PRESENT: Annamarie Borgione, Chairman

Deborah Collinson, Vice Chairman/Trustee

Kent Jensen, Trustee

Keith Hanson, Gen. Mgr./Treasurer

Monica L. Lisenbee/Office Manager/Clerk

ABSENT: Steve McIntosh, Operations Manager

Ms. Borgione called the regular meeting to order at 12:09 p.m. Ms. Borgione moved to approve the work session meeting minutes from April 16, 2010 as corrected. Mr. Jensen seconded the motion and it passed unanimously. Ms. Borgione then made a motion to approve the regular scheduled board meeting minutes from April 20, 2010 as corrected. Ms. Collinson seconded the motion and it passed unanimously. The clerk will make the discussed revisions to the minutes and acquire the chairman signature.

Policies & Procedures Review- Sections #1 through #6 of the Policies and Procedures manual have been updated by the clerk to reflect grammatical and approved revisions, with the exception of section #2 with no changes. The Board of Trustees now have all of the approved sections in their manuals. Mr. Hanson presented and reviewed a draft of section #7-Grievance & Appeal Procedures with the trustees. This section includes numerous amendments due to Utah Code. Mr. Hanson and the Board discussed in detail Section 7.2-3. Composition of Appeals Board and determined to be acceptable. Ms. Borgione made a motion approving Section #7-Employee Code of Conduct and Section #6-Disciplinary Action as written. Mr. Jensen seconded the motion and it passed unanimously.

Audit Discussion-(2009 Financials)-The clerk will make arrangements for Ryan Tesch and Dave Haws to present the audit of the 2009 financials at the June 16th, 2010 regular board meeting.

Resolution 2010-1-Amended-Kate Black with the Town of Alta, brought to our attention an error reflected on Resolution 2010-1, (the extension of the Interlocal service agreement between the Service Area and the Town of Alta). The agreed man-hours per this resolution have been corrected from 30 to 40 man-hours, at a rate of $45.00 per hour, which coincide with the monthly operation fee of $1,800.00. With no further discussion, Ms. Borgione moved to approve Resolution 2010-1-Amended as revised. Ms. Collinson seconded the motion and it passed unanimously. This contract will be sent to the Town of Alta.

Summer Projects- The Service Area will be assisting Cottonwood Improvement District during their TV work of the sewer line from Alta down to entry #1. Our employees will act as flaggers and will be pulling manhole lids during this project. Mr. Hanson will designate 10 sections of sewer line in the canyon which are hot spots or areas of concern for Cottonwood to TV. Mr. Jensen asked if we would be conducting this project before or after the paving from the Tanner's area down canyon. Mr. Hanson stated that we will go ahead of the pavers and repair manholes after UDOT is finished.

Snowbird Sewer Issues- Mr. Hanson mentioned that the restrooms on Hidden Peak are closed due to a break in sewer line on Lunch Run. This leak is leading into the snowmaking pump station and traveling down the electrical conduit. Initially, Mr. Hanson was concerned that this was a result of repair to the Mid-Gad sewer line last winter, but confirmed that it was not and a result of something shifting during the thaw. Mr. Hanson remarked that after Mid-Gad Restaurant closed the inflow to the spring was 40 gpm, which determines there was an abundance of free water running. Cottonwood Improvement District has discussed this issue with Mr. Hanson and would prefer to assist Snowbird in the inspection and testing of the new sewer line.

Wasatch Drain Tunnel Project -Mr. Hanson reviewed the revised quote from Pureflow with the Board. This itemized quote excludes some original equipment costs, which we can purchase locally by saving costs. The original Pureflow quote was $135,087.00 and has now been reduced to $126,261.00. Included in the check detail is $37,878.30 for Pureflow, which is 30% of the total. Mr. Hanson reviewed additional equipment and costs, necessary for this upgrade project. The approximate cost of this capital improvement project is estimated to be $184,647.00. Mr. Hanson then presented a balance sheet previous year comparison from 2000 through 2009. This reflected the major capital improvements the Service Area has conducted and also our ability to recover funds in our savings accounts. Mr. Hanson anticipates beginning this project mid-June once the run-off begins.

Purchasing Policy-Mr. Hanson gave copies of our current purchasing policy to the trustees. Referencing section 1.4 State Code Provisions of this policy are Utah codes reflected that are no longer valid because of re-codification. Mr. Hanson remarked that the remainder of the purchasing policy is acceptable. Section 2.8-C, clearly defines the exception of obtaining 3 bids, when negotiations are with the original supplier.

News Article-Harriet Wallis, a free-lance journalist met with Keith Hanson recently, interviewing him for a news article to be published in the Snowbird - "Bird Magazine". Mr. Hanson quotes, "Our water is as good or it's better than any water in the world". An interesting article explaining our unique water system.

Salt Lake City Rate Increase-Effective July 1st, 2010, Salt Lake City Water Corporation is incorporating a 4th tier overage into their rate structure and increasing water rates by 5%.

Source Protection Ordinance-Mr. Hanson announced that the Source Protection Ordinance recently passed the County Council.

Mr. Hanson reviewed with the Board of Trustees, the Balance Sheet Previous Year Comparison report ending April 30, 2010, and the Profit and Loss Budget vs. Actual ending April 30, 2010, as prepared by Salt Lake County Service Area #3. A journal entry will be necessary to remove the uncategorized expense which is a reflection of the credit issued to Seven Summits. The clerk will have the auditor assist her with this.

Ms. Borgione moved that the bills listed on the April 21st, 2010 through May 18^th, 2010 payment registers, as presented by Mr. Hanson hereby be authorized and ratified to be paid by the manager. Ms. Collinson seconded the motion and it passed unanimously. Copies of the approved bills are attached to the minutes.

There being no further business to be discussed, a motion to adjourn was made, seconded and unanimously carried at 1:27 p.m.

Salt Lake County Service Area #3-Snowbird Attest:

___________________________________________ ______________________________________

Annamarie Borgione/Chairman Monica L. Lisenbee/Clerk

Date:_____________________________________