PRESENT: Annamarie Borgione, Chairman

Deborah Collinson, Vice Chairman/Trustee

Kent Jensen, Trustee

Keith Hanson, Gen. Mgr./Treasurer

Monica L. Lisenbee/Office Manager/Clerk

Auditors: Ryan Tesch/Hansen, Barnett & Maxwell

Dave Haws/Hansen, Barnett & Maxwell

ABSENT: Steve McIntosh, Operations Manager

Ms. Borgione called the regular meeting to order at 12:02 p.m. Ms. Borgione welcomed Mr. Tesch and Mr. Haws to our board meeting.

Presentation of 2009 financial audit-Tesch/Haws-Ryan Tesch, (audit manager-HB&M), has been conducting the Service Area audit for 6 years. Mr. Tesch conducted a brief overview of the final draft of the 2009 audit with board members and staff. Mr. Haws then summarized page 17. (Independent Auditors' Report) for the board, explaining that the "opinion paragraph", is an important item and in the opinion of Hansen, Barnett and Maxwell, the Service Area, complied, in all material respects, with the general compliance requirements, (also identified on page 17), for the year ending December 31, 2009. Separate from the audit report, Mr. Haws presented a 5 year financial schedule, which compared the last 5 years of balance sheets and changes in net assets. Mr. Haws commented on the pattern of each year operating with a net loss, and is due primarily to depreciating our assets. Referring to page 20, the "Schedule of Audit Findings", Mr. Haws noted that were a significant number of journal entries relating to property taxes, prepaid insurance, capital assets, depreciation, accounts payable accrued wages and compensated absences. Hansen, Barnett & Maxwell recommend to accurately record entries for transactions relating to the accounts mentioned. With no further discussion the board thanked Mr. Tesch and Mr. Haws for a job well done.

Ms. Borgione made a motion to approve the regular scheduled board meeting minutes from May 18, 2010. Mr. Jensen seconded the motion and it passed unanimously. The clerk delivered corrected copies of the June agenda to the board, as there was a date error.

Treatment Plant Project-We are currently in the disassembly process and now have Brian Gorsage working with the Service Area through the completion of this project. One filter has been emptied of the media and the second filter will be completed shortly. The under drain system has large chunks of iron plugging the area and once the new laterals are installed, will improve our ability to clean the media in the future. The plant demolition will continue through next week and fittings which will be re-used will be sent down town to be sand blasted and coated. The concrete to be poured in the bottom of the filters and then epoxy coated will take 30 days to cure. Mr. Hanson anticipates the plant project to be completed sometime in September.

Sewer System-After the extreme flood levels in the canyon, the sewer system has survived the recent high run-off. We continue to monitor the system and have identified some inflow infiltration from the runoff, although at this point it is difficult to directly locate the area.

Powder Ridge-Mr. Hanson addressed some issues in the Powder Ridge area recently. Excavation for the new Libre house, lead to concerns of potential damage to our sewer main. Mr. Hanson met with Tim Thomas to discuss secure alternatives to avoid any potential damage to the sewer main. Powder Ridge had another issue with a broken water lateral from a home, which caused the asphalt to buckle. Mr. McIntosh was able to assist the resident manager and isolate the broken line.

Snowbird Summer Projects- Snowbird plans to replace up to 1/2 mile of the sewer line on the mountain beginning very soon. Cottonwood Improvement District and the Service Area will be assisting Snowbird with inspections and advice during this project.

New Chlorine Pump/View Complaint-As discussed at the recent Work Session Meeting, Mr. Hanson received a chlorine taste/odor complaint from Mr. Schwartz at the View - Unit #15. A new chlorine pump for the Peruvian Reservoir has been installed. Recent testing reflects the chlorine level at .25 ppm, which is satisfactory for our system. Mr. Hanson speculates that Mr. Schwartz may have experienced this high dose when there was a spike in the system.

Sugarplum Village Unit #21-Owners of Sugarplum Village unit #21, are in the process of applying for a building permit for an exterior deck to their unit. One deck footing will encroach on our sewer easement, but is far enough away from the main to not adverserly affect the sewer. The property owner will provide the Service Area with a hold harmless agreement for the encroachment.

Tunnel Turbine/Hydro-Electric-The tunnel turbine continues to generate electricity while under supervision. Once the treatment plant upgrades are complete in the tunnel, Mr. Hanson will invite members of the board to view the operation.

Hazwoper Training-The Utah Local Government's Trust will be offering a 3 day, hazwoper course at a very minimal charges. Daniel Spor will be attending this training. A hazwoper training will be offered in late summer, which the remaining operators will attend.

