confirmation of fraud risk assessment.

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But there's similar to what we just did in the Sunstone Infrastructure Financing District, I believe, isn't that?

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Yeah, so two pieces to this. One is the annual renewal is coming up. It's effective until the end of June.

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and part of that is they now want to have the broad risk assessment sent to them as part of the renewal and the rates have gone up considerably.

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They are now starting at about 5,000 last time they were approved for the district was about 300 or so.

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So it's a notable increase worth identifying the request here is a motion to approve renewal

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of the insurance with a cap annually with a cap of up to $10,000 and also authorizing completion

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and submission of the progress assessment based on the updates that would come from this

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meeting.

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All right. Is there any questions or comments on what Jay's just presented to us?

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No, did we have a written resolution on that one?

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No, I didn't make it to you. We can cover it with the motion.

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Yeah, so that's fine. Those two actions.

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Okay. So the first we're working for a motion that will approve the renewal

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Well, but at a cost of no more than $10,000 and a confirmation of the fraud risk assessment.

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Is that correct?

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Yes.

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Anybody want to make that motion?

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I'll make one of the approves of the insurance and the fabric $10,000 along with the fraud risk

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assessment.

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Two seconds.

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Second.

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All in favor, say aye.

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Aye.

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Aye.

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That's unanimous.

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Next item on the agenda is a resolution regarding the termination of the district engineer and the retention replacement of the district engineer.

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Turn that over to Melanie for her recommendations.

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So, yeah, this is a day just noting, so the accident was to terminate the current in district

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engineer, main course service, and that is with Galloway.

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Yes.

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For a pretty staff, it has been a conversation.

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I think that they can use.

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However, recently, you noticed how Robert Russel has made a target of top priority.

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I would recommend to the board that we go to the side.

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Any discussion or questions?

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Just an unknown.

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It will be terminated in accordance with the contract with them,

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which I have with you and provided guidance on how that should be done.

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It's pretty straightforward and there are,

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there's no substantial legal risk to the city.

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from sorry to the district in triggering that as a productive area. Do you have any comment

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on the change of engineers?

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It was really hard to hear Melanie. So it sounded like we're

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just terminating based off of the end of the contract. Is that correct or a change?

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That's a good question.

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Melanie, you correct me if I'm wrong.

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We're proposing that we terminate,

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that's not a month-to-month basis,

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but we terminate the contract we had

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with the Galloway engineering

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and instead retain Robert Russell

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at Ensign Engineering.

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And one of the reasons for that is that he has been

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that are ultimately involved in the design of the wastewater treatment system and all

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of our water systems so that he can provide much more assistance to the contractors that

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are going to be building these facilities, then Boyd Priest could be, because Boyd hasn't

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been involved in any of this and doesn't know that he could read plans, but he hasn't been

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involved in the creation of it.

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So Melanie felt that it would be better for us to have Rocell involved in not only what

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he has already done the design, but now in supervising from an engineering point of

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view, the installation of these facilities in that he designed and then under other supervision

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as well.

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Does that help you understand that better?

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Yes. Yes. Thank you. My apologies. It just couldn't hear very well. So thank you for recapping.

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All right. We have a motion or can we have a motion to replace Galloway with Robert Rocell at

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Insign. Yeah. I'll make the motion that we replace our district engineer to Robert Rocell at Insign and

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in terms of existing content, you know,

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for a second.

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Do we, should we put an effective date in there,

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Melanie, or?

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Yes, let's

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do terminates,

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and

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while you solve it, take over at least a second.

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Okay, so with those changes, are you okay?

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Yeah, with those changes, Mark and Matt.

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Yes.

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Okay, so we've added into the motion

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that it terminates on June 23rd, right?

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Yes, and and then a new one starts on June 24th. All right, any further discussion?

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All in favor say aye. Aye. Aye. And the motion is unanimously passed.

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Okay, now we have these policy resolutions and Jay, we're going to ask you just to for particularly for Adrian's

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understanding just to go over again quickly that these different policies the state has encouraged us to have.

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Yeah. So, Ariane, we have presented slightly modified versions of five policies that the same auditor identifies on the process assessment.

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And that's also why the prior action on for a we included the progress assessment as updated based on this meeting is because this this does help move the district into a low risk category under that under that and most of these policies are are items that are already covered by being not really relevant to a to a pit.

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So in order and then there's there's structure of one resolution to adopt all of them.

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So the cash receding and deposit policy, the there are rules that just outline how that works but for this district.

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The rule is we don't receive cash and so we take any need that there might be for handling cash to the board.

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If it's that important, but there needs to be cash handling for the district.

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It needs to be handled at that level, same with credit card and purchasing cards.

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So those revolving accounts aren't really the types of things that support the district's operations.

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They may support the developers and the contractors improvements, but at the district level, the district's operating and direct expenses should be handled again at the board level should there be a need for it.

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And right now we've identified that there's really no need for those kinds of cards to be opened.

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three and four go together and they deal with with those again state

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order level policies the personal use of any the asset policy is also a requirement

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under state code whenever there's personal or district property or government

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property and basically they cover pretty fundamental basics that you know when

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When you have a computer system or a network that it's password protected, that it automatically

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blocks out, that you take reasonable precautions on having those systems locked up.

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We don't have an office as a district where a member of the public come in and just hop

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on to somebody's computer or something like that.

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So we have kind of those things in place with the personal use of entity assets.

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Those are tip primarily targeted at phones, computers and vehicles.

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And right now the district doesn't own it, but should there be a need for that down the line?

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This outlines that personal use is limited in scope and purpose.

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It's not a, you know, it's not like it's not like a 50 50 allocation.

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It is a primarily.

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These are, these are district assets and they should be used primarily for those.

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but if you know you you're not going to get in trouble for mapping out your route to lunch on

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on your you know district computer or something like that should that be the case. And then finally

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they travel in reimbursement policy. This is really a policy statement that the district does not

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reimburse for travel to meetings and that should there be a need for that and somebody could bring

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it to the board and request reimbursement, but there's no default travel reimbursement

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for going to board meetings or conducting the ordinary business. So that is basically

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where those go and that as a group, there are other policies that the district has previously

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adopted to check some of the other boxes on with this estate, but they are, there's a lot of

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resources out there, helpful to at least have them on the coast. So, any questions on those?

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We have a resolution. That sounds reasonable to me.

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You probably are familiar with a lot of these are

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ready, aren't you? Yeah, yeah, but I can see you for PIDs. They're definitely not as applicable as a

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normal government organization.

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Resolution number one.

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So, this one, this will be, also, this will be resolution number one, because you'll want to have with us. Okay. Is there a motion to approve a resolution that got the cash receding and deposit policy, credit card and purchasing cards policy, IT and computer security policy, personal use of entity assets policy,

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and travel and reimbursement policy

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is there a second now a second it right any

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further discussion all

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in favor say hi hi it passes unanimously okay now we

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have a budget resolution which you will probably find that the last three pages of your

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and Paul does note the same typo I apparently I thought I'd cut it in the first one

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But it is June 25th, not June 23rd, that is the hearing date.

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Just to know for that, I was just retitled.

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And what kind of a report nut up?

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This one would be three o'clock.

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I believe Mark has the presentation on that budget.

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Yeah, the budget.

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Is there any questions on that budget?

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I had a quick question just looking at it.

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What falls under the professional services versus the infrastructure?

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That's where our district account has been putting a combination of engineering fees and management fees on the project.

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Okay.

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Does that include the cost of this year's professional fees, not in this special year?

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Well, that's the cost of the supervision by Melanie and her staff of the actual construction

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work that the owners are doing.

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Okay.

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Well, that'll be engineering.

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Yeah.

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That's quite a bit engineering.

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Yeah.

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That makes sense.

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Thank you.

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Yeah.

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The engineering cost is that kind of ridiculous.

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Okay.

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I'll pass it down to Matt.

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Can you sing with me here?

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But we have a motion to adopt the,

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but you want to talk any more about the budget?

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No, I'll just make the motion if you want me to.

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We'll make a motion to adopt the resolution

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as presented here to adopt the tentative budget

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this year.

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June 30, 20, 27, this is June 25, 3 p.m.

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at the day for a public hearing that will be for both the final fiscal year

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2027 budget and any adjustments to the fiscal year 2026 budget.

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It has been moved, is there a second?

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Is there a move to approve this budget resolution?

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Is there a second?

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I will second that.

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It's moved, seconded.

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All in favor say aye.

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Aye.

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Opposed by any passes unanimous.

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All

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right, so you now have a little bit of the agenda for

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board members, reports.

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Any of you have, Adrian, do you have, Adrian, I think

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that's where it comes from, Adrian, do you have any reports

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you want to share with us?

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I don't.

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I mean, I guess I could update that we're still working

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through and looking at, never mind, that doesn't apply to this. So, nope, I don't have any updates.

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Okay. With that, we will entertain a motion to adjourn. And there's no need for a close-up.

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There's no need for a close-up here, that's right.

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Motion to adjourn?

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I'll move the motion for adjourned.

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Then moved by Trustee Mark that we've heard.

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Is there a say?

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Yeah, second.

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All in favor say aye.

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Aye aye.

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Thank you.

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Very end.

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Thank you.

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Thank you.

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Appreciate it.

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Here we're done.

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Thank you.