Utah Retirement System-Kellie Hunsaker-An item which Mr. Hanson overlooked at the most recent Work Session meeting is an issue involving Kellie Hunsaker's eligibility to participate in the Utah Retirement System, (URS). Because Ms. Hunsaker's hours exceeded the 20 hour per week maximum during the latter part of 2009 and continuing into mid 2010, Ms. Hunsaker must now be added to the URS non-contributory plan. Although, payroll reports were sent quarterly to the URS by the clerk, it took some time for the URS to determine her eligibility because of difficulty by URS classifying her two positions with the Service Area. As a result of this the Service Area will have to pay the 11.66% on her gross wages for 11 pay periods, which is $800.00. The clerk will submit paperwork to the URS for Ms. Hunsaker adding her to the reporting system and continue to report her wages through the end of October 31, 2010. Once Ms. Hunsaker is under the 20 hours per work, she is no longer eligible for benefits. Mr. Hanson stated that she did receive extra hours due to Snowbird Ski Patrol cutting back on their payroll. To avoid this in the future, Mr. Hanson will delegate responsibilities between operators who are part-time.

State of Utah-Status Verification System-E-Verify-The Service Area will be participating in the new state requirements, (effective as of July 1, 2009), in the "Status Verification System", (e-verify). The Service Area clerk will register the Service Area with e-verify. This new law is a way to confirm employee I-9 information and also notifying contractors we use to register with the Status Verification System.

Division of Water Quality-Mr. Hanson reviewed with the board the self assessment for wastewater and collections systems required by the Division of Drinking Water by July 1, 2010. This is an annual assessment, which Mr. Hanson adopts by resolution. Then presented was Resolution 2010-3, a municipal wastewater planning program resolution, which Ms. Borgione moved and approved, Ms. Collinson seconded and was unanimously carried.

Mr. Hanson reviewed with the Board of Trustees, the Balance Sheet Previous Year Comparison report ending May 31, 2010, and the Profit and Loss Budget vs. Actual ending May 31, 2010, as prepared by Salt Lake County Service Area #3.

Ms. Borgione moved that the bills listed on the May 19, 2010 through June 15, 2010 payment registers, as presented by Mr. Hanson hereby be authorized and ratified to be paid by the manager. Mr. Jensen seconded the motion and it passed unanimously. Copies of the approved bills are attached to the minutes.

Ms. Borgione called the public hearing to order at 1:07 p.m. to transact business relating to setting the 2010 property tax rate for Salt Lake County Service Area #3. The clerk for Salt Lake County Service Area #3 duly posted notice of the public hearing to be held on this date. Auditors Ryan Tesch and Dave Haws were in attendance for this hearing.

Mr. Hanson reviewed in detail the property tax packet with the trustees. This year, entities may submit their information on-line, through a web-based Salt Lake County Tax Commission system, simplifying it to some degree. Mr. Hanson also presented the Resolution 2010-2, which clearly defines the rate of the county service area taxes and certifies such rate to the Board of County Commissioners. Resolution 2010-2 states as follows:

Now, therefore, it is hereby resolved by the Board of Trustees of Salt Lake County Service Area No. 3 – Snowbird, Salt Lake County, State of Utah, as follows:

Ms. Borgione moved to adopt and approve this 15^th, day of June, 2010, the certified tax rate for 2010, as stated in Resolution 2010-2. Ms. Collinson seconded the motion and it passed unanimously. There being no further business regarding this matter, Ms. Borgione closed the public hearing at 1:13 p.m.

Ms. Borgione called the public hearing to order at 1:14 p.m. to discuss business relating to amending the 2010 budget to meet actual expenditures for 2010. Cash expenditures remain as budgeted for 2010, while operating expenses reflected a slight increase. Revisions to capital improvements have reflected an increased in total cash expended. Total revenue with a slight increase from property taxes have also increased total cash received. There being no further questions or discussions, Ms. Borgione made a motion approving Resolution 2010-4, the amendment to the 2010 Salt Lake County Service Area #3 Enterprise Fund Cash Budget to meet actual 2010 revenues and expenditures. Mr. Jensen seconded the motion and it passed unanimously. The clerk will issue a copy of this amended budget along with a resolution 2010-4 to the Utah State Auditor’s Office.

There being no further business to be discussed, a motion to adjourn was made, seconded and unanimously carried at 1:20 p.m.

Salt Lake County Service Area #3-Snowbird Attest:

___________________________________________ ______________________________________

Annamarie Borgione/Chairman Monica L. Lisenbee/Clerk

Date:_____________________________________

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